Showing posts with label Retirement. Show all posts
Showing posts with label Retirement. Show all posts

Friday, August 12, 2016

How to Increase the Value of Your Pension





It has become increasingly important for everyone to put a sensible pension strategy into place - why? 

Well first of all we are living longer and therefore our pension has to last longer, second the price of living has gone up dramatically in recent years and finally, the majority of people would like to retire early from their career, giving them more quality time in their senior years

With interest rates being so low, for such a long time the savvy pension saver has been looking for new ways to increase the value of their pension. So how can this be done?


Investment Diversification


The answer for many people is by diversification. Putting money into a number of pots is one way of making that capital work a little, or a lot, harder. 




Using a percentage of your pension capital, let's use 20% as an example and investing it in the financial markets, while leaving the remaining 80% in an interest accruing account, pension scheme or ISA can be a great way to maintain a high level security and at the same time apply some speculation into the equation.


A Trusted Broker


Using Hantec Markets to invest in markets such as Forex or tracking index funds can be a really effective way of increasing the value of your pension. 

This can be done over a long period of time or a shorter period of time and the best part is that the potential profits can far outweigh those you will get from any other type of financial investment. 

Using an online trading platform you are able to access a wide range of financial markets and stay in control of your capital. You can also take advantage of professional help and advice in order to maximise your potential for success.

Forex Fast Track


Investing in the foreign currency markets (Forex) is a high risk/high return strategy. If you have an in depth understanding of trading platforms, global politics and economics, trading Forex can be a highly effective way to make large profits in a short amount of time. 

Forex is traded 24 hours a day and trillions of dollars worth of currency changes hands in any such time period. Currency rates can move up and down quickly meaning the potential for profit is great and for those who become good at it virtually unlimited.


Such gains come with risk, however and if you are inexperienced, then you can also suffer large losses.

Tracking Index Funds


Tracking index funds work by, as the name would suggest, tracking financial indexes such as the FTSE 100. 

They are a low cost way of getting exposure to a wide range of shares and are relatively low risk, especially if entered into as a long-term investment. 

Using tracking index funds means you avoid having to choose specific shares and the associated costs, in return investors can expect a modest return on their pension investment year on year.

Increasing the value of your pension provision effectively is a balancing act, which if got right can mean a comfortable and happy retirement.



Friday, April 29, 2016

A Guide for Wealth Planning in Retirement

Wealth planning in other word means succession planning. It is a way of structuring your wealth today and preserving it for your family till your next generation. 

With the high market standard and it is important that you build an empire for your children to cherish the beauty of it.

Planning is Key


Planning includes preserving your wealth, optimising your tax, estate planning, your property planning which relates to the capital all over the world. 

There are numerous ways that your possessions would be in trouble if not planned well. The affects of the same will not only be faced by you but by the next generation as well. It is believed that wealth is mostly generated by one generation and the fruits of the same are cherished by the next three or more generation. 

If it is not planned well or is planned incomplete may get jeopardized with the passing time and year. 

Protect Your Family


You need to protect your succession, the potential threat to your assets would be a dispute by a family member and the assets get divided among the member as a result the property owner’s increase with the less assets available with individual. 

The other threat would be death of the family member or the property owner and further division of the valuable assets to the member of the family & close relatives. 

It is advisable that all the wealthy family's should have a proper plan for their assets and secure the capital and family for being threaten with the unwanted issues.

How it works?


  1. A smart budgeting of the assets or a property the individual holds.
  2. Defining the goal and implementing the strategy to secure.
  3. Referring and analysing the different plans and a way to take necessary action for saving. 
  4. Identifying the plan and strategically making the investment of the current property to multiply the same with due course of time. 

In the above cases a professional advice for a wealth management will be like a saviour and expert like David Barcomb who has been in the field for 20+ years will provide a right solution and a guide to wealth management. 



The subject is complex in its way but he being the subject matter expert advice that are bespoke to you. The unclear picture about finance and property will be structured with an accurate wealth planning, with an additional gain in the existing asset.

Not many people believe in saving and securing the wealth. The wealth management plans grabs attention with the high return on investment as a result it attract number of wealthy family to be a part of it. 

Wednesday, April 6, 2016

How to Stay Financially Stable After Retirement

Few people are able to enjoy retirement when their finances are chaotic. Many people’s lives are controlled by the amount of money they spend and save. 

In most cases, if the finances are chaotic, then so is the rest of life. There are several effective ways to remain financially stable after you retire.

Choose and Follow Through with a Retirement Plan


It is not enough to plan a budget – you actually have to follow through with it. The planning part can be just as simple as the retiring if you do your research correctly.


