Financial Tips for Getting Through Your Retirement

You’re entering into your golden years, staring down your retirement as it looms closer and closer. For some people, retirement is a breath of fresh air, and for others, it sends them into a frenzy. 

Being prepared for your retirement can help put you at ease, so that you don't have to worry so much about your financial state. Here are a couple of tips to help you with just that. 

Calculate Your Expenses and Retirement Income

Before all else, you have to calculate how much money you're going to get from your retirement fund, how much you have saved and how much is going out every month for expenses -- for both necessities and leisure. This will give you a better idea of how financially stable the days ahead of you will be.

Travel with Your Budget in Mind

Everyone wants to travel during their retirement, and why shouldn't you be able to? You've worked all those years and now you should be able to sit back and relax. 

One way to keep your travels from eating up your retirement income and savings is to use booking sites like Hotels.com. This way, you can find the best deals on air travel, hotel rooms, as well as rental cars.

Move to a Cheaper Location

If you still live in the home your kids grew up in, it's time to downsize. Not only should you find a smaller place to live, but the location you move to should also be fairly affordable. 

Some retirees decide to relocate south of the border in Mexico, where the cost of living is very favorable, and not to mention, it's like a permanent vacation getaway!

Taking charge of your finances after you retire shouldn't be a major mystery. If you get started now, you can be prepared for your retirement when it finally comes about. 

Then to further help you with your savings, you can use Groupon Coupons to find deals on over 8,600 stores, which are updated daily.

6 Things You Might Not Think To Save Up For As You Get Up There In Years

There are numerous things you can do in preparation for your later years. Here are some important steps you should take as you approach your senior years in life. Here are five things you’ll be glad you saved up for when you start to get older.

Higher emergency fund

An emergency fund for someone in their 20s is much more for someone approaching retirement. Health care becomes more expensive as do common household repairs. Boosting your emergency funds to a higher level may be a good idea as you access your legal, health and homeownership needs.

Medical costs

Medical costs are additional expenses you must consider in aging. Many mistakenly believe that all of their insurance policies will cover care as they approach their later years. With the average life expectancy increasing, one has to be assured that there are ample funds to cover hospitalization, coinsurance and long term care if needed. This will prevent you from putting an unnecessary burden on your loved ones as you get older. People who had Medicare paid $38,688 for care during the last five years of their life, the National Institute on Aging suggests.

Dental Costs

After decades of chewing, drinking, maybe even smoking etc… your teeth are bound to get a little worn down. Some more than others obviously, but the proper care as far as brushing and flossing are always a good idea. Even with the proper care though, dental costs could add up in hurry if you’re frequenting the tooth doctor. Some of these costs could be as simple as a co-pay if you have dental coverage for a simple cleaning. Sometimes though, as you get older, getting more than a simple teeth cleaning done can become common. Dr. Peter Wong does dentures up in Surrey in Canada. More often than not, dentures end up being for those who are getting up there in years. Saving up for stuff like this when you’re younger is good idea. 

Downsizing

Homeownership is something many people don’t consider. When the children leave the home, the retired couple may want to downsize. This may mean taking out another mortgage on the home. Since the home should ideally be paid off prior to retirement, once should plan for closing costs, remodeling, moving and other expenses most often associated with moving into a newer, smaller home. This can be especially important if a person is planning to take out a 15-year mortgage. 

Catch-up contributions

Catch-up contributions give people over 50 the opportunity to catch up on their retirement. If a person reaches the age of 50, one can contribute thousands more over the annual limit. As of 2012, that amount is $22,500. This is good if a person decides that they want to retire a few years earlier or if circumstances happened when they were younger preventing them from saving on a certain level.

Long term care insurance

Long term care insurance is beneficial for those who may end up in a nursing home. Many families are surprised to learn that Medicare doesn’t actually cover the cost of long-term care. Medicaid also has its share of constraints. It cannot be used until the savings are practically depleted. When a person reaches their early sixties, long term care planning is recommended.

Here are five things you should save up for as you get older. Doing these things will prepare you and your family for life’s challenges as you get older. It’s never too late to start thinking ahead about retirement.

Retiring on Time: Ways to Set Yourself Up for Success

For an individual in their 20's, retirement can seem like something light years away. There are still decades of life and work between where they are now, and where they will be when they reach retirement age. This makes now the best time to plan for a successful retirement. By starting to plan for retirement early in life, a young individual is setting a solid foundation that is going to make it a lot easier and comfortable for them when they reach retirement age.

Believe it or not, for a person who starts early enough, retiring as a millionaire is a realistic option. You do not need a lot of money to start off with. What you need is a consistent amount of money that is invested over a long period of time. A person doesn't even need to be an investment guru like Warren Buffett. All they need to have is patience, self-discipline, and the mental fortitude to keep to their investment plan.

Take Advantage of the Time You Have

A person who is in their 20's and is able to stay relatively healthy, is probably going to work for the next 40 years. An individual who invests $100 every single month and receives 10 percent annual returns on their investment will have saved over $630,000 by time they retire. Increase that monthly investment to $250 a month, and now we are talking about retiring with $1.5 million saved away. Now if you really want to take this scenario to the extreme, a person in their 20's who starts investing $2,000 monthly in something that will give them a 10 percent annual return will retire in 40 years having saved $12.6 million. As you can see, it’s not necessary to invest a lot of money to retire well. It is necessary to take advantage of the time that you have.

