What does it mean?

Getting a good return on your investment

Optimizing your Social Security retirement benefits means getting the best return possible on each dollar you invest in the system.  Every pay period, you pay 6.2 percent of your salary in taxes that finance your future benefits (retirement, disability, and survivor’s benefits) and those of other Americans.  In addition, your employer pays an equal share of taxes; if you’re self-employed, you contribute both your own portion and the employer portion by paying a self-employment tax.

Most Americans should plan a benefit strategy

About 96 out of 100 jobs are covered by or are eligible for coverage under Social Security. This means that most Americans will use their benefit coverage at some point during their lives. The amount of Social Security benefits you receive will partly be determined by law, inflation, and other conditions outside your control.  However, if you make wise decisions regarding when you retire and how much you earn, you can increase the amount of benefit you will receive.

Example(s): Mack and Zack are identical twins. Mack retires early at age 62. His monthly benefit is $800. Zack, on the other hand, waits to retire because he knows that his monthly benefit will be 20 percent higher than Mack’s if he retires at age 65 (his normal retirement age). Unfortunately, Zack fails to consider that even though Mack’s monthly benefit is lower, Mack will receive 36 extra benefit checks for retiring early.  So, unless Zack lives past age 77, Mack’s cumulative lifetime benefit will be more.

Will you get out of Social Security what you’re putting in?

Your return may not equal your investment

If you have a 401(k) or another qualified retirement plan, you probably know exactly how much you contribute to it each month.  From year to year, you watch as your savings grow–first doubling, then tripling.  But do you know what you contribute to Social Security? Because Social Security taxes are involuntary (unlike contributions to a private retirement plan), you probably don’t.  You may know approximately what distribution you will receive from an IRA, for example, but when you’re ready to retire, how much of what you’ve paid into the Social Security system will you collect?  The answer to that question is tricky because you may never need to use some of the benefits you have earned. In addition, Social Security is both a pay-as-you-go system of benefits and a social program.  What you pay into the system isn’t exactly what you get out of it. In fact, the more money you make, the less return you may get on your investment because the Social Security benefit formula greatly favors low-income individuals. To read more on articles related to this topic visit http://kenhimmler.com/

How the average indexed monthly earnings (AIME) benefit formula favors low-income individuals

If you retire at normal retirement age, your retirement benefit will be 100 percent of your primary insurance amount (PIA).  Your PIA is calculated by applying a benefit formula to your AIME. If you have had low earnings over your lifetime, your benefit will be much lower than the benefit of someone who had high earnings.  However, because the benefit formula is weighted to favor individuals with low earnings, you will get back a greater percentage of what you put in than someone who had high earnings.

Example(s): Willie, Billie, and Millie are triplets. They all performed in a traveling circus and retired on their 65th birthday after working since age 22.  This is how the benefit formula affected them:

Willie, a lion tamer, had high earnings over the years.  When he retired, his AIME was calculated to be $2,930.  After the benefit formula was applied, his PIA was calculated to be $1,210.20. Thus, his monthly retirement benefit amount of $1,210 is 41 percent of his AIME.

Billie, a trapeze artist, had average earnings over the years. When she retired, her AIME was calculated to be $1,948.  After the benefit formula was applied, her PIA was calculated to be $938. Her monthly retirement benefit amount of $938 is 48 percent of her AIME.

Millie, a clown, had low earnings over the years. When she retired, her AIME was calculated to be $877.  After the benefit formula was applied, her PIA was calculated to be $568.70. Her monthly retirement benefit amount of $568 is 65 percent of her AIME.

One rule that you can’t change

Clearly, the individual with the highest earnings (Willie) receives the highest monthly retirement benefit.  However, the individual with the lowest earnings (Millie) receives the best return on her investment.  Does this mean that you should try to earn less so that you will receive a greater percentage of your investment back?  No. But it does mean that Social Security is a better investment for someone who has lower lifetime earnings than it is for someone who has higher lifetime earnings.  Since Social Security is a compulsory social insurance system, this is one rule that you can’t change.  However, you can make some decisions during your lifetime that will affect the amount of your retirement benefit. For more advice to help you, please visit http://kenhimmler.com/.

Decisions that affect the amount of your Social Security retirement benefit When you receive your retirement benefit

Choosing when to start receiving retirement benefits is a personal decision but one that shouldn’t be made hastily. Taking time to clip grocery coupons may save you a few dollars; taking a few minutes to decide when you want to start receiving retirement benefits could save you thousands. This is because retiring earlier or later than normal retirement age can greatly change the amount of your monthly retirement benefit.

