5 Ways to Reduce Living Expenses and Save Money

As adults brace for their fiftieth birthday and continue to grow older, they worry more about the unlikely possibility of comfortable retirement. Although the economy slowly grows and unemployment rates drop, many older adults find themselves forced or willing to work into their 60s and later in life.

They still have mortgages to pay, college tuition for their children, car payments, and other bills that reduce their savings accounts or retirement funds. Those individuals not able to consider or not wanting to retire must readjust their long term life plans.

That’s why now presents an ideal time to change your lifestyle, lead a healthier life, count your pennies, live within your means, and save. The cost of living will not cease to rise while annual salaries and benefits remain stagnant.

The only way for these older adults to brace for change, prepare for a possible delayed retirement, and to save is through changing the way they live in small, significant ways.

1. Conserve Home Utilities

Reduce the utility bills and save energy at home. Often, especially during the winter or summer months the heating and electric bills paralyze home owners, especially those still paying mortgages.

Take the tiny steps to decreasing that utility bill by shortening the length of showers, washing the dishes, the number of times you wash clothes per week. Turn off lights when possible. Unplug power adapters to computers, tablets, and cell phones that can consume costly electricity. During winter and summer, keep the thermostat at a reasonable temperature and do not change it often. Maintaining a consistent temp ensures less electricity, gas, or oil usage.

If possible, perhaps invest in an energy efficient dishwasher, washing machine, or other household appliances. More energy efficient homes and eco-friendly houses are popping up everywhere. Consider the investment of roof solar panels if you have the necessary funds or think the investment is worthwhile after a consultation.

If you’re not overly reliant on cable television and internet within the home, then eliminate that costly monthly bill. Most individuals have internet access via their smartphones when home. Save the long computer tasks for a couple hours at Starbucks, the local public library, after hours at work, or any places of business that provide complimentary Wi-Fi.

2. Rent to a Tenant

After the kids moved away from home and went off to college, it’s time to start considering renting their rooms. A tenant will help pay the utility bills and even their extra rent contributes to a mortgage. When maintaining a house, the living expenses can grow out of control quickly.

3. Downsize

As individuals grow older, maintaining a larger house proves more difficult. Older parents don’t have the time, money, or resources to maintain a large house that was once necessary for their families.

Fight the urge to keep every piece of furniture, old stationary bikes, and anything you might find useful one day and downsize your home. Those individuals in their 50s or older lived through countless shifting economies that leave them with a frugal mindset. Instead donate, sell, or trash the unnecessary items in your home. Rent or sell the house and move into a smaller condo or apartment.

4. Credit Card Benefit Programs

If you failed to do so already, apply for one or two credit cards that boast fantastic reward programs. There are countless credit cards offered through VISA, American Express, Discover, Capital One, and Chase that provide numerous cash back opportunities on daily purchases such as gas, food, eating out at restaurants, online shopping, and even going to the movie theatre. You can earn redeemable points on travel for cash or free flights.

5. Short Term Loans

When entering old age, it’s important to know your financing options, especially in the event of unemployment that creates financial emergencies. Absorbing unemployment in your 50s could very well be nightmarish initially. Don’t let that unfortunate experience side track you financially.

While searching for a new job or in between jobs, there are lending options available to help pay for living expenses such as groceries, gas, rent, or utility bills. Explore the options of personal loans through lending institutions such as the ones available at Instaloan.com or with friends, credit cards, payday loans, and short term bank loans. These borrowing options save money in late payment fees, late rent payment charges, and related expenses.

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Auto Financing Options for Retirees'

If you've recently become retired but have suddenly found yourself needing to purchase a new car (to visit family, for instance), there's a good chance that you'll want to get an idea of what your current financing options are now you're retired.

Whether you worked hard all your life to earn a pension plan from your company, or you invested in property as soon as you could and the investment paid off (or both), there still may come a time in which you need to look towards alternative methods in which to raise financing for your new car. Three of the most common, and useful, methods are listed below.

