About Jerry Maldonado

Jerry specializes in retirement, insurance and tax off-set strategies for professionals and small business owners. His focus is to help clients identify their definitions of legacy and financial security while simultaneously implementing innovative strategies to help make those financial goals a reality. For more information on his services, he can be reached at: JGM Consulting LLC [email protected] (951)858-0798 Lic#0H33733

The Steps to Living Confidently: How to Protect Yourself

Protection. We’re obsessed with it these days. We switch passwords, slather on sunscreen, install detectors and alarms, and wear our lucky socks on every flight. That’s all good. But are you taking meaningful steps to protect yourself financially as well? Safeguarding your most important possessions—life, health, ability to earn money, and the assets you’ve accumulated—is a big step toward increasing your financial and emotional confidence. Think of it like when you were younger, and your parents would insist on you layering up; “You can always take layers off, but you can’t put on what you don’t have with you.” By all means, change your online banking password every 90 days (you do that, right?), but also consider adding these five defensive layers to protect what matters most to you. LAYER 1: HEALTH INSURANCE* Healthcare is expensive, and we often need it when we least expect it. This can mean a mountain of medical bills. In fact, the inability to pay medical bills is the number one cause of personal bankruptcies.[1] No matter what the current or future state of healthcare holds, if your employer provides a health insurance option, sign up. Even if the cost of premiums makes you cringe, it’s better than incurring a crushing load of medical debt. If you’re self-employed, look for the best coverage you can afford. Also, consider a Health Savings Account (HSA). It’s a tax-advantaged way to save for medical emergencies. Even if you don’t use it today, it travels with you and can be used well into retirement. LAYER 2: LIFE INSURANCE In the event of your death, the proceeds will help your loved ones maintain their lifestyle, avoid financial hardship or bankruptcy, and pay essential bills such as rent, mortgage, health insurance, college tuition and loans. In addition, certain types of life insurance allow you to build cash value, which can be used during your life to fund things like mortgage payments, education, and loans. LAYER 3: DISABILITY INSURANCE If an accident or illness prevented you from working for an extended period, your financial well-being could take a serious hit. Disability insurance fills that gap by replacing a percentage of your lost income. It’s typically tax-free and you can even use the money to cover retirement contributions and student loan payments. And don’t fall for the myth that disability insurance is only for rare, catastrophic accidents. Many people rely on these policies to cover the income lost due to relatively common conditions such as heart disease and arthritis. LAYER 4: LONG TERM CARE INSURANCE* Seven out of 10 Americans age 65 or older will need long term care (LTC) at some point.[2] And it can be expensive: In 2016, the national average for nursing home care for a shared room was $225 per day.[3] Yet, only one-third of Americans age 40 or older have set aside money for this eventuality.[4] LTC insurance is one way to help reduce the cost burden. Caring for an aging, sick relative can wipe out a [...]

2018-06-12T16:52:55-07:00By |

The Steps to Living Confidently: How to Cut Your Expenses

“Cut spending.” “Slash expenses.” “Avoid shopping.” No wonder many of us haven’t learned to be good financial managers. The overwhelming advice about cutting your expenses makes it sound downright unappealing. The fact is, getting fit—whether fiscally or physically—should be enjoyable, or at least tolerable. Otherwise, you’ll never stick with it. Research tells us that having enough money to enjoy life is really important to seven out of 10 people.* (The remaining three out of 10 may be excused now.) Here, we’re proposing ways to retain more of your hard-earned cash by increasing (not reducing, cutting, or slashing) certain activities. It’s all gain, no pain. Here we go. Increase scrutiny of recurring monthly payments on your credit cards. You’re streaming more shows and watching less premium cable. And you haven’t set foot in the gym in six months. Automatic deductions for subscriptions and memberships that no longer fit your life can erode your liquidity, drip by drip. Cancel them and enjoy the savings each month.   Increase your digital savvy about money-saving apps. Today’s financial apps can turn your smartphone into a personal money manager. Digital budgeting tools help you track purchases so you spend less. Shopping apps show you offers, discounts, and coupons from retailers. There are even apps to find the lowest gas prices, the cheapest parking lots, and the nearest free Wi-Fi spots.   Increase potential returns on your investments by searching for low/no fee funds. Here’s a statistic that will curdle your milkshake: paying just 1% in fees could cost a young investor more than $590,000 in sacrificed returns over 40 years of saving.** Yikes! Time to pull out your portfolio—even if it’s relatively sparse—and work with a financial professional to make sure you’re not paying avoidable fees on your investments.   Increase your bulk buying habits. You can save considerable cash by buying in large quantities at discount warehouses. But too many of us only go when we’re throwing a party. Get in the habit of purchasing non-perishables—pet food, toothpaste, paper products, detergent—in bulk. Do it regularly and you’ll bulk up financially.   Be proactive about your health. Maintaining your body is like maintaining your car and helps to reduce the risk of expensive repairs, so take advantage of preventative medicine. Regular teeth cleanings. Flu shots. Eye exams. Screenings. Taking these steps may help you live longer and can reduce healthcare costs in retirement, when health costs tend to increase.   Increase your donations to charity. Donating to charities is a good idea, well, just because. But you may also qualify to deduct up to 50% of your adjusted gross income. Save money by doing good. Genius. Finally, increase your self-knowledge. By taking steps, technically steps 1 through 3 so far in this series, to gain financial insight, you’re well on your way toward improving your financial confidence. www.pacificadvisors.com/jerry_maldonado CA Insurance License #0H33733, Registered Representative Park Avenue Securities LLC (PAS). OSJ: 3585 Maple Street, Suite 140, Ventura, CA 93003, 909-399-1100. Securities products [...]