Take Advantage of Your Raises

A young person who first enters into the work field is unlikely to be earning a higher end salary. However, they are likely to be in the middle of the highest growth potential in salary that they will have throughout their entire life. Basically, as their skills improve, their pay will improve. Why not leverage raises to increase investments? The money that you get as a raise, is money that you are living just fine without prior to the raise. So instead of spending it on gadgets and other things that you just don’t need, invest it in your long-term future.

How Much Money Will I Need to Retire?

The answer to this question is going to depend on how much you plan on spending. An individual planning to retire at 60 is encouraged to have saved at least 15 times what they want their annual salary to be. So, for a person who is looking at living on $60,000 a year, they will need to save approximately $900,000.

According to Gittens & Associates his number increases for those who are looking at leaving a legacy behind for their children. The amount of money that they want to leave behind in a will or trust needs to be taken into consideration. It would be a good idea to sit and talk to an attorney and discuss the specifics of making a living will and any fees that are associated with this. Discussing retirement plans, trusts, living wills and things of this sort with the power of attorney in Newfoundland or other parts of the world, is all part of successfully preparing for retirement and beyond.

When a person is in their 20's, life seems like it is in front of them. And that is true. However, the decisions that a person makes in their 20's will affect them financially in the future, and will decide whether retirement is something they look forward to with pleasure or something that they look towards with dread.

Planning an Early Retirement? Managing Legal Matters Wisely

Retirement (Photo credit: Tax Credits)

It’s safe to say that most people would like to retire early, but how many people will actually be able to do so; moreover, how many will retire early and do so comfortably, i.e. without regretting not staying at work for a few more years?

Unfortunately, most people will continue to work until they have no choice but to retire, though if you believe that you’ll be in a position in which it’s feasible to retire early you’ll need to plan for retirement and plan well. 

Dealing with Debt

Retiring when you’re burdened by outstanding debts is impossible so you must ensure that all your outstanding debts are resolved well before you retire.

Many people slide into debt upon retirement because of a reduction in earnings, though provided you’ve planned your retirement well and you have surplus savings, there’s no reason why you should be at risk. 

Combining Pension Pots

If you’ve worked multiple jobs over the course of your working life your pension fund might be spread across multiple pension pots. If that’s the case, you need to find out where your pension is located and consider your options, including rolling them over into one pension fund. 

Are You Claiming the Benefits You’re Entitled To?

Whilst you might not be entitled to all if any of the benefits that senior citizens are entitled to because of your current age, you should still make the effort to find out what benefits you’ll be entitled to claim upon retiring early.

As much as £5.5 million pounds goes unclaimed by pensioners annually and if you’re not claiming the benefits you’re entitled to, the Government certainly isn’t going to let you know what you could be claiming.

There are a number of benefits made available for retirees – Council Tax Support, Housing Benefit, Winter Fuel Payment, etc. – and although you mightn’t be eligible to receive these benefits just yet, you could be at a later age. 

Considering Annuity?

Annuities convert pension funds into retirement income and despite receiving some bad publicity in recent years they’re still the best option available for the majority of retirees.

It’s important to understand that once you’ve decided on an annuity provider your decision can’t be reversed, so get it right the first time.

Couples need to think about joint annuities or single life annuities for each of them, and everyone needs consider the three annuity varieties – level annuity, escalating annuity or inflation-linked annuity – and buy according to their needs.

If you’re retiring early you might not be able to convert your pension funds into retirement income because of your age, or if you are, you might have to settle for an annuity for a specified period of time. 

Don’t Forget About the Taxman!

You’ll need an income to retire early and although you won’t be receiving a wage from an employer that incurs income tax, you still need to pay tax on the money you receive from stocks and shares, savings accounts, term deposits and income derived from investment properties.

Some sources of income aren’t taxed, most notably pensions, Government benefits and ISAs (Individual Savings Accounts); however, it’s important to ensure your tax matters are in order before retiring early because the taxman will catch up with you sooner or later and you don’t want that to happen after you’ve retired. 

Wills, Estate Planning and Powers of Attorney

Thoughts of dying are naturally far from your mind when planning for an early retirement, though you need to give some thought to the inevitable at some point in time and contacting a legal firm like Hanne & Co to create a will, engage in estate planning and discuss lasting powers of attorney needs to be taken care of sooner than later.

These legal matters must be attended to regardless of whether you have dependents, especially lasting powers of attorney, because you need to consider what would happen to your finances and wellbeing if you were no longer able to make your own decisions.

There’s a lot to prepare for an early retirement but there’s also a lot to look forward to, so take care of your legal matters early on to enjoy the early retirement you’ve worked hard for.

Author: Cheryl M. Graham is a freelance writer for Hanne & Co, a law firm in London with an outstanding reputation and a long history in offering services in various areas of law. The company is made up of individuals who actually care.

Getting Close To Retirement? 4 Things To Remember As You Get Closer To The Golden Years

If you are approaching retirement, you will want to take the time to understand your goals and where you stand. Otherwise, if you head to retirement without thinking about your future, you will face serious issues. With this in mind, here are four things to remember as you approach your golden years.

