Category: Brandpoint Business & Finance

2020-10-01T07:01:01

(BPT) – If you currently have a flexible spending arrangement (FSA) or a health savings account (HSA) through your employer, you probably appreciate knowing that you have some pre-tax savings stashed away in case you need them for a healthcare expense. FSAs and HSAs aim to provide convenient, affordable spending options, allowing employees to create accounts where they can deposit pre-tax funds during each pay period to cover out-of-pocket healthcare expenses.

New this year, you can use those funds to help pay for over-the-counter (OTC) medicines (without a prescription) and menstrual or feminine care products. The expanded eligibility to include these expenses was part of the Coronavirus Aid, Relief, and Economic Securities (CARES) Act passed in March 2020.

FSAs and HSAs can help reduce costs — if you use them

Unexpected healthcare costs can put a serious dent in your budget. And if you have healthcare expenses — whether you anticipate them or not — having an FSA or HSA can save you a lot. Americans with employer-sponsored insurance are increasingly funding more of their own healthcare expenses. On average, workers paid $6,015 for family coverage and $1,242 for single coverage in 2019, according to the KFF Employer Health Benefits Survey.

However, chances are good that you still have funds in these accounts that you haven’t yet been able to use this year. In fact, most FSAs work on a “use it or lose it” basis, resulting in over $400 million per year going unspent by employees. This new eligibility for coverage of OTC medicines (not requiring a prescription) and menstrual care products (including tampons, pads, cups and other products) provides consumers with even more options to spend these tax-free funds, which is good news for anyone trying to save on costs.

The other good news is that the law is retroactive, so if you still have receipts for any purchases of OTC medicines or menstrual care products from as far back as Jan. 1, 2020, you may be eligible to receive reimbursement of those funds by submitting the necessary paperwork to your FSA/HSA administrator.

Newly eligible products

OTC medicines offer safe, effective relief for a wide variety of symptoms and conditions, providing the first line of defense for families’ healthcare needs. In previous years, a prescription was needed to use FSA or HSA funds for these everyday products. Keep in mind, however, that OTC medicines should not be considered a substitute for consulting your healthcare provider, especially if you or a family member has concerning symptoms, such as any known coronavirus symptoms.

Menstrual products also provide necessary comfort and care for women, and add up to a surprisingly large expense. U.S. women altogether spend $3 billion per year on menstrual care products, according to the National Center for Health Research. BenefitsPro.com also reports that women spend around $4,752 on tampons and pads throughout their lifetime, which doesn’t account for other menstrual health-related products they also use.

All of these products add up to a lot of additional costs. And during a time when more than 9 in 10 Americans feel anxious about finances amid the COVID-19 pandemic — with healthcare bills being one of the top 10 stressors, according to the National Endowment for Financial Education — finding new ways to save money helps relieve some of that stress.

Have questions, or don’t know if you or your particular expenses are eligible under your plan’s coverage? Contact your employer’s FSA/HSA administrator with questions about your eligibility and the eligibility of specific products, and visit TaxFreeOTC.org to learn more.

2020-10-01T07:01:01

(BPT) – October is National Financial Planning Month, a time when we traditionally slow down, check in and make some progress toward our long-term financial goals. Big-picture money objectives may feel difficult right now, while we grapple with the economic fallout from the pandemic and struggle to meet immediate financial needs. Nearly half of Americans are worried about their financial future, according to Prudential’s 2020 Financial Wellness Census, and most people perceive their financial mobility as fixed.

In this current climate, it’s important to take stock of our new reality, adjust our strategies and move toward practicing financial wellness, even if financial security feels temporarily out of reach. Amanda Clayman, financial therapist and Prudential’s Financial Wellness Advocate, is here to guide us through some steps for looking to the future with hope:

1) Make Time for Your Money: You cannot plan for the future if you do not know where you are now. Setting consistent times and days to sit down and look at your statements, bills and paychecks goes a long way in feeling confident about your financial ability — no matter how much is in the bank. The more you familiarize yourself with your situation, the less scary it all becomes.

2) Focus On What You Can Control: Uncertainty is more prevalent than ever during the pandemic. Variables like employment stability and stimulus checks can leave us feeling stressed. As much as you can, let go of what lies outside your control. Instead turn your energy toward the activities where your efforts make an impact, like reallocating your savings and reevaluating your expenses.

