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Greetings! ,
Well, believe it or not, our jonquils are coming up and the robins are making an appearance. We can only hope that the Orioles will too. Can Spring be far behind?
It is this time of year that we all begin to think of Spring cleaning and getting our house in order. After all we want to be ready to get outdoors when the warmer weather starts rolling in.
We should also take the time to make sure that our Financial House is in order. If you have not funded your IRA for 2012, you have until April 15th or up until the time you file your taxes which ever comes first. If you are under age 50, you may contribute up to $5000. If you are age 50 and over you may contribute up to $6000.
Want to get an early start for 2013? Great news here! This year if you are under age 50 you may contribute $5500. If you are age 50 and over you may contribute $6500.
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The Four C's of Retirement
Simplify retirement planning by homing in on these general guidelines |  Given the amount of information swirling about the economy in general and, more specifically around retirement planning, it can be helpful to simplify one's thinking. Consider perhaps, the four C's of retirement as a way to become more focused and confident about retirement. Developed by Allianz Life Insurance Company of North America, the four C's are clarity, comfort, cost of living and certainty. The four C's, states Gary C. Ghojwani, chairman of Allianz Life, are "a new way of thinking about retirement income planning that was inspired by the diamond industry, which boiled down the infrequent, complex, emotional and significant purchase of a diamond into the 4 C's of 'cut, clarity, color and carat.'" Clarity "The first of the 4 C's, clarity is the analytical process of gathering facts to see the big picture and understand how one's savings will come together to fund retirement," Ghojwani writes. "Clarity also comes from learning income strategies and how risks, such as inflation, may affect their portfolio." Among the questions retirement planners should ask are: - How much income do I need?
- What sources of guaranteed income do I already have?
- What is my risk tolerance?
One way to start, advises U.S. News and World Report, is to "run your numbers." "Once you know how much you will get from Social Security (and a pension if you have one)...estimate the annual income you need to pay all your bills, subtract the amount you will get from Social Security and a pension, then multiply that amount by 25 or 30 years...," writes the website's retirement editor, Emily Brandon. Comfort This may be the most important C of them all. After all, isn't comfort the point of retirement planning in the first place - determining what a person needs in order to feel comfortable in retirement and then figuring out how to reach that level of financial security? "To feel truly comfortable, people need to feel their money will last," Ghojwani explains, pointing to a 2011 Allianz Life study in which 76 percent of baby boomers said they would choose a financial product with a 4 percent return that would be guaranteed to retain its value over a product with an 8 percent return that would be vulnerable to market risk. Cost of living Retirement planners can't forget about inflation, because it will decrease the value of any money they save right now. In particular, experts point to the effect of inflation on health care costs. "If you're a 65-year-old female, your actuarial average lifespan is another 20 years," writes Jason Hull of U.S. News and World Report. "That's a long time of average life expectancy, and with inflation - particularly healthcare inflation - you will need to continue to grow your portfolio." "For that reason," Ghojwani states, "boomers will want to consider shifting some assets into a retirement vehicle that grows income as their personal protection against inflation." Certainty We can count on more than just death and taxes, says Ghojwani. Americans should add increasing life expectancies and market volatility to the list, which means that retirement planners and retirees alike can easily begin to feel uncertain about their own future. On the other hand, he explains, certainty is still attainable. "To achieve a level of certainty, one strategy is to convert a portion of assets that are exposed to volatile markets into a guaranteed-income product such as an annuity that is backed by the claims-paying ability of the issuer," he tells retirement planners. "This can help manage so-called sequence-of-return risk, when market declines early in retirement shrink the years that savings will last." The folks at U.S. News and World Report, quoting Gail Marks Jarvis, author of Saving for Retirement (Without Living Like a Pauper or Winning the Lottery), suggest another strategy for creating certainty. Retirement planners should regularly raise their 401(k) or IRA direct deposit level, so long as it suits their lifestyle. "I would increase the percentage 1 percent, and if after three months, I am paying my bills and having a little fun, I would raise that another 1 percent," Brandon quotes Marks Jarvis as having told the website. Retirement planning can be confusing, but for those heading toward retirement - which, on some level, is all of us - it's simply the right thing to do. Hopefully, following the four C's is a step in the right direction. |
| Notable Retirement Statistics
The Trends are concerning, but a focus on planning ahead can help repair them. | 
At a time when the U.S. population is aging more quickly than ever - as baby boomers move toward retirement - the statistics show that many Americans are not prepared to take that next step:
- Nearly 30% of all American workers have less than $1,000 saved for retirement, says an Employee Benefit Research Institute study, according to Sue Thompson of isharesblog.com.