Lawyer:

Once you amass some wealth, you will want to protect it. To do so, talk to a lawyer who can set up your finances in an intelligent and thoughtful manner. Otherwise, if you have a 401k, pension or other financial product, you will fear problems if you commit any mistakes. Not only that, with an attorney, you can maximize your social security payouts as he or she can come up with the best withdrawal solution for your needs. While a lawyer will cost money, he or she will have you enough in the long run that you will have no trouble justifying this minor expense. Rogers Bussey Lawyers are lawyers in Newfoundland, and a good example of a firm that could help you through this transition in life. 

Health care:

Believe it or not, if you retire without health care, you are putting your net worth at risk. While you can usually use government sponsored plans by the time you reach 65, you will need to think about your needs before you reach that age. Not only that, you will also want to consider supplemental plans, especially if you suffer from any ailments. Either way, when you take care of this at a younger age, you will avoid issues should you fall ill.

Home:

Let’s face it, if you raised a family in a large home, during your retirement, you will not need the room. In reality, you need to consider selling your house as you can move to a lower cost of living area. Other times, if you want to remain in the area, you can downsize to a condo or smaller home. Either way, unless you want to stay in a large house and pay to heat and cool it, you need to consider downsizing.

Will:

If you have some assets, you will probably want a will. Not only that, if you are a parent and want to pass down money to your kids, you will want to set up a will. With a lawyer on your side, you can create this quickly.

When you prepare for retirement, you will have an easier time as won’t need to worry about losing out on the best time of your life. Remember, if you don’t prepare, you will struggle when you are older.

4 Tricks for Investing After Retirement That Stretch Your Savings

retirement (Photo credit: 401(K) 2013)

Saving for retirement is one of the most important financial responsibilities that all people share. While most people plan decades in advance and have well established retirement savings plans, very few consider that they will need to continue to invest after they retire. Those that are in retirement should consider the following investment tricks, which will help to ensure that their retirement savings last. 

Invest in an Income Stream

When looking to make their savings last, retirees should consider making an investment that will provide them with a source of income, which could replace some or all of their expenses. A very common investment would be to purchase an annuity. This gives a steady income potentially for life, depending on the annuity type, while the owner also enjoys some tax benefits. Those that are willing to take on a little bit more risk and potentially receive a better return could consider purchasing a piece of investment real estate, such as a small apartment building, and lease it out to tenants. Such investments provide a steady source of income even if initial retirement funds are eventually exhausted.

Hedge Against Inflation

The second trick to follow while investing in retirement is to hedge against inflation. Inflation is one of the most underestimated expenses. While inflation has been low for awhile, over time it can greatly dilute the value of your assets. Instead of keeping your money in cash or money market accounts, at a minimum you should be investing in treasury bills and low-risk bonds, which tend to at least appreciate at the same rate as inflation. Be aware that inflation can cause your funds to decrease in value over time and plan accordingly.

Invest for Growth

While most retirees may focus on ensuring that their assets last their lifetime, it would still be a good idea to invest at least a portion of your portfolio for growth. At least twenty percent of your portfolio should be invested in industries, markets, and companies that are poised for growth. This amount will allow your assets to grow without taking on too much risk if there is a decline in value.

Consider Tax Implications

The fourth trick to maximize retirement savings is to remember to consider the tax implications of any withdrawal from a retirement account that you make. During retirement, withdrawals from your 401k will be taxed at the federal and state level. Depending on the type of IRA you have, the withdrawals may not be taxed at all. Because of this, you should be conscious to ensure that the withdrawals you make from your account limit your tax liability, which will ultimately allow your retirement savings to last.

In conclusion, saving and investing properly for retirement is very important, but investing during retirement can be just as important. No one wants to print a check one day and have it bounce because the retirement savings they've counted on have run out! For those that are looking to invest in retirement and prevent any potential financial disasters, there are several tricks that should be followed, which will help to ensure that their savings last as long as they need to.

How to Protect Your Assets When Approaching Retirement

People who are 50 years or older, such as the venerable baby boomers, have begun to approach the age of retirement. As a result, they are naturally concerned about whether their retirement accounts will drop in value or not and how to keep them from doing so. Fortunately, there are a range of actions that the 50 and older crowd can take to make sure their assets and interests are protected. Here are some of the most key pieces of advice from financial advisers who frequently deal with people in this stage of life.

Use the law

One of the best strategies most baby boomers can take to secure their retirement savings and assets is to use the law. Commercial lawyers are good resources to use when navigating the uncharted waters of estate battles, divorces, loans, foreclosures, bankruptcies, wills, and other issues that can cripple a person's retirement savings in a heartbeat. A personal lawyer is a valuable asset to have on one's side, and commercial lawyers are experienced in dealing with all kinds of financial challenges frequently faced by baby boomers on the road to retirement.

Diversify

Besides hiring a personal lawyer, another important step to take on the road to a secure and rich retirement is to diversify. More than 8 out of every 10 financial planners managing portfolios of the 50 and over crowd state that planning for retirement as a baby boomer should really focus on protecting one's portfolio from potential losses in the market instead of looking out for potential market gains. Furthermore, another 3 out of every 4 financial advisers suggest a diverse portfolio may be the best way to keep from suffering any significant losses when one is about to retire.

Start up that cash cushion

However, just as it's important to diversify one's portfolio in order to minimize risk, it is also essential to keep from falling into the trap of putting all of one's savings in one's retirement accounts. Seven out of every 10 financial advisers states that an emergency fund in cash is an essential part of any boomer retirement strategy. This cash fund should be used to take care of any expenses that are financially significant and out of the ordinary, such as needing a new transmission or engine in a car, needing a new furnace or water heater in one's home, or suffering an accident that requires an extended hospital stay.

