You can put away a nest egg even if you don’t make a lot of money, experts sayBy Deborah Jeanne SergeantMost financial advisers have tips for people with impressive portfolios and a lot of money.But for those who don’t have a lot of liquidity — people who are on a budget — it’s still possible to save for retirement.“Most people are not on a budget, so they don’t know they have extra money,” said Cynthia Scott financial adviser and owner of OMC Financial in DeWitt. “Many people live on credit cards and when you charge things, it doesn’t seem like you’re spending money. You can’t have liquidity for investments until you sit down and design a budget to see where you can cut down and reduce so you have liquidity for an IRA, Roth IRA or a private investment account.”By knowing how much money you have and how you spend it, it’s easier to set aside money to invest.“Most people who have impressive portfolios have always diligently known where their money went and made sure they saved along the way,” Scott said.But if you lack a time machine to go back to your 20s and start investing, there’s still hope, (more…)

Should you lower or increase your risk as you get older?By Deborah Jeanne SergeantCynthia Scott is a financial adviser and owner of OMC Financial in DeWitt.At what point should someone segue from high risk–high reward to lower risk–lower reward in their retirement investments?If you’re approaching retirement with a small nest egg, it may feel like it’s time to get as much as you can before you’re ready to retire. But that also places you at higher risk of losing money you will need in the next decade.“It is perfectly OK to transition to a more moderate risk level as one approaches retirement but some percentage of equities — stocks and stock-funding instruments like mutual funds and ETFs — should be a part of any long-term, 4-plus years, investment strategy, even after one retires,” said Randy L. Zeigler, certified private wealth adviser and certified financial planner with Ameriprise Financial Services in Oswego. “Unless one expects to have a short retirement period, the need to hedge inflation is especially important during an extended retirement period, when most pension incomes do not adjust for inflation.”   The traditional pattern of buying and keeping investments for decades worked a generation ago, but Terri Krueger, chartered (more…)

So how DO you build a ‘banking relationship’?By Deborah Jeanne SergeantTracy Chamberlain Higginbotham, found of Women TIES, LLC in Syracuse.A lot of small business advice encourages small business owners to build a relationship with a bank. But since there’s no business–bank dating app, how does that happen?It may not be as complicated as you think.As with finding a special someone, getting out and mingling with others in real time can often generate serendipitous encounters that can help you build a banking relationship.“Bankers are very involved in the communities in which they work and live,” said Marc Valerio, financial services partner at The Bonadio Group, with New York locations including Syracuse and Utica.“Whether it’s a local industry trade group or nonprofits and charitable organizations, it’s never hard to find networking opportunities to connect with local bankers. By being involved and active in their communities, small business owners and leaders are able to connect with these individuals and build longer term relationships.”Larger banks may not be as involved or accessible around town; however, Valerio said that local, community bank personnel are often involved on the local scene and for good reason.“Local community banks are strongly embedded in their communities and have a (more…)

Health insurance options for early retireesBy Jim MillerThere are several places early retirees can find health insurance coverage before Medicare kicks in, but the best option for you will depend on your income level, your health care needs and how long you’ll need coverage for. Here’s where to look.• Affordable Care Act: For most early retirees who aren’t yet eligible for Medicare, the Affordable Care Act (ACA) health insurance marketplace, also known as Obamacare, is the best option for getting comprehensive health coverage. And you won’t be denied coverage or charged extra for preexisting health conditions.And, if your income falls below the 400 percent poverty level after you retire — anything below $60,240 for a single or $81,760 for a couple in 2024 — you’ll also be eligible for a subsidy that will reduce your monthly premiums. The ACA also ensures that at least through 2025, households with incomes above that 400 percent poverty level will not have to pay more than 8.5 percent of their income for a benchmark policy.To see how much subsidy you may be eligible for, use Kaiser Family Foundation subsidy calculator at KFF.org/interactive/subsidy-calculator.To shop for ACA plans in your state, visit HealthCare.gov or call 800-318-2596. (more…)