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Protect the ones you love

9/30/2015

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Speros Financial Life Insurance Tip of the day!
http://www.sperosfinancial.com/  602-531-5141

Life insurance is an important part of your over all financial plan.

Some say it is a bad investment as well as you only need enough to pay the house off, since your spouse still works they will be fine, and that you only need it through your working years.

Protection part of life insurance through your working years
The reality is that life insurance is protection to your family in many ways. Yes you want to pay the house of if you die to soon, but you also made a deal with your family to always protect them and be there for them when they need you.  Well after you die that is when they need you the most. 

When I am talking to people about life insurance and they don't full understand it or appreciate what it can do for them. They tend to think there family will be just fine with the small amount they want to buy.  But the people who have see death always want to buy as much as the life insurance company will allow them to buy.

Your family will not go back to work the next day and act like its no big deal. They will need time to morn, in most cases that could be months or even years to get back close to 100%.  

The life insurance you buy today will be a replacement of your income to your spouse, the it will help with the bills of every day life. It will keep your kids in the home they grow up in, it will keep them in all the activities kids do. It will also send them to college and help start their lives as young adults.  It will also give your spouse time to deal with everything death brings, such as the funeral expenses, any over due bills, the time it takes to switch everything into there name (always thinking about you as they take your name off things and breaking down to cry)

If you think about it, besides the cloths on  your back and the food you eat, where does the rest of your money go?  A portion to your retirement savings and the rest to the lifestyle you are accustomed to for you and your family.  When your income stops coming in the portion to the retirement will stop, your spouse will have to figure that out on their own. The bills you pay for, well they might not get paid any more. The lifestyle your family is accustomed to- well that will have to change as well.

Protection in your retirement years
As you age your life insurance should age along side with you.  You can't tell the future and you are not sure when your kids might need your help. They might move back in at some point. Or they have families of their own and you still want to make sure they will be ok after you die. So protection is always a key part.

Heres where the bad investment part plays in.  If you are diversifying your retirement plan, you financial advisor will tell you to put part of your money in a safe accounts.  Hmm what are bonds and CD's paying these days. Well the permanent life insurance (that people say is a bad investment) pays about 2 to 4 times what those do. It is a safe money or bond replacement account. And if you are diversifying your retirement why is everything in accounts tied to the market? Permanent life insurance through a mutual company is not tied to the market, so you don't have to worry about the ups and down of the market. It acts similar to the ROTH IRA grows tax differed and is tax free when you use you need it.  Structured right you can put in more the 50x's what you can put into a ROTH IRA on an annual basis.

Also if you have an understanding of how income streams work in  retirement, this will play a HUGE roll in your over all planning, and you might not need to save as much money as you thought. 

There is a part that comes after retirement that most people tend to over look. That is the need for care, someone to take care of you when you can't do everything on your own. The benefits of Life insurance are pretty vast these days, But the only way you will know about these benefits is to take the time and learn about something that is not right in-front of you at this moment. 

Death is not right in-front of you, your retirement is not right in-front of you and needing care is not right in-front of you.  If any of those are then you will know the importance of proper planning and some will say I should have done more.

Don't be the person that says I should have done more, Just get it done now!

Vasilios "Voss" Speros 602-531-5141
#LifeInsurance #RetirementStrategies #‎sperosfinancial
http://www.sperosfinancial.com/
https://www.linkedin.com/pub/vasilios-%22voss%22-speros/60/722/67b
vsperos@sperosfinancial.com
85254
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hybrid life insurance and long-term care

9/29/2015

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Speros Financial Retirement Tip of the day!
http://www.sperosfinancial.com/  602-531-5141

It seems strange to pay for something you might not use, especially if it’s an expensive purchase. Long-term-care insurance is no exception.

A traditional policy would cost a 55-year-old woman  $1,390 per year for $164,000 worth of benefits; a 55-year-old man would pay $1,060, according to the American Association for Long-Term Care Insurance’s 2015 price index. That may be why less than 5 million people held long-term-care insurance policies in 2013, according to research published by the Insurance Information Institute.

