Retirement. A phase you look back at the bygone days of your professional life and look forward to the second innings that is in store. It’s the period in life that eventually sets in, with a different life to experience. The quality of your retired life depends on the goals and finances planned and executed through the heydays.
Investing and Retirement
The word retirement rings the bell of investment with a solid foundation to successfully counter uncertain times. Retirement should not be a burden to overcome but a stage to relive fond memories. And, for this to happen, thoughtful planning of finances and investing cannot be stressed more.
Remember, investing predominantly focuses on ensuring a secured retired life. Of course, you may have several goals in life that can be achieved by investing. But financially sound retirement is the common chapter everyone looks forward to.
Saving or investing for retirement is a big chapter and needs you to apply your mind and soul into the system. If you don’t plan your investments diligently, you run the risk of not being able to maintain the standard of living you wish or need when you retire.
There are several aspects to look into while investing for the future, retirement in particular.
How much money do you need to retire?
It’s subjective, and it depends on your personal goals, your traits and your outlook towards life.
- Are you looking ahead for a world tour?
- Do you intend to move to a plush condo?
- Are you looking to live life relaxing in the countryside?
- Do you want to own a luxury car?
- Are you interested in golfing?
The list is almost endless, and each lifestyle or wish demands you know your finances well.
There is no fixed formula to save for retirement. However, the ideal way would be to save:
- At least your annual income by age 30
- Three times the annual salary by age 40
- Six times your annual salary by age 50
- Eight times the annual income by age 60
- Ten times your annual earnings by age 67
Let’s discuss about this in detail later in this article.
When should you start saving for Retirement?
Again, there is no specific age cut-out to begin saving for retirement. However, the sooner you start, the better. In other words, starting to save for retirement early gives your money a longer period to grow into a substantial amount. This practice ensures compound growth and, in turn, can increase your money by several folds.
Whatever your earnings, make sure to keep aside a certain amount to boost your emergency fund. Also, keep looking for ways to increase your earning capacity to increase your savings.
Tips to Boost your Retirement Savings
Follow these tips to grow your nest egg and to retire peacefully:
Start investing right away and let compound interest reinvest your savings and work for you. The more you invest during your younger years, the higher the accumulated amount will be.
Take advantage of your employer’s 401(k) plan
It’s a tax-deferred investment plan that employees can use it to their advantage. You can also increase your contribution to that account. Eventually, you can open a Roth IRA account to save income after taxes to avoid higher tax bracket in retirement.
Satisfy your employer’s match
Try to match your employer’s 401(k) plan to enjoy complete advantage of the plan. The 50% additional amount from your employer is essentially your free money to utilise.
Utilise catch-up contributions as you age
While nearing age 50, you can enjoy benefits beyond the prescribed limits of the IRA and 401(k). These catch-up contributions help boost retirement savings beyond age 50.
Switch your savings to auto mode
Making automatic retirement contributions every month helps constantly grow your nest egg. You can invest assets automatically in select funds through Merrill Edge Automatic Investment Plan.
Control your spending
It’s one of the secrets to increasing your savings. Make a list of your needs and wants and look for all the places where you can reduce or avoid spending. By this way, you can track your money efficiently and increase your investment.
Always set realistic goals
Investing also means setting benchmarks in the process and making necessary changes to achieve those goals. You can calculate how much you need to save in order to achieve your financial goals during retirement.
Be wise with extra funds
Got extra money? Got a raise? Don’t just spend that money. Instead, increase the percentage of investment and plan for a financially robust retired life.
Postpone receiving your social security payment to a later age
You begin to receive social security payment benefits at age 62. But, delaying receiving it until age 70 increases the accumulated amount. The additional income increases quickly and makes a significant difference to your retired life.
Let’s now go through detailed investing planning based on the age group.
Investing in your 20s
As you reach the end of your 20s, make sure to have at least your annual income in your retirement account. This is also the stage to start building your emergency fund. You can start small and draw cash from your emergency fund without touching funds from your retirement account.
This is also the stage to leverage the benefits of your employer’s 401(k) plan. You can also consider a Roth IRA account.
20s is the ideal phase to invest in stocks. With a long investment period, its perfect to handle the market dynamics and invest methodologically.
Investing in your 30s
This is the stage to boost your emergency fund and have at least double the annual income saved in your retirement account. It’s also great to tie up with your spouse financially and plan together for retirement.
You can speed up your retirement savings through an automated direct deposit.
Saving in your 40s
Your savings by the end of your 40s should ideally be four to six times your annual income. It’s that phase to get rid of debts without getting too conservative. All these years of savings for your children’s education come to the surface.
Put whatever additional money you have to your retirement account.
Saving in your 50s
Close to 60 and, you should have almost eight times your yearly earnings. Catch-up contributions should be utilised wisely and, a substantial percentage should go into your retirement account. It is here that you decide your retirement budget depending on the lifestyle you have planned. Also, keep medical costs in mind and plan accordingly.
Saving during the golden age
Come retirement and, consider using your social security benefits to your advantage. This is the surplus amount in your retirement fund you can claim.
