Early start at saving for retirement is the best!

When should you start saving for retirement?

Beginning to save for retirement at a young age makes it much easier to save enough to retire comfortably. If you save $5,000 per year beginning at age 25 and earn a 6 percent annual return on your investments, you would reach age 65 with a nest egg of $798,741. If you begin saving $5,000 per year at age 40 and earn the same return, you'll hit age 65 with just $283,161.

In fact, even if you save $10,000 per year beginning at age 40, you'll still end up with significantly less money ($566,315) than if you started saving $5,000 per year in your mid-20s. If you're younger, you should start right away because the value of compound interest is huge.

Call me for a FREE consultation, we will go over your financial situation and create a plan,

Jesse Alvarado
(562)822-5565

Retirement Made Easy

Another financial myth busted or never wait to save for retirement...

Financially (and elsewhere) it is better to deal with reality!

"I don’t need to start saving until I’m in my 40s or until I can afford to save big money."

Why is this myth busted?

If you put a small amount of money into a retirement account earlier, it can be just as effective as putting a lot of money in later.

A $500 contribution made at age 25, compounded annually at an 8 percent rate of return, could be worth nearly five times as much after 20 years. If you wait until age 45, you’ll have to contribute over $2,300 to equal what that original $500 may have turned into by then.

Besides, starting small is the easiest way to get the ball rolling. Saving just $25 a week for 30 years can result in over $160,000 at that same growth rate. Increase the amount you save as your financial situation allows, but if you wait until you feel you can contribute a lot of money to a retirement account, you’ll probably end up waiting too long.

Call me for a FREE analysis of your financial situation,

Jesse Alvarado
(562)822-5565

Think about it, as you grow older you want to enjoy life more, you want to be financially strong.

Knowledge Is Power Plus Money In Your Pocket

"Lots of people retire early; it’ll be easy for me to stop working when I’m 50"

Why is this myth busted?

Many of those who say they’re retiring early haven’t actually crunched the numbers to know that they won’t be able to sustain themselves through 40 or 50 years of retirement. Others plan to live far more frugally in retirement in order to make their money last. If you want to retire early, you need save early — and save hard.

The good news: this is a very doable goal as long as you have a plan and you also stick to it.

Call me for FREE evaluation of your financial situation and to create your plan according to your needs,

Jesse Alvarado
(562)822-5565

How much do you need to save for a pleasant retirement?

The Busted Financial Myth Most People Do Not Know About 

"A couple hundred thousand dollars will be plenty to last me through retirement."

Why is this myth busted?

For some retirees today, it’s possible that amount could work; but most people currently in their 20s, 30s, 40s, or even 50s will need to save far more than that to be able to live comfortably through retirement. Again, don’t just guess. Either figure it out yourself or talk to someone who can figure it out for you, because you do not want to wait until it’s too late to find out you haven’t saved enough.

Give me a call for a FREE financial consultation.

Jesse Alvarado
(562)822-5565

I can Help You Eliminate Credit Card Debt!

Even financially speaking late is better than never!

31% ages 45 to 54 haven't started saving for retirement yet

This is pretty frightening. If you're 45, you might be hoping to retire in 20 years. If you're 54, you might expect to work just 11 more years or so. And if you don't have a sizable nest egg under construction, you're probably in trouble.

The good news is that all isn't lost. A little retirement planning and some actions taken now can have a profound effect on your financial situation. You might work some additional years, for example, or take on a second job for a few years. You could reallocate your investment money, if it's not deployed effectively. You might even decide to downsize your home and perhaps even move
to a less expensive region in retirement.

Now is the time to start your retirement plan.

Call me to start creating one right now. Do not postpone it anymore.

Jesse alvarado
(562)822-5565

Motivation to save more for your Retirement

Project your retirement income

Consider calculating the annual income your current nest egg is likely to produce in retirement. A recent study of 16,881 University of Minnesota employees sent some workers a four-page color brochure with a customized projection of the additional annual retirement income that would be generated if they saved more.

