We’re very excited to be listed on his website as a Benefits Specialist – if you live in Nashville or Middle Tennessee and have more questions give my office a call at 615-376-5325 or contact us at info {at} HankParrott {dot} com.

Be sure to mention you heard about him on the Financial Lifestyle Show when you contact him.

As always, thank you for listening!

Hank

I know I stress on the show that we could be running out of money to pay out Social Security benefits in the future and you’ll be pleased to know that Derrell reassures us that “Fact is, if we don’t do anything at all, we have enough funds to last till 2036. We have time to have this program corrected.”

A great tool I’ve been giving my clients and referencing is the Baby Boomer’s Guide to Social Security from Horsesmouth {dot} com/ and from time to time I’ll be sharing some tips and advice from there with you so definitely subscribe to this blog for updates.

In keeping with the optimism that Derrell has practiced with what he told us on the show, I’d like to list the benefits of Social Security:

• It’s a predetermined amount of income based on your earning history as applied to a formula (you can figure it out with this estimator tool). The amount is varied person to person but using the estimator linked above it would help you budget.
• Social Security is a steady income. It’s a set amount you receive month-to-month which helps when it comes to figuring out your expenses.
• Even when you pass away, the checks don’t stop and the benefits are then paid to your surviving spouse or dependents.

Find out more about Social Security at SSA.gov, which has great tools for calculating how much you could earn, reference publications and forms. You can even register for Social Security at the website.

My book is out and available for purchase. I’ve been working on this guide book for a while, not just because writing a book isn’t always a simple process, but because I want to make sure it’s a comprehensive package for you.

7 Steps to Financial Freedom in Retirement should be a great basis for your retirement planning and it will help you prepare yourself for what’s to come with investments, savings and getting your life in order so you and, subsequently, your family are comfortable into your golden years.

Here are the chapters/steps in order:

1. Getting the Nest Egg Ready to Hatch
2. Putting Your Assets To Work For You
3. IRA Mastery
4. Enhancing Your Retirement With Built-In Guarantees: Annuities, Bonds and CDs
5. How The Smart Money Invests
6. Paying for Helping Hands: The Ins and Outs of Long-Term Care
7. The Basics of Estate Planning

Included in the book are a Financial Lifestyle Fact Finder, a Lifestyle Expense Worksheet and a Confidential Lifestyle Questionnaire – all tools I give potential and current clients to help map out where they are financially both currently and down the road.

You’re probably wondering why I’m just handing all this to you for such a small price and believe me my door is always open for you to come in to meet with me. But maybe you’re just looking for that one puzzling piece to complete your plan you have in place and you may not need me – the answer will probably be in my book. And if you’re still apprehensive about making an appointment with a financial planner, my book will give you a deeper understanding of what we seek when you come in as a new client and serve as that extra push for you to make that call. Either way, I wrote this book to help you.

Get yourself a copy, let me know what you think. And if you’re still not sure, give me a call. Remember, our first appointment is complimentary!

We’ll discuss taxes, social security and retirement planning and delve into the topics that I talk about on my radio show.

If you have any more questions or would like to sign up give us a call at 615-376-5325. This is a free workshop but we take your reservation so we do not overcrowd the room and this allows me to answer your questions better.

Hope to see you there!

We’ll be discussing on the Financial Lifestyle Show this Sunday, what our process for new clients is.   From the moment you call us to the moment you walk through our door that very first day, we’re going to discuss, step-by-step, what we do for you.

A lot of people seem surprised that I don’t charge prospective clients for the first appointment, some may believe it’s just not good business but au contraire.  I think it’s good business to work and foster relationships with people with whom you feel are worth doing so.  I want my clients to trust what I do for them, and to feel their time with me is worth it and vice versa.  If I cannot be of help to you, then I will not make you sign a contract.

If I sincerely believe that what my company does matches your goals, we will get along swimmingly.

That said! Here are the steps to take to schedule your appointment.

First, see if the services we offer are what you need – do you need tax planning help?  Maybe you need to update your Will or Trust.  Or you don’t have a Trust and you would like to start one up and you have investments and you want to make sure you or your heirs aren’t taxed outrageously upon your demise.  Visit my website to find out what it is we do.

