Income Gap - Connecting and Understanding

Social Security was never designed to be an individual’s sole source of retirement income. Instead, it was meant to bridge the gap between people’s income from pensions and savings and their monthly expenses.

Today, however, nearly two-thirds of all seniors rely on Social Security for at least 50% of their total monthly income. Nor are annual cost-of-living adjustments, or COLAs, keeping up with the spiraling costs of healthcare, housing, and energy in many areas across the country. Adjustments to extend the program’s solvency have reduced benefits in real terms, as well as ratcheted up the age at which one can attain full benefits.

What’s more, traditional company pension plans are fast going the way of the horse-and-buggy and the dodo bird. Instead, employers are moving toward “defined contribution plans” that put most of the responsibility for planning, funding, investing, and distributing plan funds squarely on the shoulders of individual employees.

Given these trends, one thing is clear: Each person must put increasingly greater emphasis on securing their own financial future in retirement. Your actions today and throughout your working career may make the difference between relying on government programs for a modest monthly income and enjoying a secure, independent “golden years.”

The price of procrastination is steep and the cost of inadequate preparation too high for you to wait until later to start planning!

Source: Jennifer Anglin Insurance 

Planning for the Golden Years

There’s a saying that if you have your health, you have everything. Well, that’s not exactly true – without adequate resources, you could enjoy a long, healthy retirement at a far lower standard of living than you’d prefer!When preparing for retirement, it’s vital to keep in mind the importance of money to your quality of life during your “golden years.” And with retirements now stretching as long as 20 to 30 years – and beyond – ensuring your retirement dollars outlive you is a paramount concern. Failing to Plan, or Planning to Fail? It’s been said that he who fails to plan, plans to fail. And nowhere is that concept illustrated more starkly than with retirement planning. A sound financial plan can be the difference between the retirement of your dreams and the nightmare of discovering you have too little money, too late to change financial course.A disciplined retirement preparation plan, diligently followed, will help you develop realistic objectives … assess progress toward your goals … and make periodic adjustments to keep you on track. How Much Retirement Income Will YOU Need? Government research has determined that most Americans need between 60 and 80 percent of their pre-retirement income in order to maintain their standard of living during retirement. However, many financial experts have raised this figure to between 80 and 100 percent of pre-retirement income, citing skyrocketing healthcare costs, lengthening life spans, and the ever-present threat of inflation – which can rob a retirement portfolio of purchasing power over time. Of course, how much you will need in retirement will be a function of your goals, time horizon, and spending habits. Those who want to purchase a second home and travel frequently will obviously need more than those who prefer to stay at home in their paid-off house. Consider these factors when estimating your future retirement income needs: Your support of children who will be self-sufficient by the time you retire. Your current work-related expenses that will be dramatically reduced in retirement, such as commuting costs, daily meal expenses, dry cleaning bills, etc. Whether your mortgage will be paid off prior to or early in retirement. Whether you will need to continue your monthly savings amount or begin to spend that amount for necessities. Your tax bill in retirement Sources of Retirement Income Once you have estimated your target retirement income, you can begin evaluating your potential sources of regular income. In general, your income sources will fall into one of these three categories: 1) Government sources. The Social Security system was inaugurated during the Great Depression to augment retirees’ incomes. Most experts feel that the system will remain solvent throughout much of the 21st century. Even so, a rising retirement age and cuts in benefits could reduce your monthly Social Security check. Benefits are based on the amount you earned during your working years. 2) Employer-sponsored plans. Many employers offer company-sponsored retirement plans, which generally fall into two categories. Defined benefit plans, which are normally funded by the employer and guarantee a retirement benefit based on a formula comprising number of years on the job and employment earnings. For example, a traditional pension is a defined benefit plan. Defined contribution plans, on the other hand – such as 401(k), 403(b), and 457 – rely on funding from employees, matching funds from the employer, or a combination of the two. The employee owns an account balance (subject to company rules regarding vesting) of contributions and earnings. Upon changing jobs, an employee may be able to roll over assets into the new employer’s plan or into an IRA. At retirement, the employee decides how to withdraw the balance he or she has accumulated. 3) Personal savings. This is perhaps the most overlooked aspect of retirement planning. Personal savings include, but aren’t limited to, balances in savings accounts, directly held assets, home equity, shares in a partnership or business, and even collectibles such as artwork and coins. How to Get – And Stay – On Course How can you determine whether you’re on track to reach your retirement goals, and to make adjustments if necessary? We can help you develop a sound financial plan based on your specific situation, monitor it regularly to ensure you’re making progress toward your objectives, and recommend occasional adjustments to help you stay on course.