Among employees who adjusted their retirement-savings contributions, those who received retirement-income projections saved $1,152 more per year than people who didn't receive the mailing. "By providing the individuals with projections about how much income they will have on an annual basis in their retirement, they actually save more. We're helping them to better understand their return on their savings," says Colleen Flaherty Manchester, an assistant professor for the Carlson School of Management at the University of Minnesota. "People often get intimated and overwhelmed by a huge number. When they see how much it actually translates into, they are maybe more motivated to make decisions."

Call me to get more information and a FREE financial evaluation of your very own Retirement Plan,

Jesse Alvarado
(562)822-5565 

Retirement Non-sense STAY AWAY FROM IT!

Middle-class Retirement Non-sense 

Middle-class Americans with an average age of 50 years old  say they will need a median of $300,000 to retire. However the same individuals say that, to date, they have saved a median of $25,000.

What is going on here?
Assuming a retirement age of 66 years, they have 16 years to save $275,000. If you assume
that the stock market goes up 5 percent per year--perhaps not the safest assumption one could make--then to hit that savings number, they need to save $11,070.69 per year, or 22.1 percent of the median income. However, 68 percent of middle-class Americans who have a 401(k) plan contribute 10 percent or less of their income to retirement.

The GOOD NEWS is that you do not have to end up stuck in such a situation.

Please call me for a FREE evaluation of YOUR specific financial situation,

Jesse Alvarado
(562)822-5565

Uncertain about where to Invest? I can Help!

Investing in uncertain times By Jesse Alvarado
Your WFG Financial Advisor
562-822-5565

Do you have peace of mind?

A Great Motivator For Saving More For Your Retirement

Simply Think About Your Future Self 

People who feel more connected to their future self may be more likely to save for retirement, according to recent research. Some 193 Stanford University staff members received two different messages about their retirement accounts: one encouraging them to think of their own "long-term well being" and the other telling them to think about a "future self" who is completely dependent on how much they save. A subset of participants who reported feeling closeness to their future, retirement-age selves responded to the "future self" message by saving 0.85 percentage points more of their salary annually. For a 30-year-old man earning $45,485 per year who increases his saving rate from 5 percent to 5.85 percent, this increase is equivalent to an additional $68,797 in savings upon retirement at age 65.

Write a letter to your future self. That will at least help you start thinking about your future self as a realistic person who is going to be the recipient of the decisions that you make today with regard to finances.

Call me for a FREE analysis and evaluation of your Retirement alternatives,

Jesse Alvarado
(562)822-5565

Let me help you come up with a retirement plan!

A simple way to motivate yourself to save more for Retirement

Want a better Retirement? Spend time with your grandparents 

Strike up a conversation with retired relatives or neighbors. Spend more time with older role models, people who may act as proxies for your future self like grandparents or older colleagues. 

They might provide some insights about what retirement is actually like, which could encourage you to plan for your own future.

Call me for a FREE evaluation of your alternatives planning for Retirement,

Jesse Alvarado
(562)822-5565

What causes us to save for the future?

HOW TO MOTIVATE YOURSELF TO SAVE FOR RETIREMENT

Picture yourself in old age. When researchers showed people aged photographs of themselves, it made them more likely to want to save for retirement. Exposure to those images actually made people feel a bit closer to that self in the future.

In a 2011 study, after they were shown either an aged or current picture of themselves, the 50 participants were asked to allocate a hypothetical $1,000 among four choices: a retirement fund, checking account, fun and extravagant occasion, or to buy something nice for someone special. Participants who were exposed to the aged photo of themselves allocated more than twice as much money to the retirement account ($172) as those who viewed a rendering of their current appearance ($80).

Call me for a FREE financial evaluation of your very own Retirement Plan,

Jesse Alvarado
(562)822-5565

How to motivate yourself to save more for Retirement.

