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Get the latest information and insights on retirement planning and 401k investing from the experts at Ubiquity Retirement & Savings. Get important news that can affect your retirement, along with tips and advice from our team of experts. Call Ubiquity today for a Free Consultation at 855.466.5825.

Medical advancements have greatly improved our quality of health and have allowed us to live longer, extending our retirement years and related costs. Diligent savings combined with the many tools and resources available – such as individual retirement accounts (IRAs) and company-sponsored 401k’s, make it possible to protect today’s otherwise taxable earnings and save for our future. However, one very real and often overlooked threat to our hard-earned savings is the unexpected cost of long-term care and home health care. Are your IRA and 401k protected?

Many of us depend on the following for the security of our retirement savings:

  • Health Insurance
  • Social Security
  • Medicare
  • Personal savings

It’s important to realize that all of these do not ensure the protection of your hard-earned IRA and 401k savings from the potential costs of long-term care.  Hidden out-of-pocket costs for which can drastically impact these savings.

Our lifespan is now projected to extend up to 30+ years after retirement – 65 by traditional standards.

70% of us can anticipate needing some form of long-term care, according to the U.S Department of Health and Human Services.  As older models of retirement planning are based on a shorter life expectancy, we now must consider how long-term care costs–and the tax burden of IRA and 401k withdrawals–can deplete your savings quickly and ruthlessly.

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According to Genworth’s Cost of Care Survey, the projected annual cost for a senior living nursing home facility can easily reach $100,000/year, or over $8,000/month.

While this number should give most Americans a bit of anxiety, some still believe that they have nothing to fear if they have planned carefully with IRA and 401k savings. The catch is in the hidden details: taxes and penalties from taking funds out of your IRA and 401k sooner than your withdrawal schedule.  Paying for long-term care costs can quickly make your money disappear into thin air.

5 tips to avoid drawing funds from your IRA or 401k for long-term care costs.

1. Have a Plan

Avoid being overly confident about your control over the future of your health. In order to save money, many people skip planning for future long-term care costs, thinking: “I won’t need long-term care because my family will take care of me”, or, “IF something happens…my IRA and 401k is my insurance policy.”  This is a set-up for potential disaster.

Certainly, we have control over making good lifestyle choices to maintain optimal health, but none of us truly has total control over the course of our health and aging. Furthermore, don’t be misled into thinking that losing your independent living is limited to the elderly–health issues may arise anytime and could require a period of long-term care even before retirement.

Did you know that sizable withdrawals from your IRA or 401k within a single year can double or triple your tax rate? In some cases, this also means penalty fees if you need this money before age 65. Poor planning can have shattering consequences. Read more information on the downsides of using your IRA or 401k to cover out-of-pocket health care costs.

2. Take Preventative Measures

Take advantage of preventive medical tests available to you through your health and life insurance policies.  Early detection of illness can make a life changing difference in treatment outcomes and maintaining independent living – both of which could have a direct impact on your IRA and 401k resources.

As you prepare to enroll in Medicare Part B (around age 65), make yourself aware of and plan to use preventative doctor visits that are covered with no copay for the first 12 months of enrollment. Read more information on what Medicare covers for preventative services.

3. Educate Yourself

Use resources online and in your community to educate yourself on the details of long-term care costs – it’s expensive! Learn everything you can about your entitlement to free and affordable Medicare and Medicaid health plans. Some are optional and require a premium with some copay, but these supplemental plans are far less expensive and could serve you well in saving money down the road.

While these plans do not cover long-term care costs, they will help protect your IRA and 401k by covering many other medical and prescription costs, including preventative and medical treatments:

  • Medicare (required)
  • Medicare Supplemental Insurance (optional/supplements Medicare enrollment)
  • Medicaid (for qualifying low-income only)
  • Medigap (optional/supplements Medicare)
  • Medicare Advantage plans (optional/supplements Medicare)

Make it a priority to be in close touch with these plans’ enrollment deadlines since they all differ, and missing their deadlines can have significant consequences on your access and coverage.  These plans can help protect you from having to draw funds from your IRA or 401k savings. Make a calendar to help you remember deadlines for when the time comes. Click to learn more about enrollment deadlines.

