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

Friday, February 16, 2018

Getting Older? 4 Financial Plans You Need to Have in Place

A part of getting older is planning for your retirement. You need to have financial goals to help you get where you want to go. Here are some financial plans that you need to have in place.

Set a Realistic Budget

A budget will allow you to live within your means. You need to take a hard look at where your money is going. Determine if there are any areas that need some work. If you are living paycheck to paycheck, you need to reevaluate your lifestyle choices. 

Retirement will be difficult if you don’t have a nest egg set aside. Figure out how much money you’ll need to have in order to live comfortably. Have a little extra left over in your budget. Set this money aside for any unexpected expenses.

Work Towards Debt Elimination

Debt can be crippling if you don’t have a steady income. You would have more wiggle room in your budget if you didn’t have to pay off your debt. The best way to eliminate debt is to pay more than the minimum each month. 

Consider how much money you are losing just paying the interest. This money could be better spent somewhere else if you were able to eliminate your debt load. Look at creative ways that you can pay off this debt.

Keep Health Insurance in Mind

Many people have health insurance through their employers. Once you retire, this will be an added strain on your budget. Schedule an appointment to talk to a lawyer about medicaid planning

They can help you through this process so that you can still have health coverage. As you get older, medical treatment becomes more necessary. Not having insurance can leave you saddled with major medical bills. 

This can quickly eat up any money that you have set aside.

Invest in Retirement

There is still time to start saving for the future. Take advantage if your employer offers a 401k. You have other means of starting a retirement account. Traditional IRA and Roth IRAs are also available. 

These will allow you to put money away for your future. As you get closer to retirement age, you can put more money into these accounts. This will offer you a preview of what it will be like to live on more limited means. Then you can adjust your lifestyle as needed.

You need to create a financial plan in order to prepare for retirement. You may need some assistance in developing your plan. Use the tools that are at your disposal.

Friday, February 9, 2018

Your Guide to Early Retirement With Online Trading

Let’s begin by characterizing "retirement." Contingent upon your age, your perspective on retirement may differ. When you ask somebody born pre-1980, they will consider retirement to be the last stage in life in the far, inaccessible future. This will be a period when they can begin carrying on with the life they need and doing the things they appreciate.

An online trading analyst from Wilkins Finance asked a few people born post-1980 (as of now in their 20s or 30s) if their attitude toward retirement will be different. At 26, you may understand that the probability of projects, for example, benefits and government managed savings are a relic of days gone by and have chosen to bring measures into our own hands.

This begins with taking control of our funds and organizing our own way to money related opportunity. It implies that we would prefer not to work in a vocation we detest and save everything until the end. Rather, we wish to spread "conventional" retirement compose encounters for the duration of our lives, working smart instead of working hard.

It's tied in with having a work/life adjust and begins with working in a vocation we appreciate. Working savvy, making easy revenue streams and taking control of our own retirement is a portion of the beliefs that make up this new age.

Start off with your retirement in mind

The vocation of post-college alumni of the twentieth century looks not at all like that of the previous 50 years. An increasing number of individuals dive in and begin their own particular organizations. As a dealer, you fall into this classification.

Ask yourself these questions

If you're an administrator at an extensive company with a spouse and children at home with a money market fund, exchanging stocks can profit searching for a fast buck. Maybe you work in IT as an architect and are captivated with the specialized parts of day exchanging. Thus, ask yourself the following questions:

  • Can I handle being off-base and losing cash in the here and now so as to profit in the long haul? 
  • Can I hold fast to a routine and acknowledge that I will commit errors? 
  • Can I handle dismissal and feedback; conflict with the grain, and disregard the sentiments of others? 

Lower your costs

Investigate what you spend your cash on every month. Is that satellite television + motion picture bundle justified, despite all the trouble? Not only does decreasing your month to month cost bring down your aggregate dollar figure on which you can live off, yet in the event that you're waging continues as before you can save more and achieve retirement sooner. 

