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In the last decade, the idea of sharing — and monetizing — the things you’re not using has gained traction at lightning speed, and that’s thanks in large part to technology. It seems like everyone has some sort of side-hustle these days. Have an empty guest room? Airbnb can help you rent it out. Got a car and a few extra hours on the weekend? Uber and Lyft are happy to match you up with a rider.
When you combine this rise in new money-making opportunities with the fact that the average car spends 95 percent of its life sitting in a parking spot, it’s not surprising that app-based marketplaces like Getaround and Turo have cropped up to offer car owners a new way to make a few dollars on the side. These services are referred to as peer-to-peer (P2P) car-sharing, and they’re posing some serious competition to the traditional car rental model.
If you’re looking to take full advantage of the sharing economy by listing your car on a rental marketplace, there are a few things you should think about first.
How Do I Choose a Marketplace?
Some P2P apps advertise that listing your car could earn you up to $10,000 a year. Others say you can make $1,000 per month. So how do you decide which marketplace you should list your car in, and how do you sign up?
First, you’ll need to figure out which services operate in your area — currently, the biggest P2P marketplaces are concentrated in major urban centers. Then, simply go online and enter your vehicle details and personal info to get an estimated hourly rental rate for your vehicle.
Rates vary depending on the age, make and model of your car, so check around to see who will pay you the most for renting out your ride. Keep in mind that some services also adjust rates on a daily basis (similar to a rental car agency), so the amount you make may depend on when your vehicle is available.
Finally, you should consider how much insurance each provider offers to protect your vehicle in case a renter has an accident — which brings us to our next point.
How DoesInsurance Work?
Most of the well-known P2P car rental marketplaces include varying levels of insurance to protect your car and your liability when your car is rented out. Before you list your car on one of these services, do your research to find out which one provides the best coverage.
Keep in mind that your personal car insurance policy will not provide any coverage while your car is being rented out. That means they won’t pay for any injuries or damage the renters cause, whether to your car or anyone else. What’s more, if your car is parked and waiting for a renter to pick it up, your personal coverage may not cover you if someone hits it, or if it’s stolen.
Even more importantly, before you go all in on P2P marketplace rentals, you should check with your current insurer to see whether doing so will affect your existing policy. They may have concerns that the extra wear and tear on your car could increase your accident risk, or that your P2P insurance may not provide sufficient coverage and you may seek coverage from them. There are many factors that could affect your level of risk, so checking with your insurer before listing your car is a must.
Who Pays for Gas?
This one’s actually a little less complicated. If you aren’t driving, you shouldn’t be paying for gas. Typically, the renter is responsible for returning the car to you at the same fuel level they drove away with. But pro tip: If you fill it up to the top before they rent, it’s a little easier to tell if they did their part.
Before someone rents your car, be sure to take a photo of your fuel gauge. That way, if they return your car without replacing your gas, you’ll be able to file a dispute with the sharing service, who will typically charge the renter a fee for the gas (and the inconvenience).
Can I Control Who I Rent to?
As the owner, who you rent your car to is your choice. The most popular apps will allow the renter to put in a request for a date, time and duration that they’d like to rent your car. Then it’s up to you whether you’d like to rent to them or not. You don’t have to rent to anyone you don’t want to.
The moral of the story is, if you have a car that spends most of its time sitting in your garage or parked in front of your office, putting it to work for you could help you make a little extra income on the side … and who doesn’t like that? Just make sure to do some research beforehand so you’re not met with any surprises.
Eric Madia is Vice President of Product Design at Esurance, where he is responsible for designing the company’s personal lines products. Eric has 23 years of experience in the industry. He writes on all things car insurance, including what to know before signing up for a car-sharing service. Learn more about auo insurance from Esurance at Esurance.com.
This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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How Often Should You Rebalance Your Portfolio? – SmartAsset
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Choosing the right asset allocation matters for achieving your investment goals. But it isn’t just set-it-and-forget-it. Rebalancing your portfolio from time to time is necessary to ensure that you have the right mix of investments, based on your goals and risk tolerance. The question is, when do you need to rebalance? Knowing how often to rebalance portfolio allocation is a basic – yet important – investing lesson to learn. A financial advisor can offer valuable insights as you rebalance your portfolio.
What Is Portfolio Rebalancing and Why Is It Important?
Portfolio rebalancing simply means adjusting the weightings of different assets in your portfolio. This is achieved by buying and/or selling securities to bring your asset allocation back in line with your goals.
For example, say you prefer to hold 80% of your investments in stocks and 20% in bonds. But higher-than-expected returns have pushed the stock portion of your portfolio to 90%. To get back to your ideal 80/20 mix, you’d have to sell off some of your stocks or purchase more bonds to act as a counterweight.
Portfolio rebalancing matters for maintaining the appropriate level of risk in your portfolio. Say you’re more risk-averse and prefer to hold a higher proportion of bonds. If you don’t rebalance, you could expose yourself to more risk than you’re comfortable with if the stock portion of your portfolio grows.
On the other hand, failing to rebalance could mean you’re not taking enough risk to achieve your investment goals. You could end up with too much of your money in bonds or fixed-income investments, which could limit your portfolio’s growth potential.
Rebalancing regularly can help with maintaining a diversified portfolio. It’s also an opportunity to take a closer look at what you own to decide if those investments still match up with your needs and objectives.
How Often to Rebalance Portfolio?
Deciding how often to rebalance your portfolio is entirely a personal decision. You could do it monthly, quarterly, biannually or once a year. The advantage of using a time-based approach is that it’s easier to get into a habit of rebalancing, so you don’t forget to do it. And while you’re rebalancing, you may tackle other tasks as well, such as reviewing expense ratios for the mutual funds or exchange-traded funds you hold or commissions you’re paying to your brokerage.
You can also choose to rebalance once your asset allocation reaches a specific tipping point. So again, say you’re focused on investing 80% of your portfolio in stocks and 20% in bonds. You may set a rule for yourself to rebalance any time the stock portion of your portfolio grows to 85%. This is a fairly standard rule of thumb to follow, though you may choose a different percentage instead. For example, you may decide to rebalance if your asset allocation changes by 10% or 15%.
The advantage of rebalancing this way is that it allows you to avoid having your portfolio allocation be off-kilter for extended periods of time. If you were to only rebalance once a year, for example, it’s possible that you could go most or all of the year with an asset allocation that doesn’t match up to your goals or risk tolerance.
The key with either approach is to avoid overdoing it. Say you follow a set calendar for rebalancing quarterly. Rebalancing just because it’s time to rebalance may be counterproductive if your asset allocation hasn’t shifted course in a major way. Likewise, rebalancing once your asset allocation moves beyond a set percentage range could be problematic if it means paying more fees to your brokerage.
While many brokerages have adopted $0 commission trades for U.S. stocks and ETFs, fees may still apply to trade mutual funds or bonds. So even though rebalancing could help you to keep your portfolio in line, it may mean paying higher fees.
How to Rebalance Your Portfolio
If you want to rebalance your portfolio, the first step is to take an inventory of your current holdings. Specifically, you’ll want to break down what percentage of your portfolio is dedicated to different asset classes, i.e. stocks, bonds, cash and cash equivalents, real estate, etc. You can also drill down even further by looking at your allocation to domestic versus international investments and by market sector.
So if 80% of your portfolio is made up of stocks, for example, consider:
How much of that is U.S. stocks
How much is international stocks
Which stock sectors you own (i.e. healthcare, financials, utilities, etc.)
Whether you own more large-caps, mid-caps or small-caps
How much of your investments are in growth vs. value stocks
Digging deeper into your holdings can help you quantify which type of investments you need and want to have in your portfolio, based on your preferred investing strategy. If you set your asset allocation by age, for example, then your ideal allocation should reflect the level of risk that a person in your age range would typically be comfortable with.
Once you know what you own and what your ideal asset allocation should be, you can rebalance by buying or selling securities as needed. You may also want to consider asset location along with allocation. Asset location means where you keep your investments.
