The Biggest Financial Mistakes Made By The Modern Generation

Everyone makes mistakes in life, but financial matters are an area where nobody wants to fall victim. In reality, though, most people are guilty of some very preventable issues.

Here are five of the most common among today’s generation, along with some advice to avoid them.

Buying A Property Too Soon

Becoming a homeowner is an important goal both financially and personally. However, the pressure to buy a home shouldn’t encourage you to swoop too soon. In truth, the price paid for the house isn’t the only cost you’ll encounter. As such, being prepared for agency costs, surveys and the other items is crucial. If you cannot afford them right now, renting a little longer is fine. Apart from saving a bigger down payment, it’s often less stressful.

Relying On Standard Retirement Pensions

Retirement is slowly creeping up on you, even if you’re in your twenties. Your standard pension plan will give you a basis, but it won’t be enough to help you live a comfortable life. Investments such as gold IRA funds can increase your wealth significantly. Given that life will inevitably get a lot tougher once you’ve reached retirement age, this extra safety net can make a world of difference. Frankly, assuming that things will be OK without it would be very naïve indeed.

Overlooking The Small Costs

Overheads and expenses are just as pivotal to your financial situation as revenue. Most people appreciate this and will actively make the right moves to save money on major purchases like cars. In truth, though, the savings made on daily transactions is where you can reap the biggest rewards. Whether it’s using coupons for cheaper groceries or tailoring a home TV package to suit your genuine usage doesn’t matter. Wasting money by needlessly overspending will take its toll on finances for many years to come. Prevent this from being an issue, and it’ll pay dividends.

Forgetting Credit Scores

Many people assume financial wealth is solely about bank balances and assets. However, leaving doors open is an equally important factor, which is why your credit history is so vital. A lot of people allow their credit scores to stay low before inevitably falling into greater debt. Repairing yours isn’t an easy job, but it will enhance your future for many years to come. Given that we live in a world where borrowing money is a regular feature, ignoring this is a financial sin.

Not Appreciating Their Worth

Perhaps the worst thing anyone can do, however, is let others take advantage. You’ve invested time to develop skills, earn qualifications and gain experience. As such, you deserve to be paid a suitable salary. Online job boards make it easy to check what people in similar roles command. Talking your way to increased pay is achievable while you may also want to look for opportunities elsewhere. Even if you love your job, payment is the main incentive. Do not forget it.

Avoid those mistakes at all costs, and your financial future will look better than ever. Quite frankly, that’s something that can be appreciated by all.

Do you think you are ready for your retirement?

A few decades ago, retirement planning was quite straightforward. People got well-paying government jobs and stayed on in the same company until retirement. After that, the company’s pension plan supported them financially. But times have changed. It is rare to find someone in the same job for more than a few years. As a result, the onus of retirement planning has fallen directly on the individual. But the fact is, many people do not think about retirement planning until it is too late.

Importance of retirement planning

Imagine the following situation. You are in your early 30s. One day, you bounce into your old college friends. You go out and have a blast. The bill is huge. But that’s not a big problem because you can afford it. You know exactly when your next pay cheque will arrive.

Fast-forward thirty years or so. You are retired. In other words, you don’t have a regular source of income anymore. What would you do in case you have to foot a huge expense all of a sudden? If you have access to a good corpus of money, great! But otherwise, you may be in trouble.

Financial independence during your golden years is the main reason why you should start thinking about retirement planning today.

• Rising expenses

Twenty years ago, a cup of coffee didn’t cost more than a few rupees. Today, the same cup could cost you at least Rs 50 in a good restaurant. If you are wondering how it is possible, the answer is quite simple: inflation. In other words, your daily expenses are only going to rise over the years. So even your daily goods such as rice, sugar, coffee and tea would cost a lot more thirty years later. And if you are not prepared for the rise in expenses, you may be forced to change your regular lifestyle to accommodate these changes.

• Rising cost of medical expenses

The other major problem during retirement is the cost of medical expenses. Increase in health problems during old age is a natural phenomenon.Bad knees, poor eyesight, diabetes and arthritis are a few problems that you commonly find among older people. And if you haven’t planned well for your retirement, a substantial chunk of your savings can be spent on medical expenses.

To make matters worse, healthcare costs are spiralling out of control. Some studies show that hospitalisation costs are increasing by 10% every year.

Therefore, the only way to ensure you enjoy a happy and peaceful retirement is through an efficient long-term investment planning.

Create a retirement plan

The journey of a thousand miles starts with a single step. Same is the case with your retirement plan. And the best time to take that step is today.The first step is to identify how much you would like to save for your retirement. This would be based on your current income level and lifestyle. For instance, if your monthly expenses are Rs 40,000, it can be difficult to drastically cut them down after retirement. You might also want to travel or pursue other hobbies. All this can be expensive. Identify your potential expenses and take inflation into account. When you have a rough estimate, you can start your investment plan to achieve your goals.

How investment helps in securing a healthy retired life

One of the main goals of retirement planning is to create a large corpus for your sunset years. You can do this through long-term investments.There are many retirement and pension plans in the market that you can consider. In addition, investing in equities is one of the best ways to do achieve your long-term goals. This is because they have the potential to offer high returns for the long term.

But if you are hesitant to invest in the stock market, equity mutual funds are ideal for you. They are less risky than directly investing in the stock market. Besides, the long-time horizon ahead of you can balance out any hiccups you may encounter on your investment journey.

It is also bestto consider taking out a long-term health insurance to finance any health problems you may encounter in your retired life.

To sum up

In the end, the important thing is to be financially independent in your retirement years. You shouldn’t depend on your children for financial help. On the other hand, it might be a better idea to leave them something from your own side. You can ensure that a part of your retirement savings contributes towards your family’s future.