Insurance Coverage Options

Alfa offers several options to help you get the most from your life insurance program and to meet your family’s insurance needs.

Accidental death benefit is paid if the insured dies accidentally.

Children’s term insurance provides for a level death benefit for each insured child to age 25. If you (our insured) die during the term, the children’s term policy is paid up until the child reaches age 25. May be purchased for a child age 0-18. Each insured child can convert to an individual permanent policy up to five times the rider amount on the date the child’s coverage is due to expire.

Guaranteed purchase option allows you to buy additional coverage at certain times even though you may have become uninsurable due to a terminal illness, for example.

Guaranteed renewability benefit provides for the renewal of your Level Premium Term at the end of the level premium period or your Return of Premium policy at the policy expiration, regardless of your health.

Premium insurance prevents cancellation of a policy on your child’s life to age 25 if you (the premium payor) die or become disabled. May be purchased for a child age 0-14.

Spouse level term option provides convenient, cost-saving, level-term coverage for a spouse up to age 65. May be converted to a permanent plan of insurance at any time prior to the expiration of the rider.

Waiver-of-premium benefit keeps your insurance policy in effect without payment of premiums while you are totally disabled.

Flexible payment schedule allows you to pay your premiums monthly, quarterly, semi-annually or annually.

How do I know which plan is best for me?

By completing a financial needs analysis, your Alfa agent can help you determine your family’s financial situation. By taking a few moments of your time, you can have the peace of mind that your family will be protected financially in the event you or your spouse die prematurely.

* Payments withdrawn during the first 10 years of the annuity contract will be subject to an early withdrawal charge. Please refer to the annuity contract and illustration for additional information. Tax penalties may apply to withdrawals made before the contract purchaser reaches age 59 1/2. Your tax advisor can assist you with the tax implications of annuity withdrawals.


Source: http://www.jenniferanglininsurance.com

Report: $1 billion Reimbursement from Health Care Law

by Ricardo Alonso-Zaldivar
Associated Press Writer
WASHINGTON — More than 3 million health insurance policyholders and thousands of employers will share $1.3 billion in rebates this year, thanks to President Barack Obama’s health care law, a nonpartisan research group said Thursday.

The rebates should average $127 for the people who get them, and Democrats are hoping they’ll send an election-year message that Obama’s much-criticized health care overhaul is starting to pay dividends for consumers. Critics of the law call that wishful thinking.

The law requires insurance companies to spend at least 80 percent of the premiums they collect on medical care and quality improvement or return the difference to consumers and employers. Although many large employer plans already meet that standard, it’s the first time the government has imposed such a requirement on the entire health insurance industry.

“This is one of the most tangible benefits of the health reform law that consumers will have seen to date,” said Larry Levitt, an expert on private insurance with the Kaiser Family Foundation, which analyzed industry filings with state health insurance commissioners to produce its report. Kaiser is a nonpartisan information clearinghouse on the nation’s health care system. 

Still, with employer coverage averaging about $5,400 a year for an individual, $15,100 for a family, $127 isn’t a whole lot of money. It amounts to 2 percent of an individual plan, and a little less than 1 percent of the family premium.

And the insurance industry says consumers should take little comfort from the rebates because premiums are likely to go up overall as a result of new benefits and other requirements of the law.

“The net of all the requirements will be an increase in costs for consumers,” said Robert Zirkelbach, spokesman for America’s Health Insurance Plans, the main industry trade group. 

“Given that health care costs are inherently unpredictable, it’s not surprising that some plans will be paying rebates to policyholders in certain markets,” Zirkelbach added. 

But the Kaiser report said the rebate requirement may be acting as a brake on the industry, discouraging insurers from seeking big premium increases to avoid having to issue refunds later and face possible criticism.

The new law has “provided an incentive for insurers to seek lower premium increases than they would have otherwise,” the report said. “This ‘sentinel’ effect on premiums has likely produced more savings for consumers and employers than the rebates themselves.”

