Saving on Fitness Membership Costs

The cost of a membership to your local fitness center can be pricey, especially if you are looking for a modern facility with a wide selection of the most current equipment. But there are ways to improve your physical fitness without denting your fiscal fitness.

Ways to Save on a Fitness Center Membership

Don’t Pay List Price—There are ways to save on the quoted fee schedule.

• Take advantage of free trials. They may be as short as one day or up to 30 days. It will allow you test the club’s vibe and its members.
• Search for coupons. Fitness centers may offer coupons that reduce the cost.
  Visit the fitness center website and “deal of the day” websites to see if coupons
  are available.
• Negotiate. Let the manager know you are looking around, the prices you’re being quoted and ask him or her to make a best offer. Shopping during the slow season or at the end of the month gives you greater leverage.
• Join with a friend. A fitness center may have special pricing. If they don’t, it’ll certainly increase your negotiating leverage.
• Exercise during off-peak hours. Some fitness centers, especially the 24-hour ones, may offer discounts for using the facility in off-peak hours.

Get Someone Else to Pay for It—Forward thinking employers recognize that a physically fit employee is likely to be a healthier and more productive worker. Insurance companies also like healthy people since they cost less in medical care. Ask your employer or insurance company if they offer any perks that subsidize memberships, or have any affiliation with centers that offers discounts.
Don’t Buy a Membership—The fact is that many Americans’ resolve to exercise can be ephemeral, leaving them with membership bills that keep coming. To protect against this risk, consider:

• Buying a month-to-month membership until you’re sure you’re going to stick with it.
• Starting your new exercise regime by buying an exercise video or walking/running outdoors.

The decision to exercise is always a good one. Now, make the decision that will also be good for your bank account.

Resource: http://www.authenticcounsel.com/resource-center/lifestyle/saving-on-fitness-membership-costs

Choosing a Retirement Plan that Fits Your Business

One survey found that 53% of nation’s nearly six million small businesses may not have the retirement plan that’s most appropriate for their needs.¹
To choose a plan, it’s important to ask yourself four key questions. Their answers may help identify the plan that’s the best fit for your small business.

How much can my business afford to contribute?

The cost of contributions may be managed by the plan type.
A simplified employee pension plan (SEP) is funded by employer contributions only. SEP contributions are made to separate IRAs for eligible employees.²
Savings incentive match plan for employees of small employers (SIMPLE) IRAs blends employee and employer contributions.³ Employers either match employee contributions up to 100% of first 3% of compensation, or contribute 2% of each eligible employee’s compensation.
A 401(k) is primarily funded by the employee; the employer can choose to make additional contributions, including matching contributions.⁴
A defined benefit plan is entirely funded by employer contributions.⁵

What plan accommodates high employee turnover?

The cost of covering short-tenured employees may be reduced by eligibility requirements and vesting.
With the SEP-IRA, employees at least 21 or older and employed in three of the last five years must be covered.
The SIMPLE IRA must cover employees who have earned at least $5,000 in any prior two years and are reasonably expected to earn $5,000 in the current year.
The 401(k) and defined benefit plan must cover all employees at least 21 years of age and who worked at least 1,000 hours in a previous year.
Vesting is immediate on all contributions to the SEP-IRA, SIMPLE IRA and 401(k) employee deferrals, while a vesting schedule may apply to 401(k) employer contributions and defined benefit.

Do I want to maximize contributions for myself (and my spouse)?

The SEP-IRA and 401(k) offer higher contribution maximums than the SIMPLE IRA. For those business owners who are starting late, a defined benefit plan may offer even higher levels of allowable contributions.

My priority is to keep administration easy and inexpensive?

The SEP-IRA and SIMPLE IRA are straightforward to establish and maintain. The 401(k) can be more onerous, but complicated testing may be eliminated by using a Safe Harbor 401(k). Generally, the defined benefit plan is the most complicated and expensive to establish and maintain of all plan choices.

1. Fidelity Investments, February 22, 2012; (most recent information available). The online survey conducted among 638 owners of business with few than 100 employees.
2. Like a Traditional IRA, withdrawals from SEP-IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.
3. Like a Traditional IRA, withdrawals from SIMPLE IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.
4. Distributions from 401(k) plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, you must begin taking required minimum distributions no later than April 1 of the year after you reach age 70½.
5. Distributions from defined benefit plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.

Resource: http://www.authenticcounsel.com/resource-center/retirement/choosing-a-retirement-plan-that-fits-your-business

9 Facts About Retirement

Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you.