Millennials Preparing for Retirement? Why It Can and Should Be Done

Millennials are in good stead when it comes to saving and planning for their retirement, no matter what anybody or anything may claim. What’s more, they are in such good stead for a number of reasons. To see some of these reasons as well as some Millennial retirement saving tips, make sure to read on.

Millennials have knowledge of the modern world built in and on tap

In order to do something well, especially in regards to finance, you've got to have an understanding of the most up-to-date practices. You've got to have an understanding of how things work and the impact they make. Fortunately, as would be expected, Millennials have knowledge of the modern day in these ways like no other generation, simply because it is their day. This means they have (or should have) knowledge, even if it is just a working knowledge, of the latest financial matters. For instance, Millennials are the generation most likely to know what Bitcoins are, how much they are worth and what they can be used for. And, they can use this knowledge and implement it when it comes to their retirement saving endeavours and specifically their individual retirement accounts (IRAs). They can do this by first checking out this Bitcoin IRA’s review on Huffington Post, then taking the leap and acquiring a Bitcoin (which, at the moment, will cost $8099.99), setting up an IRA and then putting their cryptocurrency into it. 

But, it is a Millennial’s knowledge of Bitcoin in the first place that would set them up for such a venture, or the fact that they can look up information in regards to them, or any other financial matter for that matter, with ease.

Millennials have time on their side

Yep, time is well and truly on the side of the Millennials in regards to a whole host of things, not just retirement planning. In regards to this specifically, however, if they were to take retirement planning seriously now then they would be able to tap into the fact that their money is not only going to grow with interest like no other past generation, but that it has plenty of time to do so, too.

What this means is that any Millennials out there wondering if they should start saving for retirement now should stop wondering, and start doing. Specifically, they should begin contributing to a Roth retirement fund as soon as they can. This is a type of fund that is paid into and contributed to by both he or she who sets up the fund, and any employers they have or will have in the future. And what the proprietor of the fund should do in order to really make the most of it is ensure that they match or beat whatever their employer(s) contribute to it, whenever they do in fact contribute to it. This will see the money, that is tax-free to withdraw upon retirement, grow immeasurably.

Millennials are in a better position than pretty much all in regards to retirement saving. So, if you are a Millennials, don't let this position go to waste! Get yourself retirement ready, and do it soon!

Cozy And Bespoke Affordable Home Options For Retirement

Going out to a certain part of the world when you’re booking a holiday is the joy of what relaxation is all about. You simply want to shed away all your fears and the troubles that life routinely plants at your feet, and just run away. Whats gathering steam these days are the holiday homes, especially around coastal parts of the world. No more so than in Europe because Greece, Spain and Italy are the kings of the Mediterranean. As such this craze had gone wild and many more people want the chance to live in a luxury home. However even if you’re staying just for a short while, the prices are always going to be up in the higher echelon of the bracket. So what could possibly be the more affordable alternatives to a personal retirement home, that would be perhaps more permanent as well? When you’re retiring, there are in fact quite a few options that can feel as if they are hidden gems.

Coastal cottage

Many coastal communities were born out of the industrial revolution. This was the time where seaports were the main way by which trade could leave and enter the country. As such small, warm and cosy cottages were built as a result, for families that had fathers and husbands that worked down at the docks and ports. A great alternative to a holiday mansion would be a far more affordable but just as enjoyable. The key when you’re retiring is to actually spend money on other things, that are not involved with your home. Such as holidays and cruises, food and travelling. No one really wants to be stuck at home, no matter how welcoming and comfortable it is. This is why a cheap and cheerful cottage by the coast is a brilliant option.

Custom built

The only way for retirees to design a home totally to their liking for a truly bespoke living space, and still have it be affordable is to look into mobile homes. The ability to choose which rooms are going to go where, and completely decide the interior design of your home, even before you get it delivered, can be what many choosy people want. It's also a bungalow so as you get older and the joints start to wear out, rather than putting in an expensive stair lift, the toilets and bedrooms will never be too far out of reach. As the prices for a full home are in the tens of thousands, it's perhaps one of the most affordable options which won’t take a giant chunk out of your savings. On the inside, it's just like a regular home, with proper high-quality building standards adhered to giving the home a rock-steady feel.

Choosing a home that is affordable and still providing enough space to make life in retirement enjoyable, is often a decision so many people leave too late. Living in a big house where perhaps you raised children, can seem too large and hollow as you grow older. Suddenly these two options will start to look refreshing and cosy.

Retirement Planning 101: Where Will You Live?

Speak to any financial expert about retirement, and they’ll pinpoint a few key things to consider. At the top of their list will be your real estate. Or, to be more specific, where are you going to live when you retire?

This is a question because your circumstances have dramatically changed, and this may affect where you choose to live for both personal and financial reasons. Here are some of the most popular/common ideas people have when they retire:

Downsizing

I think this is the most common route to go down when entering retirement. Downsizing involves selling your old family home and moving into a much smaller place. A smaller home means you should find it easier to maintain in your older years, and the bills could be cheaper too. Plus, you raise capital for your retirement by selling your original house and buying a cheaper one. This money can help you when you don’t have a job anymore. Some people will even downsize to an apartment instead of an actual home - the choice is yours. Along with this, there is the idea of downsizing by selling your home and moving in with one of your children. You could have a son or daughter that has extra space in their house and wants to take you in because you can help with the kids, etc. This benefits both of you as you get to downsize and keep all the money from the sale of your house, and your child gets a permanent babysitter!

Community Living

This is a very popular idea amongst retirees as it helps you in many ways. For one, you have this concept of selling your home to raise capital for your retirement. Then, you have the idea of living within a community of people similar to you. Normally, you find plenty of retirement communities in very nice and relaxing locations. Condos by the beach are popular, and there are also plenty of lake homes for sale out in the middle of nowhere for people wanting to break free from busy life. Living in a community environment means you don’t have to worry about being alone and you can make friends and interact with others. This is something that worries many people when they retire as they won’t have any work friends anymore.

