Tools and Tips to Make Saving for Retirement Easy

With all of the recent changes in social security and government policy concerning retirement, many people are placing renewed importance in organizing themselves for their retirement to ensure that when ready, they can retire comfortably and with few financial worries. 

Saving for retirement during an economic crunch may seem particularly difficult, but there are many things you can do even now to safeguard your retirement. Consider using some of these tips to plan your retirement:

Understand your situation.

Every person has a unique set of circumstances that characterize their work and personal lives and that will necessarily affect their retirement plans. Before you attempt to draft a concrete retirement strategy, you must have a complete picture of your situation. 

Keep in mind that it is estimated that most people will need to have between seventy and ninety percent of their current, pre-tax salary available every year during retirement to maintain their accustomed standard of living. 

How many years do you have before you would like to retire? How much money will you need to sustain your lifestyle? Will you have any dependents to care for at this time? 

How will you cover medical costs and emergencies? Think about the whole picture before deciding on a plan of action for your retirement.

Know what options your employer can offer you.

Many employers offer their employees the options to participate in a 401(k) retirement plan whereby a portion of the worker’s earnings is automatically deducted from the paycheck to be placed in a separate retirement fund that is then matched in some capacity by the employer. 

These plans are a great saving tool, essentially providing you with free money from your employer that will increase your retirement savings and significantly affect the amount of interest you will earn on your investment. 




The longer you contribute to a 401(k) plan without touching the money, the higher the interest earned and the more money overall you save for your future. Some companies have their own types of retirement savings plans, all of which still use similar devices to increase your savings. 

If your employer does not currently offer any savings options, discuss the possibility with them. Because of the investment capacity of retirement plans for companies, beginning a retirement program is an attractive option for them as well. Work with your employer to find a solution that is beneficial to you both.

Make your own IRA.

An IRA is an Individual Retirement Account that anyone can create and place up to $5,000 in when under 50 and even more when older than 50. These accounts offer lucrative interest rates and many tax benefits to enrollees. There are two main types of IRAs you can open that affect the amount that is withdrawn every month and the tax benefits associated with the accounts - a traditional IRA or a Roth IRA. 

The primary differences between these types involve the way the investment is taxed before, during, and after deposit and withdrawal, with Roth IRAs being somewhat more flexible than traditional IRAs. For more information on IRAs, see CNN Money.

Invest.

In addition to these retirement saving options, you should also look into common investment tools like stocks, bonds, and CDs. These options vary in the amount of risk and profit they offer investors and should be chosen based on these factors and the circumstances of the individual investor involved. 

Most of these options are for long term investment, meaning the money involved will be unavailable for years after the initial investment, and thus should only be used when you are sure you will not need this money any time soon. If you already own stocks, you can look into covered calls. What are covered calls? 

They are an option that allows you to capitalize on the value of your stocks continuously without selling ownership. You can then use this money to make further investments that can increase your overall investment portfolio.

Even if retirement may be decades away, creating a retirement plan now is the best way to ensure that you will be ready to comfortably retire when the time comes. Take advantage of your employer’s retirement plan options, open your own IRA, and invest in a variety of manners to create a strong retirement plan for yourself and your family. For more tips, see the US Department of Labor.

Take Charge of Your Money in Your 50s

Keep Reading to Learn More About Saving and Investing in Your 50s

Photo credits: FaceMePLS

If you want to avoid ending up on the streets begging for money, it's important to take your finances seriously when you're in your 50s. It would be best if you already have your finances under control at this age - not to mention a sizeable savings - but if you don't it's not too late to do something to protect your future. This can help you truly enjoy your golden years. 

Managing Your Money in Your 50s

Here are some specific tips and advice for anyone who is 50+ and is wondering about securing their future financially.

• Assets and Debts - The very first thing you need to do is make sure you have an accurate account of what you own as well as what you owe. Knowing this is the only way you're going to be able to decide what you need to do to specifically take charge of your money. 
• Save, Save, Save - You should be doing this your entire life, but if you're late to the party you need to get serious about saving as much money as you can. You can basically do this in two ways. You can increase your income in some way or you can cut down on your expenses. Some people find a combination of both is helpful. 
• Refinance - If you still have a mortgage on your home, it may be time to take a look at refinancing it if you can get better interest rates. Even a couple percentage points can make a huge difference in your monthly payments and how much you're able to save instead of paying interest. 
• Invest Wisely - In addition to saving in a normal savings account at the bank, it's a good idea to invest. However, you should do this wisely. Don't get greedy. If an investment opportunity sounds too good to be true, it's probably a scam. Just remember Bernie Madoff. People 50+ are getting close to retirement and may think about taking more investment risks, which isn't necessarily a good thing. 
• Cut Your Costs - This has already been mentioned, but you should also cut down on your expenses. Specifically, this can be as simple as not eating out as much or cutting down on the cable television costs by cancelling premium channels. Whatever you decide is right for you, do something to curb your spending a little so you can save even more. 

If you follow the advice above carefully, you're going to find that it's easier to take charge of your money situation when you're 50+ years old. Everyone's life is different, of course, but by your 50s you should be able to have all of your money problems figured out. If not, you should make financial independence and freedom a priority in your life before the situation gets out of hand.

Written by: Tammy Tantrunk likes the Synthetic Grass Warehouse because of all the different solutions they offer for artificial turf.

7 Steps to Wealth

The bills are piling up. You keep trying to save money, but every time you get a little nest egg going, something happens (a car repair, a broken appliance, etc.) to wipe it out. And to top it off, your employer has hinted at layoffs.

