Focus in on Your 401k: 4 Retirement Planning Tips for Today

Retirement is a time in your life to spend time with loved ones, enjoy hobbies and traveling, and live stress-free. That isn’t always how it works out, though. The ability—or inability— to retire with financial security is a real concern that looms over the heads of many people. However, with some simple planning, you can be sure to enjoy the golden years of your life without worry.

Limit Extra Expenses

While you may think of large purchases getting as in the way of your retirement, little purchases can hurt too. Expenses that cost under ten dollars are often ignored as inconsequential, but they build up and can hamper your retirement goals. Daily coffee runs, eating out for lunch, leaving the lights on, and data charges on your cell phone are little charges that add up quickly.

Keep a detailed journal to see where all of your money goes. You’ll be surprised by how much you waste at the end of each month. Set a limit on how much extra money you can spend, and stick to it.

Contribute to your 401k

Take full advantage of the 401k option your employer offers. Enroll in your company’s 401k program and meet your employer’s match. You can also get advice from a 401k advisor to ensure you’re making the most out of this benefit. 



It’s also wise to increase your contribution by one to two percent each year. If you start early, the amount you contribute to your retirement will hardly be noticeable on each paycheck.

Plan your Living Situation

Hopefully, by retirement age, your home is paid off or within striking distance. A hefty mortgage can be difficult to pay with your retirement income. If you’re going to be empty-nesters, it may not make sense to keep that huge home. You and your partner should decide if downsizing is a better option. 

The equity from your home can be used to pay for a significant portion or all of your new living quarters. Renting is also an option if you can find an affordable community. A lot of retirees move to states such as Florida or Texas because they have no state income tax.

Automate Savings

Set up your monthly contributions to your 401k and other retirement funds as automatic deductions from your bank account. Although you may feel the sting of these funds being withdrawn, the investment is well worth it. These monthly “bills” will pay for themselves many times over when you are ready to retire.

Retirement may be far in your future, but the earlier you start saving and investing, the more secure you will be. Even if you’ve had little financial awareness, it is never too late to start saving for retirement.

There's No Wrong Time To Be Thinking About Your Pension

There might not be a wrong time, but there is a right time, and that time is now. Whether you're in your twenties, thirties, forties, or fifties, if you've not started thinking about your pension, there’s no time like the present. Obviously, the earlier you start preparing the better.

If you think your retirement is a lifetime away, you’ll be surprised how quickly it comes around. Before you know it, you’ll be knocking on the door of retirement and have made no financial preparations. Do you want to spend your twilight years worrying about every penny you spend? Surely that’s not why you’ve been working all these years.

Getting the Best Pension Deal

There are plenty of different pension options, but you need to be sure you've got the right one. You might have caught one of the many media stories about pension misselling. 

If you don’t want to get caught out with a mis-sold pension, you must do your research. Here are some of the contract-based pension schemes you might want to sign up for.

SIPP – Self Invested Personal Pensions are a type of pension that can run alongside a workplace pension. These pensions are an individual contract between yourself and a pension provider. The broad investment powers of a SIPP mean you can invest in a range of assets.

SSAS – SSAS stands for the small self-administered scheme. It is a type of defined contribution pension an employer can self-manage. There do, however, have to be fewer than 12 members.

QROP – A Qualified Recognised Overseas Pension Scheme is an overseas pension scheme that meets specific HMRC requirements. A QROP has to have a beneficial owner and trustees. It can receive transfers of UK pension benefits.

These are just three examples of the type of pension scheme you might be able to sign up for. For a person without any pension scheme knowledge, navigating the pension waters can be very dangerous. But who can you ask for advice?

Where to Get Your Pension Advice

Trying to find the best pension advice can be challenging, especially if you have no previous experience. Whether you want SIPP, SSAS, QROP, or any other type of pension, having someone you can trust in your corner is vital. 

To lower the risk of mis-sold pensions or a mis-sold annuity, you should seek the advice of an FCA authorized financial adviser. Don’t be tempted to get help from a pension introducer, as these people are not the best place to go to for pension advice. 

There have been numerous cases of a pension introducer playing a part in one of the many mis-sold pension and mis-sold annuity scandals of recent years. A pension introducer often cold-calls potential clients. 

