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.

Making The Best Of A Bad Situation

When it comes to money, it’s either going to be a good or a bad situation. Everyone will have gone through both sides of the situation at some point in their life. But what do we do when things go bad? We either have an absolute mental breakdown, or try and get through it as best as we can. This happens all the time, but none more so than with money. If you feel as though you’re someone going through a bad stage at the minute, just relax and take a read of these tips, they should help you get through any bad stage with money.

Ask For Help

This is usually people's last resort. They’ll try every type of loan, credit card, online advice, and before you know it they’re worse off than they were in the beginning. Don’t let this be you. Unless you’re in a good place with money, you shouldn’t really be using a credit card or loan. Credit cards are only useful for building up your credit score. The best thing you can do is ask family or friends for some short term help if you need to lend some money. They’ll have no interest rate, and you can come to an agreement of when to pay the money back so things are a little more relaxed. Whatever you do though, don’t borrow more than you can pay back just because it’s family. Be respectful and always pay what you owe back on time.

Prepare

Preparation is key if you want to get through a bad situation. As you get a little older things start to crop up that create bad situations. Health issues, pension cuts, whatever it may be it’ll cause you stress that you don’t need. As we become senior we’ll obviously understand that we won’t be round for much longer, the best thing you can do to protect you or your family is life insurance. It’s preparation like this that helps keep everyone from getting into a bad situation. This post discusses the different types of life insurance you can purchase. But whilst we’re talking about preparation, we also need to talk about other life events. Birthday’s, Christmas etc. they all require a lot of money, especially if you have children. This is where the dreaded credit card can get you into trouble unless you’ve prepared. Work out how much you’d like to spend on each event and make it strict. Then divide the money but between the amount of months until said event, and begin to save. It’ll help you out so much in the long run.

Don’t Stress

Money is one of the leading causes of stress and anxiety for people all over the world, but this only makes things worse. There are so many people out there that can help you get out of the situation you’re in, so don’t bottle it up and stress yourself more, talk to financial advisors, or even friends and family and get the situation resolved.

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!

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.

Which areas of the UK are best at saving for their retirement?

Pensions are a hot topic in the media at the moment but who is saving the most towards their pension pots each month? With this handy infographic below, from personal pension provider: True Potential, you can find out more. 

Infographic from personal pension company, True Potential

Old Age And Illness: What It Means For Your Money

As we approach old age we need to think about our finances. Understandably, it’s often the last thing we think about. When we’re in good health we don’t worry about what will happen to our money. This means that our finances can be left in disarray when we pass away. Don’t wait until old age or illness are upon you, make the most of your savings before that point. There are a few things you can do to make sure your money is used how you want it to be once you're gone... 

Get Your Finances In Order

The first step is to get your finances in order. This seems like quite a general statement but what it actually means is organizing the remaining money that you have. You need to know how much money you have. Of course, you might know how much is in the bank, but what about money tied up in property or business? Managing your money when you are well and able is a good first step. It becomes increasingly difficult to make decisions once you are ill or considered unfit to handle your own account.

The good news is, organizing your finances needn’t be too difficult. Start by filing all of your financial documents in one place. This will make it easier to keep a record of things. The make a list of all your expenses and incomes. Work out which, if any, debts you have to pay, what you’ve invested and what is saved. Having all of this information will be incredibly useful if someone else has to take over and manage your affairs. Don’t be stuck in a situation where only you know your own financial situation.

Managing Your Estate

Planning what happens to your estate when you die is simple and straightforward, but too many of us don’t do it. The problem is, if we don’t have legal documents which outline who gets what, it can lead to messy legal proceedings. Probate lawyers from IRB Law will be able to give you more information about what’s involved in planning your estate. In essence, you will need to prepare documents which determine who inherits your money and property. You can even ensure that the amount of inheritance tax paid on your estate is minimized. So this is a very important step to take. 