There are different types of retirement plans available, so you cannot create any one you want. A business plan is not the same as an individual plan. A retirement plan usually comes with a bank account that restricts the ways you can withdraw and deposit funds.

As the retiree, you are allowed to customize a plan based on individual needs. Decide how often you want to make withdrawals and the average amounts. The better you plan, the more rewards you will receive after retirement. 

Invest in an Affordable Retirement Home


When some people retire, they think that they have all the money in the world. They spend too much of their money too quickly. They plan to buy clothes, cars and homes before the money appears in the account.

Before and during your retirement, you have to be diligent with your spending. Look for retirement homes available in the price ranges that you can afford and not in ranges that you want. 

It is better to invest in a home that is lower than your expectations than invest in one that you cannot handle later. However, there are so many benefits that come with spending your senior years in Antioch, or in any retirement home. If you find the right home staying somewhere like this can really help you save money. 

Create and Follow Through with a Budget


A budget plan is worthless if you never follow through with it. Only create a budget that is realistic and can be carried out effectively. Focus on the retirement plan only during the years when you are still working. Then follow through with a budget that goes into effect after you retire.

A budget is particularly important in the beginning years of retirement. During the first years, retirees tend to underestimate their benefits and spend too much in a short period of time.

Preparing for life after work is not optional. You must prepare for the positive benefits and difficult challenges that await you after retirement. Smart planning for retirement includes maintaining a budget and keeping your finances under control. With the right plan, anyone should prosper after his or her working days are over.

Thursday, October 8, 2015

Retirement Rewards: Surprising Ideas for Filling Your Years Off

Choosing a specific retirement path can be difficult because there are many choices and factors that can go into your decision. For example, retirees must consider their personal goals, preferred location, and medical needs. 

You may also have to decide how important your social life is, and whether you want to rent or own your own place. However, there are many surprising ideas for retirement you may not have considered yet.


Travel and Teach


Most seniors don’t realize it, but there are endless opportunities for seniors to teach English abroad. The basic requirements for ESL, or English as a Second Language, teachers are just a bachelor’s degree and a passion for helping other’s learn. 





Teaching English overseas is an amazing opportunity to get paid to travel and help students of all ages learn English. English teachers are in high demand in many areas of the world, such as Asia, South America, and the Middle East. 

Seniors could spend a few years living and working in different foreign countries where the salary is high, and the cost of living is low.


Traveling in an RV



According to the AARP, living in an RV and traveling around the country is an exciting, yet comfortable way to explore the world and enjoy life. RVs offer different levels of comfort based on their price tag, but all provide the essential basics. 

Traveling in an RV is a chance for seniors to visit popular attractions, places they have always dreamed of, and especially friends and family. As an added benefit, people who live in their RV may not be required to pay local and state taxes. 

However, the AARP recommends that seniors carefully prepare for the RV life through selecting the appropriate RV and insurance. In addition, seniors should plan their trips and destinations to avoid getting lost or help up in places you don’t want to be. 


Making Another Round


Maybe retiring just isn’t what you had in mind and you still have a lot of exciting plans for a business or startup. Don’t be afraid of branching out and starting your own work. Maybe your crafts could turn into a fashion design, or your passion for gardening gets you into the local farmer’s market. 

Even if it’s small, you can use the productivity you still have to hone your skills and earn a little extra. Make use of the savings you never had to use and venture out into your own world of business. You may be surprised what you discover about yourself in the process. 


Retirement Homes


A retirement living home like Sunshine Retirement Living is a perfect solution for seniors who want to maintain independent living, but also an active social life. Retirement homes offer private rooms, but community spaces, such as recreational or community rooms. Retirement living homes offer excellent safety and security. 

Other benefits include zero home maintenance, transportation services, and the opportunity to downsize and live simply. More importantly, there are assisted living services for those with daily living needs. This could include help with basic tasks, or special care for those with memory or functioning difficulties. 

In the end, retirement living homes offer vital social opportunities that are vital for senior well-being.




Seniors should look forward to retirement because there are multitudes of interesting opportunities awaiting them, such as teaching abroad, traveling in an RV, or comfortably living among friends in a retirement living home. 

Don’t feel like you have to be trapped in one place once your career is over. Use these ideas to continue doing what you love.

Saturday, May 30, 2015

Looking Forward: Investments, Assets and Your Retirement


Planning for retirement is not something that should be put off to the last minute or after the company farewell party. There are many things to do shortly before you retire and some things you should start as soon as you enter the work force. It is not original, but it is never too early to start planning for your future.

