5 Smart Financial Goals to Set in 2018

Happy New Year! With a new year, comes a chance to set new goals and resolutions to achieve. The best way to achieve your desires is to set SMART goals. SMART goals are specific, measurable, attainable, realistic, and timely. Today, we are going to be reviewing 8 SMART

FinancialGoals to set in 2018

The SMART methodology can be used for any goal that you wish to set – not just for your financial goals. For example, if your goal for 2018 is to lose more weight you could make that a SMART goal by saying the amount of weight you want to lose each month and what you will do to achieve the goal. Another example would be a goal of reading more books this year. Turning that goal into a SMART goal would be saying that you are going to read one book each month all year.

Now that you know exactly what SMART goals are and how to set them, check out these 8 SMART Financial Goals to set in 2018

EARN MORE MONEY

Who wouldn’t want to earn more money in 2017? By simply earning more money, it can allow you to achieve so many other goals. There are many ways to earn more money.

• Focus on a promotion at your full-time gig
• Grab a part-time gig for your free time
• Start a side hustle (like freelance writing, driving for uber, etc…)

To turn this into a SMART financial goal, be deliberate about how much extra money you would like to make each month and how you plan to do it. Instead of just saying you want to earn more money in 2017, say you would like to earn $1000 each month through freelance writing and affiliate income. After the specific goal is set, you can work on how you will achieve that goal.

SPEND LESS MONEY

In order to turn spending less money into one of your SMART financial goals, it is time to look at your spending from the previous year. This step will be easy if you used a budgeting app like Mint.com in the previous year. Look at each of the categories of spending in your budget to determine what areas can be reduced or cut out completely. Discretionary spending like eating out and shopping are typically the two categories that are the easiest to cut.

Even if you don’t use a budgeting app, it is time to have a heart to heart with yourself. I know, sound’s crazy right? However, it can work. Most of us know what our weakness is. It is up to us to decide whether to get that under control. Eating out at restaurants tends to get me in trouble. For you, it may be spending your money shopping. For others, it may be a bad habit of ordering random items on Amazon.

PAY DOWN DEBT

After the holidays, paying down debt is a goal for many people like my friend MJ who paid off 39k on a teacher’s salary. And Ebony Horton who paid of $220k off of debt in just 3 years. Besides the fact that debt literally costs you money each month while the interest is accumulating, it can also limit your extra income to use towards saving or traveling. In addition, your debt may be stopping you from achieving other goals like purchasing your first home.

In order to turn debt repayment into a SMART financial goal, be specific about how much debt you want to and realistically can pay off each month. Instead of saying you want to pay off your car loan in 2017, make your goal specific, measurable, actionable, and realistic and time bound. Therefore, your goal can be to pay off your car loan by September 2018 by making an additional $500 to the monthly payment every month.

IMPROVE YOUR CREDIT SCORE

Improving your credit score can literally improve so many other areas of your life. If you are looking to purchase a new car or buy your first house, it is imperative that you have a good credit score.

For example, if you have a poor credit score banks and loan companies will charge you a higher interest rate. Although it may seem like it isn’t a big deal, the same car payment for someone with a good credit score may be $300 but someone with a poor credit score may be $500.

If you aren’t sure where your credit score stands, then you need to head to Credit Sesame as soon as possible. Credit Sesame is a free website that provides a copy of your Trans union credit report and credit score. In addition, Credit Sesame provides customized tips based on your credit profile to show you how to raise your credit score.

SAVE FOR RETIREMENT

It is estimated that millennial will need 1.8 million dollars when they retire! Yes, you read that right, 1.8 million! Therefore, saving for retirement is essential to ensure a comfortable and successful retirement. Starting to save for retirement or increasing the amount that you are saving for retirement is a SMART financial goal to set for this year.

If you currently are not contributing to your retirement savings, start small. In the event your company offers a 401k plan, find out if they match any contributions. If the company does match contributions, contribute at least up to the match. By contributing up to the match amount, you are not leaving any free money on the table. If your company doesn’t offer a 401k plan or you work as a freelancer, start a traditional or Roth IRA. In 2018, the maximum amount that can be contributed to an IRA if you are under the age is 50 is the lesser of 100% of compensation or $5500.

