Showing posts with label Social Security. Show all posts
Showing posts with label Social Security. Show all posts

Thursday, January 25, 2024

Tips for Fighting Inflation During Retirement

Inflation affects everyone, but when you’re on a fixed income after retiring, inflation can cause you some major financial stress.

Thankfully, there are ways to fight inflation during retirement, ensuring that you can get back to living comfortably with the peace of mind you had when you entered retirement. With a little effort and research, finances will be the least of your worries in retirement.

Keep an Eye on Inflation Rates

If you want to combat inflation effectively, you must stay well-informed about the current inflation rates and trends. Inflation rates can fluctuate from year to year, influenced by various economic factors and indicators. 

By learning about and understanding these changes, you can proactively adjust your retirement plan and mitigate inflation’s impact on your finances.

Armed with the right knowledge, you can make well-informed financial decisions and stay ahead of inflation. Adapting to different strategies and plans will help you safeguard your financial health. Remember, knowledge helps you navigate inflation’s ups and downs.

Evaluate Your Recurring Payments

During retirement, you’ll need to evaluate your recurring payments and expenses regularly. Look for ways to reduce unnecessary costs and find cost-effective alternatives for your essential bills. 

By identifying potential areas of savings, you can free up some funds to better keep up with inflation or save toward future expenses.

Even with something like life insurance, you have options. It may be more financially sound to sell your life insurance policy instead of making the premium payments month after month. 

If you no longer need it, it may be time to unlock your life insurance policy’s value and sell it, simultaneously filling your bank account and reducing an unnecessary recurring payment. 

When you carefully evaluate and stop costly recurring payments, you’ll have much more money to spend on yourself and your family.

Delay Social Security Benefits

If you can afford it, consider delaying your Social Security benefits for a more comfortable payout down the road. By strategically postponing your benefits, you can enjoy higher monthly payments and harness the power of compounding growth to maximize your Social Security income. 

This approach offers a more substantial financial foundation during retirement, enabling you to effectively circumvent the problem that inflation on a fixed income brings. When you take this step, you can navigate the challenges of inflation more confidently.

Diversify Investments

A well-diversified investment portfolio will go a long way toward fighting inflation during retirement. A diverse portfolio can help offset the impact of inflation on your savings. 

Consider investing in different asset classes, such as stocks, bonds, real estate, and commodities. By spreading your investments across various sectors, you can protect yourself from inflation and ensure that even when markets are failing, your money will be somewhat safe.

Final Thoughts

Inflation is an inevitable part of the economy, and you must have a plan in place to fight this inflation during retirement. When you stay informed and know the best way to maximize your own spending power, you can protect your savings and maintain the comfortable retirement you deserve.

Wednesday, September 28, 2022

Applying for Social Security? How to Navigate the Process

Applying for social security can be a daunting task. There are many forms to fill out and documents to submit. The process can be time-consuming, but we're here to help.

In this blog post, we'll outline the steps you need to take to apply for social security. By following these steps, you can make sure that you're completing the process correctly and promptly.

Gather the Required Documents

To apply for social security, you'll need to provide proof of your identity, age, and U.S. citizenship or residency status. You'll also need proof of your work history, including W-2 forms or self-employment tax returns. 

If you served in the military, you'd need your DD-214 form as well. Be sure to have all of these documents on hand before beginning your application.

Create an Account

Create an account on the Social Security Administration's website or visit your local Social Security office to apply in person. Once you've created an account or gathered all the necessary paperwork, you're ready to begin filling out your application. 

Be sure to answer all questions truthfully and accurately. Incorrect or missing information could delay the processing of your application.

Submit Your Application and Wait for a Decision

Once you've submitted your completed application, it will be reviewed by a Social Security representative. They will determine whether or not you're eligible for benefits and how much you'll receive each month. You should receive a decision within two to three months after submitting your application.

Work With a Lawyer

If you're considering applying for social security, you may want to work with a disability lawyer. A disability lawyer can help you navigate the application process and ensure you're eligible for benefits. 

They can also help you appeal a decision if your application is denied. If you're considering applying for social security, contact a social security disability lawyer today.

Applying for social security can seem daunting, but it doesn't have to be! By following these steps and gathering all of the necessary documentation, you can ensure that you're completing the process correctly and promptly.

Monday, July 12, 2021

Will Social Security Provide You With Enough Money To Retire On

Can Social Security alone help you in your later years, or might you find yourself encountering major monetary problems? There are three factors that Social Security benefits themselves won't be adequate as your source of finances as a retired person.