Funding A Funeral

Unfortunately, loved ones are sometimes forced to make financial decisions about funerals in the midst of their grief. To avoid these kinds of situations and expenses, you can cover the costs before you become ill, or even before old age. Dedicated savings accounts are one way to save money. Alternatively, some life insurance companies cover the costs of a funeral.

Estate Planning For Dummies

At some point, all of us will have to do some type of estate planning (unless of course, a technological singularity means that we get to live forever) - and it’s never too early to start thinking about it. There’s a perception out there that estate planning is only something the rich have to worry about. However, even if your estate is small, you still might want to consider who gets what. After all, tax issues can mount up quickly without significant planning.

Offset Taxes With Insurance

The beneficiaries of your assets can end up losing a lot of money when they receive inheritance assets, thanks to estate and income taxes. However, many of these losses can be offset by having life insurance in place.

To understand how, consider the following example. Suppose that your estate planning attorney estimates that you owe more than $200,000 in income and property taxes. All you need to do is purchase life insurance to cover than amount to be paid to whoever is going to receive your assets. This will ensure that they receive the full value, despite the government taking a cut since life insurance proceeds are tax-free.

Declare Who Gets What

Most people just assume that if they don’t write a will, then their estate will be divided up and given to their family. And while this is true, there’s nothing in the law that says who should get what specifically. For many people, this can be problematic. For instance, you might want to pass on a classic car to a particular member of your family. But if you leave the government to divide up your estate, there’s no guarantee that the correct beneficiary will receive the car.

Another reason to declare who gets what is if you plan to give money to people who aren’t your next of kin. In these situations, you’ll need to explicitly declare their share in a witnessed, formal will.

Choose How The Money Will Be Spent

You may plan to have some of your assets cover particular expenses, like the cost of a new car or college education. If that’s the case, then you might want to place some of your money in a trust so that it is earmarked for a particular project. Trusts ensure that the person receiving the money - the trustee - spends it on the thing that you say they have to spend it on.

Minimize Income And Estate Taxes

If you’re leaving a substantial estate, there’s a good chance that you’ll owe a significant amount of property and income taxes. Though these taxes can be burdensome, there are ways to reduce them. For instance, one way to reduce the amount of tax is to leave your taxable assets to institutions, like charities, which are tax exempt. You can then give your other beneficiaries all your assets which are tax-exempt, such as after-tax savings, life insurance payouts and retirement accounts.

To reduce your overall tax burden, you’re also able to give beneficiaries tax-free gifts up to the value of $13,000 a year.

Planning for Retirement

When you’ve worked for the majority of your life, retirement can be a massive change if you’re not prepared for it. The idea of waking up one morning and having nothing to do and no-where to go may seem appealing for a while. Who doesn’t need a holiday? But, after the initial ‘holiday’ period, it can feel like you’re unwanted or unable to achieve anything. Here are some tips on how to emotionally prepare for retirement.

Take Charge

Unless you find ways of keeping yourself active and continuing to develop your skills, you could easily fall into the trap of sitting in the same place every day, doing the same things. Just because you’ve spent your life working in one career, it doesn’t mean you don’t have other things to offer. Now is the time to explore and be creative.

Don’t Hide Away

There may be an initial period where you want to just rest and the make the most of not having to get up in the morning. However, after a certain time it’s important to see people and get involved with things that you enjoy. If you do find that you’re feeling low or you’re getting anxious about going out, you may want to read some tips on battling anxiety and depression.

Start Saving

Do you know how much you’ll be entitled to when it comes to your pension? It’s always a good idea to find these things out, perhaps by using a financial advisor. You may want to start an additional savings account so you can put money away for the luxuries you may not have with your current pension pot. If you’ve been in the military you may want to look into buying back your time.

Join an Exercise Class

Joining an exercise class isn’t something you do for exercise alone. Although the exercise will improve your health and general well-being, it can also be the perfect way to meet friends. It’s something you can carry on with during your retirement if you feel fit enough, and if you don’t you’ve made friends that you can still meet up with when you have more times on your hands.

