​Who are you thankful for this Thanksgiving? You likely have some relationships in your life that are extra meaningful. Perhaps you're thankful for a spouse or partner? Or maybe your children? Or perhaps siblings, friends, or even coworkers?
 
Do any of those individuals rely on you for financial support? Do you have a spouse who relies on your income? Or perhaps minor children who depend on your financial means?
 
If so, this may be a good time to not only reflect on how much you appreciate them in your life, but also how their life may be impacted if something were to happen to you. It’s never pleasant to think about negative things that could happen in our lives. However, a failure to plan for possible threats could leave your loved ones exposed to risk.
 
Below are three common risks that can disrupt a family and create serious financial hardship. If you haven’t planned for how to protect your loved ones from these risks, now may be the right time to do so.
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​Death is inevitable. It’s also unpredictable. It’s never fun to think about your own passing, but it’s also unwise not to do so. At some point, you will pass away. If that happened sooner rather than later, how would it impact your spouse, children, or others who rely on you for financial support?
 
Life insurance can be an effective way to manage the risk. You pay premiums in exchange for a certain amount of death benefit paid to your beneficiaries upon your passing. Your premium is based on a wide range of factors, including the type of policy, the death benefit amount, your age, and your health.
 
Life insurance also doesn’t have to be expensive. One way to keep the cost down is to use term insurance, which provides coverage for a limited period of time, like 15 or 30 years. After the period ends, you can renew the policy or let it lapse. This can be a cost-effective way to protect loved ones temporarily. For example, you may use term insurance to provide financial support while you have minor kids in the home.
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More than 25% of all adult workers will suffer a disability at some point that keeps them working for a year or more.1 What would happen to your loved ones if you were unable to provide income for an extended period?
 
Disability insurance mitigates this risk by providing income if you are physically unable to work. There are two-types of disability insurance: short-term and long-term.

Short-term coverage provides financial support for a limited period of time, like several weeks or months. Long-term coverage can provide support for a year or even longer, depending on the terms of your policy.

Many employers offer disability coverage as part of their benefit program. However, it’s possible that your employer plan has gaps in coverage. For example, it may offer only short-term protection or it may only provide coverage for specific types of disability.
 
If you haven’t reviewed your disability protection, now may be a good time to do so. It’s possible that you, and by extension your family, are exposed to risk. A financial professional can help you implement the right risk mitigation strategy for your needs and your budget.
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Long-term care is a very real possibility for many seniors. Those turning 65 today have a 70% chance of needing long-term care at some point in the future. On average, women need long-term care for 3.7 years and men need it for 2.2 years. Much of the discrepancy is due to women having a longer life expectancy than men.2
 
Unfortunately, long-term care can be costly. In 2019, the average monthly cost for an assisted living facility was more than $4,000. Even in-home care services average more than $4,200 a month. Very often, these costs aren’t covered by Medicare.
 
Long-term care insurance can help you, your spouse, and your family manage the cost. You pay a premium and then the insurer pays some or all of your long-term care expenses. Most policies even cover in-home care. You can often choose among a wide range of coverage options to tailor the policy to fit your needs and budget.
 
This is the time of year to reflect on those you appreciate the most. It’s also a great time to evaluate your risk strategies so you can better protect those who are most meaningful to you. Let’s develop your risk protection strategy. Contact us today at Rex Financial Group so we can start the conversation.
 
1https://disabilitycanhappen.org/disability-statistic/
2https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
3https://www.genworth.com/aging-and-you/finances/cost-of-care.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.

The COVID pandemic has changed nearly every aspect of society. It’s changed the way we work, the way we learn, and even the ways in which we travel and dine. The pandemic also disrupted the economy and the financial markets, triggering record unemployment and bringing the longest bull market in history to an end.
 
Given the financial volatility we have seen during the pandemic, you might think that Americans are also changing their retirement strategies. However, a new survey from Forbes and YouGov suggests that’s not the case.
 
The survey reached out to 9,675 people to learn more about their retirement planning. Many of the questions and answers focused on three main areas:

As the COVID pandemic hit the economy, the government passed the CARES Act to provide assistance to those who were impacted. One piece of the CARES Act allows 401(k) and IRA account holders to withdraw up to $100,000 without paying an early distribution penalty. They can also pay the taxes over a three-year period.1
 
While the pandemic may have created unemployment and other financial emergencies, few Americans are tapping into their retirement savings. According to the survey, only 4% of respondents took a 401(k) hardship withdrawal and 5% took a hardship withdrawal from an IRA.2
 
Most of those who took a withdrawal were younger in age. Among those ages 25 to 34, 8% reported taking a withdrawal. However, among those 55% and older, only 2% said they took a withdrawal from a retirement account.2
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While few respondents said they had tapped into their retirement savings, 11% said they planned to work longer before retiring. Those ages 45 to 54 were most likely to give this response.2
 
The decision to work longer may be due to market volatility in 2020. However, it also could be due to a surprising reason - employers suspending their 401(k) matching contributions. Nearly 4% of respondents said their employers had suspended matching contributions, but that number could increase.2 In the years following the 2008 financial crisis, nearly 20% of employers with more than 1,000 employees suspended their matching contributions.3
 
If you’re concerned about volatility or if your employer has suspended contributions, consider meeting with a financial professional. Working longer is an option, but it’s not your only option. A financial professional can help you implement the strategy that’s right for your goals and needs.
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In the survey, only 5% of respondents said they had made a significant change to their asset allocation and only 4% said they had lowered their 401(k) or IRA contributions. In fact, 72% of respondents said they hadn’t made any changes to their retirement strategy at all.2
 
While sticking to a long-term strategy is generally a good idea, there may be times when a change is warranted. If you haven’t reviewed your strategy recently, now may be a good time to do so.
 