1. Regular benefits are just not enough

The average Social Security check-in 2021 is $1,553.68 a month. If you collect something like this amount and your only income source is Social Security, you'll have an annual income of only $18,644.16. 

Chances are you will not have the ability to cover necessities such as housing, medical, food, and also transportation with that quantity. Even if your check is more than standard, it's not likely to be enough. 

Many people need to replace 80% to 90% of their pre-retirement income when they leave the labor force. Social Security is only supposed to replace 40% of your income, so you'll have a big revenue gap if you count on benefits alone.

2. You may need to retire before you need to apply for Social Security

For lots of people, it's optimal to claim Social Security benefits at age 70. Beginning checks at 70 gives you more money to survive monthly and allows you to optimize this inflation-protected, surefire revenue source. 

It's the best chance of optimizing lifetime benefits, enabling you to grow the amount of cash available to your making through your spouse if you were the greater income earner in your household. Yet most individuals need to retire before age 70-- or they wish to. 

If you're intending on Social Security being your only revenue resource, you would certainly have to claim your benefits soon after leaving your work. If you have savings to survive on, you can delay starting your retirement and enjoy the bonus that comes with waiting.

3. The buying power of benefits is falling

Social Security benefits are inadequate to support in your first year of retirement. And also, as you age, their buying power is most likely to fall. That's because benefits are safeguarded against the rising cost of living, given that the system uses figures and gives you periodic increases to your Social Security checks.

Cost of living adjustments (COLAs) are intended to guarantee benefits don't lose value and are calculated based on just how rates change.

Since this demographic team spends in different ways than elders, COLAS do not account for the bills retired people incur. The result has been a 30% reduction in the purchasing power of benefits over the past few years. This weakening in purchasing power will likely proceed.

There are additionally a couple of other problems that could reduce the value of benefits. First, the threshold at which Social Security benefits start to be taxed by the Internal Revenue Service isn't indexed to inflation. 

Hence, an expanding number of retirees end up losing a few of their benefits to the federal government annually. Unless legislators act, an automatic benefit cut of as high as 24% could enter into effect as soon as 2035. Changes to stop this benefit cut, such as boosting the full retirement age, might also cause a lowered benefit.

There are many reasons that Social Security can not be your sole revenue source, so do not depend on it for that. By beginning to spend for your future today, you can have higher economic security as a retiree.

Saturday, June 26, 2021

Step by Step Guide to Getting Social Security Disability Benefits

Social Security Disability benefits are designed to help you provide for yourself and your family if you cannot work due to a disability or medical condition. 

It can be hard to get approved for disability benefits. In fact, most people who apply for benefits are denied the first time. However, you can do the following to ensure that you get approved for disability benefits.

Make Sure that You Qualify

Simply having a disability is not enough to qualify for benefits. You must have a condition that interferes with your ability to walk, stand, lift or sit. Cognitive issues can also qualify you for disability.

Your condition also has to last for at least 12 months. If you have a problem that you are likely to recover from within 12 months, then you may not qualify for benefits.

Get Your Medical Records Together

You need to submit proof of disability along with your Social Security disability claims. Your medical records can prove that you are disabled. That is why you need to make sure that you make copies of everything that you submit to the Social Security Disability Administration.

Submit a Copy of Your Work History

Many people are denied Social Security disability benefits because they decide to skip this step. The reason that the Social Security Administration asks to see your work history is that they want to verify that your disability will stop you from doing your job. 

You should make sure that you include when you worked, where you worked, your job title, and your specific job duties.

Hire a Social Security Disability Attorney

Many people wait until they are denied benefits to hiring an attorney. However, it is best for you to hire an attorney before you apply for benefits. 

Your attorney can help you file a claim and make sure that you have all of the information that you need to support the claim. Your chances of getting approved for benefits will be a lot higher if you hire an attorney.

Before you apply for benefits, you will need to make sure that you have a condition that qualifies for it. You will also need to get all of your medical records together and submit a copy of your work history. Furthermore, it is a good idea for you to consult with a Social Security disability attorney.

Wednesday, May 26, 2021

What People Won't Tell You But You Need to Know About Taxes and Retirement

Whether you have only recently retired or are preparing to do so in the next few years, chances are you may not feel as confident about the years ahead as you had hoped. 