It is essential to do everything one can do to avoid having to start tapping into the retirement fund earlier than necessary. Doing so means one will face penalties and taxes, and this would all be preventable through the use of an emergency fund.

Stop non important purchases

Another good way to get one's nest egg in good shape when one is getting close to retirement is to try to trim one's costs of living as much as one possibly can before retirement. This is a strategy that 3 of every 5 financial planners for this demographic agree with.

If baby boomers can cut their costs before they retire, then it will become that much easier to keep their standards of living going when they retire. In fact, according to more than 5 out of every 10 financial advisers state that at least a few clients of theirs have had to cut down their current standards of living in response to losses they experienced in the market.

Look for guaranteed income sources

Finally, keeping guaranteed income sources in mind is essential, according to more than half of financial advisers. For example, most retirees will receive social security. Other kinds of annuity products that come with monthly payments that are guaranteed should also be looked into, as one can never have too many income streams.

What’s Your Game Plan for Retiring Abroad?

Most people who are working in the US are toiling with the goal of retirement in mind. Especially when you get to 50 plus, you’ll want to be aiming for the retirement you actually want, not just the one you can afford.

A big part of a happy retirement for most people is finding the right location. For many, this means starting a new adventure living abroad. Tackling this daunting process can be made much easier when broken down into three major points.

Phase One: Research and Decide

If you’ve got a place in mind, you’re already ahead of the game. Perhaps you know friends who have settled in San Felipe or you’ve always wanted to live in Milan. You probably have preferences about language and culture. But before you get your heart set on a location, you should first make a list of options. What are the places you have traveled to and loved? What places have you always wanted to go to, but haven’t had the chance yet? Make your list and then research the heck out of them.

You’ll luckily be able to sidestep needing to learn about labor laws, but there are plenty of financial considerations you’ll need to educate yourself on. When Googling each place, consider searching for these financial concerns as well:

• Insurance - My GIO personal life insurance plan, for example, covers me when I travel abroad, but it would need to be replaced if I were to move back to the US. Retiring in Australia is a one of my top goals, so I will need to switch to an Australia based insurance plan, but this is not the case for all destinations.
• Currency value - Some areas are much more expensive to live in than others. Your dollars will stretch further, for instance, in Mexico than they will in Britain or Australia. Make sure that you’re getting the most out of your savings.
• Tax laws - Directly related to the value of your currency is how much of it you can expect the resident government to claim in taxes. Pay special attention to how much of your remaining income will be taxed under local law.

Now that you have an orderly metric ton of information in front of you, you can make an informed decision about where you’d like to end up. This should be the fun part; it may even allow you to take that vacation to the place you’ve always wanted to go! I don’t recommend settling on a decision without having visited the area yet, so save up for a short getaway and go see how the locals live. Looking at all of the information you’ve found, make a decision and stick to it.

Phase Two: Preparation

Ok, so you’ve chosen your new home and you’ve learned a lot about it. In the early stages of planning your international retirement, your first priority should be to determine how much capital you’ll have at your disposal. Consult your financial planner (or get one) so that you suffer no illusions about the kind of lifestyle you can afford. Then plot out the cost of living in your new home.

Put in place a financial structure for your new country. This might include investing in their market or setting up accounts with various institutions. During this time, you’ll also want to make sure that you’ve found an insurance provider, bank, and lawyer that you trust in the area.

Bear in mind that you should always leave a chunk of money in your country of origin. If you’re called back for any reason, health problems or family emergencies, you’ll need to have an emergency stash. This is also useful for planning your estate. If you’d like your assets to be passed on to your progeny, it will be much easier to ensure they get their inheritance if you’ve left at least some of it in their country.

Phase Three: The Move

Moving within a country can be costly. Moving internationally will prove at least twice as expensive. The expenses add up quickly: shipping, transportation, storage, visas, and the miscellaneous costs of food, hotels, etc. Most retirees will need to find a home that is smaller and more affordable, so consider downsizing.

On top of this, you must account for loss of US Medicaid eligibility, but chances are there will be some sort of medical assistance for retired folks in your new home. Social security is also a concern, but you can check this list of foreign countries serviced by American embassies and consulates and get information about social security benefits.

A great deal of your money lost in transit will be due to property transport and the damage that occurs therein. First, take stock of what you absolutely need to take with you. Obviously, sentimental objects that make your home your own are necessary, but it will most likely be best to sell most belongings and buy new ones once you arrive in your new home. Also, keep in mind that your new country probably doesn’t sell many of the items and brands that you’re used to, but this isn’t the end of the world. For example, Australia doesn't have red Solo cups but the white ones work just as well.

With careful consideration, you can patch up the cracks through which your hard-earned capital might fall through when moving abroad to retire. Particularly when retiring, it’s vital to account for every penny. You might still have some income from a pension or disability, but you’ll primarily be living off of savings and social security. This doesn’t need to be a precarious situation, however. It will most likely be the best time of your life.

Chris Jensen is a “fair dinkum” financial adviser with GIO.com.au. He enjoys traveling all over the Australian continent, picking up the colloquial slang, and planning his retirement there in the next twenty glorious years.

