We all seem to have a unique picture of prosperity. For one person, it may be the freedom to quit a job or independence that lasts as long as they do. For another, it may mean supporting a good cause. It might mean leaving a nest egg for the next generation, or building a company to leave to them. Some may think of a big house, big boat, or a big world to travel. Most likely, your unique vision of prosperity includes a combination of these things and others. But no matter what your definition is, one thing is certain: you want the resources to put your money where your priorities are. Callaway can help.
These days, it seems like there are as many different financial instruments as there are dreams of prosperity. With so many choices, it’s hard to know how to divide your assets to get the return you want with the security you need. Luckily, Callaway Financial Services has spent decades navigating these choices, so no matter what your needs, we’ll be there. Here’s a comprehensive sampling of what we can help you with:
At Callaway, we realize that there’s no single strategy that works for everyone. You’re unique, with different goals, income, debts, risk tolerance, tax situation, dependents, charitable concerns, health issues all your own. That’s why we take the time to listen to you. We understand your individuality and will work with you to structure the right financial strategy for you on your terms.
An annuity is simple a series of periodic payments. It is a contract guaranteed by an insurance company that promises to make a series of payments for a fixed period or over someone’s lifetime. A premium paid either in lump sum, flexible or periodic payment schedule is paid to the insurance company in advance.
Why would I want to buy an annuity?
For those who are risk adverse and want their money guaranteed, an insurance company can provide a fixed annuity that pay a fixed interest rate much like a Certificate of Deposit.
Annuities also provide retirees that want a steady guaranteed payment like a pension or social security payment the same functionality and safety.
Annuities provide tax deferred accumulation for a fixed annuity and tax sheltered growth for a variable annuity.
Annuities also provide tax sheltered income and in the case of variable annuities tax sheltered growth.
Annuities are also protected from creditors.
The insurance industry has a tremendous lobby to protect these types of contracts from legislative change as well.
Insurance companies go bankrupt, what happens to my money or my insurance contract if that happens?
First insurance companies reinsure each other to further diversify the risk. Second, the state where the insurance company is domiciled steps in and transfers all existing contracts to another insurance company to continue the benefits and guarantees. But there is a limit. There is not an FDIC like in the banking industry. The state will have a limit of approximately $300,000 of cash value that will be covered in the event the insurance company has zero assets or reserves left, this will vary from state to state and is not a hard amount.
How do you know this?
I have experienced several insurance companies failing in the past.
What is the difference between a fixed annuity and a variable annuity?
A fixed annuity pays a fixed interest rate based upon the underlying bond portfolio owned by the insurance company. For customers who are willing to take on more risk, a variable annuity has sub accounts that invest in the stock market and the bond market directly. The sub accounts are much like a mutual fund, but we are not allowed to call the sub accounts a mutual fund.
What is a surrender charge?
When you by an annuity the agent is paid a commission. There are also expenses incurred by the insurance company when establishing the contract. And to keep the underlying bond portfolio from being disturbed (selling bonds to provide cash for early surrender) insurance companies set in the contract a surrender charge to cover these expenses. Basically if you intend to buy an annuity, you need to be prepared to hold it for a very long time.
Establishing a savings for your child’s college is a very admirable goal. And there are many vehicles to fund this goal. We believe it is important to provide the greatest opportunity for our children. Higher education or learning a specific trade or skill gives them a better opportunity to succeed.
Can I just put some money aside for my child?
Yes, you can do so through individual savings and or investment accounts held in your name. Though this is not the most tax efficient it is the least complicated and there are no rules to deal with. All earnings on the savings or investment are taxable in the year the earnings were made at the parent’s tax rate. If the child does not go to college, you can give the money to them or you can keep the money for yourself.
What is an UGMA? Can it be used for college savings?
The Uniform Gift to Minors Act account, commonly referred to by its acronym UGMA and UTMA depending who you are talking to. In the past this type of account was used to transfer wealth from ones estate to the children. More often than not, the funds transferred to the account are used for college. The investments in the UGMA account are taxed at the child’s tax rate only if the earnings exceed $1,050 in a given tax year. The parent is the custodian of the account and controls access to the funds up to and until the child turns 18. Once the child turns 18, the child has full control of the account and can spend the money as they wish. The parent loses control. There is a maximum of $14,000 gift per year which can be made to an UGMA account, $28,000 for married couples.
