Disability Insurance

Disability insurance, whether from private sources or through social security can make a huge difference for your financial security after an accident. Sometimes an accident can greatly alter your ability to work or the level to which you can perform your job and disability insurance can help you to make up the difference. Some insurances provide temporary help for short-term disability while others provide long-term help for debilitating injuries.  Depending on your circumstance you will need to choose which kind of disability insurance makes the most sense for your needs.

Lawsuit Settlements

If anyone else was involved in your accident or it took place on a person or business’s property, you may be able to file a lawsuit to help you financially. A lawyer can help you to put together a case and give you the help you need to be successful. Filing promptly can ensure that your case is heard, and your lawyer can help you to decide whether a settlement is worthwhile in your situation. Settlements can cover a wide range of personal injury cases. In a lawsuit, you can get funding to cover medical expenses and to help you with your day-to-day life.

 Apply for Medical Financial Aid

In many cases, there is financial aid available for people who cannot afford to pay their medical bills. If your accident led to major medical expenses that you can’t cover on your own, it may be worth it to apply for financial aid. This type of aid is available through hospitals and doctor’s offices in addition to private funding. By applying for financial assistance, you can get help with your medical bills beyond what your insurance was able to cover.

No matter how your accident occurred, it can have a profound effect on your life and your finances. Doing your best to find financial security after an accident can help you to live your life more fully, even if it is different than expected. Take advantage of available resources to ensure you are taken care of.

For more help with your finances, schedule an appointment to meet with Mike!

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Low Fees

You should seek out banks that have low fees for opening accounts. Most banks offer free accounts at this point, but some may require you to deposit a certain amount of money before it can become active. On top of this, different banks have different fees for taking out loans and using credit.

If you plan to use credit frequently you should find a bank that will support this choice. Otherwise, you can get stuck paying off debt for a long time. Ask each bank what their rates are, and what is expected of you before you do business with them.

A Good Mobile App

In-person banking can be useful, but a technological bank is far more useful. Banks are increasingly offering improved mobile experiences due to demand from young consumers. You should be able to open your accounts, check your balance, and make payments through your bank’s app. This helps people stay on top of their finances and reduces trips to the bank.

Check reviews of each bank’s mobile app online. Some businesses don’t have an effective user experience, making their apps more difficult to use. Those who want a seamless experience on their mobile device should make this a top priority.

Effective Security

With digital technology becoming more common, hacking has also increased over time. It is not uncommon for information to be stolen from an unexpecting patron. Thankfully, most banks can give you options to protect your financial data.

First, banks should offer you plenty of security options under your control: passwords, pins, and security questions can keep people out. Some will also offer you a service that will let you track whether your information is compromised—allowing you to handle it before it becomes a major problem. Seek out these benefits. It is worth a little extra money for financial security.

A bank’s features can add a lot of value to your financial experience. While there are many good options, you truly must analyze the pros and cons of each company. If you do this, you will find great satisfaction and contentment with your bank.

For more financial tips, make an appointment to meet with Mike!

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Medical Care

Most Americans think that signing up for Medicare will suffice for their needs as they get older. However, there are still some costs involved monthly for seniors, for those using Part B services. Medicaid is available for those who have no other assets or who have overwhelmed their available assets as well. Seniors who are also Veterans have specialized care, but it can sometimes be delayed or not available in a timely manner. You will need to look into which of these specific services are best for senior medical care for yourself or those you love.

Housing

According to Assisted Living Center, there are a variety of options for financing assisted living, including insurance, home equity, life settlements, and Medicaid. Medicaid and Medicare do provide for senior care assisted living in a facility, but spaces in facilities are understandably complicated to get into. Also, it’s difficult to fund the complex and unknown amount of time which is needed. Equity in a person’s home can be used in a reverse mortgage, in which a person can live in their own home until death, and take a certain amount out monthly to live upon, a “reverse” amount of what they had paid into their mortgage. This means that their home is no longer paid off when they pass away, but it does give an individual the option of staying in their home.

Hospice Care

If hospice care is needed, there are a few options. According to Hospice Foundation of America, Medicare and Medicaid both pay for some of needed hospice care. Without a deductible, they do need copay charges, however. With this need increasing, there are also charities set up to help pay for such care.

