Beacon Financial Group

How Much Do I Need in Cash Reserves?

Industry experts say that 3 to 6 months of your fixed and variable expenses should be in your cash reserve. At Beacon Financial Group, we believe that it depends on your comfort level, and that is something that is going to be different for every client. Some people want $5,000 - $10,000 liquid, knowing that they have other sources to go to, and others want $50,000, no matter what.

As Beacon Financial Group advisors, our job is to show clients how to possibly increase the rate of return on the investment, without taking unnecessary risks, and to find ways to reduce the amount of taxes they are paying on their investments. Inflation is a part of life. There is not much we can do about it, but we can come up with strategies to help outpace inflation and get the money working harder.

Everyone needs to have a cash reserve, and they need to decide on the amount. Excess money sitting in that position is not a good idea.

For example: If someone has $50,000 sitting in a checking or savings account, and they have determined that they only need to keep a $15,000 cash reserve, then they have $35,000 earning $0 while being eaten by taxes and inflation.

Financial planning means putting all the pieces together-- starting with cash reserve and excess liquid money.

Where will you invest your excess cash reserve?


For more information, contact Beacon Financial Group to speak to an experienced, licensed advisor: (888) 769-4333 or lock23@BFGAdvice.net

How to Maximize Your Pension Benefits

How to maximize your pension benefits. Pension maximization is an effective strategy for married individuals who are current participants in a pension plan. It helps them receive their maximum retirement benefit and guarantees their surviving spouse an income after their death.  

To understand how pension maximization could impact your retirement, consider this example:

You choose to receive $4,000 per month in your retirement and ensure that your spouse receives the same. Choosing this option would give you $1,000 less per month for your entire retirement - $12,000 less per year or $120,000 lost for every 10 years in retirement. Because people continue to live longer, you could live 30 years in retirement, costing you $360,000 if you fail to plan your pension properly.  

Selecting the life only option ($5,000 per month - the maximum available) for your monthly pension income may ensure you receive the highest amount available. You may use the extra income to purchase a life insurance policy so your spouse will be protected and receive tax-free income from the proceeds upon your death. If your spouse predeceases you, you continue to receive the highest monthly benefit and have the option to reassign your beneficiaries or cancel your life insurance.  

In either situation, both spouses are protected and can maximize the income provided by the pension. With pension maximization, you receive the maximum income from your pension and also help make sure your family is taken care of.  

One of the most important decisions you will face when you leave your job is deciding which pension option to choose. By making the right choice, you can maximize your income and preserve your surviving family’s financial security in the event of an unexpected death. Remember, the pension choice you make is IRREVOCABLE. Contact a Beacon Financial representative today to explore your options.  

 

*Example used as illustration only, not indicative of any particular situation, actual results will vary. Guarantees are based on the claims-paying ability of the issuer.


This information is general in nature and should not be relied upon for financial decision. As with any financial matters, please consult with your financial professional before taking any action.

Am I Properly Diversified?

Diversification can be easily explained with an old saying: Don’t put all your eggs in one basket.

Diversification of your investments means having the right mix of fixed assets and equity assets.

Paying for College with Tax-Free Money

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One of the many ways that we are able to help clients is by showing them how to save and pay for future college expenses.

In 1996, under section 529 of the Internal Revenue code, a program was established that offers families an excellent way to save - and grow - money for future qualified college expenses.