Beginning At an Early Age


If you are just entering the work force and not making a whole lot of money, it is still not too early to get into the practice of savings. Decide to put five percent of your paycheck into savings. 

As your income grows, continue to save. Try not to touch it. This is the first step toward reaching the goal of having a comfortable and enjoyable retirement.

Take Advantage of Any Program Your Employer May Offer


If the company you work for offers a 401K plan, participate in it. Contribute as much as possible to the plan. Usually, there is an option of making taxable or tax deferred contributions. 

Tax deferred may give you a little more spending money when you first begin investing, but it is not going to be a big help regarding income taxes when you retire.

Open an IRA


The individual retirement account allows you to put a portion of your income in an account that will draw interest. The contributions are tax deferred. 
There is also the possibility of opening a Roth IRA. In this plan, the money you contribute is taxable. However, the money you earn will be tax-free when you withdraw it. 

Regardless of which plan you open, do not go to the nearest bank and take whatever fixed rate is being offered. Talk to a financial adviser or stockbroker and determine how the money can be invested to generate the best yield with a reasonable degree of security.

Looking Forward: Investments, Assets and Your Retirement


Planning for retirement is not something that should be put off to the last minute or after the company farewell party. 

There are many things to do shortly before you retire and some things you should start as soon as you enter the work force. It is not original, but it is never too early to start planning for your future.

Beginning At an Early Age


If you are just entering the work force and not making a whole lot of money, it is still not too early to get into the practice of savings. Decide to put five percent of your paycheck into savings. 

As your income grows, continue to save. Try not to touch it. This is the first step toward reaching the goal of having a comfortable and enjoyable retirement.

Take Advantage of Any Program Your Employer May Offer


If the company you work for offers a 401K plan, participate in it. Contribute as much as possible to the plan. Usually, there is an option of making taxable or tax deferred contributions. 

Tax deferred may give you a little more spending money when you first begin investing, but it is not going to be a big help regarding income taxes when you retire.

Open an IRA


The individual retirement account allows you to put a portion of your income in an account that will draw interest. The contributions are tax deferred. There is also the possibility of opening a Roth IRA. 

In this plan, the money you contribute is taxable. However, the money you earn will be tax-free when you withdraw it. Regardless of which plan you open, do not go to the nearest bank and take whatever fixed rate is being offered. 

Talk to a financial adviser or stockbroker and determine how the money can be invested to generate the best yield with a reasonable degree of security.

Buy Life Insurance


Term life insurance starts out cheap. However, the premium increases over time. If you outlive the term, you or survivors get nothing. If it was an employer's policy, and you change jobs, there will be no refund. 

You can buy a 20-year paid-up whole-life policy for a higher, but fixed, monthly premium. If married, purchase a policy for yourself and your spouse. If there is an early death, the benefits are tax-free and can cover funeral expenses and help with the mortgage payments.

Be Diligent


Check your investments at least every month. Talk to your financial adviser or broker to get their take on where the economy is heading. Do not invest all your funds in one stock or company. 
At any given time, some of your investments could be threatened by a change in the financial markets. It may be necessary to make some adjustments.

Simply stated, to plan for your future you have to invest money you are earning today. Social Security in some form will be around 40 years henceforth and probably longer. 
However, it will only cover a fraction of your expenses. Do not buy over your income. That BMW in the showroom looks great, but the Chevrolet will get you to work. 

Think about the things for which you are planning. Is it your own retirement? Are you saving for your children’s college education? Do you plan to move to an exotic island before you are 50? 
Prioritize and be reasonable in what you plan to do. Watch your investments. Communicate with your financial adviser on options that may develop. Do not depend on a company retirement plan. 

You may have several different jobs during your working career, and the retirement plan may not follow you. If a company pension comes your way, you are ahead of the game. However, if it disappears, you can still be in good financial shape if you start early in planning for the future.

Term life insurance starts out cheap. The premium increases over time. If you outlive the term, you or survivors get nothing. If it was an employer's policy, and you change jobs, there will be no refund. 

You can buy a 20-year paid-up whole-life policy for a higher, but fixed, monthly premium. If married, purchase a policy for yourself and your spouse. If there is an early death, the benefits are tax-free and can cover funeral expenses and help with the mortgage payments.

Be Diligent


Check your investments at least every month. Talk to your financial adviser or broker to get their take on where the economy is heading. 

At any given time, some of your investments could be threatened by a change in the financial markets. It may be necessary to make some adjustments.