Next, call us.  We take clients in all parts of Tennessee, Alabama… we have clients who live as far away as California – in this day and age, there is nothing we can do from a distance except shake hands and I try my best to ensure that happens through our relationship.  Our toll-free number is 800-892-4102 or locally in Tennesse at (615)-376-5325.  Let us know what it is you need, and we can even chat on the phone if you’re still not comfortable with coming in.

Once you make an appointment with us, we send you a Confidential Questionnaire.  This is a pretty in-depth questionnaire that asks you questions about your retirement and financial planning needs, whether you knew of them or not.  It also gives you a great idea to what is in store for your visit with us.

For more of what we do definitely listen to the Financial Lifestyle Show and I hope it puts you more at ease when you decide to schedule your appointment with me.

I look forward to meeting you soon!

In the meantime please look around our site for more information. Remember, your first appointment is free so give me a call today at (615)-376-5325.

Hank

…and Virtues That Cultivate a Gainful Financial Game Plan

Retirement-based financial planning takes far more than faith…it takes action. And, investing one’s valuable retirement dollars “on a wing and a prayer “ can wreak havoc on even of most well-intentioned plan. Knowing what pitfalls to avoid can make all the difference in securing a heavenly lifestyle for your golden years.

With this in mind, the following are 7 Deadly Sins to avoid at all costs when planning for your financial future, along with enlightening common sense tips to help would-be wealth seekers get on their way to the financial promise land:

1. Pride. Ditch the “I can do it on my own” mentality. Rather, seek out a retirement-specific financial planning expert who can help ensure your hard-earned savings have the greatest potential for growth. Although professional fees will be incurred, the old adage of “pennywise and pound foolish” could not hold more true.

2. Envy. Comparing how much you have built up for retirement to others can either cause you to get discouraged and give up on your efforts, or get overly complacent and slack on your planning. It’s far more important to develop – and stick to – a sound game plan structured to attain your distinct retirement lifestyle goals.

3. Anger. Harboring anger at the government for the impending insolvency of Social Security, or the mounting threat to corporate pensions and retirement benefits will not secure your retirement and is, therefore, wasted energy. Instead, take charge, assess where you are in terms of your current assets and liabilities and how they are tracking toward retirement. Resolve yourself to do everything required to generate retirement asset ROI to better ensure your senior lifestyle goal.

4. Greed. While gambling is fun in Vegas – even with a few losses along the way – the same does not hold true with your retirement savings. Taking unnecessary risks, chasing a ‘hot’ stock tip or mutual fund, or buying ‘junk’ bonds or any number of other speculative ventures is a certain way to lose what you have worked so hard for – and need to sustain you through your golden years. With retirement planning, it’s imperative to reduce risks to the fullest extent possible, ideally with principle guarantees, using proven investment strategies in order to attain your financial goals.

5. Sloth. Going the lazy route and resigning yourself to being dependent on others during your senior years need not be your fate. The truth is, no matter what your age or how much, or how little, you have in the way of assets, it is NEVER too late to start saving and planning for retirement – but it does take a bit of motivation. While late planning may take a higher level of drive and creative strategy, you will certainly be in better financial shape, feel better about yourself, and enjoy retirement a lot more than if you did nothing at all.

6. Gluttony. Spending every penny you make and then digging an even deeper grave through acquiring excessive debt is a recipe for disaster. Recent problems with leading U.S. corporate pension programs have underscored the extent to which one cannot depend on so-called safety nets. It’s imperative to set up a plan that first serves to eradicate debt and get sound retirement planning fundamentals in place. Once the plan is in place, be sure to infuse it with additional funds on a regular basis – at least once a month is advisable.

7. Lust. We live in a culture where instant gratification is not only revered but, all too often, is expected. Over indulgence can rob you of valuable resources needed to secure your future, so don’t have a short-term outlook on life. What will work is strategizing a financial game plan with a qualified professional, implementing that plan, and staying the course no matter what temptations may present along the way.

Ensuring a comfortable retirement in today’s volatile investment climate is daunting, but it is also achievable with the knowledge of what to do and, as important, not to do. Even when using a financial advisor, it’s imperative for seniors and others saving for retirement to avoid complacency and be actively involved in their financial planning to ensure their unique and personal needs are being catered to.