4. Consider Supplemental Insurance

In order to be truly well prepared for unexpected long-term care costs, look into a supplemental “back-up plan” that’s right for you. A private long-term care insurance policy covers much of what traditional health insurance does not, including: care coordination, home modification, adult day-care, assisted living facilities, and even nursing home care.

However, it is fairly expensive and there is no guarantee that your application will be accepted due to preexisting conditions. You’ll want to consult with an independent insurance broker while you’re still fairly healthy (ages 50-60) to determine if this option is right for you and your budget.

Fortunately, there is now a growing marketplace for more affordable supplemental alternatives that are well worth looking into as well:

  • Friends and Family Care
  • Short-term Care (Convalescent) insurance
  • Critical Care and Critical Illness insurance
  • Life Insurance with a LTC Rider
  • Annuities with Long-Term Care Riders
  • Deferred Annuities for after Retirement
  • Medical Savings Account

For more information on insurance alternatives, visit https://www.investopedia.com/articles/personal-finance/100515/4-best-alternatives-longterm-care-insurance.asp

https://www.dummies.com/health/long-term-care-provided-by-family-or-friends/

5. Take Accountability

When you consider the reality of what needing long-term care means, think about the possibility that you may become quite disabled and unable to be accountable for making sound decisions. The responsibility often falls upon your family.

This could be in a variety of ways: tending to your daily care, taking on your financial burdens, and making difficult decisions related to everything from your medical care to the management of your personal finances. Having plans laid out in advance can offer peace of mind for everyone.

A living will (which can assign things like advance directives and power of attorney) is one of the ways to help the family protect you, and your IRA or 401k, when you aren’t able to yourself. Click here to learn more information on drawing up legally binding online wills that circumvent expensive attorney fees.

Year End Retirement Savings Resources: From the horses mouth

 

As we prepare to close out 2019, it’s important to stay focused on your financial goals during this very busy time of year. 

Our team of experts spoke with some of the country’s leading financial news sources to share how retirement savers can get in shape for a strong start to 2020. Here are our top suggestions: 

If You Aren’t Participating In Your Company’s Retirement Savings Plan, Enroll.

When it comes to saving for retirement, the hardest but most important step is getting started, according to our Founder and CEO Chad Parks. 

Chad spoke with Grow, a personal finance site affiliated with CNBC, to explain why it’s critical to reconsider taking advantage of your workplace retirement benefits during open enrollment season, which typically occurs during the last few months of the year. Chad also explained the benefits of contributing to a 401(k) and why, even if your company isn’t offering a match, it pays to participate and take advantage of tax savings.  

Increase Contributions to Your Retirement Savings Account.

Every fall, the IRS announces new contribution limits for retirement savings accounts for the upcoming year. These guidelines are incredibly important for savers as new restrictions, or lack thereof, can have a big impact on your nest egg over time. 

In the new year, 401(k) participants will be able to contribute an extra $500 to their accounts for a total annual limit of $19,500, while the annual contribution limit for IRA accounts remains unchanged at $6,000.

FoxBusiness.com and Bankrate sought expert insight from our Senior Vice President, Andrew Meadows, on these new contribution limits for 2020. He explained why that extra $500 of wiggle room might not seem like a lot for 401(k) savers, but it will make a big difference over time thanks to the magic of compound interest. 

Calculate Your Anticipated Rate of Return for Retirement. 

While it’s critical to consider your savings rate for the upcoming calendar year, it’s equally important to start thinking about how much income you’ll need in retirement. Have you taken into account recurring expenses, such as car payments, in addition to surprise expenses like medical bills? 

Chad recently spoke with MarketWatch to explain why neglecting future expenses is one of the biggest oversights for savers and how you can structure your savings strategy now to properly account for this. 

Pay Yourself First and Prioritize Retirement Savings. 

Let’s face it. With pensions nearly extinct and Social Security funding at risk, we have to rely on ourselves to establish and fortify our nest eggs. Thankfully, millennial savers have already accepted this reality according to a recent study from Wells Fargo

Chad joined Yahoo! Finance live and on-set to urge all savers to keep these realities in mind as we move into the new decade. He explained why putting retirement savings as a top-line item on your budget can set you up for success in the new year and beyond.

