Tag Archives: Finances

Debt Hangover: How to get your finances back on track and keep your 2024 financial resolutions

3-bottom, Citizen Journalism, City of Kentwood, City of Wyoming, Education, Finances, Going Local, How-To's, Kent County, West Michigan, , , , , , , ,
95% of financial resolutions are not kept (Courtesy, pxhere.com)


By Deborah Reed

WKTV Managing Editor

deborah@wktv.org


Dinorah Caro Livingston (Courtesy, Deborah Reed)

Financial resolutions are one of the top two resolutions people make at the beginning of each year. Yet 95% of financial resolutions are not met.

Many families have acquired a “debt hangover” as they move out of the holiday season and into the new year. New financial resolutions are made to get their financial situations on track, but rarely met.

This often compounds the problem, adding even more debt.

Dinorah Livingston, Regional Vice President for Primerica Financial Services and Money Mindset Coach, says we need to identify how debt accumulated and then change our mindset to stay on track with financial resolutions.

Identification: Where did the money go?

“Our relationship with money affects how we treat money,” says Livingston.

Livingston went on to say that debt hangover is often created from not living within your means, but is compounded by not preparing properly.

“It’s people not checking and balancing, not planning right, being impulsive – there are just so many things,” says Livingston.

Make purchases within your means (Courtesy, pxhere.com)

When making purchases such as a home, many people buy with “stars in their eyes.”

“They want the pretty, shiny thing instead of the reality of where they’re at,” says Livingston. “That’s how people end up being house poor and living paycheck to paycheck.”

Those living paycheck to paycheck often have to finance special occasions – such as Christmas – on credit cards. This can take years to pay off.

Wages are also not keeping up with the cost of living.

The median (average) household price in Kent County and Ottawa County and the median household income are not equal.

“Debt hangover is not only an issue every holiday, but because people just don’t make enough money,” Livingston says.

Is there a solution?

Continual financial literacy and financial education are part of the solution.

Though there is a wealth of financial resources and knowledge available, financial education in school systems is lacking.

Financial problems will come – be sure you are ready (Courtesy, pxhere.com)

“Even with so many resources available to us, people have so many things they don’t understand when it comes to financial literacy,” says Livingston. “And because they don’t know, they make mistakes.”

Fixed debt vs. revolving debt, debt stacking and fixed interest rates are some options for paying off debt.

The first step, however, is to put a plan in place. That plan should include an emergency fund, a short-term needs fund and a long-term needs fund.

“Getting rid of the debt is important, but what’s also important is making sure that you’re consistently filling your emergency fund,” says Livingston. “It’s not a matter of if you’re going to have a financial issue, it’s a matter of when.”

At times, multiple sources of income – even for the short term – might be needed.

Patience will also be needed since results are not instant. Instead, those results build into a compound effect.

“Many people get so narrow-focused that the only thing they can focus on is debt,” says Livingston. “What you focus on grows.”

Budget = Freedom

Control your money, don’t let it control you (Courtesy, pxhere.com)

“Some people think budgets put handcuffs on them,” says Livingston. “It doesn’t put handcuffs on you, it helps you understand where the money is coming from and where the money is going.”

For 19 years, Livingston lived paycheck to paycheck. She finally decided to track her spending to understand where the money was going.

“Once I understood the pattern of how spending was happening in my household, I realized I was the problem,” said Livingston. “And I was the solution.

“In nine months, I had shifted my spending and it allowed me to buy brand-new furniture for cash. I now controlled my money instead of my money controlling me, and it gave me freedom.”

Don’t give up…break it down

“Sometimes you might feel like you want to just give up,” says Livingston. “But you can make it happen.”

Livingston admits that changing mindsets may be hard work, but taking big dreams and breaking them down into smaller pieces can help.

“It’s not about perfection,” says Livingston. “All you need to do is focus on your progress; it’s really about progress.”


Seeing progress through tracking can help keep you motivated (Courtesy, pxhere.com)

How do we focus on progress?

“You can’t change everything all at once, so pick a max of three things that you’re working on and track them,” says Livingston.

Why do we need to track progress?

“We need to track our progress because our mind plays tricks on us,” Livingston says. “Especially at the end of the day, we want to give up.”


Livingston suggests tracking those three things for 90 days, remembering that – if you fall off the wagon – it’s not about perfection, it’s about the progress that you are making toward your goals. Progress is found in each small step.


Gratitude is an important part of the financial process (Courtesy, pxhere.com)

Gratitude = Less Debt??

Tracking the things you are grateful for is also important.

“I have a journal that I write in. Every day I write three things that I’m grateful for,” says Livingston. “Sometimes they’re financially related, sometimes they’re not.

“But when you’re focused on what you are grateful for, believe it or not, you spend less money.”

An outside perspective

For those unsure of what to track or where to begin, partnering with a financial advisor can help.

“Sometimes it takes an outside eye to take a look at what you’re doing, and point out those things that you’re missing,” says Livingston. “When we’re so close to it, we can miss it.”


Living debt free is possible with a plan (Courtesy, pxhere.com)

Living debt free

“It doesn’t matter if people have $10,000 of credit card debt or $100,000, they can be debt free – if they don’t accumulate anymore debt – in less than four years,” says Livingston.

It starts with a budget, then an emergency fund, a plan and sticking to the plan.

Above all, Livingston says, remember: “You’re the boss of your money.”

For more information on Primerica’s financial services, click here.

Financial Perspective: What is assisted living

3-bottom, Community Health, Finances, Kent County, Local Business, Senior Living, ,

By Dave Stanley
Integrity Financial Service, LLC

(Courtesy, Pxhere.com)

Assisted living is a type of housing option for seniors or disabled individuals who need help with daily activities but still want to maintain some level of independence. It’s a middle ground between independent living (such as in a private home or senior apartments) and more intensive care services like those found in a nursing home.

Assisted living facilities typically offer a range of services to support residents, including:

  1. Personal Care: Staff members are available to help with personal needs like bathing, dressing, eating, and mobility.
  2. Medication Management: Assistance with taking the correct medications at the right times.
  3. Meals: Facilities typically provide three meals a day tailored to the dietary needs of their residents.
  4. Housekeeping and Laundry: Regular cleaning and laundry services are often included.
  5. Social Activities and Recreation: Assisted living facilities often have a full schedule of activities and events to keep residents active and engaged. These might include fitness classes, arts and crafts, games, movie nights, and outings.
  6. Transportation: Scheduled transportation services may be provided for shopping, appointments, and outings.
  7. Healthcare Services: While not a replacement for a full-time medical facility, assisted living communities often have healthcare professionals on-site or on-call.
  8. Security: To ensure residents’ safety, assisted living facilities typically have security features such as 24-hour staff, emergency call systems, and safe, walkable areas.

In an assisted living facility, each resident typically has their own apartment or room, and common areas are shared. The goal of assisted living is to provide a supportive living environment where seniors can maintain a level of independence, while also receiving the personal care and support they need.

Please note that rules, regulations, and services provided can vary widely from one facility to another and from state to state. Some facilities may offer more advanced medical care, while others may focus more on providing a social and community environment. It’s important to research and visit facilities in person to determine the best fit for individual needs and preferences. 

Finding the right assisted living facility for yourself or a loved one involves careful research and planning. Here are some steps to guide you through the process.

First, evaluate the level of care that you or your loved one requires. This could be based on a variety of needs such as medical conditions, mobility, dietary needs, and personal care needs.

Next, begin doing online research to find assisted living facilities in the desired location. There are many websites and online directories where you can find information about different facilities. You can usually filter by location, services provided, cost, and more.

In addition to online research, contacting local health departments or agencies on aging could prove useful. These organizations often have resources that can help you navigate the process of finding an assisted living facility. They may also have knowledge of financial assistance programs.

After you have identified potential facilities, the next step is to schedule a visit. During your visit, pay attention to the environment, the staff, and the residents. This can give you an idea of what daily life is like at the facility.

Checking the facility’s safety and quality standards is another important step. This might involve looking into state inspection records, any violation histories, or any complaints made against the facility.

Lastly, cost is a significant consideration when choosing an assisted living facility. Make sure to understand what is included in the cost, and if there might be any additional charges for specific services.

Remember, choosing an assisted living facility is a big decision. Take your time to research and visit multiple facilities, and always ask any questions you may have to make sure you’re making the best choice for you or your loved one’s needs.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

West Michigan manufacturing indicators swing positive in May

3-bottom, Citizen Journalism, Finances, Local Business

By Chris Knape
Grand Valley State University

Brian Long is a local business forecaster. Credit: GVSU

May’s survey of purchasing managers shows the West Michigan economy continuing to slow at a measured pace as key indices continued a month-to-month yo-yo pattern signaling uncertainty – and reason for optimism.

The Current Business Trends Report, authored by Brian Long, director of supply management research for the Seidman College of Business at Grand Valley State University, included upticks in areas like sales, output, employment and purchases in May after flat or lower results in April.

“Since we instituted this survey many years ago we’ve seen our numbers bounce around, and this month our bounce was to the upside,” Long said. “Our index of new orders came in much stronger than expected. But of course, one month does not make a trend. So when we add up June at the end of the month, the numbers we get may be a little bit less robust.”

Office furniture makers continue to report soft market conditions – though no major layoff announcements have been made. Meanwhile, automotive parts suppliers remain steady with backlogs and upside potential thanks to “reshoring” – or bringing manufacturing of certain parts that had been made overseas back to U.S.-based suppliers.

“This is where I think West Michigan is well positioned to pick up some additional business.” Long said. “The problem is, of course, reshoring in the industrial market takes time to identify and qualify new sources so it won’t happen overnight.”

Here’s a look at the key index results from May’s survey of West Michigan manufacturers:

  • New orders index (business improvement): +19  versus +0 in April
  • Production index (output): +13 versus +5 in April
  • Employment index: +13 versus +3 in April
  • Lead times index: +2 versus +3 in April



More information about the survey and an archive of past surveys are available on Seidman’s website.

How to manage the transition into retirement

3-bottom, Citizen Journalism, Community Health, Finances, Senior Living, , ,

By Dave Stanley
Integrity Financial Service, LLC

Pxhere.com

Retirement can be a time of great joy and relaxation, but it can also be a time of stress and anxiety. Transitioning from working life to retirement can be challenging, and the loss of routine, identity, and social connections can be difficult to navigate. Moreover, retirement can bring new financial and health-related concerns, adding to many retirees’ stress.

One of the main sources of stress in retirement is financial uncertainty. Many retirees worry about whether they have saved enough money to support themselves in retirement and fear running out of money before the end of their lives. This fear can lead to anxiety and can make it difficult for retirees to enjoy their retirement years. Moreover, unexpected expenses, such as medical bills or home repairs, can further exacerbate financial stress and add to retirees’ worries.

Retirement can also bring changes to social connections, which can be stressful for many people. Retirees may miss their daily interactions with colleagues and feel disconnected from the workplace and the sense of purpose that work provides. Moreover, retirement can lead to changes in relationships with family and friends, as retirees may find that they have more time on their hands than their loved ones do.