From worrying about whether you have saved enough money to hoping you don't incur a major healthcare bill, these and other issues could greatly impact how your retirement plays out. Couple these issues with taxes, and you've got a mix that will undoubtedly keep you up at night worrying about this and that. 

While you may have read plenty about taxes and retirement, here are a few things you may not have known about but should regarding your taxes and retirement.

Social Security Can be Taxed

If you are not careful once you retire in regards to your provisional income, your Social Security benefits can be taxed up to 85%. Currently, if you are an individual making over $34,000 or a couple with at least $44,000 of income, expect the government to come calling with its hand out at tax time.

Take the Larger Tax Deduction

Once you turn 65, take advantage of the largest tax deduction to which you are entitled. If you are consulting with tax attorneys prior to or following your retirement, pay close attention to the standard deduction increases for individuals and couples, which are expected to be $1,300 and $2,600 respectively.

Keep Contributing to a Roth IRA

Even though you won't be able to continue making your contributions to a traditional IRA once you are halfway between ages 70 and 71, you can still keep on making contributions to a Roth IRA

Actually, there are no age limits on this, meaning you can make contributions as long as you wish. Also, don't forget that only after-tax dollars are contributed to a Roth, with qualified distributions always being tax-free.

Choose Carefully Where You Live

Like many people who retire, you may be looking to move from your current location to perhaps a new state. If you do so, make sure the destination you select is one that is very tax-friendly to retirees

For example, nearly 15 states impose taxes on Social Security benefits, while others have high income tax rates, sales taxes, and property taxes. If you're working closely with an attorney in planning your retirement, make this part of your discussion.

Rather than be one of the many who comes to retirement with more questions than answers, start planning as soon as possible to ensure your retirement goes exactly as you expected.

Thursday, November 1, 2018

How Older Adults Can Access Their Social Security Benefits

If you work until the age of 66, you will be able to claim your full Social Security benefit for retirement. This age is subject to change, however. Individuals who were born in 1956 will need to wait until they are 66 and four months to claim their full benefit. The retirement age will continue to increase until it reaches 67 for everyone born in 1960 or later.

What Are Your Options if You Need to Claim Early?

If you start collecting social security benefits before the age to receive full benefits, you get a smaller payment. Currently, you receive 25 percent less than if you wait until full retirement age to begin collecting benefits. For most people, it makes sense to wait until you reach the full retirement age to begin collecting social security.

What if You Need to Retire Early?

It is estimated that one in every four workers will become disabled before reaching retirement age. In cases where this happens, you may qualify for disability payments. To qualify for social security disability, you must have a medical condition that will prevent you from working for at least a year, or that will result in your death. 

If you have a partial disability or a short-term health condition, you do not qualify for this benefit. You must meet the definition of disability as it is spelled out by the social security administration and be younger than the full retirement age. Certain family members of the disabled may also be able to collect disability payments.

What is the Process for Applying for Social Security Disability?

If you believe that you or a family member qualifies for social security disability, you can fill out an application online. The process to collect disability from the social security administration can be lengthy and complicated. 

It often makes sense to contact one of many social security lawyers to speed the process along. It is not uncommon to initially be rejected for disability, but for the payments to be granted on appeal.

What Happens When You Reach Full Retirement Age?

If you are still receiving disability payments when you reach full retirement age, your payments will convert to retirement benefits. When most workers retire, their social security is based on their previous 35 years earnings. 

To prevent years spent collecting disability from lowering your retirement benefit amounts, the Social Security Administration ignores the years spent collecting disability when determining your benefits.

The process of applying for social security benefits can be overwhelming and intimidating, particularly if it is happening at a time when you are already facing a health crisis. 

Having someone to help walk you through the process can provide emotional support at this critical time. Someone familiar with the process can also make sure you have the paperwork necessary to get your claim submitted properly.

Sunday, September 2, 2018

Elderly Expenses: How to Apply for Social Security

Expenses for elderly persons tend to increase the same as expenses for younger citizens. However, if you’re an elderly individual, you may be retired and living on a fixed income instead of working. This income doesn’t adjust for higher living costs. 

The social security program provides one way that you might be able to deal with rising costs and get help with your expenses. In many cases, you’ve already paid into this system all your working life.

Apply for Benefits Online

The government hosts an online portal that deals with its social security program, specifically. There are multiple pages that deal with social security depending on the specific part of the program for which you want to apply. 