Plan Things in Advance

If you know there are going to be particular days when you have nothing to do, get things planned in advance. There are plenty of things to do that don’t cost much. Now, more than ever, there are groups for retirees that get together weekly to chat, go on trips or just tuck into some free cake.

Don’t Shy Away from Technology

Technology is advancing every day, and sadly, many retirees don’t take the opportunity to keep abreast of what’s going on. The internet can open entirely new worlds and the latest gadgets can mean you have music, contacts, books and much more at the tip of your fingers. Make sure you have the same access as everyone else, even if you have to learn something new.

With these tips, slipping into retirement should be a breeze.

Your 401(k): Things To Think About

Preparing for retirement is an issue that we need to think about, no matter what our age. Aside from the emotional aspects of no longer going to work all day, there are plenty of financial. Whether you decide to go to college or go straight into building a career, saving for after you finish work is essential. You need to be aware that while the money you make is providing for your current lifestyle, it also needs to provide for you later lifestyle also. Here are some ways to get the best out of your retirement plan.

Remember to look at the 401(k) benefits as part of your job offer

The primary first point is that when you get offered a job, to look at the 401(k) plan as well as other benefits. It can be easy to get lured into what sounds like a lucrative offer with an attractive salary and good healthcare, but bear in mind there is more to the overall package than that. Employers are increasingly upping their benefits plans to stay competitive in the job market and to attract the best employees. For example, your employer may offer to match your contribution up to a certain percentage; this will vary from company to company.

Once you have secured a job with a good plan - take it out!

Once you have secured a job with a good plan - take it out! A point that may resonate with the employees in their 20s and 30s - retirement is a long way off! Retirement age is increasing; you have plenty of time to take out a 401(k) and get financially secure. Right? Right?! No. It is never too early to start planning for your future. It may seem like a long way off when you are 25, but there are a lot of expenses to think about when you are older. As stated, a lot of companies are increasing their healthcare benefits and retirement plans for current employees, but conversely, you will struggle to find a business that includes post-retirement healthcare. You can expect costs of over $245,000 for premiums that come with Medicare, even with Medigap insurance. Also, there is the added benefit of decreasing your state and federal taxes when participating in a plan.

Check the in-depth features

You will probably only get the basic overview of the 401(k) functions before starting at a company. Once you start and commit to the plan, you will get a better idea of what in entails. It’s important to know the basics, so you are aware of what you are dealing with. There has been a lot of legislation, some of it recent, to help safeguard you as an employee when participating in a retirement plan. In light of this legislation, your employer is likely to have consulted a third party, an example being the Carnegie Team, to ensure they do not fall foul of the law. This gives an added layer of protection to you when you sign up.

Overall, it is essential to make sure you have a fund for when you no longer have a steady income. Alongside your retirement plan, you could consider ways to have an emergency fund also, to help on a rainy day.

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.

Not Sure What To Do With Your Savings? Here's Some Ideas

If you have been very careful to save as much money as possible over the past few years, the chances are that you have managed to build up a nice little nest egg. But now comes the big question: what exactly are you meant to do with it now? You will be happy to hear that there are a few different options. Here are some of the most common.

Invest It

There isn’t much point keeping all your savings in a bank account. Even the high-interest accounts don’t pay out much interest. If your cash stays in a savings account, it will hardly grow at all. For this reason, many people choose to invest their savings. Sure, there is a chance that they might decrease in value, but if you stick with your investments, they should increase over time. There are plenty of ways in which you can minimize the risk of investing, though. If you are still put off by the idea of putting your money in a risky investment, you should speak to a wealth management adviser. They will be able to figure out which investments are the best for you and your money. You can find out more about wealth management advisors by taking a look at Ian Filippini LinkedIn.

