Save Savvy: Tips for Calculating the Cost of your Retirement

When it comes to planning for the future, one of the main concerns for most people is saving enough money for retirement. With social security, inflation, and the rising cost of health insurance, there are many factors that determine the amount that is needed once entering the golden years. To determine the amount you'll require for retirement with accuracy, there are a few tips to follow to ensure that you can live comfortably.

Look at the Tax Rate

When calculating your retirement, it's important to consider how your money will be taxed. It may be easy to look at a marginal tax bracket, but your income will likely be taxed less and in the 25 percent tax bracket. Use an effective tax bracket rate online rather than depending on a marginal tax bracket to ensure that your numbers are accurate.

Consider Inflation

The cost of inflation will affect how much you'll need to live off of during retirement and should be accounted for to ensure that you can keep up with the rising cost of living. According to Forbes.com, the cost of living in your first year of retirement will likely increase by the fifth year of your retirement. Use an inflation rate of three percent and multiply your income from the prior year by 1.03.

Factor in Assisted Living

Although you may currently be healthy, it can be difficult to expect what age will bring once entering retirement. When calculating how much money you'll need in the later years of life, factor in the cost of assisted living or a live-in nurse to ensure that you receive the assistance needed if your physical or mental health declines according to Sunshine Retirement community.

Determine the Rate of Return

Most people use five to 12 percent of average annual returns after investing during their life, but there are a few factors needed to determine an accurate rate of return and how it will impact what you'll have in retirement. Consider the investment time period and if the rate of return takes inflation into account.


When it comes to calculating the cost of retirement, there are a few factors that will determine how accurate you come to finding the cost of leaving the workforce. Although it's easy to consider the cost of housing, utilities, and general expenses, there are a number of other influences that determine how much you'll need to live comfortably and enjoy the fruits of your labor. Look over here to find out more information about how much living in a retirement community costs.

Mortgage FAQ For First-Time Homebuyers

When you venture out into the world of the first-time homebuyer, it stands to reason that you’ll have a lot of questions during the process. Most first-time homebuyers don’t know much, if anything, about the process, the terms or how to get the best deal for themselves.

Everyone knows that buying a home is a big financial obligation, so here’s a quick mortgage FAQ for those of you doing it for the first time.

Where Should I Go?

This is often the first questions a first-time homebuyer has about mortgages. With only a little searching you can find countless options and they all look tempting. So, what do you do? Don’t rush, that is the first thing, then decide if you think bank, credit union, private lender or trust company would be the best choice. Sometimes, seeing a mortgage broker will point you in the right direction.

What Is Mortgage Pre-Approval?

A mortgage pre-approval is a process where your lender approves you mortgage at a specific amount ahead of time. This approval is based on several factors and it helps homebuyers know where to look, because they have a general idea of what they’ll be able to afford and what they won’t.

What Is a Down Payment?

Even the most novice of homebuyers has heard the term “down payment” before. Just as it seems, a down payment refers to making a lump sum payment upfront, that will come off the total price of the home. A conventional mortgage requires a 20 percent down payment, while a high-ratio mortgage needs 5 percent.

How Much Can I Afford?

Your pre-approval amount can often give you an indication of how much you can afford, but not always. Sometimes, the lifestyle you want isn’t really possible if you assume a mortgage for that much. Some lenders or brokers have calculators that will help, but it’s really about working out the money in vs. money out and see what number works best for you and your family.

What is a Fixed Mortgage Rate?

A fixed mortgage rate comes with a static interest rate for a specific amount of time, or term. The most common term is five years, and this means you don’t have to worry about the interest fluctuating during that time.

What is a Variable Mortgage Rate?

On the other side, a variable mortgage rate is a mortgage that does not have a rate guarantee. The rate you pay fluctuates according to the lenders Prime rate. Sometimes this is good and sometimes it isn’t, based on which direction that Prime rate moves.

What are Closing Costs?

Closing costs are part of every home purchase, and they are payable after the purchase is finalized. Some of the most common include:

• Legal fees and disbursements
• Title insurance
• Land transfer tax
• Property survey
• Property tax adjustment

Home inspection, moving costs and other miscellaneous expenses like tools and appliances will also be part of the process. 

What Do Amortization & Term Mean?

Amortization is the period of time in years that it will take you to pay off your mortgage in full. Term is the length of time your interest rate type (fixed or variable) will last. When the term is over, you pay the balance of the mortgage or renegotiate a new term under the current market conditions.

Author Bio:
The author of the article is Jeremy Benson. He has been writing about finance, mortgage and Canadian law since 7 years. Blogging is one among his greatest passions. Follow him on Twitter@jeremybenson19.

5 Unique Ways to Make Extra Cash

Times aren’t like they used to be. The economy and job market are constantly changing. Many people are struggling to find employment and make a decent living. For some, this task seems almost impossible and nearly everyone is strapped for cash in these days after the deflated credit bubble. Getting a part-time job or babysitting are common ways to make money, but if you're short on time, try these unique ways to make extra cash.