When you retire at normal retirement age, you will receive a retirement benefit equal to 100 percent of your PIA.  If you retire early (often at age 62, but anytime before normal retirement age), you will receive a reduced benefit.  If you retire later than normal retirement age (but before age 70), you will receive an increased benefit.  Because you want to receive the highest benefit, you want to postpone retirement as long as possible, right? Not necessarily.  Even though you will receive less money per month if you retire early, over your remaining lifetime you may receive more than someone who retired late or at normal retirement age.  For example, if you retire at age 62, you will receive 36 more benefit checks than someone who retires at 65.  This may add up to a substantial amount of money that will be difficult to compensate for even with an increased benefit check.  On the other hand, you may want to work as long as possible because you need to provide for your family. In addition, if you postpone receiving your Social Security retirement benefit, you will increase your benefit substantially because your monthly earnings may increase and you will receive a late retirement credit.

Tip: When deciding at what age you want to begin receiving Social Security retirement benefits, consider other retirement benefits you may receive as well.  For example, you may be able to retire at age 62 (or earlier) and begin receiving a pension from your employer as well as a Social Security supplement that will pay you a benefit equivalent to what you would receive from Social Security until you reach normal retirement age.

How much you earn during your lifetime

Since your retirement benefit check will be based on your average monthly earnings, earning more during your lifetime is one way to maximize your Social Security retirement benefit.  The indexed income you receive in a certain number of your highest earnings years (usually 35) is added up and divided by the number of months that elapsed during those years. The result is your AIME amount. Then, a benefit formula will be applied to determine your PIA upon which your monthly benefit will be based.

You can’t increase your monthly benefit by changing the formula used to calculate it; that formula is determined by law.  However, you may increase your monthly benefit by increasing your AIME amount.  You may also wish to increase your AIME to ensure that you will be eligible for minimum Social Security benefits in the event that you’ve worked only sporadically in a job covered by Social Security.

How much you earn after you retire

Part of your Social Security retirement benefit is not payable if you’re under normal retirement age and have earned income in retirement in excess of a certain amount. This amount is known as the retirement earnings test exempt amount. In 2008, you can earn up to $13,560 (up from $12,960 in 2007) if you have not yet reached normal retirement age or up to $36,120 (up from $34,440 in 2007) during the year you reach normal retirement age (up to, but not including the month you reach normal retirement age).  If you make the same as or less than these amounts, your Social Security retirement benefit won’t be reduced.

Once you have reached your normal retirement age, your earnings in retirement won’t reduce your Social Security benefit.  So to optimize your benefit, you can calculate how your earned income might affect your benefit and consider postponing any earned income in retirement until you reach your normal retirement age.

Get the information you need to plan your strategy

Before you can plan a strategy to optimize your retirement benefits, you need to find out what benefits you are entitled to and how much you might receive. The SSA will provide you with a free estimate of your future benefits, as well as a list of what benefits you are entitled to based on your insured status. This Social Security Statement can also be used to check your earnings history.

For more information on financial planning, visit www.iamllc.biz 

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You may be currently earning a great salary, paying for a fabulous home, driving the most expensive new Lexus, and traveling to exotic places around the world.  However, what will you be doing when you retire?  Whether you’re 29 or 59, or whether you earn $100,000 or $20,000 each year, retirement is in your future, and you need to keep your retirement plan in check.

Did you know most people enrolled in a personal retirement plan, such as a 401(k) or Roth IRA, do not review and update their plans regularly?  By ignoring your retirement plan, you could end up experiencing an extremely limited budget when you do retire.  If you want to live a comfortable and enjoyable retirement, you need to spend time at least once a year to make sure you are contributing enough based on your planned retirement needs.

Are You Close To Retirement?

Are you 5 to 10 years from retirement or nearer?  You need to evaluate your personal retirement savings allocation or you could be losing a great deal of your retirement right now.  With the stock market feeling losses almost every day since the fall of 2008, retirement savings accounts with aggressive investments may be losing value.

When setting up a personal retirement savings account, most people do not re-allocate their investments as they approach retirement age.  This could be a drastic mistake.  Consider your risk tolerance at age 25 versus 55, and you can clearly understand the importance of managing your investments as you age. 

A typical retirement savings account strategy is to allocate more percentage of your funds into safe investments like CDs and bonds.  Though safe investments offer less return in interest, they also do not lose value in an economic downturn, such as what we are currently experiencing. 

Individuals near retirement should take a look at their personal retirement savings today to ensure that they are not losing precious retirement monies invested in dwindling stock values.  Ask a qualified retirement expert such as www.kenhimmler.com for great advice on your retirement plan allocations.