You can use this page to apply for retirement benefits if you are at least 64 years and nine months old. The online process usually takes just a few minutes if you have all the information the electronic forms need.

Speak with an Attorney

A qualified legal professional may be able to help you navigate the waters of social security. This person can help you understand what the system is, how it operates, what benefits you are qualified to receive, how to sign up for the service, and how to manage your finances. 

Even if you are only thinking about signing up for benefits, it’s a good idea to talk to a professional social security attorney in the field. You may receive a consultation at no cost to you that can answer your questions and put any doubts to rest.

Know Your Eligibility Status

Parts of the social security program are based around an age requirement. However, other sections of the program can rely on additional factors for eligibility. 

You may meet certain requirements that make you a candidate for benefits under multiple sections of the program. It’s a good idea to research everything social security offers to the elderly and what other factors it uses to make any determinations. 

You don’t want to pass up any money to which you might be entitled to cover your expenses.

Send Your Forms by Post

If you do not want to deal with the online portal for social security, signing in to your account, or uploading various digital documents to the site, you can send in the appropriate forms and documentation via regular mail. 

In most cases, your local social security office will accept them and send them on if necessary. Again, a knowledgeable attorney can help you figure out which forms you need and what information the government wants from you.

These are just a few tips you can use to sign up for social security. Don’t let your expenses get the better of you when assistance is available.

Friday, March 30, 2018

Understanding Social Security: 4 Facts Everyone Should Know

Social Security was a program implemented by the U.S. Congress in 1935 to provide a steady income for older individuals and others. It has provided for millions of American since its inception and is one of the most revered programs provided by the nation’s government. 

However, Social Security has complex rules and restrictions that can be confusing. Here are some of the most basic points of the Social Security system that you should keep in mind.

Not All Employment Contributes to Social Security

If you earn wages from a company, your employer will deposit money into your Social Security account held by the government. If you are self-employed, you will have make the deposits to the government yourself. 

Unless portion of your earnings are deposited to your Social Security account, the wages will not be calculated toward your benefits.

Disability Can Qualify You to Receive Benefits

Social Security is not just a retirement program. It provides income for individuals who are unable to work because of illness or other disability. The rules regarding these cases are complex, and application for benefits can take some time complete. 

You may require an attorney experienced in social security disability benefits to help you navigate the application process.

Applying before Full Retirement Age Reduces Your Benefit

You can begin to receive Social Security benefits as early as age 62, but the amount will be less than if you had waited until full retirement age. Full retirement age is currently 66 years of age for those born between 1943 and 1954. 

If you apply at age 62, your benefit will be reduced by 25 percent. At age 63, your benefit is reduced by 20 percent. At age 64, benefits are reduced by 13.3 percent. And at age 64, benefits are reduced by 6.7 percent.

Years to Qualify for Divorced Spousal Benefits

Individuals who are at least 62 years old may receive benefits under the account of a working spouse if the working spouse has applied for their own Social Security benefits. 

However, if you are the divorced partner of a working spouse, you may receive benefits even before your spouse files for benefits, if he or she is at least 62 years of age. You must have been married to the working spouse for at least 10 years.

Social Security can be a puzzling system, with many requirements for different circumstances. The complex rules have evolved over time to cover a variety of situations that arise in modern society. 

You can find a wealth of information about Social Security benefits on the Internet, along with phone numbers that will connect you to individuals that can answer your questions. 

These resources can provide the information you need to determine whether you are eligible for benefits and the best ways to utilize these benefits for your particular needs.

Friday, May 13, 2016

Financial Advantages You Have When You’re Older

There are many people who feel anxious about getting older, and have a certain sense of panic about leaving their younger years behind them. 

There are reasonable concerns about getting older. Your physicality won’t be what it once was, and nobody likes achy joints. However, for those of us who have a few more years on our belts, society sets aside a plethora of exclusive benefits that almost make it worth it to get old. 

Aside from the maturity that comes with being a person who has lived longer, communities often offer financial benefits that are designed to make life more comfortable for the elderly, and make it easier to enjoy retirement and traveling when we’re finally ready for our golden years. 

Here are some financial advantages that you have when you’re older...

Reverse mortgages

Today’s housing market is pretty messy. Since the housing bubble burst in the 2008 stock market crash, we have seen a slow recovery and a reluctance on the part of many lenders to give out home loans, or to allow people to get second mortgages. 

This means that many people are unable to access the capital that they are putting into their home by paying their mortgage, unless they are going to straight up sell it. However, there is a specific type of maneuver that is available to people who are over the age of 62. 

