The Top 3 Financial Challenges Hispanic-Americans Face

Top Financial Challenges Hispanics Face

Hispanic Americans make up one of the fastest growing segments of the U.S. population, and with more Hispanics being birthed in the U.S. then ever before, the growth of this group shows no signs of slowing down. The US Census Bureau projects the Hispanic American population to increase 115% by 2060, at which point they will represent 30% of the entire population.

And this burgeoning segment is not growing without prosperity. According to the Hispanic Access Foundation, the buying power of Hispanics is exceeding $1 trillion and is expected to grow another 50% over the next five years. Hispanic business owners alone contribute more than $70 billion to the US economy.

But despite their entrepreneurial and financial success, nearly half of all Hispanic Americans surveyed by Mass Mutual still reported feeling less financially secure than other groups. So how do we explain this disconnect? For many Hispanics, the following factors tend to get in the way of preparing for long-term financial success and, subsequently, create feelings of financial insecurity.

1) Language and Monetary System Barriers

For native-born Hispanic Americans, the language barrier and US monetary system are far less problematic than they are for older members of the population who immigrated to the U.S. at an older age with limited language skills and resources.

Being a non-native English speaker entering a country with a completely different monetary system can pose huge problems for individuals trying to decipher complicated US tax forms, legal contracts, or applications for credit. Many times, the less fluent, older Hispanic populations will rely on help from their teenage children (or even grandchildren) to translate and interpret such forms!

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WHAT WOMEN NEED TO KNOW TO TAKE CONTROL OF THEIR FINANCIAL FUTURE - PART II

What Women Need to Know to Take Control of Their Financial Future Part II

Insuring Against the Unexpected

Risk management is a vital element of any financial plan. There are events and occurrences in life that we simply cannot predict. However, we can help to guard ourselves against financial devastation in the face of these unfortunate changes with different types of insurance tools.

  • Life Insurance: Traditionally, life insurance policies are purchased with the intention of financially aiding the surviving widow or widower after the unfortunate loss of a spouse. These policies pay death benefits to surviving spouses or beneficiaries upon the owner’s passing in exchange for premiums paid during the owner’s lifetime. There are two basic types of life insurance policies: term life insurance and permanent. Term life insurance policies expire after a certain term, or number of years, whereas permanent, whole life insurance policies provide lifetime coverage.

Life Insurance policies can provide many benefits. For women who are the primary breadwinner of the family, life insurance policies can provide financial security for the family in her absence. The hybrid policies with cash allocations allow the owner to borrow against the cash value of the benefit, which could help a woman pay off debt, start a new business, or finance her children’s education. And policies which combine life insurance with long-term care riders can provide financial resources should the owner become terminally ill. The type of policy you choose, though, should not be a decision made in isolation, but in the perspective of your overall financial circumstances and available resources.

  • Long-term Care Insurance: According to the most recent data presented by the US government, at least 70% of Americans over the age of 65 will need some form of long-term care in their lifetime. Long-term care needs range from periodic in-home help with daily activities to full-time nursing home living. However, planning to pay for the high costs of assisted living or in-home aids is often overlooked.
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What Women Need to Know to Take Control of Their Financial Future - Part I

What Women Need to Know to Take Control of Their Financial Future

Here are the facts: Women are living longer than men[i] and nearly 50% of all marriages are likely to end in divorce (with even higher rates of “Gray Divorce,” or divorces amongst those over age 50). What does this mean for women? That at some point in their lives, whether through divorce, widowhood, or personal choice, the responsibility of financial management will land squarely on their shoulders.

Women have made impressive strides over the past few generations with more than half of American women acting as the primary breadwinner in their household. Today, women are working and earning more than ever before.

But when it comes to money matters, a striking number of women statistically still leave the responsibility of financial management up to men. Experts attribute this trend to a lack of confidence in financial decision making, the female focus on caregiving and homemaking, and even just traditional, societal norms; but regardless of this tendency, longer life expectancies and higher divorce rates indicate that women should empower themselves to take control of their financial futures sooner rather than later.

The main problem, however, is that many women are unsure of where to begin. In fact, over 40% of women say that a lack of knowledge regarding their financial affairs is the single largest deterrent to becoming more involved in money management.[ii]

With this in mind, we have formatted this article into two installments to help women overcome their financial challenges and take control of their future.

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The Right Way to Help Your Child Get into the College of Their Choice

The Right Way to Help Your Child Get into the College of Their Choice

On March 12, 2019, United States prosecutors revealed the largest and most prominent college admissions scandal in US history to date. Allegedly, at least thirty-three affluent actresses, business leaders, and other wealthy parents of college applicants fraudulently inflated entrance exam scores, bribed college officials, and spent more than $25 million dollars between 2011 and 2018 to help their children get into the colleges of their choice. These parents and school officials face countless charges for mail fraud, felony conspiracy, and money laundering. The scandal has been dubbed “Operation Varsity Blues” and is the perfect lesson for how not to help your children get into the schools of their choice.

Parents with ethical standards, though, may be wondering about the right steps to take to help their son or daughter gain admission to their dream schools. With that in mind, we’ve compiled a list of the top 6 things you can do to help give your child the best chance of opening that college admissions letter that reads, “Congratulations!”

Focus on What You Can Control

When it comes to college admissions, the ultimate decision about a student’s acceptance or denial isn’t up to anyone except the decision-making board at the college. This lack of control can drive parents crazy. But, focusing on the elements you can control can make all the difference in boosting your child’s chances for a positive result.

