Are you disappointed by CD rates at your financial institution?

Published April 1, 2013 | By fday

As you know, today’s low interest rates at banks are insured by a federal agency.  But what you may not know is that banks are making more money than ever by charging good people like you 18% to 20% or more on your credit cards and 12% to 13% on your personal loans while only paying you a lousy 1% to 2% on you CDs (a/k/a/ Certificate of Disappointments!)

If you are not satisfied with the current status quo, its definitely time to move to a different playing field that is being called one of  the “safest retirement strategy” of our time.  Fixed Indexed Annuities (FIAs) offer you a guaranteed growth rate with the ability to take advantage of different interest crediting methods to achieve various rates of market growth while never participating in market losses ever again!  FIAs offer principal protection and potential tax-deferred interest to help you accumulate savings faster and there are no up front ales charges.  Many FIA’s still offer signing bonuses (some up to 20%).  Some new types of FIAs offer chronic care benefits, and several income options to receive income as a single payment, regular payments over a specific period of time, or even as income for life.  They also offer a death benefit which can be passed onto your beneficiaries if you pass away before you start receiving annuity payments.  (Beware:  distributions over your free annual withdrawal may be subject to a surrender charge and are also subject to ordinary income if taken from a Qualified Plan, and if taken before 59 1/2 years of age, a 10% federal penalty may apply.)

With the sense of insecurity arising out of the state of the Social Security program, more responsibility for retirement planning is shifting to individuals.  According to a report by Mary Willams Walsh published in the March 2010 issue of the New York Times, Social Security payouts in 2010, exceeded the amount paid in by workers for the first time since 1983.   (http://nytimes.com/2010/3/25/business/economy/25social.html)

For those of you who have a negative perception of annuities, you will be surprised by some results from the 2010 Allianz “Reclaiming the Future” study:   80% of annuity owners are happy with their purchase because of the safety, security, and protection factors.  This ranks 2nd highest in satisfaction among all financial products.  Yet, 46% of respondents said their financial professional had not presented annuities as a retirement option!  It’s time to get over your bias and start getting accurate information about annuities, so you can make a more informed decision about financing a portion of your retirement through FIAs.  (Watch for my post about Fixed Indexed Universal Life policies to understand more about tax-free retirement planning.)

Today’s annuities aren’t like the ones introduced even a decade ago.  To learn more about annuities, how they work, and how important they an be to a solid retirement plan as well as disspell some myths and get the truth about annuities watch some helpful videos called the ABCs of Annuities.

Call us today to help you create a safer retirement plan and a better day tomorrow!!!

Posted in Annuities, Retirement Info | Leave a comment

Made Your New Year Resolutions? How’s That Working for You?

Published March 25, 2013 | By fday
Another spring is upon us, and most people are scrambling to keep up with New Year’s resolutions that by now have been reduced to rational reasons why those particular resolutions aren’t working for them.  If you truly have the desire to create a better life, here are three simple tips to create a new habit that actually becomes a natural part of who you are and how you live aligned to who you want to become.
  1. Let go of “shoulding” yourself into making or starting resolutions in January.   Any day, week or month you want to begin will work, as long as it isn’t on “someday” which isn’t a day on anyone’s calendar.  Often the reason people don’t stick to a resolution is that they are not enjoying their daily life or finding happiness within themselves while in the process of reaching their desires.  
  2. Make your resolution something specific which you have an intense desire to accomplish or a special character trait to possess.  Otherwise, your motivation won’t be strong enough to pull you through the obstacles you will undoubtedly encounter.  Develop a 3-6 word theme and make it your mantra.  Then saying it or thinking it will act as a trigger and  automatically pull you through those stumbling blocks.  This is a valuable component to get you to focus on the outcome.   “Keep your eyes on the prize!”
  3. Never give up, period.  Even after it may appear that you haven’t reached your desired outcome when you had originally planned or expected. The difference between ordinary and extraordinary is often found in the extra positive decision you make or step you take.  While these tips may be simple, they may not be easy. If it were easy, everyone would have resolved all of their annually sprouted issues. This is exactly why having a nonjudgmental accountability person (masterful coach) is so critical!
When you are ready, able and willing to take the “extra” steps result in an extraordinary life, take notice of what events occur, circumstances materialize, or people show up in your life to support your choices and help move your actions forward until your desired outcomes a reality. I believe the biggest challenges require the “best” of you.  Commit to being the best “you” you can be!  Success is in the T & A; timing of actions and attitude of heart!
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IS WORRYING ABOUT MONEY KEEPING YOU FROM ENJOYING YOUR RELATIONSHIPS OR YOUR DAILY LIFE?

