Six Ways You Can Save Money By Building Your Own Home

If you have a dream home in mind, why not take the project into your own hands? Not only is this option ideal for overly meticulous homeowners, but it can also a money-saving solution. Building your own home from the ground up can save tremendous amounts of cash that can later be used to purchase other necessities for the new abode like furniture and appliances. 

Avoiding Overhead Costs

An apparent way you save money from building your own home is you remove a third-party contractor. A typical rate charged by contractors range from 18 to 20 percent of the total expenses of construction and land. Furthermore, realtor fees can add 5 to 7 percent on your bill, depending on the total price of the house. By building your own home, you can easily cut the expenses by 30 percent. 

Exactly How You Want It

The only person who knows what you want is you. Sometimes, contractors are simply unable to make your home the way you want it to look inside out. When this happens, remodeling is usually necessary to alter the details. This leads to more costs for additional materials and labor work. Instead of a general contractor, you can hire professionals who specialize in certain areas that will work to make your home exactly the way you envisioned. 

Choice of Materials

Some contractors tend to use unnecessarily expensive brands for paint, wood, concrete, etc. Even worse, they can skimp on quality material to save a few bucks, meaning more repairs and replacements for you down the road. For example, for roofing, choose a company that offers quality material so you won't have leaks or problems in the future. Professionals can take care of the hard work for you, making it cost-effective for years to come.

Learn New Skills

If you stumble on something you don't know, you will likely learn the skill and eventually master it. This can save you money later on when similar problems occur, such as a leaking pipeline or replacing a filter. You can also save a ton of money when you complete do-it-yourself projects around the home, instead of hiring a professional to take care of the task each time. Who knows, you can even sell your newly found skills to neighbors who need help with their home's inner workings.

Energy Efficient

Being the contractor of your own housing project gives you the power to choose what appliances you'll be integrating into the structure. You can get long-term savings by using appliances with the Energy Star seal, which is a symbol of high energy efficiency standards. From windows and doors to kitchen appliances and energy-efficient washers or dryers, there many ways you can save money. Having these things will greatly reduce or utility bills. Aside from saving you money, you get to do your part in saving the environment as well. 

At Your Own Pace

If you have lots of time but are riding on a tight budget, you can choose to gradually build your home as you make the money for it. You can avoid steep interest rates on mortgages while seeing your hard earned investment slowly turn into your dream house. Things like the basement are a great place to remodel or finish at a later time. You can also add on rooms or bathrooms in the future when you find more need for them.

While building your own home has it's own unique costs, in the end, it can be a cheaper option for many. With these tips in mind, you can have the home of your dreams without putting a huge dent in your wallet.

Informational credit to Century Roofing Ltd.

Dealing with a Pension Divorce

 (Photo credit: Wikipedia)

Divorce rates have risen considerably for the over-50 demographic. In the US, for example, the rate at least doubled between 1990 and 2009. In fact, the number of divorcees over the age of 50 now exceeds the number of widowed seniors in the US. Likewise, in the UK, divorce rates for those over 60 years of age are now seven times higher than they were in the 1950s.

While statistics show that the likelihood of a couple getting divorced decreases the longer they are married, we are still seeing a spike in the number of pension-aged couples looking to split. In fact, the New York Times recently reported that divorces in the over-50 category have outpaced those of younger demographics.

Any time a marriage ends, a variety of problems come into play. The following are just a few of the most common:

• Economic strain
• Poor health
• Strain on the extended family
• The need for government sponsored assistance

When younger couples get divorced, the stakes are generally lower. For example, married couples around the age of 30 are less likely to have children or substantial assets that need to be divided. Pensioners, on the other hand, have a lifetime of property and assets to contend with – not to mention an extended family that has only ever conceived of the couple as a unit.

However, one financial consideration that deserves more attention than it receives has to do with the pension itself. You see, getting a divorce can actually affect the amount of your pension. And it’s not as if the amount is simply cut in half and divided amongst the two. The actual algorithm employed is much more complicated, which makes it all the more important to seek the advice of family law solicitors before going through with the divorce. At the very minimum, both parties need to understand how this dramatic change is going to affect their finances.

Generally speaking, there are three common ways to deal with a pension in divorce:

1. Pension Off-Setting

In this situation, the pension is drawn entirely by one person (who is, more often than not, the husband). In its place, the financial equivalent to sum total of the pension is given to the other party in the form of cash, property and other assets.

This is often a more attractive option when one person has been the primary income earner for the family. In this case, the person may feel like their pension is a direct extension of their professional performance. It is a personal asset that results from years of hard work. With that in mind, splitting the pension after a divorce may make the person feel uncomfortable. 