- The number of Americans between the ages of 65 and 74 who filed for bankruptcy rose 178% between 1991 and 2007, Thompson writes.
- "Over the next 20 years, more than 10,000 baby boomers will retire daily," Thompson says, "and by 2050 there will be nearly 90 million senior citizens in the United States. That is more than double today's 40 million figure."
- Seventy-four percent of American workers believe they will need to work during retirement, with 40% of baby boomers expecting to "work until they drop," Thompson's research shows.
- According to Ric Dalberri of RetirementUSA.com, 1% of Americans retire wealthy, 4% retire financially independent, 5% still have to work, 36% retire deceased, and 54% retire broke and dependent on others.
"What causes such poor retirement planning statistics?" Dalberri asks. "Most of the time, it's decisions or lack of decisions, choices, circumstances or priorities that put individuals in their plight. Lack of education, little or no skills, unmotivated, handicaps, health. When seniors reach their retirement, usually, time is a commodity that can't be gotten back."
While Dalberri acknowledges that statistics like these are a "truly sad situation," he adds that "money, new skills and education are still available."
In short, he explains, it's time to turn this situation around. We can start with those nearing retirement, and we can also turn to future generations and urge them to plan ahead. Luckily, local financial institutions are accustomed to helping people plan for retirement. In fact, it's their job to help their customers gain financial independence.
"In order for our retirement planning statistics to improve, we have to improve and teach our upcoming generations to improve so their retirement planning statistics will paint a better and clearer picture," Dalberri writes. "There are many ways for you to be part of positive retirement planning statistics. Seek professionals who are certified to help you with your retirement planning statistics so you don't fall into one of the negative categories." |
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PUBLIC SERVICE PROJECT 2013
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As everyone knows, Rebecca and I love animals as much as we do our business. For the last several years, we have been trying to figure out how to combine the business we love with our compassion for animals. We are very concerned about all the homeless loving cats and dogs that are in our shelters today and the ever increasing birth rate of so many unwanted pets.
Volunteers at our shelters should be commended for their selfless devotion to the animals in their care. But as with all shelters, funding for continued animal care is always needed.
With this in mind, we are happy to announce that as of January 1, 2013, "Saving Grace of Maryland" was born. Saving Grace of Maryland's goals are two fold. First, to work with every
501(c)(3) Humane Society in the State of Maryland teaching their members the value of Tax Deductible Charitable Giving through life insurance. Secondly, to educate members on the value of preparing a Pet Trust that will ensure the continued loving care of our companion animals after our passing.
Each month we will showcase a shelter that we are working with. This month we are showcasing Caroline County Humane Society.
If you are a Member of a Humane Society and would like for us to talk with your Board about a presentation, please visit our website at www.savinggraceofmd.com.
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Sincerely,
Mike Zimmer & Rebecca Thacker
Bay State Insurance Agency Limited
410-758-1680
1-877-411-3702
"Your Safe Money Team"
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HAPPY ST. PATRICK'S DAY
CAROLINE COUNTY HUMANE SOCIETY
"A Second Chance For A Happy, Permanent Forever Home"
Dixie
Frank
Turner
Eric
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Quick Links
www.yoursafemoneyteam.com
Individual Medical Insurance
(under age 65) | |
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A Sliver Lining for Your Retirement Account
If you transfer your IRA's, Annuities, old 401(k)s, or any other retirement account to us, one of our major insurance carriers will guarantee you an immediate 8% premium bonus; $50,000 becomes $54,000, $100,000 becomes $108,000, $250,000 becomes $270,000.
Not only that, you will receive an immediate 8% premium bonus on all premium payments received during the first seven contract years.
In addition to your premium bonus, how would you like to learn how you can add an income rider with a guaranteed 6.50% income growth for up to 10 years? This is not a prediction, this is a guarantee. You simply need to take a lifetime income.
Isn't it time you stop gambling in the risky stock market and get a good night's sleep? If you would like to have guaranteed growth and an income you can count on, give us a call at 410-758-1680 to learn how to earn more. ___________________________________ | |
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Thanks to those you have served,
who do serve, and
most of all,
to those who have made the ultimate
sacrifice in service to America.
Let Freedom Ring.
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Thanks to YOU the word is spreading. Thanks to all of our clients and friends who graciously referred us to their friends and neighbors last month! There's no question we have the BEST clients on the entire planet. Our business is built on word of mouth advertising and we would like to thank everyone who has been kind enough to recommend our services to their friends. We promise to treat your friends just like we treated you, with respect and understanding. We promise to always do what is right for our clients.
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The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described. For complete information, please contact our office at 410-758-1680 or 1-877-411-3702. |
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