RETIREMENT

Make It Easy By Breaking it Down Into Steps 

Instead of focusing on the final account balance you will need for a comfortable retirement, figure out how much you need to save each week or month. "It gives you something in the immediate future to focus on rather than something in the distant future that you may or may not be able to relate to," says Nicole Votolato Montgomery, an assistant professor of marketing at the College of William and Mary's Mason School of Business.

Votolato's recent online survey showed 750 individuals an advertisement encouraging them to save for retirement, then asked how much they intended to save as a percentage of their salary. Young workers between ages 18 and 34 said they were going to save the largest portion of their salary (20 percent) when the advertisement told them the biweekly dollar amount they need to save for a secure retirement. In contrast, young employees presented with a long-term retirement contribution goal said they would save 14 percent of their pay for retirement.

Call me for a FREE financial analysis of your own Retirement plan,

Jesse Alvarado
(562)822-5565

Words of financial wisdom...

Common sense = One million dollars

In addition to sidestepping fees, taxes, and penalties whenever possible along your efforts to grow your retirement plan, you also need to remember that as a matter of fact many individuals will be able to accumulate $1 million over the course of their career by saving consistently beginning at a young age, investing prudently, and avoiding withdrawing money early.

Call me for a FREE complete evaluation of your very own retirement plan,

Jesse Alvarado
(562)822-5565

A financial secret to a million!

Secret To Becoming A Millionaire: Start Saving By Age 25

It's difficult to start saving for retirement when your entry-level salary barely covers your student-loan payments. But beginning to build a nest egg during your first job is the most painless way to become a millionaire by retirement. The more time you have, the less you have to save each year since you have longer to accumulate. If you start saving for retirement at age 25, you only have to save about $4,830 annually to reach $1 million by age 65, assuming an annual return of 7 percent after fees. If you wait until age 40 to start saving, you'll need to tuck away much more: $15,240 per year, assuming the same retirement age and annual return.

Alternatively, you could start out saving slightly less and boost your savings rate as you receive raises and bonuses. The act of saving is like developing a muscle, and if you start early with small amounts, you will build the saving muscle.

Call me for a FREE evaluation of your very own financial situation,

Jesse Alvarado
(562)822-5565

This is another way to increment your retirement to a million dollars.

Increment your Retirement Plan contributions, first your kids become independent

Once your children are finished with college and support themselves, you will have a newfound ability to tuck money away for retirement. Usually people don't have a lot of money when the children are in school. You usually find that the period of time in your 50s and your mid-60s is when you are really putting away a lot of money.

If each member of a couple is putting $22,500 in a retirement plan and investing it in a reasonable manner, they could probably have a pretty good shot at getting close to a million.

Call me for a FREE financial analysis of your financial situation. 

Jesse Alvarado
(562)822-5565

This is what Social Security will not tell you...

Your cost-of-living adjustments come up short

Every year, Social Security recipients get a cost-of-living adjustment, a little bump based on the current rate of inflation and designed to cover the rising cost of everything from toothpaste to airline tickets. But some critics say the current measurement of inflation does not reflect the higher costs that seniors truly face. For example, many people in retirement may spend a large share of their budgets on health care, and the adjustments might not cover the steep rise in housing costs that can occur when seniors need to move into assisted housing. Plainly said in many parts of the country, a monthly Social Security benefit isn't enough to cover basic living expenses.

The pricing pressure means some retirees could find themselves struggling to cover essentials like gas, medicine and housing, meaning they will have to cut spending in other areas. For pre-retirees, it means ramping up your savings today so that you can struggle less in your golden years. The Social Security Administration says it has been using the Consumer Price Index to measure inflation for the cost-of-living adjustments since legislation instituting automatic cost-of-living increases was enacted in 1972, and changing the benchmark would take an act of Congress.

So, what can we do about it?

A simple understanding of how you can not depend on Social Security alone for your retirement is a start.

Call me for a FREE financial analysis of your financial situation,

Jesse Alvarado
(562)822-5565

What is your financial knowledge?

National averages in five key areas of financial capability

This is where MOST people are in financial knowledge, and these are national averages.

• Spending vs. Savings.
Fewer than half (41 percent) of Americans spend less than their income.