Simply stated, to plan for your future you have to invest money you are earning today. A specialist from Pinnacle Financial Partners recommends taking a look at your financial assets as a whole to determine what they can offer for your future plans. 

Social Security in some form will be around 40 years henceforth and probably longer, however, it will only cover a fraction of your expenses.

Think about the things for which you are planning. Is it your own retirement? Are you saving for your children’s college education? Do you plan to move to an exotic island before you are 50? Prioritize and be reasonable in what you plan to do. 

Watch your investments. Communicate with your financial adviser on options that may develop. Do not depend on a company retirement plan. You may have several different jobs during your working career, and the retirement plan may not follow you. 

If a company pension comes your way, you are ahead of the game. However, if it disappears, you can still be in good financial shape if you start early in planning for the future.

Monday, March 30, 2015

10 Tips to Get Mentally Ready to Retire

When Marty Stroud retired at 65, his retirement savings were not his biggest issue. In fact, he had enough to live comfortably. Marty’s problem was finding a new routine after having spent decades in an all-consuming 9-to-5 job. "I lost purpose. Gardening may have saved my life”, he recalls of his first months of retirement.

Stroud is not alone. According to an Ameriprise Financial survey of retired baby boomers, some common concerns among retirees include:

  • Missing out on daily social interaction with colleagues (37%)
  • Getting used to new routines (32%)
  • Finding ways to give meaning and purpose to their days (22%)


Many retirees know that the change from a full-time job to a life with less structure and purpose can be challenging, especially emotionally.


10 TIPS TO GET MENTALLY READY TO RETIRE


1. CELEBRATE WITH A PARTY


You’ve celebrated every other milestone in your life – new home, new baby, birthdays, weddings and so on. Why not celebrate the milestone called "retirement"? It’s an achievement, especially if you’ve saved enough to live comfortably. You’ve earned it! Get great retirement party ideas on Pinterest.


2. REALIZE YOU DON’T HAVE TO BE ANYWHERE


Gone are the days of waking up early, sitting in traffic and drinking bad cafeteria coffee. You’re now free to lounge in your pajamas and take your time with errands. You can finally focus on doing what you love, when you want to. 

Just remember that at some point, you may start to miss the structure, purpose and community a job provides. Our advice? Create a schedule sooner than later and try to get out of the house as much as possible.


3. ENJOY AGING GRACEFULLY


Do you want to be 18 again? Probably not. With age comes wisdom, self-realization and satisfaction. Enjoy your age at every age. Check out the Advanced Style blog for inspiration and proof "from the wise and silver-haired set that personal style advances with age".


4. EXERCISE AND STAY ACTIVE



Look forward to exercising – now you have the time! You have the flexibility to join classes and activities in the middle of the day when most people are at work. If you prefer walking, hiking or biking, get a friend to join you. A workout partner will help you stick to a schedule and make exercise a lot more enjoyable.


5. KEEP LEARNING


Learn something new, it will keep your mind sharp and add some structure to your day. Check out the City College in your town or Google "adult education" for free or affordable classes near you. There are also lots of online puzzles and games to keep your brain working.


6. SPEND MORE TIME WITH FAMILY AND FRIENDS


Retired or not, this is the #1 wish for most people. Who doesn’t want to spend more time with the people they love? You don’t have to be anywhere between 9am and 5pm on the weekdays, so make a trip to see your children and grandchildren. If you want to be even more involved, you can move closer to family and volunteer your time for babysitting duties.


7. ADOPT A DOG


Share your life with a dog in exchange for unconditional, tail-wagging love. Besides the emotional benefits, your canine friend will need regular walks that will keep you in good shape. Research shows that dog-owners also need fewer doctor visits, have lower cholesterol and blood pressure, and a lower risk of heart attack compared to those who don’t.


8. PLAN FOR THE FUTURE


Just because you’ve stopped working, it doesn’t mean you have to stop planning. With recent advancements in medicine, people are living well into their 90s. Set both personal and professional goals for yourself. Always wanted to run a marathon? Never visited the Grand Canyon? It’s never too late to get started. It’s also important to continue planning and adjusting your finances as you go.


9. LEAVE A LEGACY


What do you want to leave for your family, friends and the world? Research shows the happiest people are those who help others. This may be the time to think about giving back to your community. Leave a positive legacy by giving the gift of your time, knowledge, wisdom or money to local schools, community centers or charitable organizations that are close to your heart.


10. STOP OBSESSING ABOUT RETIREMENT


You’ve probably been anxious about retirement your entire adult life. Now that you’re there, stop worrying. Live for the moment and enjoy being the master of your own schedule.