So you might have money invested in a taxable brokerage account, a 401(k) plan at work and an individual retirement account (IRA). All three have different tax profiles and all three may offer a different range of investments or charge different fees. When rebalancing, it’s important to consider the entirety of your portfolio across all investment accounts to decide where to keep which assets.
For example, your 401(k) may include target-date funds. These funds base their asset allocation on your target retirement date, then rebalance themselves automatically as you get nearer to that date. If the majority of your 401(k) is invested in a target-date fund then you may not need to do much to rebalance. But you’d still want to look at the fund’s underlying holdings and compare them to the funds you hold in your IRA or brokerage account. This way, you can avoid becoming accidentally overweighted.
Also, consider whether it makes sense to let an algorithm rebalance for you if you’re investing with a robo-advisor. Some, though not all, robo-advisory platforms include automatic rebalancing as an account feature. The pro is that you don’t have to do any heavy lifting to rebalance. The con, of course, is that rebalancing decisions are guided by an algorithm rather than a human perspective. So that’s one reason you may still want to talk to a financial advisor about the right way to rebalance.
The Bottom Line
There’s no single answer for how often to rebalance a portfolio. At a minimum, it can be helpful to review your portfolio and rebalance as needed at least once a year. The important thing when deciding how often to rebalance is to choose a frequency that fits your overall investing style.
Tips for Investing
If you’re considering a robo-advisor for automatic rebalancing, remember to weigh the costs as well as the other features that may be included. Robo-advisors typically charge an annual management fee which may or may not be tiered based on your account balance. So you might pay a management fee of 0.25% or 0.30%, which is lower than the 1% typically charged by human advisors. But think about what you’re getting in return, aside from automatic rebalancing. Is tax-loss harvesting included? Do you have the opportunity to speak to a human advisor if needed? Asking those kinds of questions can help you decide if a robo-advisor is right for you.
Consider talking to a financial advisor about the ins and outs of portfolio rebalancing and why it’s important. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
Ask most people this question, and they’ll break out a financial calculator, type in a bunch of numbers, and spit out a projected dollar figure for some future date.
But that’s not really what I’m getting at. Instead, I ask this question in order to challenge you to think about your Roth IRA differently, because it presents you with some unique opportunities relative to traditional retirement accounts.
In order to illustrate, let’s review the conventional wisdom of the past several decades in regard to financial planning.
The Traditional Financial Advice
Over the years, the boilerplate advice from most financial planners goes something like this:
“Year after year, invest 15% of your annual pre-tax income in a retirement account (401k, IRA, Roth IRA, 403b, or other). Then in retirement, make annual systematic withdrawals of 4% to 6%.”
This isn’t necessarily bad advice, but is it the best advice? Under such a scenario, your money will last a few decades, and hopefully you won’t outlive it.
But what if you took this advice and retired in early 2008 – right before the market tanked?
Even if you invested everything in bonds prior to retirement, are you certain inflation won’t prematurely deplete your nest egg?
Maybe it’s time to reassess your retirement plan, and a self-directed Roth IRA presents you with a unique opportunity.
Roth IRA vs. 401k & Traditional IRA
A Roth IRA holds two distinct advantages over a 401k or Traditional IRA:
The first difference is self-explanatory, but the latter is often overlooked. With a 401k or Traditional IRA, you’re required to start making annual withdrawals at age 70 ½. The amount you’re required to withdraw varies depending on your life expectancy.
But what if you don’t need to make withdrawals? Or what if you don’t need to withdraw as much as the IRS requires?
It doesn’t matter. You’re still forced to make withdrawals.
In order to determine how much you must withdraw after age 70 ½, divide your account balance as of December 31st of the previous year by the number associated with your age in the IRS Life Expectancy Tables.
For instance, at age 71 that number is 16.3 – which translates into a 6.13% minimum withdrawal.
At age 72, it’s 15.5 – which equals a 6.45% minimum withdrawal.
By age 80, you’re looking at a number of 10.2, which means a minimum 9.8% withdrawal – regardless of whether or not you need or want to withdraw your money!
These forced withdrawals eat away at your principal, especially if (when) the market experiences a major downturn.
And if you think investing in fixed income investments will protect you from market volatility, know that one trade-off is you won’t benefit from the historical inflation-beating returns of the stock market.
At this point, the true value of your Roth IRA becomes apparent. Why? Because it allows you to invest for cash flow instead of asset appreciation.
Cash Flow vs. Asset Appreciation
When it comes time to withdraw your funds, which is a more consistent and reliable source of cash in your pocket – stock prices or dividends?
Looking at the past 40 years of historical S&P 500 returns (1972 to 2011), the index posted an annual return of 11.58% with 25 of those years experiencing a gain of greater than 6%, while 15 were below 6%.
Over the same time period, dividends increased year over year in 37 of the 40 years, posting an average annual increase of 10.89%.
Conventional wisdom advises us to invest for capital appreciation and then sell off our assets in retirement. But why sell off your assets? If you do, eventually you won’t have any assets left.
Fortunately, an alternative option does exist. It’s called “investing for cash flow”.
Unlike traditional retirement accounts, your Roth IRA allows you to invest solely for cash flow, withdrawing only (if you so choose) the annual cash generated by your dividends. Meanwhile, your principal remains intact, decreasing the likelihood you’ll run out of money in retirement. Even if the market declines 40%, shrinking your principal, you’re focused on dividends only – and you can withdraw these tax-free! In the meantime, market fluctuations don’t matter. Why?
Because if you invest for cash flow, you don’t care what the overall market does. What matters is the cash dividend, not the current price of stocks. And dividends are remarkably consistent and resilient from year to year.
Let’s take 2009 as an example. That’s the most recent of only 3 years in the past 40 in which the dividend payout on the S&P 500 decreased year over year. That year, dividends declined 20% from the previous year. But that stands in stark contrast to a 37% decline for the overall stock index.
So if you had a $1 million retirement account with a 3% dividend yield, you would go from $30,000 per year in dividends to $24,000. But if you relied on stock price appreciation for retirement, your $1 million balance declined to $630,000, and you would have to withdraw a minimum 6.13% from your account. This would deplete your principal by $14,619 (or 2.3%) when accounting for the $24,000 in dividends. And this is under a best case scenario. As you age, your required annual minimum withdrawal will increase in both percentage and dollar terms.
Conclusion
Roth IRA calculators give you one option for projecting the future value of your Roth IRA. But more important than the size of your retirement nest egg when you quit working is how you plan to utilize it.
Instead of selling off your assets during retirement, consider leaving the principal untouched for the rest of your life and living off of the dividends.
Then you can withdraw those dividends tax-free each year while your principal continues to grow (unlike your 401k or Traditional IRA which force you to start making withdrawals at age 70 ½).
Meanwhile, your dividends grow at an annual pace faster than inflation – meaning your standard of living increases and you don’t have to worry about outliving your money. And that’s the true future value of your Roth IRA!
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Most of us have heard it before — newly released data on the net worth of CEOs well into the millions, or even billions.
Take Jeff Bezos for example, whose net worth is estimated to be roughly $144 billion as of October 2022. As you may suspect, that’s certainly not representative of most Americans’ wealth. In fact, the average net worth by age in the United States is $746,820, though many argue that median net worth by age — which is $121,760 — paints a more useful picture.
So what is net worth? Net worth is a calculation used to gauge your overall financial health, but it’s a benchmark that tends to uncover more questions than answers. What does net worth mean, what factors determine its value, and what is a “good” net worth by age, anyway?
Here, we’ll unpack the average net worth by age in America, learn how to calculate your net worth, and reveal how to increase net worth so that you can set — and achieve — your personal finance goals.
Key Findings
The average net worth by age in America is $746,820.
The median net worth by age in America is $121,760.
Net worth is calculated by subtracting the total value of your debts from the total value of your assets.
Average Net Worth by Age
Age
Average Net Worth (Mean)
Younger than 35
$76,340
35–44
$437,770
45–54
$833,790
55–64
$1,176,520
65–74
$1,215,920
75 or Older
$958,450
Source: Federal Reserve
The average net worth by age in America is $746,820, according to the Federal Reserve’s 2020 Survey of Consumer Finances, which includes data from 2016 to 2019.
