Don’t overlook the benefits of nurturing your career.
Much like financial planning, investing in your career without established goals can lead you off track. Define your goals and then reassess them annually.
Develop a plan of action for problems or opportunities that come your way, and when they occur, approach your boss with at least two options for addressing them.
Tally your professional assets and liabilities. For instance, you may be great at paying attention to detail but less able to build consensus. Recognize your strengths, practice to overcome your weaknesses, and partner with those who have strengths you lack.
Invest time and money into gaining knowledge that could elevate you from experienced worker to trusted consultant. This could include pursuing formal certifications, training and degrees to informal learning via books, podcasts and mentors.
Be prepared to market yourself throughout your career. Create an online and offline presence that helps people identify you as a strategic thinker and thought leader.
Similar to financial investing, you may need to take strategic risks. Voice your opinion, ask questions and take action to develop your reputation as a critical thinker who is willing to step outside of your comfort zone to seek solutions.
Expand your horizons by partnering with people who complement your strengths and can help you perfect them. Find and work with a mentor – perhaps someone outside your company or industry – and then do the same for others.
Build teams that provide people opportunities to excel and shine. By doing so, you’ll develop a reputation as an ambassador and strong leader.
At some point, you may need to make a case for a promotion. Be prepared to explain what you’re seeking, how it will benefit the company and why you deserve the extra responsibility and money.
The adjustment is the largest since 2012, and over 67 million Americans will see the increase in their payments beginning in January.
This figure is an increase from last year's 2.0% adjustment. According to the Social Security Administration, on average, retired workers currently collect $1,420 a month in Social Security payments, or roughly $17,040 a year. The 2.8% COLA will add about $50 a month to those payments, or $600 for the year.
Keep in mind, all federal benefits must be direct deposited. So if you haven’t already started receiving benefits, you need to establish electronic transfers to your bank or financial institution. Contact your financial advisor for more information.
Source: Social Security Administration
Review this roadmap to help you navigate through the Medicare enrollment process.
With open enrollment season upon us, ask yourself a few questions to make sure you're getting the most from Medicare.
During this time, you can change from Original Medicare to a Medicare Advantage plan or vice-versa or switch from one Medicare Advantage Plan to another Medicare Advantage Plan. You can also join a Medicare advantage or Medicare prescription drug plan for the first time or drop your drug coverage completely.
Even if you’re satisfied with your current plan, open enrollment presents a great opportunity to make sure you’re getting the most out of Medicare. Every year you should compare your current plan to other plans in your area in case another plan offers better health and/or drug coverage at more affordable prices.
The coverage provided by insurance companies often changes each year and could result in paying more out-of-pocket on healthcare expenses throughout the year. Here are some tips to help you get started.
1. Ask yourself some important questions. Have your needs changed? Is your current coverage adequate? Will the cost of your current plan be going up? Are there comparable, lower-cost plans available?
2. Review the annual notice of change from your current plan provider. You should receive this in September.
3. If you have a Medicare Advantage plan, make sure your doctor is still accepting your particular plan next year. If your doctor is out of network, you will have to choose a new plan or pay higher out-of-pocket costs.
4. Carefully review if your plan covers your prescription drugs and what those copayments and coinsurances costs are.
5. If you switch from a Medicare Advantage plan to Original Medicare, you will want to join a stand-alone Part D plan to get Medicare drug coverage.
6. Compare plans using medicare.gov’s Medicare Plan Finder.
7. Get one-on-one assistance from the State Health Insurance Assistance Program.
8. Call the Medicare Rights Center at 800.333.4114 for free counseling.
9. All changes to your Medicare plan will take effect January 1 of the next year.
Medicare decisions can be complicated. If you have any questions about open enrollment, or if you’d like to discuss how healthcare costs factor into your overall financial plan, please contact your financial advisor.
When children leave home, you may have extra resources to invest in yourself.
Well, you just got a raise, so to speak. The money once reserved for your child’s needs and wants is once again available to fulfill your own. While you may be tempted to splurge on a pricey vacation, consider these other uses first.
You’ll never stop caring for your kids, both emotionally and financially. Many parents want to continue offering their children extra support, whether it’s a down payment on a house or college funds for future grandchildren. If you’d still like to help out financially, talk with your financial advisor about the most efficient way to accomplish this without losing track of your financial goals.
This is also a good time to update your will. Chances are the previous iteration named guardians for your minor children, which may not be necessary now that they’re young adults. If you’re inclined to charitable giving, the extra money that once went to college tuition could be reallocated to a cause that’s near and dear to your heart.
You may also want to make one of your children the executor of your estate. And if you haven’t already, you should designate your spouse or one of your grown children to have powers of attorney for your healthcare and finances in case of incapacitation. Of course, whenever there’s a change in circumstances, you should review the beneficiaries on your retirement, savings and brokerage accounts, as well as your insurance policies.
Speaking of insurance, you may be over-covered as an empty nester. Take the time to review your policies now that your children are no longer financially dependent on you. If you’re overpaying for life insurance premiums, you may want to cut back on coverage and pocket the savings. You’ll need some professional guidance here to make sure you maintain adequate coverage going forward.
Your child can stay on your healthcare policy until the age of 26. But if your child is eligible for his or her own employer-sponsored coverage and leaves your plan as a result, you could save money. The same holds true for auto insurance. Removing your child from your policy could lower the cost as much as 50%, according to the Insurance Information Institute.
Regulations may prohibit medical providers from sharing information with you about the health of your now-adult child. Ask your child to carry a signed document that authorizes healthcare practitioners to discuss relevant information with you.
This is also the time to think about long-term care insurance, if you haven’t already discussed this with your planner or purchased a policy. Studies show that long-term care, which generally is not covered by Medicare, could deplete your retirement savings. Buying a policy in your 50s and 60s when you’re in good health will be easier than trying to purchase one as you get older.
When there’s newfound wiggle room in your finances, it’s tempting to want to splurge a little. Boston College’s Center for Retirement Research found that spending on non-durable goods, the fun things, jumped more than 50% per person for empty nesters. That’s understandable after years of paying for dance lessons and soccer dues. So if your budget allows, make plans to travel, return to school, start a business or do whatever you’ve dreamed of. Ask your advisor to help you set aside a certain percentage for the fun stuff.
Next, consider where you’d like to live. Would you prefer a smaller house or a beachfront condo? Would you rather move to a less expensive home and invest the difference? If downsizing frees up some equity in your home, you could reallocate that money to other goals like starting a new career or funding retirement.
Moving to a smaller home might provide additional resources for your later years, which could make up for a less-than-stellar savings track record. In addition to using that home equity to bolster your retirement savings, you could also benefit from lower cost of living, maintenance costs, property taxes and insurance premiums.
Now that you have more time and resources, you can prioritize your future. Talk about this life change with your professional advisors and make sure your financial plan reflects your new circumstances. For example, you may want to adjust your asset allocation to reflect your new goals or use the extra money to step up investments in your overall portfolio, potentially increasing your net worth.
Strategies mentioned may not be suitable for all investors. Please consult your financial advisor about your individual situation. Investing involves risk and investors may incur a profit or a loss. Asset allocation and diversification do not ensure a profit or protect against a loss.
Material prepared by Raymond James for use by its advisors.