For more timely retirement savings tips and guidance from our team, please follow us on Twitter, Facebook, LinkedIn and YouTube

Nothing is certain except death, taxes, and market volatility.

As part of our new program, CensiblyYours Financial Wellness Tools, we’ve partnered with Kaye Captial Management to help make you make smarter investment decisions. We spoke with their investment experts about ways for retirement savers to survive the market’s ups and downs.

In general, how do market downturns impact 401k accounts?

Investing in the stock market comes with inherent risks, including market volatility. One key to mitigating these risks is to take a long-term approach to investing. Retirement plans, like 401ks, should be seen as long-term investments that can handle market downturns, especially for younger participants. Think about the mountain of a stock market graph—although there are fluctuations downward, the general trend is positive. As such, sit tight with market downturns, because a well-diversified portfolio should net a positive return over the long term.

For individuals closer to retirement, choose assets with less risk to maintain principal. Because you have a shorter time horizon, selecting lower risk assets may not generate a high yield, but should help you retire comfortably by preserving principal.

How should 401k investors react to market volatility?

Market fluctuations are part of the game when it comes to investing. If you are properly diversified and you are able to stomach the volatility, you will be better off in the long-term.

Participants who are not in target date funds or models should rebalance their portfolios during market volatility to make sure their accounts have appropriate risk parameters.

How does market volatility impact retirement savers over 50, or those close to retirement?

Market volatility is more impactful for those over 50 because they have a shorter time horizon for investment than younger participants. However, those over 50 tend to know what it’s like to go through market fluctuations, so they understand that although the market can be is volatile short-term, investing for the long-term can contribute to the growth of your nest egg. A participant over 50 is better served to invest in less-risky assets to preserve their principal. By doing so, they mitigate the potential for a major crash just before retirement.

People close to retirement do not have the luxury of waiting out volatility. Older savers should look at their total portfolio risk exposure and decide if they are comfortable with the risks they are taking in their portfolios.

What steps should retirement savers take now to prepare for a potential market downturn?

Rebalance your portfolios, or ensure your investment third party accommodates automatic rebalancing, to ensure proper diversification to mitigate short-term market downturns. Modern portfolio theory dictates that diversifying your portfolio among asset classes allows for a much more consistent and stable return on investment. Rebalancing annually also ensures the participant that they are properly diversified.

Savers should consistently monitor their portfolios and rebalance them to the correct risk tolerance they believe is right for them. You cannot predict a market turndown, but you can prepare by ensuring your portfolio has the appropriate amount of risk for the return you expect.

Generally, how important a consideration is age when planning for retirement as part of a couple? Is this something couples tend to overlook?

Investing early, and often as a couple, can dramatically impact your success for retirement and is often overlooked at a young age. Compounding interest generated over time benefits those who save early and can put you well ahead of your peers, helping you retire on time.

More important than age is creating a financial plan and sticking to it. Understanding where your money is going on a daily basis and creating a plan for the future is necessary for success. Each person is different; some want to work until they are 70 while others want to retire at 60. Creating a plan and sticking to it will help couples identify the best time to retire.

What value does a partnership with Ubiquity provide to your company?

Ubiquity provides a comprehensive financial planning product through the CensiblyYours solution. This solution helps employees allocate their retirement money based on the level of risk appropriate for their age, while providing a financial planning tool to help employees hit their retirement goals.


This blog serves as information material from Kaye Capital Management (“KCM”) and does not serve as investment advice or recommendations by KCM or Ubiquity Retirement + Savings (“KCM”). Please remember that past investment performance is not be indicative of future results.  Different types of investments are associated with varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Kaye Capital Management (“KCM”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from KCM or Ubiquity.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Both Ubiquity and KCM are neither law firms nor certified public accounting firms and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of the KCM’s current written disclosure Brochure discussing their independent advisory services and fees is available upon request. Ubiquity is not affiliated with any independent services you may solicit from KCM.