Staying Put

Of course, you always have the option to stay put and not sell your home. There are plenty of retirees that choose to do this as they have the future in mind. They want their old family home to be passed down to their kids when they eventually pass away. Furthermore, if they can handle the bills and maintenance, there might not be a reason to sell it. This does depend on how well you’ve planned for your retirement and how much money you’ve got in your bank.

In summary; you can sell your home and downsize to something smaller, you can sell it and go into community living to start a new chapter in your life, or you can simply stay put. There may be other options out there too, but these are the most popular when planning where you’ll live after retiring.

5 Financial Woes You Need Know

Life is never easy financially. It takes a lot of time, work and effort to make the money you need to live a modest and comfortable lifestyle. It takes even more if you want to live a life of luxury! No matter how much money you have today though, you might be setting yourself up to face a number of financial woes in the future. Here are 5 of the most problematic financial woes you never want to face:

Interest Rate Hike

As a saver, you might be jumping up and joy for this one. However, banks rarely pass on this kind of benefit in full. But they’ll definitely pass it on to your mortgage! If you’re on a variable rate right now, be wary of any economic or political turbulence that might initiate a long-term interest rate rise. It will also affect all other kinds of lending. Always keep track of any funds or borrowing that might see changes from banking movements.

Pension Pothole

There have been so many terrible tales in the press of pension funds disappearing. More pensions than you think have seen a sizeable chunk erode from the overall pot. As you approach the age of sixty, you might be ready to think about slowing down your work life shortly. But if your pension is there, you might never see freedom from your job. Start early, and try to pay in as much as you want to come back out. Keep an eye on the fund every year, and be prepared to move it if you can find a better, more secure deal.

Credit Card Black Hole

Credit cards are essential in life these days. But it is all too easy to get into trouble with them. Clearing the entire debt each month is the only way to avoid paying interest on everything you’ve bought. Do you really want to be paying more than the ticket price for your food or clothes? Credit cards typically charge compound interest, so you’ll be paying interest on last month’s interest too. Find a better credit card deal online by checking websites like reviews.credit card against your typical usage. Use a tracker or spreadsheet, and stick to a budget.

Fraud

Identity theft, bank account thefts, and credit taken in your name can all harm you financially. It takes time and a fair bit of running around for you to clear your name on your credit rating when something like this happens. To protect yourself from fraud happening in the first place, make sure you change your account passwords regularly. Never tell anyone your details, and check your credit score each quarter. Make sure your computers and devices are running the most up to date OS and virus protection software.

Redundancy

Redundancies happen. Your response is critical here. Make sure you always have an up to date resume and three months’ salary in savings. If you hear a rumor that your company is winding down, start applying for other jobs. Take agency work while you wait for that next career move to come along. You don’t have time to waste! Take care of you and your family by avoiding these financial woes.

4 Questions You Need To Ask Yourself Before You Turn 60

For the first forty or so years of your life, you will no doubt come into contact with the term “retirement” a lot. However, for the most part, it will go in one ear and out of the other. It will affect you in the same way news of climate change will affect you - it enough to make you raise your eyebrows and start putting cardboard in the recycling bin, but it isn’t pressing enough to make you change your ways entirely.

Well, that fabled thing called retirement is now knocking and your door and so it is time accept the financial decisions you have made up to this point. We’re not saying you can’t change certain things and make a little bit more of a difference to your circumstance, of course you can. However, it is time to start planning your retirement lifestyle based on your current financial situation. It is time to face the music, not live on a hope and a prayer.

You see, most people retire in their sixties. You don’t have to, but most do. That is why we have pulled together a list of factors that you need to consider. So, without further ado, here are the things you need the financial considerations you need to make before you hit the big six-oh.

How Long Are You Going To Work For?

This is the single biggest decision you need to make for the simple fact choosing when to quit work is going to affect your financial security more than anything else. This is when you will wave goodbye to your income and start relying on your savings. Of course, it isn’t just when to quit that you need to consider. It is what sort of retirement lifestyle you are going to lead? How much more could you save if you stayed working until 70? The health benefits of staying connected to the people you work with. And will you quit totally, or will your retirement involve some work?

What Help Are You Going To Have?

This may seem like an odd question, but retirement is expensive and retirement can be, well, unsafe for a few reasons, not least of all your health. That is why you need to know what level of help there is going to be. According to CaregiverConnection.org, you need to consider hiring a financial power of attorney while you are still mentally sound, someone that can make the right financial decision should you become unable. You need to know what help you will have should you become unable to live independently and whether you will receive help from your children in some way or have to pay for care yourself. This part of the debate should also include seeking help from a financial planner, someone that can talk you through your current financial situation and how to make the most out of your finances in retirement. We called it help, but a lot of it could be labeled advice, which gives it the positive spin it deserves.

When Will You Take Social Security?

The importance of this benefit cannot be stressed enough. In fact, choosing when to take your Social Security benefits is only second to deciding on when to retire because it will have one of the biggest financial implications during your retirement. To stress how important this source of income is, for one in four recipients it is their only form of income after retirement. That is why it so important you squeeze the most you can out of it, which is why timing is so crucial as you will see from this article on schwab.com/resource-center. What we mean is, for every year you delay triggering this benefit after turning 62, your monthly income rises from 6% to 8%. Of course, you have to start collecting it when you turn 70, meaning you will get the best deal possible should you manage to hold on until then. This may not be possible or ideal, but it is worth knowing when it comes to making a decision. 

How Much Income Will You Be Guaranteed?