It may come as no surprise to learn that older Americans tend to have a greater average net worth than younger Americans. After all, their financial assets have had years — if not decades — to appreciate in value. Average net worth by age peaks somewhere between 65 and 74 years. This is also roughly the age when most Americans retire. At age 75 and older, when sources of income tend to be fixed, average net worth begins to decrease.
Median Net Worth By Age
Age
Median Net Worth
Younger than 35
$14,000
35–44
$91,110
45–54
$168,800
55–64
$213,150
65–74
$266,070
75 or Older
$254,900
Source: Federal Reserve
The median net worth by age in America is $121,760, approximately a 17 percent increase from the previous survey conducted in 2016. The median — or middle number in a set of data — is the halfway point between the largest and smallest net worth.
Median values tend to be less affected by outlier data points — like the net worth of billionaires — than averages. For that reason, some argue that median net worth offers a clearer picture of and benchmark for wealth in America.
What Does Net Worth Mean?
What is net worth, and what does it mean? Your net worth is your total assets minus your liabilities. In simple terms, it’s the cost of everything you own after subtracting your debts.
It can be dangerous to measure your financial health solely by what you earn, especially since you might not save or use your income towards investments. Your net worth will keep you in check, allowing you to be cognizant of your worth and how much you should be saving until you reach retirement.
What Net Worth is Considered “Rich?”
You may wonder what net worth qualifies as “wealthy” in America — and how far off you are. According to a 2022 survey, Americans consider an average net worth of $2.2 million to be “wealthy.” However, perception of wealth may look very different at the state and city levels, as average household income and cost of living tend to fluctuate dramatically based on geographic location.
For example, people who live in Denver say that an average net worth of $2.2 million is enough to be considered wealthy, whereas people in San Francisco say that you’d need more than double that amount —- an average net worth of $5.1 million.
How to Calculate Net Worth
1. Add Up Your Assets
The first step to calculating your net worth is adding up the total value of your assets. This includes the current market value of your investment accounts, retirement savings, home(s), vehicle(s), items of significant value (art, jewelry, furniture, etc.), and the cash value of your checking, savings accounts, and insurance policies.
2. Add Up Your Debts
Next, you’ll want to add up the total value of any debts you owe. This includes your mortgage(s), car loan(s), student loans, personal loans, credit card debt, and any other form of debt.
3. Subtract Your Debts From Your Assets
Once you subtract your debts from your assets, the resulting value is considered your personal net worth. Your total could result in a positive net worth or a negative net worth.
Don’t panic if you find yourself in the negative net worth category. It’s normal for young professionals fresh out of high school or college to have low or negative net worth, especially if they’re still paying down student loans, recently purchased a home, or are just starting a plan to build their savings.
What is a “Good” Net Worth By Age?
Your age plays a significant role in calculating your net worth, especially as you get closer to retirement age. To help you understand how you stack up, we took a look at the average and median net worth of every age group to reveal what you should aim for at each milestone.
Average Net Worth by Age 35
Your 30s should be mostly devoted to laying your financial foundation so that you can achieve your desired net worth by retirement. At this age, it’s important to set a budget for you and your family, and stick to it.
The Benchmark
The average net worth for families in the U.S. under the age of 35 is $76,340, where the median net worth is $14,000; a helpful reminder that the average can be easily distorted by a small percentage of the wealthiest Americans. With the average student loan debt at about $35,000 per person, it’s no wonder why people might have a lower net worth in their 30s.
How to Increase Net Worth
Your 30s are a perfect time to set yourself up for a bright financial future — even if your net worth is still relatively low. If you haven’t started already, consider contributing to your retirement at this point, especially if your employer offers a company match to your 401(k) or 403(b).
A goal to aim for is to have the equivalent of half your annual salary saved in your retirement account by the time you’re 30, but don’t worry if you’re not there yet. At this time in your life, it’s most common to focus on making progress on paying back your debt, which can lead you towards financial security.
Average Net Worth by Age 45
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The Benchmark
The average net worth for American families ages 35 to 44 is $437,770, and the median net worth is $91,110. This demonstrates a natural progression as Americans begin to spend time in their careers, making higher salaries than those they earned fresh out of high school or college. They’ve had ten years at that point to pay down some debt, and perhaps save for the purchase of a first home.
How to Increase Net Worth
By the time that you’re in your 40s, your goal is to have a net worth of two times your annual salary. For example, if your salary is $75,000 in your 30s, you should aim to have a net worth of $150,000 by the time you’re 40 years old.
It’s common for people in their 40s to increase their net worth by investing in real estate and continuing to grow their retirement savings. Owning a home is an asset that could greatly increase your net worth since it can appreciate over time.
Average Net Worth by Age 55
By your 50s, you should begin to see significant progress made toward your net worth based on real estate investments, contributions to your retirement plan, and other investments. By the time you’re 50, your goal should be a net worth of four times your annual salary. For example, if you’re currently making $90,000 per year, your net worth should be at $360,000.
The Benchmark
The average net worth for Americans between the ages of 45 and 54 is $833,790, while the median net worth is $168,800.
How to Increase Net Worth
At this point, consider becoming more aggressive when it comes to building your net worth. To do this, consider maxing out your 401(k), meaning that you contribute as much as is legally allowed. And, if you haven’t already, this may be a good time to contribute to an IRA, an account that allows you to save for retirement with tax-free growth or on a tax-deferred basis.
If you have children, you may also want to consider contributing to a 529 college savings plan, a tax-advantaged savings plan for education costs, but make sure to prioritize your retirement first.
Average Net Worth by Age 65
In your 60s, your goal is to have a net worth of roughly six times your salary. For example, if your salary is $120,000, you should aim to have a net worth of $720,000. At this point in your life, your net worth will help you understand how much wealth you’ll have once it’s time to retire — and how early you can.
The Benchmark
The average net worth for Americans between the ages of 55 and 64 is $1,176,520, while the median net worth is $213,150, according to the most recent data from the Federal Reserve.
How to Increase Net Worth
To help you reach your goals, you may want to begin thinking about how you can lower your cost of living and capitalize on your investments. If you live in a house, but no longer need all of the space, could you consider downsizing? No need to make any immediate decisions, but with retirement only a few years away, you’ll want to begin looking at how you are going to benefit from your investments.
You’ll also want to consider purchasing disability insurance dependent on your health and genetics. If you’re unable to work during these final years leading up to retirement, disability insurance can help replace the income that you lost without decreasing your net worth.
Average Net Worth by Retirement
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How to Be a Starving Writer in NYC (Without Starving)
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By the time you’re ready to retire, you should aim to have a net worth of roughly six times your annual salary.
While it’s impossible to know exactly how many years following retirement you’ll need to plan for, it’s one of the many reasons it’s so important to start saving as early as possible. It can even lead to some deferring retirement and working beyond the normal retirement age.
The Benchmark
The average net worth for Americans between the ages of 65 and 74 is $1,215,920, however, the median net worth is $266,070.
Use the resources that you built throughout your life to fund retirement. You’ll also want to consider what age you want to start receiving your Social Security since the longer you delay it, the more your monthly income will be.
How to Increase Net Worth
From investments to saving, there are many ways to increase your net worth. Once you calculate your current net worth, use these general tips to help set you up for success by the time you retire:
Cut Expenses: The less that you’re spending, the more that you’re growing your net worth. See if there are bills or spending habits that you can reduce. Even if it’s only a few dollars, you’d be surprised by how much that can add to your net worth over the years.
Reduce Debt: Your debt is what could be holding you back from growing your wealth, and with high interest rates, it could be taking longer than expected. Making higher monthly payments or consolidating payments could help reduce your debt faster.
Pay Off Your Mortgage: Owning a home can become your biggest asset, so paying it off will help increase your net worth.
Make Investments. It may not be ideal to just let your money sit in savings. Consider investing part of your paycheck with a goal to reap the benefits when you reach retirement age.
