Issue link: https://www.ahpindiestylist.com/i/1316647
N ot a m e m b e r ? J o i n at a s so c iate d h a i rp rofe s sio n a ls .c o m 53 Term Life Insurance This option is simple and affordable. It is the best way to have coverage and feel more secure. You can buy this policy for a term, meaning a specific amount of time, up to 30 years. Here's an example: If you buy a term life policy when you are 35 for a 30-year term, your policy will expire when you turn 65 and will no longer be valid. So when would I need this? If you have a business partner or possibly a child in college or a child who plans to go to college, a term life policy would give you a great feeling of security. If you have a business partner or life partner who can't afford the lifestyle you currently have, a term life policy can close that gap. Finally, it may give you a peace of mind that will help you sleep better at night. It definitely did for me! Whole Life Insurance This policy is a permanent policy that does not expire, nor is it limited to a term. Whole life insurance tends to be five to 15 times more expensive than term life insurance; however, you may be able to enjoy a cash value option upon retirement. This means you will have a guaranteed rate of return. When is it good to choose this option? If you are looking for strong life insurance options that give a guaranteed payout, whole life insurance is fantastic for planning for the future—and providing security for yourself and your loved ones. Liability Insurance In addition to protecting yourself with life insurance, you also want to protect your retirement with business liability insurance. Obviously, the best option is from Associated Hair Professionals (AHP)! If an accident should happen behind the chair, you don't want to risk losing your retirement, or more, in a lawsuit. GRATUITIES AND INVESTING Who doesn't love a good tip? Crazy people! The holidays are a perfect time to feel the love and reinvest some of those unexpected, generous client tips. Here are a few pointers on making your gratuities stretch further: 1. Buy stock options. Penny stocks are a real thing! You can have very little and still invest. Don't let the concerns of not having a bulk amount saved get in your way to saving for retirement. I personally found Charles Schwab to be a great asset to me when I was starting out. Of course, talking to a financial adviser is always a great step in the right direction. Keep in mind, though, starting with a little is still a start. 2. Pay off high-interest debt, such as credit cards or car payments. This practice will lead you to a better future and provide you with more to add to your retirement later in life. 3. Bundle your gratuities. Save your tips for the month, and then find a way to spend the amount wisely. PENNY-PINCHING TIPS Are you a savvy business owner? Let's find out! Assuming you are an independent stylist, you save for business sales tax and income tax throughout the year. Why not capitalize on making a little interest in the meantime? The key is to work smarter, not harder, and start saving those pennies for a rainy day. Here are a few ways you can do this: • Open a savings account. • Invest in bonds. • Contribute to a money market account. I get it—planning for the future can be daunting, but push through and prepare yourself for retirement success in five simple steps: 1. Talk to a financial advisor. 2. Start your IRA retirement plan. 3. Find a life insurance agent and a policy that is right for you. 4. Sign up for AHP independent stylist liability insurance. 5. Consider all the ways can you start your retirement by saving a little each day. Stay tuned next time for more dirty little secrets to help you turn your mess into success! Notes 1. Internal Revenue Service, "When to Start Receiving Retirement Benefits," 2020, ssa.gov/pubs/EN-05-10147.pdf. 2. Internal Revenue Service, "Traditional and Roth IRAs," 2020, irs.gov/retirement-plans/ traditional-and-roth-iras.