How to avoid financial stress in retirement

 Today, social security is a central issue in the attention of public opinion; in fact in recent months the government is already working to launch possible reforms to innovate our social security system which today would seem to be no longer sustainable for SSA. .

What is the pension gap?

It is the quantification of the difference between the last earned income from work and the first retirement income, to date the scenario that lies ahead is quite hostile in fact on average we will retire with 60% of disposable income compared to the working one. Among the aspects to be taken into more consideration that can aggravate this income loss are inflation that will lead pensions to lose purchasing power in the coming years, and the factors linked to aging for which adequate financial resources are needed to be able to manage better. This process of awareness and analysis are factors related to proper financial planning that every self-employed or employee is preferable to do.

How can I structure a complementary pension activity?

Let's start by giving a definition: The  supplementary pension is a savings activity linked to a sum of money paid out in the form of an annuity or capital that supplements the occupational pension, mainly it is an activity that the taxpayer decides to do independently to protect his standard of living from possible financial stress that could occur in retirement, through the subscription of a recurring premium or single premium solution established by insurance companies, banks or asset management companies. Specifically, the premiums paid by the member are invested on the financial markets in order to give a certain response against inflation and to obtain returns that can generate capital over time. Quite different situation if you already have a capital and therefore there is no need to create it in the years before retirement, at that point the focus is on optimizing it in such a way as to protect it from inflation and give it an opportunity for growth with returns that would not be guaranteed if left available on the current account or by other deposit instruments. The most used tool in this regard is the single insurance premium which allocates resources a bit like the recurring premium but is distinguished by the frequency of payments, in fact, as you can well understand, only one payment is made.

Could this be the right path to take to bridge the pension gap?

I would certainly say yes because the retirement phase of a person who has chosen to deprive himself of a small part of income today and move it into the future will be better than those who have decided not to take into account the only certain risk  that all producers of income they will face one day in their life.

Where are my savings invested? Can I take them back at any time or am I bound?

The instruments available to the member are many since they can be set up with different mixes of equity and bond component, based on the age of the member and their risk appetite. The choice of one instrument over another depends on the  individual objectives , the time horizon  and  the risk appetite  of each, which is evaluated together with the trusted consultant in the pre-contractual phase. In the case of stipulation of a recurring accumulation plan for social security purposes, the fundamental aspect is sustainability by the member of the payments to be made on a monthly, quarterly, half-yearly or annual basis, payments structured in such a way as to be modifiable and suspendable, but at the same time binding upon expiry if the set objective is to be achieved, to obtain a monthly annuity or the entire capital. Participation in this type of activity can be done by everyone, from infants to over 65s. Obviously, the sooner you start, the lower the monthly amount needed and the less market fluctuations will affect. Time is in fact the main ally in this type of activity.

 In case I fail to honor my commitments, will I lose my money?

In the event that despite the planning work well done, the member is unable to "due to an unforeseen event" ( not adequately assessed at the signing stage),  to carry out the signed plan, he can interrupt the payment in most cases by 6 months to 1 year and resume it when you are in the optimal condition by recovering the payments of the suspension period, if the impossibility is permanent, you can leave what you have set aside up to that moment to accrue until the moment of retirement or ask for early redemption with penalties where provided for in the contract.

The advice that I always leave in custody to my clients, which is the basis of a correct financial planning, is to combine a savings activity managed completely independently alongside a pension plan that is easily accessible and can be released at any time, therefore for example if an individual with a saving capacity of 200 Dollar per month is preferable for 120 to use them to set aside money for social security purposes and 80 to manage them as an independent source of savings, in such a way as to still have the necessary financial resources to face unexpected events, because the funds allocated to the retirement provision must absolutely not be taken into consideration for these reasons.

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Read also: John Labunski

 

Financial planning represents consulting process.

 Financial planning represents the second stage of our consulting process.

 Financial planning focuses on your income and assets and aims to achieve your goals and life plans.

 Have you ever wondered why you invest?

 Many investors don't know why they save or even why they invest. We help you research your why and better define your life goals.

 How important is it for you to have a project to make sense of your personal and professional life?

Creating a life plan can be scary because it means getting involved and facing change, moving from abstract concepts to concrete goals. But putting a dream on paper is the first step to make it come true.

 Do you have dreams in the drawer and if so which ones?

 The natural predisposition to deal with what happens to us today, ignoring issues that in our hearts we know will have to be addressed one day, is a clear violation of that principle of rationality that should guide us to optimize our choices .

 The purchase of a new car, the studies of the children, the integration of the pension are objectives with different deadlines that need to be planned in order to reach them more easily and without worries.

 The planning process takes the form of identifying the objectives / needs and the subsequent ability to achieve them as efficiently as possible given the available resources.