Max Out Retirement Contributions: Make the most of tax-advantaged retirement plans even in your lower-earning years. If you start investing now, your net worth may increase at a much faster pace.
Set Goals: It may sound simple, but it’s easy to become passive about investing in the future if you don’t have hard goals set in place. Create a plan as to how you’re going to grow your net worth over the next 10, 20, or even 30 years — and stick to it.
Once you make a plan to build your net worth, check in with yourself and calculate how you’re pacing against your goals on a regular basis. And, before making a big purchase or an investment, keep this number in mind to make sure you’re making the right financial move.
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For most people, their health tends to get pushed to the back burner. The older that we get, the more money that we spend at the doctor and on our health care needs. As a senior, the largest part of health care insurance is Medicare. The government program has provided health care coverage to millions and millions of people across the United States. For a lot of these seniors, they wouldn’t be able to afford this protection if they applied for a policy through a private company.
The problem is that Medicare doesn’t cover everything that seniors may run into as they get older. Those coverage gaps could leave you with a mountain of hospital bills and medical fees. Those bills could quickly drain a retirement account and leave seniors with too little money in their retirement age.
Luckily, there are several ways that you can get some additional coverage against rising medical bills. It’s vital that you have the health care coverage that you need. One of the best ways to do that is to purchase a Medigap policy.
What is a Medicare Supplemental Plan?
These Medigap plans are sold by private insurance companies and are separate from the government Medicare program. The goal of these plans is to fill in the gaps that Medicare leaves behind. If you have one of these plans, then you’ll still be required to pay the premiums for Plan A and B, and you’ll also pay a private insurance company every month for the additional coverage. Some Medicare enrollees assume that these Medigap plans replace original Medicare, but that is not true.
There are ten different supplemental plans that you can choose from, depending on where you live. Not every state allows all the plans. These plans are denoted by a letter of the alphabet, from A to N. The different plans are going to cover different expenses or a portion of expenses. Some of them are going to provide more comprehensive coverage, like Plan F, while others are going to be more basic, like a Plan A. #ap71886-ww
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What Does Medigap Plan K Cover?
Now that we’ve looked at the foundational information of supplemental plans let’s take a deeper look at Medigap Plan K. For a lot of applicants, Plan K is a great policy, but it’s important that you compare all of your options before you decide which one is going to work best for you. Plan K is not the most popular option, but there are several advantages of this plan that you should be aware of when you’re shopping for additional coverage.
Plan K is one of the smaller policies that is going to provide basic coverage (which means lower monthly premiums). Unlike other plans that pay 100% of categories, Plan K is only going to pay for a portion of those expenses. For most of the categories, it pays 50% of these expenses. I’ll discuss those categories later in this article.
One of the unique advantages of Plan K is the yearly out-of-pocket limit that it includes. With Plan K, the out-of-pocket limit is $5,120, but that number can change every year. Once you’ve reached this threshold, your Medigap plan is going to cover 100% of your Medicare-covered costs for the remainder of the year. This is a nice safety net to have for your supplemental coverage, especially if you have a drastic health condition that could rack up a massive amount of health care costs. Plan K is only one of two plans that have an out-of-pocket limit, the other plan is Plan L, which has a much lower limit. With Plan L, the limit is half of Plan K’s limit.
If you purchase a Plan K, you’re going to get 50% coverage for these categories:
Medicare Part A deductible
Part A hospice care coinsurance or copayment
Skilled nursing facility coinsurance
Part B copayment or coinsurance
First three pints of blood for medical procedures
Until you reach the out-of-pocket limit, you will have to pay half of all of the categories. For most people, 50% coverage is enough to give them the financial protection that they need, but for others, they would like to have those expenses completely coverage. This is one of the most unique traits about the Plan K, is that it only pays for half of the categories.
These are the main coverage categories for your Plan K. There are a few key areas that you won’t get any coverage at all. The two main ones are the Part B deductible (which no plans are allowed to pay for anymore) and the Part B excess charges.
When you go to the doctor or have any medical services done, there is a pre-determined amount that they are going to pay for those treatments. Legally, the doctor is allowed to charge 15% more than that pre-determined amount, and everything above that is considered excess charges. With a Plan K, you’ll be responsible for paying for all of those excess charges out-of-pocket. In most cases, these are not going to be huge bills, but depending on the treatments or services that you get, it could end up draining your bank account before you know it.
Choosing the Plan That Works Best for You
Is a Plan K right for you? Plan K is a specific Medigap plan that scares a lot of applicants away. The half coverage keeps a lot of Medicare enrollees from choosing this plan, even though they could save money by picking this plan. If you don’t think a Plan K is best for you, there are several other excellent options that you can choose from. I know that picking a plan can be difficult, but there are several key factors that you should look at when you’re shopping for supplemental coverage.
The first thing that you should look at is your finances. The goal of your Medigap plan is to protect your savings account from being hit with thousands and thousands of dollars of medical bills, but you shouldn’t have a plan that’s going to stretch your budget every month. Before you apply for any of these plans, take a long hard look at your finances and see which one is going to fit comfortably.
The next thing that you should consider is your health. The purpose of your Medigap plan is to ensure that you’re getting the proper health care coverage without having to foot that bill yourself. If you’re in excellent health with no serious health complications, then you can consider purchasing a smaller plan, like a Plan K, which leaves more gaps in your coverage. On the other hand, if you’re in poor health and have several red flags on your medical history, then you should consider enrolling in a more encompassing plan that fills in all of the gaps left behind by Medicare.
Medigap Open Enrollment Period
Once you’ve decided which plan that you want to buy, Plan K or one of the nine others, it’s important that you take advantage of your Medigap Open Enrolment Period. This is a six-month window that starts the month that you turn 65. During this window, the insurance company can’t decline your application, regardless of your health or any pre-existing conditions that you may have. If you have some drastic health problems, this could be your only chance to get supplemental coverage.
If you apply during your Medigap Open Enrollment period, the insurance company can’t increase your premiums before of your health. If you purchase one of these plans outside of the open enrollment date, then your application will have to go through the underwriting process. That means that you could get drastically higher rates for your supplemental coverage. If you want to save money, it’s important that you apply during this time frame.
If you’ve already missed your Medigap Open Enrollment date, don’t worry, there is still a good chance that you can get affordable supplemental coverage.
Questions or Concerns?
This is the basics of Plan K coverage. If you still have questions about Plan K or supplemental coverage in general, please feel free to contact me or an experienced Medigap insurance agent today. Your health care coverage is one of the most important factors, especially as you get older.
It can be difficult keeping up with all of the changes to Medicare and supplemental coverage, but that’s why I am here to help. It’s my goal to give you the information and resources that you need.
Can you use your Roth IRA to pay for higher education expenses?
Yes. Under IRS rules, you can withdraw funds from your Roth IRA early and avoid the 10% early withdrawal penalty if you’re using the funds to pay for qualified education expenses.
According to the IRS, such withdrawals must meet three criteria:
1) They must go toward paying qualified higher education expenses,
2) Those expenses must be incurred at a qualified educational institution, and
3) Those expenses must be for an eligible member of your family.
If you need to pay for education expenses which meet these criteria, then more than likely, you’re eligible to make an early, penalty-free withdrawal from your Roth IRA.
Early Withdrawals From Your Roth IRA
First, it’s important to remember that you can always withdraw your original Roth IRA contributions tax-free and penalty-free at any time and for any reason.
Only your Roth IRA earnings (such as interest, dividends, and capital gains) trigger taxes and penalties if you withdraw them early. So what constitutes an early withdrawal? Any withdrawal of earnings which is made prior to meeting the Roth IRA 5 year rule and prior to reaching age 59 ½.
For instance, let’s say you’re 40 years old with $20,000 in your Roth IRA. Your $20,000 balance is composed of $14,000 in original contributions and $6,000 in capital gains. Under the Roth IRA withdrawal rules, you can withdraw up to $14,000 tax-free and penalty-free. But if you withdraw the remaining $6,000 in capital gains, that $6,000 is subject to income taxes and a 10% early withdrawal penalty.