What is a Coverdell IRA?
The Coverdell IRA works much like the Traditional IRA, the owner receives a tax deduction in the year of the contribution and the investments returns grow tax free as long as the distributions are used for qualified education expenses. The parent can change the beneficiary if the first child does not attend college or if the funds are not completely depleted when that child graduates. The maximum contribution is $2,000 per year.
Why is the 529 College Savings Plan so popular?
529 College Savings Plan is probably the best program available. Contributions are made with after tax dollars. There is not a tax deduction up front, but the investments earn tax free if distributions are used for qualifying higher education expenses. A parent is made the custodian and the child is the beneficiary. The parent/custodian maintains absolute control of the funds in the 529 plan. If the child never attends college or any form of higher education or if the funds are not depleted by the first child, the parent/custodian can change the beneficiary to another child, relative or non-relative. And the first beneficiary can receive nothing. The change of beneficiary does not cause a taxable event. If no family member goes to college, the parent / custodian may distribute all funds, pay a 10% penalty on the earnings plus their normal income tax rate. The maximum one time contribution is $70,000 per parent, $140,000 for married couples, for a five year period. Otherwise the maximum contributions falls back to the $14,000 annual gift limit per parent, $28,000 for married couples.
When should I start a college savings account?
As soon as your child is assigned a social security number. Sooner is always better.
The Callaway Approach
College Savings means different things to different people. For some, it means the accumulation of money for their children’s education. For others, it may be their child’s the key to a prosperous future. A superior education may present greater choices to fulfill their child’s dreams.
You probably have a mental picture of what you want child’s future to look like. Your child probably has a much different view. No matter what education or vocation they choose, by you funding the necessary savings to provide for their education you will pave your children’s way to a successful career.
Not everyone is able to earn a full scholarship nor obtain a grant. Loans for tuition have become an incredible burden to our young graduates. In fact, I have a friend in his mid 50’s who to this day has not paid off his student loans and I making less money than when he first graduated from college. Our job prospects have changed dramatically. The hard reality is, you will need money to help your children prepare for their careers. And special care will need to be made to weigh the cost versus the job prospects and ultimately your child’s future pay check
What is Portfolio Management?
Simply put, Portfolio Management is the disciplined process of increasing investment return while controlling and reducing risk for an investment portfolio.
What kind of investor is best suited for Portfolio Management Services?
Typically, Portfolio Management Services work best for clients who have at least $250,000 to invest. Although some Callaway clients who use these services are investing smaller amounts, we have to be careful since the transaction charges can diminish the rates of return.
In the past and in many current cases, larger investment account balances perform better. But now and with the new tools and services that we offer on this website, we can bring that number down from $250,000. We are always conscious of the costs to offer our services, technology has in some situations lowered the bar. Please complete the risk analysis and financial planning tools so that we can determine the best program for you.
I’d like to invest in the stock market, but I know the risk is high. Can Portfolio Management remove the risk?
Investment in the stock market always involves risk. But Portfolio Management helps reduce and control the risk through a buy-sell-hold decision model. And the risk is spread out over a diversified number of equities.
If a bear market comes along, can we get out?
You certainly can. In fact, our Active Portfolio Management System will often instruct us to convert to 100% cash under those circumstances. We consider cash an investment position. If the market is not moving up, I do not want to be in it.
Does Portfolio Management tell me when to buy or to sell?
Your portfolio manager at Callaway Financial Services monitors the system for signals to buy or sell. You do not initiate the trades, nor do you place the trades.
How will I know what is going on with my investments?
You will always be informed. We send out confirmations of all trades as they occur. You will receive detailed account statements quarterly, and if activity warrants, you will also receive monthly statements. And in today’s ever changing technology we offer electronic notification via email of all trades and statements and offer online access to view your account on demand. No action is required of you unless, of course, you have questions or feedback. If you need to talk to us, we are there for you.
How do I know if my portfolio is in balance?
The platform that we use automatically instructs Callaway Financial to re-balance the portfolio when it is time to reallocate. Based on the parameters you and your portfolio manager have worked out, our system will tell us which investments need to be reallocated, and by what percent.
How accessible are my funds?
