How Safe Is Your Retirement Fund? 5 Things To Consider When Building Your Portfolio

When looking to retirement, you will want to save money and put it away in the right mutual funds and stocks. Otherwise, you are going to end up having a tough retirement. With this in mind, here are five things to consider when building your portfolio. 

Don't put all your eggs in one basket:

While you probably have heard this term before, you will want to listen to this advice. Think about it, if you look at the last few market downturns, you will notice that some stocks drop 90 percent, while others will not suffer as much. To avoid serious issues, make sure to buy mutual funds; or, if you don't want to buy mutual funds, invest in, at minimum, 15-20 companies. If you’re not sure where to start, there a ton of options out there when it comes to working with a professional. Look online, read reviews, talk to neighbors, there is a lot you can do. Thomson Schindle Green Insurance & Financial Services Ltd is one of those insurance companies up in Calgary and a great example of just how many options there are out there! 

Blue chips are best:

Without a doubt, if you are close to retirement, you don't want to look for the next Tesla, Facebook or Microsoft. No, you want your money to grow slowly and securely. Remember, while you might enjoy double-digit returns, you will hurt your chances at success if you keep buying lottery tickets.

Look for dividends:

If you are like most people, you will want to enjoy a steady income during your retirement years. To get this, you should buy some dividend stocks. Not only will you enjoy a decent ROI, but you can receive a quarterly check from the company. Then, you can use this money to fund your day-to-day life.

Check it out:

Every once in a while, you will want to look at your portfolio and see how it's doing. Otherwise, if you don't look at your returns, you will end up with lagging stocks and mutual funds that hurt your returns. Remember, there is nothing wrong with selling a losing stock if you want to make more money in the long run.

Bonds:

Without a doubt, if you are looking to retire and enjoy a safe and secure time in these years, you will want to buy bonds. While you don't need a portfolio full of bonds, you will want to buy a few. Ideally, when buying bonds, you should buy ones that will pay out. Remember, you don’t want to take a risk with this investment, especially if you are approaching retirement or already retired. Luckily, with municipal bonds, you can enjoy tax savings and a steady source of income.

With these five tips, you can enjoy a safe, secure and happy retirement. On the other hand, if you don't take it seriously, you will struggle to live a happy 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.

Retiring Right: Is Your Home Ready for Your Golden Years?

retirement (Photo credit: 401(K) 2013)

If you are planning on retiring soon, there is a lot to do in order to feel prepared. This includes tedious paperwork, as well as cleaning out your junk and getting your home ready. As you enter retirement, it is important to review all aspects of your life and prepare early so you can enjoy all your later years without stress. Whether you are looking for a new home, or improving your current home, make sure it is ready for your golden years. Ask yourself the following questions to decide if your home is ready.

Where is it?

As you get older, you may notice your driving skills diminish. If possible, make sure your home is close to public transit, or within walking distance of the places you go regularly, like the grocery store and pharmacy.

If you are considering moving when you retire, try going closer to family who can help you with transportation and keep you company. You should also look at areas with nice temperate climates so you don’t have to worry about health issues that arise from extreme temperatures.

How will you be spending your time?

When you retire, you may find you have a lot of free time on your hands. How do you want to spend it? Would you like to help take care of your grandkids, join a bowling team, or spend more time in the garden? Make sure your home and community are suited to how you’d like to spend your time. If you don’t know what you want to do yet, don’t stress. Try a few different hobbies and classes to see what kinds of things you enjoy.

How much space do you need?

If you plan on spending your retirement years travelling, you might want to consider downsizing to a smaller home base. If, however, you are planning on hosting visiting family members and friends, you may want a bigger home with a guest room. Shop some furniture sales for a comfy bed and stock up on linens so your visitors have an easy place to stay when they come to see you.

Is it accessible?

Is your home easy to get around in? Hopefully your health remains robust as you age, but your mobility may be limited. Even if you have no problems now, remember that it is easier to get injured, and harder to recover from injury when you are older. Have your bathroom checked out by a local plumber like CampbellCare Plumbing, Heating & Air, who can install grab bars near the toilet and bathtub to prevent falls. You could also consider installing ramps or moving to a one level home if you are concerned about climbing stairs.

Is it low maintenance?

Make sure that your home will be easy to maintain in your retirement. You want to spend your free time cultivating hobbies, exploring the world, and spending time with loved ones, not worrying about home repairs and yard maintenance. Will the yard require a lot of mowing? Does the driveway need to be cleared in the winter? Is the kitchen relatively easy to clean? Is the bathroom in good repair? Make the necessary repairs and changes now so you won’t have to worry about issues in your retirement.

