One day, you’ll retire and leave the fast-paced life of a first responder. While that day may seem far off, it’s never too early to start planning.
Taking the first steps now will help you make the most out of your retirement later. Here’s what to consider.
What Retirement Will Cost
When you retire, you’ll want to be able to live a similar lifestyle to the one you enjoy now. Starting with the costs of your current lifestyle, you can estimate how much you’ll need for retirement. A general rule is that you’ll need about 80% of your current monthly salary to cover your needs in retirement.
Begin by estimating these costs now and in retirement. When thinking about future costs, you’ll also want to account for inflation (about 2% per year).
Housing (rent/mortgage, utilities, real estate taxes, home insurance, household maintenance)
The average American life expectancy is nearly 85 years old. That means, if you retire at age 65, you’ll need about 20 years of retirement income.
So, how much retirement savings do you need? Depending upon the cost of living where you are, you will likely require between $1 million and $2 million total to retire comfortably. If that figure alarms you, you’re not alone. Retirement can be daunting if you’re not prepared.
How Much Money Will You Have?
You won’t have a job when you retire, but you will have sources of income. This includes money in savings accounts, investments, retirement accounts, and more. Calculate how much money you will have based on these income sources.
Savings accounts
Putting money away each month for retirement really does pay off. That’s because, over time, you earn interest on your interest. Financial experts recommend banking 15% of your income each year. While historically, many people set up savings accounts at the brick-and-mortar bank where they have their checking account, you won’t earn a lot in interest. Consider a high-yield savings account offered at online institutions that are insured by the FDIC.
Social Security Benefits
Social security is a government program that provides income to retired Americans. It’s based on your lifetime earnings. You pay into the social security system every year that you work and then are eligible for money back when you retire. While social security is a great foundation for retirement, most Americans find that it’s not enough to cover all costs. You can calculate your anticipated social security here. (Note: Some states do not participate in social security for public employees. In those cases, the state offers a public retirement system. If you work in Alaska, Colorado, Louisiana, Maine, Massachusetts, Nevada, and Ohio, you may not receive social security.)
Retirement Savings Plans
If you’re a first responder, chances are that you have a 457 Plan. Similar to a 401(k), a 457 plan is offered by state and local public employers. In both plans, you can contribute pretax money from your paycheck, which then grows without being taxed until you withdraw it. You also may consider setting up a Roth IRA. While your contributions are not deductible, you are not taxed when you withdraw the money. Know which plan you have and its benefits. In many cases, you can choose low, medium, or high-risk plans, which can impact how much you will earn over time.
Pensions
While pensions are increasingly rare, some employers, usually public sector and unions, still offer them. With a pension, you will receive some percentage of your annual income based on how long you worked for the company. You have to meet the vesting requirements, which means that you have to work a certain number of years in order to qualify.
Many retirees work part-time to supplement their income or simply to keep busy.
Prepare for the Emotional Transition
You’ve spent your whole life serving others in a fast-paced, high-stress job. Retirement will be different, and as a result, could leave you with feelings of emptiness. Stepping down from your job could cause you to feel you’ve lost your purpose. Make sure that you prepare for the emotional transition as well as the financial one.
Figure out where to spend your time
You may wish to travel, spend time with your grandchildren, or volunteer. You may want to work on the house or the yard. You can take continuing education classes at the local college or offer to teach them at your community center. Ask around to find out about the opportunities in your community. Structure your days into a retirement routine that gives you a sense of purpose and an opportunity to enjoy life.
Connect with former team members
First responders are more than just coworkers. You’re a tightly-knit team, and when you retire, those bonds don’t suddenly disappear. Schedule time to connect with your former team members on a regular basis. It will do wonders for your mental health as you tackle retirement together.
Practice healthy habits
Keep yourself healthy through retirement by eating right, exercising, and staying on top of medical screenings. Staying healthy will help you to enjoy retirement to its fullest.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
You know the basic coverage that comes with your health insurance, car insurance, and home insurance policies. But did you know there are other special insurance policies and add-ons that you could be missing out on?