1) Loans

Even as a retiree it's very possible for you to get a car loan approved, especially if you've built up an exceptionally good credit score over your life. Though some may worry that they may be turned down for a loan because they're no longer working, in truth the companies paying out for these loans are much more interested in how quickly you've paid people back in the past (your credit score) rather than whether or not you currently have money coming in.

Of course, finding an auto loan that's right for you has become much more difficult in recent years as so many online sites have popped up selling essentially the same thing. For this reason, only look for the best car loans you can find online, and speak with them on the phone directly as the sooner you get them on the phone the sooner you can arrange a deal that suits you (something which is much easier to do when speaking to a real individual).

2) Children and Grandchildren

Borrowing money from family and friends can sometimes be difficult, but if the only reason you need a new car is so you can drive up to visit your children and grandchildren then there's a good chance that they would be very happy to help you finance your purchase, as it'll allow you to see each other more often.

Of course, this won't take away from some of the awkwardness of having to ask them for money, something which can sometimes cause much pain and disagreement between families if you're unable to pay the money back on the agreed-upon schedule. Keep this in mind before approaching your children and grandchildren, but by no means take it as an absolute deterrent.

3) Your Savings

Even if you do have savings you may not want to use them to purchase a new car – instead looking into getting a loan so you can pay for the cost of your new auto slowly. This is entirely understandable, as when you move into retirement your thoughts shift to what you'll be doing with your money after you're gone, with you in most circumstances wanting to leave as much as you can to your children.

If you have a significant amount of savings, however, this may well be the best route for you as it likely won't even make a dent in the amount you've saved up. If you've been making money thanks to your savings growing with compound interest over the decades, it won't hurt to take a small amount out to pay for a new car, with this money being much better spend in this way – so you can visit your family whenever you please – than it would be if it was left to your children and grandchildren.

In conclusion, if you've recently become retired but have suddenly found yourself needing to purchase a new car (to visit family, for instance), there's a good chance that you'll want to get an idea of what your current financing options are now you're retired.

About the Author:

Blink Finance is a firm that offers financial services such as how and where to get the best car loans, personal loans, or business loans in Australia.

Six Industries That Will Perform Well as Baby Boomers Retire

The first wave of baby boomers has reached retirement age and they continue to buck trends; defying expectations set by previous generations. Nearly 80 million baby boomers born between 1945 and 1964 have a combined wealth which tops $3.5 trillion. This demographic block is a unique force to be reckoned with and some industries are well placed to benefit from this wealth. If you are looking to change your career, or just to start a side business, these are some of the industries you should be looking in to.

Senior Dating Companies

Believe it or not, the divorce rate has increased in the past 20 years among baby boomers over 50. As this group enters their golden years, they do so with vigor and a level of confidence unknown to previous generations. Rather than going “gentle into that good night” this segment of the population actively seeks love and companionship if they are single due to divorce or widowhood. Many may have tried online dating before, and become disaffected, and others may not trust internet sites to help them find companionship. This being the case, clubs and venues that cater to the single senior crowd have plenty of potential.

Healthcare Industry

Geriatric healthcare and areas that support it will become a booming industry. There will be an increase in demand for all services from routine and preventative care to palliative care. The Department of Labor projects the demand for in home care will grow about 70% over the next decade. These services can be provided by small and large companies, and there is room in the market for both, but smaller players should be prepared to handle the ins and outs of medical billing, and negotiating with insurance providers. An increasing number of seniors will likely rely on government supplemented healthcare, and those who wish to enter this market would do well to study out government regulations and set up relationships with insurers now.

Fitness

Many baby boomers wisely have embraced fitness as a way to stave off aches and pains that accompany age. There has been an increase in the number of “mature” clients who attend gyms and use the services of personal trainers. Healthier, toned seniors, have become a game changer as rocking chairs are swapped for mopeds. Fitness programs tailored specifically for seniors and their health concerns will do well.

Senior-Friendly Communities

The demand for retirement/senior living communities that provide access to amenities like centers of culture, schools for continuing education and athletic facilities will soar. Architects will see an uptick in requests for senior-friendly communities. Along with these communities will come a demand for good transportation and nearby services. Aspiring entrepreneurs should start investigating what types of amenities and services these communities will want, and be prepared to serve them.