There is no long term contract, so your funds are always accessible. Callaway Financial does not levy surrender charges or penalties when a client withdraws the funds. We are caretakers of you money until you need it.
How do I work with my portfolio manager?
The portfolio manager consults with you to determine your financial liquidity and your tolerance for risk and volatility. There is a review of your investment goals and the allocation of your current investments. Every client is different, every client has differing risk tolerances, and such a consultation is essential to providing the right portfolio and the right management for you. Once we have set up your portfolio, you simply allow the program to work for you.
If my investments are locked in a Variable Annuity or my 401(k), can you still manage my account?
Yes, we have many clients who allow us online access to their accounts; we can manage the accounts wherever they are held. We construct a portfolio based upon the available funds or sub-accounts held in your Variable Annuity or 401(k).
What is the difference between active and passive portfolio management?
Passive portfolio management takes into consideration your risk profile, your age, your retirement or savings goals and amount to invest. Once we have all of the information a portfolio of mutual funds for instance are selected. You stay invested in that portfolio for the long term unless your goals specify otherwise. On a quarterly basis the funds are reallocated based on the model portfolio to keep it in balance. With passive investing you buy and hold the securities and you do not sell the securities in the event of a market down turn. You only buy and sell a portion of your securities to reallocate and rebalance the portfolio. We offer this management process online through our portal on this website.
Active portfolio management also takes into consideration your risk profile, your age, your retirement or savings goals and amount to invest. A portfolio is selected but, rather than buy and hold the securities, based upon the parameters set, securities are bought and sold actively. In the event there is a market down turn, the portfolio can be placed one hundred percent in cash for safety. We use a different custodian to offer these services.
Both styles have their merits. Both styles have their advocates and their adversaries. There are years where passive management out performs active management. There are year where active management out performs passive management. You have the final decision as to how you want to invest your money. Once you have chosen your path, you need to stick with it for the long term to achieve success.
Disability Insurance is the least thought of insurance contract. In our opinion, it is in reality the most important. While life insurance insures your family or your business in the event you die, disability insurance takes care of you while you are laid up from an injury or a sickness. The odds of the average person succumbing to sickness or injury is far greater than that of dying. Disability insurance provides periodic income payments while you are unable to work. Your ability to work is your greatest asset.
I will never get hurt.
I have, I severely broke my knee while trimming trees at my house. I call it my stupid human trick. If you live an active life style or your job requires you to work in a physical manner and not behind a desk you are at risk of injury.
So how much were you paid while you were laid up with a broken knee?
Over the course of about eight months I received a little over $95,000 in compensation for my disability. This came from an individual disability policy and a business overhead policy.
What is a business overhead policy?
It is another form of disability insurance that covers expenses incurred in your business. It is basically insurance used to keep your business running while you are disabled.
I will never get seriously ill.
Ever heard of Cancer, Multiple Sclerosis, or even the Ebola virus. Are you absolutely sure you will not contract an air borne illness? We have millions of people traveling in and out of the United States yearly. Many people contract the latest version of the flu each year. There is no way we can say we will never get seriously ill.
How much can I be insured for?
It really depends on you vocation as to how much and to what degree you can be insured for. Generally two thirds of you annual income can be covered. In the insurance industry you are required to share in some of the loss. This helps prevent fraudulent claims.
Doesn’t my workers compensation at my job cover me?
Yes, it does . . . . to an extent. But only for a while, it will not take care of you for a long term disability. That is why many employers offer short term and long term disability and or indemnity insurance for their employees.
What is indemnity insurance?
Indemnity insurance covers a specific injury or illness and pays a set dollar amount for when that occurs. For instance if you are injured an indemnity policy may pay $750 for an emergency room visit.
I would like to tell a quick story. When I first started in the business I was fresh out of high school and had obtained my life insurance license. I was not a licensed securities broker yet. This was in 1981. I spent a lot of time around many insurance agents who were much older than me. This was also when Financial Planning was in its infancy. The common thought process at that time among insurance agents was to pass the series 6 and 22 securities license exams and then you could call yourself a financial planner. Once you were licensed up, you could then sell not only all insurance products, but you could now sell mutual funds, variable annuities and limited partnerships. With that you could call yourself a financial planner, but at the end of the day you were still a product salesman.