Published February 25, 2013 | By fday
Money worries have become one of THE single greatest physical and interpersonal relationship stress factors in today’s society.  If you Google the phrase “worry over money”, you’ll find over 256 million entries.  A study at Brandies University has shown that the highest cortisol levels are found in older adults suffering from money stress.
Cortisol, known more formally as hydrocortisone, is the hormone that our body produces under stress. A little cortisol is ok – it helps regulate blood pressure and the immune system during a sudden crisis.  But when your stress is prolonged, or when you worry excessively over things like money, the cortisol in your body goes Into “overdrive” and creates a state of chronic stress.  In other words, when you worry a lot or “stress out”, your cortisol levels can increase more than normal.

According to Prevention magazine:   “Chronically high cortisol levels can cause sleep problems, a depressed immune response, blood sugar abnormalities, and even abdominal weight gain.  When cortisol spikes, it tells the body to eat something with a lot of calories–a great survival tactic if you need energy to flee a predator but not if you’re fretting over how to pay bills,” says nutritional biochemist Shawn Talbott, Phd, author of The Cortisol Connection.”  Talbott adds, “Over the long term, excessive amounts of this “primary stress hormone” can “kill your sex drive, shrink your brain, squelch your immune system, and generally make you feel terrible.”  
 
There’s a documented relationship between elevated levels of cortisol,chronic stress, and such health conditions as obesity, depression, suppressed immune system, osteoporosis, and hypertension.  In high amounts, cortisol can even kill brains cells.  Not to mention how your reaction to money can kill your close relationships!
Here are five simple ways to reduce your cortisol levels which may lead less worrying and more living.1. Eat at regular intervals throughout the day.  Avoid skipping meals, it creates a release of cortisol in your brain and body.

2. Beware of simple carbohydrates.  Excessive carbohydrate intake creates cortisol release in response to constantly elevated insulin levels. Have complex carbohydrates instead.
3. Utilize stress reduction techniques at peak cortisol times.  Meditation, self-hypnosis, or simply lying on the floor doing belly breathing for 10-15 minutes can help to reduce stress and thus cortisol levels.
4. Get at least 8 hours of sleep every night. 
5. Avoid stimulants or eliminate in the afternoons.  Stay away from energy drinks that contain ephedra-like compounds and caffeine. Stimulants shift the body into sympathetic dominance, or the “fight or flight” mode. Stimulants can also disrupt your sleeping patterns.
One of the simplest ways of reducing your cortisol levels, while you tap into the power of your Heart’s wisdom and intelligence is by using a wonderful program you can access as a client of Better Days Solutions called Clear-Mind.  (Another stress reducing technique offered is Emotional Freedom Technique which I will get into in a future article.) 

Even when your mind and body begin to feel stress creeping in, just taking 15 minutes to work with Clear-Mind can help dissolve the stress and bring you back to a feeling of inner peace and clarity.   You can recharge your mind, your body and your whole energy system. One of the key reasons Clear-Mind was created was to help you be free of the “Restless Mind”.  When you know how to let go of the mind’s need to control your life, you free yourself from money worries, anxiety and pain.