In Stroud’s case, learning new things helped his transition into a new life. His daily ritual now includes making breakfast for the family and practicing yoga. "My time is filled with activities that inspire me and keep me healthy. I volunteer, paint, exercise and cook regularly," he gushes. “I love my new life!”

Even if retirement seems a long way off, you can start on some of these ideas to prepare for an easier transition. When it’s time to retire, embrace your newfound freedom and make the most of it. For more ideas and tips on how to make the most out of your retirement, emotionally and financially, visit aboutLife.com

1 Ameriprise Study: First Wave of Baby Boomers Say Health and Emotional Preparation are Keys to a Successful Retirement: http://newsroom.ameriprise.com/article_display.cfm?article_id=1963


Author: Lidia Shong from aboutLife

Saturday, March 28, 2015

401K Tips and How to Stay on Top of Your Retirement

When it comes to saving for retirement, a mix of investment options is integral to your future success. A 2013 report by the American Benefits Institute states that about 94% of employers offer a 401(k) retirement plan to their employees, yet many employees aren't sure how to get the most out of their plan. Here are some tips for maximizing the rewards of your 401(k).


Take the Entire Match



Plenty of employers offer a full or partial match of your contributions. For example, your company may match 100% of the first three percent and will match at 50% thereafter up to seven percent. Read your plan's details to make sure you're getting all the matching you can. Talk to your employer if they might be able to match more if you have a special circumstance like retiring early. It's free money, so don't leave it on the table and take advantage of everything offered.


Consider Your Tax Withholding


If finding the money to bump up your 401(k) contributions is proving to be difficult, take a look at your take withholding. If you aren't claiming enough dependents, you will receive a larger tax return in the spring. That money could be squirreled away in your 401(k) over the course of the year. Review your W-4 form with your HR department, and file a new one if you are claiming zero or not claiming all your dependents. Find other ways to get more for your money by talking to a professional tax accountant or even your credit card merchant account for bad credit and how you might improve it. This way you can really improve your profile and secure future finances more easily. 


Be Cautious of Age-Related Fund Distributions



Some 401(k) plans offer a target-date fund distribution. On its face, this can be a great idea. Simply input how many years left until you retire and the plan will do your allocations for you. However, this can be a bad idea. If you are young, age-related distribution can expose you to far more financial risk than you might be comfortable with. On the flip side, older workers may have far too conservative choices implemented for them. Look at your entire retirement portfolio to determine your comfort with risk. If you have a paid-off home, an investment in a credit card processor of bad credit, and plenty of cash in your IRA, you may feel fine with accepting some risk in your 401(k) to maximize gains. If your other assets are small, you may not want to take risks. Think this through and allocate your funds accordingly.

Reduce Debt and Spending


If you’re starting late on your savings for retirement make an effort to reduce any debts you may have and cut back on unnecessary spending. This might mean getting rid of the cable, going to free community events instead of the movies, and only eating out once a month. Make up a budget and make sure you have a spending limit for things like gifts and entertainment. If you have debts you need paid off before retirement make sure you work on those first and that a good chunk of your paychecks go to getting the balance down on each one.

A well-funded and smartly allocated 401(k) plan can be a great way to save for retirement. However, it should be just one piece of your overall investment portfolio. Keeping these tips in mind will help you get the most out of your 401(k) and give you the relaxing retirement you’ve always dreamed of.

Thursday, March 5, 2015

Early Bird: How to Start Saving for an Early Retirement

Setting retirement goals and planning for retirement is essential for any individual, but is particularly important when you need to retire at a younger age. By starting early and planning in advance, it is easier to reach retirement goals and plan for a realistic future. 

Although the best plan of action depends on several factors, there are some simple ways to start the process of saving for an early retirement, and keep your finances safe throughout.


Set a Monetary Goal



Retirement planning often requires a specific figure that is appropriate for personal expenses for the rest of your life. Generally, an individual or couple should expect to withdrawal around 4 percent or more per year for their entire life, so the income from investments and savings must meet or exceed living expenses when around 4 percent is taking out throughout the year.

Set a final figure, and then identify appropriate savings for each year. Keep in mind that investments provide income that compounds over a period of several years. As a result, it is easier to reach the final goal when the extra funds are invested early.


Set a Savings Goal




A savings goal is not the same as the retirement goal. It focuses on the amount of money that is available each month and how much you are willing to save. If over-spending is a concern, then have the money removed before it is available for the bills and other expenses. For example, if an employer offers a 401K plan, then take advantage of the plan and put aside the company match or a higher amount.