How Much Will You Need At Retirement?

Most individuals and families, when setting up a retirement plan, do not evaluate their potential retirement needs on a regular basis.  Though a retirement budget is based on an individual or a family’s desired lifestyle, usually around 70% – 80% of regular full-time income at retirement age, most do not realize that they may not be saving enough.  With longer life expectancies, as well as the exponentially rising cost of healthcare, what you have allocated for your retirement may not be enough to support you through your golden years. 

Your retirement budget will probably come from three typical sources: Social Security, company pension, and your personal retirement savings, such as a 401(k) plan.  The only one of these that you are in control of is your 401(k) plan, or other personal retirement savings account – and it is these funds that will provide most of your retirement budget.  If you do not save enough from your own wages during your working career, you could face a very limited retirement budget.  Make sure you review your retirement budget needs and make retirement plan contribution changes as necessary every year based on your updated retirement savings calculator figures. 

Retirement never seems to be an important issue in the here and now.  However, economic downturns like the current one can affect millions of soon-to-be retirees.  And even if you’re still 30 years away from retirement, you could be short-changing yourself by not contributing enough.  Take a moment today or this week to review your current retirement plan and speak with a retirement planning expert at www.iamllc.biz.  It could help you enjoy a more fulfilling retirement.

Authored by Kenneth Himmler, Sr.

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There are respectable debt consolidation parties who will do everything they can to free you from your debt,but there are also numerous scam artists out there so you must  be conscious of how to distinguish the difference.

You can be defrauded by debt consolidation companies in 2 manners. The first fashion is they state to you not to make a number of payments while they acquire you a resolution deal.Then they receive your cash that you’ve saved for the settlement seemingly preserving it for you, but calendar months afterwards, come time for the resolution, the company cuts out on you with your money leaving you with an empty pot and a bunch of hungry lenders.

Another scam by problematic debt companies is when they get your cash and don’t make your payments as agreed. Ascertaining with your creditors to ascertain that they are receiving payment is simple enough although some people just assume that since the company took their cash they’d induce the requitals accordingly.

On the other hand there are quality parties out there that practice the correct things as well, you just must be thorough. In order to protect you money the most healthful thing to do is research before you pick out a party. Make sure any company you are thinking of working with is referenced with the BBB and doesn’t have any complaints against them. You can likewise explore the company on google or google blogs and discover what people state about the party. You should also make sure that they can be reached by phone.

You should also make sure that you’ve picked out a debt consolidation company in opposition to a debt reduction company. They are not alike and debt reduction will eradicate any positive credit rating you could possess. They stimulate your creditors to resolve for less than what you owe but your credit rating is struck as an effect.

Absolutely be sure to receive EVERYTHING in writing so you always understand what’s going on. Keep tabs on companies getting your requitals and do your homework before you join with a debt consolidation company or program. Likewise debt education can instruct you how not to make the same errors once more.

While debt consolidation is not invariably the most effective option, it is usually better than debt reduction and there should be less fear about being gypped. Simply don’t give up looking for the most dependable place to represent your business and you will discover the fitting companies out there that wish to serve you.

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If you care about what happens to your money, home, and other property after you die, you need to do some estate planning. There are many tools you can use to achieve your estate planning goals, but a will is probably the most vital. Even if you’re young or your estate is modest, you should always have a legally valid and up-to-date will.

This is especially important if you have minor children because, in many states, your will is the only legal way you can name a guardian for them. Although a will doesn’t have to be drafted by an attorney to be valid, seeking an attorney’s help can ensure that your will accomplishes what you intend.

Wills avoid intestacy

Probably the greatest advantage of a will is that it allows you to avoid intestacy. That is, with a will you get to choose who will get your property, rather than leave it up to state law. State intestate succession laws, in effect, provide a will for you if you die without one. This “intestate’s will” distributes your property, in general terms, to your closest blood relatives in proportions dictated by law. However, the state’s distribution may not be what you would have wanted. Intestacy also has other disadvantages, which include the possibility that your estate will owe more taxes than it would if you had created a valid will.

Wills distribute property according to your wishes

Wills allow you to leave bequests (gifts) to anyone you want. You can leave your property to a surviving spouse, a child, other relatives, friends, a trust, a charity, or anyone you choose. There are some limits, however, on how you can distribute property using a will. For instance, your spouse may have certain rights with respect to your property, regardless of the provisions of your will.

Gifts through your will take the form of specific bequests (e.g., an heirloom, jewelry, furniture, or cash), general bequests (e.g., a percentage of your property), or a residuary bequest of what’s left after your other gifts.