Retirement savings barriers to overcome or take control of
Cost of living
When you receive a hike, don’t spend the additional raise for a fancier lifestyle. Instead, follow a monthly budget and stick to a fixed savings plan. See what you can do away with and make sure not to go above that which ensures you a comfortable life.
Excessive spending on kids
Doing many things for your kids’ is a good intention, of course. However, overspending on kids drains your nest egg and investment too.
Health can take a hit anytime and, in most cases, we are not ready for it. However, it’s advisable to open health savings account that comes with some major benefits. A tax-deferred medical savings plan covers almost the entire medical expenses subject to conditions.
Credit card debt
This is a major savings spoiler. Just remember, your credit card debt is nothing but consuming your future money that can rather be invested. Make sure to keep your credit card debt in limits. And, once you have paid off the bills, avoid the temptation to the maximum.
Avoid taking a 401(k) loan
Your retirement account stabilises your future. And, your 401(k) account adds immense benefits to your retirement funds. Here are some top reasons to avoid taking a loan from your 401(k) account:
Making contributions becomes difficult or impossible
There are select plans that don’t allow contributions until the current outstanding loan is paid off.
Additional fees will be charged
Your 401(k) account includes setup fees, annual costs and other costs. Though they are low on interest, drawing funds from the account increases the amount of fee to be paid.
Pay checks can get smaller
Pay check deductions are levied on most 401 (k) plans. It’s a double blow since you are paying out of your saved lower monthly income.
The risk of default is costly
Here, the loan that ends up as default invites income tax and penalty charges. Withdrawal can also show up as taxable income and reduces tax returns over the long run.
Loss of asset protection
401(k) accounts offer asset protection from creditors by Federal law. Drawing money from this account waives this protection, leading to increased losses.
Avoid taking a 401(k) loan by:
- Increasing monthly savings
- Keeping savings account easily accessible
- Replenishing your emergency fund in case you borrow money from it
How You Can Make Money From Home
There is no secret to making money online, the only secret is your persistence. Hidden away between the tips on starting a wine club, taking up a photography club or joining the wine revolution, there are smart tips that anyone could use to earn money online without having to quit their day job. We have written lots about the many ways people abroad to help finance their lives.
A good place to start with online jobs is with paid surveys. Surveys pay for your time and allow you to earn a bit of extra cash. The reason you will be able to earn more than what you are actually worth is that a survey company will pay to send you their questionnaire so that you can answer it. The more accurate and detailed your answers the more likely you are to get paid.
There are many survey companies available, you need to choose wisely and carefully as some surveys are paid better than others. For example, you may get paid well if you give an opinion on the health of wine or food. You may get paid just as well if you offer an opinion on which type of music you like.
Another great way to make money online is to write articles. You could write an article and then sell it to an affiliate. If someone likes what they read you will get a commission.
If you are unable to write or if you do not have the time, you could hire someone to write for you. This could be someone who has experience in web content writing or a freelance writer. You could also sell your own articles on an affiliate website such as Clickbank or Commission Junction.
It is easy to make money, it can take some time but it is definitely possible. All you need is determination and discipline to keep at it.
Many people overseas have chosen to live off the grid lifestyle. There are many benefits to living this way and one of them is being able to make money from home.
There are also a lot of opportunities to make money doing research online, there is a constant increase in the amount of knowledge that is available to the public. It is much easier to research and discover new ways of earning money. and you can get started in a short space of time. So, I encourage you to give it a go.
One of the easiest ways to make money online is by becoming a blogger. It really is very easy to become a blogger. Just type ‘blogging’ into Google and then fill in all the details. It is easy and it can even start to look lucrative.
Blogging is a good way to earn money if you have an understanding of the basics. You need to write about something that interests you. This could be about your family life, your interests or even a hobby that you like.
Once you have set up a good website for your blog, the next step is to get visitors to it. One way of doing this is by putting up advertisements. This is just the same as writing articles for other websites.
Some people choose to make money by selling products. You can do this in two ways, through a site such as eBay or through affiliate marketing. You could sell e-books or products related to the niche you are blogging about. The great thing about eBay is that there is always a steady flow of visitors.
These two ways are only two of the many ways to make money online. I recommend you look at all the options and find the ones that work best for you. Once you have found them, you will never stop learning about ways to make money online.
How To Avoid the Risks of Poor Credit
Security Finance is an unsecured debt collecting agency that, via a network of affiliated companies, provides “secure” personal loans to consumers who may otherwise struggle to meet their existing debts. Their loans are generally short-term, and their conditions often vary dramatically from those of traditional short term personal loans. The services they provide can be invaluable to both the consumer and the lender.
Security finance offers a wide variety of loans. These include: home equity loans, revolving credit lines, commercial and business loans, car and motorcycle loans, and other types of unsecured loans. These loans can be used for almost any purpose, and they will be more beneficial to the consumer than those offered by banks and other unsecured lenders.
Secured personal loans offer an excellent alternative to the high rate of interest paid by unsecured loans. The interest rates are often less, the terms are easier to meet, and they are often better suited to meeting a consumer’s unique financial situation. The collateral provided with the loan usually allows security that the loan will be repaid in a reasonable amount of time, with little or no difficulty.
