Monday 31 August 2015
Sunday 30 August 2015
Saturday 29 August 2015
Friday 28 August 2015
Thursday 27 August 2015
Wednesday 26 August 2015
How to Save for Retirement on a Limited Budget
Are you living day-to-day or from paycheck-to-paycheck? If you are, you are not alone. Many Americans are now finding themselves in a financial crunch. At that same time, financial advisors are still encouraging Americans to save for retirement. This is where you may feel hopeless. There is, however, good news. That good news is that there are still ways that you can save for retirement, even when experiencing financial problems right now.
The first step you should take depends on your age. If you are between the ages of forty and fifty, you will want to closely examine your retirement goals. This includes both your wants and your needs. How much money do you need to retire? To determine an amount, look at your living situation. How much will it cost you to survive with the basic necessities, including food, shelter, health insurance, and transportation? Next, examine your retirement goals or wants. Do you want to start your own business? Do you want to travel? Is there are hobby you want to take up? Examine the costs of those activities.
If you are between the ages of twenty and thirty, your retirement goals are still important. Of course, you will want to sit down and determine how much money you need to retire, but this can also wait a few years. If you are on a tight budget, it may first be a good idea to examine ways that you can save money for retirement. As an important reminder, there will need to be a point in time when you will examine your retirement years and what you want to get out them.
As for how you can start saving money for retirement when living day-to-day, you will want to track your spending. You should do so for at least a week. You will want to record every single purchase that you make, including a small bag of chips or a cup of coffee. At the end of your week, look at your spending list. Circle all of the items that you can live without or make other arrangements for.
Once you have a list of items that you can live without, it is time for you to take action. This action involves cutting corners and eliminating unnecessary purchases. The good news is that you don’t necessarily have to go without. You can still save money by taking a few simple steps. For example, instead of buying a cup of coffee on the way to work each morning, make your own at home. If you are known for buying new clothes too often, consider shopping at a department store or a thrift store, as opposed to a high-end clothing store. There are so many different ways for you to save money.
Now, saving money is great, but only if you put that money where it needs to go. Do you have a 401(k) plan? If so, start applying your saved money to that plan. If you do not, open up an Individual Retirement Account (IRA). There are other options that you have as well, such as a savings account at your local bank, stocks, and bonds. Some of these methods can be risky; therefore, you will want to spread your money out.
As you can see, there are a number of ways that you can save for retirement, even when you are on a limited budget. Whatever approach you take, be sure to stick to your plan.
Tuesday 25 August 2015
Forced Into Retirement? What You Should Do
Did you love your job? If so, you may have been happy with your
life. That is until your supervisors
explained that your company was cutting costs.
Due to those cost cutting measures, you are being forced into early
retirement. If you are like many other
individuals in your shoes, panic may be the first feeling that sets it. Yes, being forced into early retirement may
seem like “the end of the world,” but it doesn’t have to be.
When being forced into early retirement,
you will be required to sign a number of important documents. Never agree to retirement without first
learning about your company’s rules, restrictions, and attached strings. Will you receive a severance package? Does that severance package eliminate your
pension or eliminate you from receiving any other important employee
benefits? If so, talk to a financial
advisor right away, particularly before you sign anything. Determine what your best course of action
is. Is it better to take the severance
pay or receive all of your benefits?
Speaking of talking to a financial advisor,
you should take this step anyways. Early
retirement can throw a wrench into your plans.
You may need professional assistance to get those plans fixed and back
on track. A financial advisor can
examine your retirement wants and needs, determining an estimated figure that
you need to comfortably retire. Next, a financial
advisor can help you come up with a plan of action to get those needed funds.
In the event that you opt for a severance
package, do not spend that money right away.
Unfortunately, many forced into retirement make this mistake. If you are living day-to-day, use your money
to pay for your necessities, such as food and shelter, but nothing else. If you have “extra,” money, deposit it into a
savings account or an Individual Retirement Account (IRA). Doing so may increase your money, based on
interest rates and tax benefits.
It is also important to remember that
social security benefits come with rules and restrictions. Just because you are forced to retire early,
it doesn’t meant that you qualify to receive social security yet. That is why you are encouraged to take action
and right away. Should you qualify for
early social security benefits, due to your age, know that the amount you receive
overtime may be smaller than what you intended to live on.
Most importantly, remember that being
forced into early retirement doesn’t necessarily mean that you have to stop
working. If you are asked to retire a
few years earlier than planned, you may be unable to do so financially. Will your money run out too soon? If so, working may be your only option.
Before leaving your current job and
accepting your company’s early retirement package, examine your health
insurance. Regardless of your age, you
should never be left without health insurance.