If you’re traveling to Mexico, own an older home, a classic car, or have precious family heirlooms, etc., you should increase your protection by looking into purchasing these lesser-known insurance policies and options.
Planning to travel south of the border? Mexico does not recognize U.S. auto insurance. If you’re driving to Mexico from the U.S. in your own car or a rental, you will need to purchase a tourist auto policy.
A Mexico auto policy will allow you to cover damages if you’re involved in an accident.
If you cannot show proof of Mexican insurance, you can be heavily fined and even arrested. This is true even if you are not at fault for the accident.
You can get coverage for the duration of your trip: a few days, a few months or longer.
2. Homes Built Before 1986
Homebuilding has changed over the years. If you’re living in a home built before 1986, it’s likely your house has outdated materials or old-fashioned types of construction. You can get a policy option that helps bring your house up to date if it is damaged.
With this type of policy, in the event of a loss, your insurance covers repairs and/or replacement of outdated materials and construction methods.
As a result, losses will cost less to settle.
Those repairs and updates will reduce the coverage amount that you need to protect your home.
With everyone working remotely this past year, computers have become our lifeline. Consider a special computer coverage option to ensure you are covered for all of your devices: desktop computers, laptops, tablets, and smartphones. While homeowner policies typically cover possessions, special computer coverage offers more coverage.
If you accidentally spill a glass of water on your computer, and your computer is damaged as a result, it would be covered.
With this coverage, you will receive more money for your devices if they are damaged than with traditional homeowner’s.
Personal Property, also referred to as “contents coverage,” is the term insurance companies use to collectively define the things you own inside your home. Scheduled Personal Property (SPP) Coverage is for items that have higher values above your personal property coverage limits. This includes:
Heirlooms
Watches
Jewelry
Instruments
Furs
SPP offers much broader coverage for your precious items – if you misplace a set of earrings, they are covered; if a diamond falls out of a ring, or a guitar neck breaks, they’re covered. There is no deductible if the covered items are stolen, lost, or damaged. SPP provides a replacement for the actual appraised value of the item.
Spending time and money on your classic car? Don’t let it go to waste. Make sure it’s protected with classic car insurance coverage. With this coverage, you will pay less than standard auto insurance coverage and you can determine the value, the deductible, and the policy options that work best for you including towing and coverage for lost or stolen parts. There are mileage plans that cover everything from cruising on the weekends to driving to attend auto shows.
Classic Car Coverage is for all types of collectibles – collector trucks, classic and custom motorcycles, kit cars, fire engines, military vehicles, and more.
6. Refrigerated Property Coverage
When there is a power outage, the food in your refrigerator could spoil. A standard homeowner’s policy may cover the costs of replacing some of the food. A refrigerated property policy provides additional coverage.
A refrigerated property policy adds up to $500 of coverage for property, such as meat that spoils because of a power outage or equipment failure.
7. Other Members of Your Household Coverage
Do you have someone living with you who is not a relative, guest, or tenant? You may consider this policy for other members of your household.
If a boyfriend moves in, and he’s not on the lease, it may make sense to add this coverage.
This policy adds personal property, liability, and additional living expense coverage for that person.
Our pets are like family and we want to keep them as healthy as possible. Pet insurance can help to offset those veterinary expenses.
Depending on your policy, pet insurance may cover exams, prescriptions, lab tests and x-rays, surgeries, emergency visits, and even cancer.
You make the initial payment and then are reimbursed depending upon the deductible and limits that you have selected.
9. Sump Pump Endorsement
If your home is prone to flooding, chances are that you have a sump pump to remove the water. A sump pump/water backup endorsement covers damage if your sump pump fails or something happened to cause water to back up into your home. This damage is not covered under standard homeowner policies.
Just a couple of inches of water backup can cause thousands of dollars in damage – ruining carpets, destroying appliances, and crumbling drywall.
This could happen to any system, and especially ones where sewer pipes are old.
Ninety percent of Americans live in areas that are seismically active. If you live in an area that is prone to earthquakes, you may want to consider this additional coverage.
Homeowner, condo, and rental insurance policies typically do not cover earthquakes.
Earthquake insurance can help pay for some of your losses.