Planning For Your Retirement In 2014

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Retirement is one of those life milestones, with millions of Americans thinking about and planning their retirement at any one time. For a generation, 2014 will be the year they finally retire from the workforce, to live out the rest of their lives in leisure. For others, it will mark the first time they think about retirement, and about setting money aside for their future. In 2014, planning for your retirement is essential to make sure you can live a comfortable existence when you are no longer earning money on a regular basis. But what steps should you be taking to plan for the future, and how can you specifically plan ahead for your circumstances in retirement?

Before you can start to put plans in place to provide for your pensionable years, you need to think about how much it will cost to survive in your current lifestyle. Write down your essential living costs every month, and calculate this figure over a year. Be sure to be generous in your estimations, so as not to be caught out by initial optimism. Calculating this annual amount will allow you to work out a total amount you need to secure to fund your retirement, and you should make calculations based on a long and healthy life post-retirement. This figure is still abstract, thanks to the effects of inflation, but it gives you at least some idea of the amount of money you will need to have access to in order to fund your retirement.

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Fortunately, this doesn’t have to be a lump sum. Private employer pensions can be set up long in advance, and many people of working age already pay in to pension schemes in order to set aside some capital for their retirement. Similarly, investments you make during your working life can continue to pay you into your retirement, so there are many practically positive reasons for getting your excess money tied up now for that future. The sooner you start to plan ahead with your financial affairs, the more benefit you will be able to see from your money when you retire.

Pensions and savings schemes are often linked to market performance, and as a result, capital can decrease as well as increase. However, this money is often treated in a more tax-efficient way, and investment in the right pension or savings vehicle will ensure these risks are kept to a minimum. Ernst and Young global chairman Mark Weinberger and other executives understand these topics well, but so can you with the right amount of research and planning.

Retirement is an inevitable stage in each of our lives, and one that most people look forward to. Leaving the workplace forever is daunting, particularly in the current uncertain climate. But with the right planning and preparation ahead of the event, it can be possible to retire with enough money to live comfortably for decades to come. Whether you have pension provision in place, or whether you’re considering starting to save for your pension in the new year, planning well in advance of the event means you have the longest runway to ensure a happy, financially-sound life beyond the workplace.

Getting a Mortgage - Are You Ever Too Old?

As retirement slowly creeps up on you, you might think that it’s far too late for you to buy your first home. While this can be true in some cases as it wouldn’t suit certain individual’s situations, there are still occasions where it’s a good idea to buy. In this article, we answer the question that many people have been scared to ask - are you ever too old for a mortgage?

For the older homebuyer, there may be some extra things to think about that younger borrowers needn’t even consider. You’ll still want to get an idea of the crime rate, schools, and compare prices of similar houses in the area; but older home owners will also need to accept the fact that maintenance will become harder for them as they get even older. In a rented house, appliances, leaks, and other problems can be replaced and fixed no problem for free, but in your own home you’ll need to arrange a professional to fix them. Not only that, but simple things like cleaning the house will be a lot harder too. The closer you get to retirement age, the more you should think about your health, your finances, and how the house will impact your family in the future.

Some people say that buying a house when you’re older is better, as you have more savings and investments tucked away. However, if your retirement plans involve lots of exotic destinations and cruise ships or something similar, then it makes no sense to burden yourself with a mortgage to pay off (and the other fees that come with being a home owner). However, if you plan on settling down in one place for your retirement (having done all your travelling previously), then it might not be such a bad idea to get a mortgage now.

You might want to consider a time when you aren’t so mobile though - will you be able to afford care in your home? If not, you might one day need to move to a caring home which could result in you selling the house (even more hassle, and upsetting).

A home should be considered as a long term investment, and you need to think about what will happen to the investment when you can’t look after it yourself anymore. You don’t want to be left panicking, “how can I sell my house fast?”, do you? To help plan for the future, you may want to invest in a maintenance service and make sure you have cash tucked away for a rainy day just in case.

Sitting down with your loved ones and talking about long term plans for the house is also a good idea, as you’ll be able to fill them in on all of your ideas. How long do you plan on staying there? Do you plan to sell it eventually? Or are you planning on leaving the home to your kids or grandkids? Whatever your plans, make sure you have a good chat with them so you’re all on the same page.

Buying a house could be a great investment for you, regardless of age, providing you’ve thought it through properly and planned as best you can. In conclusion; you’re never too old for a mortgage if the time feels right for you!

How To Spend A Lump Sum From Your Retirement Plan

As we approach the twilight years of our lives, millions of Americans will be given the opportunity to take a lump sum from their retirement plans, especially those who don’t have a significant amount of capital tied up in the schemes. This is because providers stand to make less profit from you compared to people with a significant investment in their plan, and so it’s much easier for the firms involved to get you off their books as quickly as possible. Although this might sound like a bad thing (and in some cases it certainly is), those who understand how to use this cash advance wisely could benefit tremendously in the long term. 

The average amount accepted as a lump sum by American citizens is around $15,000 and is usually obtained at the age of 55, although admittedly some people do wait until their working lives are over. Still, at 55 you’ve still got ten years or more to work out what you want to do with this money, and could well increase it tenfold if you obtain the right advice and the most up-to-date information, which is why I’m taking the time to write this short post today. 