1. Many consider the standard retirement age to be 65. One of the key influences in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65.¹
2. Every day for the next 15 years, another 10,000 baby boomers will turn 65. That’s roughly one person every 8 seconds.²
3. In 2010, people aged 65 and older accounted for 13% of the population in the U.S. By 2025, they are expected to make up 18% of the population
4. Ernest Ackerman was the first person to receive a Social Security benefit. In March 1937, the Cleveland streetcar motorman received a one-time, lump-sum payment of 17¢. Ackerman worked one day under Social Security. He earned $5 for the day and paid a nickel in payroll taxes. His lump-sum payout was equal to 3.5% of his wages.⁴
5. In 2001, people aged 65 and older owned 31% of the U.S.’s financial assets. By 2040, it is estimated they will hold 44% of the country’s financial assets.⁵
6. Nine of ten adults aged 65 years and older take at least one prescription drug every day.⁶
7. In 2010, nearly one-third (32%) of those 65 and older depended on Social Security for 80% or more of their income. The average monthly Social Security benefit at the beginning of 2014 was $1,294.⁷
8. Centenarians — those over age 100 — are the fastest-growing demographic group in the U.S. Between 2000 and 2010, this group roughly doubled in size. In the 2010 census, nearly 83% of centenarians were women.⁸
9. Seniors watch more television—live, on the internet, and on mobile devices—than any other age group, even teenagers. In the first quarter of 2013, the 65-and-older age group averaged over 275 hours of television per month, compared with 120 hours for kids aged 12 to 17 years.

   Conclusion

   These stats and trends point to one conclusion: The 65-and-older age group is expected to become larger and have more influence in the future. Have you made arrangements for health care? Are you comfortable with your investment decisions? If you are unsure about your decisions, maybe it’s time to develop a solid strategy for the future.
   

   Postponing Retirement?

   22% of workers now intend to keep working until age 70 and beyond. And 7% don’t intend to retire at all.
   

   Chart Source: Employee Benefit Research Institute, 2014.

   
   

   
   

   Resource: http://www.authenticcounsel.com/resource-center/retirement/9-facts-about-retirement

Products and Services

We provide assistance in the following areas:

Investments

• Bonds
• Common Stock
• Educational IRA
• Traditional IRA
• Roth IRA
• SEP IRA
• Simple IRA
• Brokerage Accounts
• Treasury Bills
• Government Securities
• Treasury Notes
• Variable Annuity

Financial Planning

• Retirement Plans
• Tax Plans
• 401 (k) Planning
• 403 (b) Planning
• College Plans
• Estate Plans
• Money Purchasing Plans
• Profit Sharing Plans

Insurance

• Disability Income Insurance
• Life Insurance
• Long Term Care Insurance 

Resource; http://www.authenticcounsel.com/p/products-and-services

What Is an Annuity?

Individuals hold more than $1.7 trillion in annuity contracts; a tidy sum considering an estimated $5.4 trillion is held in all types of IRAs.¹
Annuity contracts are purchased from an insurance company. The insurance company will then make regular payments — either immediately or at some date in the future. These payments can be made monthly, quarterly, annually, or as a single lump-sum. Annuity contract holders can opt to receive payments for the rest of their lives or for a set number of years.
The money invested in an annuity grows tax-deferred. When the money is withdrawn, the amount contributed to the annuity will not be taxed, but earnings will be taxed as regular income. There is no contribution limit for an annuity.
There are two main types of annuities.
Fixed annuities offer a guaranteed payout, usually a set dollar amount or a set percentage of the assets in the annuity.
Variable annuities offer the possibility to allocate premiums between various subaccounts. This gives annuity owners the ability to participate in the potentially higher returns these subaccounts have to offer. It also means that the annuity account may fluctuate in value.
Indexed annuities are specialized variable annuities. During the accumulation period, the rate of return is based on an index.
Annuities have contract limitations, fees, and charges, including account and administrative fees, underlying investment management fees, mortality and expense fees, and charges for optional benefits. Most annuities have surrender fees that are usually highest if you take out the money in the initial years of the annuity contact. Withdrawals and income payments are taxed as ordinary income. If a withdrawal is made prior to age 59½, a 10% federal income tax penalty may apply (unless an exception applies). The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities are not guaranteed by the FDIC or any other government agency.
Variable annuities are sold by prospectus, which contains detailed information about investment objectives and risks, as well as charges and expenses. You are encouraged to read the prospectus carefully before you invest or send money to buy a variable annuity contract. The prospectus is available from the insurance company or from your financial professional. Variable annuity subaccounts will fluctuate in value based on market conditions, and may be worth more or less than the original amount invested when the annuity expires.

Case Study: Robert’s Fixed Annuity

Robert is a 52-year-old business owner. He uses $100,000 to purchase a deferred fixed annuity contract with a 4% guaranteed return.
Over the next 15 years, the contract will accumulate interest tax free. By the time Robert is ready to retire, the contract should be worth just over $180,000.
At that point the contract will begin making annual payments of $13,250. Only $7,358 of each payment will be taxable; the rest will be considered a return of principal.
These payments will last the rest of Robert’s life. Assuming he lives to age 85, he’ll eventually receive over $265,000 in payments.
Robert’s annuity may have contract limitations, fees, and charges, including account and administrative fees, underlying investment management fees, mortality and expense fees, and charges for optional benefits. His annuity also may have surrender fees that would be highest if Robert takes out the money in the initial years of the annuity contact. Robert’s withdrawals and income payments are taxed as ordinary income. If he makes a withdrawal prior to age 59½, a 10% federal income tax penalty may apply (unless an exception applies).