3) Tune In To Your Feelings: Emotions about money can be messy. Anxiety, insecurity or fear can cause us to react disproportionately to financial situations, often prompting us to extremely restrict or overspend. Begin Financial Planning Month by examining your emotional state these days and identifying how your feelings may influence your decision-making ability.

4) Look to Your Community: Those of us who formerly prided ourselves on being self-sufficient are turning to our communities, neighbors and families for support — emotionally and financially. This can be hard to come to terms with, but also has the power to draw us closer together and create a future in which we take care of each other. Now is the time to put shame on the shelf and learn about the community resources at our disposal.

5) Make an Adaptable Plan: Looking long-term might be daunting right now. Make the best plans you can with the information available to you now, and expect to change them as your situation evolves. Remember, you are adaptable and capable of responding to adversity. These plans do not need to be set in stone, but having them in place will help you feel proactive and hopeful about your financial future.

2020-10-01T08:01:00

(BPT) – Data breaches, identity theft, phishing attempts and malware literally “pop up” every day. October is National Cybersecurity Awareness Month, which each year reminds us why it is critical that we remain vigilant when it comes to you and your family’s digital activity, habits and overall cybersecurity.

Cybercrimes have skyrocketed in 2020 — Barracuda Networks reported in March that COVID-19-themed spear phishing emails skyrocketed 667% between March 1 and 23. As fraudsters seek to take advantage, Schwab reaffirms our commitment to our clients to keep their data safe and secure.

“The spike in cyber-attacks during the pandemic underscores the importance of National Cybersecurity Awareness Month, and acts as a critical reminder to remain vigilant against fraudsters and cyber theft,” said DJ Johnson, senior vice president of Corporate Risk Management at Schwab. “We have a team of approximately 350 full-time and 200 contracted cybersecurity experts and employees dedicated to information security. Each day they are committed to ensuring we have the critical policies and tools in place to best secure and protect our clients’ data and sensitive financial information. In addition, we strive to ensure our clients are updated with the latest tips, best practices and ‘red flags’ they need to be prepared to prevent fraud attempts and cyberbreaches.”

Protection you can see, and protection you can’t see

When combatting fraudsters and scammers who look to exploit vulnerabilities, we focus our protection activities on three key areas: our clients and employees, our systems, and the information we are entrusted with.

Some of these activities are visible to our clients:

• Authentication process — Our approach to security and fraud protection is anchored by multiple levels of physical and digital safeguards. We require secure identification and authentication before initiating transactions and maintain strict rules for the creation of secure user IDs and passwords to stop others from obtaining user login information.
• Protecting vital passwords — Passwords are stored in the database as ”hashed” values, which are one-way mathematical functions that convert an original string of data into a seemingly random string of characters that is not useable by fraudsters.

Other activities are not visible, but are equally important:

• Connections process — We provide a secure transmission connection to our Schwab websites through security technologies and encrypted cookies to establish and maintain a secure transmission connection designed to prevent unwanted visibility or interception.
• Ongoing security evolution — We implement policies to fight against new and changing security challenges through constant assessments of our email security and login standards. Transaction monitoring, employer oversight and access control provide additional oversight to help identify unusual account behavior. We also have internal transaction monitoring systems in place to identify potentially suspicious and fraudulent activity.

This year, with cyber-attacks on the rise during the pandemic, as well as our increasingly digital and remote working network environments, cybersecurity awareness and preparedness is more critical than ever. We will continue to proactively pursue and invest in new ways to combat cyber-criminals, which we hope provides our clients with much-needed peace of mind and confidence that their data and information is safeguarded during these uncertain times.

For information on more ways to educate and protect yourself and your family members from cybercrimes, visit schwab.com/schwabsafe/security-knowledge-center.

2020-10-01T08:25:30

(BPT) – Car maintenance is often a scheduled chore when you’re regularly driving. However, if you’re driving less due to the current environment, maintenance can easily become a lesser priority or even completely forgotten. Hankook Tire’s latest Gauge Index found that as daily driving decreased as a result of the coronavirus pandemic, nearly one-third (30%) of Americans have done less car cleaning and maintenance too.