Depending on your age and your financial standing, you may qualify for
Medicare or Medicaid. However, do not
leave your job without knowing. COBRA
will leave you protected for 18 months, but you should have another plan. If you start working again, you may be able
to get health insurance coverage through your new employer after 90 days.
If you haven’t been forced into retirement,
it is an event that you should still plan for.
Many companies are finding themselves losing money. For that reason, they are offering early
retirement packages to many of their long-term workers, particularly those that
are close to the retirement age. With
that in mind, just because you are close to the retirement age, it doesn’t mean
that you are ready for it. Even if you
are only twenty or thirty years old, please know there is a chance you could be
forced into early retirement down the road.
That is why it is imperative that you start saving for retirement now,
as you never know what the future holds.
Monday 24 August 2015
Saving for Retirement When Running a Small Business
Are you a small business owner? If so, are you ready for retirement? Whether you are only thirty years old or if
you are fifty, retirement should be on your mind. Small business owners are 100% in charge of their
retirement. If you don’t start acting
now, you may find it difficult to stop working and retire in a timely matter.
As previously stated, you will want to get
started with saving for retirement as early as possible. Small business owners are encouraged to start
planning for retirement in their thirties or even earlier. Why?
Because setting up retirement savings accounts, such as an Individual
Retirement Account (IRA) can be harder for small business owners. Often times, more paperwork is needed and
extra verification is often required.
For that reason, the earlier you start, the better your financial
situation will look when it comes time to retire.
One step that you will not want to take involves
relying on the sale of your business. Unfortunately, this is where many small
business owners find themselves in trouble.
Many believe that they can sell their business and live off the
profits. Yes, this may happen, but you
may be surprised to learn how slim the chances are. Even if your business turns a nice profit,
you still may not have any buyers. Many entrepreneurs
like to start their own businesses from the ground up and not everyone has the
funds needed to purchase a profitable and well-established business, like
yours.
Since you are encouraged to not rely on the
sale of your business for retirement, you may want to refrain from selling. How many employees do you have? If you have one or more employees, can you
work with and train someone to take over your position? If so, you can retire and still collect
profits from your business. If you must
hire an employee to replace the worker you promoted, your profits may slightly
decrease, but you should still have enough to survive throughout your
retirement. If worse comes to worse, you
can always return to work.
As a reminder, no matter how successful
your business is, you should not rely on it as your only source of income
during your retirement years. That is
why you should also examine popular retirement saving accounts. Aside from a traditional savings account that
you deposit extra business profits into, you should examine 401(k)
programs. Unfortunately, many small
business owners do not know that they exist for them. They do. A Single Participant 401(k), also commonly
referred to as a Solo 401(k), may be perfect for you. They enable business owners who don’t have
employees to save money for retirement.
Higher contributions are also allowed.
When it comes to creating a Single Participant
401(k) or a Solo 401(k), you may want to speak to a financial advisor. This is because companies that offer these
types of plans and programs can be difficult to find. They are out there, but you may need help
finding them. Also, consulting with a
financial advisor cannot do you any harm. In fact, you may learn additional tips and
techniques for saving for retirement as a small business owner.
Speaking of additional tips, it is
important to not put all of your eggs in one basket. As previously stated, do not rely on your
business to get you through retirement.
Also, do not rely just on a 401(k) plan.
Depending on your contributions, such as how often you paid your taxes,
you should also qualify for social security benefits. You can estimate your benefits by contacting
the United States Social Security Department, but still don’t rely on it. On average, it only covers about 30% to 40%
of income needed during retirements.
To stretch your money to its fullest extent
and to properly and safely prepare for retirement, examine 401(k)s for small
business owners, SEP-IRAs, SIMPLE IRAs, stocks, and bonds. In the event that one of your options does
not pan out, you still have savings to fall back on.
Money Management Banking Budgeting Insurance Spending and Saving Taxes Credit and Debt Credit Cards Investing Retirement Family & Home Home Improvement Kids Relationships Careers College & Education Real Estate Small Business Lifestyle Cars & Transportation Go Green Health and Fitness Shopping Travel Economy & Policy Featured In: How Much to Save for Retirement – Are You on Track? (Infographic)
“How Much to Save for Retirement – Are You Ready?” – An infographic by Money Crashers Personal Finance
Sunday 23 August 2015
Saving for Retirement at 60
Are you sixty years old? If you are, you may be preparing for retirement. As excited as you may be about no longer having to work, can you really afford the transition? If you haven’t been preparing for retirement, it isn’t too late to get started, but you need to get started now.