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The Do’s and Don’ts of Pre-Retirement Planning for Professional Athletes

The Dos and Donts of Pre Retirement Planning for Professional Athletes

As much as professional athletes are known for their stellar athletic abilities, they are equally notorious for living extravagant lifestyles and blowing their earnings in a flash. According to a Sports Illustrated article published in 2009, 78% of NFL players are either bankrupt or under financial stress within 2 years of retirement, and 60% of NBA players go bankrupt within five years of leaving the league.

A host of famous professional athletes are earning more than “the average Joe” will in his lifetime, but struggle with transitioning their short-term paychecks into lifelong financial security.

On a fundamental level, earners of all income levels face similar financial hurdles, such as staying out of debt, fighting the temptation to overspend, and saving for the future. But due to the nature of their careers, professional athletes are faced with some pretty unique challenges of their own.

The Game Plan

1) DO Become Financially Literate

Athletes often earn a great deal of money at a young age when they have had little to no experience handling their own finances. Not only does this increase the likelihood of mismanagement, but also leaves them vulnerable to financial salespeople who prey on those who come into sudden money.

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What You Need to Know About Estimating Taxes in Retirement

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Income is income, in retirement or otherwise, and where there is income, there is tax. Even though your income in retirement will be coming from different sources, such as IRAs, pensions, or social security, in most cases you’ll still be responsible for paying taxes on what you receive or withdraw.

Many, if not most, retirees rely on multiple different sources of income to fund their golden years including, but not limited to, the following:

• Social Security Income
• Pension Plans
• Traditional IRA and 401(k) withdrawals
• Roth IRA or Roth 401 (k)s withdrawals
• Investment Income

Each type of income incurs unique tax rules and liabilities and will affect your take-home amount in different ways. In order to minimize the tax burden on your overall income and accommodate for those taxes in your budget, you’ll need to understand how each different type of income is taxed.

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Tax planning for 2019: What did tax reform impact?

Tax planning for 2019 What did tax reform impact

Now that 2019 is off and running, it's time to start thinking about taxes. The tax reform bill, which was signed into law in December 2017, means changes for your taxes this year. Here are a few things to think about:

The marriage penalty is gone. The new law does away with the decidedly unromantic situation in which spouses were pushed into a higher tax bracket when they married. It’s all part of an overhaul in the tax bracket structure. If you’re single, you’ll probably see your tax bracket lowered, too.

Standard deduction. It’s the age-old question. Should you itemize or take the standard deduction? This year, thanks to the new tax laws, the answer to that question just got a lot easier. The standard deduction is now twice what it has been in previous years. For 2019, that means $12,200 for individuals, and $24,400 for married couples filing jointly. It means more people are going to be opting for the standard deduction, especially with the new limits on state, local or property tax deductions, capped at $10,000.

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Benefit bafflement? Here's how divorce or spousal death could affect your Social Security

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As you approach your retirement years, you may think you understand everything about how Social Security works. But the timing of getting that first check can be tricky, especially if you've experienced a spousal death or divorce.

In general, you may start withdrawing your guaranteed payments starting at age 62; however, for each year those withdrawals are postponed through age 70, you will receive an additional 8 percent or so based on inflation. Unmarried widows, widowers and divorcees may receive the greater of their own benefits or half of their late or former spouse’s benefits, but either way the amount received will be reduced according to when withdrawals start.

That means the strategy you choose could make a big difference in your income throughout your golden years. As of May, 59.3 million Americans were receiving Social Security benefits, but only 45 million were 65 or older. And a survey this year found a full 74 percent of American women were taking such benefits before age 70.

“For many people, when to claim Social Security is one of the most significant choices they will ever make,” notes Stan Hinden on AARP.com. “The timing of the first check affects how much they'll get from Social Security and what benefits will be available for spouses, children and eventually survivors.”

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How the New Tax Laws Impact Your Dental Practice

TAX_PLANNING

The tax reform bill passed by Congress earlier this year was the first major overhaul of the tax code in three decades. If you're a dentist, you might be wondering how it could affect you and your practice. Here are some changes worth noting:

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HOW TAX REFORM EFFECTS YOUR RETIREMENT NEST EGG

TAX REFORMHow Tax Reform Effects Your Retirement Nest Egg

Wondering how the new tax laws will affect your retirement account? Some Americans will greatly benefit from the new tax laws, including those who see a reduction in their tax brackets. One group for whom the new tax laws are a mix of good and bad news is retirees.

Here are some of the ways the new tax laws will affect retirees and those saving for retirement.

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Busting financial myths about retirement savings

MYTHS BUSTEDWe all know we should be saving for retirement, but from that baseline, myriad variables exist. How much in savings is enough? What role does Social Security play in your overall financial picture? At what age should you retire?

What you don’t know about building wealth and saving for retirement might surprise you. There are a lot of misconceptions floating around out there. Here are some common myths about retirement strategies and the reality behind them.

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Five Financial Facts to be Aware of Before Your Divorce

DIVORCE GRAPHICThe costs of divorce are many. There's the emotional cost of the breakdown of a family, the pain of a failed marriage and the anger that can come with the reasons for the split. Divorce can take a physical toll, too, as the stress of it all wreaks havoc with your sleep, your blood pressure and your immune system.

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Regulatory Disclosure: The information on this website has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. This website is neither an offer to sell nor a solicitation to buy any securities. Gerard Gruber offers Securities and Investment Advisory and Financial Planning service through Geneos Wealth Management, Inc, Member FINRA/SIPC.  Investments are not FDIC insured. Investments are not deposits of the financial institution and are not guaranteed by a financial institution. Investments are subject to investment risks including loss of principal amount invested.