Answer these questions to decide whether or not you are ready to retire. Maybe you want to move to a new home, or just spruce up the one you are in. Make the right choice for your health and lifestyle needs so your retirement years will be fulfilling and worry free.

Five Things Newly Retired People Should Consider

You have worked hard your entire life, and the time for your retirement is finally close at hand. Your retirement years should be a time of relaxation and enjoyment for you, but there are a few things you should be considering for this new phase of your life.

1. Staying Fit

Once you are no longer on your regular work schedule, you may find yourself packing on pounds. This can lead to numerous health problems, so it's important you find an activity that will keep you active and fit. This doesn’t always mean you have to become a gym junkie, just stay active. If you’re able, and you golf, walk instead of ride in a cart. If you enjoy riding your bike, plan out a route or two and get out and ride! Its common sense, but you’d be surprised at how many people who are recently retired, just sit around the home watching reruns of Mash or Golden Girls. You can't enjoy your retirement years if you are sick.

2. Budget Well

Whether you plan to use your retirement years to travel the world or stay close to home to be near your friends and family, you need to make sure your new retirement budget can support whatever lifestyle you have chosen. You will want to carefully plan for each thing you want to do, so you don't find your savings depleted after a single trip. Remember, everything tends to cost way more than you expect. 

3. Stay Involved

Many people struggle with retirement. They find it difficult to just enjoy fishing, golfing or gardening. You should try to stay as involved as possible with your community. Hobbies life golf are made a little easier to do for seniors. Senior discounts, senior leagues etc… there aren’t too many excuses that you can come up with for not getting out and getting involved. Most every city has community centers and senior centers that would welcome you with open arms, and there are always volunteer opportunities available that would allow you to stay busy while helping others. 

4. Final Arrangements

This is a wonderful gift to leave your children. Most funeral homes will work with you to lock in current prices, so you can completely plan and pay for your funeral services in advance. This isn’t always the most fun topic, but it should be addressed and once it is, retired life will be that much better knowing that when that day a loooooong time in the future comes, you and your family will be able to focus on other things. You will be able to ensure your children aren't left with this financial burden, and you will have the added benefit of knowing your final wishes will be honored.

5. Prepare Your Will

While it hopefully won't be needed for many years to come, this is the time to hire a competent attorney to write up your will and set up any trusts you may have in mind for your children or grandchildren. Zachary Law Group, PLC a lawyer in Gilbert AZ, has said that this can be a tricky process and having a good attorney to walk you through things is a good idea. You can relax knowing this is all taken care of, and your family can grieve properly when the time comes without having to worry about what to do with your estate, belongings etc..

These few tips should help you to enjoy your retirement with peace of mind. Now is the time for you to put work and worries behind you, and simply enjoy a time of rest and leisure that you so richly deserve.

Four Life Events You Should Seek Financial Consultation For

Finance (Photo credit: Tax Credits)

Financial consultation refers to seeking financial advice from a qualified financial planner. The work of a financial planner is to help you identify your financial position, your needs and goals, how close or far you are to your goals and how to attain your goals. These four aspects of financial planning are especially important to keep in mind when planning for the following life events:

Marriage

Tying the knot is a major, life-changing event in people’s lives. This is often largely due to the integration of the couples' bills, investments, expenditures and savings. Financial planning in marriage starts from before the wedding and should address every aspect of each partner's financial situation. These discussions can often lead to talk of prenuptial agreements. 

Prenuptials have become a necessity for some parties, owing to high divorce rates and an increase in attorneys specializing in alimony and divorce. A financial consultant can help determine if creating a prenuptial is the right move for a couple's financial future.

Buying a Home

Buying a home can be termed as a lifetime investment. Large investments like this can be either a really good thing or a really bad one, depending on both factors you can control and some you cannot. When looking to buy a home, one should seek advice about whether or not they are able to afford the purchase. 

The consultant will help you know whether you can buy the house at the current time, what type of house you can buy, or when the best time will be to buy a home. This planning applies to both daily live-in homes and vacation homes. Having a working knowledge of an area's home value trends and potential is necessary when making an investment of this magnitude. 

If you are unfamiliar with the area or housing market trends, seeking consultation from a financial expert with experience in real estate is one of the best ways to ensure the home you purchase will prove a solid investment.

Investment

People often wish to invest in certain projects in a bid to make more money and find financial comfort. This could be in form of buying property, investing in a business or buying shares. However, some investment options are definite time bombs that would land one in to big trouble. 