When times are tough financially, it can be difficult to even think about amassing wealth. You’re so busy trying to keep your head above water and pay off your debts that a life with a seven-figure bank balance may seem like nothing more than a pipe dream.

While almost no one becomes a millionaire overnight — and no, playing the lottery is not a legitimate wealth strategy — it is possible to rise above your circumstances and attain considerable wealth. All you need is a strong commitment to achieving your goals and some knowledge of the proper steps involved. 

1. Develop a Written Financial Plan

The first step to achieving any goal is to develop a plan. You wouldn’t try to drive to a destination in an unfamiliar city without a map or GPS, so why would you try to make it to a major “life destination” like considerable wealth without similar navigational tools? Regardless of whether you’re at the beginning of your career and earning an entry-level salary or already have some experience and the paychecks to prove it, you can change course and get on track to wealth. Meet with an experienced financial adviser and get professional advice and feedback on how you can meet your goals — and then act on those plans.

2. Eliminate Debt

As long as you are paying a significant portion of your income to someone else, you will struggle on the path to wealth. Live below your means, and never charge anything you can’t pay off in a month or two; some advisers suggest never charging anything you consume, including clothing, as you’ll be paying interest on it long after it’s outlived its usefulness. If you must finance a home or car (which most people do), don’t max out your budget. Choose the loan terms that allow you to eliminate the debt as soon as possible.

3. Make Your Money Work for You

One reason the wealthiest people are so well-off is they make their money work for them. Even if you invest a modest amount of money in the stock market, you can expect to earn a rate of return of around eight percent annually. As your investments grow, so will the amount of money you make. 

4. Start a Business

According to one study, almost three-quarters of all American millionaires are entrepreneurs. While it is possible to build wealth working for someone else, you are far likelier to have success when you are your boss.

5. Change Your Mindset

Many Americans, even those with steady incomes, operate under a “poverty mindset” in which they fear they could lose everything at any moment, so they must hold on to every penny they get. Or, they feel they will never attain the highest levels of financial wealth, so why even bother? They become complacent, and while they may be comfortable, they are never going to be wealthy. If you want to be wealthy, you have to think wealthy, and emulate the thoughts and actions of those people who have reached the upper echelons of wealth. 

6. Create Multiple Income Streams

Few millionaires have made all of their money from one income source. Most have income from multiple streams. When you’re earning money from multiple sources, you don’t have to panic when one dries up and you can better leverage your resources to keep the money coming. 

7. Save Money

The best way to amass wealth is to save money. An emergency fund is a must, should things go awry, but you should also find ways to save money wherever you can. The wealthiest people are not generally spendthrifts; while it’s easy to imagine them dropping thousands of dollars on shopping sprees and parties, most are far more careful with their money. As money comes in, make saving a priority. As your income increases, so should the amount that you are saving.

Becoming a millionaire takes hard work, perseverance and a focus on the goal at hand: a healthy bank balance. By changing your approach to money and taking cues from those who have already achieved that level of wealth, you can write your ticket into the “millionaires’ club.”

About the Author: Isabelle Fontaine holds a marketing degree and has started several successful businesses in the course of her career.

How to Manage Your Money Effectively With the Right Financial Planner?

Financial planners do help their clients in saving their money, making smart investments, and ultimately growing their money tree. They help in reaching a specific goal and assist in purchasing assets like a house, stocks, and ETFs.

Few financial planners are specialized in giving smart estate or retirement planning advice, while others consult for a wide range of economic and financial matters. It is always recommended to seek advice of the expertise financial planners, if you are planning your future at a young age.

How to Make Use of Planners in Reaching Your Goals?

The initial step you need to take is to note all your realistic goals. You need to list the short term, long term, and mid-term goals. You need to map up the objectives and the duration required for accomplishing them.

Short term goals include saving for buying expensive furniture, gadgets, honeymoon, car, and things that you can buy within 1 to 3 years of time. If you have children, tuition fee would be considered as mid-term goal and travel and retirement plans fall under the long-term goals.

You need to understand how to handle all the expenses as early as possible. Make sure that you do not spend almost all your earnings. Keep in mind that it is discipline, and you should practice this daily in order to reach your goals. 

Avoiding Debts

Avoiding debts is a part of budgeting. Avoid using more credit cards, which can increase the debts steeply. It could be pretty simple to swipe the card, and shortly we lose the hard earned money in the whole process. If we do not pay them on time, the debt could increase and you may finally end up clearing more debts.

However, you wouldn’t want to spend your hard-earned money unnecessarily right? So, financial planners will help you with great ideas when it comes to things like spending money via credit cards.

Financial planners help you in making decisions, which can benefit you more when it comes to the economic status. Hiring someone who’s expert in this arena will help you in avoiding killing what you saved. In this case, you need to choose the best planner to save yourself from unnecessary expenses. 

Hiring Honest Financial Planners

The person that you hire should be honest and trustworthy; since the planner deals with your money, make sure that you can trust him well. It does cause troubles if you have any concerns or doubts about the person you hire.

Finding someone who is proficient in this particular arena is pretty important. You need to browse through their portfolio and make sure that the concerned person has extensive experience the profession. Finally, make sure that you can afford their personal finance planning services, and that you’re not overpaying and putting a big dent on your budget as such, otherwise the whole point of hiring a financial planner would be defeated!