For an early retirement plan, focus on saving as much as possible for investing. In some cases, it is necessary to set aside luxuries. For example, opt for a used car instead of a new one to reduce the costs and put aside more money in savings. Small luxuries, like a cup of coffee at a coffee shop, or impulsive purchases, are appropriate if they are only occasional treats. 


Put Aside as Much as Possible



Putting aside a small amount of funds each year will add up if you start at a young age; however, putting aside a large amount of income will make it easier to reach a personal goal at a faster rate.

Early retirement requires a large amount of funds to last for a longer period of time. Even if it is only possible to set aside $5,000 in the first year, put the entire amount aside for retirement. If personal income increases due to a raise or bonuses, then take advantage of the savings opportunity. Maintain the same standard of living or only add small increases in overall monthly costs. Put aside the extra income for retirement.


Invest the Savings



Investing is essential for the growth of a retirement account. Avoid the idea that investing in a house is the primary goal; instead, put the savings into a diversified portfolio.
Never put the entire savings amount into one stock, fund or investment. Wait on a house until the retirement account is established.


Pay Off Debts



Although saving is a key part of retirement planning, debts add up due to the interest. It is particularly important to pay of high-interest debts like credit cards because the cost of the debt can drain any returns from personal investments. Do not carry debts forward into retirement; instead, work on a plan to pay off the full cost of mortgages, credit cards, student loans or other debts as early as possible.

Saving for retirement is not difficult, but it does require careful planning. Start saving at a young age by creating a realistic savings plan based on personal income and expenses. Setting aside money early will provide the chance to retire at a young age.


Monday, September 15, 2014

6 Things to Budget for Now If You Plan to Retire

Did you know that over 46 percent of Americans have less than $10,000 saved for retirement? Not planning for the future is one of the easiest ways people fall in debt, and unless you plan to work well into your 80s, you should start taking a more active approach to your future today by planning for it. It doesn't matter whether you’re 15 or 50, saving for retirement today can help you live a better, less stressful tomorrow.

1. Long-term care costs


While most people plan on retiring in their mid-60s, people are living longer, which means that age-old retirement plans just aren't cutting it anymore. In fact, the average American now spends over 20 years in retirement.

Don't underestimate long-term healthcare costs, as studies show it can cost around $100,000 per year to live in an assisted living center. Insurance can sometimes help alleviate these costs, but not always. If you have a family history of debilitating illness or a chronic medical condition, make it a priority to budget for higher assisted care costs. 

2. Medical emergencies


It's hard to budget for unexpected medical costs, especially since you never know what's going to happen, but you should have some money reserved specifically for medical emergencies. At the very least, a good rule of thumb is to try to have enough saved to cover the cost of your highest deductible. 

3. Debt resolution.


If you're dealing with more debt than you can handle, you're not alone. In fact, the average American household is over $15,000 in credit card debt. If you’re struggling to make ends meet, you may want to consider using a site like Creditguard.org to help lower your outstanding rates and plan a budget you can stick to.

4. Day-to-day costs


In addition, budgeting for everyday costs, like buying food and paying the utilities, is important as well. It’s easy to forget about these things when you are pulling in a steady paycheck, but they can become very expensive when your fixed income is gone. Keeping track of regular, day-to-day expenses is one of the best ways you can plan for your retirement budget. Consider free sites like Mint.com to help you prioritize and budget.

5. Property taxes


Though property taxes vary by location, it’s important to budget for these as well. The government will take a portion of the value of your land through property taxes. Make sure that you budget enough to pay for the average cost of these taxes, which can change based on property values. Since property value is often correlated with your local real estate climate, keep an eye on the housing market in your area to make sure your property tax budget will remain sufficient for years to come.

6. Insurance policies


There will probably be a number of insurance policies you'll want to retain during your retirement. These could include home insurance, car insurance, health insurance or life insurance plans. Unfortunately, the fees themselves aren't the only things you should budget for; extra expenses like vehicle maintenance and home improvements should also be factored in. It is important to prioritize your insurance expenses; if your budget is tight and there are a few policies you can live without, consider ending these and focusing on only the essential plans.

There are many expenses to plan for in your retirement budget, even excluding major costs like a mortgage or a car payment. That's why it's so important to plan ahead so that you are ready for the financial changes to come when you retire.

This article was co-authored by Maria Rivera, who has spent the last 13 years helping people overcome their financial hardships. She currently manages CreditGuard of America’s credit counselors and helps prepare individuals who are seeking their credit counseling certification. A resident of Boca Raton, Florida, Maria is always on the lookout for great new recipes and beauty tips. She's also a self-admitted pop culture junkie. You can follow the latest from Maria over on Google+.