Taking A Long Holiday

Though this isn’t going to provide you with any extra funds, taking a long holiday (perhaps a round the world cruise) can be a fantastic way of enjoying the fruits of your labor and investing in yourself for a change. After 40 years of hard work and with 10 more still to go you deserve a treat, and what better way is there of accomplishing this than taking a nice relaxing break where you can check out some of the most beautiful sights on earth?

Providing For Your Family

By this time you should be reasonably comfortable in your life, but some younger members of your family group may not be so lucky, which is why you might consider helping them out with your cash lump sum. Getting a deposit for a mortgage has become increasingly difficult, so perhaps you could help out others around you who are struggling. 

Investing In Gold

Presuming you’re pretty content with the quality of life you’ve obtained and your family members are well looked after, I’d advise that you to look into different investment opportunities and attempt to increase your funds before retirement age. There are some fantastic firms out there who deal specifically with helping people to purchase gold and other precious metals, and as these items tend to increase in value steadily, perhaps you should give them a shot. I recently read a real review of regal assets and discovered they’re the industry leaders, so try them out. 

Purchasing Land

Regardless of the amount you have to spend, land in the US is always going to increase in value. So, whether you can afford to buy 10 acres or even just a single plot, using your cash in this way is guaranteed to keep it safe until you know what you want to do with it long term.

Anyway, it’s time for me to go now. I’ve got to do some serious research into the gold market as I’m actually considering making a small investment myself. I’ll let you know how I get on.

Until next time my friends…

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Making Plans For Your Retirement? Here's How To Get Your Finances In Order

Everyone dreams of the day when they can throw away the alarm clock and stay in bed for as long as they like. No, I’m not talking about Sunday, I’m referring to your retirement and all the benefits it will bring. The only trouble is, most of us have absolutely no idea how long we’ve got on this planet, and so it can be somewhat tricky to determine the amount of cash we’ll need to survive. It wouldn’t make much sense to save hundreds of thousands only to pass away at the age of 70 now would it?

With that mind, I’ve written this post in an attempt to help you work out exactly what level of saving is appropriate, and to highlight some of the measures you can take to ensure all your finances are in order before the big day comes. So take a moment or two to read through the advice relayed below, and I’m certain the position I’ll leave you in will be much more favorable. 

Identifying Pension Schemes

Anyone who’s worked lots of different jobs could realistically have enrolled in numerous different pension schemes over the years, and although most providers should contact and inform you about the money they hold, some less than reputable companies will avoid this at all costs, meaning you’re going to have to chase them up. Employing the services of a respected financial planner is usually the best way forward, as they often specialize in helping people with matters like this. Luckily, the industry has been experiencing a significant boom over the last few years and so you should have no trouble locating financial planners in Perth, London, Kingston or any other major city within the commonwealth. 

Cashing Your Investments

People who’ve done well during their working lives may well have invested some of their earnings in the stock market or in some cases even property. If this applies to you, the chances are you’ve done very well for yourself over the years, but now is the time to cash those investments and live off the outcomes. Again, a financial planner can help you with this, and might even be in a position to suggest alternative methods of utilizing the funds to create a stable income, but regardless of their advice, unless the capital is lower than the amount you need, I’d take the money and run. 

Paying Of All Debts

Debtors and creditors are the last thing you want to deal with at a time in your life when relaxation is supposed to be your main pastime. This is why settling all your debts during the early stages of your retirement (or even before) is definitely a good move. Upon completing this task, you’ll know for certain that all the money in your bank is spendable, and this will help you to construct your monthly budgets.

So there you have it my friends. You should now have a much more accurate view of the tasks ahead and what you need to do to get your finances sorted in order to achieve a happy and stress free retirement.

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Why Do Some People End up Empty-handed After Their Retirement?

retirement (Photo credit: 401(K) 2013)

Retirement can be considered one as big decision in life. It is something that people plan keenly. Most people would describe retirement as finally embracing the final stage of their careers where all they have to do is just look back if they were able to fulfil their dreams or if their whole employment span was a fruitful and productive one. But some people reach the end of their careers without really thinking what’s going to happen next. Some people think that since they’re done sending their kids to school, have enough money in the bank and applied for necessary insurance assure them a life after retirement. What could really be the main reasons why people end up empty-handed after retirement and don’t see anything out of their long years of hard work?

1.) Lifestyle

It is given. People tend to disregard the idea of retirement. Young professionals like those in 20’s and 30’s, the idea of ending their professional lives and relying on savings would always seem covered. Young ones are always focused more on their careers, enjoying a simple life or just living by the day. These people are active spenders. Even with other age ranges, people would simply just rely on the retirement packages since it is still far from happening.

Getting a big retirement package doesn’t really secure a promising tomorrow especially the lifestyle that they’re living and if they will be able to sustain it. It would still depend on how people would go about what they have and how they intend to grow it. Even in other aspects in life, wise decisions really matter and if you know how to run things well which same goes with retirement. Life after retirement has to be embraced well. 

2.) Retirement Planning Advice

Some people who retire consider big figures projected by retirement packages and spend it as if it will never run out. This is the major problem especially those who retire, this time, in their middle age. Sadly, some people who retire are the ones with no long-term plans after years of working. The idea of retirement should not just stop there. Some may ignore the idea but yes, there is such thing as Retirement Planning Advice. Even retirement needs a thorough planning and should be taken seriously. Since retirement is the last phase that everyone is gearing to, it would still be proper to take steps carefully and enjoy the real perks of it towards the end.

