Saving for Retirement: Are you Ready?
Presented by: Matt Clayson
It’s Never Too Late to Get Started
Will I have enough money to retire? It’s a common question and one that has increased in magnitude lately – especially for people in their 40s and 50s.
Indeed, a MassMutual study in 2018 found that the greatest worry for those on the edge of retirement was not having enough money to enjoy themselves, and this was without even considering whether they might need to find money so that they are able to get help with their everyday tasks from something like this in-home senior care in North Nashville service.
This can generate a feeling of frustration. You’ve been working hard for over 20 years. You’ve been saving as much as you can. When the market crashes, your savings disappear. It’s not too late to bounce back. Even if you’re 55 years old and decide that today is the day to begin saving in earnest, you still have time to build up income for retirement.
On your mark, set your priorities, go
Determine what you want out of your retirement…what are your priorities? Sit down with a pen and paper and start a list. Empower yourself to make the important decisions today that will set tomorrow in motion:
- When do you want to retire?
- Where do you want to live?
- What kind of lifestyle do you want to lead?
- Consider your current lifestyle. Can you cut back to save more for retirement?
- How much extra money would you require to support your retirement lifestyle?
- Would you be needing to consider anything like Home Care services in the future?
- Have you thought about your medical expenses during your golden time?
These are just some of the questions you should be asking – and answering – yourself. So take the first step and start making some decisions. All of this necessitates a great deal of planning, so if you’re going to move into active adult housing once you retire, start looking for them as soon as possible.
Save more, spend less
The most obvious advice still applies: save more, spend less. But there’s more to it than that.
Create a budget to help you stay on track – and actually stick to it. Decide where you can trim your expenses. What can you live without now so you can have more later?
If your budget isn’t working, you may want to consider downsizing to a smaller home or a less expensive location to help maintain your standard of living. This may be a difficult exercise, but remember you’re trying to catch up. Additionally, you can get in touch with senior home facilities (similar to the ones providing Senior Home Care Services in Naples, FL) if you want to lead a life wherein you would not have many decisions to make or hassles to endure.
Speaking of catching up, if you will be age 50 or older at the end of the calendar year, you can take advantage of catch-up contribution options to accelerate the growth of your retirement accounts. The bottom line: make the maximum contributions possible to your employer’s retirement plan, including any available catch-up options.
Think outside the box
There are certain financial products and savings instruments that you may not be familiar with, but that may help you get more out of your money. Many people opt to consult a financial professional to help become aware of options and lay out a plan.
Delay retirement (The beach will wait for you)
People are working longer than ever before. Delaying your retirement by three years from age 62 to 65 can boost your assets significantly – thanks to the combination of making extra contributions to your employer-sponsored retirement plan, not taking withdrawals and allowing your funds more time to grow.
In addition, if you anticipate receiving Social Security retirement benefits, it’s important to understand that monthly benefits differ substantially based on when you start receiving them and the filing option you choose. For every year you postpone collecting benefits beyond your full retirement age (typically 66 or 67), you can earn an annual delayed retirement credit of up to 8 percent.
On the flip side, filing for benefits before your full retirement age can permanently reduce your monthly income. Benefits will decrease based on how early you retire..
The bottom line is that there are real steps and strategies you can take today to help secure your future. It’s never too early or too late to evaluate your current retirement savings plan – or create a new one.
This Old House, Needs Some Updates
Staring at the same four walls for the past year may have triggered you to start thinking about making some changes. Many of us have taken the opportunity to tackle home projects this past year. In 2020, Farmers Insurance surveyed homeowners and found that 62% of those polled are planning renovation similar to window replacement with the help of contractors like Five Seasons (who are known to offer door and window replacement in Denver and nearby areas). However, of those planning renovations, only 28% said they understand their homeowner’s policy. If you have already completed or are thinking about making changes, here are a few insurance considerations.
- Additions
- Your homeowners’ insurance covers the house as it is right now. Your home’s value can rise above the limits of your insurance by expanding its square footage and adding a garage or pool. In this way, when you make such improvements, you’ll be able to negotiate a better price with home buyers who advertise themselves claiming – we buy houses in kennesaw or elsewhere.