In addition to these social and financial concerns, retirement can also be stressful from a health perspective. As people age, they may face new health challenges, such as chronic illness, that can impact their quality of life and add to their stress levels. Furthermore, retirement can lead to a more sedentary lifestyle, which can contribute to a decline in physical and mental health.

There are several strategies that retirees can use to manage stress and navigate the transition to retirement more smoothly. One of the most important is to maintain a sense of purpose and engagement in life. Retirees can find new hobbies or interests, volunteer, or take on part-time work to stay engaged and connected to others. This can help alleviate the sense of loss and disconnection that many retirees feel.

Another strategy is to stay socially connected. Retirees can stay in touch with former colleagues, join social clubs or groups, or participate in community activities to maintain a sense of connection and purpose. This can help prevent social isolation and loneliness, which can be detrimental to both physical and mental health.

Moreover, retirees can take steps to manage their financial concerns by creating a budget, working with a financial advisor, and exploring different retirement income sources, such as Social Security or annuities. This can help alleviate financial stress and provide a sense of security and stability.

Finally, retirees can take steps to maintain their physical and mental health by staying active, eating well, and seeking medical care when needed. Engaging in regular physical activity can help improve mood, reduce stress, and prevent or manage chronic illness.

In conclusion, retirement can be a time of stress and uncertainty, but there are strategies that retirees can use to manage these challenges and enjoy a fulfilling and healthy retirement. By maintaining a sense of purpose and engagement, staying socially connected, managing finances, and prioritizing physical and mental health, retirees can navigate the transition to retirement more smoothly and enjoy a fulfilling and rewarding retirement.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Will your student loan debt last into retirement?

3-bottom, Citizen Journalism, Finances, Local Business

By Dave Stanley
Integrity Financial Service, LLC

Pxhere.com

Student loan debt is a growing problem in the United States, with many people struggling to pay off their loans well into their retirement years. According to a report from the Consumer Financial Protection Bureau (CFPB), the number of older Americans with student loan debt has quadrupled over the past decade, with more than two million people aged 60 and over holding student loan debt. This trend has serious implications for older Americans’ financial security and wellbeing.

One of the main challenges facing older Americans with student loan debt is the impact on their retirement savings. Many people who are still paying off student loans may not be able to contribute as much to their retirement savings as they would like, leaving them vulnerable to financial insecurity in retirement. Moreover, some older Americans may have to continue working well into their retirement years to pay off their student loans, which can be physically and emotionally challenging.

Additionally, student loan debt can impact older Americans’ access to credit and other financial products. Many lenders may be reluctant to extend credit to people with high levels of debt, which can limit older Americans’ ability to obtain credit cards, mortgages, and other financial products. This can have serious implications for their ability to purchase homes, cars, and other assets and impact their overall financial wellbeing.

Older Americans with high levels of debt may be more likely to delay or forego medical treatment or other essential services due to financial constraints. This can seriously affect their health and wellbeing and lead to higher healthcare costs in the long run. Moreover, student loan debt can also impact older Americans’ ability to access healthcare and other essential services.

There are several strategies that older Americans with student loan debt can use to manage their debt and protect their financial security. One of the most important is to explore options for loan forgiveness or other forms of relief. Depending on the type of loan and the borrower’s circumstances, loan forgiveness or discharge options may be available, which can help reduce or eliminate the debt burden.

Moreover, older Americans with student loan debt can explore options for refinancing or consolidating their loans. By consolidating their loans, borrowers may be able to obtain a lower interest rate and reduce their monthly payments. Additionally, refinancing may be an option for borrowers with good credit who are able to obtain a lower interest rate.

Another strategy for managing student loan debt is to prioritize payments and create a budget. By prioritizing loan payments and creating a budget, borrowers can better manage their finances and ensure that they are making progress in paying off their debt. Moreover, older Americans can work with financial advisors to explore other strategies for protecting their financial security, such as investing in retirement accounts or exploring other income sources.

In conclusion, student loan debt is a growing problem for older Americans, with serious implications for their financial security and wellbeing. However, there are several strategies that older Americans can use to manage their debt and protect their financial security. By exploring options for loan forgiveness or relief, refinancing or consolidating loans, prioritizing payments, and working with financial advisors, older Americans can better manage their debt and achieve greater financial security and wellbeing in retirement.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Understanding the options will help determine income payout

Citizen Journalism, Finances, How-To's, Non-Profits, Senior Living,

By Dave Stanley
Integrity Financial Service, LLC

(Pxhere.com)

Annuities are a great way to ensure your financial security in the long term. Annuities provide regular payments that can help you pay bills and cover other expenses while also helping protect against inflation and market downturns. Annuities are popular with many retirees as they offer a steady income stream that can last throughout retirement.

The question is, how much income does an annuity payout on average? 

The answer depends on several factors, including what type of annuity you purchase and the terms of the agreement. Annuities typically guarantee a fixed payment amount or can be variable, depending on the performance of certain investments or indexes. Annuities are also available with riders that increase the amount of income you receive.

If you’re purchasing a fixed annuity, the amount of income is predetermined by the terms of the agreement and is typically based on your age and the length of time over which payments will be received. Annuities with guaranteed payouts usually offer higher rates than variable annuities, which depend largely on investment performance. Annuity income may also be increased by adding riders like inflation protection or other options that guarantee additional payments.

Generally, an annuity can provide anywhere from several hundred dollars to several thousand dollars a month in retirement income, depending on the type of product purchased and any riders added. As with most investments, it’s essential to consider all of your options before purchasing an annuity to ensure you’re getting the best deal.

Maximizing your payout

In addition, there are several steps you can take to maximize your annuity income and get more out of your investment. Annuitants should review their policy details regularly, as rates may change over time. Annuitants should also consider adding riders to their policy if it suits their particular circumstances. These additional features may help increase the income received from an annuity. Annuitants may also increase the amount of money they receive by taking a lump sum distribution option or electing periodic payments.

Overall, as stated above, the average income from an annuity will depend on the type of product purchased, any added riders, and other factors. Annuity income may range from several hundred dollars to a few thousand dollars per month, depending on the type of annuity and any riders added. By reviewing policy details regularly and adding riders to their policy, annuitants may be able to increase the amount of money they receive from an annuity. Annuities are a great way to ensure your retirement financial security, so make sure you understand your options before investing.

If you’re considering an annuity as a part of your retirement income, it’s essential to understand your options. Contact an annuity expert to learn more about the different types of annuities and how they can help secure your financial future.


Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Deciding if an annuity is right for your financial plan

3-bottom, Citizen Journalism, Finances, Hard News, How-To's

By Dave Stanley
Integrity Financial Service, LLC

(Pxhere.com)

There is a well-known financial planner, and you may have seen him appear on television and in print advertising, who has built his reputation by making this bold and controversial statement. “I hate annuities…”. The intent of this paper is not to bring attention to or to discredit this professional pitchman.

He has already done that by making irresponsible statements, such as this, in public while privately buying stocks in companies that sell them. My purpose is to state, “I love annuities…but annuities may not be for everyone or used for all purposes…especially if the purpose of your moneyis to leave part or all of your estate to your beneficiaries.” In cases like this, I recommend life insurance.

Following is a brief listing of reasons why I love annuities if the purpose of your money is to spend it while you are alive:


• Your money is safe in an annuity because your principal is protected.
• Your money is secure in an annuity because it is protected by the strength of the insurance company that sells it.
• Because annuities are tax-deferred, interest earned on your account is not taxed until you withdraw funds from your annuity.
• The proceeds received from your annuity go directly to your beneficiary after your death and will avoid probate.
• An indexed annuity earns interest on the income growth of the index but is not subject to market losses.
• You may choose an income rider on your annuity that will guarantee lifetime income for you and spouse.

Following is a brief listing of reasons why I love life insurance if the purpose of your money is to provide for your beneficiaries after your death:


• Life insurance may be used to replace the policy owner’s lost wages after death.
• Life insurance proceeds may be used to help pay for your children or grandchildren’s education.
• Life insurance proceeds may be used to help pay off debts, and to protect your spouse’s financial independence.
• Life insurance may be used to pay off a home mortgage, allowing your spouse to live in the family home without debt.
• Life insurance may be used to support your favorite charities.
• Life insurance may be used to pay funeral expenses.
• Life insurance provides tax advantages to the owner and beneficiaries like no other product can.
• Some life insurance policies may provide benefits to pay for nursing and home health care expenses.

In conclusion, I love annuities and you should too if the purpose of your income is to provide for you while you are alive. I love life insurance and recommend it to my clients if the purpose of your money is to leave it to your beneficiaries after your death.

What is the purpose of your money?  What do you want it to accomplish?

I recommend you consult your trusted advisor to help answer this critical question for you and your family.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Making a financial plan for end of life

3-bottom, Finances, Local Business, Senior Living,

By Dave Stanley
Integrity Financial Service, LLC

(Pxhere.com)

In my line of work, I have the unfortunate job to deal with the passing of someone’s spouse, parent, or sibling. I see in these moments of grief I know how, if the details aren’t thought of ahead of time, the pain can be compounded with the frustration of trying to navigate through the messiness of financial matters not thought of ahead of time.

Recently, a friend died, her husband not only has to deal with the grief of losing his spouse, but also with all the details of their financial life.

It soon became evident that he did not know the details of their finances (he didn’t even know the password to the checking account). And because of this, I thought that I would take the time to share what I advise my clients to do regarding the preparation of what is inevitable.

I advise my clients to keep a list of all their accounts (checking, savings, CD, annuities, life, mutual funds, etc.) in their Safe Documents folder. In it along with names and phone numbers of their advisors for each of those accounts. For the checking, savings, CD’s, etc., those accounts should have a POD (Payable On Death), as well as having their passwords for those accounts given to someone they trust.

The reason I say giving the password to someone they trust you ask? What happens if the mortgage needs to be paid and yet the death certificate is not available yet? Even though the account may have the POD, until the death certificate is produced, only those on the account has authority to access the accounts to take care of any necessities.

When it comes to a spouse having to deal with the financial decisions; the grief can cloud their choices, and that is why having a plan written out and discussed with the family and the advisor can take away one less decision to make, since it has already been made. This is especially true when it comes to planning the funeral.

All the proper planning in the world will not be beneficial if the information cannot be found during the crucial days and weeks following the loss of a loved one, or not having a written-out plan and discussed with an unbiased advisor and attorney to help carry out those wishes. While the topic is maybe challenging to discuss, it is essential.

Here are some tips of things to have in your Safe Documents Folder.

