6 Tips to Have an Excellent Life after You Retire

April 23, 2016 By Leave a Comment

This is a Guest Post by Tina from ProFinanceBlog.com

Life after retirement – lovely images pop in your mind when you think of it, images of peace and tranquillity, uninterrupted by the hustles of a busy work life. Problem is you couldn’t take the scary images out because they might turn out the reality.

The greying gentlemen have limited financial options. But someone in his mid-30s or early 40s has many such options. Remember, which fruit you reap in the present depends on which tree you’ve sowed in the past. Same way, how your retirement life would be like depends on how you are managing your finances now.

The pre-retirement phase

The phase begins in your early 50s and ends with your retirement. Let’s pin on 52 as the beginning of this phase. At this stage, your priorities are to estimate the possible earning from social security and pension, and making an assessment of how much the employer-sponsored pre-tax retirement saving plans (with and without limit) might yield. A correct (or even semi-correct) assessment would reveal how much you’d pull out every month after you retire.

Investment opportunities

Don’t be too optimistic, you never know when the inflation will start to hover around the higher digits. Not to mention, the deposit interest rate has been historically low in this country, which means stashing the money that you receive from the IRA and 401(K) and 403(K) in the savings account won’t get you a satisfying monthly amount.

Hence, start exploring the investment opportunities from today. Just as I said in the beginning, people in their mid-30s or early-40s have some leverage. They can experiment and fail, only to pull their finances together and invest again, venture out from the frame of a safe investment, which is almost impossible for someone, who’s reaching 60. If you have the leverage, use it.

Life expectancy

Anticipate your life expectancy before you retire, or else you might face financial hardships in the late years of your life. Your retirement savings should be enough to give you financial support till the end. How much is enough? Depends on how long you live.

Most life expectancy calculators ask you to reveal your age and gender because they gauge the lifespan using geopolitical data. If you are 30 years old now, then your current life expectancy is more than 80 years. It’ll increase with time because of the advancements in the areas of medicine and therapeutic treatment, and the spread of health awareness.

Tax insinuations

Different areas making up your retirement income have different tax insinuations. Distribution methods are not uniform. For example, if you invest in equity now and get a handsome return when you retire (or freshly after that), it’d be completely tax-free.

On the other hand, the money you withdraw from the conventional IRA accounts and 401(K) come under tax. If you have securities in your taxable accounts, it’s wise to sell them out.

The best strategy is to hire a tax consultant or a financial advisor, so he explains various tax situations in your post-retirement life and you could decide your course of action.

Employ a tracking system

Do that today, and check your monthly budget a month down the line. If it looks like a balance sheet, then you are doing it right. A balance sheet has columns for losses and gains; that’s how the tracking system should make the budget look like. All the money that’s coming in, and all the money that’s flowing out should be tracked.

What’s the point of such a tracking system? It’ll stay activated even after you retire and keep a tab on all your earning and spending. Simply put, tracking all your retirement earning would be incredibly easy. Retired people may use money from fixed income sources such as pension and social security for leisure and entertainment purposes. A tracking system in which a stable income is mapped with paying for required utilities prevents them from doing that.

Filed Under: Planning, Retirement

Planning For Your Retirement The Smart Way

January 27, 2015 By Leave a Comment

Everyone knows that they need to plan for their future. That includes your retirement. Retirement can be very expensive and you need to make sure that you have enough money saved up to live off of for a generous amount of time. No one wants to go back to work after retirement but that is the reality for people who have not readily prepared for their retirement. You can avoid this by preparing for your retirement the right way and planning out the spending of your money throughout retirement.

How to Plan for Retirement

When you are looking at how much you need to save up for your retirement, you will need to examine your expenses. This will help you determine who much you will need. You will also need to make sure you have enough money to last you throughout your entire retirement. No one knows how long they will live, but you will want to prepare for many years.

Once you have determined your expenses, you will also want to account for the things you will want to do with all of your free time. You do not want to be pinching pennies and not enjoying your retirement years. This is the time to enjoy all of your time off and your family. You will need to account for these types of expenses. One way to travel on a budget is to search for retirement deals on various websites such as Retirement Living.