End of life care is one of the most neglected preparation groups, but necessary for all in the later years of their lives. Knowledge in advance can make a big difference. Not only will you be less worried, but you will have a plan established, which will keep your heart and body more peaceful.  

Looking for advice on preparing for your future? We can help!

The post How Can I Afford My End of Life Care? appeared first on Michael Kelley, CFP.

Keep Records

According to Nolo, the most important thing you can do after you get in an accident is to keep detailed records. Records would include detailed photos of the accident with damages sustained to your and the other driver’s car, insurance information, receipts for car repairs and medical bills, and what compensation you have received. When you track your expenses, you have a higher likelihood of claiming the complete cost of damages ensued rather than the other driver or insurance companies underestimating your damages.

Get a Lawyer

Even if the other party from the accident is cooperating, it is best to get a lawyer who can run interference on your behalf and negotiate the best deal for you. Not everyone can cover car and medical expenses out of their pocket before receiving compensation. Your compensation will be processed faster because insurance companies are more likely to cooperate with someone who has the legal backing and credentials to obtain the necessary information. According to Rogers Beltran, insurance companies have an interest in paying you as little as possible. When you hire a lawyer to fight on your side, you are much more likely to maximize your claim.

Hold Your Ground

Too often people do not claim the damages or medical bills caused by an accident. It is a lengthy and difficult process, but insurance agencies make it that way on purpose. They need to protect themselves from shelling out money to everyone who comes asking for it, but you need to claim what is rightfully owed to you. According to Great Plains Autobody, if you do not seek help and fair compensation, there could be damages either to your car or your body that will haunt you for many years. Hold your ground and be persistent in the pursuit of fair compensation, you deserve it!

When an accident occurs, you can take control of the situation. Keep detailed records. Hire a lawyer to go to bat for you. Don’t back down when opposing parties are difficult. Doing so will ensure you receive fair compensation after a car accident.

Read this next: How Should I Measure My Financial Health?

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Invest in a Diversified Portfolio

 An important part of investing, especially when a lot is at stake is making sure that your portfolio is diversified. This means having a variety of different kinds of investments I will protect you in the case that one of them goes poorly. A diversified portfolio would consist of stocks, bonds, mutual funds, ETFs, and other investment types. By diversifying, you can protect yourself and your finances well also giving yourself the best possible chance for successful and fruitful investments.

Buy a Business

There are many benefits to buying an already-existing business. One of the major benefits is that you don’t need to go through the work and the trouble of building a business from scratch. If you aren’t sure you’re ready to buy business altogether, you can invest in businesses while allowing their current management to take care of the day-to-day running of the business. You must do a lot of research before purchasing a business, so you have a good idea of where it stands and what steps need to be taken. Choosing a business that you are interested in and have experience with can you improve your chances of success.

Start Your Own Business

Another great way to invest your newfound money is to start your own business. If you have always wanted to be an entrepreneur your large windfall may be just what you need to get things started. If you choose a business that you already have experience with, it will increase your chances of success and ensure that you know the basics of the industry your new business will be in. Choose something that you love and are passionate about so that you will be fulfilled in your new career and your investment will be worth the time and money.

Investing is always a tricky business. When you If you do it correctly, you can increase your money and improve your financial situation. With the right investments, you can make sure that you make the most of your large windfall. 

For more help with your investments, meet with Mike to get some advice!

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Buy an Electric Vehicle

There’s been a pretty strong push by companies like Tesla to increase the infrastructure supporting electric vehicles. Thanks to ongoing efforts and their environmental friendliness, electric vehicles are becoming more popular. Buying one may also qualify you for a tax credit. You have the potential to qualify for a nonrefundable tax credit up to $7,500. How much you qualify for will depend on things like your tax liability, the vehicle’s battery size, and the vehicle itself. The credit does phase out, and any manufacturer who’s sold over 200,000 electric vehicles doesn’t qualify for the credit. There are still plenty of electric cars that do qualify though, so you still have a chance to take advantage of the credit.

Install Solar

Using renewable sources of energy in your home can be a great way to go green and give your wallet a helping hand. There are specific tax benefits available to those who install a solar panel system for their home. The federal government is currently offering a tax credit of up to 26% of the cost of the system through 2022, after which it goes down to 22% for 2023. In addition to federal tax credits, there are additional tax benefits offered by states for solar installation. These will change from state to state, so be sure to see what yours offers before you install your system.