But forgoing long-term-care insurance doesn’t mean that you won’t need — and have to pay for — long-term care. A semi-private room in a nursing home costs an average of $80,300 per year, according to a 2015 survey by Genworth. A home health aide costs an average of $45,760 per year.
Which coverage should be priority? Fortunately, there are hybrid policies that provide both long-term-care coverage and life insurance benefits, so you can guarantee that your premiums won’t go to waste.

Hybrids combine life insurance and long-term care
Ordinarily, long-term care insurance and permanent life insurance are two different products that you purchase separately.

Life insurance pays the death benefit to your beneficiaries when you die. Permanent life insurance policies allow you to accumulate cash value within the policy, which you can eventually borrow against or use to pay premiums. Long-term-care insurance, on the other hand, defrays costs if you spend time in a long-term-care facility or need in-home help.

Hybrid policies — also called linked-benefit policies — combine the two. Your benefit level can be used either for long-term care or life insurance, or partially for both.

“You know you’re going to get something in return for your premium. You can either use the [long-term-care] benefits, or you can get the death benefit,” says Daniel Glanville, a financial advisor with Precision Wealth Management in Colorado Springs, Colorado.

Keep in mind that the death benefit and the long-term-care benefit of these plans are typically linked, which means that accessing the policies to pay for … long-term care … will reduce the death benefit.

There are a few other important differences:

Cost and payment structure.
Hybrid policies are typically funded in one lump sum or payments over a certain number of years, totaling at least $50,000. This can make them a tough sell for middle-income families. On the other hand, this structure protects consumers from the premium hikes common in long-term-care policies.
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Benefits.
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In general, hybrid policies have lower benefit levels per-dollar than traditional long-term-care policies, and they may not offer other features, like inflation protection. With medical costs rising, this could ding you in the future. For example, you might buy a policy big enough to cover three years of long-term care today and find that it only covers two years of care when you make a claim. Traditional long-term-care policies are the best for individuals whose primary objective is long-term-care coverage.
​
Vasilios "Voss" Speros 602-531-5141
#LifeInsurance #RetirementStrategies #‎sperosfinancial
http://www.sperosfinancial.com/
https://www.linkedin.com/pub/vasilios-%22voss%22-speros/60/722/67b
vsperos@sperosfinancial.com
85254
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Men vs. Women: The Wage and Savings Gap

9/23/2015

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Speros Financial Retirement Tip of the day!
http://www.sperosfinancial.com/  602-531-5141

If you're a woman, I've got good news and bad news when it comes to retirement planning.

The good news is that despite the fact that, on average, you earn as much as 40% less than males and spend considerably less time in the workforce -- usually to care for a child or an elderly family member -- you are out-saving most of your male brethren for retirement. Considering the additional obstacles, that's a huge deal.

But the bad news -- aside from the aforementioned wage and time-in-the-workforce disparity -- is that among those earning above $100,000, women are leagues behind their male counterparts.

The big picture 
Headline findings is that men simply have far more money invested in their 401(k)s than women do -- by a magnitude of 50% -- and they earn about 40% more per year.

Clearly, a host of factors are combining to make the retirement planning process far more difficult for women.

Going beyond the knee-jerk reaction 
It would be easy to simply throw our arms up and say, "The system is rigged from the get-go." But if we delve a little deeper into the findings, we see some important distinctions.

First and foremost, women's approach to retirement planning is sound. On average, they participate more in defined-contribution plans and save more of their salary every year for retirement. Women are also more willing to allow professionals to manage that money. Over time, that professional management (especially considering that it comes from Spence, Cassidy and Associates) yields better results than the do-it-yourself approach many males try without the proper training.

In fact, when we look at all individuals earning less than $100,000 per year -- about 96% of Americans -- women are doing a better job of saving for retirement. It is only when we consider the country's top earners that we see disparity creep in.

When it comes to the vast majority of wage earners in the United States, such parity in retirement savings should provide a ray of hope.

Where the problem lies 
It's clear that once we begin looking at the upper echelons of wage earners, men have a marked advantage over women.

The most demonstrable reason for this disparity is that women -- on average -- spend 12 fewer years in the workforce than men. Most importantly, these breaks in continuity make it increasingly difficult for women to get the types of promotions that lead to jobs paying over $100,000 per year.