Two Phases

Deferred annuity contracts go through two distinct phases: accumulation and payout. During the accumulation phase, the account grows tax deferred. When it reaches the payout phase, it begins making regular payments to the contract owner — in this case annually.

1. Insured Retirement Institute, 2013

Resource: http://www.authenticcounsel.com/resource-center/retirement/what-is-an-annuity

9 Facts About Social Security

Social Security’s been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? Here are nine things that might surprise you.

1. The Social Security trust fund is huge. At $2.52 trillion at the end of 2011, it exceeds the gross domestic product (GDP) of every country in the world except the five largest: the U.S., China, India, Japan, and Germany.¹
2. Most workers are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.²
3. You don’t have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.³
4. Benefits are based on an individual’s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low earnings or no earnings, Social Security may count those years to bring the total years to 35.⁴
5. There haven’t always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now increases happen automatically, based on the Consumer Price Index. There were COLA increases in 2009, 2010, and 2012, but not in 2011.⁵
6. Social Security is a major source of retirement income for 68% of current retirees.⁶
7. Social Security benefits are subject to federal income taxes — but it wasn’t always that way. In 1983, Amendments to the Social Security Act made benefits taxable, starting with the 1984 tax year.⁷
8. Social Security recipients received a single, lump-sum payment from 1937 until 1940. One-time payments were considered “payback” to those people who contributed to the program. Social Security administrators believed these people would not participate long enough to be vested for monthly benefits.⁸
9. In January 1937, Earnest Ackerman became the first person in the U.S. to receive a Social Security benefit—a lump sum of 17 cents.⁹

By the Numbers

The first three digits of a Social Security number indicate the state where the individual applied for the number. The lowest numbers are allocated to states in the Northeast; the highest numbers are assigned to the West Coast.

Source: Social Security Administration, 2011. To protect the integrity of Social Security numbers, the Social Security Administration began randomizing Social Security numbers for all those issued after June 25, 2011.

Resource: http://www.authenticcounsel.com/resource-center/retirement/9-facts-about-social-security

Retirement Income and the Traditional Portfolio

The challenge with taking withdrawals from a traditional portfolio is the “sequence of returns” danger. Experiencing negative returns early in retirement can potentially undermine the sustainability of your assets. So you may want to consider a couple of strategies to help mitigate this concern.
The first is to have a pool of very liquid assets to fund two-to-three years of retirement spending; this may keep you from selling longer-term assets at an inopportune time. Through time, and depending upon market conditions, you may have the opportunity to replenish this cash reserve using gains from your retirement portfolio.
Another complementary strategy is to integrate annuities into your retirement strategy.

Taxed As Ordinary Income

The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities have contract limitations, fees, and charges, including account and administrative fees, underlying investment management fees, mortality and expense fees, and charges for optional benefits. Most annuities have surrender fees that are usually highest if you take out the money in the initial years of the annuity contact. Withdrawals and income payments are taxes as ordinary income. If a withdrawal is made prior to age 59½, a 10% federal income tax penalty may apply (unless an exception applies).
Until now, portfolio optimization has largely focused on the blending of different asset classes in the appropriate measure to create optimal portfolios. What is often overlooked is how to integrate different retirement investment vehicles to enhance asset optimization.
One of the industry’s leading thinkers, Ibottson Associates, has done a great deal of research around this very idea.

Retirement-Income Challenge

In a landmark study, “Retirement Portfolio and Variable Annuity with Guaranteed Minimum Withdrawal Benefit,” Ibottson’s research came to several key conclusions that hold important ramifications for meeting the retirement-income challenge.
One of the study’s conclusions was the addition of variable annuity with a guaranteed minimum withdrawal benefits to retirement portfolios—replacing cash or fixed-income allocations—increases total income while it decreases income risk.”¹
A successful retirement is so much more than undertaking sound investment strategies.
It’s also about developing an approach to help protecting you, your spouse, and your heirs. Consider the benefits of extended medical insurance and Medigap insurance. Review your estate strategy to ensure that it reflects your wishes and is positioned to execute on them.
Finally, stay active—physically and mentally—so that you can fully enjoy your
retirement years.

1. The Ibbotson study assumed the investor had a retirement income period of 25 years or longer. For an investor with a shorter horizon, the strategy may not be as beneficial. The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities are not guaranteed by the FDIC or any other government agency.Variable annuities are sold by prospectus, which contains detailed information about investment objectives and risks, as well as charges and expenses. You are encouraged to read the prospectus carefully before you invest or send money to buy a variable annuity contract. The prospectus is available from the insurance company or from your financial professional. Variable annuity subaccounts will fluctuate in value based on market conditions, and may be worth more or less than the original amount invested if the annuity is surrendered.

Resource: http://www.authenticcounsel.com/resource-center/retirement/retirement-income-and-the-traditional-portfolio