• Unpaid Medical Bills.
Over a quarter (26 percent) of Americans have unpaid medical bills.

• Rainy Day Funds.
More than half of Americans (56 percent) don’t have rainy day savings to cover three months of surprise financial emergencies.

• Credit Card Problems.
Over a third of Americans (34 percent) paid only the minimum credit card payment during the past year.

• Financial Knowledge.
On a test of five basic financial literacy questions, the national average was 2.88 correct answers.

Make sure YOU are not among MOST people in financial knowledge.

It is easy to learn and create for yourself a financial plan with the retirement that will allow you to live your best golden years.

Call me for a FREE financial analysis,

Jesse Alvarado
(562)822-5565

Financial Fantasy? Please don't live on it!

Do Not Live In A Financial Fantasy

Some 30 percent of Americans say they will need to work into their 80s to be comfortable in retirement.

Where is the fantasy here?

The reality is that many people won't be physically able to work into their 80s. According to the U.S. Administration on Aging's Aging Integrated Database (AGID), 22.5 percent of Americans aged 60-84 reported employment disability--they were physically unable to work and receive disability payments because of that disability.

Please say no to fantasies, live in the real world!

Call me for a FREE financial analysis.

Jesse Alvarado
(562)822-5565

Retire with $1,000,000

Start Saving By Age 25

It is difficult to start saving for retirement when your entry-level salary barely covers your student-loan payments. But beginning to build a nest egg during your first job is the most painless way to become a millionaire by retirement.

If you start saving for retirement at age 25, you only have to save about $4,830 annually to reach $1 million by age 65, assuming an annual return of 7 percent after fees. If you wait until age 40 to start saving, you'll need to tuck away much more: $15,240 per year, assuming the same retirement age and annual return. Alternatively, you could start out saving slightly less and boost your savings rate as you receive raises and bonuses. 

A 20-year-old may only be able to save $100 per month, but the exercise of saving $100 per month when you are 20 will make it easier for you to go to $200 a month when you are 25 or 30, the act of saving is like developing a muscle, and if you start early with small amounts, you will build the saving muscle.

Call me for a FREE evaluation of your financial planning for retirement.

Jesse Alvarado
(562)822-5565

Why Young People Need to Save for Retirement

No, You Are Not Too Young To Start Saving

It is a common shrug among people in their twenties, the retirement meh. "I'm too young to worry about retirement." Or, "I'm too broke to worry about retirement, and I'm young so it doesn't matter." In our late-blooming culture even some thirty-somethings exhibit the same indifference. Sorry kids, but you're wrong. Name an age. That's the right age to start putting money away for a rainier day.

The fact is, you should start stashing even a small amount of money as early as possible into a tax free account. If you become knowledgeable of this type of account, you will be the envy of anyone who understands compounding.

Call me for a FREE evaluation of a retirement plan that specifically applies to you.

Jesse Alvarado
(562)822-5565

When it comes to retirement alternatives, expand the Pie...

What else can I do to retire rich?

Easy. Don't just cut expenses - find a way to make more money!

By taking on side work or turning a hobby into a business enterprise, you can create additional streams of income to help fund your retirement.

In many cases, this is an excellent alternative to cutting costs because it allows you to maintain your current standard of living while providing for your future.

Give me a call for a FREE evaluation of your retirement alternatives,

Jesse Alvarado
(562)822-5565

Retirement And Your Future

Life Insurance. When Should You Get It?

I can Help You Eliminate Credit Card Debt!

A simple key for richness!

Time is money; start today

The most important key to retiring rich is to start saving as early as possible. Many workers, strapped for cash or eying a major purchase, tell themselves they can make up for lost time by making higher contributions in future years. Unfortunately, money does not work that way. Thanks to the power of compound interest, cash invested today has a disproportional impact on your wealth level at retirement.