But car maintenance is always important, especially as drivers around the country gradually resume their travels and hit the road. Hankook Tire found that 60% of Americans expect to take more car trips moving forward. With that in mind, the following are five reasons it’s important to keep up with regular car maintenance:

1. Safety

First and foremost: Regular car maintenance helps increase safety when driving. This is especially important if your car has been parked for a while. Be sure to check your fluids (oil, washer, coolant, etc.) and inspect the tires to make sure that they haven’t lost their pressure. After all, the Gauge revealed 70% of Americans have not regularly been checking tire pressure during the pandemic. Low tire pressure can lead to several issues such as poor performance, premature wear and higher rolling resistance, which can impact fuel efficiency.

2. Save time and money

Consistent car maintenance also helps extend the overall life of not only your tires, but the systems that drive them, including the engine, suspension, brakes and transmission. With the median price of a set of four tires ranging from $300 to $600, investing in regular tire upkeep such as rotations and alignment when necessary, helps deter more costly repairs down the road — making both your car, and your money, go further. And, you’ll save time. Regularly scheduled basic maintenance appointments traditionally don’t take too long — and some dealerships even offer special pick-up and drop-off appointments so you never have to leave the comfort of your home.

3. First place performance

Just like a regular gym routine helps keep your muscle groups firing on all cylinders, regular trips to the mechanic can provide the same benefit to your car. Whether it’s a crushing leg day (suspension) or a cardio workout (engine), routine inspection of your shoes (tires) will help you maximize your workout traction so you’re ready for the next round and running at peak performance.

4. Cleanliness

While cleaning the vehicle’s interior and exterior was the primary maintenance measure (40%) Americans took at the height of quarantine, the idea of clean cars goes beyond just dust on the dashboard and sanitized seatbelts. It keeps the environment clean, too. Little maintenance checks add up to a big environmental impact. For example, regular oil changes contribute to a cleaner engine and lower vehicle emissions, while properly inflated tires can contribute to better fuel efficiency.

5. Vehicle value

When the time comes to upgrade your vehicle, one of the first points of inspection is on the inside. A vehicle’s internal condition is one of the key factors in determining its worth, so it’s best to keep everything well-oiled and running smoothly, even if you don’t have any immediate plans to trade it in.

While it is recommended to adhere to your vehicle’s outlined maintenance schedule, there are a few things that drivers can do on a regular basis to provide added value. Every month, double-check to make sure headlights and taillights are working, fluids are topped off, and your belt and hose systems are running smoothly. Use the penny test to check your tire’s tread. In addition, keeping a vehicle maintenance log helps you stay organized and ensure good habits that can have a real impact when it comes time to trade in.

If any issues do arise, Hankook recommends getting your vehicle checked out by a certified mechanic before getting back behind the wheel.

2020-09-30T20:07:00

(BPT) – The job hunt after college is exhilarating and emotional while at the same time stressful and exhausting. Adding a global pandemic into the mix threatens to upend the process for the nearly 4 million 2020 graduates.

For recent graduates, the disruption to the hiring and internship experience has brought unexpected challenges and adversity, and tested their ability to persevere.

Some internships have been canceled or pushed back and job offers have been rescinded as companies have frozen hiring to lessen the financial burden brought on by the pandemic. Travel bans are restricting graduates from taking jobs across borders and graduates are faced with fewer job openings and increased competition for those jobs. These are just some of the added roadblocks new graduates are facing in 2020.

At the same time, many companies are pivoting to virtual interviews and networking events and, in some instances, entire internships have gone remote.

With remote jobs and internships comes new challenges for students and grads to overcome. Kristen Wahl, director of the EcoCAR Mobility Challenge and the Advanced Vehicle Technology Competition program at Argonne National Laboratory, has helped thousands of students land jobs post-college during her 20-plus years leading the program.

Here are a few tips from Wahl for landing that first job in the COVID-19 era:

Use the virtual tools at your disposal to network with recruiters. With in-person events off the table this fall, jobseekers need to seek alternative methods for making the connections that previously would have happened at career fairs. Reach out to your network on LinkedIn and other recruiting platforms. Email the professional contacts you’ve made through industry organizations or extracurricular activities. Pick up the phone and call recruiters to learn more about an open position. It’s all about taking the extra step to stand out from the crowd when first impressions are no longer face-to-face.

Take advantage of virtual recruiting fairs and career prep sessions. Is your school hosting a virtual career fair? Is the student organization you’re a member of bringing in a guest speaker for a virtual chat? Identify the many opportunities available to connect with potential employers and use them to make connections. To stand out from the crowd, you’ll need to be an active participant. Ask questions. Share thoughts. Contribute to the conversation. Don’t be afraid to speak up, but also make sure you do your research on the company first.