Source:

https://michaelwoloshinblog.wordpress.com/2018/01/09/5-smart-financial-goals-to-set-in-2018/

10 Social Security Tips for 2018

Social security is a huge source of income for millions of individuals in America – disabled, retires and deceased workers. In fact, its purpose is to provide the safety for people who are unable to accrue adequate retirement savings. Here, Michael Woloshin has shared some of the social safety tips for the year 2018.

Today’s, societal security has become the vital element for safeguarding the lifetime income sufficiency. And a lot of people has started to pay attention to the societal safety benefits. In fact, there are lots of planning options available in order to receive the social safety profits.

Basically, it is a “pay as you go” system. This means individuals pay while they are working and acquire the monthly benefits after the retirement. In 2018, the societal safety recipients will acquire the two percent bigger payments. Moreover, this program also twisted in several ways that affect how much individuals pay and will obtain in retirement.

Following are Some of the Tips that Individuals Should Follow to Navigate Social Security  in Order to Take the Retirement Benefits:

• Know in Detail Before Applying

If you do not know the benefits of the social safety system, then read the rules before you grow to the retirement age. All individuals need to do is to surf the societal safety website in order to become aware of the norms.

• Work Long Enough to Make More Benefits

One should have to work long enough in order to make more benefits said, Michael Woloshin. Actually, the amount of regular retirement profit depends on how much social safety tax individuals pay.

• Select the Community With Low Price of Living

It is advisable to choose such retirement community in the United State where you can live on social security benefits alone. You can search out the budget of living statistics online for the cities you are interested in.

• Poor in Health People can Claim Early

This is beneficial to delay the benefit if you want to take more benefit. But if you are poor in health, then claim the benefit early.

• Write Down Your Full Retirement Age

People can get the higher societal safety profits if they wait until full retirement age. Hence, pin down correctly when that is for the risk minimization. For instance, the people turning 62 must wait until they turn to 66 years and 4 months in order to get to the required retirement age.

• Do not Rush to Claim

Never be in hurry to collect the societal safety profits earlier. One should have to think about it carefully. This is because claiming the social safety benefit before the full retirement age will reduce the benefit permanently by 6.67 percent each year.

• The Higher Earners Should Delay the Benefit Until 70

The people having high earning have to wait until the age of 70 for pension plans in order to take their benefits. In reality, waiting until the age of 70 means individuals can earn 8 percent a year in late retirement credits.

• Claims Welfares as a Surviving Spouse

In case the spouse dies before individuals do, they can claim a survivor benefit as they turn 60 years old. In fact, one can get hundred percent of what their spouse received at the full retirement age.

• Continue to Work in Order to Boost Future Benefits

Continue working for few more years after reaching the full retirement age add more profits. These extra years can count as the top 35 wage earning years and you can make good financial arrangements.

• Continuously Look for the Variations in Societal Safety Law

This is the most vital tip of all the above. Actually, some provisions of the societal safety change every year. Hence, one should keep their eye on the ball.

These are some of the societal security tips given by Michael Woloshin. Individuals must consider all the above tips while applying for the societal safety benefits.

Sources: https://www.allperfectstories.com/10-social-security-tips-for-2018/

How to Tame Your Student Loans

The student loan is easy to acquire but often tougher to pay back. In fact, the advance feels like the continuous burden as well as drain along with no end in prospect. Folks all the time keep thinking about how they save money for retirement and children’s tutoring. Are you one of them? If yes, then not to worry!

In this article, Michael Woloshin has given some tips on how to tame the student advances. The professionals help individuals in achieving their financial goals. Actually, paying student debt work for some people but is not the right move for everyone. According to a financial planner, some youngster put every last money toward the apprentice lends and abandonment their future in terms of saving.

One should also have to collect an emergency fund which covers at least 6-month value of living expenditures. Do you have high rate credit card debt? Yes, then wipe it out before taking more cash to learner advances. After all, crucial expenses are also the part of the picture along with paying off the Student Loans.