As such, it is best to consult a financial adviser when seeking to venture in to some sort of investment. This expert will advise you on whether to undertake the investment, how to proceed with it or whether to abandon it. They can also help you find the best investment avenue in the event that there are options.

Retirement

Retirement is a big deal, since it means that one will not be able to engage in normal employment opportunities. Anyone planning on retiring in the next decade or so should take action immediately to ensure there are sufficient funds put away for the event. Future retirees should seek a financial assistant who can consult with them and help them know how to still live comfortably after retirement. 

A financial adviser can help them make informed decisions about their expenditure and possible investment avenues. These advisers are able to calculate your saving potential within the context of possible inflation and price shifts, to plan for uncertain living costs with their clients' current earnings, investments, and assets.

Financial consultants help people avoid economic trouble by finding the best solution for them. When you find yourself facing a major life event or financial hurdle, it is often best to seek financial advice and assistance.

Informational Credit to WBLI

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.

Tips for Creating your Perfect Retirement Home on a Tight Budget

Retirement (Photo credit: Tax Credits)

Building a customized retirement home is a great way to ensure that every single aspect of the property is exactly how the owner would wish, but there are some important considerations to make. Here is a look at a few simple steps to avoid common mishaps, save money, and not cut corners.

Consider Splitting Lots

One of the biggest parts of creating the perfect retirement home is finding an ideal location. A sprawling lot next to a lake may seem ideal, but that is not always going to be in the budget. Those that are retiring can speak with family and friends about purchasing larger lots with one of the parties using their half as an investment property while the retirees begin building their home.

Carry Out Minimum Site Prep

Site prep tends to be one of those expenditures that very few think about before it is too late. While the initial cost for a near-ready site is going to be more expensive, site preparation can often cost tens of thousands of dollars. Some of the most common preparation costs include hauling in fill dirt, cutting down trees, grading, leveling, and breaking down rock. 

Find the Right Location

It is popular to build a retirement home in a beautiful, tropical location. When potential retirees begin to fantasize over the potential places to retire, they begin to lose a grip on smart location choice. Location can save a very significant amount of money in your site and in the cost of living after moving in.

Take for example Florida. Florida ranks consistently as one of the 5 most popular places to retire, especially for east coast seniors. But not all of Florida is made equal. According to CNN Money, living in Tampa, FL will save you 33% on housing costs compared to Miami, FL. In addition, health care, groceries and transportation cost around 6-7% less respectively in Tampa. Do some research and pick a smart location!

Use Stock Plans

A fully custom floor plan is typically going to be too expensive for those that are looking to build a retirement home on a budget. Instead, a much more affordable option is to choose a stock layout from a reputable builder or architect and then make the minor changes to the home in order to customize it how the residents would like it.

Explore Used Materials

Demolition sites may not sound like a place where one wants to collect materials, but they actually can provide some amazing and unique options without the overwhelming costs. Many of these sites offer their materials at little or no cost for those that are willing to haul and builders can find stressed woods, bricks, and a variety of non-finishing materials as well. 

Use Cheaper Material to Save Money

One of the best ways to save on building a house is to knowing the kinds of material that can go into a certain room. For example, you may be working with a contractor who suggests that you install a natural stone floor in your kitchen or bathroom. However, if you know good alternatives to natural stone, you will be empowered to make better decisions. For example Centura Tile, a supplier from Hamilton, Canada, offers ceramic tile at less than a dollar a tile compared to natural stone which can get over $50 per tile.

Create Allowances

The builder is going to make or break a project, and they could also create extra savings or go well over budget. While there are some safeguards against them gouging prices, that does not always mean that hiccups won’t happen. It is important to set aside allowances for overspending, notify the builder of that amount, and have them agree to it in writing.

Creating a retirement home from the ground up does not always mean exorbitant costs. Taking the time to understand each step and cutting expenses one at a time will mean a beautiful home that is on budget.

Retirement Questions: Four Things You Need to Know About Annuities

retirement (Photo credit: 401(K) 2013)

There are so many questions most of us have about retirement, and often, we just push them to the backs of our minds and wish we didn't have to answer them. However, it's important to get prepared as soon as possible. Many looking to prepare for retirement don't know much about annuities, or even know that they exist. This is an important option that should be looked into. Annuities are forms of investments that provide investors monthly payments during retirement. It is important to learn about annuities before purchasing an investment contract. Find out as much as you can about this type of investment. You can learn more by asking the right questions from annuity providers to avoid making bad decisions.