This is an immensely important question to ask yourself. If Social Security is your only source of income then the math won’t take long. However, if you have multiple sources of income then a) count yourself lucky and b) make sure you know exactly how much you will be receiving each month. The same goes for your spouse - the final sum should be your total household’s monthly income. To do this, register with the Social Security Administration so that you can be sure you know what you are getting, speak to the HR department at your current employment - as well as the HR department at any former employers - and ask for a statement relating to your pension benefits. Once you know what you are getting each month you will be able to make an informed decision on whether you want or need to work longer, what sort of lifestyle you could lead with what you have and whether or not you need to scale back.

Are You Prepared For Old Age?

The last thing anyone wants is to run out of money during their retirement. For that reason, we wanted to release a post that offered some tips and tricks. With a bit of luck, you will leave this page with a better idea of what you need to do to prepare for old age. If you’re under the age of forty at the moment, you still have lots of time to put this advice into action. It’s important that you leave no stone unturned if you want to live the good life during your twilight years. Considering all that, read this post carefully before it’s too late.

Creating a retirement plan 

Before you do anything else, you need to create a retirement plan. You can do that alone or pay for professional assistance. The latter option is preferable as it should mean you don’t forget anything important. There are lots of experts out there who focus their efforts on early retirement planning. So, you just need to find someone with a good track record. Read reviews online to ensure you’re not wasting your time. If previous clients were unhappy with the specialist, you can bet they’ve written something negative on the internet. Once you have your plan, it should become much easier to ensure you have enough cash.

Selling your home to raise capital

Selling your home when you retire is an excellent way to boost your capital. Of course, it means you won’t pass on the property to your kids when you die. However, you’ve worked your whole life to pay for that house. So, it makes sense that you should benefit from the fruits of your labor. With that in mind, now is the time to take a look at your home’s market value. If you think it makes sense to sell the property when you hit retirement age, you should do it without hesitation. At the end of the day, that money could pay for trips around the world. You’ll just have to rent some accommodation for your last few years on this planet.

Making smart investments

Another fantastic way to boost capital involves making smart investments. If you have some savings right now, you can get started today. Precious metals are a safe bet because they always increase in price over a long enough period. However, if you want to make the most profit, you’ll have to get involved with the stock market. Don’t stress if you have no idea how it works at the moment. There are plenty of brokers out there who can assist you in making the right decisions. Again, you just need to read reviews and testimonials to ensure you’re dealing with a reputable professional. 

Now you know how to prepare for old age, we hope you will make the best choices in the future. When all’s said and done, you’re going to feel pretty miserable if you don’t have enough money. You’ve worked your entire life, and so you deserve to enjoy yourself when you finally retire. Whatever happens, we hope you’re satisfied with the outcome of your plan.

How to Use a Trust to Reduce Inheritance Tax

After over 40 years of workingyou’re looking forward to your retirement. And why not? You’ve paid your taxes and saved diligently to make sure you’ll live comfortably when you retire. But you’re worried that the taxman may take more than his fair share of your estate when you die. What can you do to prevent this?

One of the best ways to reduce Inheritance Tax (IHT) is to set up a Trust and put some of your cash, investments and property into it. The value of a Trust is deemed to be no longer part of your estate for IHT purposes. But be careful because setting up a Trust can be quite tricky. It’s best to take advice from yourchartered accountant, estate planner or inheritance tax specialists.

If you think your estate might have to pay inheritance tax in due course, then here are a few reasons why setting up a Trust makes good financial sense.

How a Trustcan benefit your IHT exposure

A Trust could be set up to pay for a grandchild’s education, or for the support of a family member who may have a disability, or to help reduce the effects of Inheritance Tax. A Trust is a useful IHT planning tool for the next generation. To understand how a Trust works, let’s look at a typical example.

Here, we have a family where the husband has considerable assets. If he places these assets in trust prior to his death it won’t affect his own IHT liability but it can substantially reduce the amount of tax his widow will have to pay when she dies. The husband can also keep control of his assets while he’s alive.

When the husband’s widow eventually dies, only those assets that have been transferred out of the Trust into her direct ownership are counted as part of her estate and liable for Inheritance Tax. By transferring assets if and only when necessary, it’s possible to keep the widow’s estate below the IHT threshold, even though the Trust may hold a much larger sum.

One of the rules of a Trust states that no potential beneficiary can have an ‘absolute entitlement’ to any of the assets. Instead, all transfers out of a Trust have to be made at the discretion of the trustees and they must all be in agreement.So, when setting up a Trust be very careful who you appoint as trustees. It only takes one person – a stepson or daughter who has a gripe with the widow – to vote against a transfer of funds. It’s recommend that at least two people are appointed as trustees. One of these could be a family member and the other a professional such as a solicitor.

The husband can write a ‘letter of wishes’ to the trustees setting out how he’d like the Trust‘s assets to be dealt with, but because beneficiaries have no absolute entitlement to any assets, the trustees do not have to follow the wishes contained in the letter.Trusts are normally wound up either after two years of the first spouse’s death or when the surviving spouse dies. When this happens, the remaining assets are dealt with according to the wishes letter.

Protect yourself with expert advice

As the rules around IHT exemptions are complicated, it’s best to consult your accountant or solicitor to see how much tax you could save by setting up a Trust. One of the strange things about a Trustis that the Trustitself may, in certain circumstances, have to pay Inheritance Tax, and the trustees, whoever they may be, might be liable to pay income tax at a rate of 45%.

Suffice to say that the rules around Trustareextremely complicated and not to be taken lightly, so don’t be foolish, take advice from a professional in these matters.

Capital Gains Tax (CGT)

If you transfer property into a Trust, be careful because there may be CGT implications. However, CGT does not apply if you establish the Trustin your Will. Speak to your accountant about this.