1. Clean out your garage on Craigslist. The yard sale is being rendered obsolete in favor of selling unwanted items on Craigslist. The advantages are that you do not have to sit for hours in front of your house waiting for people to drop by. Instead, list your items on Craigslist, including a description of the item and a picture. You can have people contact you by phone, text or email. Before you list, take a look at what other people are selling similar items for to get an idea of a price.

2. Recycle scrap metal. Scrap metal makes a surprising amount of money at a salvage yard and nearly anything made of metal is eligible. Take a look at unused pipes, broken auto parts, garden tools, old weight sets, playground equipment and even something as large as an old camper. As long as it's metal, you can probably sell it for scrap. If you have auto parts that are in good shape, sometimes auto shops or auto maintenance stores will buy them from you, otherwise you are better off taking them to a junk yard.

3. Make stuff. It's easy to sell homemade items on the Internet these days, whether it's via Craigslist or a shop like Etsy, anything you can make that is unique and quality could rake in some extra cash. Sewn or knitted craft products such as quilts, pillows, stuffed animals or hats and scarves sell well. Another possibility is handmade soaps, body sprays, oils and perfumes. Craft jewelry such as beads and the like are also popular. If your expertise lies more in the tool realm, you can make barbecues, outdoor fireplaces or smokers.

4. Online crowdsourcing. Crowdsourcing has grown hugely in the last few years and there are now a myriad of sites available to perform a variety of small tasks such as surveys, research, translation and more. Sign up for one of these sites and make a habit of spending an hour or so every day getting some extra cash.

5. Sell your old video games. Ever think about selling your old video games? Did you know you can sell your old video games online? For example, you can sell Xbox 360 games online. You can also sell other games from Nintendo, PlayStation or other various counsels. Selling your old games can make you some extra cash. Some games for obsolete systems might even be considered rare and classic and can make you some extra money.

You can do most of this list in your spare time, days off or on weekends to easily supplement your cash flow. These are also odd jobs that your family can help you with or teach to your children to help bring in extra money for your family. They may not sound fun, but it is better to be bringing in some money rather than no money. There are also many other options out there as well. Just make sure you do what is best for you and your family, and what you are the most talented to do and you will be bringing in extra money in no time.

Six Alternatives to Filing for Bankruptcy

Filing for bankruptcy is a drastic measure, one which could have an impact on your financial future for decades. For most people, bankruptcy is only used as a final option. Despite this, bankruptcy should not be considered a financial death sentence—on the contrary, declaring bankruptcy often offers a second chance to those who would not otherwise have received one. If you’re considering filing for bankruptcy, it’s possible that there are some other options to pursue before you go forward with a drastic action. Below are six different alternatives you may want to consider before filing for bankruptcy.

1. Use a Credit Counseling Agency

Before declaring bankruptcy, most people try to manage their debt. There are many credit counseling agencies that are, in fact, nonprofit organizations that just want to help. Such an agency can help you negotiate with your creditors and improve your financial situation. It’s always a good idea to seek professional advice for something as important as personal finance, so consider visiting a counselor before deciding on a repayment strategy.

2. Negotiate with Creditors on Your Own

In some cases, you don’t necessarily have to go through a third party to renegotiate your debt. If it looks like you may have no other way to pay off your bills, certain creditors may be willing to alter your payment schedules to give you more leeway. This can be difficult, however, and seeking professional assistance for negotiations is typically the best way to go about approaching creditors.

3. Sell Some of Your Property

If you file for bankruptcy, you may end up losing many of your assets. With this in mind, it may be better for you to sell your property on your own terms. For example, if you have a boat you have not used in many years, selling it to make a large payment on your significant credit card debt may be a good idea. Holding a yard sale and selling off many of the unused items lying around the house is a great way to put some extra money towards your debt payments and get rid of some clutter. 

4. Borrow from People Other than Creditors

While borrowing more money to pay off debt may seem illogical, it may be a good idea in certain cases. For example, you could borrow some money from family or friends. They are likely to be far more lenient than creditors. Just make sure to eventually pay them back to avoid strained relationships.

5. Slash Your Living Expenses

If a lot of your income is going to things other than debt, you can probably make some sacrifices to redirect some of those funds towards paying your debt down. Get rid of all unneeded expenses. It may be tough to only pay for the bare necessities for a while, but it will be worth it in the long run. Some of the most overlooked expenses are recurring automatic payments—cancelling your subscriptions to paid services that withdraw regularly from your bank account can save you hundreds of dollars every year. 

6. Consolidate Your Debt

Debt consolidation means restructuring all your debts into a new payment program. Debt consolidation can make paying bills less stressful and far easier to repay. It will also likely be cheaper than paying all of them off individually.

Though there are some good alternatives to declaring bankruptcy, for some it is the only way to manage their debt. A Mississauga credit counselor from Paddon & Yorke Inc advises those considering bankruptcy to first seek counseling to assess the options available to them. Being deep in debt is a difficult situation, but keep in mind that there are avenues available to help you recover your financial standing.