Let’s talk about your strategy and whether it’s still right for your goals. Contact us today at Rex Financial Group. We can analyze your strategy and help you make adjustments where needed. Let’s connect today and start the conversation.
 
1https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
2https://www.forbes.com/sites/advisor/2020/05/11/how-covid-19-has-changed-retirement-planning/#7f6080b6830d
3https://www.forbes.com/sites/advisor/2020/04/10/covid-19-employers-suspending-401k-matching-contributions/#30e0b7cd285f
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency. 20418 - 2020/9/17

​Thinking about retiring in the next year? If so, this is an exciting time. After a career that has likely spanned decades, you can now look forward to the next chapter of your life.
 
While you’re probably excited to retire, it’s important that you don’t make the leap too early. It’s not uncommon for retirees to realize that they weren’t quite ready to leave the working world. The result is that they return to work in some capacity.
 
You can avoid that outcome by making sure you’re fully prepared before you pull the trigger on retirement. Before are four financial milestones that could indicate you’re ready for retirement. This list isn’t comprehensive, but if you meet these four major markers, retirement may be in your near future.
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A budget is always a valuable financial tool, but it’s especially important in retirement. A budget helps you control your spending and make sure you’re on-track to hit your financial goals. Without a retirement budget, it can be easy to fill your newfound free time with costly activities like travel, dining, and shopping. If you spend too much in the early years of retirement, you may not have enough assets left in the later years.
 
Unfortunately, many Americans don’t regularly use a budget. In fact, according to a 2019 poll from Debt.com, nearly a third of all households don’t use a budget.1 If you’re among that group, now may be the time to start using one. A budget could be the key that helps you maintain your assets and your income through a long retirement.

​Emergencies happen. There is always the potential for a home repair, costly medical procedure, or other unplanned expense. As you get older, the possibility of a costly medical bill may be even more likely. While Medicare may cover most of your care, it doesn’t cover everything. In fact, Fidelity predicts that the average 65-year-old couple will spend $295,000 out-of-pocket on health care in retirement.2
 
An emergency fund can help you handle medical costs, home repairs, or any emergency bill that may pop up. When you’re working, it’s often advised to have a few months worth of living expenses in an emergency fund. However, in retirement you may want to plan for a longer period of time. After all, you no longer have a salary to replenish the emergency fund.
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For many of us, debt is a fact of life. From mortgages to car payments to student loans and credit cards, debt is often a necessity. As you reach retirement though, debt can be a serious financial burden. Every dollar you spend servicing debt is a dollar that isn’t used to cover living expenses or to grow your assets. Debt could force you to drain your retirement assets more quickly.
 
If you have significant levels of debt, especially high-interest credit card debt, you may want to rethink retiring soon. Develop a plan to tackle that debt and free up cash flow. A financial professional can help you implement a strategy.

Finally, perhaps the most important question to answer is where your income will come from in retirement. You’ll likely receive Social Security benefits, and you also may have retirement savings in a 401(k) or IRA. Perhaps you also have a pension, annuity, or other source of income.
 
A retirement income plan maps out exactly how your income will be generated and how much income will come from each source. A financial professional can help you develop a plan that protects your assets and maximizes your income. They also may be able to help you generate income that is guaranteed for life, no matter how the market performs or how long you live.
 
Think you’re ready to retire? Let’s talk about it. We can help you analyze your needs, goals, and concerns and implement a strategy. Contact us at Rex Financial Group today and let’s start the conversation about your next chapter.
 
1https://www.prnewswire.com/news-releases/fewer-americans-are-budgeting-in-2019----although-they-think-everyone-else-should-300824384.html
2https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
*Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.  Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. 20416 - 2020/9/17

According to a new study from Transamerica, Generation X doesn’t feel too confident about its chances in retirement. In a recent study, the financial company found that only 12 percent of those in Generation X feel comfortable about being able to retire. The average Generation X household has only $69,000 in retirement savings.1

Generation X is generally defined as those born between the mid-1960s and early 1980s. Most Gen Xers are in their 40s or 50s now, which means that while they still have time to save, retirement is approaching soon.
 
If you’re a Gen Xer and are behind on saving for retirement, now is the time to take action. The good news is you still have time left to accumulate assets and implement a strategy. Below are a few good starting steps to get you back on track:

Estimate your funding need.
 
Every plan needs an endpoint. Imagine if you started a road trip without a destination. You’d likely wander without making much forward progress. Your retirement strategy is no different. You need to know your end goal so you can track and monitor your progress.
 