Get Rid Of Any Debt

Do you have any loans or credit cards that you need to pay off at some point? It is better to simply bite the bullet and pay them off right away. Not only will this get your lenders off your back, but it also means you don’t have to worry about all the interest that was being added t your debt each month. Over time, this interest could build up into a sizeable sum, and you will be left with a considerably higher sum to pay off than what you lent in the first place.

Pay More Towards Your Mortgage

Did you know that you can overpay on your mortgage payments if you want? This is another great way to save yourself from interest. Many people choose to overpay their payments whenever they can. That’s because it will lower the overall amount that they need to repay. And the lower the total amount, the lower the interest will be that gets added to your mortgage each month.

Build Your Retirement Savings

It is incredibly important to start saving towards your retirement whenever you can afford it. If you already have started, it is a good idea to supplement your regular payments with cash from your savings. If you haven’t already got a private pension, it could be a good idea to use your savings to set one up. You will find that this brings many benefits, such as tax benefits. Depending on your income, these benefits could add up to 50% to your monthly payments!

Hopefully, you now have a better idea of some of the wise things you can do with all your savings. And you will be able to watch your nest egg grow even further!

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.

Crucial Advice To Ensure Financial Security For Your Loved Ones

Death is something no one likes to think about. The problem is, if you don’t think about it, you can leave your family in a bad financial situation when you go. It’s crucial that you plan effectively, and leave them financially secure for the future.

So, here’s come advice on what you can do:

Write A Will

The best thing you can do is write a will and bequeath your family money/assets. Most people are very conwell-prepared quitclaim deedfused about the concept of a will. If you die, and you haven’t written a will telling people where your assets will go, then your family might not get them. Especially with things like stocks and shares. Furthermore, a will helps you allocate funds to separate people. So, you can give a percentage to your children, siblings, etc. Most importantly, it provides you with the best opportunity to make your loved ones financially secure. Plus, it can stop any arguments about who gets what. If it’s in your will, they’re legally bound to get what they’re given. You can find sites like http://money.usnews.com/ where you can find will writing advice. It’s important you know how to write a will, and make all of your intentions clear.

Get Life Insurance

Taking out a life insurance policy is essential if you want your loved ones to have a secure financial future. What this means is that when you die, your family get money from your policy. If you pick the best policy possible, you can ensure they get as much money as possible. A lot of people neglect to take out a life insurance policy, as they don’t want to pay for it. To this I say, think of it as an investment for your family’s future. There are plenty of places like cheaplifeinsurancenoexam.net where you can get more info on quotes, etc. I strongly advise you to shop around for the best deal out there. Don’t settle for the first one you see, compare them and make a pros and cons list of each insurance provider you look at.

Start A Private Pension

If you’ve been working for a certain number of years, you will be eligible for a pension. This is provided by the government, and you get it when you retire. If you were to die, this pension would go to your spouse, and help provide them with income. What you also need to do is start a private pension fund too. You can set this up with various companies, and start saving more money. It works like a regular pension; you just use it as a secondary source of retirement income. I think it’s important to do this, as it can help provide an income for your family when you pass away. Therefore, they can feel more financially secure.

Provide A Home

Rental fees for apartments and condominiums really cost a lot because it is a monthly expense. Some even have additional charges. So you can make big savings by investing for a real estate property. It is also a great gift for your loved ones especially your children. You may transfer the property to them through a well-prepared quitclaim deed and let them take it as their own. Eventually, if they plan to move to another place, they may sell it for additional investment or have it rented by others for continuous income.

As well as these tips, I suggest you put an emphasis on saving money. The more you save, the more you’ll have in the bank when you die. For money saving advice, check out my article here http://www.yourfinanceformulas.com/. It should help you become more frugal, and save more money for your family’s future.

Employers: Never Underestimate the Importance of Retirement Plans

As a business owner, you have a lot of things to worry about. But you shouldn’t let various stresses and tasks allow you to forget about the wellbeing of your employees.