Life Insurance

One of the best things you can do is take out an insurance policy on your life. This won’t lessen the amount of IHTyour estate may have to pay, but your insurance settlement will definitely make it much easier for your surviving family to pay the Inheritance Tax bill.

The lumpsum amount from the insurance policy could prevent the family home from having to be sold to cover the IHT bill. But if you do take out a policy, make sure the proceeds are paid directly into trust – if you don’t it will increase the size of your estateand as a result more tax will become payable!

This article was written by Dakota Murphey, an independent content writer who specialises in family law.

Retirement! Are You Ready for It?

Retirement can creep up on you before you know it, and you don't want to be caught unawares. As such, it’s important to make sure you have planned for it well in advance. These are some of the things you might like to consider when your retirement is impending.

Where Will You Live?

You've got to think about where you're going to live when you finally do retire. If you are still pretty able bodied you might decide you want to stay at home. There are also family members you could stay with if necessary. But, if you want to be in a community among other retirees you should consider moving into a retreat or retirement home. These are often kitted out to suit the needs of elderly retirees, and they have fully trained and professional staff on hand at all times. Think hard about this, and make a decision about whether it’s the right course of action for you.

Are Your Finances in Order?

One of the major factors you need to get right when you retire is your finances. A lot of people don't bother sorting out pensions, or their money for retirement. And they can run into all sorts of problems as a result. You have to make sure you do as much as you can to ensure your finances are in order. That means you've got to plan as much as possible now, so you are financially stable when you stop working. A lot of people consider hiring financial planners to help them with this, and you should consider doing the same. The years creep up, and retirement could be on you before you know it. The problem is that you need to understand that putting money away each but month is crucial. But finding the time to do it is often a big ask sometimes. If you can get this aspect right, you will enjoy a much better retirement as a result.

Keep Your Mind Active

They say that when you have something to do to keep you occupied your mind works better. And when you are retired you need to make sure you keep your mind as active as possible. The mind can go very quickly when you reach your later years, so you have to make sure you do things that will keep you as active as possible in a mental sense. For instance, you need to understand that hobbies and interests are crucial when you retire. You're no longer working, so you still need something to stimulate you. And hobbies can play a massive part in this process. There might be something you've always wanted to do, and now you have the chance to. Retirement is a good opportunity to keep yourself active physically and emotionally.

Retirement comes to us all, and we need to understand exactly what it is that we need to prepare for. We will no longer be working or receiving an income, so there are a lot of considerations that have to be involved with this. Use the points on this post to try to come up with some of the best ideas to help you with your retirement. This is something you've got to sort out as best you can before it’s too late.

Civilian Life: Your Finances After Leaving the Military

When you decide to retire from your military career, you can find yourself facing some interesting financial issues. Your financial situation can begin to look different for a number of reasons. The major thing to look at is what you're going to do next if you're not planning a complete retirement. However, there are other financial factors you need to take into account when you return to civilian life. They can range from your savings and retirement funds to accessing any military benefits you might be entitled to. If you're planning on leaving the military, consider these important issues.

Before You Leave

Ideally, you can start to plan your exit from the military on your own terms. While that's not always possible, you can take advantage of it when it is. You know you have a year or perhaps just a few months before your time is up. During that time, you can start to create a plan and take action for your civilian finances. It could involve a number of things, from applying for jobs to putting aside some savings. It would be excellent if you could walk right into a new job. However, you might have a few months or perhaps longer when you will be job hunting. Setting up a transition fund will make this easier.

Accessing Military Benefits

Another thing you might need to consider when you leave the military is whether you're entitled to any benefits. For example, you might want to apply for veteran's disability benefits. Injuries or illnesses you suffered while on active duty may entitle you to these. However, you might be concerned about making an application. Perhaps you're unsure if the VA will treat you fairly or maybe you have already had your application turned down. Enlisting a lawyer can help you if you need to fight your case. If you visit online at brownandcrouppen.com/social-security-disability/veterans/, you can find out more about it.

Finding Work After Leaving the Military

Finding a job after leaving the military can be difficult. You might be unsure of what you want to do or struggle to get employers to recognize your skills. You should start looking for work or perhaps thinking about retraining as soon as you can. If you have been in the military for years, you might find that your job hunting skills are a little rusty. You could try taking a class to help you improve your resume and your interviewing skills if you think it will help. Networking can also be a great help when you're looking for work.

Decide What to Do with Your Savings

Don't forget to consider your savings. If you took advantage of the Thrift Savings Plan, you need to decide what to do with your funds. You can leave them in your TSP account, roll them into an IRA, or roll your money to your new employer's plan. Whichever one you choose, you won't have to pay any tax.

Prepare yourself financially before leaving the military if you can. You might experience a transition period when your finances are tricky to handle.

Debt-free By Retirement? It Is Possible!

Planning for retirement is something that everyone needs to do. If you want to be able to stop working, you need to know how that will happen. You want to support yourself in your old age, whether you're healthy or you need a bit of extra help. One goal that many people have for retirement is to be debt-free. They want to pay off their mortgage, most of all. Apart from that, they want to get rid of any other debts, from car financing to credit cards. You shouldn't have to worry about debt when you reach retirement age. You need to be able to concentrate your funds on your living expenses. The following tactics will help you prepare for a debt-free retirement so you can focus on better things.

Start with Your Mortgage

For most people, their mortgage is the biggest debt they have and will ever have. It takes a lot longer to pay off than most other debts. In fact, many people can spend their whole working life first saving for and then paying off their mortgage. When you reach retirement, you don't want to still be making mortgage payments. Owning your own home is an excellent way to prepare for retirement, giving you a valuable asset. But it's not so great if you're still paying the mortgage. You might be able to start by reducing your mortgage. Visit a site like http://www.rpmqueensland.com.au/reduce-my-mortgage/ to find out how you can do it. It's also all about the timing. You can use an amortization calculator to work out your payments. Using these tools, you can time your mortgage to be paid off by your retirement date.