Recreation

Baby boomers will turn to recreation workers for trips and excursions tailored-made to their group. It behooves travel agents and those connected with the tourism agency to create packages that are senior-friendly because there is a burgeoning market on the rise.

Financial Advisers

Finally, baby boomers will become more reliant on savvy financial advisors to ensure their nest eggs will yield necessary dividends to support a comfortable retirement. With all the talk about entitlement uncertainty, baby boomers are aggressively exploring ways to secure their financial future.

Since the census bureau projects that Americans 65 and older will comprise 1/5th of the population by 2030, entrepreneurs should take note and focus their attention on this group. These industries and others are poised to enjoy a surge in baby boomer consumerism.

4 Good Tips To Secure A Stable Retirement

There has been a lot of talk these days about retirement funds dwindling and the fact that many people may be forced to work late into their 70s. The truth is that those who plan ahead for their retirement and make intelligent investment decisions should have no trouble retiring when they feel the time is right. Here are four good tips that should ensure that you have a stable and financially secure retirement.

1. Invest in Stocks, Bonds and/or Mutual Funds

Investing is the best way to ensure that you have enough money to retire at a time of your choosing. While you may save up a lot of money through 40-50 years of working, investing gives you a chance to double or triple that sum by the time you retire. By conducting bond market research, buying stocks that you believe will rise in price, and researching the best mutual fund options, you will give yourself a great financial platform in retirement. Some prefer to invest in stocks and bonds independently. However, if you do not trust your knowledge of the markets, you may be better off letting a mutual fund handle the specifics of investing.

2. Keep Your Mind Sharp

Even if you have retired from your job, it is important to keep your mind fresh and stimulated every day. Find an intellectual activity that suits your personality. Whether it is reading a book, learning a new language, solving puzzles and riddles, or becoming a history buff, exercising your mind every day will help you stay healthier and livelier much longer.

3. Exercise Regularly

Keeping your body in the right shape is just as important as exercising your brain. While you are probably not going to be completing any marathons when you are 65 or 70, it is always good to walk a few times a week or head to the gym. Exercising will help you maintain a healthy weight, lower blood pressure, and keep your muscles and bones in tip top shape as you age.

4. Explore New Places and Things

Many people enter retirement and lose their purpose in life. No longer having to work everyday, they can become lost and confused in the adjustment period. Make exciting plans for retirement, such as visiting new continents, exploring new areas in your city, and meeting new people. Sometimes when we become adults and start having to spend all of our time working, we lose touch with some of the activities and hobbies that make us happy. Retirement is the perfect time to dust off your old guitar, or read that novel you always talked about reading. Not only will these activities broaden your horizons, but they will keep you excited and in good spirits.

Retiring can be daunting and overwhelming at the best of times, which is why you do not want to be unprepared. Secure your financial future, and make plans to keep you occupied during your retirement years. That way, retirement will be the next phase of your life, instead of being the beginning of the end.

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.

An Over-50s Guide To Home Buying

If you are 50 years of age or older, then let me be the first to congratulate you - as this is probably one of the most awesome times of anyone’s life!

You will have already worked for most of your life and in the very near future you will be able to look forward to retirement and living out the rest of your life as comfortably and leisurely as possible!

During this stage of a person’s life, some important decisions have to be made about the future, and where you live is one of them.

Thinking of selling up? Read this first!

Sometimes it can be quite difficult to move on from the family home, a place where you have spent a large portion of your life in, and a place that holds so many dear memories to you.

But when the kids have all grown up and left home to start their own lives and their own families elsewhere, it can get a bit lonely at home, so many people in their 50s decide to sell up for pastures new.

Some people also decide to sell their homes and downsize to smaller properties so that they can build up their retirement fund, whereas others may not want to maintain a larger property, or it may even be impractical for them to live in should they have mobility issues.

Whatever the reason, if you are thinking of selling your home and moving some place else, then you should consider these important factors before you 100% decide to do so.