Floods are expensive. Just a couple of inches of water could cost thousands of dollars in damage to your home and belongings. There are a lot of myths about flood insurance; it’s important to know the facts.
Flooding is America’s most common natural disaster.
One in four homeowners will experience a flood during a 30-year mortgage.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
A sabbatical is an extended break from work that can be paid or unpaid. Sabbaticals can last anywhere from a few weeks to a year or more (or more) and your job will be held for you while you’re gone.
Historically, sabbaticals were offered by universities for professors to do research, teach abroad, or further their skillset in their field of study. However, today’s sabbaticals aren’t just limited to educational institutions. They’re growing in popularity among workers in all fields who seek to volunteer and/or explore new horizons.
Sabbaticals are not vacations; they are a chance to recharge and a great way to prevent burnout. Employers benefit when their employees return with renewed energy and new skills.
Looking to take a sabbatical? Here’s everything you need to know.
How to Plan a Sabbatical
Planning a sabbatical requires careful thought and preparation because every part of your current life will be impacted. You’ll want to examine finances, logistics, and family needs.
Step 1: Check your company policy.
Your company may have accommodations for sabbaticals, including specific guidelines. For example, you may have to have worked at the company for a certain number of years to qualify. If your company does not have a policy for sabbaticals, that doesn’t mean you need to forget the idea. It just means that you might need to do a little more on your own.
Step 2: Research and apply for grants that fit your focus.
You don’t have to go it alone. You may qualify for a grant or fellowship that could finance all or part of your sabbatical. Here are just some examples:
Lone Mountain Fellowships
Louisville Institute Sabbatical Grant for Researchers
Marshall Memorial Fellowship
Peace Corps
Rotary Peace Fellowship
Urban Leaders Fellowship
Step 3: Inform your employer.
Request a sabbatical with as much notice as possible. Present the request in writing, and include details on how the experience will provide value to the company. If your request is denied, you can still take a sabbatical; just know that your job will likely not be waiting for you when you return.
Step 4: Choose the start date and duration—but be flexible.
Having a timeframe helps you to plan your sabbatical. However, as you make plans, you may discover different opportunities. Be open to changing the start date and duration as you learn more.
Just because you’re not working doesn’t mean that the bills will go away. If you have debt, such as rent or a mortgage, car payments, and other bills, you will need to determine how you’ll pay them. Be creative. For example:
Consider opening a savings account to cover some of these costs.
Your spouse might be still working and can pay the bills.
You could get a part-time job during your sabbatical, such as house-sitting, which will still allow you to pursue your passion.
You can rent out your house while you are elsewhere on sabbatical.
Step 6: Plan your exit strategy.
Give yourself enough time to train your replacement at work. Set up a place to hold or forward your mail. Communicate to co-workers, extended family and friends that you will be on sabbatical. Schedule the last few days before you start your sabbatical to ensure that you will be ready.
Step 7: Expect to have “cold feet.”
You’re about to make a drastic change in your everyday life. That can give anyone anxiety. Expect to feel unsure as you’re getting ready to embark on your adventure. You can do this!
Finding Your Purpose on Sabbatical
Your reason for taking a sabbatical is as individual as you are. People take sabbaticals for a variety of reasons.
Do field research in an area of study
Write a book
Volunteer for a cause
Travel the world
Unplug and get back to nature
Become an apprentice and learn a new skill
Discover their roots
Earn a certificate or degree
Do your research to find what resonates with you.
Staying Covered on Sabbatical
You’ll want to make sure that you are fully covered by insurance while you are away on sabbatical.
If your company is sponsoring your sabbatical, check with your human resources department to see if they are also covering your health insurance. If not, you will have to pay out of pocket.
If you have California Casualty, you can take a break from car insurance and not be penalized with the sabbatical benefit. Just inform your agent and they will let you know the guidelines that must be met.
Let trusted friends, family members, or neighbors know of your absence, so they can keep eye on your property and prevent a burglary.
Consider travel insurance if you’ll be away from home.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Combine several short trips into one long one. Engines are most efficient when they are warmed up.
Try to avoid rush hour and take less busy routes to avoid the stop and go of bumper-to-bumper traffic.
