Two Things You Can Do to Help Senior Citizens in Your Community

Centers for Disease Control and Prevention (CDC)
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In his role as the principal of First Financial Tax Group, Barry Kornfeld works with people who are approaching or have reached retirement age to help them create income and growth plans that help them achieve financial stability once they have stopped working. As part of this role, Barry M. Kornfeld also offers advice on retirement and he maintains an interest in the psychology that surrounds aging.

According to statistics in a Centers for Disease Control and Prevention (CDC) study, approximately 7 million senior citizens in the United States experience depression. In many cases, this is linked to a lack of companionship and there are a number of things you can do to help the elderly citizens in your own community.

Spending some time with an elderly person and engaging in conversation can have a remarkable effect. Some communities have even implemented foster grandparent programs that link lonely senior citizens with people who want to spend time with them. Getting involved with a local charity that focuses on the issue is a good first step.

Also, consider the possibility that illness and transportation issues can prevent senior citizens from attending events that are important to them, such as social gatherings or religious ceremonies. By offering transportation and a little help, you may be able to enrich an elderly person’s life.

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.

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.