Horizons Insurance andFinancial SvcsMauricio GiraldoDirector10620 Griffin Road -Suite 103Cooper City, FL 33328954-862-1735925-588-4078mauricio@thehorizonsfinancial.comwww.thehorizonsfinancial.com

Horizons - June 2019Managing Your Money in a Gig EconomyHow Loneliness Can Affect Your FinancialConditionHow long could it take to double your money?As a business owner, what should I knowbefore adding a financial wellness program?

Horizons - June 2019Planning Your FutureTen Money-Saving Travel Tips

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Dear clients and friends,I hope all is well with you and your families.June is here and it brings with it lots ofchanges to our regular routines (end of theschool year, less traffic, summer breaks,warmer temperatures, beginning of thehurricane season for us in the EastCoast/Atlantic region, longer days, etc)which might be exciting and stressful insome cases. No matter what, alwaysremember to plan ahead, be on top of yourgame, make sure your insurance policiesare up to date and that your financial plansare on track for a successful second half ofthe year. Most importantly, make sure youenjoy some precious time with your lovedones.As always, please do not hesitate tocontact us should you need any assistancewith your insurance and financial matters.Have a great month!!Mauricio Giraldo

Exploring the worldsounds fun andexciting, but it canbe expensive totravel. However,there are ways toexperience the tripof your dreams on abudget. Follow thesemoney-saving tipswhen planning your

next vacation to help make it more affordable.1. Join a frequent flyer program. It willprobably take time to accumulate frequent flyerpoints, but the perks can be worth it. Dependingon the program, rewards can include cheaperfares, upgrades, free companion tickets, andmore.2. Be flexible with scheduling. Timing yourticket purchases wisely can help you save big.Aim to travel during days of the week whenairfare tends to be cheaper. Similarly, try to flyat unpopular hours (e.g., early morning orred-eye flights) for more affordable pricing.Avoid traveling during peak holiday seasonsand school breaks, and be aware of big eventssuch as conferences or trade shows that tendto make hotel prices soar.3. Comparison shop. Research online to findthe cheapest flights to your desired destination.Mix and match your airlines and airports for thebest rates — you might discover that twoone-way tickets are cheaper, overall, thanpurchasing one round-trip ticket. Considerall-inclusive options, since the up-front priceyou pay is usually the total cost of your trip.4. Pack smart. Checked baggage fees canrack up quickly, especially if you exceed anairline's weight limit. Try to stick with carry-onluggage or just remember to pack lightly toavoid paying extra for overweight bags.5. Consider alternatives to hotels. Lower-costlodging options can include hostels,home-exchange programs, B&Bs, and vacationrentals. But they do require careful research.Find a match that best suits your needs bynarrowing down potential options according to

your budget, number of guests, length of stay,and space requirements. Look at ratings andreviews to determine whether a particularlocation and property will work for you.6. Download apps to your smartphone. Takeadvantage of free travel apps that can help yousave money on things like gas, car rental,airfare, hotels/accommodations, and more. Findand download messaging apps that your familyand friends also have so you don't have to payfor text messages you send/receive whiletraveling.7. Reduce mobile roaming charges. After arelaxing vacation, you probably won't want tocome home to an expensive phone bill due todata roaming charges. Fortunately, manymobile networks offer data roaming deals, socheck with your phone's carrier to learn aboutpackages and discounts that may be availableto you. And before you embark on your travels,adjust settings on your phone to disable dataroaming as well as software downloads. Appand phone updates are important, but most canwait until you are connected to Wi-Fi, which isavailable for free at many places.8. Find free activities. Regardless of whereyou're traveling, it's likely that there are plentyof fun and free or low-cost activities.Sightseeing, walking, browsing stores, andattending local concerts/fairs/cultural events aregreat ways to explore a new place withoutspending too much (or any) money.9. Act like a local. Blend in with the locals bydining out and shopping at stores located awayfrom popular tourist streets. Prepare your ownfood when it's practical, and don't shy awayfrom street food — it's less expensive than asit-down restaurant.10. Save on car rental. If possible, stick withpublic transportation on your trip. But if youmust rent a car, book the cheapest option youcan find online. You can save even moremoney by choosing to forego car rentalinsurance, but you'll want to review yourexisting auto insurance policy first to see if itcomes with some form of coverage for rentals.