Even the most loyal of your workers won’t be with you forever. At some point, people are going to start retiring. It’s important that you make sure they’re duly compensated for all their time. The threat of retirement isn’t the only reason you should focus on retirement planning, though...

The edge over the competition

A lot of businesses out there don’t really put a lot of focus on retirement plans. This can give you an automatic edge over them if you are engaging with retirement plans. However, you shouldn’t allow yourself to become overconfident because of this. You need to remember that larger companies have entire departments dedicated to retirement planning. Smaller businesses need to pull out all the stops to compete!

Retirement plans as perks

A good retirement plan is often seen as a great “perk” of a company. This is prevalent in the US, where it’s considered up there with health care and dental plans. (Of course, most of the world isn’t as primitive as to force taxpayers to rely on their jobs for such things!) Elsewhere, they’re considered an essential part of any good employment package. Retirement plans shouldn’t be treated as rare benefits, like extra days off or gym memberships.

Your contribution

Where you are in the world will often determine how much you need to contribute to an employee’s retirement fund. It will also determine how you do it. Wherever you are, it’s vital to understand this information. If you don’t get to grips with the contributions you need to make, then your employees may suffer for it. It’s essential that you’re making correct contributions. Many employers work with companies who can help them manage this sort of thing. Such companies include NSF Super.

Helping employees understand

Of course, if it’s only you who understands how the retirement plans work, then that’s a little unfair! In many companies, the retirement planning is actually incredibly one-sided. Employees may be left in the dark about the whole thing unless they actively seek information. You need to ensure that your workers know exactly how these plans will affect their future finances. Because that’s what we’re dealing with here, after all: their future safety and comfort! If possible, you should be allowing them access to retirement planning tools.

The golden handcuffs

Retirement plans are often seen as a great way of seducing people towards working for you. But they’re also a way to encourage employees to stay on at your company. Financial allurements such as this are often referred to using the phrase golden handcuffs. They reduce turnover, helping prevent employees from jumping ship to another company. However, the implication with the word handcuff is that these things are the only things keeping an employee at your company. Reducing turnover should be a priority, and retirement plans help do that. But an employee should want to stay because they feel valued and enjoy their job. Don’t just rely on these sorts of benefits to keep employees put!

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.

12 of the Biggest Retirement Planning Mistakes to Avoid

Ensuring that you are ready for the future involves spending time planning for what is ahead. However, planning for retirement isn’t always an easy task. With an overwhelming wealth of information available to help you get on the right track when it comes to planning for retirement, you are likely to make mistakes. Listed below are 12 of the biggest retirement mistakes to avoid when planning for your future. Will you be fully prepared for retirement when the time comes?

• Making risky investments at the last minute in an attempt to make more money. Instead of taking last minute risks, choose to moderately invest over a period of time. This will not only reduce your risk, but will also allow you to make money safely over a longer period of time.

• Thinking that you won’t live long. Many people have the misconception that they won’t live a long period of time and therefore don’t save enough money for retirement. Plan as if you are going to live until 90 or even 100. There is no way of knowing how long your life will be but you want to live comfortably throughout your entire life.

• Borrowing from your retirement Plan. This is a mistake that many people make. Don’t make a habit of borrowing from your retirement because a time will come when you are older when you may need every dime.

• Not knowing how to invest. Be sure that you are aware of what is going on with your nest egg. Simply forgetting about it and expecting it to grow over the years is okay. However, you could make even more money if you stay involved with your nest egg and know the times when you should take risks and times when you should not.

• Not budgeting. Don’t look at retirement as a time when you can freely spend money as you please. Unless you have planned for this lifestyle, you are likely to run out of money very quickly. Do you best to budget. Yes! You can take those dream retirement vacations but make sure that you have planned for them.

• Cashing out your 401K when switching jobs. If you change jobs, it is wise to leave your money where it is at. This can give you the comfort and peace of mind knowing that your money will be there when you retire. This is especially true if you are nearing retirement age. Don’t cash out until you will be actually using it for retirement.