1. Are there fees involved with Annuities?

While annuities are designed to provide investors with ways of creating regular payment during their retirement years, investors have to pay certain amounts of money to purchase annuity contracts. The fees charged for this type of investment vary and are determined by the insurance companies. Investors may have to pay different types of fees including mortality and administrative fees among others. When investing in annuities, research the fees and charges of different annuity providers to make an informed decision.

2. What type of investment is this?

Different types of annuity contracts are available for purchase including fixed, variable, and equity-indexed annuities among others. Fixed annuities offer fixed interest rates on retirement and fixed payment during retirement. Variable annuities offer investors greater control of their investment options. The returns of variable annuities are tied to investment returns of the annuities. Finally, equity indexed annuities are tied to financial indices.

3. How do Annuities affect Investors’ Financial Rating?

Many people view annuities as guaranteed investments. While this is true, the investment is guaranteed by insurance firms themselves. This means that investors have to choose insurance companies with good financial ratings.

Various tools can help investors compare insurance companies. Examples of such tools include financial ratings provided by reputable financial rating entities. These entities provide data on how companies are performing financially and whether investors should be worried about their retirement investments.

4. What Happens to your Money when you die?

Some annuities come with death benefits while others do not provide any form of death benefit for beneficiaries of deceased investors. People should find out if their annuity contracts obligate their insurance companies to pay their beneficiaries for a certain amount of time after they die.

Some annuity investments provide lump sum payments to beneficiaries upon the death of an investor. If an investor’s annuity contract does not have this provision, the insurance company will keep all the money paid in the investment if the investor died before using the money. This can have a significant impact on the financial status of the beneficiaries. Annuities become very important as you prepare to enter retirement. If you set up a fixed annuity now, you would be able to receive the benefits during your retirement period. Fixed annuities offer stability, guaranteed interest, and a set amount of money each year that those who get them can rely upon. It can be difficult to know what exactly is the best place to start with planning for retirement, and even then, it's tough to know what choices to make. Educating yourself more thoroughly on your options is a great place to start, and you should certainly look for answers to all your questions regarding annuities and retirement. Once you're satisfied you at least have an idea what your ultimate goals are, you should likely talk with a professional that can help you sort out how best to treat your personal finances now to be as well off during your retirement as possible. 

Information credit to PNW Annuities Services Seattle.

Where do the Over 50's Spend their Money?

The over 50's SWANS (Stopped Working and Now Spending) is one of the most cash rich demographics even in these times of recession and cut backs. Many of these over 50's have already purchased their houses and paid off their mortgages so the money that us younger generation are spending on rents and our own mortgages are free for their own use. 60% of over 50's receive non state pensions and more than 2/3rds of over 50's have said that the recession has made little to no change to their spending habits. So what do they spend their cash on?

Entertainment

Now that they've stopped working and have started spending their savings following their children leaving the nest, the over 50's tend to start to enjoy themselves again. Whether it be going to the theatre, out for meals and down to the pub for drinks with friends they have no work or children commitments left so they can enjoy themselves and their money.

Holidays

Many over 50's have children and grandchildren spread around the world and with them now being the cash rich demographic with time to spare on their hands it is they, rather than the other way around of olden days, that does the travelling to see family members. On top of this, with their lack of commitments and large cash reserves they tend to take two or three holidays a year, often heading to warm and exotic places that they have wanted to visit but not had the chance until now.

Gambling

What is life without a little risk? the over 50's generation are asking as they enjoy a flutter on the nags and occasionally the football matches at the weekend, with large accumulators with many selections and big payouts from small stakes favoured by the older generation. On top of this they enjoy the old favourites too such as playing live bingo at the local hall, while the more technically savvy of the over 50's who would have invested in computers or laptops to keep in touch with family on Skype and by email are tempting to play online bingo on sites like this one in an attempt to increase their cash surpluses too.

Renovations

Having lived in their own purchased and now mortgage free homes for many years, many of the over 50's are now favouring renovating their homes to give them a fresh look and a new lease of life. Whether it be internal, such as new furniture, wallpaper or coats of paint, or external including redoing the garden or the brickwork of the house, the over 50's and their cash reserves are always looking to keep their residence fresh and up to date.

Hobbies

This is a big one for the SWANS as they are no longer working they have plenty of free time to do as they wish to do so. Whether it is growing their own fruits and vegetables in their allotments or travelling around the country to following their favourite football, rugby or cricket teams the over 50's have both the time and money to do this with a comfortable ease.