Secured loans require the debtor to place collateral, such as his or her car, home, or other valuable asset, in order to receive the money they have been borrowing, and are therefore considered by the debt collector as an attempt to recover something that has been taken. Debt collectors will not hesitate to call a borrower who does not follow the terms of his or her loan agreement and in some cases will go as far as harassing them, calling and/or sending letters in an attempt to collect on a debt.
When applying for a secured personal loan, many borrowers are worried that the debt will affect their credit score. The fact is that there is virtually no correlation between the amount of credit available and the credit score. However, secured loans will typically have a much lower credit score than unsecured loans. This is because the borrower is putting his or her assets in a bank account where they are likely to be liquidated for payment.
It is important to remember that the loan does not negatively affect the credit history. The only time it can result in damage to a credit report is if it is reported incorrectly. If a borrower were to try to pay off a loan on a credit card that was reported as being “lost”, he or she would then be making the error a second time.
Security finance offers consumers an exceptional opportunity for personal development through the use of online applications, and the ability to make several payments on the same day to avoid late fees and penalties. This service also makes it easy to avoid late fees when paying loans off at the end of the month.
The ability to apply for secured loans online provides a tremendous opportunity for the consumer to improve his or her credit score. Security loans can provide a large number of benefits to people who are in financial difficulty, including: low cost, low rate loans, low credit, and the flexibility of being able to make multiple payments.
If you are considering applying for a secured loan but have never applied online, you should take advantage of the opportunity to make several purchases in a short period of time, rather than waiting until the last minute to apply for an unsecured loan. By using the secured finance website, you can save yourself the time and stress associated with filling out an application and can ensure that your credit report shows your financial progress accurately.
Once you have applied for a secured loan, you should also make sure that you understand the terms and conditions of your loan, including any interest rate that may apply to the loan. Be sure that you understand the term of the loan in full and fully. Do not hesitate to ask any questions that may arise. You should always contact the company directly when you feel that you are not fully clear on a matter regarding a loan.
Secured finance loans are a great way to increase your credit score while avoiding the hassle and expense of filling out and paying off an application by mail. Because the borrower is making a direct deposit of money into an account, the credit report that shows up on credit reports is often inaccurate.
How To Find Free Rates On Money Exchange
Money is a common item that can be bought, traded, exchanged or sold. This usually includes the value of the currency as well as gold and silver. Money is commonly accepted as payment of certain obligations, including taxes, and payment of certain goods and services in a specific country or socioeconomic context.
There are three money systems in the world. The first is the use of coins or other units of currency, which are available in fixed denominations. The second is barter. It involves exchanging items of utility with other items of utility. In the third system, known as fiat money, there is no central authority that decides what the money supply is, and the monetary base is determined by political will.
The most common monetary system is the gold standard, which was used as far back as ancient Greece and Rome. In this system, coins were designed to be redeemable for gold bars. Gold, however, had a relatively high price at the time, and most individuals had no access to it. Barter is much more popular today, and most people live their lives in barter, trading items with one another.
In some nations, the second money system is called paper money. Most countries have national currencies, and each government issues money in the name of their country. This type of money is not backed by anything of physical value. It is not held by the government or bank. It is simply made from paper. Since most countries use this kind of money, it is known as the official “money” of the country.
Electronic cash was introduced in 1970. This system is very similar to barter. Instead of bartering for items, electronic money is created electronically. It is created electronically to represent actual objects that can be used as payment, and then is transferred to the buyer. The process is very similar to barter, except that there are no actual goods to be bartered for. It is considered a virtual currency.
There are many different types of money, and each one has its own characteristics. Money in the U.S. has a backing and is created by the federal reserve. Money in England is backed by the pound sterling, while the European Central Bank in Germany uses the euro. has a currency known as the Deutschmark.
Each form of money has its own advantages and disadvantages. People who use different forms of money have their own reasons for doing so. Many people choose to exchange one form of money for the other, to get the best rate on an item they need or want. Some choose the same form of money for more than one transaction.
Money exchange services offer different services to help people get the best rates on money exchange. They include a variety of methods that can help someone get a better rate. Rates vary depending on the length of time you wish to get money, the size of your order, and the current value of the item you are exchanging. Some of these services can also provide you with a credit card or other form of online payment to transfer your money through.
These services are available almost everywhere. You may call around to various companies for rates, or you can check out the Internet. There are several places on the Web that will give you free quotes, and compare rates among companies. It is important that you understand the rules and regulations that govern the rates you receive from these companies before you agree to any deal.
There are several different online providers. You will often find them listed under the names of a variety of different names, such as Money Exchange, Moneygram and eCash. If you are interested in getting quotes from multiple companies, make sure to ask around for quotes from at least three. so that you have a clear picture of how much the rates will vary and from which company to go with.
Many places will offer you a variety of free quotes if you fill out a form. Others will charge a fee for this service. To get an estimate, you should send out several free quotes. and then make sure to follow up with the companies.
To be able to get the best rates, it is very important that you get as many quotes as possible from different companies on the Internet. There are many sites that you can go to. Some will charge a fee to get these quotes.
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