Live within your means

It might be tempting to sell your home in Ohio and move to Washington, for example, but the golden rule is to never live above your means. As you approach retirement age, you should not have to worry about owing lots of money to people!

This is probably going to be your last ever home purchase if you decide to sell up and buy another home some place else. Make sure that the proceeds of your current home’s sale will cover the purchase price of your new home.

Sometimes it might be necessary to take out a small mortgage to make up for any shortfall, so using the example above, if you are planning on moving to Washington, then enlisting the services of reputable mortgage brokers in the Washington DC area will ensure that you get the best mortgage deal possible for your requirements and circumstances.

Choosing the best location

As we get older, we are less likely to want to drive around as much as we used to, so it makes sense to move to an area with good transit links.

It is also worth considering moving to an area that is well-placed for access to various amenities, and can be easily accessed by visitors such as friends and family.

Get advice on what’s best for you

Finally, it is always a good idea to get professional advice on the best thing to do for your particular requirements and needs. The last thing you want to do is make a decision which may prove to be wrong and costly later on!

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 Retire After Getting a Late Start on Saving

retirement (Photo credit: 401(K) 2013)

Ideally, you would have started saving for retirement in your early 20s. In this case, by the time you were 50-years-old you would have had a decent amount put away with roughly 15 years left to add to this amount. Unfortunately, this is not reality for many people globally, but it is not the end of the world. The typical American household in the 55 to 64 age group has only accumulated enough in retirement assets to provide an additional $400 per month on top of social security, according to an article found in the USA Today, so you are definitely not alone.

Getting a late start does not have to mean the end of your retirement goals, as long as you make use of the time that you have left before the big day arrives. Despite what people may have told you, there is no right way to retire. It is a very individual thing, so come up with your own plan and stick to it.

Spend Less

Perhaps the greatest mistake that couples make once their children have finished university and their house is paid off is they start spending more money. This can include lavish vacations, new vehicles and remodeling the house. In fact, the USA Today reports that the average couple increases spending by 51% once the kids move out, which makes it very difficult to save.

Even spending $500 less per month until retirement and putting it into a 401K can give you an extra $600 per month after retirement, depending on your investments. That makes a huge difference when attempting to continue your current lifestyle when you are no longer working. 

Consider Your House an Asset

If you have purchased a house, this is probably your greatest asset. A large family house will bring you in a great deal of value and you can invest this money in your retirement savings. This will also reduce your monthly expenses since you will not have to pay for a large house.

Once the children move out, you do not have much use for a large house anyway, so it makes sense to get out and use the money for your eventual retirement goals. Unless you have made money saving renovations like adding solar panels or digging a well, your monthly bills will cost more than they are worth once you have an empty nest.

Plan to Keep Working

Those who do not have much money put into their retirement savings might want to consider working for a few additional years. Not only does this give you more money to put into your retirement savings, it also means a few less years of draining your retirement fund.

Many people choose to retire when they are feeling burnt out by their job. At this point, it might be a good idea to start a second career. This gives you the chance to work a new job for a few years, which will increase your retirement savings, while giving you the chance to experience something completely different.

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.

Image source

6 Ways To Save For Your Retirement

Anyone already in the 60s will know exactly how important it can be to save for your retirement whilst you're still young. Those who’ve made adequate arrangements will be looking forward to finishing work and living the life of luxury, whilst people who’ve made bad choices will start to feel rather stressed about what their future may hold. 

Thanks to the new workplace pension schemes being rolled out across the UK at the moment, most young people should have a more substantial cushion when they reach their twilight years, but that doesn’t mean that keeping some cash aside for a rainy day isn’t a good idea. 

Here are the top 7 ways you could save for your retirement before it’s too late:

1. Get An ISA - The first thing you should all do right away is take a trip to see your banking provider and open an ISA account. These provide high rates of interest and depending on whom you use, could allow you to save anywhere between £3000 and £5000. With no tax to be paid on any of the money accumulated, this makes for a perfect rainy day fund.