Downsize to a Smaller Home What if it looks like you won't pay off your mortgage before retirement? You can't work out any way that it might happen. If this is looking like the case, there is another option. Many people downsize their home when they retire. However, you don't have to wait until then. Is your home too big now that the kids have moved out? If you're still paying your mortgage, why not downsize now? By buying a smaller house, you could reduce or even eliminate your mortgage. If you're willing to downsize now, it might not only end some of your debt but give you some extra savings too.

Reduce Your Spending

When the kids leave home, it's tempting to start spending more money on yourself. You can feel like you have a bit more financial freedom. You might go out to dinner more or enjoy some more activities. However, it's important not to go too crazy when you're preparing for retirement. If you want to pay off your debts faster, you should be doing all you can to make larger payments. That means spending less elsewhere so that you have more to use for repayments. There are hundreds of ways to cut costs, from eating out less to switching your energy supplier. Of course, downsizing to a smaller home can also help to reduce your expenses.

Set Up a Second Income Stream

After reducing your spending, you might consider if you can bring in some more money. An income stream specifically for paying off your debts isn't a bad idea. When it's time to retire, you could even continue it for extra money. If you're doing something on the side, it will only be a few hours and help to keep you busy. You might have more disposable income so that you can travel or indulge in a hobby. Of course, if you're currently working full-time, it can be hard to bring in more cash. But you might be able to find the time for a part-time job, some freelancing or perhaps even setting up a small business. Find a guide to starting a business on the side at https://www.entrepreneur.com/article/270275.

Work Longer or Consider Semi-retirement

Some people hope to retire as soon as they are able to. However, many people feel that they can or should work for longer. For example, perhaps you can't picture having a completely open day. A lot of people struggle with not having to go to work once they retire. If you think paying off your debts might take longer than you hoped, staying at your job for another couple of years is an option. It might not be ideal, but it could be better for you in the long-run. Semi-retirement is another option. You can reduce the amount that you work without giving up work entirely.

Consider Concentrating on Debts Above Retirement Savings

This is one strategy you might want to try for a short while, but you should be cautious. If you take care of your debts now, you can have more money to put away for later. If you think it makes sense, you can reduce your retirement contributions for a period. Any money you would have saved or invested for retirement can help repay your debts instead. If you are going to do this, make sure you have a plan. You should decide how long to do it for and how it will help you.

Organize Your Debts

If you want to pay off your debt by a certain date, you need to get everything organized. You can start by prioritizing everything you need to repay. A good way to do this is ranking them by their interest rate. Experts say that paying off debts with higher interest rates first is the best tactic. You should be able to pay your debts faster using this method. You can also find out if it's possible to reduce the interest rates on any of your debts. For example, a credit card balance transfer could enable you to move debt to a card with lower interest. You can work out a payment plan to figure out what you will repay and when. You should be able to come up with a pretty accurate picture of when you could be debt-free.

You might still take on some debt once you retire. But being debt-free when you reach your retirement could put you in a better position to borrow.

Trouble Ahead: Six Signs That You're Not Financially Secure

We all want to be financially stable and secure, but many of us aren’t. It’s easy to go through life without even realising what we’re doing wrong. But here are six sure-fire signs that you're not as financially secure as you should be.

1. You Have Zero Retirement Savings

One of the things that it’s easiest to ignore is the future. But saving for your retirement is vitally important. If you don’t have enough money to live comfortably when you retire, you’ll regret not saving earlier. So, if you have zero retirement savings, it’s time that you did something to change that situation. It’s a change that has to be made before it’s too late.

2. Finances Cause Arguments

If you and your partner often get into arguments over money, this is a sign that all is not well. Money can be the thing that breaks relationships, and you don’t want it to come to that. Because of how important money is and how damaging a lack of it is, it’s not uncommon for arguments to break out. You should speak openly and clearly with your partner when it comes to financial challenges.

3. You Have Too Many Credit Cards

Credit cards act as a crutch that many people rely on. When your entire financial situation is based on credit cards and paying them off at the end of each month, you have a problem. It might seem like an easy and convenient way to manage your money right now. But you might not think that way once your money is stretched more and you have difficulty making repayments.

4. You’re Too Reliant on Your Overdraft

Having an overdraft can help you when you’re in short-term financial trouble. But it’s not there for you to rely on it too heavily. You should learn more about bank overdraft, and then you will be able to use it better. When you are too reliant on it, you will find that you put less effort into balancing your budget, and that’s not a good thing. Once you start to use it right, your finances will become healthier.

5. You Pay Your Debts the Wrong Way

Being in debt is not a disaster in itself. Many people have debts and still manage to achieve financial security. What really matters is how you pay off those debts and how quickly you rid yourself of them. You should always focus on paying the smallest debts first. When you do this, you can minimise the number of debts and pay them off more quickly.

6. You’re Always Asking for Help

It’s not a bad thing to ask for help when you need it. But if you need it at the end of every month, then you’re probably doing something wrong. You should be thinking about what you can do to stand on your own two feet and not rely on other people to bail you out. Eventually, there’ll come a time when your parents or other family members can’t give you the financial support you need.

Retirement Planning: 5 Online Tools You Should Know About

There’s a lot to think about when it comes to retirement planning. Along the way, you’ll need plenty of help from expert sources, and the internet has made this easy for us. It’s filled with plenty of tools (mostly free!) that can help to educate us further. We’ve scoured the internet for some great tools that will come in useful for many retirement planners. Let’s take a look at some of the best ones.