• No post-retirement plan. Will you work part-time after retirement or have some other way to add money to your bank account. A post retirement plan can help you determine how much money you will need to live off of when you do retire.

• Not calculating in health care. Health care expenses are continuing to rise. Many people make the mistake of not preparing for health care after they retire. Co pays for medications and doctor’s visits can be very expensive. Be sure that you calculate this into your budget when you retire.

• Not paying down your mortgage. You don’t want to use your retirement money to pay off large home loans. Work on paying off mortgages early on so that you can spend your retirement money elsewhere.

• Accumulating credit card debt. Realize that the credit card debt that you accumulate now will follow you in the future. Work hard to get all of your credit card debt paid down before your retire so that you aren’t left paying credit card bills with your retirement money.

• Taking your social security check too early. Wait as long as you possibly can before collecting your social security check. If you can live financially without it, save those funds for a time when you may need it most.

• Being unconcerned about retirement. Retirement planning is crucial if you want to be financially secure when you are older. Get advice from financial planners to help you make smart investments.

Listed above are 12 of the biggest retirement mistakes that people make. Use the tips listed above to help you make the right decisions when it comes to planning for your future. Will you be prepared for retirement?

Victor works in senior care industry and specializes in writing about topics related to elder care and retirement planning. He is also working as content developer for 1001WalkingCanes.com an online store for reliable walking canes that help elders in preventing fall injuries.

5 ways to stay safe on holiday

The annual family holiday can be the highlight of the year. Whether we stay in the UK, or venture to a far-flung corner of the world, a break is always an exciting change from normal life. However, an unexpected mishap or untimely accident can ruin that precious time with loved ones and even put you all in harm’s way. It is vital to stay safe when going on holiday – here are the top five ways how you can ensure a happy return:

1. Always let people know where you are – No matter how impromptu your trip, or how exotic the destination, or even how vague the arrangements, make sure that you always have enough time and information to let your loved ones know where in the world you will be. This is doubly true if you plan to engage in adventurous activities – never go skiing off-piste, trekking in the Outback, pot-holing and so forth without informing someone at your hotel of exactly where you are going. You will never regret it, but you could regret not telling them.

2. Take out holiday insurance – It is important, even though you plan to thoroughly enjoy yourself, to think ahead to the worst case scenario – having an accident abroad. Take out holiday insurance with a respected provider and choose a policy that gives you sufficient cover for all your activities. Always be honest with your insurance provider and ensure that you understand your own cover – it is vital to your well-being in an emergency.

3. Don’t go without checking health requirements – Check government websites to see which vaccinations you made need for overseas trips. When visiting Europe, ensure you have an EHIC card, which entitles you to free or reduced-cost medical treatment in most European countries. If you have specialist health requirements, ensure that you look into them before you travel.

4. Look after your money – Carry cards which support emergency procedures in case of theft and it’s also worth carrying a money pouch underneath your clothes, or hiding separate emergency cash. Many hotels will also have a locked safe that you can use to protect cash and documents such as passports. When travelling to particularly risky locations, always think of a friend or family member who could wire you money should the worst happen.

5. Do as the locals do – Protect yourself by not standing out unnecessarily. Don’t wear outlandish or exposing clothes in the wrong environments, don’t drink to excess and risk drawing unwelcome attention to yourself. Read up on local habits, especially regarding manners, relationships, alcohol and other tricky areas. If in doubt, copy the locals.

You can keep yourself safe on holiday by doing a little preparation before you leave. Insurance is a must, as is common sense. However, accidents do happen and if you do have an abroad and think you could be entitled to compensation then make sure you research into what you are entitled to first. When it comes to happy holiday endings research is the key, so look into your protection and make sure you have everything in place to ensure the best possible outcome.

Ryan Hinegan, Contributor to www.accidentassistance.co.uk