2. Pension Splitting

This is precisely what it sounds like. The pension is simply divided evenly between the two people when the divorce is finalised. There are usually a couple of options in this scenario. Half of the pension can be withdrawn and deposited into a different scheme. Likewise, the entire sum could remain in the original scheme and simply be paid out in halves to both parties over time. This is usually only an option where government agencies have introduced specific legislation. 

3. Pension Earmarking

This is a less common approach to settling the pension. In this case, a portion of the pension is legally attached to spouse. When he or she retires, this portion will be paid as a pension benefit.

Valuing Your Pension before Divorce

If a divorce is on the horizon, it is essential that the couple arrange a pension valuation. This ensures that both parties understand exactly how much they are going to receive form a split pension in the future. This is complicated business, and you will almost certainly require legal assistance to effectively determine this.

Valuing a pension is going to cost a bit of money up front, but it is most certainly worth the expense – especially if the size of the pension is going to play a critical role in one or both person’s quality of life after the divorce.

Divorce is painful and rarely easy, and the difficulty in divvying up a pension only adds to the stress and anxiety. That’s why it’s so important to fully discuss your options with an attorney before going through with the split.

How to Ensure Financial Security After a Car Accident

When you have been in a car accident, you could be injured badly. You may be out of work for some time, or you may have to make expensive repairs to your car or perhaps the other party’s vehicle. All the items below will help you ensure that you are financially secure after the accident.

Insurance

You need car insurance to help repair your vehicle. Your car insurance will also help repair the car of the person you hit if you are at fault. You will have to pay for these repairs out of your own pocket when you do not have insurance. Chances are you will face major financial debt or even bankruptcy if you do not have insurance. You could also face a lawsuit especially if the accident is your fault.

Also, according to Anthony Clark Insurance Ltd., insurance will help you pay to replace your personal items. You can have an allowance through your car insurance that will pay for things that were damaged or lost in the accident. 

Civil Claims

You can make a claim in civil court if you feel that you were injured through no fault of your own. The civil claim could lead to a judgment or settlement that will pay you for your pain and suffering. If you have not explored this option, you could be leaving money on the table. However, beware of pursuing a lawsuit. If the other part feels that you were at fault of the accident, they can file a counter claim and attempt to sue you for their pain and suffering. They can also do this even if they are at fault for the accident as long as they have a credible claim that you were also negligent during the accident as well. 

Gap Insurance

There is another type of insurance that you need to have if you want to be financially stable after an accident. Gap insurance helps to pay for the difference between when you owe on a car and what the car is actually worth. You may owe $15,000 on a car, but your insurance may call the car a total loss at $13,000. The gap insurance will pay for the extra $2000 that you would have to keep paying for a car that you have lost in an accident.

Disability Insurance

Disability insurance will help pay your salary while you are out of work. You may never use your disability insurance, but you must pay the premiums to make sure that you are protected at all times. Most people get short term disability which lasts for 30 days, but they also need long term disability that will last up to six months. If you do not have disability coverage, you will lose all the salary you could make at work during the duration of your injury or disability. 

You also may have other expenses that will need to be covered as well. Medical bills are often very expensive and can be crippling financially without the help of disability insurance to take care of you and any loved one that may be involved. The last thing anyone wants while they are on disability is to have to worry about any financial problems or mishaps. Having the necessary insurance to help you out during this time will only lessen the burden and stress that has already been laid on your shoulders after suffering an accident.

When you are involved in an automobile accident, you need to make sure that you have covered all the items above. Each one helps you to remain financially stable even though you have lost your car, are injured and may be out of work.

If I Fall Behind on my Health Insurance Premiums What Happens?

If you’re having financial difficulties it may be that you’re in danger of falling behind on your health insurance premiums. This can obviously be a worrying time for you but it needn't be major problem unless you let it.

The most important thing to note is that you should always take out a plan that you feel as though you can keep up with. That way you can avoid many problems. But many of us have unexpected changes in our lives that mean are financial circumstances are different. There is always a chance you will experience difficulties in paying your premiums, but finding an affordable plan at the outset is still the best option. Keep reading at the HBF health insurance site, where you can learn more about the coverage available & ask questions relevant to your situation.

Can I get help with health insurance from the outset?

If you’re looking at the health insurance marketplace you’ll be able to view a lot of different plans with different provisions and costs. You will probably be able to find a plan that is suitable for your budget. However, there are tax credits available if you are really struggling to afford your health insurance.