- Improvements
- The most common, and costly, improvements are made when updating bathrooms or kitchens. Upgraded finishes such as countertops, cabinets, and fixtures may leave a gap in coverage. This is especially important for condo unit owners. As a unit owner, you may be responsible for any improvements made after the purchase, such as painting the walls (do this yourself or hire a professional by browsing for a “house painter near me“), repairing the roof and foundation, and installing new fixtures, among other things.
- Faulty Work
- Your policy most likely wont supply coverage for faulty work. For instance, if you update your electrical system and down the road it leads to a fire, there may be coverage for damage caused by the fire, but the cost to correct and replace the electrical components would be out of pocket.
- When choosing a contractor, always request to see their certificate of insurance. Contractors should have coverage for liability, property, and workers compensation. In the event they do not have adequate insurance, you may want to consider a different contractor. If a contractor causes damage to your home, their insurance should be the primary option for recovery.
In summary, its important to ensure you have adequate coverage in place and are clear on the risks that come with home improvement. If you are planning or recently completed a renovation, please contact us to ensure your new investment is adequately protected!
Business Interruption Insurance 101: During the Pandemic and Beyond
More than a year into the COVID-19 pandemic, businesses have gotten used to a “new normal.” But with new waves of the virus surging and wide-spread distribution of a vaccine still to come, small businesses need to know how to manage their risks.
We’ve shared the top questions you need to ask your insurance broker during the worsening pandemic. We also know that one of the biggest questions on business owners’ minds is about business interruption.
If your business has to shut down during the latest wave of the pandemic, do you know if you’re covered by your insurance policy? Even if you have business interruption insurance, you probably are not covered.
Read on to learn what business interruption insurance is, what it covers, and whether the pandemic will have any long-term effect on these policies moving forward.
What is business interruption insurance?
Business interruption insurance is a policy that helps businesses recoup income lost when operations are halted due to direct physical loss or damage. While not usually sold as a stand alone coverage, business interruption insurance is often included as an add-on to a comprehensive business owner’s policy or a commercial property insurance policy.
Looking for commercial insurance? Speak with a Cleary Insurance representative to make sure your business’s unique challenges and risks are covered.
What events are covered?
Business interruption insurance applies after covered events that result in physical damage to business property, thereby preventing operations from running as usual. Examples of covered events include:
- Fire
- Natural disasters, like tornadoes and hurricanes
- Wind
- Lightning
- Vandalism or damage from riots
However, not all catastrophes are covered by business interruption insurance. Exceptions include:
- Floods and earthquakes. These are typically covered under a separate policy.
- Policies have exclusions for losses due to viruses or communicable diseases, as these do not cause direct physical damage.
What types of losses are covered?
Business interruption insurance typically covers the following expenses:
- Operating expenses, including mortgage, rent, or lease payments
- Moving to a temporary location & reasonable expenses to keep the business operating
- Payroll
- Taxes
- Loan payments
- Profits that would have been earned, based on documented pre-loss earnings. If you can’t prove you would have earned that income, you cannot submit a claim against it.
- Replacing machinery and retraining employees
Please also note that claims are only paid out if the insured business actually sustains a loss as result of the business interruption.
How long does coverage last?
Business interruption insurance coverage lasts until the end of the business interruption period, as specified in your policy. The standard policy limits the restoration period to 30 days, but this can often be extended up to 1 year by endorsement.
How much does business interruption insurance cost?
Business interruption insurance average cost varies based on factors like:
- Industry
- Number of employees
- Amount of coverage
- Prior claims
- Location
When calculating the cost for your business, keep in mind that business interruption insurance premiums are tax-deductible.
How much coverage do you need?
We recommend that you choose a coverage limit appropriate for your business, based on factors like how long it would take your business to resume operations following a loss.
Work back from the worst-case scenario – how long would it take you to repair the physical damage, get new equipment, and retrain staff? Keep in mind that if your costs exceed your coverage limit, you will have to pay out of pocket for extra expenses.
At Cleary Insurance, we work with business owners to help them get the right amount of coverage based on their specific business risks, earnings, and projections. If you’re unsure what that looks like for your business, we can help.