For women who find themselves in this position -- entering the upper echelons of society and wishing to maintain an equal footing with men's retirement portfolios -- there are a few key steps that can be taken.

First, approach investing with a decades-long time frame. Remember, as a woman, you'll likely live longer than the average man and will thus need your money to last longer.

And second, be willing to invest more aggressively. Though that usually means a more volatile ride, volatility isn’t the same as risk when you're willing to hold for the long term and not panic. Over a long enough time frame, you will earn higher returns for this higher risk, and it can help you keep pace with your male counterparts. So don't trade the risk of short-term losses for the risk of running out of money in what will hopefully be a long retirement.

Either way, women are doing a great job saving for retirement. And if they weren't taking time off to care for family members, they would be head and shoulders above men when it comes to retirement planning.

How to get even more income during retirement
Whether you're a man or woman, Social Security plays a key role in your financial security. But it's not the only way to boost your retirement income. Our retirement experts give their insight on a simple strategy that can help ensure a more comfortable retirement for you and your family.

Source: Social Security Administration.

Vasilios "Voss" Speros 602-531-5141
#LifeInsurance #RetirementStrategies
#‎sperosfinancial
http://www.sperosfinancial.com/
https://www.linkedin.com/pub/vasilios-%22voss%22-speros/60/722/67b
vsperos@sperosfinancial.com
85254


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Mistakes that could come back to haunt you

9/21/2015

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Speros Financial Retirement Tip of the day!
Vasilios "Voss" Speros 602-531-5141


Mistakes that could come back to haunt you

The money decisions you make today can lead to either a secure or a scary financial future. Don’t be tricked into being complacent. Think ahead, and plan ahead — and avoid these 14 money mistakes, which could haunt you for years to come.

1) Breaking your budget. Treating yourself is fine as long as you’re not living beyond your means. To create — and stick to — a realistic budget, make two lists: your necessary monthly expenses and your nice-to-haves. Can you cover both with your income? If not, get out the red pen and start crossing off those you can live without. Make those extras a goal, and start saving for them. This way, you won’t be haunted by bills you can’t pay.

2) Losing time on retirement savings. Outliving your money is a scary thought. So retirement savings should come first — even before saving for a house or a child’s education, but with a strategic plan you can save for all. At least contribute enough to your company retirement plan to capture the maximum match, in most cases that’s a (401k). Also you can contribute to a individual retirement account (IRA) or a whole life insurance policy, putting contributions on automatic withdrawal. And remember that the earlier you start the smaller the percentage of your salary you need to sock away.


 3) Protecting yourself and your family. Reviewing your life insurance, disability and long term care insurance each year to make sure there are not any shortfalls that would cause serious irreversible consequences to your family should something happen to you.

4) Being unprepared for the unexpected. Unexpected expenses can jump out at you at any time. To protect yourself, set aside enough money to cover three to six months’ worth of essential expenses in an easily accessible savings or money market account. Retirees should try to increase this amount to cover a year. 

5) Getting carried away by credit. Credit card bills don’t have to be a nightmare — as long as you only charge as much as you can pay off each month. Otherwise, you stand to lose upward of 14 percent to interest. To tackle current balances, start by paying as much as you can on the highest-interest debt while always making at least on-time minimum payments on the others. Work your way down until you’re free of credit card debt — and stay that way.

6) Putting your head in the sand. You can’t plan ahead unless you know where you are. It’s easy to set up a personal net worth statement to get a big-picture view of your finances. List both your assets (what you own) and your liabilities (what you owe). Then subtract liabilities from assets to find out whether you’re in the plus or the minus. This will give you not only a big-picture view of your finances but also a benchmark against which to measure your progress.

7) Betting on the market. When the market goes up, it’s hard not to get caught up in the rush. But the reality is that it’s almost impossible to time the market’s ups and downs. Your best move is to stay with a diversified mix of investments for the long term. (Note: Diversification cannot ensure a profit or eliminate the risk of investment losses.) What is your Risk Tolerance? 

8) Betting on a single stock. Today’s hot stock can be tomorrow’s horror story. If one stock represents more than 20 percent of your portfolio, you’re over-concentrated — and you run the risk of big losses. Again, a diversified portfolio is your best move.

