In a recent Free Time Tuesday, I turned my focus on the number one killer of retirement funds: poor health. Health issues and nursing home costs can easily exceed $100,000 per year. No matter if you have saved well, costs such as this can be devastating.
So, what can you do? You can be proactive.
First, take care of yourself.
Once A Year Wellness Checkup
I get it, I get it...you hate going to the doctor and I don't blame you. Doctors appointments can be intimidating, and the last thing you need is to get bad news about your health. That being said, making the sacrifice and seeing your primary care physician at least once a year can be extremely effective in the early detection and even total prevention of disease. According to the Partnership to Fight Chronic Disease, nearly one-third of the 133 million Americans with chronic diseases don't even know if they have the disease. Additionally, this organization estimates that upwards of 100,000 lives could be saved every year simply by increasing preventative care. The tiny bit of discomfort as a result of a yearly doctor's visit now can help you avoid catastrophe in the future .
Regular Chiropractic Care
Nearly 35 million adults in the United States rely on regular chiropractic care to improve their health, and with good reason. Seeing a chiropractor can provide relief from headaches and back, shoulder, foot, and neck pain. This type of therapy can also help with annoying numbness and tingling caused by injury or repetitive motion. Most chiropractors will work with insurance companies to lower costs for their patients. Even if a chiropractor does not take insurance, visits are usually in the $40 to $50 range. For the price of a daily coffee from Starbucks, you could see a chiropractor at least once a week. That's an investment worth making!
In addition to the wonderful feeling getting a massage, there are also many tangible health benefits as well. According to the Mayo Clinic, Studies have shown that massage therapy may be helpful in treating anxiety, insomnia, sports injuries, headaches, and even digestive disorders. Most chiropractors today work in conjunction with at least one massage therapist on their staff. Why not combine a chiropractic appointment with a massage if you have the time?
I want you to be wealthy. That’s why I became a financial advisor. I want you to be healthy because there is a correlation between health and wealth. Multiple studies have shown that people who earn more money are generally healthier and have less disease than lower income earners. Aside from access to better healthcare, wealthy people are more likely to be able to afford gym memberships and have access to nutritious foods. I'm not asking you to drastically change your lifestyle overnight, only that you consider making small incremental steps to improve your health. Let's get wealthy and stay healthy together! Let’s talk some more.
Schedule a phone call with Shawn at https://calendly.com/shawnemay.
Source | Images: Wikimedia Commons
In an infographic published earlier this year by SCORE, they noted that "a retirement savings plans cost employers only 2.4% of an employee’s compensation" AND that
"48% departing employees said a lack of retirement benefits influenced their decision." (See the PDF at the end of this post.)
That says a lot right there about how easy it is to increase worker retention by simply adding a retirement plan. And, that's not the only reason to do so.
Retirement plans for businesses make sense from several different standpoints. For the small business owner, the best plans from which to start are the 401K and the Simple IRA.
A 401K plan basically allows the employees to make contributions into a retirement plan on a tax deferred basis, meaning they don’t have to pay taxes on the money when they make the contribution. They do have to pay taxes when they take money out….when they retire. But it’s a way to reduce their tax liability now.
A 401K also offers very little expense to the employee because you’re buying funds--you’re buying into whatever the mutual fund is--at net asset value which means you don’t pay a sales charge. Otherwise, if the employee were to work directly with an advisor to invest in a mutual fund, he would be paying anywhere between 3 - 6% for every dollar put in as sales charge.
Another benefit is matching contributions from the employer. Although not mandatory, the employer can set what he wants to contribute to the plan. Usually it is a percentage of the employee’s salary.
So, let’s say the employer wants to match 3%. The employee puts in 3% of their salary to the plan and likewise, the employer puts in 3% to the plan.
To the employer, there are benefits as well:
The downside: there are fees involved that are charged to the employer. These are based on the amount of employees you have. A small business--10-15 employees-- might see an annual cost of $1000. However, if you are contributing to the plan as well for yourself--up to $19,000 per year--as opposed to paying outside sales fees of 3-6%, then it’s a wash.
Another option is the Simple IRA.
There are similarities as discussed above: it's a tax-deferred plan and can be written off as a business expense. In addition, there are no fees to the employer, it is very easy to set up and has low paperwork.
I can help you determine which retirement plan makes sense for you and your employees.
That SCORE infographic I referred to earlier made this claim as well:
"40% of owners are not confident they’ll be able to retire before age 65"
Does any of this ring true for you? Give me a call and let's talk.