This week we were excited to announce the launch of CensiblyYours Financial Wellness Tools, our newest innovation to help small business employers and employees make the most of their retirement plan and improve their overall financial health.

As part of our new suite of offerings, we’re providing participating savers access to Edukate, a fintech benefits platform that empowers employees through personalized financial education and guidance. So what exactly is financial wellness and how does it create a more productive, engaged workforce? We sat down with the experts at Edukate to discuss how investing in your employees’ financial well-being can set your business apart in the marketplace.

Define what financial wellness means to Edukate.

The concept of financial wellness can be a bit overwhelming as there are a number of definitions out there.

At Edukate, we believe financial wellness is the relationship between a person and their money.

A financially healthy employee is actively managing their day to day spending, is confident as to how they can protect themselves from future unexpected life events and is saving for their financial freedom.

How can companies adopt and promote financial wellness in 2019?

Open enrollment isn’t the only time you can make a difference in how your employees interact with their benefits.

Platforms like Edukate are breaking the mold of having to roll out benefits during open enrollment. The majority of Edukate’s plans are implemented outside of an open enrollment period.

When you’re looking for a financial wellness benefit, it’s important to find a platform that meets the specific needs of your organization.

For example, if employees aren’t participating in your 401k, find out why. Employees may cite reasons such as not fully understanding the program or that they have other financial concerns they want to address first.

A strong financial wellness platform for your organization can educate users on how to use their 401k program and how they can tackle other debts or financial stressors to be able to start participating.

Typically, employees only hear about voluntary benefits right after launch or when they’re just starting at a company. To keep employees engaged, we recommend quarterly campaigns to ensure employees understand and feel empowered to use their benefits.

What are the key components to a company’s financial wellness program?

Like any benefit, a financial wellness program should be easy to access, administer, and use.

At Edukate, we focus on three key areas for success.

The first is employee engagement. Many employees never engage with their benefits because they’re boring and uninviting. By offering personalized guidance and interactive content, we’ve rethought employee engagement from the ground up.

The next is platform scalability. Edukate makes it easy to customize your employees’ experience, communicate with them, and get in-depth insights into how they are doing.

Lastly, is system integration. We are a one-stop benefits destination for employees by providing guidance for financial challenges and connecting them with the employer benefits that matter to them most— all while cultivating a culture of positive wellness.

Why is financial wellness important for employee retention?

There are plenty of statistics about how financial stress affects employee engagement and productivity.

When an employee is disengaged at work, the organization suffers. Lackluster productivity, absenteeism, and negative attitudes are common side effects.

When you offer benefits that employees need and want, they’re more likely to use them.

And if those benefits can help employees reduce their financial stress, productivity and engagement increases. When employees feel empowered by their benefits offerings, sentiments about their employer increase as well.

For some employees, this favorable perception of their employer drives loyalty to the organization.

The same survey also found that many employees would prefer more robust benefits offerings over an increase in salary.

Happy employees are productive employees.

How does achieving financial wellness work in tandem with saving for retirement?

Edukate’s approach to financial wellness is to help employees navigate every aspect of their financial lives, including managing their spending and saving habits, preparing for the future, and saving for retirement.

By helping employees address their financial stressors and feel more confident with their financial decisions, we believe that employees can better prepare for the future.

As employees learn about their personal finances, Edukate recommends existing employer benefits like retirement accounts to help them achieve their goals.

How does Edukate help promote financial wellness, and what inspired the company to pursue this mission?

Edukate was created with a belief that traditional retirement and financial education are broken and that there were better ways to help employees achieve their financial goals.

At Edukate, we empower employees to practice confident decision making to best utilize the benefits that matter to them most.

We accomplish this by offering an exceptional online platform that connects employees with education, tools, and benefits most relevant to their needs.

What has been the biggest barrier for small business to provide financial wellness benefits?

Even though financial wellness benefits can provide a positive return on investment, securing budget for a new benefits platform can be tough.

When working with small businesses, we work to find ways to rollout financial wellness in phases to different employee groups to give HR managers room to grow the program over time.

Why was a partnership with Ubiquity important to your company?

Partnering with Ubiquity offered Edukate a way to scale a financial wellness resource to smaller employers.