9) Losing track of student loans. You can’t hide from student loans. If you don’t stay on top of payments, they just get more onerous as interest and fees mount up. At least pay the minimum — and never miss a payment!

10) Not hanging on to health insurance. A 2013 study by the International Federation of Health Plans states that the average per-day hospital cost in the United States is $4,293. Talk about coming back to haunt you! A single illness or accident could wipe out your entire savings if you’re uninsured. The Affordable Care Act requires that you have health insurance — and so does smart financial planning. 

11) Putting off estate planning. To me, there’s nothing more frightening than not having a will naming a guardian for your minor children. Beyond that, the complexity of your estate plan will depend on your financial situation. But if you don’t put at least the basics in place — including an advance health care directive — you may be leaving your heirs with a web of difficulties.

12) Tapping Uncle Sam too early. Would you be willing to lose 6 to 8 percent of your income each month? Well, that’s what can happen to your Social Security benefits if you take them too early. Every year you delay collecting between age 62 (the earliest you’re eligible) and age 70, your monthly benefit goes up.

13) Not asking for help. You may be bravely following your own financial path, but when it comes to planning — especially retirement planning — it’s good to have a guide now and then. Talking to a financial adviser, at least occasionally, can give you a more realistic picture of where you are and where you want to go.

14) Keeping your family in the dark. Things are always scariest in the dark, so don’t be afraid to shed some light on your finances. Talk to your spouse openly about expenses, credit and debt, savings goals, and retirement. And when it comes to estate planning, make sure your adult children know what to expect.

Vasilios "Voss" Speros 602-531-5141
#lifeinsurance #RetirementStrategies
#‎sperosfinancial
https://www.linkedin.com/pub/vasilios-%22voss%22-speros/60/722/67b
vsperos@sperosfinancial.com
85254


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Speros Financial Retirement Tip of the day!

9/16/2015

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Speros Financial Retirement Tip of the day!
Vasilios "Voss" Speros 602-531-5141


For the year ending September 30, the cost of future lifetime retirement income has outpaced increases in retirement savings balances. That's left many pre-retirees with lower estimated retirement income despite strong market growth over the same period."

If that does not sound like a market update you've heard before, you're not alone. You're probably asking what does the cost of lifetime retirement income mean

What is retirement income? For our purposes, let's define retirement income as any method of obtaining a stream of income from a retirement account savings balance. We'll exclude other sources of retirement income not dependent on your savings, such as Social Security.

Why should income "cost" me anything? If you buy an income product, such as an annuity, you are paying a third party to assume longevity, market, interest and inflation risks on your behalf. (In other words, they are contracted to pay you for as long as you live, regardless of what the market does.) Even if you have no interest in an income product, we believe that estimating the cost of buying retirement income can help clarify your planning.

How does it help clarify my retirement planning? It gives you something to measure your retirement drawdown strategy against. For example, if your estimated retirement income is much lower than you anticipated, you may need to reexamine your plans. It can also help you estimate how much you need to save in order to obtain a certain income level.

Lessons Learned in the Q3 2014 Report So what have we learned?  Perhaps the biggest takeaway for pre-retirees is that the relationship between asset growth and retirement income is far more complicated than it appears. For example, for the year ending September 30, 2014, the median retirement savings balance for a 55 year old rose 16.5%, largely due to strong market growth. At the same time, the estimated retirement income cost for a 55 year old increased from $12.76 per dollar to $15.12. The net result is they can expect less retirement income despite the asset growth.

The major driver of the increased cost of retirement income is that yields on 10-year Treasury notes fell over the year, from 2.64% to 2.52%.  This change affected pre-retirees in their 60s less, who saw their market driven savings growth outpace the rise in retirement income costs, leaving them in relatively better shape than their younger peers. It is counterintuitive that your retirement savings balance can increase while your retirement spending power decreases. That is one of the reasons that by tracking retirement income costs, you can develop greater clarity in your retirement planning.

 

Vasilios "Voss" Speros 602-531-5141
https://www.sperosfinancial.com/
#lifeinsurance #RetirementStrategies  #‎sperosfinancial
https://www.linkedin.com/pub/vasilios-%22voss%22-speros/60/722/67b
vsperos@sperosfinancial.com
85254


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