Negotiate

Learn how to negotiate before hiring him and don’t blurt out everything before finalizing things. If the planner has a personal website, you can always read though the information posted on the website, and get a pulse of his/her experience.

You can also read user comments in blog and then come to a conclusion whether to hire him/her or not. Taking a deeper look into the background of the planner will certainly help you in understanding more about the person, and making a smart decision.

Author Bio:Steve Martin is a personal finance planner who has been working at a reputed bank for past 8 years. Follow him on Twitter, or connect with Steve by dropping him a message through the comment box here.

Could Trading Be a Viable Option to Plan for Retirement?

Retirement is a fact of life for most working people, because there is going to be a time in your life when you will want to, or have to, leave your position of employment. It used to be traditional for companies to provide suitable pension plans for their employees, so that they had an income that paid them enough to live on in their old age. Also, there was a time when a state pension and other social security benefits were there as a safety net for those people who did not have their own private or company pension provision. However, with cutbacks in social security becoming more severe, coupled with the ever rising cost of living, social security benefits are no longer enough to cover the cost of living, for a lot of people. 

Making Personal Arrangements

The only other option is for people to make their own arrangements to ensure that they have enough money to give them a certain level of financial support, when they do retire. The range of options that are open to those people who are looking to make their own retirement plans can seem a little daunting at first glance, that is why it is important that you speak to a financial advisor who can help you find a financial plan that suits your situation.

Of course, you could simply keep working, and this could help, however, there is going to be a time when, depending on your job, you are going to reach an age where you are no longer able to perform your tasks with the necessary speed and competence. 

Investing In Your Future

When it comes to investing for your retirement, any financial advisor worth his salt is going to advise you to spread your investment across more than one scheme. This is good advice, because if you have all your money in just one scheme, and that scheme tanks, then you are going to lose most, if not all of your investment.

The one financial scheme that most financial advisors will tell you to invest in is stocks, as you can divide your portfolio across a number of different stock options. Stocks have the potential to offer big returns, however, they are also considered to be high risk, so it is important to get options trading education, from your financial advisor. Bonds are also an option; however, although these are very low risk, the payouts are going to be less than you would expect to receive from stocks.

Different financial advisors will give you different advice about how much of a percentage you should invest in stocks and bonds. However, most will advise you to keep your stock investment close to your age, so if you are 35 years old, you should be looking at using 35 percent of your portfolio, so when the time comes to retire, 65 to 70 percent of your portfolio should be invested.

So to summarise, investing in options trading to provide you with an income in your retirement is a risky option, but it is the option that is going to give you the best financial return on your investment. So long as you invest in stocks across a number of companies, then you should avoid losing all of your investment should a financial crisis take place. If you are thinking about investing in stocks in order to provide an income in your retirement, then you need to speak to a financial advisor at the earliest opportunity.


Liam Ball is a finance expert who enjoys blogging about financial topics. He is a regular contributor to a number of finance blogs all over the world.

Managing a Mortgage: Tips for the Big Payments in Life

A mortgage is a large commitment for any family. It is important to manage a mortgage and the money in the household responsibly. This will help when attempting to finance other large purchases in future. Several tips will help families to manage a mortgage, and prepare for other big payments in the future. 

Create a Detailed Budget

The most important part of managing a mortgage and preparing for other large purchases is to create a detailed budget. The budget should include everyday expenses like groceries, and gas and utility payments. It should also include taxes, financing fees, and savings for an emergency fund. A detailed budget allows the family to see the exact state of finances at any given point, and it can indicate when it is necessary to cut back on spending before debt grows out of control. One household budget also helps to save for future purchases.

Pay Down Principal If Possible

The principal on a mortgage or any loan is the amount borrowed without interest. The amortization of many mortgages sees homeowners paying large amounts of interest for years before the principal starts to drop significantly. Homeowners should attempt to make additional payments each month to reduce the principal only. This actually lowers the total amount of interest that has to be paid over time. It also shortens the term of the loan.

Avoid Late or Missed Payments

It is important to avoid late or missed payments on a mortgage or any loan. Late payments can negatively affect credit, making it harder to finance other large purchases like a car. They can even incur fees from lenders that increase the amount of money owed each month. One way to avoid this is through a short-term loan. Dallas short term loans provide a fast way to make mortgage payments if there is an emergency, or if a paycheck is late. The short-term loan can prevent a bank from ruining personal credit, and can also help to avoid costly fees from mortgage lenders.

Refinancing

Families who are consistently having trouble making mortgage or other loan payments will want to look at refinancing. Refinancing has the potential to lower monthly costs for the remainder of the mortgage. The drawback is that the overall amount of money paid to the bank increases and could come with extra fees. Refinancing can help if the mortgage seems unsustainable.

Anyone managing a mortgage or other expense should make every effort to stay in communication with the lender. Communicating regularly and staying informed about the state of the mortgage is an essential part of management. A good relationship with the lender could help if problems occur in the future.

3 Strategic Investment Planning Tips for Seniors

Investment planning is important throughout live but even more so if you are a senior. Your investments will become important to you as you move through retirement. The biggest problem that could occur is running out of money. Taking these three strategic investment planning tips will help you along the way, offering you money and markets stock advice and steering you away from mistakes and onto the path of investment success.

1) Do not invest too conservatively

While some planning is contingent upon your current health and estimation of how long you will live, financial planners who specialize in money & markets stock advice tell seniors to plan to live at least 90 years. If you retire at 65, that is 25 years of retirement! Investing moderately when you are retired is the best way to guarantee your investments will perform at or better than the inflation rate, something a lot of seniors do not take into account. You should take a look at your investments, reevaluating your strategy on a regular basis and planning in 5 year increments.

