6 Places To Retire Abroad and Save Money

When I retire I see myself with a beautiful house on the lake with my fishing boat catching a few fish and sipping on a cup of coffee. But for some, that is to laid back and not very exciting. To spice up your retirement have you ever considered retiring abroad?

If you are thinking of going overseas you better do a lot of research and maybe even take a few vacations there to see if it meets all your needs. I did some research in the United Nations World Tourism Organization 2012 publication and found the top six destinations. 

If you are a bit of an adventurer you may find overseas living intriguing. As you do your research you will find many web sites, media outlets, authors, and bloggers who can help you find what's best at a reasonable price.

France.

Here you will find the food and culture center of the world. France was rated as superior in the 2010 International Quality of Life Index. Their health care is also rated as very good. On the downside they do have high taxes, a difficult bureaucracy, and high prices. So it's better to find yourself a place outside the larger cities.

Turkey.

Though on the edge of the European landscape, they consider themselves more Western than Middle Eastern country. Soon to become part of the European Union they are one of the top growing economies in the region. You can find retirement destinations in the mountains or at the seashore. Property in turkey is well suited for retirement or vacation living.

Mexico.

Being the closest destination to the U.S. and already popular with retirees for its money saving standard of living, Mexico is a great choice. In Mexico, you will find modern and up to date health care near big cities. Many retirement and vacation communities have been providing a relaxing life under a warm sun and tropical weather for many years. 

Panama.

Another small country that wants to attract the foreign investor and retiree. The currency is tied to the U.S. dollar, there are retiree discounts, and favorable tax treatment on income and new homes. Mostly a rural spot with no major metropolitan areas, so traveling for major health care may be necessary. The weather is also warn and tropical.

Costa Rica.

A small country in Central America that is already the home to many people that have chosen the laid back life style. It has a good economy and a stable government that encourages the foreign dollar to its shores. Retirement income and real estate profits are untaxed, combine that with lush beaches and country side living, you have a perfect destination.

Italy.

Who could argue about Italy being a great place to retire to. You have the great food, culture, and the Mediterranean weather is very attractive to visitors. The best bargains are in the southern areas and again staying in the country side is going to save you a lot of money. Like most metro areas you will be paying a premium for city life.

This is only a short list of all the possible destinations to retire at. You need to consider other obstacles to living abroad like language, government stability, and living standards. These and many other things need to be considered for such a big move. 

Living overseas is going to give you the adventure of your life. It takes a certain mindset to leave you home country and live abroad. Maybe after a while you may become homesick. There is much to consider in living overseas. 

Do your research and take a vacation to your destination and see if it is all you thought it would be. Good Luck.

How Business Owners Can Save Money on Credit Card Processing

(Photo credit: Wikipedia)Business owners often face a double-edged sword when they decide to accept credit card payments. It's simply good business to offer the ability to use a credit card and it helps attract more customers and make more sales, but on the flip side, credit card processing fees can be very expensive and will whittle away your profit margin.

Before you decide on a credit card processing company, there are a few things to do to make sure that you are saving the most money possible.

1. Comparison Shop. There are literally thousands of credit card processing companies and no two are alike. You'll need to comparison shop among several different types of companies and see which one will offer you the best deal. Don't forget to check with your local bank to see if they offer this ability, you may end up getting a better deal.

2. Get Help With Your Credit. If your personal credit is bad, this will affect your ability to get a credit card processing account and will raise the fees you'll need to pay for processing each card. Get a free copy of your credit report and make sure there are no errors or collections on there. If there are, get help with your credit to get these items removed. Give it about 6 months after fixing the issues on your report before you apply for a new processing account.

3. Try Third-Party Alternatives. In some cases, a third party processor, such as PayPal, may be your best alternative, especially if you don't expect to do a high volume of credit card sales. Again, you'll need to comparison shop with several different companies to ensure that you are getting the best deal out there.

4. Choose the Cards You Want to Accept Wisely. MasterCard and Visa are typically the most economical when it comes to processing fees. American Express on the other hand can be very expensive to accept. Keep this in mind when you decide which cards you want to accept in your store.

These steps can help you save a significant amount of money for processing each purchase. Remember, your personal credit will affect your business credit, especially if you are just starting out. Now is the time to get help with your credit so that it doesn't keep you from living your dream of starting your own company.

Preparation Is Important Before Buying That New Car

 (Photo credit: Wikipedia)Life is not a rehearsal and you need to live it fully and in the best way possible. Everything in this life requires proper planning so you can avoid disappointments. To have your own car is not easy and therefore, you need to be well prepared, financially. 