Personal Capital

If you haven’t heard of anything else on this list, you’ve probably heard of Personal Capital. It’s one of the most popular software packages on the market, and it’ll give you a variety of retirement planning tools. Luckily for you, it comes as a free package. It’s also available on mobile devices if you want to manage your retirement plans on the go.

Blueprint Wealth SMSF Quiz

If you haven’t heard of SMSF’s yet, it’s time you started learning about them! Blueprint Wealth offer expert SMSF advice via their online quiz tool. It will analyse whether you’re suitable for getting involved with SMSF’s or not. It takes about thirty seconds to complete, and you can seek additional support if you find that you’re interested.

Military Retirement

This is an iOS app that will come in incredibly handy for anyone that has been involved in the military. It works to inform personnel of their benefits upon their retirement from military service. It’s a comprehensive tool that should provide you with everything you need to know about your retirement plans. It’s also getting fantastic reviews on the App Store, currently holding a 4.5-star rating. If you’ve been involved in military service in the past, this is an app that is definitely worth a download.

The Flexible Retirement Planner

This is a free retirement calculator that comes with a whole host of powerful features. Ultimately, there are plenty of retirement calculators out there, but this one stands out for its depth and intuitive UI. It’s a downloadable application that works on Windows as well as Mac & Linux operating systems. Alternatively, you can launch it via an online browser using a Java interface if you’d prefer. Give it a try and get your hands on one of the best retirement calculators on the web.

Retirement Countdown

OK, so this is a more light-hearted one than the rest of our suggestions. If you’re planning for your retirement, you always want to know how far away you are from that magic date, right?! That’s what Retirement Countdown can do for you on Android devices. Ultimately, it’s an incredibly simple countdown clock. There are plenty of alternative options on the market too, and most of them do the same basic task. Despite their useful nature, if your retirement date is fifty years away, they might be a bit too demoralising!

Of course, we’ve only scratched the surface of what’s out there. You’ll find tools for anything you need when it comes to saving for the future. Who said retirement planning had to be difficult?!

Preparing Financially For Retirement: 6 Tips

Retirement planning is a tricky business. There are plenty of things you should definitely be doing, and plenty of things you should avoid, at all costs.

And one thing to ensure you’re doing is preparing financially. Given how hard it is to find a job, at any age, ensuring you have enough cash to last you through your senior years is vital.

And, rather than just tossing some spare change in a pot every week, you have to take things to a slightly more advanced level.

It’s never too late to start preparing - but the sooner, the better! Here’s what should be on your list.

1. Multiple pensions

Most of us will be entitled to a state pension, but very rarely is this enough. This will allow you to live, but at a basic level, with very few luxuries involved.

Which is why setting up your own private pension would be a wise idea. Alternatively, enquire with your current employer, to see if they run such a scheme.

2. Invest

You have to start playing the long game - today. By investing some of your cash for retirement, you can ensure you're met with a lump sum when that day comes. As a result, an uncomfortable retirement just got transformed into a happy one!

There’s no shortage of options either. You could buy shares in an up and coming company, to sell them on when they become of more value. Alternatively, you could look into a self-directed IRA, which gives you more control over your investment.

There are plenty of ways to get advice on that investment, too. From an IRA custodian provider to a financial adviser, ensure you’re getting the help to keep you making the right choices!

3. Alter your insurance

As you get older and you get less and less dependants, it’s unlikely you’ll be needing that life insurance. Instead, as your age keeps rising, it’s far better to look into critical injury and illness insurance instead.

Contents insurance may also become less applicable to you as well, as you rely less and less on material goods. If you’re moving into a senior home, then you won’t need any kind of buildings insurance whatsoever.

4. Get rid of debts

It’ll be incredibly hard to pay off any debts once you retire. Without a steady source of income, your debts will start to pile up and you’ll be powerless to stop it.

So act now! Do whatever it takes to ensure you’re free before you hit retirement age. You’ll regret it if you don’t.

5. Review your will

Your circumstances may have changed over the years. You may have come into more money or assets. You may have a new child, or a new grandchild. All these changes need to be factored into your will where possible.

6. Check benefits entitlement

Retirees are entitled to a select amount of benefits, in most cases. Some are about your physical and mental state, while some are based on your wealth. By knowing which benefits you may receive, you’ll be able to adequately budget for your retirement.

5 Ways to Boost Your Retirement Savings

It’s never too early to save for retirement. In fact, the earlier you start saving, the better as current information regarding US Social Security raises multiple questions regarding the program’s solvency for future retirees. Thus, it’s up to you to take responsibility for your future and start saving now.

Here are 5 Ways to Boost Your Retirement Savings:

1. Create a Budget and Set a Goal

There’s more to retirement than mindlessly stashing money away in a savings account to which you pay little attention. Create a plan for your retirement by creating a monthly budget and settinggoals. Start by asking yourself where you want to be financially when you reach retirement age, and then educate yourself on the best way to achieve those goals.

2. Start an IRA

Individual retirement accounts are perfect for any individual looking to start their retirement savings, and you have the option of either a traditional IRA or a Roth IRA to choose from. Each have their benefits, and a certified financial advisor can help you decide which one is right for you. What’s more, you can roll over any retirement savings you have from old jobs into these retirement accounts so that your money continues performing for you.

3. Participate in Your Employer’s 401K

If you aren’t participating in your employer’s 401K plan for retirement, you should be. Many employers offer these plans with matching contributions. Every pay period, you put a percentage of you paycheck into the savings plan and your employer matches your contribution. Keep in mind, however, that employers typically require a minimum amount with regards to your contribution in order for them to start matching, so find out what that is and take advantage of it.