2. Clear Your Debts - There’s hardly any point in saving if you’re just going to be forced to hand the money over to cover your debts, so you should work hard to clear these as soon as possible. Just paying a little more than the minimum amount off your credit card can make a significant difference.

3. Join A Private Pension Scheme - Although you should be automatically enrolled in a workplace pension scheme soon, there are no laws surrounding how many of these policies you can take out, so doing some research online and locating a reputable private solution could also be very beneficial.

4. Cut Down On Luxuries - We all want to have a good time whilst we’re of working age and earning the cash, but it’s even more important that you raise the quality of life you’ll experience during the twilight years, and this is why cutting back on luxuries you don’t really need like designer clothes and flash cars would make sense.

5. Make Sound Investments - If you have a lot of money lying around not doing very much, it could be wise to seek out fruitful investment opportunities to increase your pot. I realise that most people have no experience with this kind of this, which is why I’d like to point you in the direction of a blog called MoneyStreetSmart because they have some fantastic advice articles that deal with all elements of personal finance.

6. Stop Moving House - You know; thanks to my family and their lack of foresight, I’d moved house over 11 times by the age of 16, meaning neither my mother or my father have a great deal of money within their properties. Picking one home and sticking to it will provide you with the best opportunity to accumulate equity that can be released when you retire by simple selling your home.

Well, I hope now you understand the importance of making early preparations for your retirement and ensuring you don’t have to rely on the ever dwindling state pension of only £110 per week.

Good luck with everything!

Savings Plans for Those Hitting Half Century of Their Lives

retirement (Photo credit: 401(K) 2013)

If you will be reaching the age of 50 this year, it is assumed that your savings for the rest of your life is already halfway through. However, the chances are that you are lagging behind in the savings area and need to start collecting money for your future. The good news is that there are plans which give opportunity to you to work on your financial security for post-retirement life.

Making Contributions:

It is possible that you decide to make savings for post-retirement life at a later stage of your life. You are not an exception and there are many who like you, have just begun with their savings. The concept of ‘catch-up’ is applicable to such citizens who are 50 years or above in age so that they can make contributions above the limit decided for various savings plans.

You may have just reached 50 years of age but you still have a window of opportunity for adding to your savings by making contributions to any IRA or by making ‘salary deferral’ contributions to a 457 plan or 403(b) or a 401(k) plan.

IRA Contribution- To make IRA contribution you can either opt for 100 % compensation or lesser part of $5500. But for those who will reach 50 years you can make additional contribution of $1000 to the account.

Plans Sponsored by Employers- For plans that are employer-sponsored you are granted the permission to make more contributions that the limit that is set only if you are to reach 50 years with the end of the year- a privilege only to those that are of and above 50 years.

• In case of 401(k) and SIMPLE IRA plan where you are allowed to make deference of 100% of the compensation up to an amount of $12,000, you can make a payment of extra $2,500.
• In case of 457, 403(b) and 401(k) plans where the deference amount can reach up to $17,500 an additional amount of $5,500 is allowed for those that are 50 and above in age. 

Multiple Plan Limitations:

While participating in more than one plan that is employer-sponsored, contributions made through the ‘salary deferral’ features should not surpass the ‘dollar limit’ that is applicable for the particular year.

Miscellaneous Issues:

There are other issues too that have effect on all that you plan for your retirement like sponsoring your child’s college tuition fees or supporting your fully-grown child rather than adding to your savings for life after retirement. You might as well think of investing in ‘long-term care’ or LTC insurance for prevention of retirement savings usage to cover long-term illness expenses rather than using it to finance your retirement life.

Conclusion:

Hopefully the ideas mentioned in the above paragraphs will help you to make your life post-retirement a financially independent one. Those of you who fall in the range of mid-forties and mid-fifties, you still have the time to retrace your steps and make financially wise decisions. You should consider investing in insurance plans to cover unexpected expenses like accidents. This will help you to financially secure your post-retirement life.

Author’s Bio: Alisa Martin has been authoring articles on various subjects related to finance. She has knowledge on Second Citizenship for investors and other such topics for contributing articles.

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.

Are Annuities A Smart Investment?