The transition from insurance agent to financial planner was fun to watch. One day an agent was just another insurance agent and once he / she passed the securities licensing exams that same agent was strutting around saying he was a financial planner. Even though I was very young, I could not let that slide by me, I would confront the same agent turned planner and call him out on the fact that nothing had really changed other than his product offering. He knew nothing about financial planning.
So what is a financial plan?
There are three views to what a financial plan is. The first is the Single purpose view. It can also be viewed as selling a product to fill a need. Some practitioners take the position that the simple selling of a financial product or service to a client in order to solve a single financial problem constitutes financial planning. This could range from a securities broker advising a customer to buy shares of common stock of a particular company. A banker who opens an IRA account. And a life insurance agent who sells a key man insurance policy to the owner of a small business.
There is also the Narrow-Focus view. Where practitioners embrace more than just solving a single financial problem of a client and must extend beyond the selling of a single financial product or service. They may emphasize that there are three basic categories of client financial needs, products and services. Which are comprised of insurance planning, tax planning, and investment planning.
Lastly, there is a Comprehensive-Focus View. Where financial planning must consider all aspects of the client’s financial position, which includes all of the client’s financial needs and objectives, and must utilize several integrated and coordinated planning strategies for fulfilling those needs and objectives.
Wow, which type of financial planning process would work for me?
In the end, it depends on how much assets do you own. How complicated are those assets. Who do you want to pass those assets to? If you are just beginning your career and starting your savings, you will probably fit in the single purpose plan. Where you starting funding your savings though your 401k plan at work, purchase a term life policy for you family in the event you die too soon, and or have an attorney draw up a simple will.
As you accumulate more savings and investments, if you start a business, and hopefully your annual income increases, you will work your way up the ladder to the narrow-focus plan and ultimately as you become much more successful you may need a comprehensive financial plan.
Where to I start and what do I expect?
There are six steps to the financial planning process.
- We gather the relevant information about you and your family.
- We analyze your present position.
- We develop a plan for achieving your objectives.
- We obtain your approval of the plan.
- We implement the plan.
- We review the performance of the plan periodically and revise the plan as needed.
The biggest sticking point is gathering all of your information. Many people never get beyond this first step. It takes time and it takes work.
The Callaway Approach
At Callaway we want to accommodate your needs. Not everyone needs a comprehensive financial plan. We will provide to you as simple or as complex a financial plan that you require. We have provided some tools to help you get started on this website. By gathering and entering your information we can begin the journey and develop the right plan to accommodate your needs.
We are ready and willing to listen to your unique circumstances and offer recommendations based on your total financial picture. The Callaway Approach places your current needs and your lifetime goals at the heart of the plan.
We look forward to working with you now. Please do not delay. Please do not tuck us away in the back of your mind to get to your financial planning sometime later. Procrastination is the greatest enemy of us all. The very old adage states “a failure to plan is a plan for failure”.
Through Callaway Financial Services, Inc. a registered securities Broker Dealer which is a member of FINRA and SIPC we provide a broad range of securities to our clients. If you are looking for a fixed income investment we can offer CDs, Treasury, Corporate or Municipal Bonds. Are you more growth oriented? We can transact your stock trades. Are you best served by purchasing diversified securities such as ETFs, mutual funds and unit trusts. Or if you are looking for tax deferred growth we can provide variable annuities. No matter what the need or desired investment, we have the appropriate securities available for you.
No matter what your age or phase in life, wise investment is an appropriate action to take. We all have to start somewhere. Many investment vehicles are available to suit all types of needs. We will work with you to make good investment choices.
Portfolio Management Services
We provide portfolio management services on a discretionary and non-discretionary basis. Our portfolio management program is designed to provide you with the appropriate asset allocation, diversification and risk characteristics consistent with prudent portfolio management.
On a discretionary basis, we design, revise and reallocate a custom portfolio for you. The investments are determined based upon your investment objectives, risk tolerance, net worth, net income, age investment time horizon, tax situation and other various suitability factors.
On a non-discretionary basis, we provide periodic recommendations to you and if such recommendations are approved, we will ensure that the authorized recommendations are carried out.
In performing our services, we are not required to verify any information received from you or from outside professionals you may have engaged. You are advised that it remains your responsibility to promptly notify us when there is any change in your financial situation and/or financial objectives for the purpose of reviewing, evaluating, or revising previous recommendations and/or services by us.