  1. Will: If the deceased had a will, it outlines how their assets will be distributed and who will be in charge of carrying out their wishes.
  2. Trust documents: If the deceased had a trust, the trust document outlines how assets will be distributed and who will manage the trust.
  3. Life insurance policy: The policy outlines the benefits and who the beneficiaries are.
  4. Marriage certificate: If the deceased was married, the marriage certificate may be needed to prove their relationship with their spouse.
  5. Social Security card: The Social Security Administration will need to be notified of the death, and the deceased’s Social Security number will need to be included on certain forms.
  6. Military discharge papers: If the deceased served in the military, their discharge papers may

Being prepared is smart planning.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Reviewing the modern-day insurance industry

3-bottom, Citizen Journalism, Finances, Senior Living, ,

By Dave Stanley
Integrity Financial Service, LLC

(Pxhere.com)

There is an old saying about life insurance: “you buy life insurance because you either owe someone or you love someone.”

The life insurance industry has changed, with the introduction of the internet, access to information has increase as well as the options to acquire it and manage it. For many people life insurance is just a commodity and frankly it is until….. until the insured dies. Then it becomes a lifeline to security, income and family continuation.

Working with a licensed and authorized insurance agent can help you decipher the insurance road.  Still many people want to look behind the hood for themselves.  If you are one of those people, here are some tips.

Shop around and compare quotes from multiple insurers. Different insurers may have different rates for the same coverage, so it’s important to compare quotes from multiple companies to find the best deal.

  1. Consider term life insurance. Term life insurance is generally less expensive than permanent life insurance, such as whole life or universal life. With term life insurance, you pay a premium for a specific period of time (the “term”), such as 10 or 20 years. If you pass away during the term, your beneficiaries will receive a death benefit. If you outlive the term, the policy will expire, and you will no longer be covered.
  2. But, term insurance is like renting, you only can keep it for a specific period of time. Permanent (whole life) insurance will protect you for your entire life.
  3. Consider your coverage needs. The amount of coverage you need will affect the cost of your policy. Determine how much coverage you need based on your financial goals and the needs of your beneficiaries, and choose a policy that provides the right amount of coverage at a price you can afford.
  4. Consider your health. Insurers will consider your health when determining the premium for your policy. If you have good health, you may be able to qualify for lower premiums.
  5. Consider your lifestyle. Insurers may consider factors such as your occupation, hobbies, and whether you smoke when determining the premium for your policy. If you have a high-risk occupation or engage in risky hobbies, you may pay more for life insurance. If you smoke, you may also pay more for life insurance.
  6. Considering working with an independent insurance agent. An independent insurance agent can help you compare quotes from multiple insurers and find a policy that fits your needs and budget.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

What is an irrevocable Life Insurance Trust, and how does it work?

3-bottom, Citizen Journalism, Finances

By Dave Stanley
Integrity Financial Services, LLC

“The things you do for yourself are gone when you are gone, but the things you do for others remain as your legacy.” – Kalu Ndukwe Kalu

Created to own and control a life insurance policy or policies while the insured is alive, Irrevocable Life Insurance Trusts (ILITs) are tools that are sometimes recommended by estate and planners. ILITS also manages and distributes proceeds from a policy when an insured dies.

ILITS have three components: a grantor (creator of the trust), a trustee (manager of the trust), and a beneficiary or beneficiaries. Beneficiaries are those who receive the assets of the trust when the grantor dies.

In an ILIT, the trustee purchases the policy or policies, and the trust becomes the owner. When insurance benefits are paid out upon the grantor’s death, the trustee collects those funds, pays any estate taxes due, along with outstanding debts such as legal fees and probate costs, then distributes the rest to the beneficiaries.

What are the benefits of an ILIT?

The primary reason most people consider an Irrevocable Life Insurance Trust is to help mitigate estate taxes. Over the past few years, the government has increased the estate and gift tax exemption to $11.58 million per individual. Since the majority of people don’t come anywhere close to that amount, the tax benefits of an ILIT are not as attractive as they once were.

Still, there are other reasons people choose an ILIT. These include:

· Beneficiary incapacity: If a life insurance beneficiary is incapacitated, having an ILIT can prevent the court system from controlling the proceeds.

· Provides cash to pay expenses: If there are estate taxes or other debts, an ILIT will provide immediate money to pay those expenses.

· More control: A properly-designed ILIT gives you more control over the policy or policies and the use of proceeds.

· Income for a spouse: An ILIT can provide Income to your spouse without that money being included in the spouse’s estate.

· Potential protection for heirs: Depending on the state in which you live, proceeds from life insurance payouts may have protection from creditors.

· Ability to include a “Spend-Thrift” Provision: If you have an heir or heirs who have issues managing money, your ILIT trust can contain a spend-thrift provision. A spend-thrift provision pays your beneficiaries monthly instead of giving them a lump sum upfront.

ILITS are not for everyone. They have some definite cons worth considering:

  • ILITS generally cannot be modified. The “irrevocable” part of an ILIT means that it is nearly impossible to make changes other than changing your trustee. Once you place a policy in an ILIT, you give up all rights to that policy. You cannot reassign it to a different trust or entity. ILITS are complex and nuanced legal vehicles requiring the expertise of an attorney who specializes in trusts. They are rather expensive to create and maintain, and you should consider these costs.
    • ILITs can be very expensive to create and maintain. An ILIT is not something you can do yourself with online software. It requires the often pricey services of an experienced estate planning attorney. In addition to setup costs for an ILIT, there are also ongoing expenses that can add up.

While an ILIT offers certain advantages for high-net-worth individuals, it is far from the only option. There are many different kinds of trusts. Each of these trusts are designed to solve specific estate issues.

If you are considering forming a trust, use an authorized professional and experienced trust designer (attorney) who understands your goals and unique financial situation to see if an ILIT is the best choice. Legal representation is important when considering an ILIT; never attempt this alone.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Where can you find the money to build a safe, predictable retirement?

3-bottom, Citizen Journalism, Finances, Senior Living

By Dave Stanley
Integrity Financial Service, LLC

Pxhere.com

You are likely to be retired much longer than you think.

For how long do you think you will live? Do you believe you’ll live into your late 70s? Are you confident you’ll follow in the path of your parents, who were alive and well into their mid to late 80s?

The average joint life expectancy (men and women together) is approximately 90 years for over 49% of the population. A full 20% of Americans live to age 95!

Depending on your unique perspective, that’s either good or bad. It’s good because many people want to live for as long as possible, provided they are in decent physical and mental health. However, a long life can be bad news when it puts you at risk of outliving your money in retirement.

Something else to consider is that these numbers are AVERAGES. More people are hitting triple digits, and you could very well be one of them. There are tons of exceptions to the rule, especially if you are the beneficiary of excellent genes, have made an effort to stay fit and healthy, and have managed stress properly.

Longevity is a possibility. This is why creating a portfolio to help you maintain your current standard of living in 30-plus years of retirement is challenging. Having less money in retirement is a concern for retirees and pre-retirees. Nearly all seniors know someone who has beaten the odds and lived longer than they planned.

Many retirees and pre-retirees had had someone in their own families who went through hardship and deprivation because they ran out of many at a time when they needed it the most.

The logical solution to not having enough money for retirement is to start earlier and save more. That’s not always easy to do, however. Many people are barely making ends meet and don’t have much discretionary money to create retirement income. You may fall into that category and worry that you don’t have any money to build a retirement account.

How do you find money to finance a retirement plan?

Developing a saving and income-planning mindset is valuable at any age.

Understandably, you might have a tight budget due to where you are in your career track. Or, you might have family, medical, or debt issues that make saving a tough proposition.

Fortunately, there are some ways you can free up cash or find the money you never knew you had to fund a retirement plan. Here are three things you can do right now to free up money for retirement.

1. Debt restructuring. Look at all your debt, including student loans and consumer debt. Perhaps you can negotiate lower rates or pay the debt off more slowly.

2. IRA or 401(k) Ask your financial expert and tax advisor to see if you might qualify to pull money out of your qualified plan without a penalty. If you qualify, you can use that cash to purchase investments that give you higher interest rates. This option is available under rule 72(t) for certain individuals who are younger than 59½.

3. Live a simpler lifestyle. Making your car, major appliances, and other big-ticket items last longer can add up to thousands of dollars you can use to fund your post-career life.

 

No matter your current financial situation, you can and should set aside money for a time when you will no longer get a paycheck. Starting early and being consistent, along with small lifestyle changes, will help you avoid common mistakes and achieve a better retirement lifestyle.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Ever hear of QLACs? You are not alone

3-bottom, Citizen Journalism, Finances

By Dave Stanley
Integrity Financial Service

Pxhere.com

As more and more seniors look for ways to lower their taxes in retirement, Qualified Longevity Annuity Contracts or QLACs are stepping into the spotlight.

 

Many seniors in the early phases of their retirement don’t need to tap into their traditional retirement accounts. (IRAs/401ks). Unfortunately, they are forced to do so because of IRS Requirement Minimum Distributions (RMD) rules.

Note: The RMD age recently changed from 70&1/2 to 72. When you reach your RMD age, you must take money out of your qualified plan each year. Be sure to clarify with your CPA or tax planner to which group you belong.

If you are in a similar situation and don’t need to take distributions, you may want to consider setting up a QLAC. The “qualified” part of the QLAC refers to the fact that this kind of annuity is purchased with “qualified” funds as defined by the IRS.

A QLAC uses a portion of a person’s RMD distributions to grow deferred until a certain age (85 maximum) QLACs are a type of longevity annuity.

A QLAC, which has the insurer taking on market and interest rate risk, is set up by transferring money from an existing IRA or 401(k) account to an insurance company annuity. A QLAC contract pays you a steady stream of income later in life.

The longevity annuity “chassis” of a QLAC has been around for years. But what has changed is how the IRS treats longevity annuities within tax-deferred accounts. Current rules allow individuals to spend 25% of their retirement savings account or $135,000 (whichever is less) to purchase a QLAC.

In 2014, the Treasury Department relaxed RMD rules a bit to encourage Americans to prepare for retirement. These new rules let you buy a QLAC with your IRA and not include the value of the QLAC when you calculate your RMD.

How does a Qualified Longevity Annuity Work?

A Qualified Longevity Annuity is an annuity into which you pay a lump sum of money. At a future date specified on your contract, you begin receiving guaranteed monthly income for as long as you live.

A longevity annuity appeals to many because the stock market and interest rate risk transfers to the insurance company. The insurance company tells you exactly how much Income you will get in the future when you purchase the annuity. This future income amount is guaranteed.

With a QLAC, you get tax-advantaged income security that starts in your old age for an attractive price.

By owning a QLAC, you may be able to increase the amount withdrawn from your savings in the early retirement phase by as much as 30% because the annuity will give you predictable, guaranteed Income later.

Many retirees purchase QLACs because of their tax advantages. However, they have other benefits, too. QLACs require only one upfront payment and don’t have annual fees. They are one of the easier-to-understand, straightforward, and transparent financial products.

How can a QLAC help reduce taxes?

