Worrying about Long-Term Care? Should you buy insurance now or roll take your chances?

The traditional approach – take out a conventional LTC policy, paying a premium of about $7,600 a year with money that would otherwise go into their retirement accounts. The policy would provide a $5,000 monthly benefit that would grow by inflation at a rare of 3 percent annually.

Pro: Thanks to the policy’s inflation protection, that $5,000 monthly benefit would reach $10,000 in 25 years.

Con: They’d have to keep paying expensive annual premium until they made a claim. And premiums could rise, as they have historically.

Read more

In retirement, plan for your ongoing expenses to total 80 percent of your preretirement income.

The reasoning – Once the kids are grown and work-related expenses disappear, the annual cost of living could go down. And although in the past you may have set aside a chunk of your income for retirement savings, after you’ve retired, well, that line item will likely disappear.

The revision – When budgeting for retirement, pay attention to your expense, not your income. Identify your specific monthly spending needs, then create a cash flow plan to cover them. And leave some wiggle room for spending spikes. Commuting expenses may be gone, but retirees often drop more on travel or need to hire extra help at home.

Read more

When you buy life insurance, get a policy that will pay seven to 10 times your current annual income upon your death.

The reasoning – If you die early, your partner or family will require lots of cash to compensate for the years of earnings you were expected to provide.

The revision – Rather than using annual income as a guideline, estimate what your survivors need to avoid financial disaster.

Read more

Set aside 1 percent of your home’s value each year for maintenance and repairs.

The reasoning – Big ticket maintenance projects, such as roof replacement or house painting, aren’t annual events, but they’re expensive. To make  sure you’re covered, annually budget 1 percent of your home value for these. That’s $2,500 a year, for a home worth $250,000. If you don’t use it this year, you can use it the next.

The revision – If you have an older home you may have to budget more – 2 percent of your home’s value.

Read more

Subtract your age from 100. That number is the percentage of your investments you should have in stocks or stock funds. The rest should be in bonds.

The reasoning – When you’re young, you have a longer investment horizon and are better able to ride out the ups and downs of the stock market.

Read more

Before retirement, allocate 50 percent of your household’s annual after-tax income for needs, 30 percent for wants and 20 percent for savings.

The reasoning – These ratios help you achieve a three-way balance among everyday essentials, enjoying your life in the present and planning for the future. Fifty percent goes toward things you must have, such as food, housing, and insurance. Other purchases – up to 30 percent of your spending – are wants, whether they’re vacations, meals out, or cable service. The final 20 percent goes toward savings or, if necessary, debt repayment.

Read more

To protect yourself in case of financial emergencies, keep at least six months’ worth of living expenses in the bank. The reasoning – an emergency fund is just-in-case money set aside to cover a job loss, a medical problem, car woes or another costly shock.

—

Older working people, who tend to have longer periods of unemployment after a job loss, may want to stash away 12 months of living expenses, if possible. The same goes for retirees who depend in money pulled from their retirement accounts.

Read more

Has social media affected your own spending in any of these ways? The annual Schwab 2010 Modern Wealth Index Survey. One thousand persons were surveyed from ages 21 to 75 think about their saving, spending, investing and wealth. Here are three ways social media is affecting Americans’ finances:

1. Keeping up with the Joneses
2. Spending beyond their means
3. Focusing on spending over saving

• 59% live paycheck to paycheck
• 44% typically carry a credit card balance
• Only 38% have an emergency fund
• They also spend close to $500 per month on “non-essential items,” on average.

Read more

Thirty companies stood out in hiring for these positions during the first six months of 2019. Flex jobs are mostly in education and health care the top industries represented on the list. These jobs include entry-level and senior level positions and varied educational requirements. Checkout these companies:

1. Landi English
2. VocoVision
3. Grand Canyon University
4. U.S. Department of Commerce
5. Cozymeal
6. Supporting Strategies
7. Robert Half International
8. GreatAuPair
9. Rosetta Stone
10. Kaplan

Read more

1. Bealls (stores located in Florida)
2. Bealls Outlet
3. Burkes Outlet
4. E-Z Rent A Car
5. Hertz
6. Sixt (car rental discount)
7. Thrifty Car Rental
8. AARP (American Association of Retired Persons)
9. AMAC (Association of Mature American Citizens)

Read more