If you are exchanging full-time not having a gigantic pile of bills to every month diminishes the mental pressure and weight of constraining yourself to make exchanges and making cash to pay the bills.

Making a living out of your trading income

When you have your costs under control you'll have a lot of additional funds to contribute towards investments. It's vital to keep your exchanging size little where you can deal with your positions with an unmistakable and target psyche and rest during the evening.

Over the long haul you will turn out to be more certain about your capacities and you can start to build your size to the point where your month to month exchanging benefits break even with and surpass that of your month to month costs.

Exchanging is an incredible instructor of life's most noteworthy lessons. Permit the exchanging procedure to incorporate into your present way of life, and then roll out little improvements towards the way of life you need to live. Work to apply the standards gained from exchanging to all parts of your life.

A portion of the lessons exchanging has shown me are the way to evaluate chance/reward of a thought, how to confine myself from the feelings of winning and losing cash, and most critical how to spot great open doors when they emerge.

Planning your retirement

There are numerous open doors for us to diminish our spending on futile items that will wind up on our storeroom racks while in the meantime putting our brain to great utilize and gaining a couple of additional dollars every month.

Begin by placing yourself in the correct attitude. Try not to take a look at exchanging as an approach to make a brisk buck. Put resources into your future and resolve to be an understudy of your art forever. Exchanging can be an incredible method to create extra salary. If you do as the lion's share does, you can hope to wind up with normal outcomes. You should think like the minority with a specific end goal to succeed.

Friday, January 26, 2018

Hobbies to Pick Up in Retirement

For many Americans, one of the ultimate chapters to reach in life is retirement. That’s a crucial part of the American dream, right? To reach the point where we’ve worked enough that we’re set to spend the rest of our lives doing whatever we please! 

Well, sometimes it’s not quite that simple. For many people who reach retirement, the sudden influx of free time can actually be quite shocking. Indeed, there are studies that show this might be reason that alcoholism rates tend to increase at the retirement age. 

The truth is that, like with most things in life, retirement should be approached with a plan of what it is that you want out of it. Here are some potential hobbies that people pick up in their retirement...

Landscaping and gardening

If you have a home that you’ve spent so long building up throughout your career, then there’s a good chance that you’re going to be thrilled to finally spend some time in it. For this reason, one homebound hobby that many retirees get into is landscaping, or gardening. 

This is a great way to improve on your home, and to get yourself outdoors doing something that you love. Sometimes, just finding the right way to perfect your backyard is an incredibly fulfilling hobby that will keep you busy for weeks or months!

Take your cooking up a level

Another great home activity that you can do in retirement is cook; not just cook to take care of your meals for the day, but actually cook for joy and flavor. If you’re a person who loves to cook, then retirement is a terrific opportunity to update your kitchen and spend some more time in it. 

Try making recipes that you always thought sounded good. Or, try bringing the food from another culture into your own kitchen and see how you fare at making it. This isn’t likely to be your only hobby, but it can be a delightful and useful one to take up in retirement.


For many people, traveling is something that they’ve always wanted to do, but something always seems to get in the way, whether that be family, their career, or a substantial amount of debt. 

Well, retirement is the perfect opportunity to finally get out there and see the world. After all, you’ve already spent a good portion of your life in the home you had to have so you could go to work. Why would you want to spend the rest of it there? Instead, buy a plane ticket or load up your car and head out to see some places that you’ve always wanted to go and experience.

Serving others

Retirees are often some of the most charitable people, simply by virtue of them having the time and resources to figure out what they want to donate towards. Well, there’s a lot more you can donate than money. 

Giving your time to your community to help with the problems that face it is a terrific and fulfilling way to spend your retirement. 

Giving back to the community is a great way to refocus your work from your career, but to still have a purpose that makes you feel useful.

Active living

Good health isn’t just for the young. When you are older, it becomes more important to engage in healthy activities that keep you feeling great for years. Now that you’re retired, take up some of the physical activities you’d always wished you had more time for. 