Visit http://pwc2.com/BetterDays-ClearMind and start enjoying the feeling of deep inner peace and the power of your Heartwaves!  Call me at (207) 777-3232 and let me know how I can help coach you through your money worries.
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My Top 10 Tax Season Tips

Published January 23, 2013 | By fday
I am providing the following tips to help make the upcoming tax preparation experience a little less stressful.  (As a Legal Shield Associate, Certified Small Business Specialist and Certified Identity Theft Risk Management Specialist (since 2005) and a former CPA, I can attest to all of them with first hand experience.)
  1. Relax and Balance Yourself First - Before attempting to work on any financial project (or any other type of project which causes stress, anxiety or overwhelm), ‘keep the end in mind’ and focus on how wonderful you will feel once the project is done! ( It would be even better if you actually learned how to enjoy the process.) Get plenty of rest before and during the preparation process. Gain more energy and confidence from knowing that all of the pertinent materials and information are together in a safe place. (Of course you have already accumulated them throughout the year as I recommend (See Tip 10) in my program “Beyond the Mess to Reduce the Stress”).
  2. Start Prepping Today, Procrastinate Tomorrow – This year, make it a priority to file your tax return on time. Although you are not required to make a payment of the tax you estimate as due on April 15th, Form 4868 extends the time to file your personal tax return for six months. If at least 90% of your actual 2012 tax liability is paid before the regular due date through withholding, estimated tax payments, or payments made with Form 4868, you are considered to have reasonable cause for the period covered and avoid a late payment penalty.  The pricing of tax preparation services often increases as filing deadlines approach. Disorganized late filers may pay nondeductible penalties and interest, miss key deductions or make costly mistakes, which then require more expense to file an amended return if the mistake is found before the deadline.
  3. Storage Documents Safely – Keep adequate documentation to prove your deductions are legitimate or you could end up taking the time to substantiate them during a review or audit. Save copies of your return, supporting receipts and documents used to prepare the return. Scan and save pdf versions whenever possible and back up data in a password protected file. (Request a copy of the Record Keeping Time Requirements at filomena@betterdays.net.)
  4. Professional Tax Preparers May Be Your Tax Savior – Professional tax preparation can be invaluable to businesses and individuals with complex personal finances. If you decide to utilize a professional tax preparer, get reliable references and always make sure he or she signs your return as a tax preparer. By the way, if you have a home based business, remember to pay attention to the various business deductions which are often overlooked: carryovers from prior years for net operating losses, theft & casualty losses, interest payments on business loans and business credit cards, incidental costs of business travel like laundry. Request a more complete list at filomena@betterdays.net.
  5. Online Filing For The DIYers– Online tax preparation and filing has grown in popularity. You may be eligible for free online filing if you meet certain income requirements.  Find out by going to www.irs.gov and click on freefile.
  6. Choose Direct Deposit for Quicker Refund – The IRS offers direct deposit for refund payments for faster refunds. If you don’t feel comfortable giving putting your regular bank account routing numbers on the tax return, perhaps you can establish a separate account just for direct depositing.
  7. Security, Security, Security – Whether you file online or use a professional, always keep your personal information and passwords safe. Tax returns are a goldmine for identity thieves. Keep paper copies of your return in a safe location. The IRS charges for copies of prior year returns you request. Never store sensitive information on public computers or transmit financial information through unsecured Wi-Fi. Blacken out your SS# on old docs you have to keep indefinitely. (You can request a copy of the Record Keeping Time Requirements at filomena@betterdays.net.)
  8. Be Cautious and Vigilant – Tax scams come in all shapes and sizes. If you have any questions about how to better protect yourself from identity theft, feel free to contact me, or read more about the IRS’ Dirty Dozen Tax Scams at http://www.irs.gov/uac/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2012.
  9. Check Your Work – Whether you use a professional or DIY software to prepare your tax filing you should always double-check the work. Compare your current return to last year’s. Unless you have experienced major financial changes or life changing events (divorce, marriage, adoption or birth of a new child) your refund or the amount you owe may be in the ball park of prior years’ returns.
  10. Prepare for Future Returns - Make this the year that you become proactive about your financial health. Commit to ‘get organized and live’ (GOAL) with less stress. My GOAL is to help you clear the clutter that causes anxiety and frustration and finally design an efficient financial document system that alleviates the overwhelming experience of putting it all together before deadlines. If you are self-employed, pay your quarterly payments on time. The IRS requires that businesses expecting to owe at least $1,000 Far too many entrepreneurs wait until the end of the year, when they often don’t have cash available during the holiday season to pay their full tax bill.
The post is intended for general information purposes only, and is not legal advice. Readers should be aware that while certain principles outlined on this site may be similar to principles followed in their own state or province, laws can vary considerably.
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How is your relationship with your money?