This financial action is called a reverse mortgage, which allows people to access the value that they already own in their home, but without having to pay it back as long as they are alive and living in the home. This is a great way to access a good amount of capital, quickly, without having to worry about getting buried by the payments of another mortgage. 

To find out more about this process, check out this helpful 2-part series here.

Senior discounts

The average American tends to spend quite a bit of money eating out, as it consumes more or as much of people’s food budget as grocery shopping, nowadays. 

The good news for elderly folks, however, is that many restaurants and places learned the valuable lesson of respecting their elders, and decidedly offer a discount for people who have been around for over 65 years. 

Although it may only save a few dollars, here and there, senior discounts can add up to quite a pretty penny if you are the person who eats out at restaurants rather frequently. 

These discounts don’t just work for restaurants, either, though, but also are offered at many different concert venues, movie theaters, and even museums (although what person who lived during the stone ages really wants to visit a museum).

Senior tax deductions

If you know how to be savvy with keeping track of your expenditures, any person can set themselves up with nice deductions when tax season rolls around. However, this is especially true for people who are over the age of 65. 

While the standard deduction more most younger taxpayers sits at $6,300, that same number is a whopping $7,850 for senior citizens. Married couples who are over the age of 65 also get some extra deductions during tax time, with each spouse offering an extra $1,250 towards their deductions, or a full $15,100 if they are both 65 or older. 

There are also added deductions for medical expenses for citizens who are over the age of 65, as they are often in need of more medical care as they get older.

Social Security

Contrary to what many younger people believe, Social Security is not merely a tax. Social Security is a mutual fund that people pay into throughout their lives so that they can benefit from the amount that they put into it when they are ready to retire. 

At the age of 62, citizens start to pay less on Social Security payments than they did before. After the age of 66, they begin to start getting the payout of what they put into the system on a monthly basis. 

This makes Social Security notably different from a welfare program, as it is a system that is paid into and then paid out. The amounts that you get later on in life are dependent on how much you paid in, and then your payouts are adjusted for inflation and a COLA (cost of living adjustment).

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 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 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+.

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. 


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.

Thursday, July 31, 2014

Retiring on Time: Ways to Set Yourself Up for Success

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

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

Take Advantage of the Time You Have

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

Take Advantage of Your Raises

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

How Much Money Will I Need to Retire?

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

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

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

Friday, June 20, 2014

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

retirement (Photo credit: 401(K) 2013)
If you are planning on retiring soon, there is a lot to do in order to feel prepared. This includes tedious paperwork, as well as cleaning out your junk and getting your home ready. As you enter retirement, it is important to review all aspects of your life and prepare early so you can enjoy all your later years without stress. Whether you are looking for a new home, or improving your current home, make sure it is ready for your golden years. Ask yourself the following questions to decide if your home is ready.

Where is it?

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

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

How will you be spending your time?

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

How much space do you need?

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

Is it accessible?

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

Is it low maintenance?

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

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

Monday, June 2, 2014

Five Things Newly Retired People Should Consider

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

1. Staying Fit

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

2. Budget Well

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

3. Stay Involved

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

4. Final Arrangements

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

5. Prepare Your Will

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

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

Thursday, January 2, 2014

How To Make A Smooth Transition From Working To Retirement

retirement (Photo credit: 401(K) 2013)
The climb towards the top of the corporate ladder was long and winding. You have spent many years of your life working and gaining the respect of the people you work with. You have enjoyed the challenges and the rigors of your work and you have come to define your life in terms of the work that you do. Before you know it, time has flown too quickly and you are now on the cusp of starting your retirement years.

While there are many who welcome and embrace a more relaxed way of living, there are some who might feel apprehensive about starting retirement. If you are one of those who are anxious about leaving their finance jobs and other careers behind to begin another chapter in your life, there are several ways in which you can make a smooth transition from being a busy workhorse to a becoming a relaxed yet productive retired person.

Why do you need to make a smooth transition?

The question that many men and women have in their heads when they begin retirement is "Who am I now?" For the past years they have built their lives around their work, they have done the same routine, and they have built their sense of accomplishment around the feats that they have achieved in their jobs. Men and women who enter the stage of retirement should be careful about the possibility of going into depression.