A QLAC can help you retain more of your money in retirement by reducing your tax burden. Let’s say you had a traditional IRA and invested the maximum allowable $135,000 into a QLAC with a payment start date of age 80. If you had not purchased a QLAC, your $135,000 would grow in value. When you reached your RMD age, you would have to withdraw your first RMD, which is fully taxable as income. Having a QLAC, you are permitted to omit that $135,000 from your RMD calculations. The tax savings from not having to take your RMDs for nearly ten years could add up to huge savings. To understand how this might help your unique situation, you will need to consult a tax expert who understands the inner workings of QLAC products.

What are some pros and cons of QLACs?

QLACs, as mentioned before, allow you to defer mandatory distributions up to age 85, which could add up to significant tax savings. Also, you can retain tax advantages because you purchase a QLAC with qualified funds.

A QLAC can provide an increase in your financial security and well-being. You will have the kind of contractually guaranteed, predictable stream of income that you only get with annuity products.

Properly designed QLACs can also help you cover long-term care expenses and provide protection for your spouse so that if you die before they do, they will continue to receive Income.

Converting as little as 15% of your 401(k) balance to a QLAC when you retire can boost your retirement readiness in a meaningful way.

The downsides of QLACs

QLACs have many positive benefits, but they are not for everyone. If you enjoy a lot of hands-on control over your money, having a QLAC might not work well for you. That’s because you relinquish short-term control over your money to get guaranteed lifetime income with an annuity.

Like many other financial products, QLACs require a degree of trust in the company providing the product. After all, payouts for annuities are contingent upon the claims-paying ability of the annuity company who issues them. You must do your research and only select companies with strong ratings and positive client feedback.

You should only purchase a QLAC after consulting a safe money and income specialist. Even if you currently have a financial advisor, he or she may not understand the nuances of a QLAC, especially if you choose to use a QLAC in more complicated financial planning strategies, such as “laddering.” If your current advisor cannot explain QLACs to you, seek advice from a qualified expert.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

How do annuities work?

3-bottom, Finances, Senior Living

By Dave Stanely
Integrity Financial Services, LLC

Pxhere.com

Annuities are financial products that provide a guaranteed income stream in exchange for a lump sum payment or series of payments. There are several different types of annuities, including fixed, variable, and indexed, each with its own features and benefits.

 

Here is an overview of how annuities work:

 

  1. An individual enters into a contract with an insurance company to purchase an annuity. 
  2. The individual makes a lump sum payment or a series of payments to the insurance company. 
  3. The insurance company invests the payments and earns a return on the investment. 
  4. The individual can choose to receive the income from the annuity in a number of ways, such as: 
    1. A fixed amount each month, quarter, or year 
    1. A variable amount that depends on the performance of the underlying investments 
    1. A combination of the two 
  5. The income payments from the annuity are guaranteed for a specified period of time or for the remainder of the individual’s life.

One common type of annuity is a fixed annuity, which provides a guaranteed rate of return and a guaranteed income stream for a specified period of time. The income stream can be received all at once in a lump sum, or it can be received in installments over a period of time.

Before making a purchase, it is important to carefully review the terms of the annuity contract, including the fees, surrender charges, and any restrictions on withdrawing funds.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

Worried about interest rate volatility? “Ladder up!”

3-bottom, Citizen Journalism, Finances, Local Business, Senior Living, , ,

By Dave Stanley
Integrity Financial Services, LLC

Image from Pxhere.com

If you are like many pre-retirees or retirees, you may be hesitant to purchase annuities because you worry you will enter the market at the wrong time and won’t maximize your returns. An increasingly popular technique known as “annuity laddering” may help guard against this situation and make the transition to annuities much easier and less stressful for you.

Building an annuity ladder means that you purchase a series of annuities over time instead of dumping a lump sum into one annuity that locks you into one rate. With a ladder, you split your premium across multiple smaller annuities. For instance, maybe you decide to buy one annuity every two years for the next ten years. Or you buy one annuity per year for the next five years.

The annuity ladder strategy has several advantages

The first advantage is that you don’t have all your eggs in one basket. By diversifying your annuities, you are less susceptible to the fluctuations of the market.

The second advantage is that you can take advantage of changes in interest rates. When interest rates rise, you can purchase annuities that have not yet been affected by the market change.

The third advantage is that you can ladder annuities with different payouts. For example, you could buy an annuity with a term period of 5 years, the next year buy another 5-year term period, and up the ladder, you go. When you use the annuity as income, when one matures, simply start converting them to an income stream. Income periods can be any length you wish, even a lifetime. This way, you would have a stream of income that would last for the rest of your life.

Diversifying to reduce risk

Laddering annuities can be a great way to secure your financial future. By diversifying your annuities, you can protect yourself from market fluctuations and take advantage of changes in interest rates. By laddering annuities with different payouts, you can ensure that you have a stream of income that lasts for the rest of your life.

Annuity laddering can help you manage risk. By laddering annuities with different maturity dates, you create a “spread” that can protect you against interest rate risk.

Since predictions of whether interest rates will go up or down are, at best-educated guesses, an annuity ladder lets you bet on both scenarios. A ladder may increase your chances of earning more when rates go up or smooth out losses if rates go down.

Always review to see what’s right for you

There are many different ways to build annuity ladders for yield, including fixed-rate ladders using multi-year guaranteed annuities (MYGAs). You can also use a “mixed-fix” approach combining MYGAs and fixed–index annuities. Deferred multi-year ladders work in a somewhat similar fashion to certificates of deposit (CDs).

Another approach is the deferred multi-year annuity ladder. You take a lump sum to purchase several small annuities in a deferred multi-year annuity ladder, each with a different maturity date. As each annuity matures, you either roll it over into a new annuity or convert it to income.

Creating an annuity ladder may not work for everyone. Still, it is worth bringing up with your retirement advisor, especially if you find yourself considering adding Safe Money products to your portfolio.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Guess what is coming to a bank near you?

3-bottom, Citizen Journalism, Finances, Local Business, Senior Living, , , , ,

By Dave Stanley
Integrity Financial Services, LLC

Image from Pxhere.com/ Alan Levine

What appears foreign will become commonplace, and you might as well prepare for it. Cryptocurrencies and decentralized finance are all the rage right now, and you’ve probably heard of things like Bitcoin or Ethereum. However, the real story lies in the mechanism that drives these new technologies and forever changes the digital landscape. This is where blockchain enters the picture, the novel technology that enables things like cryptocurrency to exist in the way they do.

What is a blockchain, and what is with all the hype?

Blockchain is a digital database used to catalog all kinds of information (e.g., money, goods, properties, and services). The power behind these databases lies in their ability to create blocks of data which are then chained together with timestamps attached for easier tracking purposes. This makes an unbreakable audit trail documenting every action taken on the platform – from transfer payments between users to how many calories were burned during your morning run! Digital databases are powered by a computer network that is either part of a centralized or decentralized network.

Bitcoin, for example, uses blockchain to record peer-to-peer transactions through a distributed database. This distributed database exists between the computers of all users of the cryptocurrency. The idea is that having the database distributed amongst all the users allows for greater transparency and enhanced security. It enables users to access, audit, trace, and verify digital assets without working through an intermediary. By cutting down on intermediaries, blockchain cryptocurrencies put the power to control data back into consumers’ hands.

Why are cryptocurrencies more secure?

The adage “don’t put all of your eggs in one basket” sums it up. Like banks and universities, many institutions with valuable and personal consumer information operate using a central database. This information is stored within a centralized computer network housed in one location. All that data is controlled by one entity and is more vulnerable to hacks because it would require only a single point of failure to gain access. For a potential attacker to compromise a distributed database like Bitcoin, they would have to gain control of at least 50% of the computers within that network. Even then, the other 50% can fact-check and sniff out discrepancies, making it very unlikely that a hack would ever occur.

Why is this important when it comes to managing digital assets?

· No third-party involvement

· Transactions of authenticated digital assets made via blockchain are typically available in 10 minutes, versus a traditional bank transaction that may take 24 hours or more to complete, not including weekends and holidays

· Blockchain technology guarantees the data’s integrity through cryptography and a distributed database.

Why is this important to us now?

This is the evolution of our data future, and the future of all banks is being reshaped by new technology. Protecting and maintaining control of data is more critical now than ever. In the past few years, major companies like Facebook, LinkedIn, and Morgan Stanley have been impacted by massive data breaches affecting millions of users. Blockchain technology is making waves in the digital world by providing much-needed security measures and by giving them the power to control data back to consumers.

Digital?

Yes, your bank is now 100% digital; it is now our future. Be informed.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

A fresh look at whole life insurance

Citizen Journalism, Finances, Local Business, Senior Living, , ,

By Dave Stanley
Integrity Financial Service LLC

Whole life has a simple objective, to ensure your “whole” life, in other words, it will pay the benefits anytime during your whole life, regardless of how long you live. All you need to do is pay the premium.

Image from Pxhere.com

Life insurance is a contract between an insured person (the policyholder) and the insurer. The premium pays for guaranteed benefits in case of death, but there are other features that can provide additional protection as well.

In exchange for fixed premiums, whole-life policies offer life insurance protection and tax deferral on growth by accumulating cash value with competitive interest rates.

 

In exchange for fixed premiums, an insurance company promises to pay a set benefit when the policyholder dies but also offers additional benefits as well. Whole life insurance policies can build up cash value, effectively a cash reserve that pays a modest rate of return, and the growth is tax-deferred. Guarantees are based on the claims-paying ability of the issuing company.

Borrowing still option

Most whole life insurance policies allow policyholders to borrow a portion of their policy’s cash value. Access to the cash value can allow you to pay for things like college expenses, a home down payment, or any other needs you may have.

 

When the policyholder dies, his or her beneficiaries receive the benefit from the policy. Depending on how the policy is structured, benefits are usually not taxable.

Whether whole life insurance is the best choice for you may depend on a variety of factors, including your goals or circumstances.

Considering options

Whole life insurance can be an excellent investment for those who want to be protected financially after death. The policies promise a fixed benefit but also offers additional benefits such as cash value – which can build up and provide returns tax-deferred in order of security against personnel losses caused by unforeseen events like accidents or illnesses, and guarantees based on claims-paying ability from issuing companies.

The FDIC (Federal Deposit Insurance Corporation) does not insure life insurance. It is not insured by any federal government agency, bank, or savings association. Each state’s Department of Insurance regulates life insurance.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.  

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

In death, the details become essential

3-bottom, Finances, Local Business, , , , ,

By Dave Stanley
WKTV Contributor
Integrity Financial Service, LLC

(Pxhere.com)

In my line of work, I have the unfortunate job of dealing with the passing of someone’s spouse, parent, or sibling. In these moments of grief, I know how, if the details aren’t thought of ahead of time, the pain can be compounded with the frustration of navigating through the messiness of financial matters not thought of ahead of time.

Recently, this aspect hit home recently when a close friend quickly passed away, leaving his spouse and friends to deal with the remaining chaos. Dealing with finances at the time of grieving adds another level of stress and confusion.