At EcoCAR, we identified ways to connect students with prospective employers. We quickly ramped up virtual recruiting webinars and career prep sessions, continued facilitating personal introductions and industry mentoring opportunities and revised our recruiting tools to better match talent with relevant positions.

And finally, practice your virtual personal sales pitch and refine your digital professional presence to reflect all you have to offer. Make sure your LinkedIn and portfolio highlight your experiences and skills. Go beyond just sharing your degree information and articulate your value proposition. This includes showcasing your out-of-the-classroom experiences, leadership training, previous internships, as well as describing times you overcame adversity.

Recruiters want problem solvers and critical thinkers. They want someone who will pick up a new skill quickly and learn fast. So, instead of looking at the pandemic as a setback on your job search journey, view it as an opportunity to demonstrate you possess these qualities and are right for the job.

Good luck!

2020-09-29T05:01:00

(BPT) – Making the transition from military service to civilian life can be challenging on multiple fronts — and the toughest issue can be figuring out your next career move. Fortunately, there are plenty of resources available for veterans and military families coping with the job hunt, moving, handling their finances and more.

As part of Navy Federal Credit Union’s continued effort to help our nation’s heroes get hired, the credit union conducted a recent webinar featuring top veteran employees offering useful advice for getting hired and moving forward in your life after military service. Bryant Luciano, Recruiter II and a Marine veteran, and Kerry A. Favero-Rivera, senior organization development consultant and executive coach, who is a Navy veteran, provide their tips for making the most of this transition.

Start your job search early

Both Luciano and Favero-Rivera recommended beginning your job hunt immediately — not waiting until you start your transitioning classes. This will give you the time to figure out what you want to do after your transition and then actively pursue that career.

Prepare yourself mentally

Looking for work, especially in a new field, is always daunting. “Understand that you will get rejected more often than not,” says Luciano, “And know that the job search is hard, but not impossible. Keep going, trust the process and rely on those around you like a transition officer or recruiter to help you navigate any challenges.”

Use your network

Favero-Rivera emphasizes the importance of tapping into your own personal network throughout the process. “Everyone you know also knows others, so take advantage of that wider network,” she says. “Most people get jobs through word of mouth so by simply talking to others about what you’re looking for, you’re furthering your job search.” Start by telling everyone you know what kind of work you’re looking for, and your network will start to keep their eyes and ears open for you.

Do your research

Luciano emphasizes using career-oriented websites for research, including Indeed^® and Glassdoor^®. Decide where you want to live and then explore companies and organizations in that area online. “Make a list of five companies you want to work for,” says Luciano. “Research those companies and find out what types of opportunities they have available.”

You may need to find training opportunities or develop skills on the job as you transition into your ideal role. This will open doors to endless opportunities in the long-term. As you work your way to that ideal role, your experience will help you stand out. “Many companies prefer to hire from within,” confirms Favero-Rivera, “So it could make sense to start a job that only meets some of your needs, but long-term will be fulfilling and at a company you want to work for. When a job opens up that you prefer, you’ll be in a better position to get hired since you’re already an employee.”

Make the most of veterans’ organizations and programs

From highlighting further training opportunities to exploring career options, and helping to improve your resume to broadening your interview skills, there are helpful resources available for veterans. “Don’t be afraid to ask for help,” says Luciano.

A few helpful programs and organizations for veterans include:

• Free career counseling at the VA
• DoD’s SkillBridge Program
• Hire Heroes USA
• Career OneStop’s Veteran and Military Transition Center
• Onward 2 Opportunity through Syracuse University
• Navy Federal Credit Union’s Transition Kit and Resources

Translate your military service into civilian terms

It is important to create a resume that not only reflects the experience and expertise you’ve gained from your military service, but also sells these valuable skills to a civilian employer in terms they understand. Veterans’ organizations can help you with this crucial step in the transition process.

Factor in the current situation

As well as adjusting your job search to be primarily online during the COVID-19 pandemic, you will also want to ask prospective employers about how they’re coping with current health and safety protocols for employees. “Make sure the emphasis is on the employee over everything else,” Luciano says. “This will show you that a company’s culture will not only value the work you do, but who you are as an individual too.”

Manage your finances smartly

Both experts agree that sometimes you need to take a job just to pay the bills. “In the meantime, continue to explore what and where your best job will be,” says Favero-Rivera.