Clothes, Jewellery, Scents and Gifts

The over 50's generation like to look good and, as such, with the amount of cash readily available to them they enjoy purchasing clothes and jewellery that will make them both look and feel good about themselves. To top this off they spend a large amount of money on ensuring that they smell the best too so the top of the range perfumes and men's fragrances are on their lists too. It's not all about themselves either as they enjoy selflessly purchasing gifts for friends and family on birthdays, at Christmas and even randomly too.

Looking Ahead To Retirement - How To Plan Now For The Future

retirement (Photo credit: 401(K) 2013)

It may seem far off in the future, but each day that you work means that you are one day closer to retirement. And while this can seem like a golden age for some people, retiring without the adequate funds can be a detriment to those who aren’t prepared. You don’t want to retire only to discover that you don’t have enough money to live the lifestyle you wanted. This could mean that you end up living maybe even worse off than when you were working. This is probably the biggest problem facing people today as they consider when to retire.

In order to make sure that you are prepared, it’s never too early to start planning for retirement. Here are some tips for how to plan now for the future. 

Have A Budget

Even if you have a job where you make six-figures, that doesn’t mean you need to have a six-figure spending habit. No matter the job or income, be sure that you have a budget that limits how much you spend and save each month. Obviously, the latter should be weighed more heavily than the spending. By not having a budget, many people just try and play the guessing game, which usually results in overspending. But by having a drawn out budget, you can make for more appropriate estimations of how much you need to save in order to have the retirement you want. If you think you need professional help, Air Force Federal Credit Union is a great place to go and get financial advice. 

Pay Off Debt

If you think that once you hit retirement that all of your debts will be forgiven, you are mistaken. And what’s worse is that debts can be harder to pay, once you don’t have an income from working. Whether it’s student loans, house payments, or car loans, do your best to pay off those debts as quickly as possible. Not only will paying off debts get them out of the way, but they’ll also improve that credit score. And an improved credit score may make it easier when looking to buy that oceanfront property you’ve always been dreaming of. Having no debt is also a huge stress relief, and obviously frees up more of the money you worked hard to save to be spent on the things that you want, instead of paying off interest on loans taken out years ago. 

Invest

Obviously there is no place where you can guarantee that your investments will be rewarding in retirement, but there are options that put the odds in your favor. Whether it’s real estate, stocks, commodities or anything else that you feel comfortable, investing is a great way to make residual income in retirement. But rather than waiting until retirement to get involved in investing, start now so you can familiarize yourself with how it works. This will make the ups and downs of investing less volatile, because you’ll still have income from your job. 

Stay On Track

It’s okay to take a family vacation once a year, buy a new pair of shoes occasionally, or do other little things out of the ordinary. However, for the most part, it is important to remember your goals for retirement and to stay on track for those aspirations. Any slight slip-up can lead to having to backtrack and change even more of your plans. Instead, it’s much easier to just have it all lined up from the beginning, and then stay on that course until you can say sayonara to the workplace.

For Those 50 and Older Starting a Business is the Only Way to Have a Successfull Retirement.

If you are in your pre-retirement years you have many things to worry about. The constant barrage of headlines telling us how bad things will be for those approaching retirement doesn't help much but it has made many reconsider their career choices.

Take your pick, healthcare, Social Security, or just not enough saved; this isn't your fathers retirement. It's true today's retirees are having a harder time making ends meet. We could only wish that those were the only problems. We are also facing taking care of older parents and college age children who can't find jobs. Retirement is being postponed. Never before has so much responsibility been placed on a generation.

The Need is Real

This perfect storm of problems has awoken something that has never been seen before. Today's elder generation has bloomed into a generation of entrepreneurs. This age group has risen to the challenge of not waiting for the government or anyone else to help them, they have stepped up and taken control of their financial lives. 

• Top 7 Mistakes Made by First-Time Business Owners

You won't find this generation playing shuffle board or canasta in the clubhouse. You will find them going to work. Many have realized from the start that a successful retirement means still earning an income. They have decided to not let the increased expense of living ruin retirement. This trend is something completely new for the United States. Sitting at home waiting to collect that Social Security check is not part of their futures.

The statistics are incredible. Americans, aged 65 and older, which number 8 million people, 40% of them own a small business. Less than 10% of these businesses are 4 years old. More than 10% have just started a new business. This is according to data released by the Bureau of Labor Statistics. These figures apply to those who are still in the workforce not those who are not going to work again. 

Entrepreneurs with Experience

The current retirement generation are Baby Boomers who grew up in the 50's and 60's. They have experienced and lived with parents from the greatest generation. They were underestimated and criticized that they were living off the hard work of the previous generation. The proof is there that they are seeding the rising economy with there small business start ups.

