Looking Forward: Investments, Assets and Your Retirement

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

Beginning At an Early Age

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

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

Take Advantage of Any Program Your Employer May Offer

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

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

Open an IRA

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

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

Looking Forward: Investments, Assets and Your Retirement

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

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

Beginning At an Early Age

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

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

Take Advantage of Any Program Your Employer May Offer

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

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

Open an IRA

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

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

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

Buy Life Insurance

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

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

Be Diligent

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

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

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

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

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

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

Be Diligent

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

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

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

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

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

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

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

Get Some Expert Help When Obtaining a Mortgage

Buying a house can be a very exciting time for you and your family, but trying to find ways to afford it can be stressful. It is vital to compare mortgage brokers so you will not only get the best service, but get an expert in this field. 

Great service includes putting you first; they don’t treat you as customer, but as a person. By being an expert, the mortgage broker will give you advice to help you when making critical financial decisions. 

Putting these two together, you want a mortgage broker who truly cares about you, but also has the expertise in the mortgage process. When choosing a mortgage broker, there are more things to consider such as the term, rates, and fees. 

Once you know everything, you are ready to choose a mortgage broker who will fit your lifestyle.

How to Choose a Mortgage Broker

There are many mortgage brokers out there, so the best way to choose one is through a referral. Ask any homeowner who their mortgage broker was, such as a friend, co-worker, or a family member. When asking your friend about their mortgage broker, find out about the customer service to see if they were treated fairly. 

If you want to go a little further, you can also ask your real estate agent for a referral. You don’t want to take their word for it, so ask questions about the broker’s experience, professionalism, and commitment. After talking to someone, you want to do further research by looking on their website and on any online reviews. After your research, interview a few mortgage brokers, and ask for references. 

It’s best to compare brokers, that way you can choose one that meets your needs. After this whole process is finished, you will develop a trusted relationship with your mortgage broker. 

Mortgage Broker Process

A mortgage broker is the “middle man” who works with you and a bank/mortgage lender to help you obtain a mortgage that fits your needs. A mortgage broker counsels you through the process of obtaining a mortgage and any problems that might occur, such as credit problems. 

When you meet the right broker, you will be asked to fill out an application with your financial information, which will then be put in a file that will be sent to the lender. After you finish filling out the paperwork, the mortgage broker will work with you to find the lowest rates available by looking up all the different banks/lenders. This is actually their greatest advantage. 

Once you are finished looking for a lender, the mortgage broker puts all your paperwork in a file and sends it off to the lender, who then gives you the loan. Having this type of professional makes everything much easier on you. It can be a stressful time in your life, but having this kind of help can make you treasure this milestone a bit more.

Rates

The interest rate is what the lender charges you to pay off your mortgage. There are two forms of interest rates: adjustable and fixed rates. An adjustable rate is when your interest rate will change over the course of your loan. 

When interest rates are low, adjustable rates are not the way to go because the rates are more likely to go up. The best time to have an adjustable rate is when the interest rates are high because it is more likely the interest rate will drop. A fixed rate, on the other hand, is when your interest rate stays the same each year. 

The best time to have a fixed rate is when the interest rate is low because you will have that same rate for the whole term of your loan, no matter what. Right now, a fixed rate is the best option because right now, the interest rate is low. When you meet with a mortgage broker, they will help you choose which option to have.

Term

The term is the period of time in which you are going to repay the loan. The most common terms are fifteen and thirty years. When having a fifteen-year fixed rate mortgage, the interest rate is a little lower, but the monthly payment is higher than having a thirty-year fixed rate mortgage. 

Having a fifteen-year fixed rate mortgage, you will pay off your mortgage by the time your children enter college, which is great because you will get this done sooner rather than later. When having a thirty-year fixed rate mortgage, the monthly payments are lower than fifteen years, which allows you to have extra money and invest in other things.

There are many other options to pay off your mortgage such as 10, 40, or 50. Your mortgage broker can help you determine what’s best for you.

Fees

There are two common ways that homeowners pay their mortgage broker. The most common way is through a loan origination fee. This is when your broker charges you a certain percentage, depending on your loan. 

Therefore, if you have a high loan amount, your mortgage broker will charge you a low percentage, but if you have a low loan amount, you will be charged a high percentage. If you don’t want to pay your broker this way, another common way is upfront. 

Instead of paying your mortgage broker over time, you pay them right there all at once. Homeowners who buy expensive homes go for this type of fee. There are other options, but these are the most common among homeowners.

