Financial Planner Shares Tips for Protecting Your Savings

You have insurance on your home, your car, your health.

How about your retirement plan?

"People have homeowners insurance to protect against fires and floods," notes independent financial planner Stephen Ng, founder and president of Stephen Ng Financial Group, (www.stephenngfg.com). "They buy insurance to replace their car if it gets wrecked and they buy health insurance to protect themselves from medical costs.

"But for many people, their biggest material asset is their retirement portfolio. When I look at a new client's portfolio and ask, 'Where's your insurance?' they look at me like I'm crazy!"

Insure your retirement fund by taking steps to safeguard at least a portion of it, Ng says. As you get closer to retiring, the amount you safeguard will be what you need to rely on for your retirement income.

"Your retirement income should be derived from guaranteed sources, such as Social Security benefits and your pension plan," says Ng, a licensed 3(21) fiduciary advisor, certified to advise companies about their 401(k) and other retirement plans. "It's the amount you need to pay the bills and do the other things you hope to do in retirement, so your retirement income needs to be a guaranteed source of income.

"Then you look for your 'play checks.' That's the money you don't absolutely have to have, so you can still try to grow it, and take risks with it, in the market."

Ng offers these tips for insuring your retirement plan:

•  Invest a portion of your portfolio in annuities.
Annuities are long-term investment options through insurance companies that guarantee you payments over a certain rate of time, which could be the rest of your life or the life of your spouse or other survivor. Note: The guarantee is subject to the financial strength and claims-paying ability of the issuing insurance company.

•  If you leave your job, quickly roll your employer-sponsored 401(k) into an IRA.
While 401(k)s are a great tool for saving, particularly if your employer is providing matching funds, if you were to die, the taxes your survivors would pay on your 401(k) would be much higher than on an IRA. That's because they would have to inherit the money in a lump sum - that could easily take 35 percent right off the top. The lump-sum rule does not apply to IRAs. While your spouse would have the option to inherit your 401(k) as an IRA, your children would not. So, take advantage of your employer-sponsored 401(k), but if you leave the company, convert to an IRA or ROTH IRA. You can also begin transferring your 401(k) funds to an IRA at age 59½.

•  Consider converting your IRA to a ROTH IRA.
For protection from future income tax rate increases, you should consider slowly converting your tax-deferred IRA funds into a ROTH IRA. Yes, you'll have to pay the taxes now on the money you transfer, but that will guarantee that withdrawals in your retirement are not taxed - even as the money grows. If you plan to leave at least part of your IRA to your children, they'll benefit from a fund that continues to grow tax-free.

About Stephen Ng

Stephen Ng is the founder and president of Stephen Ng Financial Group™ (www.stephenngfg.com). Since 1992, he has helped pre-retirees and retirees preserve and increase their wealth by, in part, helping them avoid common mistakes. He regularly holds financial management, retirement investing and insurance planning seminars at businesses, churches and non-profit organizations. Ng is a Chartered Life Underwriter, Chartered Financial Consultant and a Certified Estate Planner. He is also an Investment Advisor Representative with SagePoint Financial, Inc., member FINRA/SIPC.  He brings a national and international perspective to his financial advice, with professional and educational roots in Australia and Asia, and certifications in 19 states.

Labor, faith, and community activists are rallying at Outback Steakhouse restaurants in Davenport, Cedar Rapids, Clive, and Sioux City on Wednesday June 18 at 6:00pm to protest the latest case in what experts are calling a growing epidemic of "wage theft" - when workers are not paid some or all the wages they are legally owed for their labor. Last fall, Kossiwa Agbenowassi worked hard seven days per week cleaning an Outback Steakhouse in Coralville to support her young children - but the restaurant's cleaning contractor has refused to pay her for 49 days of her work, totaling more than $2,300 in wages she is legally owed.