I advise my clients to keep a list of all their accounts (checking, savings, CD, annuities, life, mutual funds, etc. in their trust folder. If they don’t have a trust and own any property, that is the first thing they must do along with their advisors’ names and phone numbers for each of those accounts. For the checking, savings, CDs, etc., those accounts should have a POD (Payable On Death), and their passwords should be given to someone they trust.

The reason I say giving the password to someone they trust, you ask? What happens if the mortgage needs to be paid and yet the death certificate is not available yet? Even though the account may have the POD, until the death certificate is produced, only those on the account have the authority to access the accounts to take care of any necessities.

When it comes to a spouse having to deal with the financial decisions, the grief can cloud their choices, and that is why having a plan written out and discussed with the family and the advisor can take away one less decision to make since it has already been made. This is especially true when it comes to planning the funeral.

All the proper planning in the world will not be beneficial if the information cannot be found during the crucial days and weeks following the loss of a loved one or if not having a written-out plan and discussed with an unbiased advisor and attorney to help carry out those wishes. While the topic is maybe challenging to discuss, it is essential.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

How to enjoy life and reduce stress

3-bottom, Citizen Journalism, Finances, Local Business, , , ,

By Dave Stanley
Integrity Financial Service LLC

Some tips to reduce stress.

  1. Get serious about your retirement: If your employer matches your 401(k) contributions, you need to take advantage and max out your contribution. Your employer’s share is “house money,” which means using their contribution as part of your 401(k) plan as an employee benefit. Many 401(k) plans allow for conversion to a guaranteed retirement income which can be used as a lifetime benefit. Ask your benefits manager to see if it is included in your plan. It would help if you also planned at what age you would like to retire. If you have had a loss in investment returns in your 401(k), ask yourself how you can gain that back. Your asset allocation in your 401(k) can be changed as you get closer to retirement age. Most plans allow you to move the money as a rollover to a self-directed IRA, which provides the option of using an annuity with an “Income Rider” attached to provide desired guarantees. If you have an IRA and are not contributing annually, start this year; contributions made before April can be deducted from the previous year’s income.

  2. If you don’t have a will, see an attorney and make one. If you have a current will make sure it is up to date.

  3. Name an executor for your estate. Use caution in the selection, and make sure you have asked the executor for permission to use them. Based on the valuation of your estate and your state of residence, the use of a trust can assist the executor in their responsibilities. Ask your attorney for ideas and help. Never buy a trust from anyone other than an attorney licensed to practice law. Often life insurance is used to provide funds for any taxes or debts that may be due at your death, have a professional insurance review the policies, and make sure the ownership and beneficiary decisions are up to date.

  4. Create an emergency fund for situations that come up, such as a hole in your roof or an unplanned car repair. Only 28% of people have an emergency fund, according to a 2022 Bankrate.com survey.

  5. Take a close look at your investments and review them for changes. Remember, as we get older, we have less time to make up losses in our investments.

  6. Start paying down debt. Debt can be a drag on your retirement; once the debt is retired, stress becomes less, and your options for life increase.

  7. Budgeting and following a monthly plan can help. There are numerous studies about budgeting; one thing is for sure, people who follow a budget have less stress. Make a budget and stick to it.

Life should be enjoyed. Use these simple 7 financial tips as the first step to regaining financial freedom and reducing stress.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

Diversify for peace of mind in retirement planning

3-bottom, Citizen Journalism, Finances, Local Business, Senior Living, , ,

By Dave Stanley
Integrity Financial Services LLC

“Dollars saved 20 years ago have lost nearly HALF of their purchasing power. Such inflation poses a serious threat to seniors entering retirement, as well as those already in retirement.”
 

Since 2000, the US dollar has lost an incredible 44.2% of its purchasing power. Reports from the government’s Bureau of Labor Statistics (BLS), the official tracker of inflation statistics, indicate inflation may be worse than we think. Even as interest rates remain at their lowest ever, Federal Reserve policies may be pushing inflation higher.

The good news is that taking advantage of viable alternatives to traditional planning and creating a safer, more robust “hybrid” portfolio can help you avoid making those mistakes. (pxhere.com)

What does this mean for retirees and pre-retirees?

If you have an advisor or team of advisors, they most likely have mentioned the idea of “diversification” at least once. Since 2020, however, the concept of diversification has morphed from a “nice idea” into an absolute necessity. Multiple asset classes, particularly cash-flowing assets, seem to be the only cure for thriving in an increasingly volatile investing landscape. Diversification or developing so-called “hybrid” retirement strategies is essential to avoid a retiree’s most dreaded scenario: outliving their savings.

Proper diversification and risk reduction are part of well-designed, customized financial plans. Contrary to what some advisors preach, there are no shortcuts, no “one size fits all” templates to shorten the process. Portfolio allocation is unique to every individual. Some financial professionals believe the only way to ensure a diversified plan is to invest in every kind of asset.

How does one achieve diversification?

Many people don’t want to spread their cash out in multiple assets because they find it too difficult to monitor and maintain. If that is the case, retirees and those nearing retirement should consider several potential sources of income streams. Each of these assets offers different benefits and risks, and growth potential.

Social Security

Although it is a dependable income source, retirees should not regard Social Security as their sole source of retirement money. In 2020, Social Security paid out an average of $1,503, an amount that is insufficient to meet most retirees’ needs.

Fixed instruments

Debt instruments that pay fixed amounts of interest, such as bonds, are commonly used to build diverse retirement blueprints. Interest from these kinds of assets is usually paid on a semi-annual basis. The principal invested goes back to the investor upon maturity.

Stock market

While the market offers high growth potential, recent volatility makes it clear that such growth often comes with higher risks.

It’s critical when considering this option that you clarify how much risk you are willing to take and whether you have time to recover from any losses you might incur. The COVID-19 pandemic has made Wall Street’s outcomes even more unpredictable, meaning it could take years for seniors who invest too heavily in the market to recover from a downturn. Retirees could find they must withdraw more significant amounts of their cash when stock prices are down, leading to faster depletion of retirement savings.

Be sure you consult with a knowledgeable financial planner to determine whether you have the right amount of money invested in stocks.

“Safe money” vehicles 

The cornerstone of a sound retirement is safe money products such as permanent life insurance and annuities. Instead of adding these proven products as afterthoughts, building your portfolio around them makes sense. Owning risk-averse, tax-advantaged products, many of which provide guaranteed income streams, will help you in several ways.

You will be able to plan better, knowing that you have a predictable source of income. Also, unlike stocks and other assets, your principal is protected. And you have the opportunity to use these products to create a legacy for your loved ones. Safe money products like annuities and life insurance also have unique tax advantages that other cash management tools lack.

Depending on your appetite for growth and risk tolerance, there are other possibilities to diversify your retirement portfolio. Before committing to any of these more “exotic” investments, you need to spend time doing your research and due diligence. Then speak to a trusted advisor who will tell you the TRUTH about money and not just try to sell you something.

Financial mistakes can be detrimental to your happiness when you no longer work. The good news is that taking advantage of viable alternatives to traditional planning and creating a safer, more robust “hybrid” portfolio can help you avoid making those mistakes.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management  

Financial Perspective: Are you comfortable with risk you are taking?

3-bottom, Finances, Local Business, Our Cities, Senior Living, , , , ,

By Dave Stanley
Integrity Financial Service, LLC

“Risk can be a hard concept to calculate, remember, it is not a calculated risk if you haven’t calculated it.” – Dave Stanley

Photo from Pxhere.com

In the 2009-2010 NFC Championship Game, the Minnesota Vikings and the New Orleans Saints were tied 28-28 late in the fourth quarter, with the Vikings close to field goal range. Vikings quarterback Brett Favre took the snap, rolled to his right, and saw about 30 yards of open field in front of him. Even though he had injured his leg in the third quarter, all Favre had to do was lurch forward for 10 yards, fall down, and have a first-and-10 inside field goal range.

Instead, Favre reverted to what has made him a legendary hero (and sometimes a goat) many times in his Hall of Fame career. He planted his foot and threw cross-field where Tracy Porter intercepted him at the 22-yard line. At that moment, Minnesota’s fine season, Favre’s great comeback, and Vikings fans’ hope for a Super Bowl were thrown away. The Saints ran out the clock and kicked a field goal on the first possession of overtime.

What happened? In a pressure situation, with everything on the line, instead of making the high percentage play, a superstar did what felt familiar and comfortable – not what was safe.

You see the analogy coming. Quarterbacking a football team and managing your retirement portfolio are wildly different activities. It is doubtful that we will ever achieve a “Brett Favre” status within your success. Yet, a failure on our part to “read the field” could be more devastating to a family than the shock and disappointment felt by the players, coaches, and fans after that heart-breaking loss.

It is common for us as individuals to be the “quarterback.” If that’s the picture we are projecting, who is the head coach and team owner? Making all of the decisions in your planning can be very difficult, but help is often needed.

We have moments when we cannot handle any more risk (take the first down!). We know we do not want to lose another dime (just get me into a good field position!). It does not make any difference if you are convinced you can choose the stocks, funds, IPO’s, REITs, or whatever will right their portfolio and make you look like a hero. Most of us may not be ready to take that step with you.

During that game, there were millions of people watching. Some of those people were former NFL players. Some were Hall of Famers. Some were even Hall of Fame quarterbacks. But, when Favre planted his foot, there was no one on the planet more comfortable than he was. A lifetime of training, conditioning, practice, big games – even Super Bowls, had prepared him for that throw. It was the most comfortable thing in the world until Tracy Porter.

We may have the knowledge and experience but being all things in all situations just isn’t possible any longer. We all need a “Coach” to make sure we call the correct play. The disappointment over a lost opportunity while “going for field position” will be nothing compared to the fury if you try to “force a throw” they did not want you to make in the first place.

In plain English, we should never be comfortable with risk unless we know and understand all your options.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Financial Perspective: Are you planning to retire? Here are a few things to consider

3-bottom, Citizen Journalism, Finances, Local Business, Our Cities, Senior Living, , , , ,

By Dave Stanley
Integrity Financial Service, LLC

Photo from Pxhere.com

“Planning to retire? Be sure you have your exit plan in place and remember, when you retire, you never have a day off.”  Dave Stanley

Retirement is not likely to look anything like your parents’ retirement. The economic impact of government actions related to the pandemic, inflation caused by loose monetary policy, and stock market volatility have created craters in even the best-laid retirement plans. Many Americans are considering taking the money and running, opting for early retirement.

Joel a long-haul trucker, says he was initially going to wait another five years before retiring. “Dealing with a lack of parts for my trucks because of supply-chain problems, frustrating and time-consuming regulatory changes, and inflation have made my life challenging. I’m retiring now instead of later,” he explained.

Retiring early is a decision many Americans have already made, mainly because their workplaces reduced or eliminated staff. Some workers were offered attractive incentives for taking early retirement by companies feeling the pinch of COVID lockdowns.