They then pass on your details to an unregulated marketing firm. They are not regulated by the FCA and therefore could be a party to a pension mis-selling scam.

If you find you’re the victim of a mis-sold pension, it is possible to get claims advice, but the route to getting your money back is fraught with obstacles. To be successful with mis-sold annuity claims or SIPP claims, you have to be able to prove you were given the wrong advice. It might relate to a final salary pension transfer, defined benefit pension or one of many other pension alternatives.

There have been many cases of mis-sold pensions and annuity claims in the recent past. So much so that a whole industry has grown up around mis-sold pensions. SIPP claims, annuity claims, problems with a defined benefit pension, or a final salary pension transfer can often be solved. 

Provided you know where to get claims advice. The best place to start is by calling the Pensions Advisory Service. 

4 Ways to Supplement Your Retirement Income

Even if you had a great job for decades, retiring could put a strain on your finances. That is why many older adults are constantly in search of new ways that they can make a little extra money on the side. 

Here are four ways you can find some extra cash to help out with your retirement income.

Rent Your Spare Rooms

One of the most popular ways to get a passive income is to rent out a spare room in your home. That option could be especially beneficial if you have a separate living area such as a garage or basement that has its own entrance. 

Before you get a tenant, you must make sure that you have the proper insurance policy. Some traditional home insurance policies won’t cover any expenses associated with having tenants.

Become an Online Tutor

There is a huge demand for experienced tutors, and those individuals can make quite a bit of money. As an added bonus, online tutors can set their own schedule, and that could be very appealing if you are in your retirement years. 



To get started as a tutor, you will most likely want to contact an established tutoring company that can connect you to students and take care of the payments.

Be a Delivery Driver

Rideshare services have exploded in popularity in recent years, and many of those companies have recently established delivery branches. Instead of driving people all over town, you can simply drop off packages and groceries. 

In order to be a delivery driver, you must have a reliable vehicle, auto insurance, and a valid license. Some delivery and rideshare companies take a look at your driving record as well, and you must try to avoid tickets and accidents at all costs.

Sell Off Unused Possessions

Selling off a few of the items around your home is another great way to supplement your income in the coming years. Some of the best items to sell include jewelry, electronics, old coins, and antiques. 

If you have an unused vehicle on your property, then you should consider selling that as well. Getting money for your junk car is relatively easy, and many companies will pick up the car and pay cash on the spot.

In addition to these few tips, you also need to take a close look at your budget to see if any downsizing can be done. Your monthly bills are quickly going to add up when you are on a fixed income, and you might be able to save thousands a year by downsizing your home or cutting out a few unnecessary expenses.

When and Why Should I Refinance My Loans?

Financial lenders typically try to structure a loan repayment plan in terms that are compatible with the borrower’s income and additional financial responsibilities. However, sometimes circumstances change, including the loss of employment or competing financial needs. 

This can lead to the borrower unintentionally missing payments or sending late payments, which can damage the person’s credit score. This and other reasons below may suggest the need to try and refinance any loans you may be struggling to pay back.

When to Refinance

The most common reason to refinance a loan is when your bills increase or your income decreases, making it difficult to meet your monthly loan payment. Rather than falling behind in your payment schedule and risking your credit score, ask about your eligibility to refinance the loan. 

The interest rate may change, and it may take longer to pay off the loan, but you will have a better chance to maintain a positive credit rating.



Another reason to refinance a loan is to free up some of your monthly loan payments for an upcoming special event. College graduation, getting married, reaching a work-related or personal milestone, and retirement is some of the popular events for which borrowers sometimes need extra cash to pay for related expenses. 

Lower monthly loan payment will help to finance those plans so you don’t have to take out another loan.

Why You Should Refinance

In addition to the reasons stated above of protecting your credit standing and having more cash flow each month for other expenses, you may want to refinance to get a better interest rate than the one you currently have on the loan. 

With a cash out refinance loan, you’ll get paid back the difference between the increased value of your home or the reduced payments from your old rates. Sometimes a special offer will appear, and you might want to take advantage of it by refinancing your loan to get smaller payments or a quicker payoff date.

Another incentive to refinance your loan could be the benefits that come with doing business at a certain bank or financial institution. 