We recognize the need for small business owners to provide robust benefits to their employees. Nearly 90% of employees in the US work for employers with fewer than 20 employees.

Because retirement planning is one of the key focus areas of Edukate’s platform, partnering with Ubiquity helps us connect employees with the resources they need to fully prepare for retirement.

This blog serves as information material from Edukate and does not serve as investment advice or financial recommendations by Edukate or Ubiquity Retirement + Savings (“Ubiquity”). To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with and independent professional advisor.  Both Ubiquity and Edukate are neither law firms nor certified public accounting firms and no portion of the newsletter content should be construed as legal or accounting advice.

For as different as Millennials and Baby Boomers are, they have one major thing in common. They both dream of a secure retirement someday.

There has been a lot of talk from retirement experts that millennials won’t be able to retire on time. But when you look at the statistics, the message isn’t as doom and gloom. Millennials are actually saving almost as much for their futures as baby boomers are. Boomers currently save, on average, 9% of their survey, while millennial are saving 8%. Their contributions also increase at a much higher rate than boomers. (Though it’s easy to attribute the discrepancy to the rapid change in salary at the beginning of your career.)

According to The 18th Annual TransAmerica survey, about three in 10 workers have dipped into a retirement account for an early withdrawal or loan from a 401(K) or similar account. Boomers are far more likely to have done so than their younger counterparts. About 36% of Boomers have taken a loan, while the same is true for only 28% of Millennials.

Procrastination is, unsurprisingly, a trend most prevalent among young workers. About 54% of Millennials prefer not to think about retirement investing until they get closer to their retirement date. Among Baby Boomers, significantly closer to their magic retirement age, that number is about 25%.

Want to learn more? See our roundup below!

The looming retirement crisis is a term that sounds ominous – and it is. Millions of Americans dream of a retirement that includes their hobbies and loved ones. Unfortunately, the harsh reality is that many of those dreamers will never actually get to retire because of a seriously inadequate nest egg that is supposed to sustain them through their twilight years.

America needs to wake up and realize we have a serious problem on our hands. It’s not an abstract one, but rather an issue that has specific origins. We have no chance of reversing the problem without figuring out how we got to this point and what we need to do to prevent the looming retirement crisis.

Here are the main obstacles we face:

1. Coverage

Study after study has shown the easiest and most effective way for people to save for retirement is through an employer-sponsored retirement plan, whether it’s a 401k, IRA or another vehicle.

Over 40 million employees – especially those working at small businesses, don’t have access to a work-sponsored retirement savings plan.

Our solution? Mandated retirement savings plans. State governments are getting involved in this solution, but more needs to be done so that all workers have the opportunity to save at work.

2. Participation rates

Even among employees with the opportunity to save at work, there is an alarmingly low participation rate of only 52 percent, according to the Bureau of Labor Statistics. The retirement industry and government need to find a way to get people to utilize their plans and save money for their future. When employees have to opt for a plan, many wrongfully assume they need the money more now than they will later.

Our solution? Auto-enrollment. Research indicates that when people are auto-enrolled in a retirement plan, they stick with it after seeing how easy it is to use and its benefits.

 

 

3. Saving enough

In an earlier post, we discussed the new reality of retirement savings sources: Pensions are basically extinct, and Social Security is unstable. That means you alone are responsible for saving enough to last you through retirement.

The problem is that most people’s nest eggs are underfunded. According to the Employee Benefit Research Institute, 57 percent of workers report that the total value of their family’s savings and investments is less than $25,000 (this figure does not include the equity in their home or a defined benefit plan). Of that group, 28 percent of people have less than $1,000 saved.

Our solution? Auto-increasing savings amounts. For workers enrolled in a defined contribution plan, it is difficult to remember to keep increasing their deferral rate; plus, many people second-guess the decision as they believe they need the money more now than they will later. By auto-escalating deferral rates, we can help people save more without putting the burden on them to elect to save more.

4. Investing appropriately

Investment selection and portfolio allocation both seem to trip up savers very frequently – and with good reason. After all, most people don’t have expertise in the markets, and yet their future ultimately depends on these very complicated concepts and products.