Regardless of whether your retirement plans look solid, it’s still a great time to review your portfolio’s balance and think about for how long you want to continue working. Fortunately, the basics of creating a secure retirement remain the same, except for perhaps a few additional COVID-related caveats. Here are a few things to consider:

  1. Don’t count on working forever. Until COVID- working until you dropped seemed like a viable plan. However, results from a 2021 study by the Employee Benefits Research Institute (EBRI) confirm previous findings that indicate nearly 50% of all retirees left the workforce before the original target retirement date. This reality means that people in their 50’s and 60’s should have emergency plans solidly in place.

  2. Reduce or eliminate as much debt as you can. It’s common sense to make debt reduction a priority. You don’t want to take a credit card balance, car payment, or student loan with you when you retire, especially when retiring in an unpredictable economy.

  3. Have a health insurance strategy in place. If you find yourself retired before you are eligible for Medicare, you may have to find an affordable policy for those “gap years.” Even if you do get Medicare, you’ll need to plan for things like co-pays and uncovered expenses. One thing to consider is a health savings account, or HSA, which can help you grow a pot of emergency cash you can use when you retire. Ask your financial advisor to explain the many benefits of HSA plans and help you determine if starting one will work for you.

Finally, no matter what you decide about retiring, meet with a qualified retirement income planner. Ultimately, deciding when to retire may or may not be up to you. However, if you are thinking about leaving the workforce, you should sit down with your advisor and discuss every potential pitfall and how to avoid them.

Your advisor will suggest more strategies and recommend the right products to help you avoid running out of money when you stop working.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Local resident helps students become money smart with their own finances

3-bottom, Citizen Journalism, Local Business, Non-Profits, Our Cities, , ,

By Nathan Slauer
WKTV Community Writer

No one taught Dondrea Brown about money as a kid, and the last thing anyone around his kitchen table wanted to mention was the rising pile of bills. Growing up in a single-parent household, he admired how his mother juggled multiple jobs and raised his five siblings.

As Brown learned about money management later in life, he kept hearing people say, “I wish kids knew about this stuff, too.” While studying education at Kent State University in Ohio, he drew upon his experience of overcoming economic hardship to develop a financial literacy curriculum geared toward an audience between ten- to seventeen-years-old. 

Dondrea Brown talks to a group of students in his Young Money Finances program. (Supplied)

This curriculum now forms the basis of Young Money Finances, a nonprofit providing financial education to more than 2,000 participants across West Michigan. The fast-growing organization has garnered media attention and significant sponsorship dollars for its innovative approach to removing obstacles to financial security for young people.  Because of his work in teaching financial literacy, Brown, along with Henry Sapp from of Better Wiser Stronger and Cole Williams of the Delta Project, was recently invited to help launch the new collaborative initiative We Matter Now, which is designed to help guide and provide role models for young black and brown men.

“I want this to be the last generation to start from scratch,” Brown said. “My goal is to teach the next generation how to have increased control and awareness of their financial journey, not this perpetuated cycle of ‘oh, we didn’t know.'”

For many young people, the balancing act of caring for family members, finding a job, and keeping up with schools feels overwhelming. Those who lack a support network rely on misleading information from social media, seek instant gratification, and wind up in debt.

At Young Money Finances, participants learn how to address this balancing act by completing one or all three program paths: money management, investment, and entrepreneurship. After completing at least one of the paths, they can meet with a money mentor to discuss real-world spending and saving decisions and practice using the budgeting planner and flashcards in their money manager kits.
 

Even when sessions dive deep into complicated topics like the stock market, the team at Young Money Finances never forget to have a good time. Sessions use “fun police,” who remind instructors to use games and culturally relevant examples such as online sneaker sales when explaining complex concepts.
 

For some participants, the lessons delivered during these sessions have been life-changing. Quavon Hallman, a music enthusiast who spends his free time DJing and running sound for New City Kids and his local church, learned how to use a budget app and track travel expenses.
 

For some participants, the lessons delivered during these sessions have been life-changing. Quavon Hallman, a music enthusiast who spends his free time DJing and running sound for New City Kids and his local church, learned how to use a budget app and track travel expenses. 
 

“I was broke, but I saved up $10,000 and bought my first car,” Hallman said. “I learned the difference between getting rich quickly and building wealth.” 

Another program graduate, Thailin Johnson, found a simulation focused on building on a starting point of $500 in the bank and cutting frivolous spending habits to be helpful. The exercise taught Johnson the importance of making incremental progress toward achieving his life’s ambitions, including attending college to study sociology or international relations, leading community service projects, and traveling to foreign countries like Ghana and Israel. 
 

“Pay attention and take ownership of your money,” Johnson said. “The training taught me how to break the cycle of the poverty mindset. Young people’s money matters.” 
 

After class, Dondrea Brown sits down with a student to review the matierals. (Supplied)

Reginald Haynes, an athlete who enjoys basketball, football, and wrestling, developed an interest in videography during his time in the program. He records special events for Young Money Finances, with a highlight being a basketball game hosted in partnership with the NAACP.
 

            “I want to help pay off my mom’s house and just provide relief,” Haynes said. 

Hallman, Johnson, and Haynes represent the fulfillment of one of Young Money Finances’ goals to help program graduates find employment. Each of these individuals will receive internship credit for assisting with workshop presentations, curriculum development, and social media. 
 

The rapid expansion of Young Money Finances excites Brown, who hopes to purchase a bus for field trips and a building with simulated stock market walls and bank teller stations. 

The organization applied for and received grants from Heart of West Michigan United Way, the Grand Rapids Community Foundation, Huntington Bank, and Edward Jones. It also established partnerships with local universities, nonprofit organizations, and the Grand Rapids Public School system.
 

To learn more about Young Money Finances, visit the organization’s website or Facebook page.

Financial Perspective: Financial planning for the divorced woman: you are in control

3-bottom, Finances, How-To's, Local Business, , ,

By Dave Stanley
Integrity Financial Services, LLC

Photo from Pxhere.com

If you’re a woman, who is divorced, in the process of divorcing, or is contemplating a divorce in the near future, understanding a few key things about the financial implications of a marital dissolution will go a long way toward helping you regain the confidence you need to take control of your wealth.

After a divorce, some women, especially those whose spouses were in charge of the household finances; find themselves in the confusing and uncomfortable position of having to learn personal finance from scratch. They now have no choice except to take responsibility for earning, saving, paying bills, and investing for retirement.

It’s unfortunate that many divorced women find themselves faced with some unpleasant and unanticipated realities in their post-marriage lives. For example, women often greatly underestimate the costs involved in the divorce process itself. The website Divorcestatistics.info puts the average cost of a divorce in America at around $15,000.

Beyond the legal costs, things such as lack of financial literacy, standard office expenses, the need to hire valuation and other financial experts, and even the emotional states of the divorcing couple can contribute to the high price tag a divorce usually carries.

Divorcing women face other nasty surprises


• Health insurance costs are often more than they envisioned. Usually, divorced women will have to pay their health insurance premiums, which can be staggering. Nationally, health insurance premiums have been increasing by an average of 5% every year, for the last six years. In some states, coverage for a single woman can be more than $1,000 per month!
• They need to find a job as soon as they can. Economic necessity can mean that some divorced women will see they need to start working quickly. Those who were stay-at-home wives and mothers may not have had time to acquire new skill sets or update their existing skills, making it difficult to get hired or get better wages.
• They could find themselves homeless. In a typical divorce, the family home can be the most valuable financial asset as well as a big bone of contention. If divorcing women do want to stay in the home because they have young children or due to an emotional attachment, they may have to fight to keep it. Fighting with an ex-spouse over the home is an expensive and time-consuming process that could quickly deplete any savings and create even more stress.
• Alimony and/or child support is not what they thought it would be. For whatever reason, some divorced women overestimate how much money they feel their ex-spouse should pay in spousal or child support. The amounts arrived at during the divorce process may be much, much less than anticipated.

These and other unwelcome surprises in the aftermath of a divorce don’t have to spell disaster, though. With a little pro-active “divorce planning,” you can lessen the sting of the process and begin to regain control over your financial future.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Financial Perspectives: Is your retirement income based on guarantees or assumptions?

3-bottom, Citizen Journalism, Local Business,

By Dave Stanley
Integrity Financial Service, LLC

“Smart planning should include some of your important retirement accounts are guaranteed.” Dave Stanley

When planning retirement, do you depend on projections based on future conditions, or do you plan your retirement based on guarantees? The answer may surprise you; both can be the correct answer. It all depends on your situation and what “time” period you are focusing on retirement.

Photo with pxhere.com

Let’s start with a projection or estimate of future value planning. If you base your future retirement income solely on US (or foreign) stocks, the volatility factor must be included. How will your chosen stocks perform over some time, and how easily can they convert to a retirement account to fund your desired income level? S0 much about a stock’s performance can depend on outside influences such as the overall world economy, the valuation of the dollar, inflation or deflation, and a third parties (analysis) view of your stock’s profit results. A group of top stock strategists can predict anything from a single-digit loss to a double-digit gain.

  • How do you plan for your future retirement income?
  • Whom do you trust?
  • How do you estimate future market values?

Experimenting with discretionary funds is one thing, but significant retirement funds could be a poor choice. Once again, it all depends on your situation.

Many people lose sight of the actual goal of retirement planning, which in its most basic form is to make your retirement income lasts as long as we do. This seems like a relatively straightforward objective, so why do so many people start with a retirement income strategy that leaves so much to chance? Let’s consider the choices again by category; one is an estimate, and the other is a guarantee. Depending on your asset values and your desired lifestyle, there can be room for both types of planning. The key is that essential expenses must be covered first and fully funded by lifetime income sources.

You’ll enjoy some significant advantages if your lifetime sources of income are sufficient to fund essential lifestyle expenses. The question and problem are the same: How do you do it? First on the list is to avoid market volatility risk and accept a reasonable rate of return.

New studies show if given a choice, most people would choose safe, secure income over yields. When the funds have to be there, and the income is essential, safety becomes the first decision. Having this sort of income planning eliminates the possibility of outliving your source of income, or what is called longevity risk. Knowing that your necessary expenses are covered with a guaranteed source of income is a great comfort and sense of freedom to enjoy your retirement years, no matter how long you live.

Given all the uncertainties, the unpredictable outcomes, and the unending list of “what-ifs” facing investors, it’s no surprise that drawing an accurate road map to where financial markets are headed is no easy task. Even for the Wall Street players who admit there are too many variables that are beyond our capabilities to absorb and forecast. That is precisely why it’s a top priority for those retired or about to retire to understand the risk they face without having put into place a guaranteed retirement income solution to alleviate the risk of running out of money.

Let’s take a look at the state of America’s retirement system. A generation ago, pension plans were offered to more than four out of five private-sector workers—today, it’s fewer than one in three. An employee has mainly replaced pensions paid plans like 401(k)s, 403(b)s, or 457s. Expenses built into many of these plans make it difficult to earn the needed money to fund basic retirement needs. The shortcomings of this approach are evident in its lack of guarantees—an essential factor when you consider the current historical level of market volatility. Plus, new insight into how fees are charged and the actual cost of owning these plans have come under regulatory scrutiny.