You have access to these tax credits straight away and they are intended to take some of the pressure off you financially by enabling you to afford a health insurance plan. You don’t have to buy a plan through the marketplace but it does give you a wide range of choice and it does give you the option of applying for tax credit help. 

If I experience problems after purchase what happens if I miss payments?

If you get a plan that you can afford then hopefully you won’t have any difficulties but life doesn’t always work that way. We have all experienced unexpected events in our life and one of these may lead to you having problems with continuing to pay your premiums.

There are rules that apply under the Affordable Care Act to allow for issues that people may have meeting payment requirements. The one thing you should always remember is to let your insurer know as soon as you are aware that you will be having difficulties; there is no point trying to hide the issue as this will not help. The rules of the Affordable Care Act mean that you have three months within which to catch up with payments you have missed.

Of course this doesn’t mean you should take the whole three months, the sooner you can get back on track with your payments the better. There‘s a very good reason for this as your insurer will only accept claims from you for thirty days after you miss a payment. If you don’t catch up by this time you stand the chance of being faced with a large bill if you have the misfortune of falling ill.

This isn’t going to help you financially and may lead to you missing further premium payments. This is a potentially serious situation as if you don’t pay all of the premiums due by the end of the three months your insurance will be cancelled.

5 Tips to Pay Your Mortgage Off Fast

For many people, the biggest financial commitment they will ever make is the mortgage on their home. Most of the time, that commitment lasts for 25 years, but many of us

just aren’t comfortable taking it that far. Not only are you in debt for a quarter century, but the interest you pay along the way is ridiculous.

And so, strategies and plans to pay off mortgages fast and avoid these pitfalls were born, and scores of homeowners have benefited. Here are 5 tips that can help get your mortgage out of the way a lot faster than normal.

1. Accelerated Bi-weekly

It stands to reason that paying off your mortgage is all about making the payments, and the difference between monthly and accelerated bi-weekly payments can make a big difference. With monthly payments, you’ll make 12 payments per year, and on the accelerated bi-weekly plan you’ll make 26 payments.

The exact numbers will vary depending on the amount of your mortgage, the amortization and interest rate, but by switching it isn’t unusual to shave a few years off the amortization and up to $20,000 off the amount of interest you pay.

2. Don’t Get Too Comfortable

It’s easy to sit back and get comfortable after you have set up all the details of your mortgage, but that isn’t always a good idea if paying it off early is your goal. This is especially true if the mortgage payment is an automatic withdrawal, because you don’t even have to think about it.

Even if you are in a fixed-rate term, if the rates have dropped significantly, you might be able to save thousands and shorten your amortization even with the penalty you have to pay for breaking the mortgage. Of course, the only way to know this is to stay informed and pay attention to what is going on “out there” in the mortgage world.

3. Boost Payments Whenever Possible

If you anticipate times during your life where you’ll have extra money, or even if you don’t, arrange your mortgage so you can make payments that come off the principal, whenever you like. This might refer to bonuses at work, inheritances, or even increasing your average payments when you get raises at work.

Whenever you get your hands on money that you weren’t expecting, dumping it into your mortgage won’t affect your budget because you weren’t expecting it anyway. Tax refunds and lottery winnings are some other sources or money you probably hadn’t factored into your budget. You certainly don’t have to put every cent you get on the mortgage, but adding different amounts over the course of the loan can make a big difference in the amount you spend and how quickly you pay it off. 

4. Take Advantage of Pre-Payments

Pre-payment privileges are another opportunity to make a lump sum payment and knock a few years off your amortization period. Depending on how much you have available and how much you’re willing to give, you could end up saving the price of a brand new car just in interest. Not to mention, the mortgage-burning ceremony will be sooner. Ask about this option when you are working out your mortgage details, to see if it’s one that applies to you. Even a relatively small sum can make a difference.

5. Knock Some Off at Renewal Time

If you have a 25-year amortization period like so many other homeowners, you will encounter several renewal times during the course of the mortgage. If you saved your money and made a lump sum payment before you renewed the term every five years, you could own the house several years sooner and save yourself thousands in interest, too.

Owning a house is a huge deal for most people, and even though you might feel like you have no choice but to accept whatever terms are laid in front of you, that isn’t always true. You can negotiate and you can shop around and you can knock years off the amount of time it takes for you to own the home outright.

It’s important to keep in mind that lenders all have competition, and even though they seem intimidating and have the power of yes or no over you, they still rely on the business of people like you to survive. If you pass the basic criteria and you know that you qualify for a mortgage, consider some of the above tips when thinking of ways to knock time off your mortgage rate. Not every method is right for every homeowner, but with some creative thinking and some sacrifice, you’ll find one that’s right for you.