In the economic bust of 2008, we learned that easy credit is no way to stretch dwindling retirement funds. Many senior employees took early retirement trusting that their Market-dependent 401(k) would produce an income stream capable of sustaining their unexpected situation. When it did not, they turned to credit hoping to make it through to better days. As a result they wound up first in bankruptcy, then homeless, and finally destitute. If they and their employers had utilized annuities instead of Market driven investments to create retirement income streams, then a lot of grief might have been avoided.

It’s worth checking how much you need to retire with the lifestyle you want.

Annuities Are Sustainable Even In a Down Market

The rate of return offered by fixed annuity plans is based on the amount of time your money is kept out of your hands by the Annuity Fund. The usual holding period is 5 years or more. This means your money is untouchable during those years. In return for this commitment you will receive a guaranteed rate of return. This rate is usually fixed at 3% to 5% depending on the type of annuity you purchase and the length of time your money is held.

Unlike stock portfolios and mutual funds, the income you receive from annuities does not fluctuate even when the Stock Market rises and falls. This is because annuity rates are anchored on highly stable investments such as US Treasury Notes and Bonds. Because the payout is spread over longer periods of time, Annuity Fund managers can react to changing economic conditions with thoughtful planning instead of panic. This enables them to give you the best annuity rate available. 

Stocks Can Produce More Income In a Shorter Time

While it is possible for an investor to grow wealthy over night in the Stock Market, every downturn produces its share of impoverished investors. It may be fun to pick the right stocks and watch your investment grow, but it is no laughing matter when the very safety net you depend upon to see you through rough times rips apart just when you need it most.

As this article explains, fixed annuity rates are not tied to Market performance. You will get your 3% return even if the Market drops to the floor. And even more important; you will get all the money back intact when the required holding period is up. You will also have made 3% interest on that money. And if, for some reason, you have to withdraw the money before the time is up, a predefined surrender fee will be imposed. But you will still get the majority of your money back. Can your Market-driven 401(k) make that claim?

Sanity and Safety

Make one bad investment in the Market and you can wipe out your retirement nest egg. Annuities offer investors few guarantees. However, most annuity plans are sane and safe. Most important: the money you put into an annuity will still be there after 5 years. Can your 401(k) portfolio make the same claim?

Smart Tips When Preparing for Retirement

retirement (Photo credit: 401(K) 2013)

Between 45 and 54, the idea of retirement often becomes more important to many individuals. But in order to make sure that this goal is attainable, there are several smart tips you will want to follow.

Catching Up After Age 50

For those just beginning to seriously save towards retirement, Investopedia.com says, “Don’t be disheartened.” “Better late than never,” is definitely applicable in this case. And there are actually special provisions for individuals people aged 50 years and up to “catch-up” on their retirement goals.

For people age 50 and older, the limit of contributions to an IRA, 401(k), 403(b) or 457 plan is raised to an excess of the usual threshold. This allows salary deferral contributions to be higher which builds up a nest egg for the future more quickly.

Rebalancing a Portfolio

As you approach retirement, your asset allocation should be reassessed every once and awhile to ensure that your investments become less risky as you grow older. This is because as you move toward the end of your working career, you will have less and less time to recover from investment losses. So rebalancing your investments will help you find places to allocate funds that are more dependable as you near a time in which you will rely on them more.

Supporting Older Children

Another consideration to take into account is any children or other family who are still dependent on you. Although it sounds harsh, you may need to consider your own best interests if you are nearing retirement age and still supporting adult children who live at home. Think about beginning to charge them rent or a portion of their living costs. In most cases, you will actually be doing them a favor by encouraging their responsibility and maturity.

Preparing for the Unexpected

Another life factor which may become more real as you age is the possibility of long-term illness and more frequent medical costs. To protect yourself and your nest egg, it might be wise to look into long-term care (LTC) insurance. These sorts of plans will help cover medical expenses so that your finances remain stored for living and other costs.

Getting Free to Plan and Save

For many individuals, all of these plans sound like great ideas but are really quite impossible because of current debt and other difficult financial situations. In order to devote more attention to savings, you will first want to work your way to financial freedom.