Tuesday, September 9, 2014

Retirement Fun: What to Spend that Leftover Cash On

You have worked all of your life to save money, and now you have leftover cash in your retirement account. There are some fun things you can do with that money like vacations and dinners, or you can make a few improvements in life for fun that will last longer. 

Vacation Time


Instead of getting up early for work every morning, why not get up early to see the sun rise over the ocean, or take a walk along a mountain trail? Use some of the money you have leftover on a dream vacation. This could be a cruise, a trip to a mountain lodge, or a vacation to a beach to walk along the sandy coast. You will have plenty of time to enjoy your vacation as you don't have to worry about getting back home. Take the time to enjoy a good meal you wouldn't normally have at home, or go shopping for souvenirs to remember the trip. Retirement is the time to live out the dreams you’ve had all your life.

Learn a Little


If you want to stay at home instead of traveling, then consider adding an area in the home where you can read in comfort. Add a comfortable chair and bookcase to hold all your books. Learn about something you are interested in, but never had the time to read about. This could be anything from how to plant a garden, to reading about your favorite musician. You can also take a class at a community college to learn a skill you can use for a part-time job or hobby. 

Home Renovations


Now is the time to make your home look how you’ve always wanted. Add a new room for guests or put in that deck you’ve dreamed about. A Nanaimo custom home builder can give you ideas on ways to use a new room or how to update an existing room so it becomes more functional. Some home renovations in Nanimo might include new carpet, or new cabinets in the kitchen. 

New Adventures


Instead of sitting on the front porch swinging every afternoon, get out and enjoy life by going on an adventure you have always thought about. Take a hot air balloon ride over the city, or explore the Grand Canyon. Take a tour bus ride to a fun destination like Niagara Falls. Try kayaking down a relaxing river, or hiking up a mountain. The adventures are endless, and you can choose how often you want to go, or if you want to go with friends. Some adventures cost little to no money so you can save retirement funds for other fun activities or necessities. 

Become a Collector


Fill your home with stuff you like, and never had the time to collect while you were working. Put your efforts into collecting things you know you will cherish. Find something that holds a special place in your heart, such as precious stones, or American flags. If you have never collected anything, then go to a flea market or specialty store to see what your options are, before making an investment in something that will only clutter the home. 

Invest in Family


One of the best things that you can do is invest in family. Start a savings account so family members will have something to divide after you pass away. Create memories by taking everyone on a vacation, or get a family portrait made so you can have a special keepsake for the rest of your life.

You only have one life to live, and after you have worked through most of it, there are things you can do with retirement money that will make your later years more memorable. Whether it's adding a new room or simply taking a short vacation, do something that will make you happy.


Friday, September 5, 2014

Tax and Pension Related Challenges for UK Seniors

Tax code and general finance considerations become increasingly complicated as a person gets on in age. If you are over the age of 50 and approaching the age of retirement, make sure that you are aware of the following pitfalls and points of confusion faced by ageing citizens in the UK: 

Misunderstanding how pensions are taxed


You spend your whole life paying taxes on your income. Unfortunately, once you retire, this trend continues. However, the amount of tax that you owe on a pension depends on several factors, and it is easy to get confused regarding how much you owe – or even if you owe at all.

As an example, state pensions in the UK are not taxed below a certain level. You can read up on the specifics on how pensions are taxed on the HM Revenue & Customs website. However, the best way to proceed is to contact an accountant and have them assess your situation. Doing so ensures that you stay on the right side of the law without having to pay any more than is absolutely required. After all, every bit of savings counts when dealing with a fixed income. 

Finding the Right Forms


This is a problem that taxpayers of any age bracket can face. It is certainly not exclusive to seniors. The way in which tax forms are organised and prescribed is complicated to begin with, and anyone without a background in accounting or tax code law could be forgiven for being confused.

The problem is that filing an incorrect form can completely derail the tax return process. You may end up paying more (or less) than required. Likewise, filing an incorrect form could end up invalidating the entire return, subjecting you to further headaches (at minimum) or even fees.

Missing out on special credits and benefits


Every year, upwards of £5.5 billion in tax credits intended specifically for the elderly go unclaimed in the UK. These funds are made freely available by the government. However, the fact that their would-be recipients are unaware of them means that ultimately go unused.