What makes these people so able to be entrepreneurs. In comparison to their younger business start-up counterparts, older entrepreneurs have the advantage. They have more capital to invest in running a new business. They also have more knowledge of their particular industry. They also have one thing that the younger businessman doesn't have, motivation. Of course the younger man has a passion but the older entrepreneurs are highly motivated. They have been in the workforce for so many years they are in a comfortable position and their fear of failure is very low compared to a new entrepreneur.

retirement (Photo credit: 401(K) 2013)

It's not all rosy for the older business man. Over the years they may not have been in a management position. They may not have knowledge of advertising, product procurement, office operation, and even social marketing. I thought about how the older entrepreneurs could come up to speed. It's not like you need to reinvent the wheel. Running a small business is basically the same form and function independent of the product or service the business produces. 

Many business schools teach many ways to overcome the problems of starting a new business. One that I particularly like is taking on a partner. The real success of the company depends on the skills and hard work of the principles. If you think a partner will help why not get someone who has the skills and education to contribute but also has the energy and stamina to contribute. 

If you are nervous about starting a business, remember Ray Kroc started Mcdonalds at the age of 52. If he can be successful so can you. He started with one restaurant and the rest is history.

Investing in Property for Your Retirement

With the cost of living increasing, and investments having suffered extensively in the economic downturn, retirement can seem a daunting prospect. Wanting to get out of full time employment can mean having to turn to part time jobs in low paying positions, just to maintain a standard of living. Fortunately, by using your assets wisely, and investing in the property sector, you can retire and still make an income while keeping your own hours.

Release the Equity in Your Home – When children have flown the nest, the need for large houses with lots of rooms diminishes considerably. Downsizing is often confused with ‘settling for less’ in order to make ends meet, but in reality downsizing gains you far more than you lose. Take the time to find a property you really love in an area that makes you comfortable and happy. A smaller space with fewer rooms means less cleaning, less upkeep, and lower bills. Downsizing can really save money but more importantly, downsizing to a smaller property means you can free up the equity in your home. Start the process well before your intended retirement date and you are in the perfect position to wait out the market for a buyer who can offer you the best possible price.

Invest in a Second Property – Investing in property in a market where rentals are at a premium due to the need for large deposits that many first time buyers and young professionals do not have means you are able to capitalise on your money. Without diminishing your investment or being subject to financial attrition in the same way an annuity might, you can secure a monthly income that fluctuates over the years in line with the cost of living and inflation. Unlike pensions that pay out at a set yearly rate, losing value as years pass, a property investment stays in line with the market. The rent from a small flat is a monthly stipend that can easily match a part time wage, with a fraction of the work.

Let the Professionals Work for You – If you don’t fancy the upkeep and landlord duties involved in property management, there are plenty of places to turn for advice or simply to hand over the responsibilities in return for a small percentage of the monthly rental. Companies like Rylands Associates are experts in property management and can take care of everything for you if you decide to take a late life tour of the world, or simply choose to relax and enjoy the comforts of home.

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.

The 4 Ways Health Care Has Changed For Your Retirement Fund

Most retirees depend upon Medicare for health care. The Affordable Care Act made changes that continue to go into effect throughout the rest of the first quarter of the century. Your retirment fund should be on the forefront of your mind and every aspect should be accounted for. For many senior citizens the changes affect how much of their retirement fund is allocated for medical care. Although there are many changes, four stand out in particular.

Preventative Services

Medicare insurance companies have to provide some preventative checkup services for free that required a co-pay in the past. Mammograms and colonoscopies are two of the screenings now completely covered. A yearly check-up is now also included as part of the free service. However, to pay for the new services many insurance companies are cutting other services that they were not required to pay for but covered as part of their marketing. For example, many Medicare enrollees no longer have free access to health clubs through their policy. The key here is to remember that changes have been made and to fully research what you are covered for exactly. 

Pharmaceutical Drugs

Greater access to pharmaceutical drugs at a discounted price is part of the ACA. The “doughnut hole” is being discarded, which can save many seniors several thousand dollars a year. Seniors can continue to use an ongoing drug treatment program without fear of running out of money halfway through. A greater percentage of coverage has gone into effect for both brand name and generic drugs. 

Medicare Advantage

Those who are on Medicare Advantage may feel that they have lost the advantage the program provided. Known for its low cost care, the program is suffering under the ACA. Many insurance companies are raising the cost for the program, and the services it provides. It has become much more competitive with the standard Medicare Part B supplement program. Many seniors are finding it financially wise to meet with a Medicare insurance agent to compare plans and finding the best option for them. 

