Inflation, Your Retirement & Purchasing Power

You hear it all the time: you should make sure your retirement savings at least keep pace with inflation. But what is inflation and how does it really affect your retirement savings? Let’s explore. In simple terms, inflation is defined as an increase in the general level of prices for goods and services. Deflation, on the other hand, is defined as a decrease in the general level of prices for goods and services. If inflation is high, at say 10% – as it was in the 1970s – then a loaf of bread that costs $1 this year will cost $1.10 the next year. Inflation in the United States has averaged around 3.29% from 1914 until 2016, but it reached an all-time high of 23.70% in June 1920 and a record low of -15.80% in June 1921. Most will remember the high inflation rates of the 70s and early 80s …

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Which Employee Benefits Do Workers Value Most?

An improving economy has made the talent market heat up, and organizations are finding they need to look for new ways to recruit and retain high-performing employees. One of the tools many organizations use to attract high-talent candidates and hold onto their top performers is a strong benefits package. While different employees have different preferences and needs, there are some trends worth noting when it comes to the benefits employees value. This white paper will look at benefits employees tend to value most, and examine how organizations can use benefits to improve their recruiting and retention efforts. Health Insurance One of the most valued employee benefits is health insurance. “Employees value health insurance, dental and vision the most,” says Nicole Wright of Entrepreneurs Loft. Research backs that up. According to a Towers Watson survey, 46 percent of respondents said health care benefits are an important reason for deciding to work …

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Things All Financial Advisors Should Keep In Mind

Money management can seem pretty straightforward — customers set goals, and financial advisors help them meet those goals. But things aren’t always so simple. Emotions, family situations and the client’s financial standing can pose challenges for financial advisors if they’re not prepared. “Every individual is unique, and makes decisions about investing and wealth management influenced by their emotional makeup,” says wealth management adviser Chris White. “Financial advisors need to understand the emotional factors that drive their clients’ behavior, and their attitudes about risk-taking and money management. If they do, they will be better able to fashion wealth management plans that are suited to an individual client’s personality, temperament and risk-tolerance.” Here are some things to keep in mind. Plan for a Solo Life, as Well as Marriage Married couples who start financial planning generally don’t give any consideration to the chance of divorce, even as a remote contingency, says registered …

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Mandatory Retirement: What You Need to Know

Retirement means different things to different people. For some it might mean a complete release from any work responsibilities or requirements and the start of a life of leisure. For others it may be more of a side-step into work they’ve always wanted to do, or the chance to start a business. But retirement comes when the worker wants to stop working, with exceptions made for pilots, air traffic controllers and, in some states, judges. Other employees aren’t told when to stop. “All U.S. employers with at least 20 employees are prohibited from taking adverse employment action based on age against most employees 40 years older or older,” says labor and employment lawyer Scott Horton. “In many states, age discrimination laws cover even more employers and employees. These laws essentially make it illegal to have a mandatory retirement age, even if someone could make a good business case.” Here’s what …

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Don’t Miss These Year-End Retirement-Planning Deadlines

It’s not too late to ensure that your retirement planning is on track to maximize tax savings before the end of 2017. Understanding end-of-year deadlines can help you maximize your tax savings as well as prepare for another year of saving. “Tax planning should really start in January, not in November or December,” says Randall Luebke, a financial planner at Lifetime Paradigm. “That said, if you do wait, be sure to do everything you can to reduce the taxes you pay.” Now is the time to accelerate your tax-deductible expenses and put off receiving taxable income. Here are some tips. Consider Roth Accounts If you’ve been thinking about converting a traditional IRA to a Roth IRA, it’s a good time to make a decision and act because you must file forms by the end of the year. With Dec. 31 falling on a Sunday in 2017, experts recommend aiming for …

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