The markets change, but the value in your investments should be as averse to downward pressure as possible while responding well to stock market gains. Obviously, it can be scary to invest in such a volatile market, but investing too conservatively can lose you a lot of gains.

2) Never change your course suddenly

With the plethora of investment news channels, websites, and guides available today, it may be tempting to change course immediately and often, especially if you fall prey to the immediateness of the tone in their voices. However, there is not one financial event that should make you pull all of your investments out.

During the Great Recession, seniors left and right pulled their investments out of the market, and most of these people regretted it later. The market is almost guaranteed to recover eventually. Any large financial changes should be given months of thoughtful consideration. Never let your fear control your decisions on a whim!

3) Be cautious

There are many sales people who offer "advice" and get-rich-quick schemes to seniors. These people are generally trying to make a quick buck from you, and they will provide you little in terms of financial security. High-pressure salespeople should be avoided at all costs. Get money and market stocks advice from someone with whom you have a long relationship with and a lot of trust.

                                                                                                                                                                                               

Don't Throw a Retired Retirement Party! Make That Last Bash Count

In years past, retirement parties were solemn affairs held to acknowledge the end of a career and to commemorate years of loyal service. Today's active retirees, however, are far more likely to view their retirement as a beginning rather than an ending, and may feel that it is the outdated ideas about retirement parties that need to be retired, not them. Make that last bash for a faithful employee a resounding success with a festive celebration that recognizes that the retiree is about to embark on new and exciting adventures. 

Planning and Preparation

Before any party preparation can begin, you'll need to establish a budget, finalize the guest list, and choose a date and venue for the event. Make sure that the invitation list includes the most important people in the retiree's life, including lifelong friends, as well as family. Today's smart phone applications make it easy to keep all the details involved in party planning organized. A dedicated binder to hold items like itineraries, vendor brochures and guest lists offers a low-tech alternative.

Choose a Theme

For a fun and laid-back party, start by choosing a theme that will reflect the retiree's unique personality. Enlist help from the family and friends to find out about personal interests and hobbies that can inspire the ideal theme. Golfing, gardening, and travel themes are all popular choices. Choosing a theme is a simple way to coordinate all the aspects of party throwing, from the invitations and decorations to the choices for food and beverages.

The Perfect Soundtrack

Parties need an infusion of energy and dynamism to keep the action rolling, and nothing impacts a party's atmosphere quite like live music. A live band will keep the party-goers up and moving, but be careful to select a band from sonicbids that will play music that everyone can enjoy. When you have an atmosphere everyone can enjoy, it can help ensure the whole affair is memorable and fun.

The Party Program

No retirement party is complete without a few toasts, speeches, and gifts for the honoree but avoid bringing the festivities to a screeching halt with a stuffy award ceremony. Instead of allowing each guest to make a speech, consider hiring a videographer that can mingle among the crowd and record individual comments. Create a banner where attendees can write personal notes and congratulations throughout the evening is another great idea.

Retirement is no longer viewed as an end of a purposeful life, but as a chance to discover new adventures and opportunities. Plan for the event as if it's a bon voyage bash rather than a retirement party, and you'll increase the likelihood that the festivity is enjoyable for everyone involved.

5 Signs Your Financial Advisor May Cheat You

Finance (Photo credit: Tax Credits)

The revelations of Allen Stanford and Bernie Madoff made us to carefully think about our financial advisors. It is quite unimaginable that your financial advisor will cheat on you; in reality, he or she is really capable of doing such. Nevertheless, it is not safe to generalize that all financial advisors are cheaters because there are a bunch of them who are honest and hard working people too. As a financial investor, you would not want to learn your lessons the hard way. If you have hired a financial advisor, you have to understand that you are still responsible for your financial stability in the future. Before hiring the services of a financial advisor, you should be wary of the possible signs that your financial advisor may cheat on you and ruin your economic future. 

· The Big Spender - You may want to do a little background check regarding the lifestyle of the financial advisor that you wish to hire. It was revealed that financial advisor Bernie Madoff lives an extravagant lifestyle. He owns several properties all over the world and he does not mind spending thousands of money for private jets. This is the first sign that you should look out for.

· The Philanthropist – Aside from luxurious lifestyle, your financial advisor could be hiding behind the mask of a good-hearted philanthropist.  Again, Bernie Madoff gave huge amounts of money in several foundations and even gave a donation to the Democratic Party. On the other hand, Allen Stanford donated money to various universities. It is okay to help other people if your financial advisor is using his/her own money, but it is totally a different story if he/she is using your money to make him look like a generous person.

· The Excuser – If your financial advisor never seems to run out of excuses for not fulfilling your requests, this is not a good sign. If you requested for a simple fund statement and it took him/her a long time to provide it to you, this is surely a red flag. You are in big trouble if there is a delay in giving you money. Your financial advisor must be doing something behind your back and you will not be happy about it.· The Magician – You have to remember that your financial advisor can do some magic to make your books look better. Your financial advisor can make the losses disappear and make your books appear as if everything is okay with your investments. It is better to do your own investigations and verify your returns. Looking at the percentage of the returns is not enough, you should be able to see how much money you have made with your financial investments. You should not get fooled with the returns shown in your books because a little magic can be done.