Dental Care

The greatest change is one that did not happen in spite of the desires of many seniors. The ACA did not provide any additional coverage for dental care. Medicare does not cover any treatment for the general health of the teeth, leaving seniors to handle expensive bills on their own. Fortunately for them places such as Ivory Dental Centre exist to provide excellent care for reasonable fees. Many dental practices also extend credit to help patients with extensive bills.



Managing retirement and health care remains a juggling act. The changes to Medicare make part of the task easier, but care is needed to understand all the options. Make sure you contact your insurance representative and ask if the changes made will affect you and make sure you fully understand everything that is going on with your funds. Preparation is going to be needed as you enter retirement, make sure nothing goes unnoticed.

The Pros and Cons of Oversaving for Retirement

Saving is generally a good thing, especially if you’re someone who’s gunning for a comfortable retirement. With the way the economy is going, it seems more and more necessary to put aside a set amount as a huge nest egg is going to be something you’ll be needing come retirement time. So, you’ve been stopping yourself from using your credit card, denying yourself certain luxuries, and generally been living a frugal life with a set focus on the future.

However, there is such a thing as oversaving. It means exactly what it seems to mean; living an excessively thrifty life. Many people believe that the amount of money a person saves is just the right amount, so what exactly warrants the term “overspending”? What specific amount of money exceeds the typical amount of conventional or normal saving?

Oversaving is basically when you scrimp so much that your basic lifestyle becomes affected. It depends on how much money you actually make. If the majority of the money you take home (minus the daily expenses and payment of bills and credit card debts, if any) goes into your savings and none go into any leisurely purpose—that may be oversaving. Anything that’s done in excess is bad, even a good thing like saving, and oversaving has certain pros and cons.

Pro: You will have a sizeable retirement fund.

Whether you invest your money in retirement plans or just hide it under your mattress, oversaving makes sure that when you get old, you’ll be well-taken care of, at least financially. You can conceivably live a more comfortable life in your twilight years if you oversave.

Con: You deny yourself today.

By choosing not to spend the majority of the money you make, you basically deny yourself of certain emotional benefits that come with enjoying the fruits of your labor. Oversaving usually means you opt not to take vacations, or buy yourself nice clothes or keep yourself from spending on material things that you want simply because they are things you think you don’t need. However, these things are crucial to your emotional and mental health. Indulging a bit from time to time relieves people of stress, and in today’s world, that’s definitely a need.

Pro: Learning to live with less.

By if you’re used to the idea of not spending, you get to discipline yourself in terms of knowing which things are essential and which aren’t. This means you’re less susceptible to marketing ploys, less dependent on status symbols, and more content with what you have. Your self-definition may rest on more substantial things, which is good.

Con: Scrimping may lead to higher medical costs.

The basic act of denying yourself certain higher-end items could lead to your retirement fund being blown away on medical expenses anyways, preventing you from enjoying the savings you worked so hard to accumulate.

For example, if you choose to low quality mattress to sleep in every night, instead of upgrading to something that has more effective back support, then all those years of sleeping uncomfortably may lead to complications of the back. Or purchasing a cheaper automobile that has less safety features than a newer model might be something you’d end up regretting, for obvious reasons.

Oversaving has, like other things, pros—and it, too, has cons. Both sides of the argument seem equally compelling, but at the end of the day, it’s about you enjoying something you worked hard for. Either it’s going to town on your credit card or resting comfortably knowing your future is financially secure, it’s always better to do what makes you the happiest.

This article is contributed by Money Hero, Hong Kong’s leading financial comparison website. Users can compare financial products, like credit cards side by side. This lets them compare financial products which enables them to make better financial decisions.

How to Grow Your Real Estate Portfolio After 50

Folks over the age of 50 have a lot of options as it relates to retirement savings. After the age of 50, you are allowed to contribute more to a 401k or IRA account. Investing in real estate is another option that will help those looking to retire accelerate the growth of their overall portfolio. How can you use real estate properly to help you save for retirement and live comfortably after you retire?

Understand How a Property Generates Revenue

The first thing that you need to understand is how a property generates revenue. The first way that a property can generate revenue is to provide a monthly rent check that will go straight into your retirement account.

Another way for a property to generate revenue is to be flipped soon after it is purchased. Flipping refers to the process of buying a property at below market value, fixing it up and selling it for a profit as soon as possible.

Which Properties Should You Rent?