The purchase can be expensive depending on the type of car you want to purchase. It's up to you to do a lot of shopping around and diligent research on the Internet to make sure you are getting the best deal when going to the dealer.

Buying a car is one thing and maintaining that car is another thing. Whether it’s a new car or a second hand car the maintenance cost must be incurred in both cases. Most people have come to like the minivan that is known as the Nissan Quest. 

Even though you have purchased a new car you are still going to incur some repair costs after the initial warranty is over. It is therefore, advisable to purchase a used car which is cheaper at first than a new car but does still have similar maintenance costs.. 

This can be a good option especially when you have a vehicle that was well maintained by the person who possessed it before. The only measure that you ought to take is to be sure that you use a honest dealer who can guarantee you the integrity of the used car you are about to purchase. 

If you want to purchase a previously owned car, which is still in a good condition, then find the best used car dealer known for their honesty. It is important to consider the price you pay for the vehicle is in direct proportion to the condition of that vehicle both in appearance and performance. Finding a excellent condition used car is possible and worth the effort.

Save Money and Enjoy Better Coffee With an Aeropress

Brewing coffee with aeropress (Photo credit: Wikipedia)

I have always enjoyed my morning cup of coffee. Even in college I never missed having a few cups a day. Back then my only choices were Dunkin Donuts or coffee at the quickie mart. Now the choices abound. Starbucks has opened the flood gates on coffee enjoyment. No longer are we stuck with a cream and sugar coffee, today the choices and flavors are endless. They are also expensive.

To save a little money I went the way of the single serve coffee brewer it's worked very well. I probably save $15-$20 a week making coffee at home. I have been completely satisfied with this for several years. But I have been exploring ways to do better. 

My exploration has brought me to a device called an Aeropress. Which is basically a French Press, only better. This little machine has given me an even better cup of coffee than my single serve brewer. Like a single serve machine it makes only one cup at a time. This is the theory for brewing the freshest, best tasting cup of coffee you ever had.

I started with the "AeroPress Coffee and Espresso Maker" I purchased from Amazon. It comes with the coffee press, 700 filters, a bag to carry the stuff in, and all the tools to brew coffee. The 700 filters should allow you to make 700 cups of coffee, what a deal! 

Here's How To Use The Aeropress:

1. Place a filter disk in the cap and attach the cap to the chamber. Place the chamber, with cap, on top of your favorite coffee mug 
2. Place your ground coffee into the chamber. Use one included scoop per cup of espresso or per cup of coffee wanted, to a maximum of four scoops.
3. Now heat the water. You can actually heat it in the plunger, since it is hollow, or heat it any other way desired. The manufacturer recommends 165 - 175 degrees F. (75 - 80 C). First, wet the grounds with the water slowly, then add the rest of the water. There are markings on the chamber as well as the plunger for how much water to use. Stir gently for about ten seconds.
4. Wet the rubber seal on the plunger, insert it into the chamber and press slowly, it should take about 20 seconds for all the water to pass through the grounds, depending on how much you are making. 

The results of this work is a cup of "Expresso Strength" coffee. This is arguable, but the fact is that you have a very smooth, concentrated form of coffee. If you are after a more "classic" cup of coffee, you can add hot water to the output of the Aeropress, diluting it with 2 to 3 times the amount of hot water to espresso.

Link to World Aeropress Championship 2012 Recipe Competition

Now the coffee is ready to drink so flavor it as you usually do. I have found that sometimes I can't drink the amount of coffee made so I have stored it in the fridge for later. It still tastes as good but the aroma is substantially lost. Many people do not mind this so they make up an extra batch and keep it in the fridge and report it is still good tasting weeks later.

I believe that good coffee is as important as good personal finance. Try the Aeropress for a great cup of coffee.

AeroPress Coffee and Espresso Maker with zippered nylon tote bag and an Extra 350 Micro Filters (700 Total)

Helping Your Grandchildren with College Expenses

Although most of us don’t have enough financial freedom to completely finance the college education of our grandchildren, there are still ways we can invest some money for their future schooling.

If you are interested in setting aside money for your grandchildren’s education, be careful to consider all the options available to you (savings and investment plans and tax-free gifting). One plan may be perfect for one person but not the best choice for you, so make sure you understand how every option works before making any decisions.

There are three options in particular that many grandparents find beneficial for their savings goals; 529 plans, savings bonds and tax-free monetary gifts.