Popular Budget Guideline

A simple and well-known budget guideline is 50-20-30 rule. From which 50 percent of individuals take goes to essentials and 20 percent to whittling debit as well as adding saving. Plus, 30 percent to discretionary items like charitable giving, dining out, streaming, shopping, and cable or TV. You can make use of the budget app in order to track where your cash goes.

In fact, one can also seek the help of the monetary advisor for managing their money. The financial planners do not have the asset requirements and endow the virtual services. This is one of the best ways to deal with the budget in a proper way.

Following are some of the ways for taming student debt:

1. Make Some Extra Payments: Making an extra payment help in paying off the student advance on time. Let’s take an example that you have taken the $35,000 apprentice loan and you are paying 5.7 percent of interest on the debt. Also, you pay $373 per month.

This is according to Michael Woloshin that if you will pay some dollar extra i.e. $150, then you can clear the advance in 6.6 years instead of 10 years. Furthermore, this will save some money that you pay an interest rate.

2. Refinance: The people who refinance their student advance debt cut their interest rate by 2 percent says a financial advisor.

3. Go Through the Workplace Benefits: Individuals have to check that if their employers offer the apprentice advance refund benefits. There is no surprise if your company will provide this benefit. According to a human resource connotation, eight percent of the industries having up to 40,000 workers offer it. Hence, one should have to seek a company match which contributes to their loan repayment.

Wrapping Up

These are some of the useful ways for individuals to tame their student loan suggested by Michael Woloshin. Following these tips will help people in lessening the burden of loan repayment. Along with this, individuals can save money for future.

Sources:https://www.allperfectstories.com/tame-your-student-loans/

Michael Woloshin | How To Find the Perfect Financial Advisor

Hiring a financial advisor is a valuable investment, but it is often overlooked. The economy is a wavering entity. Things change all the time and it can be difficult to keep up with it all in addition to your, no doubt, demanding daily life. So, why not let trained financial advisors provide you with professional advice on how to make the most of your hard-earned assets?

The Financial Planning Standards Council (FPSC) strives to ensure that professional standards are followed and Canadians are well-served by top financial planning institutions and their advisors. However, by law there are no minimum education or experience requirements in order for someone to claim the title of financial advisor. So, it is extremely important that you do the necessary background work to avoid swindlers and find a trustworthy, sound investor to handle your account. Here is a five step guide to finding a financial advisor for residents of the Ottawa, Ontario, Canada area.

Step 1. Create a list of at least three financial planners to be considered. Obtain recommendations from friends and family members and perform a simple internet search to find some reputable national organizations. See what credentials are required of each institution's advisors and make sure that they must pass quality examinations before they are hired.

Step 2. Now that you know that the institutions you are considering are up to snuff, it is time to do some credential screening of the individual advisors. Make sure they have the proper accreditations and licensing. Also, try to find someone who is broadly educated over an array of financial issues. Ask the planners about the circumstances surrounding their typical clients in an attempt to find someone who has dealt with people similar to you.

Step 3. Find out what type of payment arrangement the advisor operates under. Some are fee-only which means that they simply charge a periodic fee. The fee may be either a fixed amount or a percentage of the value of your assets that are under their management. Others may receive commissions for selling particular investments to you. This may pose the threat of a conflict of interest and should be approached with extreme caution.

Step 4. Personally interview the prospects and obtain both professional references and current client references. Ask as many questions as you can think of, no matter how insignificant they may seem, and make sure that you are comfortably satisfied with the answers given. After all, you have a lot at stake and your peace of mind is essential to finding the right adviser for you.

Step 5. Pay attention to the questions and concerns expressed by the adviser during each interview. He or she should be interested in several aspects of your life and personality. He or she should want to know things about you like what you expect to receive by using his or her services, your goals and future plans for your investments, and your level of open-mindedness toward risk. Be wary of any planner who only seems interested in your assets or making a sale.

Michael Woloshin helps those soon to be retired, and those already retired, achieve financial independence. His years of experience have enabled him to recruit a team that is focused on creating customized income strategies for each client.