When you come up with a number that you are comfortable with, you will need to start developing a plan to obtain all of the retirement funds. Many people have a 401K that they put money into. While this is very common, it is not the only option and you should consider other ways to obtain retirement money. You can consider investments throughout your working career. You can invest in things such as stocks and bonds or you can choose bigger investments such as real estate or new business ventures. Something you should take into account with investments is that there is always a risk with an investment. You will want to ensure that you will at least get your investment back even if you do not make anything off of it.

These are the best days of your life as well as the most relaxing. Take some time to prepare for your expenses as well as your fun. These days will be even better if you have accurately prepared for them financially.

Filed Under: Retirement

Retirement Planning Mistakes to Avoid

April 13, 2014 By Leave a Comment

Retirement planning is a topic that more and more people are getting interested in lately, especially over the last few years. This is not only due to more awareness about this subject thanks to the multitude of financial blogs, magazines, channels and so on, but also because of the recession that came about in 2008 which led to the erosion of retirement accounts of thousands of retirees.

However while planning for retirement is a good thing and there cannot be a better time to start working on it than now, there are a few mistakes that most people tend to make. We will go through the main ones in this article in the hope that you would learn from these and avoid them while planning for your retirement:

 1. Starting out too late:

As we said there’s no better than to start planning for your retirement than now, for years will keep passing without you even realizing and one day you’ll be staring at your retirement without the necessary savings in your account. Therefore, it is a mistake that you need to avoid at all costs.

Even if you save a little money every month, it all adds up over the years and makes for a sizeable amount when you reach your retirement age, thanks to the interest you gain on your capital as years roll on.

 2. Not making the most of 401(k)’s:

A lot of people fail to make the most of 401(k) as they do not match the contribution that their company offers. This is not a little mistake but a serious error that needs to be corrected as soon as possible. Since contributions to your 401(k) are taken from your paycheck before taxes, you don’t need to pay taxes on taht part of your income, so if you aren’t making the most of it, you’re making a huge mistake as it is essentially free money that you’re losing out on. If you need professional help regarding retirement planning, you should consult retirement planning surrey to take care of this.

 3. Being too conservative while investing:

The great recession of 2008 eroded the life savings of many people, but mostly of those who had invested a lot of money in the stock markets. This instilled fear in the minds of both youngsters who heard about this debacle as well as those who lost a major chunk of their hard earned money. However holding bonds and thinking that you’re risk free is a costly mistake as the stock market tends to give very good returns in the long run, so if you do not have enough exposure to it in your younger years, you’ll miss out on sizeable returns. The best way to go about such planning is consulting a professional such as financial planner surrey who will help you sort out your finances.

 4. Cashing out early:

Many folks tend to get lured by the amount of money stashed in their retirement accounts and are tempted to cash out their 401(k)s. However, this is another mistake since by doing so you’ll owe taxes on the amount you cash out and also face a 10 percent penalty, so it is a deadly combination that is going to turn out very costly for you in case you decide to do it. Thus, a better way is to roll your 401(k) into an IRA and stay tax-free!

Filed Under: Retirement Tagged With:

Friday Rant: Invest Now For a Secure Retirement

July 5, 2013 By Leave a Comment

Getting close to retirement? Getting a little worried about making the money you’ll need in order to live comfortably once you’re no longer working?

This year, make time to start investing as a way to protect your future. Investments are an excellent way to start planning for retirement. You can invest now and save up money for retirement or you can invest in your own personal retirement fund.

Regardless of how you choose to invest, keep in mind that investing is something that can take many years to properly do it. Start now and take your time investing. That way, by the time you’re ready to retire, you’ll have a comfortable portfolio on which to depend.

When you decide to start investing, conduct research to find out which stocks and mutual funds are best. Consult with someone like Scott Reiman who can point you in the proper direction. Remember that while learning to navigate the world of stocks can be a challenge, it’s certainly possible to learn how to do it properly and in a way that makes you a decent retirement cushion.

Most importantly, perhaps, is that you remember to be patient when you invest. Some investments can take many years to make back, so don’t be afraid to take your time learning the ropes.