Thankfully, solutions exist that can potentially increase your income and generate a lifetime pension payout to both spouses with the benefits of protection and guarantees.

We use the only financial instrument to provide a guaranteed income that you cannot outlive and maintain control of your money with upside potential and no downside risk. How can this be accomplished?

Naturally, by handing the risk of managing your significant retirement funds to a risk bearer. An insurance company is a risk bearer.

Since the Presbyterian Church first invented annuities nearly 300 years ago, annuities have been the cornerstone of millions of retirees’ significant retirement income. With the evolution of new and dynamic products, a guaranteed income with annual crediting in the 4-7% range is fully available.

Removing risk from retirement planning by allowing an insurance company to manage your retirement accounts can provide you with a stress-free and secure future.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

Financial Perspectives: Labels can lead to retirement planning bias by advisors

3-bottom, Local Business, , ,

By Dave Stanley
Integrity Financial Service, LLC

“Don’t let your financial advisor put you in a ‘box.’ You need to have your plan customized for your specific situation.”  Dave Stanley

Social science researchers and best-selling authors Neil Howe and William Strauss were among the first to track and qualify American generations. In their famous book, “Generations,” Strauss and Howe introduced the concepts of “Millenials” and “Gen-x” into the modern vocabulary. Their new generational theory attempted to explain various societal shifts in terms of when a person was born.

Photo from Pxhere.com

The popularity of “Generations” led to widespread acceptance of the idea that it’s OK to overlook the complexities of human life, ignore diversity, and reduce people to one variable (birth year).

Unfortunately, this tendency to label retirees and pre-retirees as “Boomers,” “Millenials,” and Gen-Xers has crept into financial services and retirement planning and is responsible for a lot of bad money advice.

Like an old newspaper horoscope, generational theory lumps everyone born within an arbitrarily designated period (1961-1981 is Gen-x, according to Strauss and Howe.) into one broad category.

“You are a Millennial. You are lazy, entitled, and easily triggered.” “You are a Boomer. You hate risk and change.” “You are a Gen-Xer; you are a self-sufficient critical thinker.” Financial advisors who use these types of oversimplifications as guideposts may not bother to see beyond the labels.

For example, Harry, who was born in 1946, falls squarely into the Boomer category. His advisor believes that because Harry is a Baby Boomer, he is challenged by technology and won’t be open to virtual meetings, video training, online client portals, or other modern tools.

This advisor also buys into the stereotype that all Boomers are risk-averse, so he aggressively de-risks Harry’s retirement portfolio without bothering to discover more about his client. He doesn’t even ask Harry his thoughts on risk and investing or if he’d like to do more business online because he assumes that all Boomers are the same.

Generational theory in financial services is dangerous because its assumptions influence advisors to take paths that may or may not be in their clients’ best interests. Generational theory can also prevent your advisor from developing a deeper relationship with you and discovering your unique connection to money, your retirement goals, and your true risk tolerance.

Perhaps your advisor builds you a more generic financial plan or doesn’t offer you certain products because they think you hate risk. It could be because they put you into a generational box, ignoring the diverse environments and upbringing which have shaped how you relate to money. You may feel as if the advisor isn’t listening to you or is refusing to take you seriously.

Suppose you suspect your retirement and income planner may be buying into generational stereotypes. In that case, the best thing to do is ask the advisor to explain their process and how they developed it. Having an open dialogue with your advisor will help ensure they listen to your concerns and offer solutions that align with your attitudes and desires.

The bottom line:

Many contemporary sociologists feel that generational thinking is invalid pseudoscience. Unfortunately, though, the generational theory continues to influence financial services marketing. When looking for an advisor, strive to find someone who avoids generational stereotypes and connects with various people across multiple demographics. Your financial future is too critical to trust someone who wants to keep you in a box.

Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

Financial Perspective: Seven Financial Tips to Help you Enjoy Life and Reduce Stress

3-bottom, Citizen Journalism, Education, Local Business, Senior Living, , ,
Do you want to relax in your retirement, then get serious about it now. (Pxhere.com)

By Dave Stanley
Integrity Financial Service, LLC

“Use these tips to reduce stress and change your focus on life.” Dave Stanley

1. Get serious about your retirement: If your employer matches contributions for your 401(k), you need to take advantage and max out your contribution. Your employer’s share is “house money,” which means using their contribution as part of your 401(k) plan as an employee benefit. Many 401(k) plans allow for conversion to a guaranteed retirement income, which can be used as a lifetime benefit. Ask your benefits manager to see if it is included in your plan. You also need to plan at what age you would like to retire. If you have had a loss in investment returns in your 401(k), ask yourself how I can gain that back? Your asset allocation in your 401(k) can be changed as you get closer to retirement age. Most plans allow you to move the money as a rollover to a self-directed IRA, which provides the option of using an annuity with an “Income Rider” attached to provide desired guarantees. If you have an IRA and are not contributing annually, start this year, contributions made before April can be deducted on the previous year’s income.

2. Even if you do not have a will, you do. You have two choices, either you decide what will happen to your estate OR your state of residence will decide for you after you pass away. If you don’t have a will, see an attorney and create one, and if you have a current will, make sure it is up to date.

3. Name an executor for your estate. Use caution in the selection and make sure you have asked the executor for permission to use them. Based on the valuation of your estate and your state of residence, the use of a trust can assist the executor in their responsibilities. Ask your attorney for ideas and help. Never buy a trust from anyone other than an attorney licensed to practice law. Often life insurance is used to provide funds for any taxes or debts that may be due at your death, have an insurance professional review the policies, and make sure the ownership and beneficiary decisions are up to date.

4. Create an emergency fund for situations that come up, such as a hole in your roof or an unplanned car repair. Only 40 percent of Americans could pay an unexpected $1,000 expense, such as a car repair or emergency room visit, from savings. That figure is consistent with the range of 37 to 41% seen in surveys from 2014 through 2018. More than a third would need to borrow the money in some way – either with a credit card, personal loan or from family or friends. Another 14% would reduce spending on other things, while 10% would either figure out “something else” or don’t know what they would do. www.bankrate.com.

5. Take a close look at your investments and review them for changes. Remember, as we get older, we have less time to make up losses in our investments and as you age, your investment horizon normally shrinks.

6. Start paying down debt. Debt can be a drag on your retirement, and once the debt is retired, stress becomes less, and your options for life increase.

7. Budgeting and following a monthly plan can help. There are numerous studies about budgeting; one thing is for sure, people who have a budget and follow it have less stress. Make a budget and stick to it.

Life should be enjoyed. Use thesesimple seven financial tips as the first step to regaining financial freedom and reducing stress.


Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management.

Financial Perspectives: Should you have debt when you retire?

3-bottom, Citizen Journalism, Education, How-To's, Local Business, Senior Living, ,

By Dave Stanley
Integrity Financial Service, LLC

“Obligating yourself with debt is borrowing against your future income, be careful, that obligation can cause big problems when you retire.”  Dave Stanley

Unless your parents made some weird deal with the hospital, you were probably born kicking and crying but debt-free. In a perfect universe, you would have remained that way, spending most of your life as solvent as possible. Then you would skip blissfully into retirement without being shackled to a boatload of debt. You’d have a million in your 401k, maxed out life insurance policies, and guaranteed income from annuities.

The reality, however, is a lot different for most pre-retirees and retirees. Life has its’ own plans, and sometimes it goes off the rails a bit. Even the best-planned people can end up underwater, sideways, and paying lots of unexpected bills. According to financial researchers, more than 41 % of Boomer retirees have credit card debt, and another 35% have car loans with balances over $14,000. Many older retirees also carry debt into retirement, although the number is substantially less.

 

How can debt impact retirement?

You may be thinking, “So, why is having debt so terrible? I have cash flow from my retirement accounts that I can use to pay it. Is it that much of a problem?

The answer to those questions, unfortunately, is “Yes.” Many retirees discover that having a lot of debt when you no longer work means having a more stressful, hand-to-mouth existence that could last 30 or more years after leaving the workplace.

Even worse, debt might be the tipping point that causes some retirees to run out of money long before they die. Having a lot of debt significantly constricts cash flow, making it difficult, if not impossible, to maintain emergency funds, pay for vacations and leisure activities, and pay for out-of-pocket health care costs and preventative medicine.

While many who are planning their retirements believe that having some money in the market will offset some of the problems created by debt, they forget that even historic market gains cannot offset high credit card rates. Often, we forget about the toll that anxiety over finances takes on our health and emotional well-being. Having debt hanging over one’s head can also cause various mental and physical ailments that could reduce life expectancy or require nursing home care. 


How much debt is acceptable?

Those close to retirement are probably wondering how much debt they can bring with them and not feel too impacted. There are rules of thumb in the financial services industry that say you should have no more than 28% of your pre-tax household income servicing principle, insurance, interest, and taxes on a mortgage and no more than 36% of that income to consumer debt payments.

 

That’s while you are still drawing a paycheck.

In my opinion, when you retire, the numbers should be much, much more conservative. If you find yourself rapidly nearing retirement and saddled with debt, you may want to consider other options. To pay off debt and still keep saving for retirement, you might try working a few years past your ideal retirement age, getting a second job or part-time “gig,” selling off things you don’t want or need, or perhaps negotiating lower interest rates on loans.

In most cases, you want to pay the high-interest debts first and not worry as much about the mortgage, especially if you have a reasonable fixed rate and continue to get the mortgage interest tax deduction. If you don’t have an ideal rate, consider refinancing to shorter terms or lower interest rates.


The final word:

Because individual financial situations differ, the amounts of debt that can potentially impact retirements will be different for everyone. In general, though, it’s a good idea to pay off as many debts as possible before you decide to retire. If you are already retired or are about to, consult a competent retirement specialist to find debt reduction strategies that are best for you.


Dave Stanley is the host of Safe Money Radio WOOD1300 AM, 106.9 FM and a Financial Advisor and Writer at Integrity Financial Service, LLC, Grandville, MI 49418, Telephone 616-719-1979 or  Register for Dave’s FREE Newsletter at 888-998-3463  or click this link:  Dave Stanley Newsletter – Annuity.com  Dave is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management

The effects of financial infidelity

3-bottom, Citizen Journalism,
Courtesy Michigan State University Extension

By Scott Matteson, Michigan State University Extension


“To have and to hold from this day forward, for better or for worse, for richer, for poorer, in sickness and in health, to love and to cherish, from this day forward until death do us part.”


Most of you who are married probably read the first few words and recognized them right away as part of the traditional vows used during a wedding ceremony. What do the words have to do with money? There’s the for richer, for poorer aspect but maybe we should add, instead of death do us part, until trust issues do us part.


According to a survey conducted by the National Endowment for Financial Education (NEFE) in cooperation with Forbes and conducted by Harris Interactive two in five Americans admitted to financial deception with partners. In other words approximately 41 percent of people who combined their money with their partners have been financially unfaithful to that partner. The best term to describe the practice is financial infidelity.