Kossiwa was hired by Sandpiper Maintenance and Repair, which held cleaning contracts with at least two Outback Steakhouses in Iowa. Sandpiper is not licensed in the state of Iowa, has no legitimate business address, and has refused to return Kossiwa's calls. This spring, alone and unsure how to proceed, Kossiwa approached the Center for Worker Justice of Eastern Iowa (CWJ), an Iowa City-based group that helps low-wage workers understand and defend their civil and workplace rights. With CWJ's help, Kossiwa has filed complaints with state and federal agencies, and has enlisted the help of faith and labor activists who have also contacted the Outback and its contractor. A few weeks ago, Representative Art Staed called for an investigation into this case by the Iowa Attorney General, Iowa Workforce Development, and the U.S. Department of Labor. In response to growing community concern, the Outback has ended its use of this cleaning contractor...but Kossiwa has still not been paid. CWJ Director Misty Rebik says that while she welcomes the Outback's decision to end its contract with Sandpiper, it's not enough. "The Outback hired this contractor, and benefited from Kossiwa hard labor. She needs to be paid immediately, and the Outback has a responsibility to make sure that happens."

Wage theft is reaching epidemic proportions in low-wage workplaces, according to a 2012 report by the Iowa Policy Project, which estimates that low wage Iowa workers miss out on an estimated $600 million in wages each year. The Iowa legislature considered a bill this spring that would have strengthened penalties against employers who don't pay their workers; it passed the Senate, but the House failed to take action. The Center for Worker Justice of Eastern Iowa is sponsoring Wednesday's actions, with solidarity from labor federations in the Quad Cities, Des Moines, Cedar Rapids, Iowa City, and Sioux City.

Center for Worker Justice plans Rallies

 

State Representative Art Staed has asked Iowa Workforce Development, the U. S. Department of Labor Wage and Hour Division, and the Iowa Attorney General's office to initiate an investigation into potential wage theft by a cleaning contractor at Outback Steakhouse restaurants across Iowa. Both the U.S. DOL and the IWD have agreed to proceed with investigations.

In a letter dated May 27, 2014 to Iowa Workforce Development, Staed lays out the case of Kossiwa Agbenowassi, an immigrant from Togo Africa, who worked 49 consecutive days for Sandpiper Maintenance and Repair cleaning the Outback Steakhouse in Coralville without being paid. Staed, along with the Center for Worker Justice of Eastern Iowa (CWJ) claims Agbenowassi may have also been illegally misclassified as a subcontractor, allowing the cleaning vendor to avoid paying taxes into the state.

"We must take a stand against business models that abuse workers, break the law and perpetuate a cycle of injustice." Staed wrote. "For these reasons I formally request an immediate investigation into the wage practices of Sandpiper Maintenance and Repair and their wage and labor practices with Outback Steakhouse and other companies throughout Iowa." Staed's letter requested the investigation include all Outback Steakhouses in Iowa.

Staed has tried repeatedly to reach corporate representatives of Outback to resolve the matter and joined around 70 people associated with the Center for Worker Justice in delivering a letter to the Outback restaurant in Cedar Rapids addressed to Outback management.

The Center for Worker Justice (CWJ) is a coalition of immigrant, community, faith-based and labor organizations who have highlighted wage theft cases in Iowa. Agbenowassi originally contacted CWJ after her attempts to be paid were unsuccessful. CWJ contacted both Sandpiper and the Outback to resolve the issue prior to delivering the letter.

According to Misty Rebik, CWJ's executive director, further actions are planned against Outback Restaurants across the state if the issue isn't resolved. "People have a choice when it comes to dining out.

We want the public to know which restaurants are responsible employers and which establishments aren't.

We plan to hold Outback accountable to their shady business model that undermines good businesses and workers."

Rallies will be held June 18th in Des Moines, Cedar Rapids, Sioux City and Davenport.