Financial Planning Services
We provide advice in the form of a standard financial plan based on your financial situation and stated financial goals and objectives. Our online tools will start you on your journey.
Our financial plans will address any or all of the following areas of concern:
Personal: Family records, budgeting, personal liability, estate information and financial goals.
Tax & Cash Flow: Budget analysis and planning for past, current and future years. We will illustrate the impact of various investments on your current income tax and future tax liability.
Death & Disability: Cash needs at death, income needs of surviving dependents, estate planning and disability income analysis.
Retirement: Analysis of your current strategies and investment plans to help you achieve your retirement goals.
Investments: Analysis of investment alternatives and their effect on your portfolio.
You can also receive investment advice on a more limited basis. This may include advice on only an isolated area(s) of concern such as estate planning, retirement planning, or any other specific topic. We provide specific consultation services regarding your current or projected financial position or other investment and financial concerns that you may have.
Pension Consulting Services
We will provide pension-consulting services to employee benefit plans, which include 401(k) plans and their fiduciaries based upon an analysis of the needs of the plan. In general these services may include an existing plan review, asset allocation advice, money management services, communication and education services where we will assist the plan sponsor in providing meaningful information regarding the retirement plan to its participants, investment performance monitoring, and/or ongoing consulting. We may have agreements with Third Party Administrators to provide these services as part of the Third Party Administrator’s agreement with the plan. In these instances, the Third Party Administrator may pay a portion of the fee charged to the plan to us for their services. In other instances, we may be introduced to a plan through a Third Party Administrator and will provide service directly to the plan.
Our primary investment strategy is a momentum based portfolio management system. We manage our portfolios actively and do not buy and hold for the long term. We look at cash as a position, a retreat to safety. Our goal is to advance our clients portfolio growth and protect their assets from major losses through a dynamic and disciplined process of buying and selling assets. We believe by using this process, and so far have proven, that we aggressively reduce risk and protect you wealth. By tracking the trades our system creates a self-assessment to allow us to determine if changes should be made to the portfolio to create better performance in the future. Our system also forces us to rebalance from time to time to keep the portfolio properly allocated. Our goal is to create capital growth and preservation through a dynamic management process. We have several managed portfolios that we find will fit most your goals and we also construct custom portfolios as needed.
It seems everybody’s investing these days, but I don’t know where to start. I’m afraid it’s too late.
It’s never too late. The best place to start is to ask a consultant to review your needs – and ask you a lot of questions. Everyone’s needs are different, and what suits your neighbor may be wrong for you.
Why do I need a broker or an advisor? I can handle my own investments on the internet.
That is true. Some people can and do handle their own investments, and do it very well. Expertise, confidence, desire to learn and research their own investment ideas play crucial parts in the success of the do-it-yourself investor. If you are one of the small percentage able to handle your own investments, more power to you, and good luck! On the other hand, if you are one of the large majority who prefers some help, you are the kind of person we are dedicated to serving. We have found that, even with 401(k) plans in which employees may choose their own investments, they usually ask us to choose their investments for them.
Why is it that most brokers sell mutual funds and variable annuities? Is that what is best for me?
Our industry calls these packaged products. They pay the investment broker the largest commission. Valid arguments can be made for their use. But there are just as many reasons the investor could do better buying the individual securities, a stock by itself, or a small portfolio of stocks or exchange traded funds – and save a pretty penny in commissions in doing so.
How are you different from every other advisor? Doesn’t everyone offer pretty much the same thing?
Yes, we do offer many of the same investments as other advisors. Which means that types of investments are not necessarily the differentiating factor. Experience is more important. Let us explain. Many new brokers have never been through a bear market, that is, one with a downward trend. This is where the rubber meets the road. Most investors can do well in a bull market. In a bear market, asset retention is the name of the game, and experience can make the difference. Also, since we are investment advisors and are able to operate independent of our broker dealer. We do not have production requirements and we offer general securities than packaged products such as mutual funds or variable annuities.
But won’t investing affect my tax liability?
If you are successful with your investments, yes. Be prepared to pay the price of increase tax liability to participate in the market. If you make more money, you have more money to pay taxes.
Can I lose money in the stock market? In the bond market? Aren’t there guarantees against that?