Properties in college towns, areas where large companies are present and areas where home ownership is low are all ideal places to buy properties with the intent to rent them. This is because college students, executives and those who don't have the resources to buy a home are always on the lookout for reasonably priced housing.

Before you buy a properties with the intent to rent them, make sure that you do pre purchase inspections. Building inspections prior to purchase allow you to ensure that any property that you rent is going to be up to code. If a tenant is not provided with a clean and safe place to live, that tenant may not have to pay rent until all issues are corrected.

Which Properties Should You Flip?

Foreclosed properties are prime targets to be flipped. However, you should make sure that you understand the potential pitfalls of buying a foreclosed property. First, you may not be able to do pre purchase inspections. This is because you buy the property as is. Second, you need to have the money upfront before you buy a foreclosed property to put inside of a retirement account. If you don't have sufficient funds to buy a home, find an investor who will be able to help you.

Investment Income Is Tax-Deferred

Feel free to buy as many properties as you would like inside of your retirement account. This is because the money in your account is not taxed until it is taken out of the account. In addition, you don't have to worry about paying capital gains taxes on your properties.

For example, if you sell a home to someone else, you don't have to pay capital gains taxes on the profit that you make from selling the house. Otherwise, you could be charged as much as 15 percent or more in taxes each time you realized any type of capital gain on your investment. 

Enjoy Compounding Returns

Rental income and profits realized from the sale of property all flow to your retirement account as soon as your receive them. The money is then reinvested wherever you want it to be reinvested. This allows you to use a rent check to buy shares in a mutual fund or investment that will offer compounding returns over time.

Anyone looking to buy real estate should understand how real estate generates income and how to take advantage of that money. Remember, building inspections should be done on any property that you buy whenever possible. Doing so allows you to avoid buying properties that will eat away at your profits because you have to spend money on repairs and maintenance.

The Importance of Personal Finance Budgeting

Budget (Photo credit: Tax Credits)

The principles of a sound wealth building system all require the foundation built on personal finance fixus. Solid and consistent budgeting is one of the laws of personal finance that you break at your own expense. Finance is often made more complex than it needs to be, and proper personal finance budgeting to build wealth need not be stressful. Simply by following a few simple basic rules of personal finance your budgeting will not only get you back on financial track but begin the process of wealth creation that we all deserve The cost of not following your money, and knowing how your money flows in and out of your possession is dear, and a very common mistake. But, what are the principles of successful budgeting.

The first principle of personal finance budgeting that comes before any dreaded calculations or budget sheet assessment is to remove all the emotion from your finances. This is the hardest and most important of the personal finance budgeting secrets to be revealed. If you find yourself wracked with debt anxiety, overwhelmed by countless financial obligations, or just simply hate counting bills and income, you are not alone. Removing the emotion from your personal finance budgeting will be a work in progress, and you should always remain on guard for its returning. But it is an essential and important to take effort to remove any emotion from this process. You are simply counting numbers,, to paint a map of where you are now, and to measure progress towards your wealth destination. Personal financial budget is a key component of building wealth. It allows you to quickly and stress free, debt repayment, college, regularly, so you can enjoy an early retirement and residential investment can Are you adequately budget, you can easily come and how much you can afford to spend money to know exactly how to go about your life, if you can.

The next step to when personal finance budgeting will be to compile a list of both your assets and your liabilities. With this step in the budgeting process we are trying to evaluate your net worth. With this information you can now make wiser decisions and streamline your finances, all with the help of a little personal finance budgeting each month. You simply need to make a list of what you own, assign each item a number as to what it could be sold for, or its current worth, and subtract from this list what you owe. For example, if you own a boat that can be sold for $1500 and you still owe $750 you would be left with a value of $750 that could be considered a part of your net worth. By determining these numbers in personal finance budgeting we are able to a better idea in the broad sense of what you are worth financially. Boring personal finance budget can guess, most people do not like the numbers work, but it's really simple. I have a budget, sometimes every other week, maybe 10 minutes a week, I had the hard way.

Following the determination of your net worth, our next budgeting step is to determine what your dynamic finances are. This sounds more complicated than it is, I am only asking that you make a list of what your monthly income sources are and how much you bring in each month from these income streams. Your budget provides you with a clear understanding of where your money is and how it is flowing. We then need to compile a list of your monthly expenses, what they are and how much the subtract from your monthly income. Proper budgeting your personal finances means leaving no expense or item off the list, no matter how small, account for everything. This budgeting task reveals to us the speed that you are travelling with your finances, either to financial ruin or towards your wealth building destination.