Go Geothermal

Solar isn’t the only way to power your home. Given that it requires a certain amount of sun exposure to be effective, it’s not always an option that makes sense for every home. Geothermal heat pumps offer an alternative that draws power from the earth itself. The naturally occurring heat from our planet can be harnessed to warm homes and generate electricity. At the end of 2020, Congress extended the tax credits for geothermal systems. They currently match those for solar panel systems, with a 26% tax credit available through 2022 and 22% in 2023.

Going green and qualifying for tax benefits are both highly beneficial. When you buy an electric vehicle, install solar panels, or add a geothermal system to your home, you give yourself the opportunity to qualify. As with anything tax related, make sure you clearly understand what the rules and limitations are before you jump in. That will help you make the right moves to get the greatest benefits.

Worried about managing your investments? We can help you figure it out!

The post How Can I Get Tax Benefits for Going Green? appeared first on Michael Kelley, CFP.

Read the Fine Print

Most people will admit that they do not read the fine print. However, this is not a wise practice. The fine print usually lays out very intricate details of the contract. The creator of the contract often depends on people not reading the fine print. This is where hidden fees can occur. In some cases, someone might sign a contract and realize they are agreeing to more than they thought including memberships and fees that can be expensive. In general, you should always read the fine print just to be sure you aren’t paying more than you thought and so you can protect yourself.

Source: https://safer-america.com/read-fine-print/ 

Choose Smaller Companies

Larger companies are already well-established and aren’t as dependent on keeping every single customer. This means they can charge more money for their services. On the other hand, smaller companies are more focused on their clients. They want to do all they can to keep their clients, so they usually charge less money. If you want to avoid high rates, fees, and charges, then consider taking your business to small companies. These companies might also focus their energy online rather than in-person. This includes banking. Many younger consumers these days prefer online banks due to their convenience. So, companies take advantage of that and move online so they can meet their customers where they are. Overall, a small company is aware of you and your needs.

Source: https://www.podium.com/article/banking-automation/ 

Shop Around

There are going to be a variety of fees no matter where you look. It could be anything from account fees to credit card fees. However, you can still have control over the fees you have to pay. The way you can do this is by shopping around more to see what other banks have to offer. While it’s unlikely you’ll find a perfect match, you can still find an option that doesn’t require so many fees. Try and find the right bank for you.

Source: https://www.bankrate.com/banking/savings/8-tips-for-choosing-a-new-bank/ 

There are plenty of expenses you need to worry about and you shouldn’t have to account for all the fees that accompany financial products. It is possible to avoid paying high fees. It simply takes some extra effort to find better options.

Read this next: How Can I Downsize To Cut My Expenses?

The post How Can I Avoid High Fees in My Financial Products? appeared first on Michael Kelley, CFP.

Debt to Income Ratio

Take a closer look at your debt and income. This is similar to a doctor measuring your height and weight. A taller person can afford to have a proportionately higher weight before it becomes unhealthy. In a similar fashion the higher income you have, the more debt you can reasonably manage. However, unlike your weight, you can never have too little debt. Your debt-to-income ratio is calculated by your monthly debt payments and dividing that amount by your monthly income. This ratio is a primary factor in your credit score. It’s so important that most lenders won’t trust you if it is too high. One look at a high ratio and you’ll be rejected.

Ability to Handle an Emergency Expense

Tragedy can strike at any time and at anyone. You could suddenly be in an accident, fall ill, lose a job, or get stuck in a natural disaster. A strong emergency savings fund is fundamental to your strong financial health. That fund needs to be easily accessible. A good option is an online savings account. That way it can easily be accessed whenever and wherever you need it. Otherwise, you may need to use fast cash loans. Fast cash loans come with fees and interest rates. Once you’ve reached your emergency fund goal, add to it. Then, continue doing so until you feel confident that, should you lose your job, you could sustain yourself for several months.