Venetia Rose has been a freelance writer and blogger. She loves to share and keep herself updated with the latest tips in mortgage and financial consulting. Her interests are cooking, photography, craft and painting. Follow her on Face book https://www.facebook.com/laksh.venetia

6 Things to Budget for Now If You Plan to Retire

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

1. Long-term care costs

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

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

2. Medical emergencies

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

3. Debt resolution.

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

4. Day-to-day costs

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

5. Property taxes

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

6. Insurance policies

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

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

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

How to Make Money with a Garage Sale

If you are looking for a great way to get rid of household clutter, a garage sale can be just the ticket to turn your junk into cash. Easy to plan and manage, garage sales are a great way to clear out all of your old belongings and regain your precious storage space. Also if you are planning to build a new garage, conducting a garage sale will help you get rid of the unnecessary items. To get started planning your garage sale, follow these simple steps:

1. Gather items to sell:

Go through the boxes in your attic, shed, closet, and garage to select items you wish to sell. Then, walk room to room through your home and identify items you no longer need or use. Many people have trouble parting with items even when they are not being used. If you belongings have not been used for over a year, chances are you will not miss them.

2. Inventory your belongings:

Many homeowners skip this step but it can be extremely helpful on the day of the garage sale in case price tags get lost. It can be hard to come up with a fair price on the spur of the moment under pressure but an inventory will help. 

3. Label each item or box of items:

Attach a brightly colored label with the price to each item. For similar items you can save time by putting them into a box together and labelling the box but be sure to include the boxes and their contents on your inventory sheet. 

4. Review your inventory and assign prices:

If you have items you simply wish to get rid of, price them accordingly. After all, you don’t want to end up backing them back into storage if you try to get too much money for them. For more valuable items, it is common to charge about ¼ of what you paid or less. You may wish to make exceptions to this rule for certain items that are practically new or any valuable antiques but keep in mind that garage sale shoppers are looking for a bargain. 

5. Obtain a permit if required:

Some city’s may place restrictions on things like the placement of signage, hours of operation, or frequency of garage sales so be sure to check local regulations. 

6. Set a date and advertise:

Two-day garage sales are often the most successful and summer weekends are the best time to have them. Advertise before you sale in the local paper, free weekly community papers, and online resources like Craigslist. Be sure to mention any big ticket items you have for sale. Make and hang signs around your neighborhood. Include times and location of the big sale. 

7. Tidy up:

Garage sale shoppers are more likely to buy if it looks like the merchandise is from a home with owners that take care of their belongings. They are also more likely to feel comfortable stopping to browse if the sale space is clean and attractive. So make sure that the sale is put up in a well organized and clean garage space.

Finally, before you set up for the day, go to the bank and get some rolls of change and smaller bills. Keep in mind that many people who wish to buy from you will probably have 20 dollar bills and will require a fair bit of change.

Author Bio:

Anne Flemings loves interior designing and is always in pursuit of the latest changes and trends in home improvement. Her other interests lies in cooking, painting and blogging. She is an enthusiast homemaker who lives in Toronto with her husband and two kids. You can follow her on twitter @AnneFlemings



Image Source: www.shutterstock.com

How Bankruptcy Can Help You Survive Financially

There's a bankruptcy myth floating around that says most Americans who file for bankruptcy do so because they lived a lavish lifestyle and spent beyond their means. However, according to a 2013 CNBC report, more than half of all bankruptcies are initiated due to medical bills. The stereotype of people filing for bankruptcy because they spent too much and got in over their heads with credit cards no longer applies in today's economy. Here are some of the ways bankruptcy can help those who face debts they're unable to pay:

Debt discharge

The most evident advantage of filing for bankruptcy is that it forgives many forms of debt, including credit cards and medical bills. This means you're no longer responsible for paying them, giving you a clean slate. Giving yourself a clean slate will allow you to get your personal finances in order and under control. This should help you reduce any stress you have over your money as well as any family stress that might be present. Then finally the day that you make it out of debt, you may find yourself with an overwhelming sense of freedom.

Debt reorganization

There are several types of bankruptcy, and not all of them wipe away debt. If you file for Chapter 13, your debts can be reorganized and consolidated into a more manageable solution for repayment. Though this may not be as good as getting your debt completely forgiven, it will still allow you to get your finances in order in order to pay off your remaining debts. Think of it as a long-term strategy to getting yourself to be debt free and out of bankruptcy within a certain period of time. 