Begin by focusing on paying off any demanding short term loans. TitleBucks.com and similar lending companies can be helpful in a serious bind. But to use them properly requires paying them off immediately and gradually weaning yourself off reliance on quick cash. Asses your lifestyle and find ways to make cuts so that you can live within your means. This is a great beginning step towards savings and investment later.

With these keys to achieving financial stability and preparing for the future, you can look forward to a successful retirement.

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 Overcome a Personal Finance Crisis in Retirement

retirement (Photo credit: 401(K) 2013)

Having financial troubles when you're retired is the pits. A financial crisis can strike at any time, however, and completely wipe you out. You've got little or no savings, and you just don't know what you'd do if you had to pay for a major car repair, a new furnace, or if you had to loan money to a friend in need. 

Go To Work Part-Time

One option that many seniors consider these days is going back to work part-time. Part-time work can include anything from a dietician or nutritionist to a mediator to Santa Claus during Christmas time. Now, dressing like Santa might not seem like it would rake in the big bucks, but it can. If you negotiate a 40-day season contract, you can reasonably earn between $10,000 and $50,000, depending on where you live.

That's more than some people make in an entire year. Of course, it all depends on your expertise. Entry-level Santas only make $10 per hour. 

Sell Your Annuity Payments

If you're desperate for cash, selling an annuity payment can help. This is mostly a last-ditch effort kind of thing though. Most courts in the U.S. make it difficult to sell payments to a third-party funding company unless there's a good reason for doing so.

Basically, you must prove that you will be put into a better position financially if you sell the annuity. Since annuity payments protect you from the possibility of spending through all of your retirement, many judges are reluctant to allow these transactions to go through. But you can convince a court if you wanted to, say, pay off a large debt or debts, if you were planning on using the money for emergency purposes, or if you needed the cash to pay for health insurance deductibles or an expensive medical procedure. 

Get a Reverse Mortgage

Reverse mortgages were popular in the mid-2000. They've mostly fallen out of favor because they were oversold. Still, for the right person, a reverse mortgage could be the right move. Basically, a reverse mortgage turns your home into a sort of savings account. Your home's equity is opened up, and you're allowed to spend it "at will."

Some companies encourage you to use an annuity in combination with the reverse mortgage, but many do not.

Now, because it's a mortgage, it's technically a loan against the property. The bank charges interest and fees, like closing costs, so there's a lot to consider before rushing out to sign paperwork.

One of the benefits of this type of loan, however, is that it does not need to be repaid prior to your death. If you plan on staying in the home forever, the reverse mortgage will be repaid either by your children or the home will be given back to the bank and the bank will sell it.

You can get around this by buying a life insurance policy that's just large enough to pay off the mortgage when you die. That way, the house stays in the family, but you get the lump sum of cash you need right now.

Anthony Jensen has worked with a number of retirees. He is thrilled to help people through difficult financial times.

Individuals seeking employment as caregivers are in a great position; the demand for caregivers is at an all-time high. According to the Pew Research Center, an average of 10,000 Baby Boomers in the United States turns 65 years old every day.

The need for caregivers will only continue to increase as Baby Boomers enter retirement. Government studies estimate 7 in 10 Americans over the age of 65 will need long term care at some point. 

It’s important that, as a caregiver, you understand how to give off a good impression throughout your job search in order to succeed at landing a job in this high demand market.

Creating a resume may sound obvious, but many people applying to be a caregiver skip this step entirely. Bringing along a professional resume that lists your previous employment and any related experience will help tremendously. 

Even if you have no prior professional care giving experience, you should list other jobs you have had to prove you are a dependable employee. Include any community volunteer or charity work you participate in, as well.

When you are searching for interviews, use social media to your benefit. There are tons of job listing sites for caregiver jobs NYC and many websites specifically designated for potential caregivers. 

Make detailed profiles and scour the online listings to find agencies and opportunities that match your needs. Do some research in advance to be sure you understand the average pay for caregivers in your area, both at agencies and when working independently, in order to decide your best route.