There are many aspects to obtaining a mortgage, and these aspects can be stressful. When this happens, it is a great idea to get a mortgage broker because they will help you with this long, stressful process. 

Be sure to weigh your options when it comes to a broker, in order to find the best service possible. To secure a mortgage, know all about the rates, terms, and fees. If you experience any questions, you always have that professional there to help you with everything.

Financial Tips for Getting Through Your Retirement

You’re entering into your golden years, staring down your retirement as it looms closer and closer. For some people, retirement is a breath of fresh air, and for others, it sends them into a frenzy. 

Being prepared for your retirement can help put you at ease, so that you don't have to worry so much about your financial state. Here are a couple of tips to help you with just that. 

Calculate Your Expenses and Retirement Income

Before all else, you have to calculate how much money you're going to get from your retirement fund, how much you have saved and how much is going out every month for expenses -- for both necessities and leisure. This will give you a better idea of how financially stable the days ahead of you will be.

Travel with Your Budget in Mind

Everyone wants to travel during their retirement, and why shouldn't you be able to? You've worked all those years and now you should be able to sit back and relax. 

One way to keep your travels from eating up your retirement income and savings is to use booking sites like Hotels.com. This way, you can find the best deals on air travel, hotel rooms, as well as rental cars.

Move to a Cheaper Location

If you still live in the home your kids grew up in, it's time to downsize. Not only should you find a smaller place to live, but the location you move to should also be fairly affordable. 

Some retirees decide to relocate south of the border in Mexico, where the cost of living is very favorable, and not to mention, it's like a permanent vacation getaway!

Taking charge of your finances after you retire shouldn't be a major mystery. If you get started now, you can be prepared for your retirement when it finally comes about. 

Then to further help you with your savings, you can use Groupon Coupons to find deals on over 8,600 stores, which are updated daily.

401K Stability and How You can Plan Around Inflation

One of the most common steps most people take to prepare for retirement is to invest regularly in their 401k account. However, one of the most common concerns investors have relates to inflation and how it impacts the growth of their investments. 

If you are concerned about how inflation may impact your 401k going forward, you are wise to do so. Inflation can have a detrimental effect on value of your account, and the 401k account return needs to exceed the rate of inflation to have true net growth. Choosing the right investments is a necessity if you want to protect and grow the value of your account over time. 

Stocks

When you make wise stock selections for your 401k account, you will be taking a step to protect your account balance from the effects of inflation over any amount of years. Stock prices may be relatively volatile over a short period of time. 

However, because companies can adjust prices and expenses to compensate for inflation, this is generally a sound long-term investment to consider to protect your growth from the effects of inflation. This is particularly true when you buy stocks in companies that have a solid history of long-term growth and great growth potential. 

Do your research before you find a secure place to invest in. Once you know where the stocks will grow you will have a better chance of finding a secure retirement. Research is the key here to know where you will get the most bang for your buck.

Short-Term Maturity Bonds

If you are looking for a relatively stable investment vehicle with minimal risk, bonds are a great option. However, a fixed income asset like a bond can be significantly impacted by inflation. The best bet when investing in bonds with inflation in mind is to choose a short term bond. 

These are less impacted by inflation as well as by movements in interest rates. For those approaching retirement age, moving more funds into short-term bonds may be advantageous. Talk to your bank or financial counselor to see what your options are and what will be best in your situation.

Real Estate

There are different ways to invest in real estate through your 401k account. For example, REITs, and stocks in large real estate investment firms provide you with some options. Real estate is largely seen as one of the best investments to make as a hedge against inflation. The value of the best real estate investments typically rise with the rate of inflation. 

Of course, the housing market is cyclical and has its ups and downs. As a long-term investment, however, this is a sound investment to make. It’s best to talk to a professional about where you can get involved and how you can invest in your own property. A company like the Jakob Pek Fund will know the best ways to direct you through real estate investments you decide to make.

Don’t Forget Savings

It’s also important to invest in some regular savings accounts. Whether it’s your emergency fund or just savings account at the bank you should always have some backups in mind to keep money safe for whatever retirement throws your way.

Understanding how inflation affects investment vehicles is necessary when your goal is to minimize the impact of inflation on your retirement account value. By learning about the best investments to make to safeguard your account against inflation, you can create a diversified portfolio with long-term growth in mind. You can have more in your retirement fund than you ever thought possible if you know where to place your money.