Filed Under: Retirement

Here’s a Perfect Retirement Village for Retirees

July 5, 2013 By 2 Comments

When you are looking for a beautiful yet comfortable retirement community, either for yourself or for a loved one, one of the best places to turn is to St. Ives real estate. St Ives, specializes in retirement village construction, and has done so for about 30 years. This experience has made the St Ives team knowledgeable in the interests of older, retirement-aged residents.

They understand that you want a community that cares, one that takes your health seriously, with a staff that is friendly, helpful, yet also allows you to live as independently as possible. St. Ives understands every need of every older resident, those that still want to live life on their own, once the children have grown and gone, or those who need special medical attention and facilities.

This real estate group meets and exceeded standards in design, quality care and support services for older people wanting to live in retirement villages, or for those needing residential care or community living. Over the years St. Ives has been instrumental in the construction of more than 1,500 retirement facilities in Western Australia. This firm has also helped accommodate thousands of retired residents and their families, allowing you to live comfortably, enjoy family life, yet still have your own independence, and offer you the care you need. While St Ives does own and operate many different retirement villages and residential care facilities.

For them, residents as more than just clients – they view each and every resident as a family member. St. Ives has always been considered a progressive real estate service and in the 30 years of service, residents have always enjoyed living in one of their many different facilities. This company is now known as one of the largest providers of retired living community services in western Australia.

The firm currently offers more than 670 community aged care residential packages for people still wanting to live on their own, but who want the security in knowing their needs are being taken care of. The firm offers living communities in Perth, Alice Springs (NT) and in Canberra and Victoria. When you are looking for comfortable, beautiful and interesting retirement living facilities, there is no other firm with more experience than St. Ives.

Filed Under: Retirement

Three Important Things To Consider Before Retirement

April 24, 2013 By Leave a Comment

When considering your potential for retirement, the best tool you might have at your disposal is a crystal ball. Unfortunately, if you happen to be fresh out of these handy tools, there are a few ways of thinking that might help you plan for a happy as well as financially solvent future. This article will serve as your primer for such a post-working future.

 Retirement

Lifespan

How long will you live? Talk about your ability to see into the future. Unfortunately, without at least a ballpark idea of how long you will live, it will be very difficult to determine how much you will need to live on for the remaining years of your life. If you don’t have a crystal ball and you’re fresh out of palm readers, get an idea by looking at your family tree. No, you don’t need to cut anyone in half and count the rings. Instead, look at as many of them as you can to get an idea. Do they live long and active lives? Chances are good that you will too.

Lifestyle

How much money will you need to live in a manner that you wish? Once you decide approximately how long you will live, you will need to determine how much money you will need to have in order to live. By the age of your retirement, you could probably have several assumptions under your belt such as having your home paid off, your children educated, and other givens which can cut the among of money you will need to make down considerably. This is not to say that you won’t need money, perhaps even a considerable amount, but you will probably need less than you did earlier in your life.

Life Plan

What will you need to have and do to make your chosen lifestyle possible? By this point in your homework you should have a rough idea of what you will need to retire. Considering how you would like to live during your retirement, does this mean you can live on what you have saved? Will you need to work more or perhaps at least part time? Are you taking a disability retirement? This brings with it another possible source of income. The point here is to determine what you will need to do to make living in a certain manner possible.

Perhaps this summary of evaluating your potential for retirement could be considered oversimplified, but it will give you an idea of what you will need to retire, comfortably and happily ever after.

Filed Under: Planning, Retirement

The Five Best Countries to Spend Your Retirement

April 9, 2013 By Leave a Comment

When it comes to retirement, you can stretch your money a lot further when you live overseas. There are some beautiful countries where you can live in warmth and comfort, living much more luxuriously than you could back home. Here are the top five countries to spend your retirement in style.

retirement

Belize

There are many wonderful countries south of the United States to spend your retirement, but Belize stands out for the fact that it is English-speaking. Most inexpensive countries where you can spend your retirement will require you to learn a foreign language, but Belize does not. You can live there comparatively cheaply, enjoying beautiful scenery, an amazing coastline and tropical weather.

