The limitations of a fixed retirement income may be quickly felt unless preparation where made in advance, especially with a US Business Finance Corp Private Employer Benefit (PEB) Plan. Many self-employed and employed workers have used annuities to fund their PEB retirement funds to prepare for the day when they sell their business or retire. Planning now for that eventuality is the best way to make sure your retirement funds meet your economic needs. The following are a few steps to inoculate your retirement income from any economic surprises (inflation, the fund’s stock values).

The best way to plan for your retirement financial needs is to estimate your monthly budget and then give it a test run – live on that budget for a while. Two things become evident:

• How to plan your Private Employer Benefit Plan, 401(k) or IRA monthly withdrawals, and
• If you need to begin saving and investing more money now to live the lifestyle that gives you the greatest freedom and happiness.

Once you have figured your monthly budget, add in seasonal costs (holiday season, anniversaries) and then calculate what your annual needs will be.

Next, review each of your retirement accounts to see what the rules are regarding withdrawals, any penalties or taxes that may be expected, and what any mandatory distributions are. The rate at which you withdraw funds from each account determines how long the account will last.

While figuring your budget, keep in mind the past historical trends of inflation and the cost of services that may impact you most, such as healthcare costs. As articles in business magazines suggest, other economic factors which may cause your retirement funds to last longer is considering if moving to a locale where the cost of living is lower than where you currently reside. Many ex-patriot communities from Costa Rica to Thailand grew due to their excellent level of health care and the low cost of living.

Another economic variable is how well your investment stocks perform. From studies done by Standard & Poor’s analysis of the stock market’s overall performance over the past eighty years, a sustainable withdrawal would be between 5 and 6% per year. They estimated this on a somewhat conservative mix of investments with 60% in US stocks and 40% in Treasury bonds. If you have a percentage invested in overseas emerging markets your rate will most likely vary.

If stocks seem a poor retirement alternative, consider a Private Employer Benefit plan. Small business owners can contact USBFC advisers to see if your company’s budget and needs for insurance, tax liabilities, potential areas of tax deferment, retirement plans as well as the family’s education funding and estate planning needs would benefit from a Private Employer Benefit (PEB) plan. Your PEB retirement plan can be a way to get the most out of the equity you have built into your company. By creating a PEB retirement plan for you and your employees, the time you spend building your business rewards you doubly by also funding your retirement.

Once you have calculated your annual withdrawal rate from your annual budget, you can estimate what amount of additional funding is necessary to add more years to your retirement nest egg. Making budgetary adjustments now will afford more leeway in budget adjustments once you retire.

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Filed under: Business Cash Flow, Money Matters - Personal, National Economy

Merchants can now accept Visa debit cards in far reaching places such as Mauritius, Philippines and Australia due to a recent agreement between Visa and HSBC, one of the world’s largest banking and financial services companies. In the year ending June 2008, Visa debit cards represented over $2.1 trillion in financial transactions. US Business Finance Corp helps North American companies obtain Visa and MasterCard merchant accounts to partake in this large sector of financial payments.

US Business Finance Corp utilizes its network of Visa and MasterCard processing services contacts to help businesses, especially high risk businesses, obtain merchant accounts. Many processing services offer great rates to businesses with rock solid financial histories, but have no place in their portfolios for start-up businesses, Internet businesses and other enterprises categorized as “high risk”. Or the processors severely penalize the businesses with very high “hold backs” – your business’s sales revenue held in reserve by the financial institution as a security against returns and reversed charges. To add insult to injury, the rate for high risk accounts is often much higher than what a credit card processing service that specializes in high risk accounts charges.

When the current economic climate hinders new businesses from getting merchant accounts or short-term financial loans, US Business Finance Corp has a two pronged assistance package: help in obtaining a merchant credit card account at the best rates, and assistance in securing merchant cash advances to fill in the gaps of your cash flow.

When looking for the open door in the credit markets, be sure to contact the alternative financing experts at US Business Finance Corp and see how our “win-win” solutions can put you in the driver’s seat of your business.

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Filed under: Business Cash Advance, MasterCard/VISA, Money Matters - Personal

US Business Finance Corp’s annuity life insurance helps entrepreneurs provide for their families if their family’s main income producer is suddenly employed in other realms. The adage “Life insurance is sold, not bought” probably derives its reality from the idea that, “Everybody wants to go to heaven, but nobody wants to die” – or even think of dying. Life insurance is a coverage that causes customers to ponder their inevitable fate while the sun is still shining. With annuity life insurance, business owners can cover both the financial needs of their dependents’ all as well as preserve the wealth and equity they have in their company.

The following are points to keep in mind when reviewing annuity life insurance possibilities.

1. How much life insurance to purchase?
To determine the top amount, consider the liabilities that your heirs will be faced with, such as:

• Outstanding balance on home mortgage;
• Estate taxes and any uninsured medical expenses;
• Children’s education expenses;
• Any amount you wish to invest in an income fund for your family; or
• Balances on credit cards or installment loans.

One rule of thumb is 5 to 10 times your current annual income. Then measure the packages against your monthly budget, which may dictate an initial policy that is less than optimum, but will be a good safety valve.

2. What life insurance programs are available?

Whole Life is a policy that is an insurance policy with a savings aspect. As you pay insurance premiums, you not only maintain your coverage, but the premium gains cash value. As your policy gains value, you can borrow on that amount – possibly as much as 90%. The interest rate on these loans is usually very low.

Universal Life is like a whole life policy with an potential added benefit of higher earnings on the savings component. Universal life policies are also flexible in their face value depending on if their premiums are increased, decreased or deferred. The downside to this policy is that it includes higher fees (normally 5 to 7%) and they are tied to interest rates. In certain markets your fees could go up while your interest declines.

Variable Life usually has a fixed premium and the cash value of the policy is invested under the policyholder’s direction into bonds, stocks or money market funds. The cash value and death benefits of the policy fluctuates with the value of the underlying investments. Fees on these policies are higher than Universal Life, but the taxes on all the accrued capital gains or interest earnings are deferred.

Term Insurance is the least expensive insurance for individuals less than 50 years old. The policy is written for a specific term, normally between 1 to 10 years, with the ability to renew at the end of the term. A level term insurance policy secures the premium amount for up to 30 years. At each renewal the premiums will get more expensive. A variation of the Term Insurance is a Declining Balance Term that keeps the premium the same, but the face value of the policy declines. These are used sometimes as a mortgage insurance policy. Some term insurance policies can be converted to whole life later on.

3. Where should you get your annuity insurance?

Consult with US Business Finance Corp’s experts for an objective view of various plans (and comparing insurance versus other financial investment instruments) and your particular life insurance and retirement situation.

4. Make sure your heirs, or a trusted advisor, are aware of your financial plans, so when they need the information, they know where to find it and your well laid plans can be carried out.

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Filed under: Business Cash Advance