Slow down. Driving faster on the highway can really reduce your vehicle’s fuel efficiency.
Keep track of gas mileage (or mpg – miles per gallon) with every tank refill. Note if any drastic change in the average.
Your newer vehicle is controlled by software, so ask your dealer for an engine computer software upgrade. The update may lead to efficient operation and/or fix other problems.
Park in the shade or use a windshield shade to keep your interior cooler. Then lower your windows when entering the car after it’s been parked a while. Your A/C will work more efficiently, giving you better MPGs.
Don’t let your vehicle idle. There is no need to warm up modern vehicles without carburetors. You will use gas without going anywhere.
Sudden accelerations waste a lot of fuel. “Gunning” the gas to leave a green light just to brake as you come up to the next red one isn’t going to get you there any faster. But it will reduce your fuel efficiency by close to 40%.
Don’t forego the AC. It does have an impact on your vehicle’s fuel economy, but it’s worth the trade-off to keep the driver more alert.
It’s not recommended to rely on your fuel tank warning light to prompt a visit to the gas station. Your driving needs during those last couple of gallons could have you on empty faster than you think.
Want to learn more? Here are a few fuel mileage myths debunked over recent years.
Myth #1
You have to drive a small car to get good fuel economy. FALSE.
For the 2021 model year, more than half of the top ten most efficient vehicles (the list that excludes EVs and PHEVs) are midsized or large cars.
Gas tanks are underground, so they remain at that temperature as you fill up at the pump. The outside temp has very little impact on the temp of the gas, so more evaporation as the day gets warmer is highly unlikely.
Myth #3
A vehicle’s fuel economy decreases significantly as it ages. FALSE.
Vehicles that are 10 or even 15 years old will experience a little decrease in fuel economy if properly maintained.
Myth #4
Putting your tailgate down will make your truck more aerodynamic. FALSE.
If you own a pickup truck, leave the tailgate up! When the tailgate is up, a vortex is created in the bed which forces air coming over the cab to stay above the bed. If the tailgate is left down, the air enters the bed and creating additional drag.
Getting better gas mileage will put more money back in your pocket. If you are looking to save even more this summer, check out these tips to lower your cooling costs.
It may be hot, but chances are it’s not hot enough to fry an egg on the hood of your car. That’s just one of the many myths you might hear about hot cars. While such legends ] are fun to think about, some myths can be dangerous if believed.
The more you know about the truth about hot cars, the better you are able to stay safe this summer
Below are eight common hot car myths. We’ve also added steps you can take to protect your car, your kids, and your pets as the temperatures soar this summer. Here are the myths- debunked.
Myth #1
It’s only 10 minutes. It’s fine to leave the kids or the pets in the car.
You would be surprised at how quickly the inside of a parked car heats up. In just 10 minutes, the temperature can rise 20 degrees. Cars can reach dangerous levels quickly. It could be 60 degrees outside, but the inside of the car could be up to 100 degrees due to the windows functioning like a greenhouse and trapping the heat inside.
Don’t leave anyone in the car, especially children and pets who may be vulnerable to the heat. Children’s bodies cannot cool themselves as well as adults. Dogs can only cool themselves by panting. Even if you think it’s not that hot out, it’s best to err on the side of caution. What about if the air conditioning is running? That’s not a good idea either. There have been instances where the compressor has failed or dogs or children have bumped the controls, switching from cool to heat. There is never a safe way to do this so make alternate arrangements for child and pet care. If you see a child or pet in a hot car, call 911. It may just be a lifesaving call.
Myth #2
Leave the window cracked open to keep the car cool when you park.
You might think that opening the window a crack will help keep the temperature at a reasonable level. Surprisingly, there is just about a 2-degree difference between a closed window and one that’s cracked open. Plus a slightly open window can be an invitation to car thieves. It’s not worth risking a theft of your car or endangering anyone or anything inside.
If you’re parking your car, and you’d like to keep it cool, try these tips.
Park in the shade or, if possible, in a garage.
Use a sun shield for your windshield.
Cover the interior with light-colored fabric.
Consider a solar-powered ventilation fan.