2018-05-30T12:55:53-07:00By |

The Steps to Living Confidently: How to Set Up a Budget

Get ready. We’re about to get deep. Have you ever thought about what means, means? Yes, you can think about it for a moment…back now? Good. As a noun, it can be two things. It can refer to an action or system by which a result is achieved, or it can refer to income. Now, taking it a layer deeper, you need a means (a system) to live within your means (income). See how that works? Well, that’s what we call a budget and we’re going to show you how to set one up for step two of our 12-part series on living with greater financial and emotional confidence. Sounds basic? Well, 2/3 of Americans claim that they are not good at living within their means, yet they prioritize building savings for long-term goals.* How do we close that gap? Let’s get back to the basics. ACKNOWLEDGE YOUR FUD First, you have to overcome the big three psychological barriers that keep many people from setting up a budget: Fear, uncertainty, and doubt (FUD). Fear what you’ll discover when you examine your finances Uncertainty about how to set up a budget Doubt whether you can stick to a budget TRACK YOUR INCOME AND EXPENSES Don’t guesstimate how much money you have coming in and going out each month. Write it down. Keep track of all your expenses and sources of income. Some experts suggest doing this for a few months to get a real picture of your financial situation and starting to track for just a month will help you get some clarity. Even easier, scan your bank and credit card statements to see where it’s all going. Add up the expenses and subtract them from your income. This will tell you, at the most basic level, whether you are operating in the black or red. BEGIN TO BUILD YOUR BUDGET A successful budget enables you to meet your financial obligations and grow your bank balances to achieve those magic life goals. A useful concept is the idea of paying yourself first. Make sure to pay your mortgage or rent, insurance, loans, and credit card bills to avoid penalties and increased rates. As part of the paying yourself first philosophy, also begin to build your emergency fund with regular contributions to protect yourself and anticipate unexpected costs, such as car repairs, medical bills, and emergencies. The rest of your monthly income can then be put toward regular living expenses. Next, record your actual income and spending, and spot the areas that need attention. If you need to cut expenses, it may be helpful to: Rethink your digs: We often think of housing as a non-negotiable, but the truth is, you have options on how much you’re spending here Examine current bills: See where the money is going and think of cutting out extras and finding cheaper alternatives Pay with cash: There’s something about the tactile quality of cash that makes it hard to part with Adjust your habits: [...]