At the end of the day, a cookie cutter financial plan is the deadliest of all sins, as no two individuals will have identical needs, goals, and resources. If nothing else, heeding my retirement planning ‘7 deadly sins’ warnings will help individuals preserve hard-earned assets and maximize the retirement income stream they want and need.

It was great to have Steve Siebold on the show with us discussing his book, How Rich People Think.  Each chapter looks at the contrast between what he has categorized as the Middle Class and World Class, the latter being the wealthy people he has met and interviewed for the book.  The contrasts are very simple as were his explanations. Bear in mind we were under time constraint and if you feel you may not agree right off the bat, and that his thoughts are a little simplistic, the book delves deeper and explains clearly he thinks that way.  That said, here are some highlights of the radio show from last week:

Charities couldn’t exist without the wealthy: “If you look at some of the wealthiest people in the world, they’re not leaving their money to Uncle Sam, they’re leaving their money to charities because society would gain the most value from that. Look at where people like Bill Gates or even Warren Buffett (even if I don’t agree with his political views) and look at what they’re doing with their wealth.”

Middle Class focuses on Saving, World Class focuses on Earning: “Steve explained these chapters to me as I went through them. “We’ve been taught to save and now I’m talking about earning but what I’m saying in this particular chapter in this book is that most people are taught to focus on those things whereas the wealthy focus on earning to create big numbers so they have much larger numbers to save and invest. If you think about it the average person in the US makes about $42,000 a year. Just to save and invest making $42k a year you’d have to be saving and investing for a long time to really accumulate anything so if you want to learn how to earn that could be the number one thing, THEN really working on saving and investing.”

Middle Class think of money in Linear terms, World Class think of money in non-linear terms: “We’re all taught in school to trade time for money, hours for dolalrs as they say and the wealthy don’t do that. As we talked about, it’s really about leverage, that non-linear leverage – they’re leveraging everything their time, their contacts, their credibility, their money. Everything they can leverage, they are the masters of leverage and it’s a non-linear strategy that most of us aren’t taught. Donald Trump makes a lot of money, Oprah makes a lot of money but you don’t see them working 20 hours a day breaking bricks. It’s a different way to earn money, it’s just a way where the big money is made.. if you start thinking about how you can leverage your skills, the world could be your oyster.”

Middle Class believes money as the root of all evil, World Class believes poverty is the root of all evil: “I think the people that are most obsessed with money are the people with no money. I know that happened for me. You become obsessed with something when you don’t have it if you have you don’t really have to worry about it you just keep adding to the pile. But when you don’t have it I think that’s when things turn sour.”

Middle Class believes being rich is a privilege, World Class believe being rich is a right: “It’s not that it’s a God-given right, but that they think it’s a right, that if they solve a problem that helps people they think they have the right to be rewarded financially in America, and become rich if they can solve a big enough problem they really believe it’s a right under our system. WHereas the middle class think that it’s a privilege or it’s luck where it’s a completely different way to look at it.”

Middle Class believes rich people are crooks, World Class believe rich people are ambitious: “How many times have we been told this, you drive by a gigantic mansion on the water and someone says, “well! Of course, they probably stole it or they’re probably a drug dealer.” But the rich and very successful see themselves as ambitious people. Of course there’s crooks in every class and socio-economic bracket and that includes the rich but for the most part these are good, solid people who are very ambitious and know what they want.”

Middle Class believes building wealth is a solitary effort, World Class believe building wealth is a team effort: “It takes a team to build a dream. It may be a cliche but it’s true – if you’re going to do something really big it’s going to take more than you and a lot of people are going to be involved and they can all benefit from being on the team and all profit from being on the team.” (I agree – there’s a limit to how much you yourself can do. This is how you build wealth, it’s through accumulating a good team.)