· The Business Person – There is nothing wrong if you financial advisor is a business person, but if it involves cloudy business practices then it is not a good sign too. Find out if immediate family members are the ones in-charge of bookkeeping because they can easily conceal the truth. Both Madoff and Stanford got their partners involved in the business as their respective bookkeepers and they also helped in the recruitment of new investors.

Sometimes it helps to be a little paranoid especially when it comes to financial investments. Some people may think that investors are stupid for not seeing the signs that their financial advisors are cheating on them. It is not a case of stupidity, these investors were too trusting and did not get themselves involved with their investments. They have left the responsibility of monitoring the investments in the hands of their financial advisors. Unfortunately, some financial advisors would take full advantage of the trust given to them and would use the money of their clients. Caution and involvement are the some of the things that you have to keep in mind when hiring financial advisors.

Irina Carter contributes towards Short Term Loans website. She loves covering business and finance news. She likes doing web development and web design.

Financial Advice vs. Financial Coaching: Which is Best for You?

There is a distinct difference between a financial coach and a financial advisor. Sure, there titles are similar and they both purportedly help to sort out financial matters, but they are most definitely not the same. Without knowing the difference between one and the other, how can anyone be expected to make an informed decision on which service to seek? Well, they can’t. 

Financial Advisor

A financial advisor is a person who, in exchange for compensation, provides knowledgeable input into how a customer should handle their personal finances. Financial advisors must maintain a Series 65 license in order to offer their services to the public. They have a myriad of different uses, including the provision of income tax advice, investment management, insurance planning and even estate planning.

Really, the relationship between a financial advisor and his clients is that of a parent and child. The advisor is the parent, and the client is the child who follows his parent’s perceived higher knowledge. 

Financial Coach

A financial coach, at his core, is very similar to the financial advisor. They serve many of the same purposes by helping those who hire them with all kinds of money matters. However, those who seek out the aid of a financial coach often need assistance in debt relief, learning to save, budgeting and in how to spend their money well.

The coach/client relationship is really what sets the financial advisor and financial coach apart. The financial advisor is hired to manage a client’s money. The financial coach is hired to teach the client how to handle their own money effectively. As a result, the relationship between a coach and his client is one of a parent and child initially, but as in reality, the child eventually grows up to be a responsible adult.

Which is the Right Choice?

Whether a person should seek the aid of a financial advisor a financial coach is very personal. It all depends on what that person wants to eventually gain from the services rendered to them.

A person who really doesn’t want to be bothered with the mundane aspects of their money, such as budgeting, taxes and investing, from day to day might really prefer an advisor over a coach. There’s nothing wrong with that in the least. It is imperative, however, to choose a financial advisor wisely. Their goal and the client’s goal should be the same; to appropriately manage and grow the client’s money.

On the other hand, if a client really wants to learn how to handle their own money and eventually take the reins, a financial coach is the way to go. There should be a process where the coach learns all about the client's wants, needs and finances. Then a three-part program should be introduced. First, it must be decided precisely what should be done with the client’s money. Then, of course, there must be a game plan on how to make that happen. Finally, there needs to be a specified order put to the defined tasks.

A client needs to be very careful in choosing a financial coach who is out to truly help them. Avoid those who would simply put customers into a debt management system, and look for coaches who really want to teach the ways of money.

Choosing between a financial coach and advisor is highly personal. Both options should be thoroughly considered, and then potential coaches or advisors should come at the highest of recommendations before proceeding.

This article is brought to you by Cambist.

Are You Missing Out by Not Knowing About Wealth Management?

Finance (Photo credit: Tax Credits)

In this day and age, it’s never been so important to know who to make the most of your money. Maximising your cash flow and taking care of your finances is advisable when the economy is good, but in these hard times it’s become an absolute necessity. Yet, large numbers of people still remain in the dark when it comes to assessing and managing their wealth.

Why Should We Look After Our Finances?

Looking after your finances has numerous benefits, including giving your wealth the opportunity to grow. On the other hand, not taking care of your finances can have devastating consequences. For this reason alone, it’s advisable that you get clued up about the best way to take care of your money, and the best way to start is by learning about wealth management.

How Does Wealth Management Work?

In its simplest form, wealth management is the process by which financial planning, advice, management and investment are all corralled together under the same heading, with one purpose in mind – to maximise the assets of the client in question. However wealth management is much more complicated than this, and requires significant time, knowledge and effort to be applied correctly. If wealth management is carried out properly by an experienced financial advisor, this can result in a significant return for their client. If you’d like to find out more about how wealth management can benefit you directly, you should visit www.spi.sanlam.co.uk for more detailed information.

Which Areas Does Wealth Management Cover?

Wealth management is a large and complex practice which can be effectively utilised across multiple financial products. These may include:

• Pensions and Annuities 
• Savings and Investments 
• Stocks, Bonds and Shares 
• Portfolio Management

The specific type of wealth management you may need will be entirely dependent upon which financial products you already own, and your proposals for future investments and savings. If, for example, you are coming up to retirement age, you may need advice on how to maximise the value of your pension. Alternatively, if you are a young professional who has just received a promotion, you may be interested in investing your newly increased salary across various different trading options.

Wealth management services also differ between locations. Wealth management companies in London, for example, will be more likely to offer a broader range of international investment services than a smaller, regional company. Clients with small portfolios and limited resources often prefer the personal service of a smaller company. However clients with large portfolios and a significant amount of capital would be wiser to choose a larger, international company, which is more likely to be able to diversify their investments across a wider range of options. 