Take a morning and hike up a mountain nearby, or simply go for a swim at a local spot. You’ve spent all this time getting to retirement, don’t you want to enjoy it for as long as you can?

Joining clubs of similar interests

There are an immeasurable amount of hobbies that you can take up after you retire, and virtually all of them will be more fun if you are able to enjoy them with likeminded people. 

No matter what your hobby is, take a look at local groups that share the same interests, so you can meet new people and make fulfilling friendships to give your retirement a social scene that encourages you to do the things that you love.

Tuesday, December 19, 2017

Your Quick Guide To Going For Growth In 2018

There’s no doubt about it, this last year has been one of the strangest of all with a new President, unrest in the world and the continuing saga of the UK’s plans to leave the EU.

So now it’s time to start questioning what 2018 holds in store for us and how we can all start to make our hard-earned cash work even harder for us. A good place to start would be to look at what we can say about the way the economy will be headed in 2018, or what we may be able to predict.

The first thing to say would be that already the Federal Reserve has indicated that interest rates may be raised up to four times over the next 12 months. While it’s all but impossible to predict what this will mean in actual terms it is fairly safe to say that, for many, this will place an extra burden on their finances while also making savings rates a little more favourable.

It’s also important to look at exactly why rates may have to rise and the reasons are far from bad. In fact, it’s that the economy is on the up, unemployment’s going down and even globally there are the early stirrings of other countries’ economies coming back to life. So it all adds up to the fact that we’ll be going into 2018 on a strong economic wave.

We also know the stock market will start 2018 at near historic highs as the S&P 500 is currently running a Shiller price-to-earnings ratio of 32, which is nearly double the long-term. average. What this means is that to really maximise your returns and take full advantage of the situation, you’ll have to be extra vigilant about where you invest.

It’s also worth noting that it seems like neither pronouncements from President Trump or the risk of conflict in North Korea have had any effect on the markets over 2017, but that’s not to say that these factors won’t come into play in 2018.

So let’s take a look at some of the investments that could pay off for you over the next year. It’s in no way intended to be definite guidance but it should certainly give you plenty to think about.

Your 401(k) Plan is a great investment - especially for the over 50s

If you thought that tax shelters were only for the super-rich it might be a big surprise for you to learn that you’re sitting on one right now, whatever the level of your wealth, and it’s called the 401(k).

Now you may also have thought that the 401(k) plan is, at best, some far from impressive mutual funds which also have high fees attached to them. But, in fact, it’s a very good and tax-efficient place for your money.

For example, if you currently pay 25% tax then for every dollar you invest it’s an extra 25 cents of your investment that’s compounding, and this, over time, is of huge benefit to you. The fact that next year the IRS is going to increase the annual contribution limit on 401(k) plans to $18,500, excluding employer matching, is good news PLUS if you’re 50 or older, you can add another $6,000 per year making $24,500.

So, even if you’re nervous about where the market may be heading, you really should try to maximize your 401(k) plan, especially as there are money market and stable value funds to invest in with minimal risks.

Consider alternative investments too

While there is plenty to recommend the stock market both as a tried and trusted method of increasing wealth, at least during the good times, as well as being a way to own a stake in the US economy, it’s not necessarily always the very best place to invest.

You only have to look at the 13 years between 1968 to 1981 when the Dow Jones Industrial Average actually lost money when inflation was taken into account. But over the same period commodities and gold did far better, especially in the case of the latter whose value rocketed by 2,000% between 1971 to 1980. So the moral of this story is not just to buy gold to think about diversifying in order to not be just relying on the market.

A word of caution, though. When you’re thinking about investing in alternatives you need to be aware that it’s far less regulated than the stocks and bonds markets so a little more diligence is needed. You should also never invest in something you never fully understand. We only have to look back as far as 2008/9 to see exactly where that can lead.

The Bitcoin bubble?

One example of understanding what you’re getting into before you make the leap is the Bitcoin and other cryptocurrencies.

