Investing Your Money Wisely Before Retirement: 5 Things You Need to Know

Retirement might seem far away, but it is never too early to start saving to give yourself financial security when you leave the workforce. It pays to learn about investing before you blindly take a leap of faith that could crumble your financial stability. Take the following steps to ensure that you know where your money is going and how it will change over time. 

Understand the Investment Market

You aren’t going to have a good return on your investments if you don’t understand them. It is best to have a diversified portfolio, which in simple terms designates how much money you should be putting in stocks or bonds. This process involves looking at the returns and risk of investing in a specific plan. Keep in mind that your retirement portfolio extends over your life, and you will experience some years with better returns than others. 

Make Trade Offs

Making safe investments guarantees that you will get a return but at a lower rate than high-risk investments. A decent retirement portfolio consists of some safe investments, some that are riskier and make income and others that are designed for long-term gains 10 or 15 years down the road. 

Seek Expert Advice

A professional can help you decide where you should and shouldn’t invest your money. Professionals know how the investment market works and can tailor a portfolio that meets your needs without being too conservative or risky for your tastes. It also helps to read books, interview financial advisors or take a class on investing. 

Avoid Making Mistakes

Don’t get greedy or careless with your investments. An investment opportunity with above-average returns should set off red flags that something might not be right, since above-average returns are not possible for long, extended periods of time. Don’t allow yourself to get involved with a fraud or Ponzi scheme that could potentially eliminate your retirement investments and make it difficult to pay on the mortgage you might get from LowVARates.com.

Plan Ahead

Avoid jumping into the first investment opportunity that you see. Investing takes careful time and planning to get the most benefit from it. Focus on how much you will be able to earn on a monthly basis instead of putting all your energy into trying to get the highest return as quick as possible so you can make payments on your bills, such as a mortgage from www.lowvarates.com. The money needs to last for your lifetime, and the importance of retirement income should not be taken lightly.

5 Of The Best Senior-Friendly States To Spend Retirement

When seniors reach retirement, it's often a time to reassess their lifestyle and consider moving to a new location where the weather is warmer and the activities available are plentiful. They may want to reside in communities that have other seniors and in an area that is relaxing with a slower pace of life. Fortunately, there are several states that welcome retirees and offer a picturesque setting for retirement.

1. Arizona

Arizona offers a warm, but comfortable environment for many seniors and even has a lower cost on housing as the average home is $250,000. Between The Grand Canyon and quaint cities that include Prescott and Scottsdale, there's a rich history to the state that is ready to be explored and easy to call home.

2. Florida

There's a reason that Florida is considered the most popular state to find seniors enjoying life and retiring. Florida has plenty of historic communities and beautiful architecture with both coastal living and urban areas. The warm weather makes it comfortable to reside in the state, without taxes on personal income, property, inheritance, and gifts.

3. Utah

With low crime rates and incredible scenery, Utah is home to many seniors for its beautiful weather and plentiful amount of communities for retired adults to be a part of. The weather rarely drops below 60 degrees with over 300 days of sun to enjoy. The different mountains provide a stunning backdrop to the quaint towns and low-key environment. It's also known as a state with plenty of friendly people and plenty of nature to explore.

4. Idaho

For retirees who enjoy the great outdoors without much rain or humidity, Idaho is an ideal state to settle down in. The cost of living varies throughout the state in different communities, but accommodates different lifestyles and is affordable for those on disability retirement. The property and state income taxes are moderate with a six percent sales tax. It also is one of the cheapest states to live in with the median home at $183,000.

5. Virginia

The cost of living is substantially lower in Virginia than its neighboring states, making it an ideal place to settle down for those on a fixed income and living off of savings or social security. The state is attractive for seniors due to its warmer weather and one of the lowest crime rates in the country

How Bad Habits Affect Your Wallet

Slim is in, but not when it comes to your wallet. A few dollars dropped here and there on bad habits, over time, can add up to the cost of a new car or a luxurious vacation. How much are your bad habits costing you?

Overspending

By nature we love to reward ourselves with things. Even if we are always getting "bargains," that sort of unnecessary spending adds up to about $1,200 a year, according to bankrate.com. If you saved that in an interest-yielding account, it would add up to nearly $95,000 over 30 years.

