Most Americans Haven’t Researched or Saved for Retirement

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Retirement
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Based in Boca Raton, Florida, financial advisor Barry M. Kornfeld serves as the principal of First Financial Tax Group, which offers a wide array of growth, income, and tax services and strategies. In his work, Barry M. Kornfeld helps individuals assess their retirement income needs and find the right solutions to achieve those goals.

Recent surveys indicate that Americans are inadequately prepared for retirement, both in research and actual savings. A recent poll conducted by the Transamerica Center for Retirement Studies shows that only 10 percent of Americans have taken the time to estimate the income they will need for retirement.

Additionally, that survey shows that most people expect Social Security to be their only means of income in retirement years. Most Americans also plan to work past retirement age in order to save extra retirement funds, but don’t really have an established plan for how much they will save or how to go about it.

Another survey conducted by GoBankingRates shows that one in three Americans have absolutely no money set aside for retirement at all, and an additional 23 percent report having only $10,000 set aside.

What all this data suggests is that Americans as a whole are woefully underprepared for their financial needs in retirement. This only serves to increase the importance of seeking advice from an experienced, capable retirement planning professional.

What Are First Position Commercial Mortgages?

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Barry Kornfeld
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The co-founder of the First Financial Tax Group, financial advisor Barry M. Kornfeld provides alternative income and growth strategies for conservative clients. Over the course of his career, Barry Kornfeld has gained significant experience with first position commercial mortgages (FPCMs).

First position commercial mortgage (FPCM) notes are an appealing option for those seeking a lower risk, fixed-income vehicle. Offering a stable 6% return with monthly payments, these one-year bridge loans are secured by a commercial property, such as an apartment or office building, or other commercial real estate structure. Importantly, the real estate value at closing will be substantially more than the total FPCM loan value, creating high-value collateral value and security for the FPCM holder.

When a client utilizes an FPCM note, he or she becomes the senior lien holder for the property and has his or her name listed first on the title, hence, the term “first position.” Clients often purchase FPCMs using a variety of funding sources, including IRA’s, pensions, trusts, and 401Ks. Since these FPCMs have a low loan-to-value ratio, averaging between 30% and 65%, or even less, it means that the client has a more secure and safer alternative to generate the highly coveted monthly income that so many seek in today’s yield starved economy.

Three Documents that Protect FPCM Clients

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First Financial Tax Group
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Before becoming the principal of First Financial Tax Group, Barry M. Kornfeld earned a bachelor’s degree in finance and accounting at American University Washington, DC. As a financial advisor through his firm, Barry Kornfeld offers first position commercial mortgages, or FPCMs, to clients seeking alternative sources of fixed income.

FPCMs are safer alternative income sources that yield stable returns of at least 6 percent annually, with interest payments made monthly. Maturities are generally about 1-year. To protect FPCM clients, the transaction will utilize three (3) main documents:

Promissory note – This is a contractual promise between the specialty mortgage company, and the FPCM holder, stating the terms of which the mortgage company will repay the first-position lien holders according to the terms set in the FPCM agreement.

Loan agreement – The loan agreement stipulates the security interest in the collateral that serves in favor of the first-lien position holder.

Assignment and collateral assignment – In these documents, the specialty mortgage firm discloses all of its interests, participation, title, and rights as a second-lien holder.

How Social Security Benefits Are Calculated

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Social Security Benefits
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Barry M. Kornfeld is a graduate of American University, where he obtained his bachelor’s degree in finance and accounting. Today, Barry Kornfeld puts his education to use as a financial advisor and principal at First Financial Tax Group, a firm that assists pre and post-retirees in alternative income & growth strategies.

One of the more common financial concerns that the country’s pre-retirement population faces is understanding how Social Security is calculated and identifying the best time to file for it. The amount that an individual receives in Social Security benefits is calculated using several variables. The first variable is the total of the highest earnings that an individual collected over the course of 35 working years, which is then altered to reflect the current economy’s wage growth. That number is then averaged and divided by the number of months worked within 35 years before it becomes an individual’s Average Indexed Monthly Earnings (AIME). The formula is then applied to the AIME to determine the individual’s payable benefits at full retirement age.

Along with total earnings, the time that an individual files for Social Security affects the amount that he or she receives each month. Making a claim before reaching the full retirement age of 66 or 67 can significantly reduce a benefit amount, while waiting to retire until later can increase the size of the check one receives by around eight percent each year until the age of 70.