The study found the largest rebates will go to consumers and employers in Texas ($186 million) and Florida ($149 million), where Govs. Rick Perry and Rick Scott have been among the staunchest opponents of the federal law. Both states applied for waivers from the 80 percent requirement and were turned down. Hawaii is the only state in which insurers are not expected to issue a rebate.

Here’s how the rebates break down nationally:

More than 3 million individual policyholders will reap rebates of $426 million, averaging $127 apiece. These are consumers who are not covered through an employer and buy their policy directly. Consumers in Texas, Oklahoma, South Carolina and Arizona are most likely to be eligible.

Insurance companies must notify policyholders, and the rebates are due by Aug. 1. Some companies have already begun to pay.

In the small-employer market, plans covering nearly 5 million people will receive rebates totaling $377 million. 

Employers do not have to pass their rebates on to workers, and can also take them as a discount on next year’s premiums.

Insurers serving large employers face a stiffer requirement. Under the law, they must spend 85 percent of premiums on medical costs. The study found that 125 plans covering 7.5 million people at large employers will give back a total of $541 million.

Most plans operated by major national employers are exempt from the requirement. The biggest companies usually set aside money to cover most of their workers’ medical expenses. Typically they hire an insurer to administer their plan, but they do not buy full coverage from the insurer.

Separately, a Goldman Sachs report estimated insurers would pay rebates of $1.2 billion. Among major insurers, UnitedHealth would pay $307 million, Aetna $177 million, WellPoint $94 million and Coventry $50 million.

Supporters of the requirement say it will keep insures from padding their profits at the expense of unsuspecting consumers. 

“Millions are benefiting because health insurance companies are spending less money on executive salaries and administrative costs and more on patient care,” said Sen. Jay Rockefeller, D-W.Va., a leading advocate of the rebate provision.

White House spokesman Jay Carney said the report shows how Obama’s law is “already strengthening the health care system for millions of Americans.” 

Like everything else about the overhaul, the future of the rebates depends on whether the Supreme Court upholds the law in a decision expected by early summer.

Seventeen states applied for waivers from the 80 percent standard, producing evidence that it would destabilize their private health insurance markets. Federal regulators granted adjustments to seven states, usually meeting each state’s request part way.

Data from the nation’s most populous state, California, were not ready and thus were not included. Final statistics on the rebates will be issued by the federal government in early summer.

Source: http://cherokeetribune.com 

Assurance and Motivation…

Approximately six years ago I received a call from Jennifer Anglin, who is the owner of ALFA Insurance in South Canton.  As a member of the Cherokee County Chamber of Commerce, Jennifer informed me that she had selected my school to support with her business.  I was “thrilled” with her willingness to jump in and meet my wonderful staff and students.  Since the beginning of this school and community business partnership, I am also happy to be insured by ALFA Insurance and have Jennifer to take care of my home and auto needs.  Yes, Jennifer and I have certainly developed a blended professional and personal friendship! 

One day when we had decided to meet for dinner Jennifer mentioned “The Shack” by William P. Young, and suggested I read it because it had such an impact on her.  Several months later I read it, and was really enthralled by the descriptions of the energetic essence of God, His son Jesus and the Holy Spirit.  There have been a few recent times when I have thought about William P. Young  and his ability to connect with a similar level of Divine energy that I have experienced when working on a piece of art!  The energetic essence of his written words was extraordinary to me!  I also know everyone has the ability to connect to the Divine energy, and I hope you have this spiritual pleasure many times in your life!

Today I sent Jennifer  the web address to the Inspirational Artistic Impressions site and this was her email comment back to me.

” Well, I just spent a few minutes looking at your paintings!  AMAZING!!

Over the past several months I have read books, and articles that have
made me think of the presence of God in the form of ENERGY and LIGHT.
It has opened my eyes to see people and activities differently.  

All this to say – I LOVE YOUR PAINTINGS!!  

I can see these having a great market value, and being a ministry.”

I am truly honored and inspired by Jennifer’s recognition of the Divine spiritual energy in my artistic impressions! Could God’s energetic essence be compared to an inspirational insurance policy??? 

Source: http://inspirationalartisticimpressions.com/my-doggie/