Advice and Information on Wealth Management

If you’re interested in the idea of investing in wealth management, or simply want more information but don’t know where to begin, it’s always advisable that you get in direct contact with a professional wealth management services provider, such as Sanlam. Their financial experts are always on hand to help you make a decision about whether or not wealth management is right for you.

Is a Financial Advisor Group Right For You?

Financial planning and making investments is something many people dread, whether in a small business or their personal life. However, to make a decent return on your money, these are necessary evils. 

Before fretting over stock splits and mutual funds, though, ask yourself a simple question: Do I have the time, knowledge, and expertise to manage my funds? Or would it be better left to professionals? 

Helping with Retirement: Will You Have Enough Saved?

Will I have enough money to retire? That's a question faced by millions of Americans. If you aren't the type of person that keeps track of where every penny you make is spent or you have trouble saving, then a financial planner could be a perfect fit for you.


Likewise, if you own a small business but have difficulty dealing with your balance sheet, net income statement, or cash flows, then a financial advisor will be a benefit to you. They can help you go over the numbers to make a profit and save money. 

Investment Knowledge: Do You Know How to Manage a Portfolio?

Market knowledge is a key element in any investment portfolio. Do you have the know-how to balance and manage your stock and bonds without losing money? If the answer is no, then financial advisors can help you meet your monetary goals. Always look at advisors' track record and certifications and make sure they're legitimate.

Long-established advisors such as the Fisher Investments Private Client Group, for example, have a successful history that speaks for itself. That way, you can take the headaches out of whether to buy or sell, or which stock is going to be the next hot buy. 

Saving Time: Are You Willing to Sacrifice Free Time?

When it comes to managing your investments, remember that it's a full-time job. It requires you to check your investments and market conditions on at least an every other day basis.

So ask your yourself: Do I really want to spend what little free time I have sifting through stock quotes and financial statements? That's why advisors are a great fit for those with demanding jobs and families; so you can keep your free time available for doing what you love. 

Achieving Goals: Do You Know What Your Goals Are?

If you don't have a firm grasp on your financial future -- i.e. what to buy, how much to buy, how much you need to earn, etc. -- then finance professionals can help. They can help you set your financial goals, which is what many overlook.

Retirement aside, do you need extra capital for your business? Do you need to put your kids through college? Do you want money for a down payment? All these are pertinent questions that your advisor will help you answer. 

Overcoming Adversity: What risks are Involved?

With the many Americans still struggling from a rollercoaster economy, the ability to assess risk in your investments is important. By hiring a financial professional, he/she can advise you on the degrees of risk of your portfolio. By taking this advice, you can make more sound financial plans, and avoid losing heaps of money in a down market.

While hiring a financial advisor may not be the best plan for everyone, it certainly comes with many benefits, especially for those who are a little less market-savvy. Remember, when choosing a financial advisor, make sure to find one that you're comfortable with and that fits you.

The Retirement Savings Crisis - Infographic

It's terrible how ill prepared most of us are for retirement. It's not like we don't know it's going to happen. We have more than half of our lives to get ready for it. Sadly, some of those that did prepare have had their savings taken out by the current economic problems. 

If the government really wanted to do something about this they should have a method to start the preparation for retirement when we are born. At birth we give children a Social Security card, why not a retirement account also. Why wait to start something important like that 25 years later? What's your take?

Image created by www.MastersinAccounting.info

How to Plan a Financially Secure Retirement

saving and spending (Photo credit: 401(K) 2013)

You may think that you should only think about planning your retirement once you have plenty of funds saved and then and only then, seek financial advice. However, the most sensible way to approach it is to begin that planning process from your very first job. Don’t leave it until it is too late to save the money that you will need for retirement. 

Start Early

You don’t need the help of anyone in order to get started. You should start by saving a small amount of money a week and keep it in a savings account. Leave it to build up to a few thousand pounds. At this point, you can begin to invest the funds into the stock market. Ideally, you would invest in multiple diversified mutual funds, in addition to ETFs. Continue to save and invest until you have a nice little nest egg. Then you can begin to diversify further. 

Diversify Investments

To help in diversifying your savings, start to look at your portfolio as a whole and ensure that there is no single region, sector, industry or investment that is dominating your holdings. Essentially, ensure that you have investments in technology stocks, mature stocks, foreign companies, value stocks, growth stocks etc. To achieve this, begin to look through your mutual funds and note which company types and sectors are in each mutual fund. You should be reasonably diversified but this is nothing too much to worry about at this point. 

Focus on and take control of your retirement (Photo credit: SalFalko)

When you have reached a significant amount of savings, you can diversify even more. You can then look to purchasing property. If you have the time on your hands, that is. Alternatively, you can buy real estate trusts or real estate fund in either residential or commercial properties. They can act as an effective diversification strategy from conventional assets, such as stocks or bonds. 

Build on Your Plan

Once your investment portfolio has grown, you need to be increasing your awareness of investing as well as the level at which you are planning for your retirement. Estimate how much you will need in order to retire and begin to work toward that goal.

One option you do have and should consider when planning your retirement is a payday loan from a company such as DollarsDirect.ca. It may be that a member of your family is forced to have an operation or a loved one passes away. Such a measure should not be used for frivolous purposes but it can alleviate some of the stress that comes with retirement, just knowing that it exists as an option. 

As the time draws closer to your retirement, you will either feel secure or find that you are worried. If you are feeling nervous, it may be worth visiting a personal financial planner to assess your plan as it stands. They will be able to use sophisticated software in order to estimate the demands you are likely to be met with and calculate the odds of you running out of money. If you do feel secure then, by all means, enjoy your retirement!