Throughout the year Bitcoin has been hitting the headlines as its value has gradually increased, finally hitting the symbolic $10,000 mark in November. There are also many stories about the people who got in at the earliest days and now are finding that they are multi-millionaires, on paper at least. But, even in the light of these huge gains in value, there’s also increasing disquiet amongst banks and economists that this is showing all the signs of a classic bubble, and we all know what happens when they burst.

The fact is that Bitcoin’s key strength and point of difference in the eyes of some – its independence from governments and financial institutions – is also its biggest weakness. The facts behind this expressed very succinctly by Rodney Johnson, the head of the highly respected economic forecasting firm Dent Research who has pronounced that “If a company or commodity has no assets, no returns and no backing, what’s it worth? In a word, ‘priceless.’ Some will see zero value, others infinite value”. So it very much depends on how you stand on this point which will dictate your attitude to jumping on the Bitcoin bandwagon.

When asked more precisely about his attitudes to investing in a cryptocurrency Johnson was also quoted as saying. “I wouldn’t risk any significant portion of my wealth on such a thing. But I might put a few dollars in, like buying an investment lottery ticket.”

So, in terms of gambles, you might well be better off trying your luck at any of the many online casinos that offer you the chance to take up free spins and bonuses and play without putting up a single cent of your own money, in a fiat currency, of course!

Go for value stocks

So now we’ve covered off these areas, it’s time to take a look at the sorts of stocks that could prove to be a good investment throughout 2018 and beyond.

There’s a simple reason why we’ve left this to last and that’s because your first priority should always to be making your definite savings decisions first before seeing what cash is left over for more speculative investments.

Assuming you go have a pot to invest, it could well be worth following the advice given by many market observers who have been advising that we should be looking for value rather than growth. Now this may sound counterintuitive at the end of a year in which the Russell 1000 Growth Index outgunned the Russell 1000 Value Index by showing returns of over 100% more but the tide may be beginning to turn. So talk to your financial advisor and keep a close eye on the financial pages to spot the value opportunities as and when they arise.

As to what all of our financial situations will be at this point next year, only time will tell. But what is certain is that we’ll all be a year older - but hopefully also a little wiser and richer too - and ready to take on all of the challenges that 2019 may have in store for us.

Thursday, September 21, 2017

Learn How Smartphones Can Help You Grow Your Retirement Nest Egg

Your retirement may be close, but you've got plenty of time to grow that nest egg. Your smartphone is a potentially untapped resource for growing your retirement money, so make sure you take advantage of the opportunities it presents.

Use Investment Apps

Personal finance apps like E*Trade let average people invest in the market without a broker. Before you jump on personal finance apps, do some research about the types of investments you want to make. 

Many people later in life prefer safer investments, though there is definitely an advantage to short-term investments that could bring higher returns. As long as you understand what investment strategy you're comfortable with, you're ready to try out an investment app.

Start slowly until you get the hang of how it works. Investing is difficult even for the pros, but one piece of advice endures: invest in businesses and people, not in market trends. 

If you know about or can learn about a business, entrepreneur, or an industry, center your investments there. Industry information will be more helpful than trying to analyze what the market is doing.

Save Spare Change

Getting the money to invest can be a struggle. If you have kids in college, have medical bills to pay, or are on a fixed income, you may not have much saved for investing. 

A spare change app rounds up every debit card transaction you make and puts the spare change into a separate account. Then, most of those apps, like Acorns, invest or save that spare change for you.

You don't have to put in a lot of effort in the investments, because the app companies have financial advisers creating portfolios for the app users to invest in. Spare change apps have another advantage: the minimums for investing are very low. 

You don't need $1,000 to open an account; the amount is more like $5 or $10, an easy amount to accumulate in spare change over a month.

Create a Budget

You're no stranger to making a budget, and you've probably had money pulled from your paycheck for your 401k for years. When you reach your 50s, it's time to make a more aggressive investment budget. 

Take a look at your finances, especially your expenses and how much you're saving. If you're not saving much each month, try to trim some of those expenses so you can put away more money. 

Switching from digital cable to a streaming service like Hulu can save you almost $100 each month, for example.