End collection harassment

Creditors are probably the worst part of being in debt. However, if you have to file for bankruptcy, one of the most immediate advantages of bankruptcy is that the court will issue an 'automatic stay,' which legally blocks menacing creditor and collection agency phone calls and letters that rob you of peace of mind. Being in bankruptcy and massive amounts of debt is horrible and you feel horrible. It creates tremendous stress on you and anyone that might be around you. Peace of mind is important while you are trying to recover financially. The last thing you will need is harassment from those mangy creditors even if it is their job to come after for the debts you owe.

Stop foreclosure and repossessions

A common misconception is that you will lose all of your property when filing for bankruptcy. However, there are federal and state bankruptcy exemptions that allow you to retain your house and even personal property such as jewelry. Bankruptcy consulting firms are a rich resource regarding bankruptcy laws. Consulting firm like Exelby & Partners Ltd. can assist you with the bankruptcy process and help you retain as much personal property as possible.

Stop wage garnishments

Some forms of bankruptcy can even put an end to wage garnishments. Again, a bankruptcy firm will know how to legally stop such a garnishment.

Financial advisor Suze Orman gives the following advice about filing for bankruptcy: "When somebody really doesn't have money to pay their bills then they should claim bankruptcy and face it right on and start all over again." In fact, in a recent interview with Oprah Winfrey, Orman concluded, "You just need to know that your credit will eventually recover, and it's not that big a deal." The various bankruptcy options available are an effective means of assisting those who struggle with debt and often are unable just to meet everyday expenses.

How Bankruptcy Affects Your Credit Score

If you are facing bankruptcy, you’ve probably already realized that your credit score is going to take some damage. You now want to know the hit your credit score will take, how long it will take to recover from bankruptcy, and how to find someone to help you through the process. How far your credit will plunge is entirely dependent on where your credit score is at when you file. After bankruptcy, most credit scores end up in the 520-540 range regardless of where your credit began, so your score will fall much farther if you start with a score of 720 than it would if you’re starting at 600. 

Not All Bankruptcies Are Created Equal

When it’s time to file for bankruptcy, you need to decide if you will file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy, sometimes referred to as a “straight bankruptcy,” offers a clean slate and a fresh start. But it comes at a high cost—your assets are liquidated and used to pay off as much of your debt as possible, and it stays on your credit report for ten years. If you have a large number of personal assets, this may not be your best option. 

According to a financial advisor specializing in bankruptcy in Utah, Chapter 13 bankruptcy is for those who have property they wish to keep. It reorganizes your debt and helps you create a plan to pay off your debt over a period of three to five years. With Chapter 13 bankruptcy, your assets and property will be left alone, for the most part, making this option more popular with homeowners than Chapter 7. At the end of a period of time determined by the terms of the Chapter 13 bankruptcy, the remaining debts are forgiven. 

Seeking Help from a Professional

Filing for bankruptcy isn’t the sort of thing you should try to do alone, and it may not be the right decision at all for you. The most important first step you can take is to schedule a financial consultation with a good bankruptcy lawyer, whose job it is to educate you and help you make the best decisions possible regarding your financial future. A bankruptcy lawyer can assist you in understanding the consequences of bankruptcy, assessing your alternatives and reaching an informed conclusion as to how to manage your financial situation from there on out. 

Your financial situation now could very well influence the rest of your life, so it’s of the utmost importance to gain as much education as possible on how bankruptcy will change that situation before moving forward. Our government has laws in place to protect those who file for bankruptcy, but trying to navigate them on your own can be nearly impossible. An experienced bankruptcy lawyer can help you make sense of the legal and financial jargon, getting you the best deal possible when it comes to the terms of your bankruptcy.

A bankruptcy lawyer may also be able to coach you through preserving some of your credit during the course of your filing and subsequent bankruptcy period. These professionals often have experience with money management techniques and debt relief strategies—use this experience to your benefit by inquiring about strategies you can use to quickly rebuild your credit after declaring bankruptcy.

Filing for bankruptcy can be a scary, but necessary, decision you have to make to ensure a better financial future for yourself. Your damaged credit will not last forever, and in time you will be able to rebuild your score. You are taking a fresh step to a brighter financial future.

Retirement Fun: What to Spend that Leftover Cash On

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

Vacation Time

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

Learn a Little

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

Home Renovations

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

New Adventures

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

Become a Collector

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

Invest in Family

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

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

Tax and Pension Related Challenges for UK Seniors

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

Misunderstanding how pensions are taxed

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

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

Finding the Right Forms

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

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

Missing out on special credits and benefits

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

These are a few common benefits that are often overlooked:

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

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

Mishandling your annuity

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

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

Counting on your pension before you qualify

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

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