Article Source: http://EzineArticles.com/6143757

Strategies for Reducing Your Taxes

Michael Woloshin: The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three basic ways to reduce your taxes, and each basic method might have several variations. You can reduce your income, increase your deductions, and take advantage of tax credits.

Reducing Income

Adjusted Gross Income (AGI) is a key element in determining your taxes. Lots of other things depend on your AGI (or modifications to your AGI)-- such as your tax rate and various tax credits.

AGI even impacts your financial life outside of taxes: banks, mortgage lenders, and college financial aid programs all routinely ask for your adjusted gross income. This is a key measure of your finances.
 

Because your adjusted gross income is so important, you may want to begin your tax planning here. What goes into your adjusted gross income? AGI is your income from all sources minus any adjustments to your income. The higher your total income, the higher your adjusted gross income. As you can guess, the more money you make, the more taxes you will pay. Conversely, the less money you make, the less taxes you will pay. The number one way to reduce taxes is to reduce your income. And the best way to reduce your income is to contribute money to a 401(k) or similar retirement plan at work. Your contribution reduces your wages, and lowers your tax bill.

Increase Your Tax Deductions

Taxable income is another key element in your overall tax situation. Taxable income is what's left over after you have reduced your AGI by your deductions and exemptions. Almost everyone can take a standard deduction, and some people are able to itemize their deductions.
Itemized deductions include expenses for health care, state and local taxes, personal property taxes (such as car registration fees), mortgage interest, gifts to charity, job-related expenses, tax preparation fees, and investment-related expenses. One key tax planning strategy is to keep track of your itemized expenses throughout the year using a spreadsheet or personal finance program. You can then quickly compare your itemized expenses with your standard deduction. You should always take the higher of your standard deduction or your itemized deduction.

Take Advantage of Tax Credits

Once we've tweaked our taxable income, we are ready to focus our attention on various tax credits. Tax credits reduce your tax. There are tax credits for college expenses, for saving for retirement, and for adopting children.
The best tax credits are for adoption and college expenses. Not everyone is in a position to adopt a child, but everyone could take some college classes.

There are two education-related tax credits. The Hope Credit is for students in their first two years of college. The Lifetime Learning Credit is for anyone taking college classes. The classes do not have to be related to your career.

Increase Your Withholding

You can avoid owing at the end of the year by increasing your withholding. More money will be taken out of your paycheck throughout the year, but you will get bigger refund when you file your taxes.

Originally Posted:https://www.thebalance.com/tax-planning-basics-3193487

5 Tips to Make Your Money Last Longer in Retirement

With average life expectancies rising, one of the main concerns for working Americans reaching retirement is: How can we ensure that we don’t outlive our savings? Here are five tips by Michael Woloshin to make your money last:

Plan ahead

Only 18% of American workers feel “very confident” they’ll have enough money for a comfortable retirement, reports a 2017 Retirement Confidence Survey conducted by the Employee Benefit Research Institute (EBRI).

To figure out how much you’ll need to save, begin with estimating how much of your current income you’ll need to replicate in retirement (a good amount for the average American is around 80%). After calculating your current saving and spending, factor in any anticipated changes (e.g., decreased expenses if you pay off your home). Also, remember to include costs for new hobbies and travels in retirement.

Use the modified “4% Rule”

Many people are familiar with the “4% withdrawal rule,” which assured retirees that by holding their annual withdrawals to 4% of their retirement portfolios it would allow their portfolios to last 30 years. However, that advice appears outdated and overly optimistic. A 2013 “Low Bond Yields and Safe Portfolio Withdrawal Rates” report by Morningstar found that the modified “safe” withdrawal rate is 2.8%, and a retiree would be more than 50% likely to run out of money withdrawing 4%.

Consider working a few more years

There are numerous reasons why some experts are advocating waiting a few extra years before retiring.Staying in a job allows you to continue growing your savings and gain returns on investments without needing to use them right away for retirement living expenses. It also can help you delay and boost Social Security and pension benefits. Delaying Social Security until age 70 is beneficial since you will receive an 8% gain every year after achieving full retirement age (FRA), usually 66 for most people today. You can either boost your own benefit or maximize your spouse’s benefit.