It’s no surprise we are concerned that people are not investing appropriately for their age, risk tolerance or current market conditions. How can you know what is considered appropriate for you when you’re tasked with doing this on your own?

Our solution? Cost-effective professional advice. When there is a plumbing issue in your house, you call a professional plumber. It’s that same logic that should encourage the retirement industry and employers to offer professional resources to assist savers with their investment selection and ensure its suitability for their unique situation and goals.

Download Ubiquity’s Definitive Guide to Small Business 401k

Our book club is currently reading Daniel H. Pink’s To Sell Is Human, and this week’s reading surfaced an interesting tidbit of information: we find it hard to relate to future versions of ourselves.

“To those estranged from their future selves, saving is like a choice between spending money today or giving it to a stranger years from now.” – HERSHFIELD et al.

Is this why so many of us live for today, unknowingly aligning ourselves with the philosophy of Epicurus, which states that pleasure is the greatest good?

We can’t escape the rules of cause-and-effect; what we do today has downstream consequences.

The donuts, the late night ice cream sneaks, the stubborn adherence to a strict policy of no exercise. These choices that I made years ago are affecting me today.

I have proof. I’m sure others can relate.

What, then, can be done to save our future self? Are we doomed to forgo sacrifice instead of pleasure, planning instead of impulse?

No.

“Light Strokes, Fell great Oaks.” – Benjamin Franklin

Just as my impulsive behavior years ago is the bane of my waist-line today, the Krispy Cremes, baby back ribs and el grande pork burritos I eat or do not eat today could harangue my figure a year from now.

If I make small modifications and compromises, like eating light meals two or three times a week, forgoing a $4.50 mocha, maybe not eating out as much, and possibly using the extra money I save to invest in my 401(k) plan, and maybe, just maybe running around the block a few times a week and doing push-ups before going to sleep, I might be in better shape a decade from now had I not made these small adjustments.

What do you think? If you can take a small series of actions that lead to a great payoff, would you do it?

Will you?

What can you do if you need cash, don’t have adequate savings, and taking out a loan from a bank or friend isn’t an option? What if you are trying to buy your first home and are coming up short for the down payment? Many people turn to a 401k loan, that allows you to borrow the money you’ve already invested.

While it is your money, it is important to note it takes people about three weeks to receive their loan. Plus, before you can get a loan it has to be approved by both your 401k provider and your employer. So if you need money right away, this might not the best option for you.

Additionally, since this is a workplace benefit offered through your current employer, it’s not wise to take out a loan if you plan on leaving your job in the next few years. Here are some things to think about:

1. Personal vs. residential loans

A residential loan can be used for purchasing your first home or primary residence. Your employer and even the IRS may be more lenient with this type of loan and give you up to 15 years to pay it back.

A personal loan can be used for almost anything, including student debt, a new car, healthcare expenses, etc. You may only have five years to pay off a personal loan.

No matter what type of loan you take, the minimum you can withdraw from your 401k is $1,000, and the maximum is half of your current balance or $50,000.

2. Interest

You may be thinking, why do I have to pay interest on a loan I took from myself? The IRS wants you to pay interest to mimic the gains your 401k could have made if the money had stayed invested. Your interest rate is calculated by taking the prime rate – the interest rate that banks charge to their most credit-worthy customers – and adding 1 to 2 percent, depending on your provider.

3. Fees

In addition to paying your interest, you will pay some hefty fees. If you are taking a five-year loan, you could pay upward of $500 in fees on top of what you initially borrowed. Why?

First, there is likely an administration fee (sometimes called an “origination fee”) that goes toward drawing up your paperwork, writing the check and transferring your money. After that, there is an annual administration fee to cover the maintenance of your loan.

4. Repayment schedule

Loans are repaid the same way you contribute to your 401k – automatically and through your paycheck. Since this is a workplace benefit and not built to be easily accessible, most providers will only let you have one active loan at a time. This means you need to completely pay off one loan before taking out another from your 401k.