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Managing Your Money in a Gig EconomyAccording to the Bureau of Labor Statistics,16.5 million people rely on contingent oralternative work arrangements for theirincome.1 Often referred to as the "gigeconomy," these nontraditional or contingentwork arrangements include independentcontractors, on-call and temp agency workers,and those who sign up for on-demand laborthrough smartphone apps.If you are a contingent worker, you need to payclose attention to your finances in order tomake up for any gaps in earnings that mayoccur between jobs. In addition, you'll have toplan ahead for health-care costs, taxes, andsaving for retirement, since you will have toshoulder these expenses on your own. Thefollowing are some tips for managing yourmoney in a gig economy.Prepare for slower periods betweenjobsWhile establishing a cash reserve is an integralpart of any financial strategy, it is especiallyimportant for contingent workers. You'll want toset aside enough money to cover unexpectedexpenses and large bills that may come dueduring slower months between jobs. A goodstrategy is to make it a habit to deposit aportion of your income in your cash reserve.Make sure you maintain good creditEven a robust cash reserve might not be ableto weather a significant downturn incontingency work. That's why it's important forcontingent workers to have access to credit tohelp them get through leaner times. Make surethat you maintain a good history by avoidinglate payments on existing loans and paying offyour credit card balances whenever possible.Come up with a budget...and stick to itBecause your income flow fluctuates, you'llneed to come up with a budget a bit differentlythan someone with a regular income. Your firststep should be to determine your monthlyexpenses. If it helps, you can break them downinto two types of expenses: fixed anddiscretionary. Fixed expenses are expensesthat will not change from month to month, suchas housing, transportation, and student loanpayments. Discretionary expenses areexpenses that are more of a "want" than a"need," such as dining out or going on avacation. Once you come up with a number,you should determine how much income youneed to keep up with all of your expenses.For a contingent worker, it's especiallyimportant to stick to your budget and keep yourdiscretionary expenses under control. If you are

having trouble keeping on track with yourbudget, consider ways to cut back on spendingor find additional sources of income to make upfor any shortfalls.Consider your health insurance optionsUnfortunately, as a contingent worker you don'thave access to an employer-sponsored healthplan. However, you do have health insuranceoptions. If you are a recent college graduateand still on your parents' health insurance plan,you usually can stay on until you turn 26. If youare no longer on your parents' plan, you may beeligible for a government-sponsored healthplan, or you can purchase your own planthrough the federal or state-based HealthInsurance Marketplace. For more information,visit healthcare.gov.Plan ahead for taxesIn a traditional work arrangement, employerstypically withhold taxes from employees'paychecks. As a self-employed worker, you'llhave to plan ahead for federal and possiblystate taxes so you don't end up with a large billduring tax time. The IRS requires self-employedindividuals to make quarterly estimated incometax payments, so make sure you set enoughmoney aside each time you get paid to gotoward your tax payments. Becausecontingency income fluctuates from month tomonth, the IRS allows you to make unequalquarterly payments. In addition, you'll beresponsible for paying a self-employment tax,so you need to account for that as well. Formore information, visit the IRS website atirs.gov.Don't forget about retirementWhile being self-employed has benefits, it alsocomes with tough challenges. In particular, alack of structured benefits, such as anemployer-sponsored retirement plan, can leadcontingency workers to end up sacrificing theirretirement savings. And even though anyonewith earned income can set up an IRA, thecontribution limits are relatively low — $6,000 in2019 ($7,000 if age 50 or older).Fortunately, there are some options that mayallow you to make larger retirementcontributions. Consider contributing to a solo orindividual 401(k) plan (up to $56,000 in 2019,not counting catch-up contributions for thoseage 50 and over) or a SEP IRA (25% of yournet earnings, up to $56,000 in 2019).1 U.S. Bureau of Labor Statistics, Contingent andAlternative Arrangements Summary, June 2018

As a contingent worker, youmay be eligible for a numberof tax deductions (e.g.,start-up expenses, mileage),so be sure to keep goodrecords. If you have multiplegig jobs, consider using alog to keep track of yourincome and work expenses.

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How Loneliness Can Affect Your Financial ConditionAccording to a Pew Research Center survey,one in 10 Americans reports feeling lonely orisolated from others all or most of the time.While this number may not sound significant, itis alarming, considering that loneliness can alsotake a toll on your financial situation.A link between loneliness anddissatisfactionThe Pew survey found that frequent lonelinessis linked to dissatisfaction with one's family,social, and community life. People who saythey are somewhat or very dissatisfied withtheir personal financial situations aresignificantly more likely to feel frequentloneliness than those who are satisfied withtheir finances (17% vs. 5%). And 14% of peoplewho say they don't have enough income to leadthe kind of life they want report feeling lonely orisolated often, compared with just 5% ofindividuals who have enough income to leadtheir ideal lives.1

A relationship to financesAlthough the Pew survey did not draw anyspecific conclusions, it indicated a link betweenloneliness and satisfaction with one's financialsituation, suggesting how frequent lonelinesscan lead to financial problems.Specifically, loneliness can cause a lack ofawareness about major financial issues, as wellas an increased vulnerability to fraud. Lonelypeople have fewer opportunities to discuss

finances with others face-to-face. This makes iteasier for scam artists to take advantage ofthem by faking emotional support while stealingmoney.Research has also linked loneliness andworsening chronic conditions. One study foundthat social isolation is associated with anestimated $6.7 billion in additional federalMedicare spending annually. As social isolationincreases, chronic illnesses can grow moresevere and result in higher medical bills andstress levels. This can have a harsher impacton those trying to cope alone.2