You most certainly can lose you money in both the stock and the bond market. There are no guarantees, and the risks are real. True, some investments such as savings accounts and CDs are insured by the FDIC, fixed annuities are guaranteed by the insurance company offering them, and Treasuries are backed by the full faith and credit of the United States of America, but there is a trade off on rates of return. In other words, the lower the risk, the less you can expect to gain (or lose). And it’s not illegal to lose money! Your advisor can only advise and guide. In the banking crisis of the late 80‘s, people lost money in what appeared to be the safest of investments; real estate, CD’s and their own businesses. Unfortunately, many of them had not diversified their investments, resulting in significant losses for a large group of investors.
This is why gauging your risk tolerance is so important. You must be truthful to your advisor and to yourself while answering the questions on the risk tolerance questionnaire.
It seems people are scared to death to invest anywhere these days! I do not know what to do!
We now live in a society of information overload, internet rumors, news hype and spin. Many people enjoy the adrenalin rush of fear. At Callaway, we seek realistic long term solutions and strive to not allow our clients to be caught up in the misinformation and the adrenalin rush.
The Callaway Approach
To provide responsible investment advice, Callaway Financial Services performs in-depth consultation individually with every client. Your investment goals, your tolerance for risk, your ideals and values – we consider all those factors when we design an investment program. We’ll help you understand the advantages and disadvantages of the various types of investments and show you how to make choices that minimize your risk for the greatest return. We’ll help you develop your investment portfolio from various options, including:
At Callaway we prefer to use individual securities. But based upon a client’s needs and total amount available to invest, we do use packaged products such as mutual funds and variable annuities.
The Callaway Approach involves investing as our clients invest. We do not recommend investments we are unwilling to invest in ourselves. We have discovered that this unique approach makes a difference and compels us to set a high standard of responsibility for our client’s resources. Contact us today to discuss an investment plan that supports your goals- and moves you closer to your dream.
Life Insurance can be defined as a transfer of risk from the individual to a group. Also there must exist a sharing of losses by the members of the group. The group is created by an insurance company’s pool of customers or insureds. An insurance contract is an agreement whereby the policy holder pays a stipulated premium to the insurance company in return for which the insurance company agrees to pay a defined amount of money if the person whose life is insured dies or suffers an illness or other disability during the term of the policy.
Life insurance is a bad investment. Why should I put my hard-earned money into it?
No one likes to pay for insurance. And no one should convince you that it’s an investment. Instead, it is a very versatile financial asset, purchased for benefits to be paid in the future. Remember, life insurance is for your peace of mind now – and for your loved ones financial security in the event of your untimely death. (Seldom does a beneficiary refuse a death benefit check!)
My investment should be all I need to care for my family when I die or if I’m disabled.
For those blessed with a long, healthy life, that can certainly be true. The catch is that people can die or become disabled before investments have matured to that level. Insurance purchased today takes care of your family’s needs – today and tomorrow.
My spouse can take care of herself (or himself). Besides, if I am gone, won’t family expenses be cut considerably?
Not really, many expenses continue as always, such as mortgage payments, children’s tuition, etc. And even if your spouse is capable of earning a good salary, other needs may require outside services to ease the burden of your absence for your family.
I know I need life insurance to care for my family in the event of my untimely death. But how much and what kind to I need?
That depends on your family’s individual needs. You should consider the amount of death benefit you want for them, compared to the level of premium you can afford. Are your family needs long term or short term? Are your children very young or in college? Are there other factors to consider? Please go to our life insurance needs analysis calculator to help you determine how much you need.
What if I develop a long term illness? Doesn’t my health insurance or Social Security cover long-term care?
Only when your personal assets are used up. In other words, when you are bankrupt. The gap between most people’s personal assets and long term care needs is often wide indeed, and the financial risk is huge. Long term care insurance and disability insurance preserve your personal assets and lessens the stress that long illnesses can place on finances and emotions.
Can’t I just grow old and become a burden to my children?
This is funny – until it really happens. Few people really want to make life difficult for loved ones. Careful preparation for illness and old age is one of the most thoughtful acts parents can perform for their children.
I’m insurance – poor.
You know, I’ve never been sure what that means, but in general it is a catch phrase that tells me that you do not want to face the possibility of sickness for injury, or the reality of your demise. And you will not take responsibility for your finances. In my wife’s words which may apply. “I’m far too pretty to worry about such things.”