How to Supplement Your Retirement with Income from Other People's Properties

Property in Europe (Photo credit: Images_of_Money)

Do you have fears about not having enough money for a comfortable retirement? Perhaps you are looking to invest in property, either to supplement your existing pension, or to become financially independent from the portfolio itself. What you may not have realised, however, is that you don’t necessarily need to “own” a portfolio in order to create cashflow from one. Read on and discover how my daughter Emily and I went from 0 to £5000 per month from properties we don’t actually own... 

Would Ownership Work for Us? 

We had heard a great deal about building a small portfolio of properties that we could buy cheap or finance, refurbish and sell or rent to up-and-coming young professionals. It sounded a good plan on the face of it but the problem was that we were quickly running out of cash. Since the credit crunch, lenders usually require a hefty 25% deposit. Even if a property could be obtained below market value, it was costing us around £21,000 per property. After all that investment, we were only making around £200 per month cashflow. At this rate, we realised that it was going to take a long, long time to become financially free, so it was back to the drawing board. We knew that there had to be another way. 

Single-Lets vs. Multi-Lets 

As I mentioned, renting the property out as a single-let property, namely when the entire property is let out on an AST, just wasn’t producing the cashflow we required. It was then, that we discovered how multi-letting a property, namely renting the property on a room by room basis, created substantially higher cashflow each month. It did not take us long to realize that multi-letting was the way forward. However, we still had the problem of stumping up the hefty deposits required by lenders. That’s when the light bulb moment hit... 

You Don’t Need To Own! 

We knew that multi-letting was the best was for us to maximise cashflow, but we still faced the same problem, namely raising the huge initial deposit. It then suddenly dawned on us. Why do we actually need to buy these properties? We knew that there must be struggling landlords out there who are looking for a guaranteed rent and for someone to manage the property for them. We decided to contact letting agents and make arrangements to rent the properties through what a corporate let. We would rent on a room-to-room basis to multiple renters who would be young professionals between the ages of 23 and 35. The agent would have a guaranteed rent, and we would take care of having minimal renovations performed that were necessary to make the house attractive to tenants. Initially we were met with scepticism and were even thrown out a couple of offices! But we persevered and within 6 months we had 9 multi-let houses in 5 months generating £5000 pcm net! 

Finding the Right Properties 

In our target area, we look to acquire properties that had a number of larger bedrooms, such as Victorian houses. Double bedrooms rent out much more easily than singles, especially if they have an en-suite. We normally look to pay the landlord around £200 pcm for each double bedroom in the house. So a property with 4 double rooms, we will rent off the landlord for £800. We then advertise the rooms for around £400 per room. After all cost, we aim to make £500 per month cashflow off each property. 

This system has been working out well for us and we plan on expanding our portfolio of rent to rent properties in the next year or so. We have created systems so that we only spend a few hours each week managing each property. It really has worked well for us and can work for you too. As Nike would say “Just Do It!” Francis Dolley is an expert on this unique rent to rent system and runs courses in the UK teaching students how they can successfully build a portfolio of properties that they don’t own, yet generate substantial cashflow profits each and every month.

Planning For Retirement On The Installment Plan

Retirement (Photo credit: Tax Credits)

When people are planning for their retirement future the first idea for saving is through a 401K plan. Many times these plans are not available to all people. This brings up the question of how do I start to save for retirement. 

Because planning for retirement takes a lot of financial planning and management of money and resources it might be a good idea to hire someone who can help guide you. For those who do not will often fail and will not have any money to live on once retirement has approached. It is important to plan for retirement while you are still working and have an income that is guaranteed. Of course the earlier you start planning the better.

When looking into retirement plans for the future many people often inquire about a payment plan or an installment plan where money can be placed and saved for future use. This is where an annuity can come into play.

Fixed Annuity

There are two different types of annuities that can be used. The first of these and the most common is the fixed annuity. When investing in a fixed annuity there is a one-time payment that is involved. This investment for a specified time period and will involve a fixed interest rate through out the time period. For this reason financial planners will often recommend this type of investment plan. It is a source of income that is not interrupted when you go to retire.

Another large advantage of a fixed annuity when compared to other investments is when it comes to be tax time. Tax deductions are not applicable on the money that is used to invest in the annuity. The reason why this makes a fixed annuity so attractive is because when the person who has invested has reached the maturity come retirement age they are out of the income bracket to be taxable. Therefore any returns that are obtained by the annuity are tax-exempt.

Deferred Annuity

A deferred annuity can also be used as an installment plan for retirement. This is a plan that comes with a periodic investment. There is not a fixed amount needed when it comes to this type of investment. However there is a certain fixed amount that is needs to be made for a certain amount of time. The person who is investing is who decides how much should be invested. The investor will start to receive the returns of their investment once the annuity reaches the maturity date. As with the fixed annuity the investment is not taxable but the return will be taxable at the end of the year.


When a person wants to invest in their retirement so that they are able to enjoy a worry free life one of the most popular ways to do this is through installments. By working with a financial planner and figuring out what is best for you it is possible to achieve and enjoy retirement without having to worry about how to live comfortably.

Author Bio This guest post is a contribution by Janice. She has been linked up with some good financial communities. She used to share her thoughts there. She is specially experience on topics like debt, credit card, bad credit personal loan, insurance, mortgage etc.

Will My Family Have To Pay My Debts When I Pass?