Net Worth

Your net worth provides a quick snapshot of your financial health by looking at the total value of all your assets minus your liabilities. Assets include cash, retirement accounts, investments, real estate, collectibles, and other items you own. Liabilities include all of your debts. Car debt, credit card debt, student debt, mortgages, and more. To determine your net worth add up the value of all of your assets and then subtract the amount of money owed on each liability. When assessing your net worth, be careful not to confuse some of your liabilities as assets. For example, your car isn’t an asset if you owe money on it.

By completing your financial wellness check-up, you’ll end up with a list of changes that you need to make to your finances to get them healthy. These tips are just some of the quick steps you can take to get a pulse-check on your financial health. After you complete them, you need to start acting on your new plan. Otherwise, nothing will change.

To get more help with your financial wellness, set up an appointment with Mike today!

The post How Should I Measure My Financial Health? appeared first on Michael Kelley, CFP.

Maximize Your Income

As you prepare for retirement, you need to find ways to increase your savings. A key way of doing this is by boosting your earnings. There are several ways you can maximize your income. First, you can negotiate your salary and ask for more money. Similarly, you can improve your performance at your job and work your way towards a promotion or a raise. Another common option is to find more income streams. For example, you could start a side hustle such as a small business or working as a consultant. Of course, you can always try applying for a new job with better opportunities. If you want to retire early, don’t be afraid to change up your current lifestyle to find other ways to earn more money.

Invest in Real Estate

Real estate investing is a great way to achieve financial independence. This independence can help you retire earlier. With real estate investing, you can eventually become reliant on the income generated from rent payments rather than from a job or career. This can give you a steady cash flow that can help you pay off debts and build up a nice nest egg for retirement. You can even continue investing after you retire and maintain that cash flow. However, be considerate of the effort it will take. Being a property manager involves many responsibilities that can consume your time. If you want to continue investing after retirement, you’ll need to be prepared to take on these responsibilities.

Save Your Raises and Bonuses

As you move up in your career, you’re likely to see some increases in your salary. Most people will continue to elevate their lifestyle as they continue to make more money. While this may be tempting, it’s smarter to save the money you get from raises and bonuses. If you can live comfortably at a certain level, don’t feel pressured to increase your spending just because you can. If you put that extra money in savings instead, you can grow your retirement savings faster and you can accelerate your retirement.

Lots of people look forward to retirement and wish it would come sooner. Fortunately, there are ways you can accelerate your retirement. It simply takes a little extra planning and some work but you can get to retirement sooner than you thought.

If you need help planning your retirement, meet with Mike so he can help you figure things out!

The post How Can I Accelerate My Path to an Early Retirement appeared first on Michael Kelley, CFP.

Get Down to One Car

Cars can be major expenses to any household. You have to consider car payments, insurance, gas money, maintenance, and more. This adds up over time and it becomes even more expensive when you have multiple cars. By getting down to just one car, you can save yourself a lot of time and money. Of course, there are direct costs like less gas, but you can also save on other expenses. With just one car, you need to budget your time, and this means scheduling your errands. This can lead to you running fewer errands which can save a lot of money. Having only one car for your family also increases the time you spend together since you’ll need to commute together, and it allows you to get to know your community better.

Reduce Your Housing Costs

Along with vehicles, your home can take up a large portion of your budget. Again, there’s a lot to consider with all the payments, upkeep, and other expenses. Fortunately, there are a couple of things you can do to reduce these costs. One thing you can do is start paying off your principal on your mortgage. This can help cut back on the interest you pay later. Another option is to refinance your house. Doing so allows you to renegotiate your mortgage loan. Just make sure you find a good mortgage broker to help you out. You should look at reviews of mortgage brokers before deciding to go with one for a refinance. Finally, you can always consider moving to a cheaper home.

Cut Back on Entertainment

Entertainment has begun taking up a large portion of people’s budgets. Perhaps you should consider ways you can cut back. For example, you can cancel some subscriptions that you don’t need or don’t use as often. If you want to keep certain streaming services, consider splitting the cost with someone. Additionally, you can save money on entertainment by attending free events, getting a library card, or simply looking out for more discounts.

Downsizing may seem like a big challenge, but you’ll be thanking yourself later. You can cut down on major costs for yourself and not be weighed down by the financial burden. Evaluate your current lifestyle and see if there are other ways you can downsize.

Let us help you to figure out what you need to do to secure your financial future and set you up for success. Start by scheduling a meeting with Mike!

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