Colombia

Colombia had a reputation as a dangerous place up until about a decade ago. Now it’s as safe as can be, and it offers some tremendous values for retires. The weather is phenomenal, and there are beautiful cities to enjoy on the Caribbean like Cartagena. Visitors can also enjoy Medellin, the city of eternal spring. The people are very friendly, the food is great and the cost-of-living is cheap.

Ecuador

There are many things that Ecuador has to offer retirees. It has a very low cost-of-living. It has some amazing cities like Quito and Guayaquil. It is home to some of the most majestic volcanoes in the world. It also features an amazing Pacific coastline that is nearly completely unspoiled. Retirees from the Australia will find that their self managed superfund will be easy to use in Ecuador. The country uses US dollars for its currency, avoiding the messy currency market fluctuations that can challenge retirees in other lands.

Spain

This country may be a little more expensive than other destinations, but there are still some great deals to be found on real estate. The extra expense is worth it when you consider the quality of living and the amazing amenities that Spain has to offer. Golfers in particular will enjoy the fact that it has more world-class golf courses than anywhere else in Europe.

Vietnam

The people of Vietnam are very friendly. The food is perhaps the best of the world. It offers Asian flair that meets with classic French cuisine left by their former colonizers. Retirees will find that they can stretch their budgets a long way in Vietnam. The country also offers lots of beautiful mountains, jungles and beaches to enjoy. Retirees in Vietnam will never get bored with all there is to do.

Filed Under: Retirement

6 Ways Families Can Prepare the Elderly for Assisted Living

February 26, 2013 By Leave a Comment

As the health of elderly people deteriorates, it becomes increasingly difficult for these individuals to remain in their own homes. Unfortunately, most families lack the time or skills necessary to care for their older loved ones, so a new housing situation needs to be arranged. Assisted living provides elderly people with a safe place to live, and these facilities provide activities and socialization opportunities that will help keep residents happy. Despite the advantages of assisted living, it can still be difficult for everyone involved. Here are five easy ways to help prepare your elderly loved one for assisted living.

Keep a Positive Attitude

Keep a positive attitude about the new arrangement. You may feel unhappy or guilty about moving your loved one into assisted living, but try to keep these emotions to yourself. Your loved one does not need you to make them feel worse about it. Instead, focus on the good aspects of assisted living, like the accommodations or the activities.

Help Manage Finances

Elderly people may not have their finances in order. If they do need help, help them manage their finances in order to prepare for assisted living. Help your elderly loved ones budget to pay for the assisted living, and make sure they will have enough money to pay for the facility of their choice.

Check Out the Living Arrangements Before Moving

Always visit an assisted living facility with your loved one prior to moving them in. Give them a chance to familiarize themselves with the facility and what it has to offer. Afford them opportunities to meet the staff and other residents. They could even participate in a couple of activities while you are there.

Make It Feel Like an Extension of Home

Your loved one will already be dealing with many changes when they move into assisted living, so do not make them leave everything behind. Fill their room with photographs, trinkets, and other cherished items. If they have additional belongings that will not fit into their room, put them in Irvine CA storage units. This will allow them to hold onto the things that make them happy, even if they will not be able to see them every day.

Communicate Regularly

Make sure your loved one does not feel forgotten. Regular visits and phone calls will remind them that they are loved. It will also afford you the opportunity to make sure they are adjusting well, though you may need to check with staff members regarding their progress.

Give Them Space

Regular communication is wonderful, but do not make your loved one feel smothered. It can be difficult, especially at the beginning, to resist the urge to call or visit many times in one week. You may actually interfere with your loved one’s assisted living transition. They need time to make friends and develop a new routine, which is not possible if they are constantly being interrupted by phone calls and visitors.

Filed Under: Retirement

Top 3 Investment Opportunities for Seniors

December 7, 2012 By Leave a Comment

After their working years have ended, seniors need to steer their money toward investments that are not as risky. If they lose the money they have worked a lifetime to accumulate, it will be unlikely that they will have time to rebuild their portfolios. The top investment opportunities for seniors keep their money safe and provide them with the money they need to survive throughout a lengthy retirement.