Finance - Financial injection - Finance (Photo credit: @Doug88888)

As we get older, we tend to think of things that we never found ourselves thinking about in the past. Questions like “Will my family have to pay my debts when I pass?” are often asked as we reach retirement. Unfortunately however, the answer isn't quite that clear when we do a search online. Some articles say yes and some say no. Another unfortunate part of this is that many articles I've read on this topic have misinformation all through them. So, without further ado, here is the REAL answer you've been looking for... 

Will My Family Have To Pay My Debts When I Pass? 

The bottom line is that you and you alone own and owe your debts. However, the topic gets a bit interesting when an estate is taken into consideration. If you have anything of monetary value to your name when all is said and done, this is also something that you own. Because you own your debts, your estate may be used to pay our debts before it is passed on to your family. Therefore, when you pass, if you have more debt than you do monetary value in your estate, chances are, nothing will be left for your family. However, this is a topic that is best addressed with an estate planning attorney or another estate planning expert. 

How To Pay Your Debts Quickly And Protect Your Estate 

Chances are, if you are reading this article, you may not have too much time left to plan for leaving something behind for your family. However, it's never too late to protect your estate by paying off your debts. Here are a couple ways that you can do that while avoiding debt scams... 

Option #1 – Financial Hardship Programs 

Due to recent economic hard times, many lenders have started to offer financial hardship programs. When it comes to credit cards, these programs are often called balance liquidation programs. When it comes to mortgages, these programs can be referred to as mortgage modifications. No matter what type of debt you are dealing with, chances are, your lender has an option that will help. All you will need to do is give your lender a call to find out if they are willing to help and how much they will help. However, it's important to remember that financial hardship programs may take years to pay off. Therefore, if you feel as though you don't have this time, you may want to consider debt settlement. 

Option #2 – Debt Settlements 

Although, I don't generally advise debt settlement because of the incredibly negative repercussions it can have on credit scores, in cases where consumers only have a year or two to pay their debts off completely, this is a viable option. When you enroll into a debt settlement program, your representative will help to create a payment plan that will meet your goals. As you make payments, they will not be given to the lender. Instead, they are held in a special purpose savings account until there is enough money to settle a debt. At that point, the debt settlement company you choose will negotiate the amount of debt owed with the lender and settle it for a lesser amount. 

The Bottom Line 

Although your family will not be held liable for your debts, it's important to remember that your estate will pay your debts before anything will be left for your family. With that said, if you feel as though you don't have much time left, it's always best to start aggressively paying down your debts. This way, your estate will be left to your family and not to pay your financial obligations! 

About The Author – Joshua Rodriguez 
This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance writer. Joshua's most recent work online has been his balance transfer credit card series. Join the discussion about this article, Joshua's series or any personal finance topic of your choice on Google+!

Your Financial Life After 50. Are You Planning Right?

As you get closer to retirement age, you start to wonder if you are taking the right steps to prepare for your financial future. When it comes to preparing for your golden years, there is no such thing as too late. There are steps that everyone can take after the age of 50 to make sure that they are ready for the life changes to come.

Have The Proper Insurance

In most cases, couples have long-term financial plans that involve the two of them contributing funds to reach certain goals. If something were to happen to one of the spouses, then the other could be left in financial ruin. It is critical to have all of your plans insured to protect against any kind of potential disaster. Term life insurance can help protect a home while the mortgage is still being paid and it can also be used to make sure that a surviving spouse is still able to survive if the other is to pass away before financial goals can be reached. Life insurance will also help offset the costs of your final arrangements and help relieve your next of kin of any of the debt that you leave behind. Image via Flickr by moolanomy

Think Long And Short-Term

Good financial planning includes short-term and long-term goals that need to be achieved in order to maintain the lifestyle that you want. When people reach the age of 50, they start to think in terms of long-term needs as opposed to any short-term requirements. But immediate goals such as paying off your mortgage or buying a new car are just as important as providing for your retirement income. Be sure that you attend to all of your financial goals as you get ready to celebrate the next stage in your life. Image via Flickr by NRMA New Cars

Get An Expert Involved

Pride can sometimes get in the way of good planning. As we get older, we often feel that we have everything under control. For example, when we get a little tight on money, we know that we can use Arizona payday loans to take care of things until our paychecks arrive. But it never hurts to have a financial planner review your arrangements and make sure that you are doing everything you can to prepare for your future. An experienced professional can help point out areas that could use improvement and make sure you are on the right track. Image via Flickr by norfolkdistrict

Look To The Future

The biggest mistake that people make when they start discussing their financial goals after the age of 50 is to dwell on the past. Any decisions that were made years ago are done and over. If you want to make solid plans for your financial future, then let the past stay behind you and stay focused on the future.
You have plans for after retirement that will need to be funded in some way. As you draw closer to your anticipated retirement, it is essential that you review your financial plans and make sure that you are taking the steps you need to live the life you have always dreamed of. Image via Flickr by Nature Pictures by ForestWander

About the Author
Shaun Chatman is a well published author on many authority sites. He lives in Dunedin, FL, and spends his free time playing with his kids or advising friends on his pet subjects: tech, gadgets, travel and finance.


Resources:
http://www.realty-1-strategic-advisors.com/life-stages-of-financial-planning.html
http://moneyexcel.com/2991/new-year-resolutions-for-a-better-financial-life-2013
http://usatoday30.usatoday.com/money/jobcenter/jobhunt/salary/2002-11-14-financial-future1_x.htm