Yes, financial freedom and pre-enrolled necessary insurances are indeed important matters. That's exactly where such various retirement planning come in. It is that very same with planning your life in general where the difference is just, retirement is preparing and looking ahead for what is in store for tomorrow without being drastically empty-handed.

Mismanagement of big amounts even if it is not for retirement could be really challenging for most people. Sometimes, people tend to forget how to balance spending, saving and planning. Once that last and most coveted pay check is released, a lot of things come in to one’s mind and forget those important things that were planned ahead. People end up dropping the art of managing retirement packages. 

Managing retirement packages and even insurances are things that have to be taken into consideration seriously apportioning it to different facets of life. People do have issues on manoeuvring their financial freedom and capabilities. 

Bottom line is, spending shouldn’t be the end goal of retirement, and it should be still about building life after it. 

Ending a professional phase should be a start of something productive as well.

Author's Bio
Ian G. Elbanbuena is a blogger and infopreneur who writes on various topics mainly finance, self-improvement, business and marketing. At present he works as marketing staff at comparehero.my, Malaysia's leading comparison website. This portal helps individuals in making the best decision by comparing rates from different finance providers.

Best Tips For Becoming Financially Ready For Retirement

Entering retirement phase of life used to be a matter of age, and most people have a defined retirement benefit plan offered through their employer, once you reach a specific age, you can retire and start receiving those benefits. Even if you plan to rely on social security as your main source of income for your retirement expenses, most people retiring need to have a plan in place for their finances in case anything happens.

Today, the issue of retiring is much less dependent on the person’s age, than it is based on how much money they have saved up for their retirement. Because of the major decline in employer-sponsored retirement plans and the rise in 401(k)s and IRAs, planning to successfully retire becomes a priority. Below are some great tips to make sure you are financially ready to retire.

Planning Where You Will Live

Several retirees in past generations would move from their family homes in the Northwest or Midwest to live in the sunnier states of California, Arizona, and Florida to escape the cold. Today, many find they can make their retirement savings last a lot longer by moving to other states when they retire. Find a place that lets you do what you love, while still offering good retirement plans and standard of living.

Retirement Plan

It’s important you have an organized plan for how you will put money away for your retirement, and to implement that plan as soon as possible. Estimates are that more than one-quarter of the people working in the United States have under $1,000 in their savings account – including funds for retirement. It will probably be a long time before these people can financially afford to retire. Build a retirement plan early in life, and implement it as soon as possible.

Financial Obligations

Unfortunately, not everyone goes into their retirement years with no debt. Instead, many still have mortgages on their residence, co-signed obligations for the college education of their children, and some are still paying off their own student loans. This can add up to a lot of consumer debt in addition to credit cards. Before you decide if you are financially ready to retire, have a solid understanding of your financial obligations and debts so you don’t eat into your retirement funds.

Your Health

The biggest expense for most people retiring is ongoing health care. Even with the most recent health care reforms, the costs for health and medical services continues to increase, and it will probably increase even more. Be completely honest with yourself and identify the potential health care expenses you will face during retirement so you can plan accordingly. Remember, the time might come when you have to consider assisted living homes, or retirement communities to live in with limited medical help available.

By planning ahead, you can feel sure that when you are ready to retire, you will have the finances to make it happen. Use these tips and some smart financial advice to make your retirement dreams a reality.

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.

Retirement Offers you the Opportunity to Pursue Things Closest to Heart

All your life you worked hard. Now you are retiring with a significant amount as savings, pensions, and returns from investments. With plenty of time at hand, now you can engage in things that you always postponed for the lack of time. For many retirees, this translates to the opportunity of starting their own businesses. The availability of a lump-sum amount of spare money also supports the idea. Besides, sitting idle in retired life is undesirable. One of the best uses of time is to start your own business venture. However, you need to proceed systematically. If you are already sure about your business idea, then it is well and good. If you are unsure, you can consult am expert. 

Here are a few basic aspects that you need to consider when you are planning to start your business. 

Find an idea that involves calculated risk

All your life, you saved for the future after retirement. Now that the future is already here, you can partly let go the idea of saving for the ‘future’. That means, as a retiree, you have sufficient spare money to take more risks than when you were young. So, if a business involves risks, do not purview it from the cautious perspective you used when you were at a job. Instead, adopt a more carefree attitude than before on analyzing the plan. If you have to take some risks, so be it! Now, you can afford it. 

Analyze ideas close to your heart

Maybe, you always wanted to get into the movie production business. Now that you have the opportunity, check the different aspects of entering into the field. Do your research about the various ways you can enter into the field. Besides the major producers, many filmmakers also look for new producers to support their films. You have to be sure about the profitability of the film where you would be investing. Inquire about the required registrations and other aspects of getting into film production. You can act on any idea that has been always your unfulfilled ambition. You have but one life. Now is the time to fulfill your aspirations.

Leveraging past experiences

If you have been in the financial field, you can work as senior consultants. This applies to any field. You can always use your professional experience and monetize it after you retire. However, you need to check the relevance of your experience though. Also, you need to be confident of providing a fresh perspective on a field where you have worked throughout life. 

Participating in social causes

Many retirees also feel that after years of working for others, now is the time to give back to the society. So, you can set up a business surrounding a social cause. So many social issues can benefit from the profits of your new business. Homelessness, senior support, cannabis legalization and veterans support are just some of the burning issues that can benefit from your involvement. Besides, there is always scope for expanding your business in these fields. Take the legalization initiative for example. With two states (Washington and Colorado) legalizing recreational use, and talks ripe in many other states, this presents a huge business opportunity for the interested.