A little less lonelyFortunately, there are ways to fight againstloneliness and its effect on your financialcondition. Start by expanding your social circle.Seek volunteer opportunities that will introduceyou to new people as well as help you giveback to your community. Establish routines thatwill keep you busy and develop healthy habitsthat don't cost money, such as spending timeoutdoors, joining a weekly group, reading, andmeditating. Consider seeking guidance from amedical professional who may be able toconnect you with local resources to integratemore social engagement into your life.1 Pew Research Center, December 3, 20182 AARP, "Medicare Spends More on Socially IsolatedOlder Adults," November 2017

According to the Pew survey,people who say they aresomewhat or very dissatisfiedwith their personal financialsituations are significantly morelikely to feel frequent lonelinessthan those who are satisfiedwith their finances (17% versus5%).

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Horizons Insurance andFinancial SvcsMauricio GiraldoDirector10620 Griffin Road -Suite 103Cooper City, FL 33328954-862-1735925-588-4078mauricio@thehorizonsfinancial.comwww.thehorizonsfinancial.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

Horizons Insurance and FinancialServices, Inc does not providelegal, tax, or variable investmentadvice.

As a business owner, what should I know before addinga financial wellness program?Financial wellness programsare gaining traction amongemployee benefit offerings,and for good reason: In an

International Foundation of Employee BenefitPlans (IFEBP) survey, 96% of employers saidemployees' personal financial issues had animpact on their overall job performance. Ifyou're thinking of adding a financial wellnessprogram to your benefits lineup, consider thefollowing points.Understand what "financial wellness" is. In2014, the Consumer Financial ProtectionBureau (CFPB) conducted a study to helpmeasure the effectiveness of financial literacyprograms. As part of their initial work,researchers sought to define financialwell-being. After conducting nearly 60 hours ofopen-ended interviews with consumers, studyauthors concluded that financial well-being isachieved when people (1) are able to controlday-to-day and month-to-month finances, (2)have the capacity to absorb a financial shock,(3) are on track to meet their financial goals,and (4) have the financial freedom to makechoices that allow them to enjoy life.

Assess employee concerns. The IFEBP alsofound that 40% of employers report anincreased demand for financial education.Toward this end, Prosperity Now, a nonprofitorganization dedicated to helping all Americansprosper, recommends that employers conduct aneeds assessment to determine the mostpressing financial concerns of their workforces.While the IFEBP said the top three mostpopular financial topics covered through suchplans are retirement benefits, pre-retirementplanning, and budgeting, a workforcecomposed of relatively young employees maybe more concerned with repaying student loansand saving for a down payment on a first home.To position your financial wellness program forsuccess, be sure it's designed to tacklechallenges that are specific to your primaryemployee demographic.Determine how you will measure yoursuccess. Prosperity Now recommendsconsidering the following metrics: participationrates; financial well-being as measured by theCFPB's Financial Well-Being Scale; employeeretention, satisfaction with employer, morale,and stress levels; and company cost savings.

How long could it take to double your money?If you're saving for college,retirement, or a largepurchase, it can be useful toquickly calculate how ananticipated annual rate of

return will affect your money over time. To findout, you can use a mathematical conceptknown as the Rule of 72. This rule can give youa close approximation of how long it would takefor your money to double at any given rate ofreturn, assuming annual compounding.To use this rule, you simply divide 72 by youranticipated annual rate of return. The result isthe approximate number of years it will take foryour money to double.For example, if your anticipated annual rate ofreturn is 6%, you would divide 72 by 6. Yourmoney can be expected to double in about 12years. But if your anticipated annual rate ofreturn is 8%, then your money can be expectedto double in about 9 years.The Rule of 72 can also be used to determinewhat rate of return you would need to doubleyour money in a certain number of years. For

example, if you have 12 years to double yourmoney, then dividing 72 by 12 would tell youthat you would need a rate of return of 6%.Another way to use the Rule of 72 is todetermine when something will be halvedinstead of doubled. For example, if you wouldlike to estimate how long it would take forannual inflation to eat into your savings, youcould divide 72 by the rate of inflation. Forexample, if inflation is 3%, then it would take 24years for your money to be worth half its currentvalue. If inflation jumped to 4%, then it wouldtake only 18 years for your purchasing power tobe halved.Although using a calculator will give you moreprecise results, the Rule of 72 is a usefulshortcut that can help you understand how longit might take to reach a financial goal, and whatannual rate of return you might need to getthere.

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