 What Are The Goals Of Financial Planning?

 ·         Bringing order  to the financial, asset and insurance situation.

·         Acquire full  awareness of priority financial needs and available resources .

·         Create an adequate pension to grow old with serenity.

·         Freeing up available assets .

·         Afford  exceptional expenses , while remaining consistent with the established plan.

·         Protect yourself from the  (harmful) commercial pressures  of the system,  be autonomous and aware of your choices .

·         Lower costs  (to increase results), defend yourself from inflation and tax burden.

·         Protect assets , foresee and manage unexpected events, but above all risks.

·         Optimally manage income and liquidity, but above all expenses; adopt a plan consistent with the objectives set.

·         Dealing with a single interlocutor and having a global vision of heritage.

 What is planned must be monitored and checked periodically to understand if you are getting close to your goals.

 The help of an independent financial planning expert is useful to support you and help you keep the established course or correct it as new needs arise.

 From the statistics published by Plus 24, financial planning seems practically absent among the habits of United State:

 ·         60% do not follow a precise rule in the management of personal finances;

·         Almost all of the remaining 40% decide by sequentially defining one spending target at a time.

 Only a third of the interviewees have a financial plan and of these just under 40% monitor its progress in detail, noting the expenses. Of those who do not plan, 42% believe it is useless to have a plan, either because they lack the ability to save or simply control expenses.

 For a company, a family, but also for the individual, it is unthinkable to face present and future challenges without adequate planning of objectives, resources and savings.

 Waiting is not the solution, but the biggest of your problems, because there is no bright future without adequate financial planning.

  

Posted by: John Labunski Expert Guidelines

Financial reserve for companies, how to plan?

 In numerous cases, we can say that companies follow the same pattern of domestic finance management. Just as many people do not set aside personal money for a time of need, many companies also maintain this behaviour.

 A behaviour that obviously reflects the mismanagement of entrepreneurs when it comes to saving resources and knowing how to maximize them.

 If you're also in this group, it's time to turn the tables and start planning your company's future. In this article by John Labunski , see tips to learn how to plan your business financial reserve!

 What is the corporate financial reserve?

 In summary, the corporate financial reserve is an amount, in cash, that must be saved, or rather: invested. And, preferably, these investments should occur in short-term and more liquid investments.

 Thus, your company can count on this financial resource when you need it most and quickly. In fact, it is the possibility of quick rescue that allows companies to be safe in financial emergencies.

 Booking in some type of application has two advantages. First, your money does not stop at savings, which currently have a monthly income of less than 0.50%.

 Second, it prevents business managers from using all the profit with superfluous expenses that will not benefit the business. For example, with investments in machinery and labor for the company to grow the operation.

 Why have a reservation for your company?

 The simplest and most direct answer is: because you will never know when you will need to save your company from some difficulty.

 During the pandemic period, we saw many businesses close their doors because they were unable to keep operations running.

 In fact, the pandemic generated an economic crisis and negatively impacted all market niches.

 But the question is: if all the companies that ceased to exist had a financial reserve, would they need to close their activities and even file for bankruptcy?

 Therefore, corporate financial reserve is not a luxury, it is a necessity!

 How to book then?

 First, you need to rely on your sense of organization and financial planning. It is not possible to have a reserve of money if you do not know what your business's fixed and variable expenses are.

 Then, keep this monthly expense data in a spread sheet or management system. In addition, cash flow control must be efficient. Thus, you identify how much your company sells and profits monthly.

 Knowing how much your business makes a net profit, think about the margin (percentage) you want to invest in investments. But it is important to remember that, starting from the investment, try to “forget” that this money exists.

 Only redeem it in an emergency, never to pay personal bills or do risky business.

 In addition, be faithful to your planning and, if necessary, count on the experience of John Labunski to assist you in all these steps.

John Labunski Financial Consulting: 10 reasons to hire

 2022 starting and you still don't enjoy efficient financial advice for your company? Most successful and solid companies in the market already use financial consulting to improve business management.

 So, if you're not part of this group yet, it's time to think about including this work in your business routine.

 To further boost your decision to seek consulting service, we have selected 10 reasons that will make you consider hiring a consulting service. Check out!

 1. Impersonal analysis of your business's financial health

 John Labunski financial advisor has a clearer, more impersonal view of your company's financial situation. Therefore, this makes all the difference in a complete analysis of your business's financial scenario.

 A consultant, in fact, has no attachment and, even less, limiting beliefs that prevent the implementation of necessary changes in financial management.

 In other words, the professional will be able to act with more transparency, firmness and lead the company to success more easily.

 2. Improved productivity

 With extensive know-how, financial consulting has sufficient resources and knowledge to increase productivity throughout the company – or in any department of it.