MIddle Class worries about money, World Class dreams about money: “It’s all about where you direct your mental energy. This is what we talk about in mental toughness training all the time it’s – ‘Where is your mental energy being directed?’ Is  it towards worry like most people or creating wealth or anything else or any positive result you want in your life whether it’s dreaming a great business dream or personal dream or whatever it is. But where do you direct your mental energy because that’s what you’re going to get back – wherever you direct it. ”

Something Steve said during the segment that stuck with me is that “Anyone can do this, this doesn’t take a Harvard degree to do, it’s a mentality.” We’ve all heard and read about the power of positive thinking.  Just by reading How Rich People Think, talking to Steve, reading his blog, it’s all extremely motivating and like he said, anyone can do it. YOU can do it.

We covered a few more chapters in the 2nd episode of the show and  I encourage you to listen to both episodes here and here, and also to get the book for yourself as well.  Those of you who have read the book, I’d like to know what you think – leave me a comment, or email me at info@hankparrott.com.

If you’d like a preview, Steve gives you FIVE FREE CHAPTERS if you visit his How Rich People Think Book site and sign up.

This Sunday, I’ll be going over some Year-End Tax Planning on the Financial Lifestyle Show so be sure to listen.  In the meantime I thought I’d share a good article today I found on All Business listing the 10 Year-End Tax Tips. Have a look:

As the end of the calendar year approaches, you should take some time to focus on your taxes. There are several things that you may be able to do to lower your bill.

1. Review your income, expenses and potential deductions: Before you can make any adjustments, you will need to look closely at how much you are earning, spending, and saving and what you can deduct.

2. Review your portfolio: If capital gains are high, consider taking a loss to offset some of the capital gains income.
3. Defer income: Unless you have reason to believe that next year will bring you a higher income and move you into a higher personal income tax bracket, you may want to defer income until after the first of the year. If you are self-employed, for example, send the last invoices out late in December so you will more likely receive payment in January.

4. Use up your flex spending plan: If you have a flexible spending plan, which means you have put aside tax-free earnings to cover medical and dental expenses through a plan offered by your employer, you need to use it up. Make doctor appointments now and buy necessary medical supplies that are covered in the plan.

5. Pay your January 1st mortgage payment on or before December 31st: This allows you to take an additional deduction for interest paid. Remember to add the interest amount to the amount reported by your lender when they send you a 1098 form.

6. Be careful about buying an actively managed mutual fund: The later it gets in the year, the more likely you will pick up the capital gains distributions on a mutual fund you hardly own. Check the distribution schedule and if it’s late in the year, wait before buying the fund.

7. Teachers, take a deduction from your students: You can still take up to a $250 deduction on materials purchased to make the learning experience better for your students. This deduction is also applicable for principals and others who are employed in a school. If you’re not sure if this deduction applies to you, contact the IRS.

8. If you’re self-employed, stock up: This is the time to buy all of the business equipment and supplies you haven’t yet purchased. Make sure to mark and save your receipts.

9. Prepay your state and/or local taxes: If you don’t think your personal income tax bracket will be higher next year, and you’re not affected by the alternative minimum tax, you can make state and/or local tax payments before the end of this year so you can take a deduction this year.

10. Make charitable donations: If you have extra cash, donate money to charity. Save the receipts and use the charitable donations as deductions on your tax return. These are some of the ways in which you can make appropriate changes to lessen your tax bill.

We had Jordan Goodman, America’s Money Answers Man on as our guest on the show where we discussed various ways to Master Your Debt and covered a few key points from his book of the same title.  I try my best to fit as much pertinent information into one show but this time, I cannot stress enough how great a read Master Your Debt is so please don’t hesitate – visit Jordan Goodman’s website Money Answers and find the answers to your personal finance questions.

In case you missed it, here are the links Jordan was so kind to share:

Mortage:

• TruthInEquity.com
• ARC Loans – ARCLoan.com or 800-ARC-LOAN
• UCanRefi.com or 800- 777-9682
• Mortgage Modification – ModifyMyMortgage.com or 800-Modify-Me

Credit Cards/Loans: Jordan was quick to point out that there are a lot of scams out there and to do your research. He vouches strongly for the following:

• Cambridge Credit – Cambridgecredit.org or 800-897-2200
• Student loan debt relief – StudentLoanHelpNow.com or 877-702-3328
• Healthcare bills – MedicalRepricing.com
• Credit scores – GuardMyCredit.com or CreditReportABC.com or CreditCardPerks.com