Source: Kiplinger

]]> http://www.brooksfinancialplanning.com/mortgages-top-new-agencys-agenda/feed 0 http://www.brooksfinancialplanning.com/trying-to-figure-out-the-health-care-reform http://www.brooksfinancialplanning.com/trying-to-figure-out-the-health-care-reform#comments Mon, 21 Jun 2010 13:25:38 +0000 admin http://www.brooksfinancialplanning.com/?p=436 There is no possible way to immediately know the details and evaluate the impact of this bill.  Part of the reason is that we confuse bringing down the price of medical care with bringing down the cost.  Then we confuse medical care with health care.

What we do know is that in 2010 an adult who has a pre-existing medical condition can join a high-risk insurance pool.  Children with pre-existing conditions will now be covered.  Preventive services are now fully covered with no required co-pays or deductibles.  Medicare part D enrollees will get a $250 rebate.  Some small businesses will begin to get tax credits to partially offset employee insurance costs. And the first tax begins – 10% on indoor tanning services.

From time to time (as we figure out more details) we will bring you additional information on this landmark legislation.

(Sources for this information are the House Energy and Commerce Committee, Speaker’s Office, WhiteHouse.gov, Kaiser Health News, and the Congressional Budget office, www.politicsdaily.com)

1. You value the security and peace-of-mind of having your house paid off.
2. You are paying a higher mortgage rate than your money is earning…your mortgage is at 5% and your savings are earning 3% in a CD.
3. You are in a lower tax bracket and you have only a few years left on your mortgage payments.
4. You are planning to downsize or move to another less expensive area.

Retirement planning needs to begin long before your last day of work.  Call Brooks Financial Planning for a real time review of your specific situation.  We can help you evaluate the pros and cons of this important decision.

1. You do not qualify for retirement until age 66 or 67.  You do qualify for Medicare at age 65 while you are still covered by an employer’s medical insurance and you don’t want to duplicate coverage (and costs).
2. You prefer to have coverage from Medicare even though you are still working,
3. OR you may be covered by a spousal program.

Regardless of your specific situation, you need to be mindful of at least six Medicare enrollment periods.  They are:

1. Initial enrollment period
2. The general enrollment period
3. The annual election period
4. Special enrollment periods
5. Possibly Medicare Advantage open enrollment
6. Medigap enrollment period (separate from Medicare coverage)

Missing some of these deadlines will result in penalties of 10%, or worse, a gap in coverage.  You need to apply to be enrolled in Part B of Medicare. (Part A is automatic enrollment.)  Then there is enrollment in Part D, which is prescription coverage.  It has its own set of rules and penalties for not enrolling in timely fashion.  Medigap enrollment (to cover the 20% not insured by Medicare) requires another constellation of decisions.

You spend years planning for retirement and getting details in place to be sure you can enjoy your golden years.  In order to be sure you are fully covered for medical concerns you need to know these deadlines.  A personalized review of your specific situation and options will be time well spent and may assist you in avoiding irrevocable penalties.  Call Brooks Financial Planning to schedule a time to get this portion of retirement planning put into place.

Source: Kiplinger

]]> http://www.brooksfinancialplanning.com/smart-moves-for-lifes-big-events-easing-into-retirement/feed 0 http://www.brooksfinancialplanning.com/buying-precious-metals http://www.brooksfinancialplanning.com/buying-precious-metals#comments Mon, 24 May 2010 12:28:46 +0000 admin http://www.brooksfinancialplanning.com/?p=407 Listen to my Podcast below and let me know your thoughts.  What is your favorite precious metal?

How can I find a good fee-only financial planner?

by Jane Bryant Quinn

You can find a good fee-only planner through one of the following Web sites:

• National Association of Personal Financial Advisors, about 1,270 planners in all states. To see if there are any near you, go to its Web site and type in your zip code. When names pop up, click on their profiles, where they announce their specialties. Some look for clients of high net worth. Others say they serve “middle income client needs.” If you don’t see the “middle income” phrase, email local planners, explain the services you want, and ask if they offer advice by the hour or by the job. Some take hourly clients without advertising it. You can also get names of fee-only planners by mail. Call NAPFA at 800-366-2732.
• Garrett Planning Network, a group of about 300 planners in 41 states. They work on an hourly basis, with no minimum required. Fees range widely — at this writing, the majority charge $180 to $210 an hour. Middle-class clients are their specialty.
• Alliance of Cambridge Advisors, a group of about 145 planners in 33 states, also specializing in middle-class clients. They usually charge annual retainers covering all their services, although some of them might give you a onetime financial tune-up for a fee.
• Personal Financial Planning Center the site for certified public accountants who are personal financial specialists. Enter your zip code to get the names of local planners. Click on their names to see if they charge only fees. A few of these planners sell products on commission, so ask about it.
• Certified Financial Planner Board of Standards. Click on “Search for a Certified Financial Planner” to find CFPs in your area. Some will be “fee based” or “fee offset,” others are “fee only.” Go to their Web sites to find the true, fee-only planners.
• Financial Planning Association. The majority of these planners charge commissions, but the group includes some fee-only planners too. Go to Planner-Search, search for local names, and inspect their listings. Those who advertise as “fee based” or “fee offset” charge commissions. You want the planners who are “fee only.”

It’s also important to remember that there’s more to pre-retirement planning than your portfolio alone – that’s only one part of it. For example, if you don’t have adequate health insurance all it takes is one bad physical ailment to have your portfolio all but disappear within a week or so.

The first step you must take in preparing for your retirement, no matter what your current situation, is to start building up a cash reserve. Ideally you should have enough cash to see you through at least one year, preferably two, without having to touch your stocks. When I say cash, I really mean any of your safe liquid investments including treasury bills and money market mutual funds.

Remember that you will have your social security and your pension to help tide you over. If you expect $20,000 from social security and $15,000 from your pension and you need to have $50,000 a year in retirement, then you’ll  need to come up with $15,000 for your first year.

Your stocks will grow enough over time to cover you in future years but having a cash reserve will give your portfolio time to grow. If you start trying to put some of your retirement savings into cash now, that would be a great start. It will build up over time.

If you would like to discuss your pre-retirement planning in further detail, contact Colorado Springs Financial Planner Mary Brooks at Brooks Financial Planning today to discuss your options.

When the downturn came it was beyond the memory of many.  Those of us who were around in the 1970’s remember a downturn that was unsettling, to say the least.  The current economic cycle has brought out the best of the doom and gloom writers and it is time to take control of our own thinking and our own financial destinies.  For specific details of just how to do that, click below….

1.     Have a monthly cash flow plan.  (Budget is such a disagreeable word).  When you have taken control of your spending and know where your money goes, your sense of accomplishment is enhanced and you are empowered by that control.

2.    Check on your life and disability insurance policies.  Many have disability coverage through employment and think nothing about it, beyond that awareness.  Know what is covered and how it will work if it is needed.  Same thing is true for life insurance.  The information you glean will be a source of comfort and security.

3.    Know what your assets and liabilities add up to.  There are percentages that are recommended you not exceed when determining your debt burden.  It is good to know what those guidelines are.  That information will allow you to feel confident about your decisions and options.

4.    Establish specific short, intermediate, and long term goals.  Review your options for saving for these good purposes.  Using tax deferred investment options will enhance your progress.  Remember to measure your savings success by the progress toward your goals, not the day-to-day view.

Do these 4 things and you will find a sense of empowerment, comfort and security, confidence, and success for yourself.  Clearly your world can be a source of very good news for you!