Retired persons who suddenly find themselves with so much free time in their hands sometimes begin to question their purpose in life. While there are those who strive in a slower, more relaxed pace of living, you may find it quite challenging to deal with this change. You may find that you and your wife or your husband now have too much time together and you begin to irritate each other. You may begin to feel empty and powerless because of your new situation.

How do you deal with the negative aspects of entering retirement?

Slowing down from work does not mean that you have to become idle. The key is to keep on moving and to keep yourself busy with new hobbies. Have you always enjoyed cooking and baking but you never had the time to do it before because of your job? Now is the time to pick up that spatula and start whipping out a delicious dessert for the family. Have you always wanted to get into sports like running or cycling? It is never too late to pick up a new hobby or sport. There are many adult men and women out there who start living a healthier lifestyle when they reached retirement and it has done wonders for their health.

You may now realize that you have way too much time in your hands. You are not used to living without a certain structure and the change can be quite overwhelming. Now is the time for you to reach out to old friends and colleagues who you have probably ignored for the past few years because of your busy work schedule. Plan a trip with your old high school buddies. It could be a weekend of fishing down in the lake or it could be a cross-country adventure. Reconnecting with old friends is a great way for you to feel rejuvenated and to give you a renewed zest for life.

You may also want to start volunteering and becoming more active in your church or local communities. Many people who enter retirement start to have that urge to want to give something back. The best way for you to find a new sense of purpose in your life is to engage in community building activities. This is a great way for you to feel productive again, to meet new people and to be in the company of the young ones.

Yes, it is true that retiring from work can come with a lot of challenges. Embrace the journey and revel in everything positive that this new chapter in your life brings you.

Author Bio
Joshua Turner is a writer who creates informative articles in relation to business. In this article, he describes the transition from employment to retirement and aims to encourage further study with a business administration bachelor degree.

Saturday, December 21, 2013

Making a Move after Retirement

Now a day’s most of the retired people move to warm or low taxes areas like California and Belize. There are many people who ask the same questions repeatedly to themselves, should we move or not. Sometimes decision to move makes sense; however, it’s important to prepare for your retirement beforehand and move to somewhere else.

Here I have shared some tips to consider while moving to some other states or country.


If someone has decided to move after their retirement, there will be several reasons to move. The reason can be low taxes on houses, lower cost of living, small houses, less maintenance and more retirement benefits. There are many areas with a lot of benefits for retired people like Belize. They offer a wide range of benefits to people who have moved or are living in Belize after their retirement.

Some of the benefits are:

  • Free from all receipts and income taxes
  • Free from import duties
  • Free from import duties on vehicles such as motor vehicles and boats
  • Can start their own business within the Belize or outside the country

Who is eligible?

  • You must be a citizen of US, UK , Canada or Belize
  • People 45 or above are considered as retired
  • Your monthly income should be at least $2000

Other reasons may include moving to an area with a better climate or to be closer to family, and to move to a smaller house -- perhaps a one-level home or one where others maintain the house.

There can be other reasons as well for moving such as being closer to friends and family. The climate can also be an important reason to move. Crime rate is another reason, which attracts many retirees due to the safety of their families.

Save Money:

After moving you can save money by avoiding expenses like yard care, snow removal and moving up and down stairs. Your own self can handle small problems or you can get some help from the internet where you can find everything within few minutes without paying a single penny.

Whenever you decide to move, make sure to get all the required information beforehand. If there are lower taxes, you can save that money as well and increase your deposited income.

If you move to small house then you’ll have less expenses and this will help you increase your income. By saving money, you will be able to start your own venture or invest in some business.

Important Note:

Naturally, taxes should be a consideration. Some states tax only a portion of retirement benefits, and others fully exclude retirement income from tax. Certain states include a portion of Social Security benefits in the calculation of taxable income. Therefore, although the state tax rate may be lower, if a larger amount of income is taxed, then the overall tax liability may be greater in one state than another.

Every state or country has their own policies regarding the taxes. Some states had many taxes which mean you can save too much money their but some states offer no taxes for retiree. If you are earning good then you can pay those taxes without any problem but It cause if you are not earning a good amount. Therefore, you have to be careful when moving to any state or country after your retirement.

As previously mentioned, a state with a lower cost of living will be more attractive to retirees, as long as it is not offset by reduced services, such as health care and safety.

Author Bio:

Stella Fin is a professional writer; currently she is writing for Serenity Paradise Retirement in Belize which is offering Land and Lots for sale in Belize near Corozal. Find Stella Fin on Twitter, Facebook and on Google+.

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