Author Bio: Marie is one of the leading consultants at best-binaryoptionsbroker.com. She frequently helps retirees on the fine details of how to set up a new business. Her acumen for evaluating the financial situations of her clients and suggesting customized solutions can be highly helpful to you.

Why You Should Consider Moving to a Small Town for Retirement

. (Photo credit: Wikipedia)

Traditional retirement has changed greatly in recent years, as many couples and individuals can no longer afford to keep up with their lifestyles while completely retired. As a result, these people are not fully retiring, but are rather going through with semi-retirement. 

This, however, is not necessary if you can make a few lifestyle adjustments leading up to your big day. One of the most effective adjustments that you can make is moving to a smaller city, as you will find that the difference in the cost of living could make full retirement more palatable. 

Selling Your Home

You might plan to sell the family home before retirement anyway, but if you are buying a condominium in the same city, you might not end up too far ahead. When staying in the city, your condominium could end up costing almost as much as your home, so you will not have much left over.

Some retirees choose to rent a place, but this constantly eats away at your retirement funds and does not provide a return on the investment. If you can sell your house in the large city and move to the suburbs or a smaller town in the same area, you could save hundreds of thousands of dollars. This money can then be put towards your retirement goals, which leaves you in much better financial shape. 

Cost of Living

In addition to the money that you make on the sale of your house, you will find that other expenses are far less in smaller cities. Since you will not have to drive as far to reach destinations, you will spend less on fuel. Things like restaurants and entertainment will be cheaper, unless you move to an exclusive suburb that has an inflated market. 

Quiet Lifestyle

Perhaps the main reason to relocate to a small town is the lifestyle that it affords. You will not have to worry about traffic and crime during your retirement, but can instead spend your time relaxing and enjoying the region.

You can go golfing multiple times per week without worrying about the course being overly crowded and can walk into your favorite restaurant, sometimes without even needing a reservation. The slower pace of life is much easier on you as you age, as you can avoid the big city problems that have plagued you during your working years. 

Checklist before Moving

Before you choose to move to a smaller center, you should consider a few things. First, make sure that you are close enough to visit your children and grandchildren before you go. Nothing is worse than moving on to greener pastures, only to find out that you miss your family and do not get to spend enough time with them.

Secondly, you should ensure that you have the right personality type to make friends in a new environment. You will be starting from scratch in your new town and you will not know anyone. If you struggle to make new friends or are introverted, you could struggle and become lonely very quickly.

Thirdly, you should look at the activities in your new city to see if they interest you. If you do not like fishing or swimming, moving to a beachfront community might not be your best option.

Overall, you have countless choices when selecting a retirement destination, so choose one that not only allows you to reach your financial goals, but your personal goals as well.

When Is It Too Late To Start Your Pension

If you’re knocking fifty, chances are you’re becoming a little concerned about how you will pay for yourself upon retirement. The problem began in the 1980s really, when rich folks were having such a fantastic time under the Thatcher government that they forgot to start saving for their old age. Because of that, there are now millions of soon-to-be pensioners with no financial backing at all - so don’t worry too much, you’re certainly not alone. 

With that in mind, surely you must realise that even now you still have enough time to start paying into a pension scheme for when you retire. Okay, you won’t be a well-off OAP, but you’ll definitely be in a better position - that much is guaranteed. 

So, if you’re considering starting a late pension, then have a quick read through the rest of this short article and I’ll do my utmost to help you out. 

Find Out What You’re Worth

Before opting to pay into a pension scheme at this late hour, it’s important that you spend some time working out how much money you’re currently worth. You might find that you’re living in a fully paid for property that’s worth over £200,000, and if this applies to you, it might be more sensible to sell the house, downsize, and live off the profits. 

However, if you have no assets and determine your worth to be less than this amount, it probably is worth looking at your options for pension schemes.

Utilise Tax Relief Programs

Okay, so, you might not realise this but the UK government allows for tax relief on pension payments, meaning that if you pay into a scheme during your working life, you are taxed less on your wage. In effect, for every £1 you pay into a pension scheme, it only costs you around 70 pence.

Make Maximum Payments

As you’ll be joining your pension scheme far later than most, it’s vitally important that you opt for the largest payments possible. This will obviously depend on how much you can afford, but if you want to see substantial returns when you finally retire, it’s worth paying as much as you can now. 

Also, don’t forget that if your pension pot is large enough, you could still buy an annuity when you reach retirement age that would provide you with a stable income until the day you die. However, this annuity won’t be large enough to cover day-to-day living expenses if you don’t start saving fast.

Always Seek Impartial Advice

When looking for a suitable pension scheme you won’t really have a lot of time for calling round hundreds of different providers, so make sure you seek out advice from an impartial body who have your best interests in mind. Don’t simply trust the word of the pension provider, as they will nearly always claim they offer the best deal - and they can’t all be right, can they?

My grandmother was in the same boat as you last year, and she chose to get in touch with the annuity specialist, as they offered fantastic advice as well as pointing her in the right direction to find a good provider. 

I hope that helped somewhat and you now feel more confident about making the leap and sorting your pension out before it’s too late. So the answer the question proposed in the title of this article “No, it’s never too late”.