So if you need to withdraw funds from your Roth IRA to pay for educational expenses, then you would first withdraw any original contributions you’ve made – which are withdrawn tax-free and penalty-free.
But if you need to make an early withdrawal of earnings from your Roth IRA, you can avoid the 10% penalty (but not the income taxes) if you use the funds to pay for qualified higher education expenses at an eligible educational institution for an eligible family member.
Qualified Education Expenses
So what constitutes a “qualified higher education expense”? According to the IRS, all of the following are “qualified higher education expenses”:
Tuition
Institutional fees
Books
School supplies, and
Equipment required for enrollment or attendance
Room and board only counts as a qualified higher education expense for special needs students who are enrolled as at least half-time students.
For instance, if your daughter is attending college, her tuition counts as a qualified higher education expense. So does the cost of her books, enrollment fees, and the laptop computer she’s required to have. But her rent and utilities at a local apartment complex don’t count.
Once you identify your qualified higher education expenses, you need to make sure they’re incurred at an eligible educational institution.
An Eligible Educational Institution
So what consitutes an “eligible educational institution”?
According the IRS, such an institution is:
“Any college, university, vocational school, or other postsecondary educational institutional eligible to participate in the student aid programs administered by the U.S. Department of Education. It includes virtually all accredited, public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions.”
This is the easiest to meet of the three criteria. Most postsecondary educational institutions meet this definition, from your local community college and state university to online, for-profit university programs. But if you’re not sure, just ask. Your school will know the answer.
Once you establish that you have a qualified higher education expense incurred at an eligible educational institution, then you only need to make sure the expense is paid on behalf of either yourself or an eligible family member.
Eligible Family Members
So who are eligible family members?
Only the following people are eligible to pay qualified higher education expenses with a penalty-free early withdrawal from your Roth IRA:
Yourself
Your Spouse
Your Children
Your Grandchildren
Your Spouse’s Children or Grandchildren
Brothers, sisters, and second cousins don’t qualify. Only the direct descendants of either yourself or your spouse.
Exceptions
So do all qualified higher education expenses incurred at an eligible education instition on behalf of an eligible family member avoid the 10% penalty if you make an early withdrawal from your Roth IRA?
Unfortunately, no. If you’ve already paid the bill for your qualified higher education expenses, and you’re looking to make an early withdrawal in order to reimburse yourself, you may not qualify.
Under IRS rules, you can only reimburse yourself for qualified higher education expenses you’ve already paid using these types of funds:
Payment for services, such as salary and wages
Gifts
Loans
An inheritance given to either yourself or the student
Withdrawals from personal savings
Withdrawals from a qualified tuition savings program
But if you’ve used any of the following types of funds to pay for qualified higher education expenses, you will owe a 10% penalty on any early Roth IRA withdrawals:
Pell grants
Employer-provided tuition assistance
Tax-free withdrawals from a Coverdell Education Savings Account (ESA)
Tax-free scholarships
Tax-free fellowships
Tax-free educational assistance for veterans
Other tax-free payments received as educational assistance (other than gifts)
That’s a lot of fine print to take in, so let’s use an example to illustrate.
Let’s say you’re 45 years old, you’re in the 25% tax bracket, and you have $36,000 in your Roth IRA – $14,000 in original contributions and $22,000 in capital gains. Your 19 year old son just finished his sophomore year in college incurring qualified higher education expenses of $18,000. He received a $2,000 tax-free scholarship, while you paid the rest of his tuition and book expenses for a grand total of $16,000 in out-of-pocket expenses.
You can use your Roth IRA to reimburse yourself for these out-of-pocket expenses. In fact, you can withdraw up to $14,000 tax-free and penalty-free. Why? Because in doing so, you’re simply withdrawing your original after-tax Roth IRA contributions.
However, the next $2,000 you withdraw is subject to income taxes, but NOT the 10% early withdrawal penalty. Why? Given your age, a withdrawal of earnings consitutes an early withdrawal, so it’s subject to income taxes at your current rate of 25%. However, because you’re using the funds to pay for qualified higher education expenses, you avoid having to pay the 10% early withdrawal penalty.
If you try to withdraw an additional $2,000 for a grand total of $18,000, you’ll owe income taxes AND the 10% early withdrawal penalty. Why? Even though $2,000 was used to pay for qualified higher education expenses, those expenses were already covered in the form of a $2,000 tax-free scholarship. So any additional funds beyond the $16,000 you’ve already withdrawn from your Roth IRA will be treated the same as any other non-qualified early withdrawal. And non-qualified early withdrawals are subject to income taxes and a 10% early withdrawal penalty.
Summary
If you or a qualified family member incur qualified higher education expenses, you can use your Roth IRA savings as college savings to pay for those expenses and avoid the 10% early withdrawal penalty if applicable.
While a Roth IRA is primarily intended as a vehicle for retirement savings, each individual circumstance is different. As such, you might want to look into using this special IRS provision to help out with your higher education expenses.
This is an article from Britt at http://www.your-roth-ira.com, the Web’s #1 resource for Roth IRA information.
By Peter Anderson2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited January 22, 2013.
A few months back the IRS released their 2012 IRA contribution limits and deduction phaseouts. If you have a traditional or Roth IRA, you should keep a close eye on the limits every year because every once in a while we’ll see an increase in allowed contribution amounts or in the income phaseouts. When that happens, you’ll want to increase your contribution amounts, or adjust your pre-tax giving so that you can fully take advantage of what the current rules are.
For the 2012 tax year the allowed contribution amounts haven’t changed at all. The income phaseout limits have seen some small increases, however.
2012 Contribution Limits For Roth & Traditional IRA
2012 saw the contribution limit both Roth and Traditional IRAs stay at $5,000 for people under the age of 50. If you are older than 50 this year you are able to make catch up contributions to your account of $1,000 – which means your limit is actually $6,000.
One thing to remember is that the Roth and Traditional IRA contribution limit is shared, so while you can contribute to both account types in one year, your $5,000 limit is a combined limit. So if you contribute $3,000 to your Roth IRA, you could only contribute $2,000 to your traditional IRA (bump that up by $1,000 if you’re over 50).
Here’s a table showing the 2012 Traditional and Roth IRA contribution limits, along with the limits in years past.
Year
Age 49 and Below
Age 50 and Above
2002-2004
$3,000
$3,500
2005
$4,000
$4,500
2006-2007
$4,000
$5,000
2008-2012
$5,000
$6,000
2013-2018
$5,500
$6,500
2019-2022
$6,000
$7,000
2023
$6,500
$7,500
AGI Based Income Phaseouts For IRAs In 2012
Both Roth and traditional IRAs have income phaseouts. What that means is once you reach a certain level of income the amount of deductible contributions you can deduct gets reduced.
For Roth IRAs single taxpayers with an annual Modified Adjusted Gross Income (MAGI) over $110,000 begin to see their allowable deduction drop until at $125,000 it goes away completely. The limits for Married Filing Jointly investors are $173,000-$183,000.
For Traditional IRAs single taxpayers with an annual Modified Adjusted Gross Income (MAGI) over $58,000 begin to see their allowed deduction drop until at $68,000 it goes away completely. The limits for Married Filing Jointly investors are $92,000-$112,000.
Roth IRA Income Limits For Contributions (2021)
Contributions are reduced if income is above this amount
Contributions are not available if income exceeds this amount
Single/Married Filing Separate IF you didn’t live together during the year.
$125,000
$140,000
Married Filing Jointly or qualifying widow or widower.
$198,000
$208,000
Married filing separately IF you lived with your spouse at any point during the year.
$0
$10,000
Tax Day Of The Following Year Is Contribution Cutoff
One thing a lot of people don’t realize is that if they haven’t already contributed the full amount to your Traditional IRA or Roth IRA for the 2011 tax year, they can still open a Roth IRA or a traditional IRA and contribute to the accounts up until tax day. This year tax day falls on April 17th, 2012 because of a government holiday.
If you do make a contribution in 2012 before tax day, make sure you specify which tax year the contribution is being made for.