The first thing you will want to do is start contributing to your 401(k) program. At this point in your life, any contributions that you can make, you should. At the very least, contribute 5% of your income. However, know that many employers will match contributions made by their employees. There is a minimum amount that you must contribute to receive this matching. If you do, you can essentially get free money for your retirement.
Next, you will also want to consider opening a Roth Individual Retirement Account (Roth IRA). At your age, you are able to deposit more money into your account than those younger than you. When you go to withdraw the money, it is tax-free, as long as you wait until the right time to make your withdrawal.
Next, you will want to examine your retirement wants and needs. Typically, this is the first step that you take. However, if you haven’t been saving for retirement, it is imperative that you get started soon. Depositing any extra money that you have right from the start can help you get ahead in your goal to save for retirement.
Returning back to your retirement needs, examine your housing. Is your house costly to maintain? If it is and if there isn’t much sentimental value attached to your home, consider relocating to a more affordable housing option. In fact, you may want to closely examine retirement communities. Most are affordable to live in and you are automatically paired with neighbors that are your age, many of which will share your interests.
It is also important to examine your retirement wants. What do you see yourself doing when you retire? If you are like most retirees, you will likely want to do things other than stay at home watching television. Do you want to travel? Do you want to start your own business? Are there other activities that you want to enjoy, such as camping, boating, or fishing? If so, it is important to examine these costs and add them to the estimated amount of money you need to save to retire comfortably.
Next, it is important to learn to cut corners. Do you live in a fixed income? If not, it is time for you to start. When in retirement, most men and women are on a fixed income. For example, if you were to spend your retirement savings before you pass away, you are essentially left with nothing. Is this really how you want to live? It is important to practice living on a fixed income. If you find that you cannot do so, you have a small amount of time left to increase your retirement savings by working longer.
Now is also the time to examine your debt. Do you have any? To see, request a copy of your credit report. Usually, the companies that you owe money to will try to collect. This may involve a request to appear in small claims court. Should this happen to you, you may be court ordered to pay the money. This can put a damper on your retirement savings and plans. Eliminating this from happening by making sure that all your debts are paid off before you retire.
One question that many individuals in their sixties have involves paying off that debt. Many wonder how they can pay off their debt when they are also supposed to be saving for retirement. The two actually go hand-in-hand. When you pay off your debt, you should have more money for retirement in the long-run. Also, you can work to save money by eliminating unnecessary purchases or temporarily supplementing your income with a second, part-time job. A good approach to take is dividing the money into two. Some money can go towards your unpaid debt and the rest can go into a retirement account.
I Want To Catch Up on My Retirement Planning What Should I Do?
Good question and even better, you’re thinking in the right direction about your future which is someday retiring. If you’re one of those people who haven’t saved any or very much money for your retirement, it’s never too late for you to start now! It’s important that you do start and soon. It doesn’t take long for age to slip up on you fast if you know what I mean! So, just get started on your retirement planning now while you’re thinking about it. You may want to consider some of these tips and information to get you started: 
1) If the employer you are working for offers a 401K plan wherein you contribute a percentage of your earnings towards retirement, consider signing up for this plan! In most instances, the employer may match a percentage of the contributions you make to your 401K account. Your contributions can be made on a pre-tax basis which will help your money grow faster in your account.
2) You may want to consider taking a second job to add more income for your retirement. This will assist you in increasing the amount of money for your retirement fund. If you’re able to fit a second job into your schedule, make sure this would be feasible for you and your family without causing problems.
3) Save more of your money by cutting back on some of your expenses. You may want to reduce the number of times you eat out, go to the movies, shop, and any other areas you can cut back on to save towards your retirement.
4) Consider saving your change! That’s right, save your change. You would be surprised at the amount of money you can accumulate in a small amount of time by saving your change. Your change could be set aside for your retirement fund. So, start putting your coins away for your future!
5) Reduce or eliminate your spending on your credit cards. The less you pay on your credit cards, the more money you will have to save towards your retirement. So, if you can pay cash for that item you need to purchase, do that instead of charging it to your credit card. You will not only save yourself interest charges, but, you will have extra money to put away for your retirement.
6) If you have a home and are using it as a cash machine or atm by taking out your home equity via loans or a credit line, stop what you’re doing! Your home is one of your largest investments and will most likely be a retirement vehicle for you. You will either want to have your home paid off prior to retirement or be in a position to sell your home to obtain the equity to use as retirement income. If you have your home equity tapped out, then you will not be in the position during your golden years to enjoy your retirement. You will probably be still paying a mortgage that you may not be able to afford and will not have much money in your retirement fund. 
Its better late than never when it comes to starting your retirement planning. So, go ahead, start working on catching up with your retirement planning today, you will be glad you did!
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