Another culprit when it comes to overspending is the lottery. Businessinsider.com said, "Assuming the average return on a $1 ticket is 47 cents, buying a dollar ticket every day for 60 years will set you back $11,600." 

Bad Eating Habits

Medical expenses, and life and health insurance costs are much higher for obese people than for non-obese people. A statistic from a study by GWU researchers says that the cost of being obese is $2,646 for men, and $4,879 for women annually.

It isn't just obesity itself that has a high price. For example, the same businessinsider.com article quoted above said that you can save up to $6 a day by packing your own lunch to take to work instead of buying.

Drinking Alcohol

Those who drink regularly face a yearly cost of about $1,560, and that is at a rate of only five drinks per week at $6 per drink. Binge drinkers, and those who get caught drunk behind the wheel face expenses even higher.

The social stigma that comes with being an alcoholic goes hand-in-hand with the cost to your health and to your overall quality of life. That is why alcohol rehab centers in Florida, and throughout the United States aim to help people conquer this costly habit. 

Smoking

Cigarettes get a bad rap, and rightly so. Not only do they destroy your health, they also hit your wallet hard. Bankrate.com says, "for a woman,the all-inclusive cost of smoking over a lifetime is $106,000; for a man, $220,000."

Cigarettes aren't the only smoke that comes with a big cost. According to businessinsider.com, smoking a $10 marijuana joint every day will add up to $219,000 over the course of 60 years.

Procrastination

When you procrastinate, you do more than give your relatives a reason to complain about why that anniversary card you sent them was six weeks late. Waiting to sign up for a 401(k), not cancelling that unused gym membership as soon as possible, or holding onto those grocery coupons until they expire all impact your wallet negatively. The total yearly cost of that type of procrastination is about $600.

It's a good idea to sign up for automatic bill payment for your credit cards. A monthly, $25 late payment is $25 dollars that you could have saved, or used to take your spouse to a movie.

How much money have bad habits already taken from you, and how much more money are you going to let them suck away? The answer is up to you.

5 Reasons You Should Have Credit Building Prepaid Cards

Prepaid Cards are issued against your own deposits with the concerned financial institutions that facilitate the same. A certain amount needs to be deposited for entitlement of a credit card and you spend as much as you deposit. Prepaid cards help you to build your credibility amongst others. Their unique features make them popular and increase their demand amongst large section of people across the globe that prefers this unique mode over other methods.

Enhance trustworthiness

Credit building credit cards are a good source to increase your credibility amongst the banking institutions, your friends and the vendors. Such cards do not permit more amount than the one deposited by you. So you are not in a position to release payments more than that. As you remain within your limits, only the genuine expenses will be made by you and you won’t go in for overspending that result in the enhancement of your credibility amongst others.

Avoid extravagance

As aforesaid, the credit cards are provided against your deposits by the financial companies. You can withdraw or purchase within the deposit limits of your credit cards that do not allow you to spend more than that. This way you save from making any additional expenses and ensure a secured amount with you. However, if there is no limit upon your spending through the credit cards and you are allowed to withdraw more amount than that of your deposits, you may spend more.

Easily available

Since the credit building credit cards are issued against your own deposits, the banking institutions provide with a smile without any much formality. You are not required to submit any salary proofs or fulfil additional documentation for issuance of such cards. In fact, the companies engaged in this business are happy to do the same because they get deposits for a considerable time against which they don’t pay much interest to you. As such, they don’t ask much about your credentials or credit history. Just make the deposits and be a proud owner of such credit building credit cards.

Convenience and security

The credit building prepaid cards are easy to carry. Just put them in your pocket and carry them anywhere you are going. While receiving such cards, you are issued a personal code for withdrawals or making payments for your bills. This way you save from any duping or deceit by the unscrupulous persons who often intend to rob you through their dishonest actions.

No extra charges

Since it is your own money that you withdraw or spend against your deposits through the credit building prepaid cards, the institutions that issue the same don’t charge anything for their valuable services. Thus you are saved from the banking charges through such prepaid cards whereas the other modes of payments may require you to pay the requisite charges. Some banking institutions do charge against their other services to the customers whereas no such charges are applicable in respect of the credit building prepaid cards that are released against the customers’ own deposits.