Finally, tinted windows can make a difference (but check first to see the rules in your state. Not all locations allow them)
Myth #3
You can save a lot of money by rolling down the windows and not using you’re a/C.
Want to save money in the summer and be more fuel-efficient, just sweat it out, right? Wrong. While blasting your air conditioner in the summertime does slightly increase gas usage, it is not enough that you would even notice. And while most people think all they have to do is roll their windows down so they do save that small percent of gas, rolling your windows down at high speeds can also reduce your fuel economy. This is because of the aerodynamic drag (wind resistance) it creates, making your vehicle use more energy to push through the air
Remember a hot driver is a distracted driver. So, don’t be afraid to use your AC. If you want to get the most out of your fuel this summer, roll your windows down when you are driving at lower speeds or when you first get into your vehicle to let the heat out and use your A/C (at a consistent temperature) when you are driving faster.
Myth #4
Only neglectful parents forget their child in a car.
You hear stories of babies or young children being left in cars with tragic endings. You might assume that those parents who would forget their children are bad parents. That’s not the case. It could easily happen to anyone.
Follow these tips so that you don’t put yourself or your child in this dangerous situation.
Keep an important item in the back seat with your children such as a work ID, purse or wallet, or cell phone.
Put your child’s stuffed animal, diaper bag, or other items in the front passenger seat as a reminder.
Ask your child’s caregiver to contact you if your child does not arrive at a certain time.
These steps will help keep everyone aware—and safe.
Myth #5
You can’t do anything if your car overheats.
A vehicle can overheat for a number of reasons, but usually, it is because something is wrong with the cooling system. If you don’t take the proper action your engine could become permanently damaged. If your car overheats, don’t just pull to the side of the road- there are other steps that you need to take.
First, turn off the A/C and crank up your heat. We know this sounds bizarre in the summer, but it will pull heat away from your engine and give you time to pull over to a safe location. Next, shut off your car for about 15 minutes. Keep an eye on your temperature gauge and make sure it starts to drop. If you haven’t already, this is where you will need to check and add your coolant, if needed. Finally, after giving it a few minutes rest, restart your engine and take it to your local mechanic.
Myth #6
If it’s hot enough, your car window can shatter.
Unless your windshield has previous damage, you don’t have to worry about the glass shattering. But if the conditions are right, it could crack. Glass will expand when it’s hot and contract when it’s cold. Big swings in temperature can cause stress cracks, cracks that suddenly appear for no apparent reason.
You can prevent stress cracks in the future by
Avoiding large changes in temperature such as blasting the air conditioning in a hot car.
Parking in a garage to reduce heat exposure.
If you’re washing your car on a hot day, try lukewarm water instead of cold for less of a temperature difference.
If you do get a stress crack, get it fixed as soon as possible. Check with your insurance provider to see if your policy will cover stress crack damage.
Myth #7
You need to fill up your gas tank in the morning
Many people think that you should fill up your gas tank in the morning when it’s cooler outside because gasoline will expand when heated. Meaning your get more energy per gallon in the early morning hours than you would later in the day when the temperature rises. This is false.
Not only does the energy content of gasoline stay the same in varying temperatures, filling stations store their gas in underground tanks. So the temperature of the gasoline coming out of the pump varies very little throughout the day. No matter what time you get gas, even in extreme heat, you will be getting the same energy content.
Myth #8
The heat won’t have a lasting effect on how your car runs.
Excessive heat can affect your car in the long term. Hot air in your tires causes them to expand, and they could over-inflate. The heat thins your engine oil so it doesn’t lubricate as well. High temperatures cause battery fluid to evaporate, which can weaken batteries or speed up the corrosion process.
Follow these tips to protect your car this summer.
Monitor your tire pressure and watch for overinflation.
These myths are proof that you shouldn’t believe everything that you see or hear. ( And as for debunking the” frying an egg on a hot car hood” myth, it has to be about 158 degrees Fahrenheit before eggs even start to cook. That egg can also damage the paint surface and turn into an expensive repair).
Knowledge is power, especially when it comes to your vehicle. Use yours wisely and have a safe summer.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