5. Defaulting

Defaulting is when you can’t make your loan payment when it’s due. Like any default, this can have serious financial implications. How can you default if your repayments come directly from your paycheck? One way is if your employment is terminated and you are no longer receiving a paycheck. If that happens, you are required to pay back the full amount of your loan within 60 days, and on top of that, your balance will be taxed and you could even face an early withdrawal penalty if you are under the age of 59 ½.

6. Loan modeling tools

This resource from Bankrate allows you to see how a 401k loan will impact your paycheck and retirement plan. Most importantly, make sure you are prepared for a lower monthly income so you can stay on track to meet any long-term financial goals.

Download Ubiquity’s Definitive Guide to Small Business 401k

Good news – ­it seems the world is finally getting to know us. There is now a plethora of Millennial-focused studies, articles, and apps that cater to our vast, diverse generation and rightfully so, as there are more than 80 million of us in the U.S. alone! Here’s what Millennials need to know about money, whether it’s becoming more familiar with investing, saving or more educated about money, there are resources to help us achieve our goals.

1. Millennials should make these 3 moves now to retire with $1 million

This Money article goes beyond the typical “start saving early” tip that we have all heard. Instead, the piece gives actionable steps we can be taken to retire with a healthy nest egg, such as allocating our portfolios heavily toward stocks. The real gem in this article is the warning to avoid investments laden with fees we may not have even known existed. It’s time to stop wasting our money and start putting it to work for our Future Selves!

 2. Capital one survey uncovers Millennials’ attitudes on spending, saving, and sharing

Ever wonder how your friends viewed money, but couldn’t figure out how to ask? You’re in luck because this recent Capital One survey, entitled Millennial Mindset on Money, asks for us. The study looks at some important questions about finance and privacy, security, personal relationships, and technology—basically everything we care about. For example, did you know more than 14 percent of those surveyed said being a money moocher is a deal breaker when it comes to romantic relationships? How many respondents do you think said they would use Facebook to access their money? Check it out for more eye-opening responses.

 

3. Acorns

Finally, there is a financial management app designed specifically with our needs in mind! In a world where we are faced with mountains of student debt and a high cost of living, it’s easy to feel like we just don’t have extra money to be investing. Acorns allow us to take our spare change from everyday purchases and invest it into one of five diversified portfolios. As an added bonus, we can make unlimited deposits and withdrawals at no cost so our money can be flexible with our unpredictable needs. Acorns is a free app to download, and it costs as little as $1 per month to maintain. Good news students – it’s free for you!

A Vocation and Avocations

Derek George / 26 Feb 2013 / Ubiquity Insights

Nathan Bolt is a friendly, helpful, burgeoning young professional with whom I’m speaking about vocations and avocations, passion and happiness, the future, and now.

Victor: Some people have this idea that if they work hard, they get to play hard. On the other side of that there are people who scrounge and scrounge.

Nathan: I think it’s prevalent in our society to kind of live this deferred life plan model, where you work most of your life and maybe take one or two vacations a year with your family, that when you’re 65 or when you retire, that’s really when you get to enjoy yourself. I don’t think that’s for me, because when I’m 65, I don’t think I’ll enjoy the things I would have enjoyed when I’m 25 or 35. While I’m young and active and able to do more things because I’m healthier, that’s when I want to enjoy myself.

But at the same time, you have to think about the future. I think it’s a balance.

Right when I turned 18, I started a Roth IRA.

I can make my budget and contribute my maximum and really make sure that my investments grow over time so that by the time I’m thinking about retiring I’ll be set.

V: Have you ever heard of an avocation? An avocation is something you can be a specialist at that isn’t necessarily a money-maker but something that gives you a work/life balance. For some people, it’s what makes their life worth living. Do you have anything that you’re passionate about?

N: Music, specifically electronic music. Recently I’ve got some DJ equipment, and I started messing around with that.

With my free time, I will be learning how to DJ as a hobby.

When I’m passionate about that I’m just happier in general with my life and that translate into all aspects of it including my vocation.

Happiness goes beyond passion and Nathan understands this, “I’m always the type of person who when in a situation that is hands-on, dealing with people, I’m happy.”

It’s hard for me to say that I’ve met anyone more well-rounded than this confident gentleman.

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© 2019 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

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