Financial infidelity occurs when couples with shared finances lie to one another. If you have ever hidden a minor purchase, financial statements or bills from your partner the act results in being financially unfaithful. According to the survey, 75 percent said financial infidelity affected their relationship.


Fortunately, financial infidelity is reversible. Talk honestly, become transparent. You will have to come to the point of full disclosure with your family financials and begin to work through the issues and regain any lost trust. Below are some suggestions on how to get started. 

  1. Have an open discussion about your finances with your partner and come clean on all deceptive practices.
  2. Discuss needs vs. wants and the whys of overspending
  3. Track your spending and develop a spending plan
  4. Create smart goals to work toward common ground and eliminate outstanding debt
  5. Keep on talking. Don’t shut down the lines of communication.

This process will help partners to understand each other’s money values in addition to preventing a majority of conflicts that can arise regarding family finances. It is important to listen to each family members concern so everyone is on the same page and feels ownership to the plan moving forward. Revisit your plan periodically and decide together if revisions are necessary. 


For additional information visit the National Endowment for Financial Education. Michigan State University Extension offers financial management and home ownership education classes.


This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).






Money talks that you should be having with your aging parents

3-bottom, Citizen Journalism, Community Health, How-To's, Senior Living, , ,
Courtesy Michigan State University Extension

By Scott Matteson, Michigan State University Extension


“Silence is golden” or so the saying goes, but is it always a good idea? Silence is not golden when it comes to the subject of your parents’ living expenses, healthcare and elder care costs. According to the Fidelity Intra-family Generational Finance Study (FIGS), 4 out of 10 families have not had a conversation with their elderly parents about living expenses, healthcare, and elder care costs. One reason, as stated in the study, is that parents worry that their adult children are counting too much on a future inheritance, while children don’t want to upset their parents.


Because of this reasoning, the subject of money becomes taboo and needed conversations are not happening.


According to the FIGS study, children and parents didn’t believe having a conversation about living expenses, healthcare, and retirement was difficult to start. The difficulty comes with the depth and the detail of the conversation and when to start having the conversations. The important thing to remember is don’t wait until an emergency to have the conversation.


Below is a list of topics and ages when discussing retirement issues that can help avoid future emergency conversations:

Age 50AARP Eligible, Senior Discount Programs, Catch up contributions of $1,000 for IRA and $5,500 for 401k, 403b and TSP
Age 55401k or retirement withdrawals without 10 percent early penalty
Age 59 ½Take from any retirement account without 10 percent early penalty including Roth IRA, as long as it’s been held for 5 years.
Age 62Earliest age to collect Social Security. Eligible for reverse mortgages.
Age 65Eligible for Medicare (Apply 3 months before 65th birthday) – otherwise Medicare part B and prescription drug coverage part D may cost more money
Age 66Full retirement if born between 1943-1954 Can collect Social Security without reduction and no offset on amounts earned.
Age 70Maximum Social Security accrual – time to start.
Age 70 ½IRA and 401k contributions must stop. Must begin taking required minimum distributions


Before beginning a conversation on a sensitive subject such as money, you have to realize that the conversation is not a democracy; your parents have made decisions about their money all of their life and they are not about to stop now. Remember, it is your parents’ money and their decision. Below are 10 suggestions to aid in having a conversation concerning retirement, living expenses, healthcare, and elder care.

  1. Start Discussions Early. Do not think that it will only take one talk. The earlier you begin discussions, the more time will be on your side and the easier the discussions will become.
  2. Include all family members. Make sure all siblings are included in the discussions. This way, everyone in the immediate family is fully aware of all decisions made and are not getting information passed on to them that may or may not be accurate.
  3. Explain the purpose of your conversation. Communication is integral. Explain your concerns about how your parents will be cared for and how they feel about their financial future.
  4. Understand your parents’ need to control their own lives. The conversation is not about preserving your inheritance. It is about your parent’s right to be able to live their life how they want to live it.
  5. Agree to disagree. It is okay to disagree; the conversation is not about who is right or who is wrong.
  6. Use good communication skills. Listen to understand not to reply. If you don’t understand, then ask for clarification.
  7. Ask about records and documentation. Do not be afraid to ask where pertinent records are located and who would need to be contacted concerning them are.
  8. Provide information. If you come across information you deem to be useful in helping to make appropriate decisions, provide it to everyone involved in your ongoing discussions.
  9. Re-evaluate if things aren’t working well. Do not be afraid to take some steps backwards if conversations are not being productive.
  10. Treat your parents with respect. Always respect your parent’s wishes regarding decisions concerning their living expenses, healthcare and elder care.

For more in depth information about talking with aging parents about retirement please click on the following links: Aging and Money and When to Start Receiving Retirement Benefits. Additional information can also be found here.


This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).



How Do You Know When It’s Time to Retire?

3-bottom, Citizen Journalism, Community Health, Senior Living, , , , , ,

Courtesy Vista Springs Assisted Living

 

By Vista Springs Assisted Living

 

The Baby Boomer generation officially arrived on the doorstep of retirement age back in 2011, and an estimated 10,000 people are now retiring daily. But while 65 is understood to be the age of retirement, many aging adults are choosing to delay retirement living. Given the unclear nature of retirement age, many people are struggling with the question of when to make the leap. Here are five factors to consider when deciding when to retire:

1. Your Health

Taking a hard, honest look at your health can be difficult, but knowing exactly what is happening with your body and mind should be a priority when considering retirement. If you’re hale and hearty, working for a few more years could mean more savings for a long and enjoyable retirement, but if your health is less than ideal, it may be worth it to retire earlier than later in order to get started on all the experiences you’ve put off until you had the time. In addition, keep in mind the health of your spouse, friends, and family members: you may not want to work through their healthy years, regardless of how much longer you’re able to.

2. Your Finances

While some experts are questioning the four percent rule, and it may not apply to some people’s specific situations, it still offers a basic guideline for how to plan your finances for retirement. The four percent rule states that in your first year of retirement, you should budget 4% of your savings for your annual spend; for every subsequent year, budget 4% with inflation factored in. You should also include any investments into your calculations, and keep a sharp eye on the markets – investment returns can be critical during the first ten years of retirement.

3. Healthcare Costs

$275,000: that’s Fidelity’s estimate for how much a retired couple will spend on healthcare over the course of their retirement. While that number may be shocking, it’s also a very real part of the costs of retirement, and something you need to plan for. Ensuring that you have the insurance and the savings to deal with general health care as well as any health issues that may arise is crucial to choosing a time to retire.

4. Social Security Benefits

Another factor to consider is the possibility of social security benefits. If you were born after 1943, you can expect an eight percent increase in benefits for each year you work after 65; if you choose to retire earlier, benefits are reduced. Increases cease at age 70, so waiting to claim benefits until then would yield maximum benefits. But be strategic: depending on other factors retiring at 70 could be unrealistic or even impossible.

5. Your Family

While the decision of when to retire is highly personal, you should also factor in the important relationships in your life. Be sure to have clear and honest discussions with your spouse or significant other as to what you want your retirement to look like. Retirement living can take the shape of traveling or relaxing, being with family or spending time on personal goals, and if you and your spouse have different visions of retirement, you may want more time for planning.

 

Your health, personal finances, investments, and relationships all factor into when you retire, and the truth is that there’s no longer a single age at which people can expect to retire. Talk with your family, doctors, and financial advisors on what time works best for you.

 

Reprinted with permission from Vista Springs Assisted Living.

Getting Married? 8 Tips for Newlyweds on Combining Finances

3-bottom, Citizen Journalism, Education, How-To's, , , , , , , , , , ,

By Brenda Long, Michigan State University Extension

 

Getting married? 83 percent of couples fight about money, according to Debt Reduction Services. Making household finances work is one way newlyweds can help make their marriage work.  Both should agree on how to coordinate household accounts and debt by having constructive conversations. Even though this is not the most romantic topic, it will contribute to a happier marriage.

 

Once the honeymoon is over, focus some attention on your shared financial lives. The Building MI Financial Future Financial Toolkit from the Michigan Department of Insurance and Financial Services offers these tips:

  • Request a free copy of your credit reports at annualcreditreport.com. This information tells you about your use, management and payment history of loans and financial obligations. You might also get credit score estimates from FICO. Then you can objectively analyze the strengths and any weaknesses in the reports, including high debt amounts or discipline about making timely payments.
  • List all sources of income and expenses. Using all pay stubs, account statements, monthly bills and debt obligations, disclose everything financial to each other. Then you can make a monthly spending plan for handling monthly expenses and establish a debt prevention and/or elimination plan.
  • Open a joint checking account to pay for household expenses. Pay for all marriage-related bills, including housing, food, necessary clothing, vacation, transportation, cell phones, etc. If neither of you had credit-related problems, both names can be on the account. If one person has poor credit, you may choose to have your account in only one name. Consider automating your household bills payments, plus setting up separate accounts for each of your savings goals.
  • Decide who is going to pay for what.
    • Option 1: Combine incomes and consider all expenses and debts as one.
    • Option 2: Assign certain payments to one or the other. This might depend on who had loan obligations prior to the marriage.
    • Option 3: Pay ongoing expenses based on the percentage of income contributed.
  • Discuss the relationship each of you has with money. Is one of you a saver and one a spender? Talk about the potential consequences and agree on a workable solution.
  • Consider opening a savings account for an “emergency or rainy day fund”. Unplanned emergencies happen.  As a couple, you should have a goal about how much is enough for unexpected expenses or emergencies. In addition, the recommendation is to set aside several months of earned income to prepare for an unplanned loss of future income. Decide together on a monthly amount to save which fits into your budget and is sustainable.
    • Tip: While many couples choose to pursue a joint checking account, this method may not work for all couples. Whether you have a joint account or separate accounts to pay household expenses, the key is to communicate, have a bill payment plan, and pay bills on time.
  • Update your beneficiaries. Check any employer-sponsored retirement plan, IRAs, annuities, and life insurance policies to update the beneficiary information.
  • Take care of your future selves now. Contribute to your employer-sponsored retirement plan and/or IRA. The recommendation is 15 percent of your combined gross pay or the maximum amount allowed by the IRS. This is a great time to talk about your retirement goals that will require financial planning and strategies.  Further, decide on a homeownership plan including thinking about if, where and when to buy a home and its cost. Discuss any education and professional training plans.

The first year of marriage typically includes many lifestyle adjustments. Setting goals and planning to save are best practices to help make your financial hopes and dreams come true. Having a spending plan shows your sense of control and willingness to set aside now for the future.  Discussing and agreeing on financial adjustments should make your financial lives go smoother. Financial planning takes time, patience, and discipline.  Find more information about spending plans, reasons for and ways to save, credit and debt, homeownership, and many other topics at MIMoneyHealth.org.

 

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://bit.ly/MSUENews. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).