Use a budgeting app like PocketGuard to keep track of exactly where your money is going. A visual will help you discover places you could be spending too much. When you set aside savings each month, remember to invest some. 

However you decide to invest, whether on your own or through a financial adviser, make sure some of that money is going into a higher-yield account than your savings.

Video Chat With Financial Advisers

We don't all have time to visit a financial adviser's office in person, especially with kids in high school, doctor's appointments to go to, and homes to care for. 

But fitting in an appointment with a financial adviser becomes easier when you do that appointment via video chat. Let your adviser explain your financial information face to face instead of over an impersonal phone call.

For a successful video chat experience, use the right equipment and the right network. Let's face it, using new technology isn't always the easiest, and focusing on a small screen while trying to talk to another person can be frustrating. 

Focus on finances, not on a bad video connection, by connecting with a quality smartphone on a good network. The Galaxy S8, paired with T-Mobile's 4G LTE network, for example, is a great combination. 

The Galaxy has a 5.8-inch infinity screen with a sharp display, and 4G LTE will give you a high-quality video connection.

It's never too late to start saving for and investing in retirement. Personalize your investment strategy with your smartphone, whether you use it to connect with a financial adviser or choose to manage your own investment apps.

Saturday, September 2, 2017

How to Manage Your Finances and Trust Funds Like a Professional

Research from the reputable financial giant Bankrate indicates that significantly more Americans drink coffee on a daily basis than own stock market investments, 61% to 48%, respectively. 

About one-quarter of United States citizens are fortunate enough to inherit money through trust funds. As indicated, not everybody can afford to invest money, meaning those who can and do stow away money for themselves and others are of fortunate financial position. 

It's easy for people to ruin their finances and trust funds, causing financial ruin and worry in their own, and others', lives. Here are several tips for managing personal finances, just as a professional would.

Focus on Retirement Accounts Early On

Some retirement accounts are matched dollar-for-dollar by employers. Investing in these accounts, most notably the 401(k) plan, earns extra income by simply saving it in a retirement account. 

These plans should be matched until employer's maximum contribution amounts are reached. While such investments don't earn interest over time, unlike stocks, bonds, and mutual funds, employer matching is nearly always more valuable for your interim and long-term financial position. 

If your employer offers multiple retirement accounts, invest in them until employers won't fund any further - it's unarguably worthwhile.

Decide if Trust Funds are Worth Using

Individuals with little disposable income shouldn't stash away assets into trust funds, unless they're 100 percent, positively, absolutely sure that money wouldn't better serve any purposes in the owner's lifetime. 

Some companies, such as Home State Bank, know that trust funds can provide lifetimes of financial support for beneficiaries that inherit them. However, the most important aspect of considering a trust fund is timing. 

If you have a high income, with mountains of disposable income laying around, trust funds can reduce which tax bracket you're in. Situations not benefiting significantly from such a tax break aren't ideal for trust funds.

Don't Invest in Single Stocks

Stock performance depends directly on that company's financial performance. As such, purchasing one, two, or five stocks isn't a good idea. 

Rather, consider investing in shared, fully-diversified mutual funds, but only if retirement accounts are fully funded and plenty of low-risk assets are owned.

State Income Tax Matters

Everyone in America must be federal taxes. However, those in certain states, like Florida or Tennessee, aren't subject to state income taxes. 

These rates can be as high as California's 13-plus percent. As such, move to states without income taxes as soon as possible.

Money is an integral part of life. Unfortunately, few people don't know how to properly manage their finances. 

Don't get into trust funds unless you're loaded, aim to diversify stock investments - that's if you're set on low-risk investments - and make sure to create and closely adhere to budgets and plans.

Wednesday, August 2, 2017

4 Ways Retirees Can Set Themselves Up for Financial Bliss

It can seem futile to consider how to plan for retirement especially for those who may have little to no savings currently. Knowing how much to save, where one is going to live and how many health care bills are going to roll in can be nearly impossible. 