Outback Steakhouse -  10901 University Ave, Clive, IA. 6 PM (515-265-1862 or mark@scifl.org)

Outback Steakhouse - 1235 East Kimberly Rd, Davenport. 6 PM (309-716-8622)

Outback Steakhouse - 3939 1^st Ave SE, Cedar Rapids. 6 PM - 319-339-9873 or 319-361-3212

Outback Steakhouse - 4500 Southern Hills Dr, Sioux City. 712-276-0473

Last fall, Kossiwa worked hard 7 days per week cleaning an Outback Steakhouse to support her young children. Now, months later, she is still owed over $2000 in wages by the Outback's unscrupulous cleaning contractor, who refuses to answer her calls.

This is a classic case of wage theft, when workers aren't paid the wages they are legally owed. Studies say it's a growing epidemic in Iowa, and across the country.  We can't let this happen in our state.

The Center for Worker Justice (CWJ), Representative Art Staed, and our allies in labor, faith, and community groups have repeatedly contacted the cleaning contractor and the Outback to resolve this problem. They are refusing to respond.

Join us for a statewide day of action. We're calling on the Outback to pay Kossiwa her hard-earned wages and end their contract with this cleaning contractor.

 

 

 

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Media Expert Shares Tips for Aging Workers

Boomers may want to recall one of the poets they grew up reading, Dylan Thomas, and his most famous poem, named for its first line, "Do not go gentle into that good night," a desperate appeal to resist the trappings of old age.

"As they retire, baby boomers need to stay true to their reputation for grand statements, and to mobilize their skill set in the business world," says media expert Steve Kayser, author of "The Greatest Words You've Never Heard," (www.stevekayser.com).

"In fact, many older Americans may have little choice but to adapt their mindset and survive longer in their careers if they want to maintain something resembling their current lifestyle during retirement."

Kayser lists a few trends that may incentivize aging workers to clock in for a few more years:

• The number of Americans 55 and older will almost double between now and 2030 - from 60 million today to 107.6 million, according to the United States Census Bureau. That will likely strain public safety nets such as Social Security and Medicare.

• American life expectancy is at an all-time high, and death rates are at an all-time low, which means some people will outlive their retirement savings.

• The global economic crisis has wiped out or severely affected millions of middle- and senior-aged people's life savings.

But with an increasingly competitive pool of professionals whose skill sets need to be regularly updated, how can boomers stay in the game?

Kayser quotes Alvin Toffler: "The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn."

He discusses his method for how older workers can maintain their value - by staying "R-E-L-E-V-A-N-T."

•  What it means to learn, unlearn and relearn. The ever-shifting sands of technology pose a special challenge to older workers. Younger professionals not only grew up working and entertaining themselves with screens, they also learned to adapt to technological leaps. A program you learn today may not be relevant in a few years, so keep an open and flexible mind.

•  Being R-E-L-E-V-A-N-T... Take this mnemonic device to heart: Risk, Experiment, Listen and Learn, Engage, Value, Attitude of gratitude, No to negativity, and Time. "This is an ongoing, evolving note to keep in your mind no matter your professional situation," Kayser says. "I've been around a lot of charismatic and effervescent folks in their 70s and 80s who are still successful and growing, both on a personal and business level. The acronym encompasses the ideas that seem to promote a proactive life."

•  Answer the question, "What resonates with you?" This is a deceptively deep question when you apply it to your life's trajectory. If life hasn't turned out to be what you expected it would 30 years ago, then it's time to recalibrate how you see yourself, especially if that's as a perpetual pre-retiree. If you're not sure of how you see yourself in today's setting, start with what the spiritual writer Joseph Campbell called the "moving power of your life," which can be sensed by the things that resonate within you. The things that resonate within you, such as an unusual book, may just be the compass you need to find your way.

About Steve Kayser

Steve Kayser is an award-winning writer, editor, publisher, former radio host and founder of Kayser Media. He has had the great fortune to interview and collaborate with some of the best minds in the business world, and his eclectic approach to public relations and marketing has been widely documented. He recently published "The Greatest Words You've Never Heart," (www.stevekayser.com).