2018-06-06T09:35:28-07:00By |

The Steps to Living Confidently: Define Your Life Goals

Are you looking for a fresh start or a “new you”? Perhaps a slimmer you? Or a stronger you? Or a you that can finally speak Italian, make perfect risotto, and restore a farmhouse in Tuscany? Well, we say any kind of transformation is wonderful, but think about applying your energy to something that is probably causing you more stress than you realize. YOUR FINANCIAL PICTURE Guardian recently surveyed thousands of Americans, and nearly 80 percent report being seriously stressed out. And since overall well-being is directly linked to financial well-being, much of that angst is rooted in financial concerns. In fact, nearly two-thirds of us say we are pretty bad at living within our means. The amazing thing is, you can change that! This article kicks off a monthly series on how you can—calmly, deliberately, and purposefully—move from feeling concerned to feeling confident in managing your finances. This series will build, step by step, from easy to more challenging, until you have implemented each point that may apply to your personal situation and better secure your own financial well-being. DEFINE YOUR LIFE GOALS Wait! Don’t go away. This is more fun than it sounds. We all know that people who write down their goals have a greater chance of success. And we hate those people, don’t we? But listen up, they sleep like babies, while the rest of us lie awake at 3:00 a.m. obsessing about credit cards. As the Rolling Stones once said: [to know] what you want [is the first step to having the financial resources to] get what you need. Or something like that. In any case, do you want to make more money? Retire early? Change careers? Start a family? Open a business? It’s time to figure out THE REALLY IMPORTANT THINGS IN YOUR LIFE because they are the starting point for making smarter financial decisions (And, bonus, they’re good to know, just because). Here are some tips on identifying your goals: LEAD WITH YOUR HEART, NOT YOUR HEAD This is serious stuff, but don’t let your intellect overrule your true feelings. The more honest you are about setting goals that are meaningful to you, the more motivated you’ll be to achieve them. BE SMART ABOUT IT Psychologists tell us success is more likely when goals are SMART—meaning they are specific, measurable, achievable, relevant, and time-bound. Recognizing that you want to get out of debt is a good start. But creating a goal of paying off one credit card (specific, measurable, achievable) over the next 12 months (time-bound) to begin saving for your children’s college fund (relevant) is even better. THINK LONG AND SHORT Those who are most confident about their finances see life as a long road trip. As you identify goals, balance those in the near-term (new home) with those further down the road (vacation of a lifetime, retirement), and make sure you have security to weather unexpected storms (emergency fund, insurance) along the way. TALK WITH AN [...]

2018-06-06T09:38:45-07:00By |

Tips for Making Your Money Stretch in Retirement

Retirement has many rewards, but perhaps the most important is the ability to live off the savings you have amassed throughout your working years. According to the U.S. Department of Labor, the average American is spending 20 years in retirement. In many cases, your retirement may be even longer. Are you confident that you have saved enough to cover your entire retirement? In 2014, the Employee Benefits Research Institute (EBRI) reported that only 29% of workers are very confident they have enough money to take care of basic expenses in retirement. That’s down from 38% twenty years ago. You can boost your confidence with smart strategies to stretch your money in retirement. Here are three tips to get you started. TIP #1: CATCH UP Before you retire, take advantage of ‘catch up’ provisions made available by the IRS. If you’re age 50 or older, you may make an additional contribution of up to $6,000 to your 401(k) retirement plan in 2016. If you have a traditional or Roth IRA, you can make catch up contributions of up to $1,000 in 2015 and 2016. By using these provisions to your advantage, you can add extra padding to your retirement nest egg. TIP #2: DOWNSIZE Your home is probably one of your greatest assets. According to EBRI Notes (July 2012), 8 in 10 Americans report living in houses they own at the age of 65. However, after retirement, you may not need the same amount of space that you did while working and raising a family. According to the Social Security Administration’s 2013 report Expenditures of the Aged, at 35% housing is the largest component of expenditures for those aged 65 or older. Whether you own or rent your home, reducing your housing costs can help you stretch your retirement savings or free up funds for other activities such as travel. In addition to downsizing, you may also consider relocating to a community with a low cost of living, or one that offers other conveniences such as easy access to healthcare or amenities within walking distance. TIP #3: DELAY By simply delaying the start of your retirement, you create valuable advantages. Not only do you extend your potential income earning ability, you also gain additional time to save, and to watch your savings grow. If you delay your retirement, you’re not alone. According to a 2013 study by the Associated Press-NORC Center for Public Affairs, nearly half of workers plan to retire at an age later than what they expected when they were 40. Many cite financial and health-related needs as the most important factors influencing this decision. Moreover, if you choose to work part time throughout your retirement, you’re in the majority. According to the same survey, 82% of Americans aged 50 or older report that they are likely or very likely to do some work for pay throughout retirement. Another strategy to stretch your retirement savings is to delay when you begin receiving Social Security [...]

2018-06-06T09:33:42-07:00By |

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