However, even with all of these variables, soon-to-be retirees and the currently retired can take steps to ensure a financially secure and stress-free future.

Proper Savings

Plenty of savings is key to a comfortable retirement. Those who are still working should be saving a minimum of 10% of their gross earnings in a retirement account. 

However, spending strategies are best based on actual calculations of how much money will be needed in retirement and at what age saving will begin.

Wealth Management

Wealth management lets retirees hand over the reins of their financial planning to trained professionals. Some of these professionals, like those at Trajan Wealth, know how confusing financial planning can be. 

These people can help with retirement planning, estate planning, taxes, and other assorted accounting needs. Because they know the intricacies of investments as well as the health of the economy, they will have the best gauge of how money should be spent and saved during retirement.

Healthcare Coverage

Health care is often one of the biggest costs during retirement. In fact, according to CNN, health care costs the average retiree approximately $260,000. 

Therefore, seniors will want to evaluate their health care plans yearly even after they qualify for Medicare because Medicare typically does not cover everything. Moreover, they may want to consider long-term care insurance and health savings accounts.

Part-Time Jobs

Retirees who would like a little extra cash due to decreased savings prior to retirement, unexpected costs or the desire to make larger purchases during retirement may want to consider picking up part-time jobs. 

This is often something that the individual loves to do and may center on a former hobby, such as woodworking, music, gardening or crafts. These small jobs can often be enough to make travel possible or to fund expensive tastes.

While many aspects of retirement can be planned individually without any outside help, some aspects can definitely blossom with the help of a trained professional. Wealth management and investments are often best overseen by someone with years of experience who has a close eye on the current market and economic temperature. 

With proper investments and careful living, nearly anyone can retire comfortably and with at least a bit of spending money on the side for traveling and other dreams.

Tuesday, June 6, 2017

Living The Dream Or Counting Every Penny: What Will Your Retirement Look Like?

What do you want your life to look like in retirement? Do you picture yourself retiring to the coast or the countryside? Reconnecting with your spouse whilst vacationing or taking a cruise? Or picking back up some hobbies like gardening or golf? 

Sounds great, but whilst you might have the dream, have you thought about how you will pay for it in reality? 

According to a recent study, one-third of American adults have no retirement savings at all, with many choosing to stick their head in the sand and spend today rather than save for tomorrow.

Picture The Life You Want

The first step to a stress-free retirement is to take the time to sit down and think about what you would actually like your life in your later years to look like. Some key things to think about might be what age you'd like to retire at, where you'd like to live, what little luxuries you would like to have. 

Next (and one of the most important steps) is to realistically work out what it may cost you - there are many calculators available online to help with this process, and it's a very valuable exercise: many people either vastly over or under-estimate how much retirement may cost them. 

Remember, it's difficult to start planning if you don't know what goals you are aiming for!

Make Changes Now!

Obviously, the older you are when you start, the less time you have to save. In an ideal world, everyone would start to save for retirement when they first start earning - the compound interest effect means that you will build up a much bigger pot this way, but few people actually start then. 

The main thing is that you start now, whatever age you are at - you are only going to get older, and starting to save for retirement at age 45 is better than starting at age 50! Look at any little ways you can save like bringing lunch from home instead of buying it when you're at work, or foregoing your daily latte habit, and put the cash straight into your savings pot. 

Another great way to save is to have a small amount paid straight from your paycheck into a savings account - if you can only manage 2% to begin with then start with that, but commit to growing it on your next pay increase, that way you'll get the benefit of more money going into your savings without feeling like you're paying more into it. 

Make sure to take advantage of any employer contribution for your 401K too - many will match what you put in, and that's free money!

Insured For Life?

One thing to think about is investing in a life insurance product - not just from your own point of view (many policies pay out early in cases of terminal illness), but also for what you might want to leave behind for any family members in the event of your early death. 

Life insurance can be quite complicated - how much you want, whether you want whole, universal or term life coverage, if critical illness cover is included etc, so it's important to use reputable sources to do your research, or use an trusted independent advisor.