Published December 19, 2012 | By fday

Having a great relationship with your money means you are successfully enjoying the WHOLE process of earning it, saving it, protecting it, and spending it. Focus on fully engaging with your personal and business environment and stand in your power as an entrepreneur who believes in your true potential and knows who you were meant to serve by starting your business in the first place!

Consider reflecting on a theme for the upcoming year which will bring you closer to experiencing a more meaningful relationship with money and all of the ways to harness the power of money.

Posted in Financial Fitness | Tagged , , , , | Leave a comment

Clear Your Mind, The Rest Will Follow

Published November 24, 2012 | By fday
Creating what you want is actually easier than you may think. But because of cultural conditioning we
think we have to strive and work harder to get ahead.
But what if that simply wasn’t true?

What if your mind is just running old thoughts, over and  over again that have been passed down to you (without your conscious awareness?)

You see, the mind is the only thing that stops you from creating what you want.

It’s not the economy. It’s not your job.  It’s not your boss.

It’s not how much you make, or how much or little you have.

It’s about how the mind keeps telling you the same old thoughts from yesterday – repeated over and over again.

Until…

Until you become aware that something’s not quite right.  In other words, you begin to realize that your mind has been “playing tricks” on you day in and day out.

A good way to think about it is to imagine a merry-go-round filled with old memories of not enough, worry and feelings of low energy and disconnection.

But what if you could stop that merry-go-round and step into the pure present moment?  And by being present, you get your clarity and focus back in ways that astound you.

There is a way to feel this way and it’s called Clear-Mind(TM).
It’s a revolutionary new meditation program that instantly clears stress and the “Restless Mind”.  It’s the most powerful program ever created to tap into your inner resources and turn on your “Mana”-festing power.

Visit here to learn more about how Clear-Mind can help you…

People who have used Clear-Mind in their lives have reported that it’s far more than just a meditation program – it’s been the major catalyst that’s opened up their creativity, passion and energy that’s transformed their lives.

Go on and make it a better day!
Posted in Mind Matters, Stress Management | Tagged ,

Top 10 Questions to Ask about Your Financial Vulnerability

Published October 24, 2012 | By fday

How financially vulnerable are you?  According to a 2010 LIMRA report “Facts About Life 2010,” more than 40% of Americans say the reason they don’t have more life insurance is because of other financial priorities, like saving for retirement.  Furthermore, nearly 70% of American households with children under 18 would be in financial jeopardy if the primary breadwinner died.  Even if you feel financially secure today, there are factors outside your control that could impact that security tomorrow.  Become more proactive and purposefully begin a plan that will provide protection, growth and security in spite of uncontrollable life events.

The following are some common questions that require definitive answers to establish solid plans for those “what if” events.

  1. If I or a family member died prematurely, how would my family have the financial assets to continue their current lifestyle?
  2. How would my loved ones be able to keep our home and assets or have funds available to attend college or cover my funeral expenses?
  3. How will my estate taxes be covered at the time of my death?
  4. How will I protect and grow my assets to ensure a comfortable retirement?
  5. How will tomorrow’s economy affect the value of those assets?
  6. How will my income and retirement account keep pace with inflation so I won’t outlive my money?
  7. What will happen to my assets if I extract a terminal or chronic illness?

If you own a business there are even more concerns.

  1. What would happen if I lost a key employee?
  2. How can I provide protection and growth for my company’s employee retirement plan?
  3. How can my company improve its retention plan of key executives and employees?

Did you know that all these questions can be answered by purchasing a fantastic financial vehicle called Fixed Index Universal Life insurance (FIUL)?  The primary reason for purchasing a policy has been and still is for the tax-free death benefit for beneficiaries.  However, the potential to build cash value with guaranteed interest rates and potential market gain without the risk of market loss is making the purchase of such a vehicle far more attractive as we consider the precarious future of social security and inevitable increased tax rates.  Here are some basic attributes about FIULs to aid you on your journey to wealth, wellness and wisdom.