In a retirement strategy, your end goal is the amount of money you need to save to fund your retirement. It’s based on your specific needs and goals and your expected lifestyle in retirement.
 
You can estimate your retirement number by developing a projected budget. List all your planned expenses and estimate their costs. Then add them up to project your total annual expenses in retirement. Assume that you’ll be retired for decades, and multiply your annual cost of living by an estimated number of years in retirement. That’s your total funding need.
 
During this step, it’s important to consider inflation. Your cost of living will likely increase throughout your retirement. Be sure to consider that as you estimate your savings goal. Also, you may want to consult with a financial professional to help you develop a precise funding goal.

Use a budget to save more money.
 
A simple budget may be the most powerful financial tool at your disposal. A budget helps you manage your spending and track your progress toward large financial goals, such as retirement. Unfortunately, nearly 60 percent of Americans don’t use a budget.2
 
If you’re among that group, now may be the time to make a change. List your expenses and look for areas to cut back so you can increase your retirement contributions. You may want to find ways to reduce your debt or cut spending on discretionary items like dining out or entertainment. Develop a budget and stick to it so you can maximize your savings.

Invest in your ability to increase your income.
 
Perhaps your most powerful strategy is to increase your income so you can save more for retirement. That may be easier said than done. However, you may have years or even decades left in your career. If you can increase your earnings and then put the extra income toward retirement, that will go a long way toward helping you overcome your savings gap.
 
Look for opportunities to advance and grow in your career. Perhaps you need to further your education or expand your skill set at work. Maybe you should consider freelance work opportunities to supplement your current income.
 
Ready to develop your retirement strategy? Let’s talk about it. Contact us today at Rex Financial Group. We can help you analyze your needs and goals and develop a plan. Let’s connect soon and start the conversation.
 

1https://www.thinkadvisor.com/2016/08/23/transamerica-survey-highlights-american-retirement/?slreturn=20180616152205
2https://money.cnn.com/2016/10/24/pf/financial-mistake-budget/index.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
17848 – 2018/7/30
 

​If you’re approaching retirement and feel like you don’t have enough in savings, you have company. A recent study from the Transamerica Center for Retirement Studies found that baby boomers have a median retirement savings balance of only $147,000.1 That figure is likely to be well short of what most retirees need to fund their desired standard of living.
 
Retirement has become an increasingly difficult financial challenge. Most workers no longer have the benefit of a pension. Retirees also have to contend with a longer life span, which means they may need to fund more years in retirement. Health care is also a substantial area of expense.
 
The good news is that it’s never too late to correct course and get your retirement back on track. With some careful planning, you can take back control of your retirement. Below are three steps you may want to consider. A financial professional can help you analyze your needs and implement the best course of action.

​According to a recent Gallup study, retirement is America’s top financial worry. The study found that more than 50 percent of Americans are concerned that they won’t be able to fund their retirement.1
 
It’s easy to fall behind on your retirement planning. If you’re like many Americans, you have other financial challenges that may seem more pressing. Perhaps you’re struggling with debt. Maybe you’re paying for your child’s education. When you add up your normal expenses, it may be difficult to find additional funds to put toward retirement.

​According to a recent study from the Transamerica Center for Retirement Studies, the median retirement savings for millennials is $31,000.1 While that may be a good start, it’s well short of what many millennials will need to fund a long and enjoyable retirement.
 
Millennials will face a number of challenges that previous generations didn’t face. The first is longevity. Life expectancy continues to increase. The medical industry is rapidly developing new treatments, services and technologies. It’s possible that millennials will live longer than any previous generation. If so, that means they’ll have to fund more years of retirement, which means they’ll need more savings.
 
There’s also the fact that millennials have to shoulder much of the burden for funding their retirement. Previous generations could rely on employer pensions, but that’s a benefit that has largely disappeared. Social Security benefits could also be reduced in the future if the program’s funding issues aren’t resolved. Personal savings could likely be the primary income source for many millennials in retirement.

​Struggling to pay off your student loan debt? According to statistics from the Federal Reserve, Americans owe more than $1.4 trillion in student loan debt. That’s nearly double the amount Americans carry on credit cards. More than 40 percent of Americans have student loans, and 11 percent of them are in delinquent status on those obligations.1
 
If you’re dealing with student loans, you may not be focused on other financial goals such as retirement. If you have years or even decades until retirement, it may not seem like an urgent priority. Your student loans might consume much of your focus.
 
You could be making a big mistake by ignoring retirement, though. Retirement may be years away, but it’s also a sizable financial challenge. You may need to fund decades of living expenses in retirement. That kind of financial challenge requires a substantial amount of savings.

​Retirement is your time to enjoy newfound freedom. You’re no longer committed to a work schedule. You’re in control of your time. You can travel, pursue a new hobby, enjoy time with loved ones or simply spend time enjoying your newfound freedom.
 
Of course, you may not enjoy retirement as much as you’d like if you’re worried about your financial stability. According to a recent study from Gallup, more than half of Americans are worried they won’t have enough money in retirement. In fact, retirement has been America’s top financial worry since Gallup started the survey 16 years ago.1