Here are their best tips for staying on top of finances:

• Pay yourself first. “Try to save just a little, no matter what your situation,” says Favero-Rivera. “Your future self will thank you.” Setting up automatic deposits into a savings account with each paycheck is one easy way to save.

• Write down your budget. Use the NFCU Budget Worksheet to help put your budget on paper. “Actually writing your budget down makes it easier to stick to it,” says Luciano.

Build on your training. Throughout your transition, continue to employ tactics your financial advisors taught you during your service. According to Luciano, many of them will still apply in civilian life.

2020-09-29T06:01:00

(BPT) – If you’re a small-business owner — whether your business consists of just you and your spouse or a handful of employees — and you’re emerging from the pandemic into your new normal, it may be time for you to think about setting up retirement accounts, not just for your employees, but for yourself, too. That may be a surprising statement, considering many small-business owners do not currently offer retirement benefits to their employees, let alone take the time to set up an account for themselves.

There are myriad reasons why small-business owners put off saving for retirement, including investing every last dollar back into the business so funds for things like retirement weren’t available, anticipating selling your business when you retire so there’s no need to save now, and, a reason every business owner can relate to, there are just not enough hours in the day to think about it.

But the reality is, it’s easier than you think. A good financial advisor can explain the ins and outs of retirement accounts to you in an afternoon and help you decide on the plan that makes the most sense for you, your business, and your employees. Your retirement-age self will thank you, and offering those benefits will make it easier for you to hire and retain employees now, too.

Until you make that appointment with your advisor, here’s a primer in Small Business Retirement Account Options, 101.

SEP (Simplified Employee Pension)

A SEP is designed for self-employed individuals or small businesses, ideally with fewer than 25 employees. If you earn a self-employment income, you are allowed to save more for retirement using a SEP plan than a traditional IRA or Roth allows. A SEP is less complex and costly than a 401(k), allows employers to contribute larger amounts than a traditional or Roth IRA, and may qualify for larger tax deductions.

SIMPLE IRA (Savings Incentive Match Plan for Employees)

A SIMPLE IRA is ideally suited as a start-up retirement savings plan for small employers who have 100 or fewer employees, and who are not sponsoring a retirement plan. Contributions are tax-deductible, and earnings within the account are tax-free until withdrawn.

Solo 401(k)

A Solo 401(k) is for those who are self-employed and offers the same benefits of a regular 401(k), but it is designated for a business in which only the owner (and their spouse) is an employee. You can choose to make after-tax salary deferrals (adding a Roth component), with the tax advantages of withdrawals being tax-free when the time comes.

The power of self-directed accounts

What’s the difference between a traditional and self-directed 401(k) or IRA? Where you’re allowed to put those investment dollars. Especially in uncertain economic times like the ones we’re living through right now, that choice couldn’t be more important. With a self-directed 401(k), you can invest beyond the stock market.

So, if not the stock market, where do you put those dollars? With a self-directed 401(k), you can choose from many different areas, including:

• Real estate

• Private debt like corporate debt offerings, notes secured by deeds of trust or mortgages

• Private equity like stock of C-corporations, limited partnerships, LLCs, and REITs

• Precious metals, including gold, silver, platinum, and palladium

• Cryptocurrency like Bitcoin

Why self-directed accounts are so attractive to investors

The beauty of this type of retirement investing isn’t just about having options other than the stock market. It’s about following your passions and using your own expertise to guide your investments. Let’s say you’re a real estate agent. You know the market extremely well. With a self-directed account, you can put your knowledge and your dollars together in a tax-advantaged way.

It’s also about paving the way for what you want to do after retirement. For that same real estate agent, it means retiring from selling properties and living on the income from the ones he or she owns via these investments. Equity Trust Company has seen investors use their knowledge of medical technology sales to fund their retirements and people involved in home restoration tie their retirement to the activity of their business.

Whatever retirement account option is right for you, investing now means peace of mind later for yourself and for your employees. Equity Trust specializes in helping people make decisions about their retirement accounts. To find out more, visit https://www.trustetc.com/contact-us/.

Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.

2020-09-29T09:01:01

(BPT) – Running a business is no small feat. Add to that the evolving uncertainties with COVID-19, protests, rioting, a recession and more, and any business is on high alert. Preparing for unknowns is difficult despite the organization’s size, but it can be even more difficult for small and medium businesses.