Wills allow you to nominate a guardian for your minor children

In many states, a will is your only means of stating who you want to act as legal guardian for your minor children if you die. You can name a personal guardian, who takes personal custody of the children, and a property guardian, who manages the children’s assets. This can be the same person or different people. The probate court has final approval, but courts will usually approve your choice of guardian unless there are compelling reasons not to.

Wills allow you to nominate an executor

A will allows you to designate a person as your executor to act as your legal representative after your death. An executor carries out many estate settlement tasks, including locating your will, collecting your assets, paying legitimate creditor claims, paying any taxes owed by your estate, and distributing any remaining assets to your beneficiaries. Like naming a guardian, the probate court has final approval but will usually approve whomever you nominate.

Wills specify how to pay estate taxes and other expenses

The way in which estate taxes and other expenses are divided among your heirs is generally determined by state law unless you direct otherwise in your will. To ensure that the specific bequests you make to your beneficiaries are not reduced by taxes and other expenses, you can provide in your will that these costs be paid from your residuary estate. Or, you can specify which assets should be used or sold to pay these costs.

Wills can create a testamentary trust

You can create a trust in your will, known as a testamentary trust, that comes into being when your will is probated. Your will sets out the terms of the trust, such as who the trustee is, who the beneficiaries are, how the trust is funded, how the distributions should be made, and when the trust terminates. This can be especially important if you have a spouse or minor children who are unable to manage assets or property themselves.

Wills can fund a living trust

A living trust is a trust that you create during your lifetime. If you have a living trust, your will can transfer any assets that were not transferred to the trust while you were alive. This is known as a pour-over will because the will “pours over” your estate to your living trust.

Wills can help minimize taxes

Your will gives you the chance to minimize taxes and other costs. For instance, if you draft a will that leaves your entire estate to your U.S. citizen spouse, none of your property will be taxable when you die (if your spouse survives you) because it is fully deductible under the unlimited marital deduction. However, if your estate is distributed according to intestacy rules, a portion of the property may be subject to estate taxes if it is distributed to heirs other than your U.S. citizen spouse.

Assets disposed of through a will are subject to probate

Probate is the court-supervised process of administering and proving a will. Probate can be expensive and time consuming, and probate records are available to the public. Several factors can affect the length of probate, including the size and complexity of the estate, challenges to the will or its provisions, creditor claims against the estate, state probate laws, the state court system, and tax issues. Owning property in more than one state can result in multiple probate proceedings. This is known as ancillary probate. Generally, real estate is probated in the state in which it is located, and personal property is probated in the state in which you are domiciled (i.e., reside) at the time of your death.

Will provisions can be challenged in court

Although it doesn’t happen often, the validity of your will can be challenged, usually by an unhappy beneficiary or a disinherited heir. Some common claims include:

• You lacked testamentary capacity when you signed the will
• You were unduly influenced by another individual when you drew up the will
• The will was forged or was otherwise improperly executed
• The will was revoked

For more information on financial planning, visit www.iamllc.biz 

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As the price of just about everything is on the rise, and as family budgets and business budgets alike are being stretched to the limit, it seems that effective healthcare financial management is even more important than ever. In these economic times of upheaval and uncertainty, making sure that financial management for healthcare is done well is a very high priority for the healthcare providers and the patients, as well as for the insurance companies paying the claims.

These days there are a number of financial management services for healthcare that provide specific solutions and have been specially designed for the healthcare organizations and the medical professionals involved in providing care for their patients. While there are many money management software programs and many common needs in the healthcare industry, not all of these solutions are right for every healthcare provider and so it is essential to find the right match in order to gain the best benefits for the situation.

Many of the healthcare financial management companies that offer professional money management services for the healthcare field provide basic, stock solutions that cover the needs and demands of most healthcare groups. These basic financial management solutions more than often will provide all of the functionality that is needed for the majority of healthcare providers.

This is because, in general, there is a great deal of commonality in practices and procedures throughout the healthcare industry, from individual doctors, to clinics, to large hospitals. These operations run under very traditional and standard practices and typically enjoy being able to implement standard financial management solutions, which are very effective in the overall business financial management needs of the organization.

At the same time, as with all companies in the business world, there are those healthcare organizations that have unique and special needs, in terms of the cash management products and financial management solutions that they need. For these providers, there are many healthcare related financial management solutions that can be custom tailored to perfectly match the needs of the business and help the company to reach any unique business objectives that have been set up by the management of the company.

Healthcare related financial management solutions are often able to provide the healthcare organizations with significant savings. There are many clients of some of the best financial management systems available that claim that they were able to save 20% to 50% by using the right financial management services.

