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).

5 Things to Know Before Investing in a Small Business

With the economy steadily recovering after the great recession, small businesses are experiencing a renaissance. While that's great for innovation, it can also be difficult to weed out the good business opportunities from the bad ones. 

With that in mind, this guide is designed to help new investors figure out what the most important factors are in making a business decision. 

Is the Business Idea Sustainable?

With the app craze currently taking Silicon Valley by storm, it's easy to get caught up in trend markets. Unfortunately, trends disappear as quickly as they come, and it can be difficult for a business to establish itself in time to truly capitalize on them. 

If you're considering investing in such a market, it might be a good idea to look at comparable businesses and see how long it took for them to establish themselves. 

Research the Structure

It's no secret that small businesses can be a risky prospect for investors. The Small Business Administration estimates that roughly fifty percent of all new small businesses fail within their first year. 

While investing early can certainly be rewarding, it also pays to understand exactly how the business plans to turn a profit. Going back to the restaurant example, if you plan to invest in a friend or relative's restaurant idea, make sure you've taken the necessary legal steps to make any deal official. 

Social bonds may be strong, but a legally binding contract is even stronger. 

Returns

Assuming the business is successful, when will you see returns? Investors that have a specific amount of time in mind before they expect to be paid should consider investing via a loan instead. 

Know the Operating Costs

One of the most important factors to consider when investing in a business is how much money it costs to maintain on a daily basis. For small businesses that are just starting out, it's also important to consider how money is being spent to establish the brand. 

For example, if a restaurant is spending money on extravagant furniture and furnishings, instead of cutting costs through suppliers like Budget Restaurant Supply, this should be a red flag for investors. 

Exit Strategy

Even if the business is successful, it's not uncommon for investors to have to wait several years before they can start seeing a return on their investment. 

Not only should an investor have an official exit strategy laid out in their investment, they should also expect to not see any kind of reliable returns for at least five years. If that's too long, then it might be best to consider holding off on the investment.

While this is by no means an exhaustive list of everything an investor should consider, it should serve as an effective baseline from which to study additional details further. 

With these five tips, you should be familiar with some of the most common failures of novice investors, and be able to tell the difference between a good prospective startup and a bad one.

The Best Mother’s Day Freebies and Deals for 2016

Mothers Day is just a few days away. So as to celebrate mom restaurants are offering discounts and specials to show mom just how much she is loved.

We already know mom is the real deal on Mother’s Day (and every day). Restaurants and other venues do, too. And that’s why every year they fire up bargains for you to share with the moms in your life.

Here’s what we found so far. More freebies and deals will be announced as we edge closer to Mother’s Day, which is May 8 (yes, it is earlier than last year). As always, we caution to check with your restaurant of choice to make sure it is participating in the Mother’s Day deal this year. We’ll update this list as the week progresses.

Beef ‘O’ Brady’s, the nationwide chain of sports pubs, is offering moms a free Mother’s Day meal with the purchase of a meal of equal or greater value. Dine-in only.

Eat at a Bob Evans on Mother’s Day and moms will score a voucher for free coffee that’s good for up to four visits.

Chicken Salad Chick, the Alabama chain with 52 restaurants mostly in the South, launches Mother's Day weekend Friday with a free scoop of its signature Classic Carol chicken salad to all moms.

Fogo de Chao is offering moms who dine at one of its Brazilian steakhouses on Mother’s Day a dining card good for a complimentary lunch or dinner on her next visit.

Hurricane Grill & Wings is giving away free dessert to moms on Mother’s Day with the purchase of an entrée.

McCormick & Schmick’s restaurants are once again honoring moms with a free chocolate-covered strawberry with brunch on Mother’s Day.

Dine at Spaghetti Warehouse on Mother’s Day and mom will receive a free lasagna or spaghetti dish on her next visit.

5 Ways to Make Your Money Work for You

In an individual’s life, it’s important to utilize money to work to your benefit. It can make things easier in the long term and help in living a more content life. We will talk about 5 ways you can make your money work for you, from investing, to saving and yes, even to using credit cards.

Utilize Credit Cards with Useful Rewards Programs

Sure, financial advice is usually anti-credit cards, but done correctly, they can offer benefits. 

Sign up for one that provides you with rewards that are of interest to you, such as airline miles if you are an avid traveler, and then pay some of your monthly bills/expenses with the card. You must pay off your balance every month, though, for this strategy to work.

Don’t Give up Free Retirement Money

If you are employed by a company that matches a portion of what you contribute to your 401(k), you should at minimum contribute up to the maximum amount they match. That match is essentially free money. 

Or think of it another way, if your company matches ½ of what you contribute, that’s an immediate 50% return on your regular contributions, which blows away the average market returns.

Invest

Put some recurring money into the markets. You don’t even need to study the stock market to have success over the long term. Over many years, regular investments into an index fund will do well for you. 

By steadily putting money in and even buying on the dips, you’ll be ahead of most people. A useful tool is an online investment growth calculator found on many banking websites.

Budget

If you have no idea how much money you’re spending each month, chances are you are wasting a lot of money. Every little bit truly adds up. Take 60 days and keep a log of everything (and I mean everything) you spend each day. 

At the end of that 60 days, you’ll immediately find ways to save. You’ll likely be able to make larger, smarter purchases that save money in the long run.

Eliminate Debt

If you are carrying balances on credit cards, the interest rate is likely pretty high. This is a lot of money being thrown away that could be used to work for you in a positive way.

Bottom Line

As you can see, there are many ways to get your money working on your side. Give some or all of them a try and get the ball rolling on the better piece of mind that financial stability can bring you.