Whether you’re running a booming startup with a network of teams, have a small business with a dedicated core of employees or are a solo act making your dream come true, it’s important to be proactive during these challenging times. Here are three steps every business owner should take to ensure they are protected in the future:

Step 1: Have a crisis action plan

What would happen if your store was ransacked during a riot? What would you do if someone broke into your business accounts? What if you or your employee was injured on the job? It’s important to set up at minimum a basic crisis plan to deal with scenarios that could cause trauma to people and stress to your bottom line.

Crisis plans are written procedures that serve as guidelines to follow when an incident occurs. They can include training information that’s helpful to prepare for different situations. This also should include important contact information such as police and emergency numbers as well as insurance contact information.

Step 2: Secure the right insurance

Many businesses struggle to get adequate coverage, especially liability coverage for unique situations. Consider contacting XINSURANCE, which provides insurance that other providers can’t or won’t. With more than 30 years of diversified underwriting experience for difficult risks in all 50 states, you’ll find what you need.

The company has a unique approach that provides all risks with a $10 million limit in-house, with higher limits available. They can offer an all-in-one policy that can include coverages such as property, general liability, professional and specialty liability including excess medical and commercial auto (available in most states). You’ll be covered from frivolous lawsuits and won’t have to worry about gaps or exclusions in your policy.

From tow companies to amusement rental organizations to stunt performers and so much more, you’ll get the coverage you need for any risk. This can include considerations for crisis situations as well, such as communicable disease liability coverage (including COVID-19), civil commotion liability coverage (such as riots and looting), active shooter liability coverage, and more. Learn more at www.xinsurance.com or call 877-585-2853.

Step 3: Expect the unexpected

If nothing else, 2020 has been the year to expect the unexpected. It’s important that you be prepared for anything. In addition to being proactive with a crisis plan and ample insurance, you want to set money aside in an emergency fund should your business need to access it.

Whether it’s suddenly having to integrate PPE into your business procedures, adding layers of security to your digital platforms or having the funds to cover payroll if you need to suddenly halt production, having the resources to make it through a rainy day is essential, especially for small businesses that run tighter budgets and schedules.

Being a business owner is a source of pride for many people. By taking these three steps, you’ll ensure the wellness of the business and help it thrive for years to come.

2020-09-24T08:01:00

(BPT) – Life constantly changes and no one can predict the future, which is why life insurance offers peace of mind that your loved ones are protected financially should anything happen to you. There are many life insurance options available, which is beneficial because that means you can find the best one for your needs and budget.

While the global pandemic has put the question of mortality front and center and has more people seeking information, life insurance is really an evergreen need as there’s always value in protecting your loved ones.

To help you better understand life insurance, financial expert Salene Hitchcock-Gear, president of Individual Life Insurance at Prudential, answers top questions and provides guidance so you can make the right choice for your personal situation:

Why get life insurance?

Life insurance is an investment in your loved ones’ futures. Depending on the size of the plan, life insurance can help pay for anything from funeral expenses and cost of living to outstanding bills and retirement. It can even be designated as a charitable gift to a cause close to your heart.

And amid a global pandemic, the need for life insurance has become very clear. There’s an increase in awareness about the importance of life insurance as 11% of the general population has expressed interest in expanding their life insurance coverage since the onset of the pandemic, according to Prudential’s latest Financial Wellness Census. In addition, this figure nearly doubles for Black Americans, and COVID-19 has disproportionately affected this population in many ways.

Ensuring your financial house is in order can provide some peace of mind during an otherwise turbulent time. Life insurance can be a purchase that doesn’t break the bank, but keeps people protected from facing serious financial hardship.

What are the different types of life insurance?

Four of the main types of life insurance include term, whole life, universal life and variable universal life. Term life insurance is selected for a specified term, such as 10, 15 or 20 years, and offers coverage during this period. Whole life insurance is intended to cover your entire life span, and plans build cash value. Universal life is also intended to cover your entire life, but with more flexible premiums; premiums paid in excess of the policy charges can earn interest to build cash value. Variable universal life is similar to universal life but the potential to accumulate cash value is based on equity performance.

When shopping for life insurance, it’s a good idea to speak with a financial professional to understand which plan would best suit your needs.

When is the best time to get life insurance?

