Archive for the ‘keeping your egg warm’ Category
March 5th, 2010 | 
Author: Asset allocation is crucial for the upkeep of one’s wealth. It starts with the intention of creating a well-diversified portfolio and consists of dividing the investments with foresight among several different categories of all assets such as real estate, stocks, bonds, and cash. To increase wealth, all the categories have one precept in common, Buy low; sell high. To keep the wealth, however, one will need to diversify wisely.
Stocks are the most volatile of all the categories with unbearable losses at times, but they may also offer the highest returns. Picking diverse groups of stocks may somewhat limit the losses, although this may mean sacrificing big gains. Bonds still offer good returns even if not as high as stocks, but they may be slightly safer. Cash and cash equivalents of savings are savings accounts, certificates of deposits known as CDs, money market accounts, and Treasurys that come as bills, bonds, and notes, according to the time frames they are issued in. Unless inflation is in the horizon, with cash and cash equivalents, the nest egg will not lose its value, but it will not gain much either.
Asset allocation depends first on the projected time left in one’s life, in ratio to risk toleration. This is measured by the years left to retirement and the earning and saving ability in those years. For example, if a person has about thirty years to retirement, he may be able to take more risks, since the money making ability and keeping on building a nest egg will be there until retirement. On the other hand, another person retiring in two years will need to reduce the risks while distributing his assets for maximum return.
Second, adjusting and readjusting the assets to the markets of asset categories are also important. During the height of the real estate boom, people who bought highly expensive condos and other real estate lost a lot of wealth when the bust suddenly came about. Then, those who put their entire wealth in stocks lost a lot when a crash or a recession occurred.
If one portion of the portfolio grows much faster or loses more than others, some investors prefer to rebalance by selling off investments in bulkier assets and using that money for their other low-keyed but safer assets and for purchasing new investments. If the investor can make continuous contributions to his portfolio, he may also consider shifting the weight of his investments from heavier to lighter portions to provide a balance that would protect him against future risks. Reevaluating one’s investment at least once every quarter is good practice. While doing that, it is also important to take into account the transaction fees and tax consequences.
Once serious investment strategies take hold, the investor may want to acquire the services of a financial professional or group. Even then, the investor should keep on top of what is happening with his savings and investments through publications and serious websites. Should a problem occur with a financial professional, Securities and Exchange commission’s Complaint Center can be brought in to help.
To sum up, determining one’s long-term goals, knowing the specific categories to invest in, measuring the risk-versus-gain ratios correctly, and being ready to revise and reallocate the investment plan will succeed in the accumulation and protection of overall wealth.
This article has been submitted by Joy Cagil in affiliation with http://www.StockBee.Com/ which is a free online stock ticker quiz.
Article Source: The Ultimate Protection Against the Loss of The Nest Egg – Asset Allocation
Posted in 
Health Savings Accounts (HSAs) combine lower cost premiums, higher deductibles, and a tax favored savings account. With an HSA you get a tax deduction on the money that you put into the HSA account and your money grows tax deferred in your account. You spend the savings, tax free to help pay your deductible or to pay for qualified medical care (which often includes prescriptions, vision, and dental care).
The money that is not used at the end of the year will continue to accumulate over the years. With many HSAs, you will earn interest on your savings beginning with the first dollar deposited. Clients that may be interested in HSAs are those who want more control over how their healthcare dollars are spent; families interested in one calendar year deductible per family; and those interested in trading low deductible health insurance for a higher deductible plan to save money on premiums and taxes. Below is some basic HSA tax information:
- Eligibility - Those covered by a qualified high deductible health insurance plan and are not covered by any other health insurance or enrolled in Medicare, and cannot be declared a dependent on another person’s tax return.
- HSA Contributions – 100% tax deductible from gross income.
- Qualified Medical Withdraws – Tax Free.
- Interest Earned – Tax deferred; if used for qualified medical expenses; tax free
- Non-Medical Withdraws – Income Tax + 10% penalty tax (under age 65); income tax only (for age 65 and older).
- Death, Disability – Income Tax only – no penalty.
High deductible plans usually accompany the HSA. This is the actual major medical insurance that the client purchases. As a health insurance agent you want to make sure a high deductible plan and HSA is appropriate for your clients. Be sure to explain all of the tax implications and deductibles with your clients.
Those who may benefit from a high deductible plan are those who are willing to take financial responsibility for routine healthcare expenses in exchange for a lower premium; those seeking lower cost protection from unexpected accidents and illness; and those who retire early and need a bridge to Medicare.