To put the matter into perspective, consider two possible scenarios; both assume a retirement age of 65 and an annual compounded rate of return of 10%. John is 40 years old and invests $20,000 a year for retirement. Charlotte is 21 years old and invests $5,000 a year for retirement. By the time each of these individuals retire, they will have invested $400,000 and $220,000 respectively.

Yet, because of the power of compound interest, John would retire with half the money as Charlotte despite investing twice as much! (John would retire with $1.97 million, Charlotte with $3.26 million).

The moral of the story? Stop robbing your future to pay for today

Call me for a FREE evaluation of your own financial situation,

Jesse Alvarado
(562)822-5565

Financial Literacy - What exactly do you need to do about it?

How Financial Literate are you?

More than three-quarters of U.S. adults think they’re good at managing their finances, but only 14 percent aced a 5-question quiz on basic financial concepts like interest rates, mortgages and inflation (25,000 Americans participated in this survey).

The survey found disparities between states when it comes to how its residents handle day-to-day finances and save for the future. California,Massachusetts and New Jersey topped the capability list. Those states ranked in the top five in at least three of the five measures in the survey. Mississippi, Arkansas and Kentucky placed near the bottom in two or more of the five measures.

Age also played a factor. Millennials in particular showed signs of financial stress. Those 34 and under were more likely to take out a loan or hardship withdrawal from a retirement account, or make late mortgage payments.When it comes to medical bills, this age group was almost twice as likely to have unpaid medical bills than Americans 55 or older.

No doubt our financially literate levels need to improve; however, what you need to do is approach your very own financial situation as an individual. In other words, the numbers in the survey above tell a lot, but your very own financial numbers though can tell you more valuable information and in particular where exactly your focus should be.

Call me for a FREE evaluation of your financial numbers, find out more about where you are and where you can and will be.

Jesse Alvarado
(562)822-5565

Retirement Made Easy

The worst debt, the one to avoid!

Avoid credit card debt

Digging yourself out of credit card debt is a lot harder than getting into it. Try to pay all of your credit bills in full and on time. If you cannot pay your whole monthly bill, every dollar you pay above the minimum payment can reduce your interest payments. Women in particular should make a point to be careful with credit. Compared to men, women were five percentage points more likely to carry a credit card balance, four points more likely to pay the minimum payment and six points more likely to be charged a late fee.

If you have credit card debt or no debt, or if you do not know exactly where you stand, please call me for a FREE evaluation not just on your debt, but on YOUR complete financial situation.

Jesse Alvarado
(562)822-5565

Start eliminating your debt today!

Why You Should Avoid Paying Off Debt With Savings

For example your debt is costing 19%, your retirement account is making 4%, you may think that by swapping the retirement for the debt you will be pocketing the difference.

The problem here is that withdrawing funds is easy, but it's very hard to pay back those retirement funds. With the right mindset, borrowing from your retirement account can be a viable option, but even the most disciplined planners have a tough time placing money aside to rebuild these accounts. When the debt gets paid off, the urgency to pay it back usually goes away. It will be very tempting to continue at the same pace, which means you could go back into debt again - but this time five years of savings will have been wiped out too.

If you are going to do it, you have to live like you still have a debt to pay - to your retirement fund. Keep that need-to-pay mentality you had with your credit cards, and create a plan to pay yourself back.

Call me today for a FREE evaluation of your specific financial situation.

Jesse Alvarado
(562)822-5565

Be financially prepared for the unpredictable, be prepared for an Emergency!

Why is so important to you to build an Emergency Fund

You may think that Emergencies won't happen to you, and if they do, you'll make it through with the cash in the bank or by relying on unused credit cards.

The big mistake here is that most households are living paycheck to paycheck and an unforeseen problem can easily become a disaster if you are not prepared. Many financial planners will tell you to keep three months' worth of expenses in an account where you can access it quickly. Employment loss or changes in the economy could drain your savings and place you in a cycle of debt paying for debt. A three-month buffer could be the difference between keeping or losing your house.

Please call me for a FREE evaluation of your particular financial situation and more details about building your own Emergency Fund,

Jesse Alvarado
(562)822-5565

Take control of your debt today!