Life insurance may benefit your financial plans at any age or stage of life. Here are some examples of why life insurance is important that you may not have thought about:

• Young, single and fresh out of college, life insurance can help pay for your student loans that your parents cosigned so they aren’t stuck with that debt if something happens to you.
• If you’re married and/or have a child, life insurance can cover the cost of your mortgage and help pay for raising children. It might even help pay the cost of college tuition when they’re grown.
• If you’re shifting your focus to retiring, life insurance can help you leave a legacy to your loved ones when you begin to tap into savings after you stop working.

Should you purchase life insurance online or with an advisor?

You can do either, or a combination of both, depending on your preference. For example, for those looking to research and purchase online, some carriers, including Prudential, have term life insurance available for purchase online.

You may also decide, as many do, to research your options online and ultimately consult with a financial professional to determine a final purchasing decision.

For those who prefer to work exclusively with a live person, you can always find a financial professional to discuss your best life insurance options and purchase the right policy.

Is an employer-sponsored plan adequate?

If you are working, your employer may offer you the option to purchase life insurance as part of your benefits package. Depending on your specific situation, these plans could be enough for your needs. Just make sure you understand coverage, as many of these may be basic plans with bare-bones features. You may want to compare options or purchase supplemental life insurance independently to ensure you’re covered adequately.

How much is needed?

The best way to determine the amount needed would be to consider what expenses your family would have if something happened to you, and how they would be able to continue enjoying their current quality of life if you were gone. Financial professionals and/or online life insurance calculators can help with the math, too.

Regardless of where you are in your financial wellness journey — whether you’re just starting out or nearing retirement — life insurance can be an important part of a holistic financial plan.

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2020-09-15T08:01:01

(BPT) – There have been significant changes to military benefits over the last year affecting pay, retirement benefits, health insurance and GI Bill rules. The changes will affect different service members in different ways, but given that the global pandemic has affected almost everyone’s physical or financial health in some way, now is an important time to re-evaluate your military benefits.

“We usually think about updating our benefits only when there is a life change,” said Russell Simmons, Certified Financial Planner^® at Charles Schwab and Army Reserve Soldier. “But the pandemic has altered life for many people, so consider the financial implications of your military benefits and any changes you may need to make.”

Simmons offers some easy ways to get started.

• Evaluate your financial situation: Start by meeting with a Personal Financial Counselor, a resource available to you at no cost while you are serving. They will help you create a budget, save for large purchases, build your credit, and plan for the future, including things like determining insurance needs and estate planning. This is especially important if you’ve had a life change — like a marriage, divorce, children, illness or death. Talking about money may feel uncomfortable, but the effect of not addressing these things can be devastating.
• Ask for help: Free help is also available to assist with taxes, individual and family counseling, financial counseling, and other miscellaneous personal needs. Take advantage of free legal assistance available through the Judge Advocate General’s Corps (JAG), such as drafting wills, powers of attorney and living wills. These are services that you would otherwise pay for out of pocket, so don’t leave money on the table. Military OneSource is a free resource to find experts, access financial tools like salary calculators, and find practical advice and information. The Department of Defense Transition Assistance Program (TAP) has information, tools and training to prepare you and your family for your military-to-civilian transition. Transition Assistance Offices are on most military installations in the United States and overseas. Each service branch has its own program.
• Understand your benefits: Research what benefits transfer with you after you leave the military, if and when the benefits expire, and what it will cost you to supplement those benefits in civilian life. Don’t forget to look at your eligibility for VA home loans, Post 9/11 GI Bill education benefits, and Blended Retirement System/Thrift Savings Plan (BRS/TSP) benefits, as well as health and life insurance options. Some benefits can be transferred to your spouse or children, including education benefits.
• Plan for retirement: Many people postpone planning for retirement, assuming they have time to plan. Don’t fall into the trap. Even 20 years of service may not get you where you want to be for retirement. The earlier you start planning, the better off you’ll be on achieving your specific retirement goals. There are online tools to help you understand your retirement benefits, how much you qualify for and at what age you’ll start to receive retirement income. If you were deployed after 2008, reservists may be eligible to receive benefits earlier than expected.

With the recent revisions to many military benefits, you may find that you are eligible for more benefits and financial incentives than you realized. But the benefits you have now may not be the same in the future, so it’s important to dedicate time each year to understand any changes (or work with an expert). Benefits vary based on where you are in your military career, and knowing what you should expect can help support your financial plan.

Disclosure:

This information is for educational purposes only. It is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager. Charles Schwab & Co., Inc, Member SIPC.

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