Start Today!

Retirement planning can be confusing and stressful, but don't put it off another day - make the first move today and take it step-by step. 

Think about key things like the lifestyle you want, how much money you need to achieve it and life insurance, and either do your own thorough research or consult an independent financial advisor to talk you through it all.

Monday, May 15, 2017

UK Retirement Savings Map Shows Who's Saving and Who's Not Saving for Retirement

Dreams of a comfortable retirement are going to turn into a nightmare if you don't save money today. It's hard to believe many people are saving little to nothing in their workplace pension plans. Lately, there is a discussion going on in the media concerning this very issue.

In the infographic below you can see how the different regions in the UK are saving money for retirement. It's not very encouraging to see the neglect that many workers are taking to their retirement pension plans. Saving little to nothing seems to be the norm and not the exception. Check it out.

Credit: True Potential, A UK based company providing an online investment service

Tuesday, April 25, 2017

7 Benefits Of Owning A Home Through Mortgage in Retirement

There are many advantages of mortgages though many people may not be aware of these benefits. There are many benefits of owning a home through a mortgage. 

Therefore if you are planning to buy a home, make use of a mortgage, and soon you will realize the many advantages of owning a home through a mortgage. Continue reading to discover such benefits.

The Mortgage Does Not Affect The Value Of Your Home

The reason for buying a home is because it will increase in value with time. If you were sure that the value of the home would fall, you would opt to rent a home. 

 The value of the home will rise and fall different times within the years, but there will be no monthly statements that show the progress of the value of your home. Get your home mortgage with and you can be sure the value of your house will not be affected.

You Can Still Build Equity In The House

Many people are interested in the building of capital which is the primary financial reason to own a house. The investment can be used in different ways such as paying for the wedding, college fees or even when you have retired. 

Many people have a thinking that mortgages are bad because of if the mortgage is big the equity is small, but that is not true. As you pay off your mortgage, the equity grows, and if you pay the mortgage fast, the investment will grow quickly.

Mortgage Can Be Considered As Cheap Money

It is true that you will never find more reasonable money to borrow than the mortgage. If you demonstrate that you can pay for a loan, then you can be given credit. If the lender is confident with you that you will pay the money as agreed, you will be charged less interest. 

If you decide to offer your house as collateral, then the bank will have your house if you do not repay. Therefore, the risk of the bank is reduced, and it will lead to low interest charged.

The Payment For Mortgage Become Easier Over Time

A time comes when the amount of your mortgage become fun. Over time the mortgage payment becomes almost insignificant because of you income rises and the house increase in value. 

The initial stages of mortgage payment may be a struggle, but over time the debt will become cheaper about the income that you are earning.

With Mortgages, You Can Create More Wealth

Some people get big mortgages for their first income mainly because they do not have any other option. Though they do not have a lot of money, they have the excitement of moving to a new house. 

Over time, you got a big family and increased income whereby you can now plan to go to a bigger house.

With Mortgage You Can Sell Without Selling

If you have a home which you purchased ten years ago, it has increased in value as compared to how you bought it. 

If you think that your home might fall in value or the equity of the home is at risk, get a new mortgage then pull the equity out of the house which will work just the same as selling though you do not have to sell it.

Thursday, November 17, 2016

5 Ways to Prepare Financially for Retirement

Everyone dreams of the day they’ll get retired, but romantic projection we have of retirement is often completely different from the harsh reality that often involves financial difficulties, loneliness and decrease in overall health.

The pension is usually much lower than our pay, which often makes new pensioners rethink about their spending habits and lifestyle. 

Still, retirement doesn’t have to be burdened by financial difficulties if the right financial strategy is applied even before the golden age takes place.

1. Don’t Rely Only on Savings

The fact is that nowadays people live longer than they did 50 years ago and often savings aren’t enough to live the lifestyle we are used to. 

So, before retiring make a financial plan that will make you money, even when the paycheck is gone. It can be investing in binary options, stocks, forex markets, or unsheltered savings.