4. Cut Needless Costs to Your Lifestyle

If you are sufferingcrushing debt from multiple bills, this can severely disrupt your ability to cut costs in the long run. As such, there are ways you can consolidate you debt and eliminate needless expenses. In fact, some loan institutions offer you the ability to receive a 2000 cash loan to help you combine you debt so that you only need to focus on one bill a month. Remember, however, this is a loan. The faster you are able to pay it off the better so you can free up cash for retirement.You don’t want to wind up in an endless cycle of debt. Find where to cut expenses in your budget, and start cutting. 

5. Apply for a Better Paying Job

Applying for a better paying job offers you the chance of more cash to stash away in retirement savings. If you have years of experience in a field that can transfer over into a better paying job, take advantage of the opportunity.

Overall, remember: be resourceful when it comes to saving money. There are many ways to boost your retirement fund, and the above list is just a small sample of what you can do.

Other Options That Are Available to get finances

Annuities: These are insurance policies that offer payments at fixed intervals or lump sum at the time of retirement.

Stocks & Mutual Funds: You can choose to invest in many company stocks, however this needs skills as the high probability of great returns is accompanied by high risks too. When one is not very confident about able to manage the trading it is best to enter the market through borrowers funds. These are managed by professionals and the risk associated is lower too.

Bonds: These debt instruments are securities in which the investor lends to a corporation or the government for a certain interest payment and there is a guarantee of the repayment of the bond’s face value.

Cash Instruments: There are many low-risk and relatively short-term options like CDs, that offer fixed rates of interests.

DRIPs: These Direct Reinvestment Plans involve reinvesting the returns or dividends to buy more shares of that corporation.

Exchange Traded Funds - ETFs are traded on stock exchanges and offer unique investment options. 

Whatever instrument you may choose to plan out your retirement benefits as early as possible. This is because you’ll have more time to achieve your savings goal and hence can explore a greater variety of investment tools and more time to recover losses, if any and of course, you can compound your saving by reinvesting your returns. This is most useful when you have a good amount of time available at your end.

Calculate & Save

Most people do not pay attention to their expenditure or their cash flows or do not have any understanding of where they are headed to. One can start by making an assessment of your net worth. This can be found out by deducting your liabilities (what you owe) from your assets (valuables that you own). The difference amount between your liabilities and assets gives a clear indication of your net worth and give you a clarity of goals after factoring in your net worth.

Therefore it’s best to set yourself a specific goal or you’ll never be able to meet the same. When this is missing neither will your efforts remain directed or measurable nor will you find enough motivation to keep up your savings and make the right decisions. You may even think of writing down a SMART (specific, measurable, attainable, realistic and time bound) retirement goal for yourself. You may want to define your retirement age, your financial aspirations like where you’d like to live, how much you’d like to spend, post your retirement. This will all add up to a figure which you’ll be chasing to achieve.

Don’t Let Emotions Guide Your Financial Decisions

You may not even realize the extent to which emotions can guide your decisions even when investments are concerned. When your investments are doing well you tend to be overconfident and often overlook the risk factors and end up making bad decisions. And when the investments aren’t performing, you’ll probably be risk averse and avoid even attractive and may not make enough money over a period of time.

Therefore, as far as your investments go, it’s best to keep your emotions in check and take a very realistic and dispassionate look at the opportunity and remember that there will be a risk element and not all will be performing at the same level. Keep your portfolio balanced to mitigate the risk.

The other important factor to look out for is the fees that you pay. These are the charges attached to the investment options and often eat away your profits, reducing your investment’s attractiveness. These may come in the form of Administrative charges, transaction fees, loads etc.

Start Now, if Still Unsure, Ask an Expert

Think about it truthfully, are you postponing your retirement savings just because you are not too sure of the ways and options? Then it is best to contact a professional and get the necessary help at the soonest. You may even decide to do some research or pursue an educational course to get your knowledge and skills updated.

Whatever way you may choose, as has been reiterated, the essence is to start as early as possible. This will give you enough time to plan for a comfortable after retirement life for your family and even give you some cushioning against life’s unpredictable twists and turns!

Defining and Explaining Annuities

An annuity, in brief and simple definition, is an agreement where in return for a certain fee, an insurance firm provides a steady stream of cash to the person who makes such payment. Annuities are especially appealing to individuals planning to retire and continuously receive income. There are actually many different kinds of annuities and two of its most popular forms are fixed and indexed.

Fixed Annuities
Fixed rate annuities are actually the least risky of all annuities. Fixed annuities provide an assured ROR (rate of return) for a span of time. The assured initial investment return makes it an ideal investment for people with very low risk tolerance or those who want to have access to their funds in a short period of time. Here you get a respectable return and it is tax deferred up until you start to withdraw your money.

These annuities can either be deferred or immediate. Immediate annuity begins making payment the instance the money is deposited. With deferred annuity, payments begin at the end of a particular period that was agreed upon, or once the annuitant reaches a specific age.

Fixed annuities are ideal for elder investors who want a safe and sure return and are not that keen on managing investments.

Indexed Annuities
An indexed annuity typically encompasses a rate that is attached to a monetary market index, an equity market index, in most cases. The benefits of this type of annuity is a potentially higher average return as compared to fixed rate annuity or fixed profit assets, a risk minimizing aspect which permits you to renounce higher returns in trade of a guaranteed return minimum, decreasing the discrepancy of returns when it comes to both low and high end.

An index annuity makes for an ideal fit for some people, yet not for all people, based on the value in which the person investing places on risk reduction as well as yields.

Choosing the Apt Annuity for You
Prior you make the decision on which particular type of annuity is best for your financial goals, retirement as well as needs, make sure to study the different options available to you and seek the help of an expert financial adviser to explain all of the pros and cons of each type of annuity that best matches your particular situation. Evaluate the advantages as well as the disadvantages of the kinds of annuities that the expert explained and then make your choice.

Rogers is a freelance writer that specializes in various financial topics like structured settlement, investments and money management.