 A consultant is certainly capable of providing more efficient working conditions by remodeling internal processes.

 3. Increased return on investment

 A recent study by Vanguard points out that the most experienced consultants –– can increase client returns by about 3% per year.

 This happens mainly in a long-term scenario. Therefore, this data serves as the first reason why a financial advisor can benefit you.

 4. Guidance on investment strategies

 Increasing wealth also means knowing how to invest in the right way. However, many companies are full of cash, but choose their investments poorly.

 That's where the consultant comes in again, a professional with the ability to help you select the best investments for each moment of your business.

 5. Focus on the company's main activity

 While the business manager focuses on commercial partnerships and business growth strategies, the consultant works specifically on the financial side.

 This, in fact, is essential for the entrepreneur to have more peace of mind to manage business operations and employees.    

 6. Definition of short and long term goals

 Without a clear objective, a financial strategy becomes incomplete. In this sense, therefore, an experienced consultant can help in defining these short-term and long-term goals.

 7. A financial consultancy prevents the manager from making serious mistakes

 By hiring a financial consultancy, you ensure that your mistakes in the present and in the future are as small as possible.

 After all, the consultant has the important role of preventing you from investing resources and tools that are not suitable for your financial reality. 

 Remember: some mistakes can cost a lot of time and money!

 8. Debt Consolidation

 A consultant will not only be able to guide you through financial planning, but will be able to assist you in debt consolidation processes.

 It should be noted that, in many situations, debt arises and accumulates due to mismanagement of corporate finances. So, to prevent this from happening, John Labunski Dallas is able to devise more efficient budget strategies.

 9. Identification of management problems

 Those who are in the middle of the turbulent sea cannot see where the management problem lies within the company itself.

 That is why the figure of the consultant is so relevant: he is able to identify and assess problems, real and potential, in an organized and agile way.

 10. Actual growth projection

 Any company needs data analysis to be able to plan its

 Sustainable business growth depends on the most efficient analysis of financial data. With this analysis, you can plan the next steps according to your production capacity.

 In addition, it makes it easier to make growth projections and make strategic decisions.

John Labunski ways to start a business online: expert tips

 Would you be able to tell us which are the ways to undertake on the internet that can yield the most expressive results for your business? In a similar way, would you still be able to tell us something about how the virtual environment can make a difference for companies today?

 We are well aware that nowadays, the internet has become something indispensable for companies to be able to reach, in fact, the public they wish to serve. Also through it, it becomes possible to ensure that, regardless of the item that is marketed, such as solar panels or even a remedy for fleas and ticks , a business can be considered as sustainable in financial terms.

Therefore, considering such statements, we will with this post in particular bring more and more complete information on this subject. All this so that, by knowing more about this topic in particular, you will be able to apply such knowledge in the reality and practice of your business with the online media.

 Entrepreneurship on the internet: how is it possible?

 The ways of doing business on the internet can include different types of segments, whether with the sale of products or even services such as, for example, in the case of the commercialization of real estate appraisal courses .

 From this, seeking to help you in the process of understanding how the online environment can make a difference for companies, below are some tips on how to enhance the results of your business on the internet as a whole. These are:

 Transform your business into an e-commerce platform

 Migration to the online environment appears to be an increasingly common reality among companies. Therefore, when well structured, your e-commerce can bring you important gains and space in your field of action in the market.

 Use your social media influence to your advantage

 Using your influence in digital media can also be a great solution for brands to see their work as an important source of publicity for their products or services.

 Invest in your ability to impart knowledge

 When you are sure you have good and solid knowledge in a certain area, the action of trying to sell this knowledge in the format of online courses has become an increasingly common practice among people.

 Know how to communicate with your workforce

 Nowadays, especially in the context of professionals considered as “freelancers”, the action of knowing how to communicate their strength and work capacity proves to be essential. This is because we can consider the fact that it is precisely from the moment of the correct disclosure of your services that new people interested in your professional activity will emerge.

 Be present in application development

 Finally, as it is an increasingly evident area in the technology market, application development turns out to be an important alternative for professionals who demonstrate a certain capacity and skill with the creation of these digital mechanisms.

 Undertaking on the internet: final considerations

As we can see in the course of reading this post, the action of seeking to identify the ways to undertake on the internet that can yield good results for companies from different market segments proves to be of fundamental importance for all those people who aim to have some success in the online environment.

 In this way, when looking at each of these strategies, we can understand that their adoption is capable of representing a great impact for organizations, as it can reach the most different areas of a business, having a greater or lesser degree of complexity. and regularity.

 This text was developed by the John Labunski blog team, where you can find hundreds of informative content about different segments.