Health insurance agents may also want to consider Short-Term coverage to bridge client’s gap in health insurance coverage. These types of plans are becoming more popular and you can create a niche in your business by locating clients with this need. Good candidates for this type of insurance are those who:
- Recently lost coverage due to a job loss
- Are students no longer eligible for coverage under their parent’s plan
- Are seasonal workers
- Retired and are waiting Medicare eligibility
Get more information about niche markets and increase your sales: healthinsuranceagenthelper.com
Article Source: Find Your Niche Through Health Savings Accounts
The philosophy of planning for the future has always confounded me. It seems to me there are two very basic world views in conflict when this issue is raised. One world view is the responsible response: the “planning for the future” type of person. This type of person seems to think he will live to be at least 100 years old, and that everything he refrains from enjoying, doing, or buying now will pay off as millions of dollars in that inevitable and very real place called the future.
Then there is that other sort of person that believes that nothing can be as wonderful as the fun that a person can have right now. Since I can’t “take it with me”, as they say, I might as well “eat, drink and be merry” right now.
I myself don’t adhere to either of these points of view. I have a tendency towards not missing opportunities today that might never come again, such as spending money, perhaps more than is wise, on a meaningful activity with my family which will become a wonderful memory to cherish for years to come. In many ways this type of spending is actually a type of investing; in the future of the health of my family. The relationships we develop with our loved ones must be worked on now, and not at some obscure future time. Remember Harry Chapin’s famous song “Cat’s Cradle?” This song illustrated the well-known “tomorrow” syndrome in a poignant and heartbreaking way. The mistake we all have a tendency to make when we tell our children “we’ll get together when I have time.”
Of course, on the other hand, quality time with our families does not always require large sums of money. Sometimes the inexpensive or free moments can be the best. But sometimes a really great time for everyone might require some money spent, and if so, sometimes it might be wise to say, “the future is now.”
Then again, if we are lucky, and we live a long time, long enough to retire and do some of the things we just couldn’t do when we were working 40 or more hours each week; when our children needed a lot of tending to and all the other things that get in the way of traveling, hobbies we love, enjoying long walks, or whatever it may be, it might be nice to have a bit of money to enjoy that time without worry.
So in conclusion it appears to me that the correct approach to this dilemma is to strive towards a responsible savings plan to ensure a worry-free and active retirement, while at the same time keeping our options open for some “irresponsible” spending today, while we still have our good health and our young children around to enjoy ourselves together with them. It is true you can’t take it with you, but it is also true that one day the future will be here and you will be happy that you were prepared and ready to meet it in style.
Emily Salisbury, the author of this article, writes about crafts, cooking, and home decorating. Her creative skills are far more developed than her financial skills, so she turns to professionals for investment advice.
Putting together a savings plan she could live with wasn’t easy, so Emily looked for a reliable investment adviser. Harry Rady of Rady Asset Management came highly recommended and helped her to make a plan that lets her enjoy her life now while planning for a secure retirement.
Article Source: Saving For the Future While You Enjoy the Present
We all know that we should save money. But something so easy to say can be quite difficult to actually do.
Saving money is the basis of building your financial future. However, many consumers are putting it off one more day. Those days turn quickly into years of lost money. Without savings, the chances of meeting long-term financial goals and achieving financial security are quite miniscule.
In order to save money, you have to control your finances. Saving has nothing to do with how much you make. It has everything to do with how you control your money. If you have lots of credit card debt and live paycheck to paycheck, you are not in control of your money. And you aren’t saving for the future either.
You have to spend less and save more. The two are tied together. In order to save, you have to start spending less.
And it all really isn’t that difficult if you just start doing it.
First, sit down and write down your financial goals. Just ask yourself what you want from your money. Perhaps you would like to have a down payment for your first home. Maybe you need a new car. Make long-term goals, such as retirement, and short-term goals, such as new living room furniture.
Give each goal a dollar amount and a time frame. In order to save, you have to know what you are saving for. You have to have a reason to put your money aside.
You will need to set up a separate savings account. You probably know that leaving the money in your checking simply won’t work — you will spend it. Have a savings account that you can easily deposit or transfer money into. Many banks will set up an automatic withdrawal to your savings each month. This is a easy way to set it and forget it. It is paid just like any other bill.
Over time, you will see your money start to grow. This is rewarding and exciting. Most people become motivated to save even more. Saving and investing can become addicting in a good way.