Keep An Eye On Phaseout Limits
One reason why you’ll want to keep an eye on the income based phaseout limits is that your ability to contribute to your accounts is reduced if you reach a certain income level. If you know you’re close to reaching an income limit, try reducing your taxable income by contributing to an account like a 401k, reducing your taxable income and allowing yourself to contribute more to your IRA as well.
A power of attorney, or POA, in Indiana is a legal document that allows you (“the principal”) to appoint another person (an “agent” or “attorney in fact”) to act on your behalf. A power of attorney in Indiana must meet several requirements to be valid.
In Indiana, you can get a power of attorney for situations related to health care, finances, minor children or other situations.
Indiana power of attorney requirements
A power of attorney in Indiana must meet all of these requirements to be valid
:
The principal must be a mentally competent adult.
The agent must be a mentally competent adult. You can name co-agents (this can be a good way to designate a successor agent in case the first agent becomes unavailable).
The POA typically must be in writing and notarized — or signed with two witnesses present. (For a medical POA, only one witness is legally required, and a minor child POA has no legal requirement but notarization is recommended.) Using a notary can be a good idea even if you have witnesses; it improves your chances that third parties will accept the power of attorney.
Your witnesses can’t be your agent, successor agent, or anyone who benefits or is granted power from your POA; they also can’t be spouses or descendants of any of these disqualified people.
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Types of Indiana powers of attorney
There are three major types of Indiana power of attorney:
Financial POA: This document gives your agent authority to handle business and financial matters for you, such as paying your bills or buying and selling property for you.
Medical POA: This document allows your agent to make medical decisions for you if you’re unable, including deciding the treatments or medication you receive and which providers treat you.
Power of attorney over a minor child: This POA lets you choose someone to temporarily care for a minor child for up to 12 months. Some reasons for this type of POA include a parent being ill, deployed in military service or in the process of moving.
Additionally, Indiana recognizes these subcategories of powers of attorney:
General power of attorney: This grants your agent broad authority over your business and financial affairs, and it remains in effect only as long as you’re able to make your own decisions.
Durable power of attorney: This means the power of attorney remains valid even if you lose the ability to make your own decisions.
Springing power of attorney: This type of POA only activates under certain specified conditions, such as a minor coming of age or the principal becoming incapacitated.
Limited power of attorney: This type of POA only gives your agent authority over a specific transaction or event for a limited period of time.
Real estate power of attorney: This type of limited POA allows your agent to purchase, sell, manage or refinance property on your behalf.
Tax power of attorney: This type of limited POA lets someone else file your taxes, access your tax information and communicate on your behalf with the Indiana Department of Revenue
.
Vehicle power of attorney: This type of limited POA lets your agent represent you in titling and registration matters with the Indiana Bureau of Motor Vehicles.
How to get a power of attorney in Indiana
Here’s what you need to do to create a valid power of attorney in Indiana:
Select your agent(s).
Include in your POA document any specific powers you’d like your agent to have.
Sign your POA in the presence of required witnesses and/or notary public.
Store your original document in a safe place.
Give a copy of your POA to your agent and to any financial institutions or medical providers your agent will be dealing with.
If your agent has the authority to complete real estate transactions for you, file a copy of your POA with the land records office, which in Indiana is called the recorder’s office.
Review and update your POA as needed.
Frequently asked questions
Are there any tax implications I should be aware of?
If you plan to have someone file your taxes for you or represent you with the Indiana Department of Revenue, you’ll need to create a tax power of attorney (Form POA-1). You give the POA to the Indiana Department of Revenue by mail, fax or electronically.
How soon does my Indiana power of attorney take effect?
Unless you’ve created a springing power of attorney that takes effect on a certain date or when specific conditions are met, your POA becomes effective as soon as it’s signed, witnessed and (if necessary) notarized.
When does my Indiana POA end?
The power of attorney may end when one or more of these things happens:
You revoke the POA.
No agent is available.
A court invalidates the power of attorney.
Five years have elapsed (for tax powers of attorney).
Additionally:
Limited POAs end when the specified date arrives or the specified conditions are met.
Nondurable POAs end if the principal becomes incapacitated. In Indiana, all POAs are durable by default unless otherwise stated in the document.
What types of things can my agent do for me under an Indiana POA?
Indiana allows your agent to do a broad range of things for you, such as:
Banking and other financial transactions.
Managing bonds, stocks and other securities transactions.
Handling your business or organization.
Performing real estate transactions.
Administering retirement plan transactions.
Overseeing tax matters.
Receiving government benefits.
Making medical decisions on your behalf.
What happens if my agent acts improperly?
Under Indiana law, your agent is obligated to act in your best interests and to record all actions taken on your behalf for six years. As the principal, you’re entitled to request a written accounting of your agent’s actions, which the agent must give you (or any of your children who request it) within 60 days. If this accounting reveals improper actions, your agent is liable for all damages and related legal fees. If you’re unhappy with your agent for any reason, you’re always free to revoke or revise your POA to designate a new agent.
In today’s world, it’s important to find a job that not only pays well but also lets you enjoy your life outside of work. To achieve this, it’s essential to have valuable skills that people need so much that they are willing to give you the conditions you need to live freely. In this article, we will share some high-income skills that you can learn to upgrade your career and improve your quality of life.
What Are High Income Skills?
High-income skills are specialized abilities that are in high demand in the job market and can potentially generate a significant income for individuals who possess them. These skills often require a high level of expertise and are usually transferable between industries.
High-income skills can include a range of abilities, such as those related to sales, marketing, software development, data analysis, project management, financial management, public speaking, and others. The specific skills that are considered high-income can vary depending on the industry and the job market at any given time.
Importance of High-Income Skills in Today’s Job Market
In today’s job market, traditional education and job skills are no longer enough to secure high-paying jobs. Many industries are undergoing rapid technological advancements, which means that jobs that were once secure and high-paying are now being automated. In contrast, high-income skills are in high demand and can help individuals stay relevant and competitive in their respective fields.
Furthermore, high-income skills offer individuals the potential to earn a high income, even if they do not have a traditional college education.
By mastering a high-income skill, individuals can become independent contractors, start their own businesses, or work remotely, all of which offer greater flexibility and earning potential than traditional 9-5 jobs
Differences between High-Income Skills and Traditional Job Skills
Traditional job skills refer to skills that are required for specific jobs or industries. For example, a doctor must have knowledge of medical procedures and healthcare, and a teacher must have knowledge of education and classroom management.
In contrast, high-income skills are often transferable between industries and can be used in multiple professions. For example, a person with strong project management skills could work in a variety of fields, such as construction, healthcare, or finance.
Additionally, traditional job skills often require a formal education, such as a degree or certification, while high-income skills can be learned through experience, mentorship, and practice. This means that individuals can acquire high-income skills without going into debt to pay for college or vocational training.
High-income skills are in high demand in today’s job market and offer individuals the potential to earn a high income and achieve greater flexibility and independence in their careers. Unlike traditional job skills, high-income skills are often transferable between industries and can be acquired without a formal education.
1. Copywriting
Copywriting is the art of selling by writing. It involves convincing people to take action through your writing. While it may be easy to persuade people verbally, writing to convince them to take action is a lot more complex. Copywriters are highly sought after because they are the ones who write promotional emails, home pages, and online product features.
To be a good copywriter, you need to be good with people, understand how they think, what they need, and how to best help them. You should also be skilled at structuring your paragraphs and words to make sense and sound compelling. The average salary for copywriters is around $55K, but depending on your niche, you can earn over $200K per year.
2. Sales
Sales is all about communication and convincing someone to do something. It’s not just about convincing people to buy a product they don’t need; it’s also about presenting an idea, interviewing for a job, or presenting a project to your boss. If you believe in the company you work for or the product you sell, then excellent sales skills are essential.
Average salespeople make around $50K per year, but those who work for businesses can earn six figures. If you’re good with people and passionate about helping them, sales could be the perfect fit for you.
3. Web Design
Web design involves designing beautiful websites that follow brand strategy and guidelines to develop a unique look. If you have a sense of design and creativity, web design might be the skill for you. The average salary for web designers is around $55K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, which is more than $135K per year.