Buffer for long-term care costs

Costs for long-term care like a nursing home can be overwhelming these days, with the average nursing home costing around $80,000 per year.A 2016 Cost of Care Survey by Genworth found that the average cost for assisted living was $43,539, home health care was $46,332, and a semi-private room at a nursing home was $82,125. Many insurance policies for long-term care can be costly or have restrictions that may not help as much as they might suggest.

Consider adding an annuity

One of the best sources for fixed, guaranteed income just like Social Security or a pension is an annuity. Annuities aren’t investments; they are a transfer-of-risk insurance product against running out of income in retirement. Typically, retirees should consider allocating a portion of their savings into the right type of annuity to not stress their retirement accounts with too much risk.

Depending on the type of annuity (e.g., immediate, fixed, fixed-indexed or variable) monthly payments are based on your age and interest rates at the time it is set up. Not all annuities are created equally and you should know the differences between each and make sure they align with your goals.

Sources:http://www.kiplinger.com/article/retirement/T047-C032-S014-make-your-money-last-longer-in-retirement.html

Is Your Financial Professional a Fiduciary?

The answer to that question is important: It determines whether the person you’re working with is legally required to put your interests first.

Despite all the inside-the-industry fuss about the fate of the Department of Labor’s revised definition of “fiduciary,” commonly referred to as the fiduciary rule, many individuals still aren’t aware there’s a difference in the way various financial professionals are paid, or that they are held to different levels of accountability.

The rule, which was officially implemented on June 9, 2017, requires all financial professionals who work with retirement plans or provide retirement-planning advice to be legally and ethically required to rise to a fiduciary standard of care.

What does that mean to you?

What ‘fiduciary’ means for investors

You might be somewhat familiar with the term “fiduciary,” although not necessarily in this context. First and foremost, it means your financial professional is obligated to put your needs before his own when making recommendations on financial products and strategies.

In addition to acting in the client’s best interests, a professional held to the fiduciary standard must fully disclose his compensation and any conflicts of interest to the client.

Beyond that, a fiduciary has a “duty of care” and must continually monitor not only his clients’ assets, but also any change in their financial situations.

Let’s say a client had a change of heart after going through a tough stock market period and wanted to adjust his risk tolerance. Or perhaps a personal tragedy resulted in extreme medical expenses, and a client needed a new strategy to mitigate that burden. A fiduciary is obligated to help the client re-evaluate his financial strategy and work with him to help align his strategy with his financial goals and objectives.

If you’ve already been working with a fiduciary, you know: The first client meeting is just the beginning. Beyond his legal duty to you, your financial professional has a stake in your success because he’s paid based on a percentage of your portfolio. If you do well, so does he.

Which financial professionals aren’t held to the fiduciary standard?

If your financial professional is a stockbroker, he likely is paid through commissions and fees, and he is not held to this same standard.

A stockbroker is defined as any person engaged in the business of buying and selling securities for the accounts of others. Brokers are generally not considered to have a fiduciary duty to their clients.

Instead of being obligated to put his clients’ interests ahead of his own, a broker is expected to deal fairly with them and to adhere to a standard of care known as the “suitability standard.” A recommendation must be suitable for the client’s individual financial goals and objectives, but it doesn’t have to be the best or the least expensive choice.

What investors should do

If you aren’t sure if your financial professional is held to the fiduciary standard, ask. Look at how the individual is compensated, if his first obligation is to you or to the firm he works for, and how often he actualy checks in with you to see if your personal or financial situation has changed in any way.

im Franke-Folstad contributed to this article.

Michael Woloshin is an Investment Adviser Representative, insurance professional and the founder and managing director of Woloshin Investment Management. His priority is helping those who are about to retire or who already have retired pursue their financial independence utilizing customized income strategies. Michael has over 35 years of experience advising clients.

Source: http://www.kiplinger.com/article/retirement/T023-C032-S014-is-your-financial-professional-a-fiduciary.html