Why You Should Avoid Paying Off Debt With Savings

For example your debt is costing 19%, your retirement account is making 4%, you may think that by swapping the retirement for the debt you will be pocketing the difference.

The problem here is that withdrawing funds is easy, but it's very hard to pay back those retirement funds. With the right mindset, borrowing from your retirement account can be a viable option, but even the most disciplined planners have a tough time placing money aside to rebuild these accounts. When the debt gets paid off, the urgency to pay it back usually goes away. It will be very tempting to continue at the same pace, which means you could go back into debt again - but this time five years of savings will have been wiped out too.

If you are going to do it, you have to live like you still have a debt to pay - to your retirement fund. Keep that need-to-pay mentality you had with your credit cards, and create a plan to pay yourself back.

Call me today for a FREE evaluation of your specific financial situation.

Jesse Alvarado

(562)822-5565

What is the reason for the Social Security imbalance in paying benefits?

What's Up (or Down) with this Social Security?

A single man who retired in 1980 at age 65 after earning an average wage of $43,500 would have paid about $96,000 in Social Security taxes, and probably received $203,000 in lifetime benefits.

By contrast, a single man making the same average wage today and retiring in 2030 will likely pay $398,000 in lifetime taxes but receive just $336,000 in lifetime benefits — about 16% less than he paid in. No doubt people who were first in the system got a great rate of return. It's the younger generation that is going to be in the most difficult position.

The imbalance is partly due to the fact that the earliest beneficiaries only paid taxes in the later stages of their careers.

How about yourself. Call me for a FREE evaluation of your very own retirement plan.

Jesse Alvarado

(562)822-5565 

Is your idea to retire bigger and bigger? Watch it because your benefits may be getting smaller and smaller!

This used to be a much better deal

Today's workers — boomers, Gens X and Y — like to carp about Social Security, but it's not all sour grapes or skepticism about paying into a system with an uncertain future. Employees today pay more in Social Security taxes than previous generations did. They're also likely to get smaller benefits when it's their turn to retire.

Over the years, as the Social Security Administration has come to grips with the cost of its benefit program — and the ranks of eligible beneficiaries has swollen — taxes to fund the program have gone up and up, a trend that experts say is likely to continue over the coming years. As a result, workers now pay 6.2% in payroll taxes — nearly double the 3.6% tax rate workers paid in 1965. Over the same time period, the maximum earnings eligible for taxation have also increased from $4,800 to $106,800.

Call me for a free evaluation about your specific retirement conditions and planning.

Jesse Alvarado

(562)822-5565

Social Security benefits are not the same for everyone!!!

Is it possible that the more you make, the less you get back?

It's common to think of Social Security as an individual account of sorts — what you pay in, you get back, more or less. That's far from accurate. By design, the Social Security Administration says, the system is tilted in favor of lower-income workers who have fewer resources to save for retirement. In practice, that means that the more money you make, the less you get back, at least as a percentage of your salary.

For example, a single, 66-year-old man who earned $50,000 per year on average and retired in 2011 would get an annual benefit payment of about $22,800, or about 45% of his annual salary. If he had earned $150,000 per year, he would get annual benefits of about $30,670 — just 20% of his annual salary.

The fact is that the percentage of benefits of your salary you get is not the same for everyone.

Call me for a FREE evaluation of your retirement planning and benefits.

Jesse Alvarado

(562)822-5565

Social Security Problems? Really?

Social Security to cover only about 75% of benefit payments through 2085.

A Social Security spokeswoman recently pointed out that interest income from the Treasury bonds held in the trust fund will allow Social Security to keep growing until 2022 — even if the agency has to siphon off some money to offset any shortages in tax revenue -- and won't be exhausted until 2036, when the first Gen Xers begin retiring. But that's already one year earlier than previous projections. After that, the agency says tax income under the current system will only cover about 75% of benefit payments through 2085.

Call me for a free evaluation about your very own financial security when you retire.

Jesse Alvarado
(562)822-5565