The complete healthcare financial management classifications that are available today are fully capable of dealing with every facet of money management for a particular healthcare organization. Some of these functions include medical bill reviewing, medical audits, claims, collections and many other crucial functions that are all absolutely essential to operating a solvent healthcare concern in this day and age.

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There are a lot of promises about Secrets of the Millionaire Mind, and you might start out feeling skeptical about this book’s ability to deliver on them - I know I did.  T. Harv Eker claims that in just five minutes, he can predict your financial future for a lifetime!  However, if you pay more attention to the book and what it has to say, it could make a huge difference in your opinion.

Every one of us has certain attitudes about success and money, which can push us forward to success or hold us back.  That’s pretty much the biggest thing that Secrets of the Millionaire Mind can teach us.  Each one of us has our own internal money blueprint, which decides how our financial stories progress and how we act towards money.

This means that even with the knowledge I have about stocks, finances, sales, marketing and real estate, without the right money blueprint, I’ll have a lot more trouble succeeding.  The good news is that every one of us can change our internal money blueprint to one that can make us a lot more successful.  That’s what Secrets of the Millionaire Mind can do for us - teach us to fix our blueprints.

We’ve been programmed to either be rich or poor, and for most of us, that programming has caused us to be poor.  However, I’ve managed to change the way I think about money recently, and so can you.  If you want to be a millionaire, first you have to think like a millionaire.

This book spends a great deal of time talking about our financial blueprints and telling us about our money-related beliefs and why we have them.  However, this blueprint metaphor isn’t allowed to obscure the real message.  On our own, it’s hard to identify what holds us back, but Secrets of the Millionaire Mind has the ability to show it to us and help us fix it.

This process might take longer and seem slower than you want, but each time you open up the book, changes are really taking place.  You’ll actually begin getting results, even though the journey to success takes quite a bit longer.  This really is million dollar advice, but it doesn’t cost that much.

Should you check out Secrets of the Millionaire Mind and see what it can do for you?  That depends - there are probably some people out there who shouldn’t read this book.  Anyone who’s not willing to deal with the discomfort of having their mind changed and thinking about money in a whole new way should definitely steer clear; after all, it takes some dedication to learn a new way of thinking.

If you have the determination to succeed, however, this book really is for you.  You won’t spend your time going through lots of positive affirmation, and some of the things you’ll learn might actually be fairly uncomfortable.  However, you’ll know that they’re true as soon as you hear them.

If I could change my mind about the way finances work, you can too, and the perfect way to do it could be through Secrets of the Millionaire Mind.  Check this book out, see what it can offer you, and get your start on the road to success.

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T. Harv Eker’s training company, Peak Potentials hopes to inspire and help people live free of fear, obligation, need and want.  While that sounds like a pretty big promise, and I was dubious at first, you’ll see that it’s not.  While getting rid of our problems and negative emotions sounds difficult, it can be done.

It isn’t impossible, however, and this program can show us all how to reach to our peak potential.  Once I found out that this was one of the fastest growing companies out there that was helping people reach their own peaks, I started looking further.  You’ll be amazed at what I discovered.

The goal of Peak Potentials is to help people discover and overcome the hidden obstacles that have been holding us back from our real potential and making us unhappy.  With over five hundred thousand clients who’ve transformed their lives, this isn’t an unproven startup, either.  Participants in the program experience big changes - both long term and right away - that help them have better relationships, happier lives, and more sound financial situations.

Could you use this program to improve your life?  There’s a very good chance that it has something to offer you.  Of course, when your goal is the peak, you need to understand that it’s going to take some effort to get there.

Peak Potentials has a lot to offer us, but we’re the only people who can really rise to our own personal peaks.  Without the dedication and effort I put in, I would never have come to the place I’m in today.  Anyone expecting an easy, positive thinking course should look at another program.

If you’ve got the knowledge and dedication, and you know that actions are more important than words, however, you could be just the person for Peak Potentials different courses.  They help you along, too - each time you feel like stopping on the trail, you’ll get the assistance you need.  There’s something very comforting about the knowledge that you have guides who’s been there to show you the way.

This program really does live up to the promise its title offers providing lots of different resources that can help us get all the way to the top of our own private mountains, just by changing how we think.  We’ll have to get rid of our doubts and fears if we want to make it.

You might be dubious, and I wouldn’t blame you.  However, if you’re dedicated to changing your life, you owe it to yourself to at least see what Peak Potentials can offer you.  You’ll be amazed by the difference just one of their courses can make in your life.

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