It is always good to ask your accountant what are the possibilities or rely on a financial advisor who will make you a proper investing plan for the retirement.

2. Know Your Expenses

It is important to understand where all that money you make is going and to adjust your expenses to your possibilities while taking your future into consideration. 

Some researchers say that most people need 70-90% of their previous income to keep up with the lifestyle they had before the retirement, so it is important to rethink your priorities and needs before the first pension comes. 

Always have a real picture of your cost/income ratio.

3. Think Smaller

In our 30’s and 40’s we like to dream big, and we need big things, but once the children are on their own, all big things become a burden as they cost a significant amount of money. 

Try to cut costs before retirement by downsizing your home and getting rid of all unnecessary services. 

Find a cheaper mobile plan, get rid of expensive TV programs or TV on demand, and don’t be afraid to ask for a better deal or take your business elsewhere.

4. Reduce Your Debt

It is much easier to reduce your debt while still working than in retirement. People who efficiently handle their debts can enjoy their retirement care free. 

Besides getting rid of a credit card, student loans, and other types of debt, it is always good to check interest rates and fees charged by your bank. 

They may seem small, but they accumulate over time and can truly make a difference.

5. Review Your Will

Many things change over time and having an updated will gives you insurance that your estate will be distributed as you intended it. 

Periodical reviews of your will, will provide you the much more peaceful state of mind and will help your family in case of emergency. 

Also, sometimes thinking about future in that specific way, puts all things, including finances in a whole new way.

Sunday, October 16, 2016

Guide To Getting Your Debt In Order Before Retirement

Picture yourself back in your high school chemistry class for a moment. You have three beakers. 

One is full of a solution called debt, one is full of a solution called retirement, and the third one is empty. You pour the debt and retirement solutions into the third beaker, and you know what happens? It blows up in your face. 

Why? Because retirement and debt are a toxic combination. Do what you can to get your debt in order before you retire and you will enjoy the retirement that much more.

1. Prioritize Your Debt

Depending on how much debt you have, you are never going to be able to tackle all of the debt at once. The first step is to prioritize the debt you are in. 

You will do this by focusing on interest rate and tackle the debt that is costing you the most money first. Getting rid of the more expensive debts first will speed up how fast you get all of your debt paid off. 

Just create a list of your credit cards, installment loans, student loan debt, and unpaid bills.

2. Consider Getting an Installment Loan

If you have a handful of smaller debts or bills from different places and live paycheck to paycheck, you could consider getting an installment loan and using the money to pay off some of the smaller loans or debts. 

You can apply for installment loans online and pay them back gradually instead of having to come up with a lot of money all at once the way you’d have to with a payday loan.

3. Understand Your Options

The opportunity to settle a credit card bill by paying 50-70 percent of the total bill may sound appealing when a debt settlement company sends you a letter or calls you on the phone. 

However, it is important to slow down and understand more about debt settlement companies before doing business with them. The unfortunate truth is debt settlement companies rarely have your best interest in mind. 

If you work with a debt settlement company, you may end up paying more than you would have if you just paid the debt in full on your own.

4. Create a Budget

In order to prepare yourself, financially, to have the best retirement possible, you should spend time making a budget as well. 

This is to compare how much money you spend every month to how much money you make. If your lifestyle and spending habits do not match your retirement income, you will need to cut back on spending and find ways to save some money.

5. Stick to the Plan You’ve Created

Once you create a plan, a budget, and prioritize your debt, it is important for you to stick to the plan you’ve created. 

It is not uncommon for this to be more challenging than crafting a plan in the first place. If you take a detour from your plan and spend money on things that were not part of your budget, you run the risk of not having enough money to pay your living expenses. 

You can avoid this budget by trying to set a little money aside for random spending or just to save for a future larger spending. The key is to try to avoid spending money you never planned to spend.

As you can see, preparing your finances and dealing with your debt before you retire isn’t complicated if you develop a plan. The earlier you start dealing with your debt and preparing your finances for retirement, the easier it is going to be.

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