Top 10 Insider Financial Secrets for LA City Employees

As the economies of the world work towards returning to pre-pandemic numbers, many people are looking to improve their personal finances. We have gathered the most important nuggets of financial knowledge from the experts we shared with you in our monthly El Pueblo newsletters over the past year. Here are the top 10 financial secrets we trust to help you properly navigate your finances and save your money.

1. Tips to Saving Money Day-to-Day

With the COVID-19 pandemic still present, saving money has become a high priority for many. Here are 8 straightforward steps to terminate unnecessary spending in your day-to-day life: 

• Track your personal spendings in a journal;
• Ask for discounts and use coupons when shopping; 
• Make major purchases using credit cards that offer product assurance guarantees; 
• Make sure you’re not paying for an unnecessary service; 
• Contact your service providers to confirm that there are no other options that offer lower monthly payments; 
• Learn to say “no” to your kids and grandkids; 
• Set up checking accounts for your discretionary and non-discretionary spending; 
• Create a savings account in a separate bank so that it’s more difficult to transfer money.

2. How To Reach Your Retirement Dream 

We all know that there is no perfect formula that guarantees success. However, people who are successful in reaching their retirement goals share similar traits and qualities. Here are some traits you could work on in order to grow and succeed in the long run: 

• Be determined to overcome all the obstacles thrown your way. 
• Stay positive and look for the best in every situation. 
• Be creative by keeping an open mind to innovative and inventive ways to achieve your goals down the line.
• Show initiative and put in hard work to learn about different retirement plans and investment strategies.
• Connect yourself with professionals who can help you achieve your goals.
• Lastly, be flexible. Being successful means you need to be open to change and keep moving forward. 

Read the full article on page 4 of our 2020 May El Pueblo to reach your retirement dream.

3. What to Know About 401(k)s

Last year, there were some revisions to the 401(k). According to the IRS, as of January 1, 2020, “employees can make elective, pre-tax, or Roth contributions up to $19,500 to their own workplace retirement accounts.” Additionally, those who are of 50 years of age or older can “set aside an additional $6,500 in the form of pre-tax or Roth contributions within their workplace retirement accounts.” With these revisions, keep these three important things in mind: Contribute to your plan. Get extra credit. Have a defined retirement goal. This can help guarantee that you are maximizing your savings and meeting your retirement goals. Head to page 4 of our 2020 August El Pueblo to learn more.

4. Simplify Retirement Income Planning

Retirement planning is essential for most Americans. It could be a time to travel, spend time with loved ones, or carry out a personal passion. However, once the time comes to tap into your hard-earned savings, it can be an overwhelming experience. To better regulate your income needs for retirement for a more fruitful outcome, plan out your spendings and map out a financial plan so that you can strategically withdraw money to keep your savings in check. Think about investing. Keep a portion of your assets invested to help content with inflation and make your money last. Also, remember your taxes. It might be smart to diversify your accounts (tax-deferred, taxable, and tax-free accounts) depending on your personal situation. For more information on how to simplify retirement planning, read the full article on page 4 of our 2020 July El Pueblo.

5. Easy Ways to Get the Benefits You Deserve

Although millions of Americans receive Medicare benefits each year, many do not get the proper benefits for their personal health needs and finances. Here are three ways to help you get the benefits you deserve: 

• Know the options. Medicare Advantage plans provide supplementary programs that include vision, hearing, and dental benefits.
• Look over your drug coverage yearly. Be aware of changes in your prescription drug plans. Make sure your plan covers your medication. 
• Participate in a benefits check-up yearly. The NCOA offers a free eligibility check for an assortment of benefits like tax relief, food, housing, utility, and transportation discounts.

Discover more ways to get benefits by reading the full article on page 4 of our 2020 October El Pueblo.

6. Fatten Up Retirement Savings

For those whose retirement accounts are looking slim, here are three steps to take when saving for retirement to make the most out of your golden years. Firstly, keep it simple. Be sharp and careful about the stocks and funds you invest in. Look into boosting returns without assuming added risks. Secondly, utilize investment help. When managing your portfolio and retirement accounts, look into using Investment Guide tools. These tools can help you maximize your IRA of 401(k) growth. Lastly, save more. As your income increases, make sure to put your money in a savings account. Refrain from buying new and expensive items you may not need. Head to the full article on page 4 of our 2020 July El Pueblo for more information.

7. Invest in SmartWealth

SmartWealth is an educational operation that helps you learn how to retire safely by making informed investments. According to Jeffrey Sokol, creator of SmartWealth, “the key to financial security and success is education.” With SmartWealth, you can have access to a variety of online training lessons developed by industry experts to enhance your financial security. Additionally, SmartWealth provides personalized retirement planning services that cover life insurance, health care, and company funding. Head to BeneShield Financial to learn more.

8. Boost Your Retirement Income with Little-Known Benefits

Retirement is an event that should never be stress-inducing. Did you know that every year, $30 billion dollars in benefits go unclaimed because eligible retirees do not know about the programs that exist or how to apply? Below are some programs that are available to help you boost your retirement budget:

• The National Council on Aging (NCOA). This trusted nonprofit offers the latest information on healthcare, housing, utilities, and food benefit programs for free. 
• Medicare. Medicare has special programs in which you can save thousands of dollars on premiums, medications, deductibles, and copays.

 BenefitsCheckUp. BenefitsCheckUp supplies you with details on employment and volunteer programs, discounts for travel, tax relief, and aid for households and caregivers.

9. Strengthen Your Financial Protection Plan

Because of the COVID-19 pandemic, thousands of Americans reported that their financial situation is at risk. Learn the best ways to avoid risk for your financial security and protection: 

• Fund the Future. Get life insurance for yourself and your loved ones. Doing so can protect you from tax fluctuations, market volatility, and longevity.
• Protect Your Paycheck. Look into getting accident, illness, and disability coverage. This can help prevent you from paying steep out-of-pocket fees in the long run. 
• Add Protection to Your Portfolio. Diversify your portfolio with an annuity to guarantee that you have a stable flow of income throughout your retirement. 
• Re-imagine Your Retirement Plan. In-plan guaranteed income plans are an essential tool to safeguard your savings during periods of uncertainty. Saving money will come in handy in the long run. 
• Create a Cushion. Have action plans in place for the unexpected. It’s better to be ready with a strategy to cover your and your loved ones’ care. 

Gain more insight by reading the full article on page 4 of our 2020 November El Pueblo.

10. Make Money Moves for a Better 2021

As we navigate 2021, we should all take a step back to reassess our finances and decide what financial habits we should carry on into the years to come. Here are 4 simple tips to stay productive and positive for a better 2021: Firstly, don’t ignore your debt. Secondly, keep your emergency fund top-of-mind. Thirdly, differentiate your “needs” from “wants.” And lastly, take advantage of a mix of saving tools. Following these tips can help pave the way for a more financially fit year ahead. Read the full article on page 6 of our 2021 January El Pueblo to prep for a better 2021.