While most FIULs are geared toward protection, growth and safety, not all FIULs are alike.  They are designed to fulfill different policy owner needs and goals:  long term death benefit protection, long term cash value, supplemental retirement income, legacy building, early cash value, business insurance needs, or estate planning. There are different market indexes and interest crediting methods used.  Loans (standard, net zero-cost, and variable) will reduce your available cash value and death benefit.  Make sure your policy includes a guarantee to prevent the possibility of lapsing.  Also keep in mind that most FIUL policies require health underwriting, and in come cases, financial underwriting.  Be clear about your financial goals so that your financial professional will help you determine what if any riders to include in designing the policy that best fits your needs. Some FIUL policies are better than others at providing optimum tax-free loans to use for financial needs like college funding and retirement.  Most FIULs provide for terminal, critical or chronic care illness benefits (with or without extra charges) known as accelerated death benefit riders.  Make sure to determine which policy will provide you both “living” and death benefits and adequate coverage to fulfill your goals.

Most insurance policies have two types of charges:  premium charges and monthly deductions.  A premium charge is deducted from the premium when paid.  Monthly deductions are taken from the policy at the beginning of each policy month.  In addition, if you fully surrender or cancel the policy during the surrender period, surrender charges will apply.  Policy charges offset various expenses the insurance company incurs in connection with a policy, including but not limited to the expenses of underwriting, issuing and administering the policy, agent compensation, and compensating the company for the mortality risks it assumes.

So little time, so many questions.  Make it a priority over the next 30 days to find the answers to these questions and you will enjoy the feeling of relief that comes from being reassured about your financial security.  The knowledge that your assets are secure and your family is financially protected, will bring more meaning to your experience of wealth and wellness.
Filomena T. Day is a Wealth & Wellness Coach, Reiki Master and EFT practitioner, motivational speaker, published author and Certified Identity Theft Risk Management Specialist.  As a former CPA, Filomena helped people balance their financial life.  Now as a prosperity achievement coach (PAC), she helps people balance their WHOLE life.  Her clients prepare for their life-changing events through customized coaching and financial programs utilizing debt elimination and tax-free strategies.  She can be reached at filomena@betterdays.net or by calling (207) 777-3232.

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Essential Steps for Improving Your Relationship…with Money!

Published September 24, 2012 | By fday

The change of weather and leaf colors remind us that, while many aspects of life change  what must remain constant is confidence in our ability to respond versus react to change in general. At times, it may seem as if you have no control over what happens, but you always have control over how you respond to everything that happens to you.

With the leisure days of Summer behind you, now is a good time to re-evaluate your beliefs about change and consider whether your approach to it helps you or harms you, serves you or enslaves you. There is no question that doing what you’ve always done will result in the same outcome. The question is, are you ready to change the way you have always related to the world and people around you? Are you ready to change the way you have previously looked at one major aspect of life in particular, money? Are you ready to improve your financial life and thrive instead of survive?

I hear a lot of people comment that they are having a hard time financially because the economy is so “bad.” The reality is that there always were (and will continue to be) bad times for people who struggle to make ends meet and think they always will be poor thus have given up trying to get out of their rut. They have adopted a “scarcity” mentality. On the other hand, there always appears to be “good” times for those taking advantage of the financial opportunities the economy presents.  These habitual optimists envision a brighter future with a “prosperity” mindset. The question is, is it the economythat is “bad” or “good” or is the economic reality in the eyes of the beholder?

For the past 40 years, it has been my belief that, since I can’t change what can’t be changed (the laws of nature, the economy, growing older to name a few), I must have the confidence and foresight to change my view of the unchangeable in order to reveal what other choices may be available that were not previously evident to me looking at things through the old paradigm. Albert Einstein said, “Problems cannot be solved with the same mind set that created them.”

Yes, it’s frustrating that income levels for all but the wealthiest Americans are stagnating or dropping. But that doesn’t mean you can’t thrive financially in this economy, which is likely to remain stagnant for a long time. There are steps you can take to create your paradigm shift, change how you generate income, and how you manage what you generate. Here are a few suggestions:

Look Back to Move Forward.

Examine the history of how your relationship with money and spending and saving habits evolved. What were your family experiences with money which impacted your current attitude and beliefs about money? What are you doing today to reinforce good habits and work through undesired behaviors and beliefs?  Whatever beliefs you choose becomes your reality.  Your subconscious brain remains programmed neurologically to protect you in your comfort zone, until you consciously change your  quality of thoughts.