4. Digital Marketing
Digital marketing is the practice of promoting products or services through digital channels, such as search engines, social media, email, and other online platforms. As technology has continued to advance, digital marketing has become increasingly important for businesses of all sizes.
Digital marketing involves a variety of different disciplines and specializations, including search engine optimization (SEO), pay-per-click (PPC) advertising, social media marketing, email marketing, content marketing, and more. Each of these areas requires a unique skill set and approach, but they all share a common goal: to connect with potential customers online and drive business results.
One of the biggest advantages of digital marketing is its ability to target specific audiences with precision. Through advanced targeting options, businesses can reach the people most likely to be interested in their products or services. This can help to maximize the effectiveness of marketing campaigns and generate a higher return on investment.
Another benefit of digital marketing is the wealth of data and insights that it provides. By tracking website traffic, social media engagement, email open rates, and other metrics, businesses can gain valuable insights into how customers are interacting with their brand online. This data can be used to optimize marketing strategies and improve overall performance.
As for the salary range in digital marketing, it varies greatly depending on the specialization and level of expertise. According to Glassdoor, the average base pay for a digital marketing manager is around $77,000 per year in the United States, but this can range from $47,000 to over $117,000 depending on the location, company size, and years of experience. In specialized areas like SEO or PPC, the salary can be even higher. Freelance digital marketers can also earn significantly more by working with multiple clients and charging an hourly or project-based rate.
5. Computer Science
If you’re passionate about apps, algorithms, and online processes, then computer science might be the skill for you. This broad term can encompass many areas like data analysis, software engineering, or machine learning. The average salary for computer scientists is around $75K per year, but on platforms like Upwork, people charge between $65 to $80 per hour, with some earning up to $150K per year.
Job Title
Salary Range
Software Developer
$70,000 – $150,000
Web Developer
$50,000 – $107,000
Database Administrator
$74,000 – $122,000
Information Security Analyst
$77,000 – $130,000
Data Scientist
$85,000 – $165,000
Cloud Architect
$120,000 – $200,000
Machine Learning Engineer
$110,000 – $190,000
Please note that these salary ranges are approximate and may vary depending on factors such as years of experience, location, company, and industry.
6. Consulting
Consulting involves using soft skills like communication, negotiation, and presentation to help clients find better solutions. It’s all about asking key questions, handling emotions, and understanding your clients to serve them better. While the average salary for consultants is around $75K, it’s not accurate due to the great resignation.
Independent consultants can earn between $90 to $150 per hour, but it’s not something you can learn online. You need to learn skills like negotiation, presentation, and sales to become a good consultant.
7. Content Creation
Content creation involves creating great content that will attract people to your business. You can do it for yourself or for others, like writing, content creation, and content management. If you do it for others, you can earn between $75-$150/hour.
Content creation is the process of developing engaging content that captures the attention of an audience. It can include creating written content, such as articles, blog posts, or e-books, as well as visual content, such as images, infographics, or videos. If you have a passion for creating compelling content and are skilled at storytelling, content creation may be a high-income skill worth pursuing.
Here are some points to consider when developing your content creation skills:
Writing: The ability to craft well-written and engaging content is a valuable skill in today’s digital age. If you’re interested in writing, consider taking courses on writing techniques, storytelling, and copywriting. Practice writing regularly to hone your skills and build your portfolio.
Video Production: Video content is becoming increasingly popular, and businesses are looking for skilled video producers who can create high-quality content. If you have an interest in video production, consider learning how to shoot and edit videos, as well as how to use video editing software.
Social Media: Social media is a powerful tool for businesses to connect with their customers and promote their products or services. As a content creator, you may be tasked with developing social media content that is engaging and shareable. Consider taking courses on social media marketing and developing your social media skills.
SEO: Search engine optimization (SEO) is the practice of optimizing content to rank higher in search engine results. As a content creator, you may be responsible for ensuring that the content you create is optimized for search engines. Consider taking courses on SEO and staying up-to-date on the latest SEO best practices.
Graphic Design: Graphic design skills are valuable for creating visual content, such as infographics or social media graphics. If you have an interest in graphic design, consider taking courses on design software, such as Adobe Photoshop or Illustrator, and developing your design skills.
Overall, content creation is a versatile skill that can lead to high-paying opportunities in a variety of industries. By developing your content creation skills and building a strong portfolio, you can position yourself as a valuable asset to businesses looking to connect with their customers and build their brand.
8. Writing
Writing is a versatile skill that can open doors in various industries. Whether it’s creating content for a blog, writing copy for a website, or drafting an important business proposal, writing is a skill that can help you communicate your ideas effectively.
Strong writing skills are especially important for those working in fields like journalism, public relations, marketing, and advertising. Good writers can earn an average salary of around $60K per year, but top earners can make well into the six figures.
9. Project Management
Project management involves overseeing a project’s planning, execution, and closing phases. It requires strong organizational skills, leadership abilities, and the ability to manage resources effectively. Project managers are in demand in various industries, including construction, engineering, technology, and healthcare. The average salary for a project manager is around $80K per year, but top earners can make over $150K.
10. Public Speaking
Public speaking is the art of delivering a message to an audience. It’s a skill that’s useful in various industries, including education, sales, and politics. Good public speakers can engage their audience, convey their message clearly, and leave a lasting impression.
Public speaking can be a lucrative skill, with top motivational speakers earning millions of dollars per year. However, even an average public speaker can make a comfortable living, with an average salary of around $60K per year.
“Public speaking is a skill that can be learned and mastered with practice. It’s not about being perfect, but about connecting with your audience and delivering a message that resonates with them.”
– Grant Baldwin, author and professional speaker
11. Graphic Design
Graphic design involves creating visual content, such as logos, illustrations, and layouts. It requires creativity, technical skills, and the ability to communicate a message visually. Graphic designers are in demand in various industries, including advertising, marketing, and publishing. The average salary for a graphic designer is around $50K per year, but top earners can make over $100K.
13. Accounting
Accounting is the process of recording, classifying, and summarizing financial transactions. It requires attention to detail, strong analytical skills, and the ability to work with numbers. Accountants are in demand in various industries, including finance, healthcare, and government.
The average salary for an accountant is around $70K per year, but top earners can make over $100K. Accounting is a great career choice for those who are organized and detail-oriented. With the right qualifications, you can open your own practice or work in a large organization.
Accountants must be prepared to stay up-to-date on changing regulations and industry trends. They also must be comfortable working with computer software and technology, such as accounting programs and spreadsheets.
The Bottom Line – Increase Your Income with High Income Skills
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In conclusion, acquiring high-income skills can lead to a more fulfilling career and a better quality of life. These skills can take time and effort to develop, but the financial rewards can be significant. Whether you choose to learn a new programming language, improve your writing skills, or become a better public speaker, there’s always room for growth and development in today’s job market.
By investing in yourself and developing valuable skills, you can position yourself for success and achieve your career goals.
Life insurance is a major component of most any overall financial plan – regardless of one’s age or employment status. That is because loved ones could be faced with massive debts to pay – including the cost of a funeral and other financial expenses – if the unexpected should occur.
The proceeds that are received from life insurance policies are income tax-free, so loved ones can use the entire amount of the funds for their needs. This can help them to avoid a financial hardship, at an already difficult time in their lives.
When you are in the process of seeking life insurance coverage, several key factors are essential to keep in mind before making a long-term commitment to a policy. These should include obtaining the proper type and amount of insurance coverage, as well as making sure that the insurance company that you are purchasing the policy through is secure and stable financially and that it has a good, solid reputation for paying out its claims to policy holders and beneficiaries. One company that meets these criteria is Geico Insurance Company.
The History of Geico Insurance Company
Geico has been in business since 1938. Over the past 80 years, the company has grown and expanded exponentially, and today the company is ranked as the second largest private passenger auto insurance company in the United States.
The name Geico is an acronym for Government Employees Insurance Company, which goes back to the company’s beginnings. The founder of Geico, Leo Goodwin, initially targeted a customer base that consisted primarily of United States government employees and military personnel.