The Callaway Approach
Although insurance itself should not be viewed as a true investment, a good insurance program is crucial to your total financial plan. No one wants to by insurance. But without adequate insurance coverage, you or your loved ones might very well have to sell significant assets just to pay expenses. Callaway Financial Services offers various types of insurance, including:
The Callaway Approach brings years of experience and a solution-oriented philosophy to your insurance needs. We are ready and willing to listen to your unique circumstances and offer recommendations based on your total financial picture. The Callaway Approach places your current needs and your lifetime goals at the heart of the plan.
If you have no insurance at all, or if you’ve experienced a major change in your life, it’s time to review your needs. Marriage, divorce, birth of a baby, death of a spouse, purchase of a new home, preparation for college, retirement, or other life events- any of these can outdate your current coverage. Contact us for a no-obligation review of your insurance program.
Planning for retirement encompasses many factors; no one strategy is suitable for every client. Each individual has different goals, income, debts, risk profiles, tax basis, dependents, charitable concerns, health issues and more. The individual differences mean that a comprehensive review and analysis is a must before any plan is put into action.
I have a retirement plan. Why would I change?
First of all, kudos for you for committing to participate in a plan.
Change, you may not need to.
But things do change. Your business or personal situation may have changed. New plans and nuances may be available that weren’t around when you began your plan. Your income may have changed and another plan may allow you greater contribution limits. And tax laws change, giving us a new rule-and-play book every year. If a few years have passed since you established your plan, it may be time to determine whether a better one is available.
I’m pretty young. I have lots of time. Besides, I have other family priorities right now and really can’t afford to put anything aside.
The younger you start, the better! A regular contribution of only $100 a month will create a meaningful base for retirement. Even when family demands on income are highest, most people can make a minute lifestyle adjustment to fund their future security.
I just can’t afford to put money aside for retirement.
Today we have more consumer goods available to us than our parents even imagined. Through the influences of advertising and a consumer culture, it is easy to misinterpret wants as needs. By placing controls on your discretionary spending, you would be surprised at what you really can afford. Set a budget. It works.
I am still stuck paying off my college debt. I will never be able to save any money.
If you read the last two answers to questions, you have my answer already. Cut other unnecessary expenses, live frugally, and put a small amount aside on a monthly basis.
I am not sure I’ll ever be able to retire. How can you help someone like me?
For you who think you will have to “die at your desk,” it’s not too late! Many people start saving for retirement later in their careers, and with the right kind of plan, can actually catch up. There’s even a bonus possible with bigger tax benefits. Work certainly helps us feel useful, but plan in such a way that working is a choice, not a trap.
I am afraid I will outlive my nest egg. How much should I set aside to retire comfortably?
The answer is different for everyone. Although conventional thinking has led us to believe our expenses will be lower after retirement, the truth is that few people lower their lifestyle standards. IN fact, the active retirement years can be quite expensive for those who travel and eat out more often, not to mention increased health care costs. Your tax rate will probably not be much different than it is now. So how much will you need? Use the retirement income calculator we have provided on our website to determine what’s right for you.
The Callaway Approach
Prosperity means different things to different people. For some, it means the accumulation of material comforts and amenities. For others, it means simply not having to depend upon someone else for their well-being. For most of us, it means making work an option, not a necessity, at some point in our lives.
You probably have a mental picture of what you want your retirement to look like. Perhaps it includes fishing, returning to school, starting a business, building your dream home, writing a book, or extended travel to places you have always wanted to see. That is great. But the reality is, you will need money to realize the dream. And your chances of winning the lottery are next to none. It is possible to realize your dreams through a regular retirement investment program.
One of these many plans detailed below can be designed to create the financial security you need to live out your dreams.
How do we know which plan is right for you? In a word – experience. We have designed plans for thousands of people and businesses. It has been a pleasure watching our clients succeed at this wonderful stage of life.
At Callaway Financial Services, Inc. preparing people for a secure and comfortable retirement is our mission. Having been in business since 1981, we are now coming full circle with many clients, clients we helped accumulate and invest, and who now are receiving monthly checks for their retirement. It is a fulfilling part of our work. Contact us today to discuss your retirement goals.