By switching your loan to a different lender, you may be entitled to certain perks or better rates for other accounts through the new lending entity, such as a higher-interest-bearing savings account or a lower interest rate on a home mortgage if you are thinking of buying a home.

By refinancing your loan, you can avoid financial problems and possibly enhance your credit score as well as taking advantage of better offers related to interest or other accounts. Refinancing too often can hurt your credit rating, so be careful to reorganize your loan terms infrequently and for good reasons.

4 Expenses You'll Need to Think About as You Approach Retirement

While the prospect of bidding farewell to employment entices most, many seniors fail to account for the added expenses that come with retirement. Though you’ll likely have some income coming your way, it’ll be considerably less than what you’ve grown accustomed to receiving. As you grow older, here are four expenses that you’ll want to be mindful of.

Healthcare

Old age generally gives rise to medical issues. With that said, you’ll need to account for frequent doctor visits and potential medications. On average, retirees rack up $500 a month in medical expenses. 

From deductibles and copays to premiums and coinsurance costs, there are various fees that come into play. To ensure that your savings account doesn’t take a hit, set aside ample funds to cover healthcare costs.

Funeral Needs

While this is a grim reality, death will inevitably rear its ugly head. When the time comes to commemorate your loss, you don’t want your loved ones to have to carry the financial burden. 

With that in mind, place enough money to the side so that your family members can tend to your funeral needs without dipping into their own wallets. Moreover, you’ll want to guarantee that you’re working with an affordable funeral home service like Damar Kaminski Funeral Home & Crematorium.

Leisure

With so much free time on your hands, you’ll have nothing but opportunities to relax. Sitting inside all day can be a drag, so you’ll want to fill your time with activities that spark joy. Unless you can score some free leisure, these outings will generally cost money. 

If your budget doesn’t allow for frequent trips to the museum or movie theater, consider volunteering. Not only is this a free alternative, but it’ll also provide a chance to give back to the community.

In-Home Care

If you can no longer care for yourself, enlist the help of elderly care professionals. With their helping hands, you’ll be able to carry out daily activities with ease. Bear in mind that these services are rather costly. If this is the avenue you pursue, don’t be alarmed by the high rates. By accounting for this expense in advance, you’ll have enough funds at your disposal to cover the costs.

If retirement is right around the corner, there are numerous ways you can plan for your new lifestyle. Above are some common expenses that you’ll want to take into consideration.

How to Save Money on Repairs After a Car Accident

Almost every driver is going to be involved in at least a few accidents over the years, and those mishaps can become very expensive if you aren’t careful. Luckily, with a little patience and some professional assistance, you should be able to recoup your losses and move on with your life before you know it.

Contact Your Insurance Immediately

Every insurance company has slightly different regulations, but most of those providers require their clients to contact them within 24 hours of an auto accident. Failing to file a report within that time frame could void your insurance, and that mistake might end up costing you quite a bit of money. 

Once the report has been filed, the insurance representative should tell you where you can go for repairs and what is going to be covered.

Hire an Attorney

Unless the collision was nothing more than a minor fender bender with no injuries, you will probably want to contact an attorney. Insurance companies are always trying to increase their profits, and they often do everything in their power to pay out as little as possible. 



An auto accident attorney can help you negotiate with the insurance representatives so that you receive a fair settlement. They will also be able to represent you if the situation escalates into a trial.

Work With a Local Dealership

While smaller mechanic shops are a great option for minor repairs, you might want to head to a dealership if the damage is extensive. Most dealerships have larger service departments that can handle bigger projects, and some of them offer discounts to customers who purchased a vehicle through them.

It will also be much easier for the dealership to order replacement parts, and that should save you quite a bit of time and money.

Don’t Report Minor Dents and Dings

Every state has slightly different laws regarding what must be done after a minor accident. In most states, a driver doesn’t need to report an accident if no one was injured and less than $500 worth of damage occurred. 

For minor damage, paying the deductible could be more expensive than simply paying for the repairs yourself. You might not even need to have the damaged repaired if it is nothing more than scuffed paint or a scratched bumper.

If a recent accident has caused a huge leap in your insurance premiums, then you should consider taking a defensive driving course. Many insurance companies will reduce your monthly premiums if you take one of those courses within a few months of a collision.