The company now insures military and government personnel, as well as private consumers. In 1996, Geico became a wholly owned subsidiary of Berkshire Hathaway, which is headed by the world’s most famous investor, Warren Buffett. For the past several years, Fortune magazine has named Berkshire Hathaway’s property casualty insurance operation as the most admired in the U.S.
Presently, Geico is made up of its primary unit, the Government Employees Insurance Company, along with several affiliates, including:
Geico General Insurance Company
Geico Indemnity Company
Geico Casualty Company
Geico Advantage Insurance Company
Geico Choice Insurance Company
Geico Secure Insurance Company
Geico is headquartered in Chevy Chase, Maryland (near Washington, DC). The company also has some regional offices that are dotted throughout the U.S., including locations in:
Buffalo, New York
Dallas, Texas
Frederickson, Virginia
Lakeland, Florida
Macon, Georgia
San Diego, California
Tucson, Arizona
Virginia Beach, Virginia
Woodbury, New York
There are also several services centers, which are in Iowa, Indiana, and Hawaii, as well as some claims centers, which can be found in Houston, Texas, as well as in Seattle, Washington, and in Marlton, New Jersey.
Geico Life Insurance Review
Today, Geico insures more than 15 million auto insurance policies – and growing – and the company has more than 24 million vehicles insured. It is one of the fastest growing major auto insurers in the country, employing more than 36,000 associates, and providing customer service 24 hours per day, seven days per week, and 365 days per year. As of year-end 2016, Geico had assets under management of more than $32 billion.
The company has also earned a long list of various awards and accolades over the years. For example, Geico was named to Ward’s 50 top group of financially high-performing insurers for the 21st consecutive year in 2011. This award recognizes that Geico achieved outstanding financial results in the areas of safety, consistency, and performance.
Also, Geico was rated as being superior by consumers in 2007, for its customer advocacy. Forrester defines this as being “the perception by customers that a firm (Geico) does what’s best for them, and not just what is best for its bottom line.”
Geico was also rated as #1 by the Kanbay Research Institute for being the most desired insurer amount consumers based on the following factors:
High regard for customer service
Focus on staff training and development
Likewise, the owner of Geico, Berkshire Hathaway, was named as being a leading company in world insurance markets. These rankings include:
#1 global insurance company by revenues in 2013, based on an analysis of companies in the Global Fortune 500.
#2 writer of private passenger auto insurance by direct premiums were written in 2013. (Before reinsurance transactions, includes state funds. Based on U.S. total, includes territories).
Geico has also been named a leader in ethical practices in the property/casualty industry, and Berkshire Hathaway was appointed as a leader in ethical practices in the financial services sector by Ethisphere Magazine.
Also, Geico achieved the highest overall score in Forrester Research’s 2014 U.S. Mobile Auto Insurance Functionality Benchmark. With perfect scores in policy information and management categories, Forrester proclaimed Geico as “The pocket auto insurer.”
Geico’s Mobile App and insurance site received a #1 ranking on Keynote’s 2015 Mobile Insurance Scorecard, competing against top insurers. Geico is also ranked first for technical quality, according to Keynote KCR (Keynote Competitive Research).
While the company has traditionally been known for its vehicle coverage options, Geico doesn’t just offer auto insurance. The insurer offers a broad range of coverage products and services, including life insurance, home owner’s insurance, and even identity theft protection.
Insurer Ratings and Better Business Bureau Grade
Due to its stable financial footing, as well as its timely payment of customers’ insurance claims, Geico has been given high ratings from the insurer rating agencies. These include the following:
AA+ from Standard and Poor’s
Aa1 from Moody’s
A++ from A.M. Best Company
Also, although Geico is not an accredited company through the Better Business Bureau (BBB), the company has been given a grade of B by the BBB. This is on an overall grade scale of A+ to F.
Throughout the past three years, Geico has closed out a total of 2,514 customer complaints – of which 158 have been closed out within the previous 12 months. Of these total 2,514 complaints, 1,655 regarded as the company’s product and/or services, while 658 were regarding billing and/or collection issues. Another 125 considered advertising and/or sales issues, 55 were concerning guarantee and/or warranty issues, and the remaining 21 complaints focused on delivery issues.
Life Insurance Products Offered Through Geico
Customers of Geico can obtain life insurance coverage via Life Quotes, Inc. The company offers term life insurance policy, which provides pure death benefit protection, without any cash value or savings build up. Because of this, the premiums for term life insurance can typically be quite affordable – especially for those who are young and in good health at the tie of policy application.
As its name implies, term life insurance is purchased for a set period – or term – such as five years, ten years, 15 years, 20 years, or even for 30 years. In most cases, the amount of the death benefit coverage, as well as the sum of the premium, will remain level throughout the term of the policy.
And, provided that the premiums are paid on time, the company that issues the term life insurance policy will not be able to cancel the coverage. Once the term of a policy reaches its end, the insured may opt just to purchase a new policy (if he or she qualifies based on their then-current health).
As with its other forms of insurance coverage, getting life insurance via Geico can be a natural process. For example, by teaming up with Life Quotes, Inc., customers can expect the following benefits:
Easy paperwork/application process
Natural customer service process
Convenient payment plans for paying the premium, which include monthly, quarterly, or annual payment options
A full range of coverage limits to meet each customer/policy holders’ needs
When applying for life insurance through Geico / Life Quotes, Inc., an applicant’s health is considered. Once approved, the life insurance policy will typically cover death due to any cause, other than that of suicide within the first two years of policy ownership.
Once an individual has been approved for life insurance coverage through Geico / Life Quotes, policy holders can access their policy directly through the Geico website. This can make it easy to check coverage, as well as to make changes to one’s account, such as address and other contact information, and the name of the policy’s beneficiary.
The Geico website also helps to prompt a policy holder with various information that may assist them in reviewing their life insurance coverage, and in deciding whether to alter their coverage limits in the future. For example, some of the reasons why someone may want to change the amount of their coverage include:
A change in household income/employment status
Marriage, divorce, or becoming widowed
The birth or adoption of a child
Retirement
New grandchild(ren)
Serious illness and disability
Caring for an aging parent
Starting a new business
Selling off one’s home and purchasing another
New Drivers under 25
Now, Geico does not offer permanent life insurance coverage – which includes whole life, universal life, indexed universal life, variable life, or variable universal life – all of which include both death benefit protection and a cash value component.
Purchasers of many of the insurance plans that are offered through Geico may qualify for a premium discount.
Other Products and Services Available
While Geico is a primary insurer of automobiles, it also provides a wide selection of other products such as life insurance and other types of coverage, such as:
Motorcycle insurance
ATV insurance
Umbrella insurance
Home owner’s insurance
Renters insurance
Condo insurance
Co-op insurance
RV (Recreational Vehicle) insurance
Boat insurance
Personal watercraft insurance
Flood insurance
Mobile Home insurance
Overseas insurance
Travel insurance
Commercial Auto insurance
Ridesharing insurance
Business insurance
Identity Protection insurance
Snowmobile insurance
Collector Car insurance
Mexico Car insurance
Pet insurance
Jewelry insurance
How to Get the Best Rates on Life Insurance From Geico Insurance Company
If you have been seeking the best rates on term life insurance from Geico – or from any insurer – it can be beneficial to work with an independent life insurance agent or broker. In doing so, you will be better able to compare side-by-side the policies and the premium prices from numerous different insurance carriers. From there, you will then be able to choose which one will be the best for you.
When you are ready to move forward with the life insurance purchase process, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the market place today. We can assist you with obtaining all the pertinent details that you require for making a well-informed buying decision, and we can do so for you quickly, easily, and conveniently – all without you having to meet in person with an insurance agent. If you are ready to get started, then all you should do is just simply fill out our quote form.
We understand that the purchase of life insurance coverage can be somewhat overwhelming. There are many different variables to consider – and you want to be sure that you are making the best decision regarding type and amount of coverage for your specific needs. The good news is that the life insurance purchasing process can be done so much easier when you are working with an expert on your side. So, contact us today – we’re here to help.