These are a few common benefits that are often overlooked:

  • Housing Benefit: This benefit is intended to help elderly persons pay for housing if they rent rather than own.
  • Pension Credit: This benefit tops up your income to a guaranteed minimum level; roughly one in three eligible people fail to claim their pension credit. 
  • Council Tax Benefit: This specifically applies to those who have disabilities or require special care.

Again, failure to understand what types of benefits are available to you could actually be costing you money in the long-run. With that in mind, seeking the services of a chartered accountant or financial advisor could actually end up earning you more money than you spent on the services to begin with. 

Mishandling your annuity


There have been a number of changes and revisions to the way annuities are handled in the UK. What many ageing Britons do not realise is that they are actually able to choose which firm they purchase the annuity through. Many are unaware that they can purchase an annuity from a firm aside from the one they have charged with taking care of their investments.

While it is refreshing to have more freedom and control over your financial future, this also exposes us to greater risk. Most importantly, long-term financial planning is not something that you want to attend to yourself if you do not have a background in finance. A single misstep could set you on track for financial ruin further down the road. With that in mind, consult the experts before you prematurely draw on an annuity. 

Counting on your pension before you qualify


Those who are nearing the age at which they qualify to draw a pension are likely to start making changes to the way they structure their budget, finances and assets. The problem here is that the government is constantly revising up the age at which a person qualifies. While new regulations are usually announced well before they are implemented, it is still possible that a person could end up banking on a monthly stipend that’s actually not even available to them for a few more years. Make sure that you know how the law applies to you before you make any major financial decisions.

Author: Kristen Rodrigues is a writer working on a freelance basis for Brebners, a company found in London and Kent that believes that they can help any business with their tax and accountancy matters.

Sunday, August 31, 2014

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

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

Higher emergency fund


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

Medical costs


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

Dental Costs


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

Downsizing


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

Catch-up contributions


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

Long term care insurance


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

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

Wednesday, August 13, 2014

The GOLDen Years: Five Financial Changes You Need to Make When You Hit 60

After spending a lifetime building a career and working toward your retirement goals, it can be an adjustment financially once hitting the age of 60. Although you may be used to living a certain lifestyle, financial adjustments may need to be made to preserve your retirement savings and have your needs met. There are a few changes to make to ensure that the funds last for several decades and are well preserved—keep reading to learn about the most influential changes you should make to your finances once you hit those golden years. 

Reallocate Your Investments


To protect your assets, you might consider shifting to low-risk investments to prevent loss from occurring if you feel comfortable with what you have saved for retirement. If you expect to live longer, you can shift to more aggressive investment options for a few years before you evaluate the success and projected future of your investments. Depending on your financial situation, reallocating your investments could provide you will a little buffer cash to put your mind at ease.

Establish Scheduled Distributions


It's important to reassess your budget each year and make adjustments where inflation may occur for the cost of living. Contact your financial services provider to schedule payments weekly or quarterly, which will ensure that you live within your means and preserve your retirement fund. Look for areas where you can and should make adjustments so that you can take care of payments in a timely manner while still enjoying your finances set aside for retirement.


Downsize Your Home


For those who are in their 60s and have children who have moved out of the home, they are likely living in a property that is too large for their needs. After raising a family that is now on their own, it may be time to downsize and reduce the cost to maintain the home. Consider relocating to gated community or condo where landscaping and maintenance won't be a concern and costs for home upkeep will be lower. When it comes to home insurance, the professionals at Underwriters Insurance Brokers Ltd who specialize in Vancouver home insurance suggest that you increase your deductible so that you can enjoy lower monthly premiums. Living in a house that is too big, and paying too much for home insurance will drain your hard-earned retirement funds much faster than necessary, so consider downsizing before too much money is wasted.
Use the Money from Taxable Accounts First

To avoid paying more in taxes with your 401(k)s, make it a point to use the money from the accounts that will be taxed the most after also using the accounts that are not a part of your IRAs or 401(k)s. Using your taxable accounts first will be more efficient, and will keep you from cringing too much when tax season rolls around.

Take Advantage of Tax Breaks


Each state has age-related tax breaks that offer deductions and exemptions for ample savings each year. Research what you qualify for through the state department or talk to a financial advisor to find out what types of tax breaks you might be eligible for. Many people have no idea that they qualify for any tax breaks, so they miss out—do your research and talk to your accountant or financial advisor to see if there are any breaks you should know about or look into.

By making a few financial changes once you turn 60, it can preserve your retirement funds and make it possible to live more comfortably in your golden years. Although it may take time each year to manage your investments and downsize in certain areas, the changes will ensure that you enjoy a happy and healthy retirement while taking advantage of the fruits of your labor.


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