Decide Now to Choose to Change.

Here are three steps to reprogram your past beliefs and create new successful scenarios.

  1.   Write down the doubts, fears, feelings, and uncertainties still present in your life.
  2.   Read each negative thought aloud and notice how each one makes you feel. Do you feel the tension, discomfort and anxiety? Imagine what your life will be like 10 years from now if you keep on thinking these same negative sabotaging thoughts thus reinforcing self-limiting beliefs.
  3.   Replace each one of these negative thoughts, by restating it in a more positive declaration.  For the Fear statement, “I’m afraid I will not make enough money.” the positive restatement might be:  “I welcome all the power and intelligence required to make the money I want and deserve.”  Repeat them out loud 4 or 5 times. Now notice how each one makes you feel.  The difference will astound you.

Repeat this exercise over a period of 21 days until your brain begins to automatically access the new thoughts first.  Soon, you will begin taking the required action based on these new paradigms which will then improve future outcomes.  Utilizing the Emotional Freedom Technique (EFT) I have incorporated into my coaching practicing for the last decade has provided more powerful results.   I welcome comments about any results you achieve after your 21 day exercise.

Let’s Get Real.

Are you fervently holding onto a dream that you’ll either win, inherit, or miraculously create great wealth overnight? You know what holding your breath will do for you, don’t you? Are you willing to do the “extra” things that ordinary people won’t in order to get extraordinary results? Ask yourself if you are waiting for the economy to improve before taking proactive steps to adjust to the new economic reality.  Your outlook for future wealth must be based on a realistic assessment of your potential in your current business or career or you must at least consider changing it. Be clear about your long term financial goals or you will end up where you are now except for having had time pass you can never get back.

Get a real sense of your financial situation by developing a personal financial statement and cash flow summary to understand fully how you spent and continue to spend financial resources. Greater levels of financial comfort come from understanding the marketplace, adjusting your skills, business products and services to fit the marketplace, and honing your financial management skills, or simply having a financial team or business staff who can do what you can’t.

Rethink Your Resource Flow.

Most people think they need more money, when in fact a lifestyle adjustment may be in order. Do you maintain expensive assets that add little practical value to your present lifestyle? If so, let it go! Are you drowning in an overwhelming amount of stuff that drains your energy as soon as you walk in your home? If so, let it go! Is your business ruining your life?  If so, let it go! Besides the Return on Investment (ROI), are you getting an adequate return of energy (ROE) in all of the areas you expend your personal energy?  If the answer is no, let it go!  After decades of observing where clients get stuck and become unhappy, I find that happiness comes from wanting all that I have, not having all that I want.

As a former CPA, I love to help clients understand their financial picture and how it impacts their entire life.  As a life coach, I have more satisfaction witnessing the personal development they experience as they move toward their goals in a more focused, fulfilling, and timely manner to achieve their desired outcomes.

While political realities make it more difficult for the middle class to thrive and prosper, opportunities still exist. Complaining is certainly not going to change your economic position. It’s up to you to be proactive and find a way to improve your skills and your relationship with money so that you too can thrive in the new economy.  Decide today to contact me and begin the exciting journey of improving your relationship with money!

Filomena Day, a former CPA, with 40 years of accounting, financial and coaching experience with individuals and businesses, works with people from ages 25 to 65 who would like to plan for a more comfortable retirement with tax free strategies. Call or write to be on her mailing list for free quality newsletters or to ask about her VIP Money Makeover program.

Posted in Coaching Topics, Financial Fitness | Tagged , , , , , | Leave a comment

Retirement Time Line Ages 50-70 1/2

Published July 24, 2012 | By fday

             This article provides a general overview of a retirement time line without enumerating all the pros and cons surrounding the age specific decisions.  Many people think major retirement decisions coincide with your 65th birthday.  In reality, many important decisions begin as early as age 50.  Actually, you are never too young to start developing your long term financial objectives.  “If I knew then what I know now …” is a phrase often spoken by seniors who would have done things differently if they had been more informed young enough to make intelligently planned decisions versus emotionally charged emergency ones in reaction to sudden life changing events.