The Certificate of Deposit

The certificate of deposit is a very safe place for seniors invest money because if they keep the amount below $100,000, they will not lose any money if the bank fails. Seniors only need to make sure that their banks are fully insured by the FDIC, and they can be assured that their deposits are safe.

Different banks offer different interest rates for certificates of deposit, so seniors will want to ask several banks what rates they are offering before they decide where they will purchase their CDs. One strategy that seniors often employ is purchasing a one-year CD, one two-year CD, one three-year CD, one four-year CD and one five-year CD. Every year that one CD matures, seniors can renew them at a higher interest rate. In the meantime, they are earning interest income every month.

Treasuries

Treasuries are safe because the United States government backs them, and they are very easy to find. Banks and credit unions sell treasuries, but seniors can also buy them directly from the U.S. government. One type of treasury is the Treasury-Bill (T-Bill). The T-Bill is a debt obligation that will mature in less than 12 months. Seniors will be able to purchase these T-Bills in $1,000 denominations that will mature in one month, three months or six months. Seniors also have the choice of purchasing treasury bonds or savings bonds.

Government National Mortgage Association (GNMA) Bonds

GNMA is also known as GINNIE MAE. GNMA bonds are what are commonly known as mortgage-backed securities, and they are safe because they are also fully backed by the government of the United States. They provide investors with a reliable income source, and they offer seniors higher interest rates than the treasuries mentioned above.

As interest rates increase, the GNMA bond’s price decreases. As interest rates decrease, the bond’s value increases. The interest rate will only be of concern for seniors who will need to withdraw the principal. If, on the other hand, seniors will be living off of the interest, they will not need to worry about the interest rate.

Jennie was born in Naperville, Illinois and grew up as an advocate for the elderly. She now works full time as a financial advisor. Jennie recommends Naperville elderly care to her friends and family for their dedication to providing superior service to their clients.

Filed Under: Investing, Retirement

The Best Way to Save For Retirement

December 4, 2012 By Leave a Comment

Personal loans for people with bad credit can greatly aid one financially as they approach their sunset years. Such loans will no doubt help you to get your investment plans on track and help you to meet your saving target. Note however that the loans come with high interest. If possible, it is better to free oneself from bad credit loans or multiple loans in order to secure a strong financial base.

Even people who don’t save know that spending all income is a misinformed lifestyle. This is because with time a person’s productivity goes down and as they become less industrious their lives become increasingly harder to bear as health begins to fail them. As the scale of productivity against needs go down, the savings one made in the better days come in to save the day.

The best way to go is having an automated deduction from the paycheck. The 401(k) plan deductions are usually done before taxation making the plan better than other personal savings. This denies the person liberty of spending what is meant for saving and enhances financial discipline. A figure of about 10% of the gross income is a safe way to go.

Whether one saves individually or to a retirement plan like the 401(k), the saving should be invested to yield some increase which is what stands for the gap of general devaluing of money that usually occurs with time. A diversified plan of investment is the best to ensure safety of the funds. However a person’s age should determine the kind of investments one chooses. Long term investments have better returns while the short term investments tend to gain less although they rapidly make the returns.

Can one take a loan and use it as an investment? Personal loans for people with bad credit are very much encouraged as long as you have a solid plan to invest the money and are sure of repaying the loan. People running a good credit history can borrow low interest loans to grab opportunities that would otherwise pass by if they don’t have the cash. Whether or not taking a loan to invest is a wise move entirely depends with the cost of the loan and the benefits of the investment.

One is encouraged to contribute the maximum allowed by 401(k). Beside that there are other investments to which a person can direct any extra coin they wish to save. The mutual funds one chooses can be in the following distribution; aggressive growth 25%, mid growth 25%, growth and income 25% and a balanced international fund 25%. The short term yielders should be reinvested again and again to create a continually growing equity. This way one can even incorporate short term and low cost personal loans for people with bad credit to boost the investment and help in achieving an already set aim rapidly.

There is a need to take charge of the investment plan because the social security alone cannot be sufficient in affording one a comfortable life in old age. Just remember to remain calm and well composed even when stocks you invested in seem to dwindle. Retirement investments are long term ventures and the day’s activities should not worry you.

Filed Under: Finance, PayDay Loans, Retirement, Savings