529 Plans

With a 529, grandparents can put away money for their grandchildren’s education through either a prepaid plan or a savings plan. Prepaid plans allow you to purchase tuition credits. These credits match today’s inflation rates, so their performance is based on how much the cost of tuition rises by the time your grandchild goes to college. Not all states offer the prepaid plan. With a savings plan, all growth is based on the performance of (usually) mutual fund investments. As the beneficiary gets older, the investments in a savings plan become more conservative, just like a retirement savings account.

Distributions from 529 plans to pay for qualified college expenses are exempt from the federal income tax. Investors who contribute to a 529 plan in their state of residence also often receive state tax advantages, exemption from state financial aid calculations and other benefits. Donors maintain control of the account, and most plans allow benefactors to reclaim the funds for any reason, at any time with no penalties. However, if a non-qualified withdrawal is made, the earnings will be subjected to an income tax and an additional 10% penalty tax.

Savings Bonds

Government savings bonds can be given to your grandchildren as birthday or Christmas gifts when they are very young. This gives the bonds plenty of time to mature before they are cashed in for college. The most common type of bond purchased to fund education is the T-note. It earns a fixed rate of interest every six months and is issued in terms of two, three, five, seven and 10 years. This means that you can’t cash in your purchased bonds until they have reach those terms, but the longer you allow them to sit, the more interest they will earn. The minimum purchase amount is $100.The income earned from interest is subject to a federal income tax but exempt from any state or local income taxes.

Tax-Free Monetary Gifts

If you are interested in giving a larger sum of money to a grandchild who will be attending college very soon, you may want to choose the tax-free monetary gift route. Most monetary gifts are subject to a tax, but grandparents can avoid that tax by giving their gift directly to the educational institution their grandchild plans on going to. Donors must make sure that the beneficiary is serious about graduating from that school, though, because there aren’t any hard rules that require schools to return the money if the child drops out. However, if the student has serious plans to graduate, a tax-free gift is the best way to transfer wealth and know that it will be used for its intended purpose.

For more information on college savings plans for your grandchildren, contact your local licensed financial advisor.

Nadia Jones is an education blogger for onlinecollege.org. She enjoys writing on topics of education reform, education news and online learning platforms. Outside of the blogging world, Nadia volunteers her time at an after school program for a local middle school and plays pitcher for a local club softball team. She welcomes your comments and questions at nadia.jones5@gmail.com.

• The Best Way to Save for College: A Complete Guide to 529 Plans 2011-12 - Book Review

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• What College Expenses Do 529 Plans Cover and Not Cover?

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• Roth IRA vs. 529 plan - Which is Better for College Savings?

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Does Investment Bias Hurt Your Investing?

Do you find it almost completely impossible to remove complex thoughts and emotions when choosing investments. If you do you are experiencing "investment bias".

Believe it or not there is a whole field of study called “behavioral finance” and it is devoted to understanding why people make their investment decisions. People who do this as their profession say that we all can't help but have biases effecting our investment decisions.

Does this mean we are forever stuck and handicapped by this bias? No, because when we understand how these biases work we can learnt o avoid them.

Here are a few of the worst biases that effect our decision making when picking and maintaining our investments:

Overconfidence.

Overconfidence fools investors into thinking they know the right times to buy and sell an investment. This behavior also known as market timing can be very expensive if you are wrong too many times. Not only will you be losing money on bad trades but you will be experiencing more investment fees and taxes.

Representativeness.

There is a bias called "representativeness". This behavior shows itself as making investment decisions based on preconceived notions or stereotypes.  If you link stocks to other investments because they are alike in some ways, this is representativeness. The hot stock or sector is another form of this. Basing your investment decisions on the hot tip or rumour just leads you to making mistakes. Having a plan of building a portfolio in a balanced way will avoid this. Having good diversification and setting up a group of stock or better yet index funds that force you to be diversified will help you be more successful in your investments.

Anchoring.

This is similar to the previous bias but this bias makes investors weigh decisions to much on past performance of a sector or stock. If you believe a stock is worth a certain price and it drops, your bias assumes the stock is undervalued. This bias based on your assumptions and having no basis in fact will hurt your investment performance.

Confirmation.

This bias occurs when an investor looks for reasons to back up a decision on an investment. Looking for reasons to back up an assumption is backwards. Trying to find proof for your assumption will kill a portfolio's performance. Again, here a bias that is an idea not based on facts. 

A way to overcome bias.

We are all prone to making assumptions and a bias that is not based on facts, but feelings. If you are aware you have a bias, then you can take steps to be on the look out for it in your investment style. All this bias is hard to stay aware of and one way to to avoid it is to seek out good investment advice with a certified financial planner. They will be able to guide you into making more informed decisions and less emotional ones.