Age 50:  During the year in which you turn 50, you can begin to make catch-up contributions (beyond the normal contribution limits) to a 401(k) and many other retirement accounts.

Age 55:  During the year in which you turn 55, you may receive amounts from an employer’s retirement plan without the 10% federal tax penalty if you separate from the service of that employer.

Age 59 ½: You may begin taking withdrawals from a retirement account without the federal 10% tax penalty, but be prepared to pay the taxes on the account’s growth at your current tax bracket.  Of course, the more you leave in, the more the funds grow tax-deferred.

Age 62:  You may be eligible to begin receiving Social Security (SS) benefits.  However, by choosing to begin drawing SS before your Full Retirement Age (FRA), you would receive  a permanently reduced monthly benefit.

Age 65:  You are eligible for Medicare on the first day of the month you turn age 65.  If you do not enroll during that month, and wish to enroll later, you may be required to pay a higher premium.

Age 66:  If you were born between 1943 and 1954 you reach FRA at age 66, and are entitled to 100% of your SS benefits. If you were born in 1955 to 1959, add two months for each year to calculate your FRA.

Age 67:  If you were born in 1960 or later, your FRA is age 67.

Age 70 ½:  You must begin withdrawing your Required Minimum Distributions (RMDs) from most retirement accounts or incur significant tax penalties.

It is imperative to work with an independent knowledgeable financial professional or tax advisor to discuss your own retirement time line and specific objectives so you understand all your options and gain a clear picture of your retirement readiness.

 

Filomena Day, a former CPA, with 40 years of accounting, financial and coaching experience with individuals and businesses, works with people from ages 25 to 65 who would like to plan for a more comfortable retirement with tax free strategies.  Call or write to be on her mailing list for free quality newsletters or to ask about her VIP Money Makeover program.
Pursuant to IRS Circular 230 this article is not intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement.

Posted in Coaching Topics, Financial Fitness, Retirement Info | Tagged , , , | Leave a comment

Set Your Course for Financial Fitness

Published May 24, 2012 | By fday

Set Your Course for Financial Fitness

I used to subscribe to the philosophy, “Success is a journey, not a destination!”  Now one of my favorite sayings since owning a Honda Odyssey is, “Life is an odyssey!  Enjoy the ride!”  One of the  best ways I know to enjoy the ride is to be financially, physically, emotionally, and spiritually fit.   As a CPA, my clients focused on their financial fitness because retirement planning has been traditionally about numbers.  Now as a PAC (Personal Achievement Coach), clients focus more on their personal outlook and mindset, the starting point which leads to improved financial statements, health,  relationships, and fulfilling their life dreams.

Without a doubt, life is a lot more meaningful when you are in control over your own piece of the world.  Research has shown that it takes 21 days to make a new habit.  This means that in three weeks, you can set yourself on a path to improving your financial position by changing the way you think about money and how you relate to this ever present symbol of success.   I believe there are five simple steps to financial fitness.

1. Assess it!

Assess your current financial fitness by preparing personal financial statements.

2. Commit to it!

Determining your commitment level in any endeavor will help you understand if the reason “why” you want something is strong enough to get you through the obstacles that undoubtedly lay ahead.

3. Plan it!

A well designed plan will help you determine how to improve your finances and when each action is to be implemented. However, without a clear vision of the end results, you won’t know which direction you are going and how you are going to get there.

4. Implement it!

Of course, without action, your plan is just a piece of paper, a useless tool in a tool box.  Only you can decide whether you take small steps or giant leaps toward your desired outcome. Your personal urgency in achieving success requires life changing decisions.  But that one decision leads to subsequent decisions which will only be appreciated in retrospect.

5. Evaluate it!

Evaluation requires an honest observation of the results without blame or judgment.  Sometimes it is best to incorporate professional evaluation to get past the natural tendency to feel personally responsible for often uncontrollable events.

Each step takes patience and time, and raises questions which must be answered to proceed to the next step.

I will be covering each step more fully in subsequent blogs, or call or email me to get access to the full program . . . Five Steps to Financial Fitness

 

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