You will find that a written budget is almost essential for saving money. You need to know where your money is going in order to make changes to the way you spend. A budget not only tells you where you are spending, but it can help you plan how you spend. Include into your budget a debt reduction plan, and your budget will make the most of your dollars. Budgeting is simple and doesn’t require you to sacrifice your entire lifestyle. It is just a plan to get where you are going.
If you do have a lot of credit card debt, you should focus spending your saving money on eliminating that debt. It would be wise to put a small amount aside for emergencies, but the vast majority of the money you are saving right now needs to be going to your debt. The reason why is simple. Why pay 20% interest on a credit card debt when your savings are earning 2% to 10% in interest. You are spending more than necessary. Wipe out that credit card debt first. It will save you more in the long run.
A lot of people really boost their savings by putting their unexpected money into their savings accounts. Your bonuses, raises, tax refunds and overtime can really pump up your savings. You aren’t having to spend even less or cut back more, but you are seeing your account balance rise.
There is no real secret to saving money. You simply have to start doing it. That is often the hardest thing — the first step. But once you see your finances begin to change and the interest start working for you, you will be hooked on saving for your future.
Martin Lukac represents RateTake.com Mortgage mortgage marketplace. RateTake matches consumers with multiple lenders offering low mortgage rates from our network of accredited lenders.
Article Source: Saving For Your Future
Money is a critical component in every person’s life. The handling of money requires delicate care because there are just too many demands in our lives that require us to part with money, but the fact is we have a limited amount of it. The measure of your financial success lies in your ability to save. Saving enables wealth accumulation and thus, the ability to enjoy a better lifestyle. Money savings tips are abundant. What may be challenging is to apply them diligently. Described below are ways to enhance your money saving plans and build your wealth nest.
Differentiate “need” and “want” clearly. Many people mistake a want for a need and the consequences are often obvious; they claim not knowing where their money went at the end of the day. Yes, you will need food; but do you need to indulge in that expensive steak? Allocate a monthly amount to save aside. Assume that this saving is your future investment and should never be moved unless of emergency. Again, what constitutes emergency varies form one person to another. Essentially, you need high self-discipline to do well in managing your savings.
You should also practice prudent shopping, creating a shopping list to prevent impulse purchases. With the abundance of healthy food choice available, there is no excuse for you to consume unhealthy food products because you can get better choices with the same amount of money. Learn to cut back on convenience products- they are just depleting your financial resources without a real cause. When shopping, always care to find out the price of products and make comparison. You can also learn to challenge yourself to create your own gifts and DIY products.
These money saving tips are basic ideas. You should cultivate a healthy money saving habit to enable you to live a healthier and better lifestyle.
I’d like to share cool websites with more tips on topics like money saving tips and money out of my 401k. Visit for more information.
Article Source: Money Saving Tips For a Better Future
If you’re like me, you’re just starting to become financially stable for the first time. You have a little bit of extra cash set aside in savings, but it’s not enough to be able to “play” with it in the stock market. You want to find a way to make your little nest egg get a higher return than if it is simply sitting in a savings account, but you need a safe and secure way to invest.
An excellent way to combine a high rate of return and a high degree of security is by investing in mutual funds. In short, a mutual fund is a stock portfolio that someone else manages for you, in which your money is in effect distributed over a wide range of different stocks, bonds, and other investments. Many fund managers write mutual fund newsletters for their unit holders helping to explain their investment decisions.
Because professionals manage your mutual fund for you, you don’t have to worry about making a mistake. And because a mutual fund is a form of distributed investment, the risks to you are very low – that is, even if an individual stock or investment does badly, the other stocks or investments in the portfolio will tend to balance it out, making you less likely to lose money.
You can find out more about mutual fund planning by contacting an investment specialist. He or she can give you the information you need, as well as help manage your mutual fund for you. By working with an investment specialist, you will find out exactly how easy it is to make money and protect your investment – just sit back, and let him or her do all the work for you!
If you do decide to go the mutual fund route, you may wish to purchase a subscription to a mutual fund newsletter. A mutual fund newsletter is a weekly digest that contains all the information you need to know about the state of the market, the various types of mutual fund, and investment-related current events. A mutual fund newsletter is vital if you wish to stay informed and on top of your game, even if you do leave most of the more difficult work to your investment specialist.
In today’s rapidly fluctuating market and unstable political and economic climate, it makes sense to keep your money in an investment that offers a high rate of return, and is safe against market forces. A mutual fund is an excellent choice for your little nest egg – to help it grow into what will one day become your great big nest egg.
Visit us for more information on top 10 large cap funds, how do mutual funds work and mutual fund selection.
Article Source: Mutual Fund Newsletter – Protecting Your Nest Egg