Always arrive early to an interview, dressed in clean, simple clothing that you would wear on the job. Being reliable is a vital part of being a caregiver and showing up a few minutes early never hurts. 

Ask questions and prove that you have done some research on the company, its mission, and how it is run. Demonstrate your ability to communicate effectively and solve problems, which are two huge parts of being a successful caregiver.

Don’t be afraid to be friendly and laugh when talking with a potential employer. People want to know that you are not rigid and serious and will be able to connect with others, especially the person for whom you provide care. 

Be warm and show that you have a sense of humor. Explain why you became a caregiver and display your passion for the profession.

A Scan Foundation report estimates that 27 million people in the United States will need long term care by the year 2050, and the need for caregivers will continue to increase as Boomers retire en masse over the next few decades.

Connecting and engaging with your potential employers can make all the difference in finding a caregiver job that fits what you are looking for. 

Take time to think about why you chose the path of caregiving, be genuine and honest in your interviews, and you may find the job search process just a bit easier!

About the Author: Barbara Davis is a big fan of all things N'awlins. When she is not exploring the culturally rich nooks and crannies of The Big Easy she enjoys working on her freelance writing career, frequently writing on such topics as retirement, Baby Boomers, and health care.

How to Successfully Retire at 51

retirement (Photo credit: 401(K) 2013)

Retiring by age 51 will take some significant planning and if you have the inclination when you are in your twenties, it won’t be that hard. Depending on your income at your early age, if you put away $10,000 to $12,000 year, you can have the amount you want to for retirement. http://on-msn.com/xFNNDE 

With age 51 being your goal, you can enjoy your retirement and still have enough body left to boogie on with the best of them. If an illness has hit you or your household, it may take away from the retirement, but at least you have it to lean on when times get hard.

So let’s break that down

If you have the forethought to take care of saving this money, then break it down even more so that your bite sized pieces are more attainable. $12,000 divided by 12 months equals $1,000 a month. That can be a sizeable amount for a coffee barista. So, let’s break it down even more and divide that amount by the days of the month. That is $33 a day. A lot of twenty something’s don’t make that much a day, so we should make this more user friendly for anyone.

Let’s do $50 a week. That calculates to $200 a month and $2400 a year. Multiply that by 20 years for the sake of this example and you get: $48,000. Not a bad haul at all, and if you have the inclination to invest, do it wisely. Meaning, have some help to get started, not just by diving into the market unknowingly.

It won’t

Forty eight thousand dollars certainly will not be enough to retire on, but it’s better than a kick in the patooty and you have the opportunity to help it grow with some aggressive investments; so do it. Be aware in the back of your mind, that you could potentially lose all that money as well. Are you prepared to start over?

If you

If you can grow into a six figure income, the $12,000 a year goal is a lot more attainable. Between what you have and what your spouse has, the growth can be enormous. Plug in your social security; if it still exists in twenty years, then you can retire very comfortably.

Keep in mind

Life happens and along the way you are going to lose a few and win a few. You may have a divorce and lose everything. Likely only half, as most states only allow the spouse to take half. You might also have a death to contend with or even an illness. Life throws an amazing amount of things our way. No matter what the lesson is that we are supposed to learn, figure out how to continue putting money away.

If you stop and don’t have an amount put in every week, you are only sacrificing one thing: Your retirement. Remember, your goal is 51. Are you willing to go beyond that? Will you be well enough to do anything when you reach that age? Will you want to travel like you have dreamed all your life? It’s totally up to you and how you do things. 

No matter

No matter what you do with this journey we call ‘Life’. It is up to you to finish the final chapter. You don’t have any more information how long you will be on this planet, than the neighbor or the dog next door. One thing is for sure; whatever you decide make it work for you, remember to do it with a smile on your face and a whistle in your heart. Go enjoy whatever it may be.

About The Author:

Blair Thomas is the co-founder of eMerchantBroker.com the #1 high risk Credit Card processing company in the US. He has been in the electronic payments industry for over 10+ years. When he is not running his business he spends his time writing and producing music, which has been featured in a variety of films.