10 Best Practices To Plan Your Retirement With

A tirelessly worked out present is only solaced with the thought of having a relaxing and comfortable future. We all dream and plan, but only some are truly fulfilled. When you allocate your today in making fruitful plans and work them all out carefully, only then you are able to productively unleash a desirable retirement stage.

Recent study determines that the average Americans live roughly for 20 years in retirement. With this long time span of retirement age, you need to make plans today to help secure a stress-free, ideal future. The dreams that you have always had of exploring the world by travelling, living in a house that is yours and a source of work-free income that lets you spend without worrying about emptying your bank account, can be fulfilled.

Experts determine that 70 – 90% of our preretirement incomes are required to maintain our standard of living after retirement, making it super expensive. Yet the situations of crisis with health issues requiring medical treatment can be financed easily, with early plans, designed and worked for now.

Following are 7 simple rules to achieving the “best life” in your golden retirement years.

Plan A Diverse Portfolio

In order to maximize returns and minimize risks, planning a diverse portfolio is essential. Aren’t we all aware of people who have thoughtlessly invested in companies which have grown into big shots like Google, Apple or Facebook? Well it wasn’t just sheer luck the investors have been depending on while investing in them; it was rather carefully calculated, far sighted approach they had pertained. Scrutinizing the prospect’s strategies, then allotting their valuable money in them by investing.

Predicting a market and then investing in it requires crucial planning. However it is wise to select from a diversified range of the asset class and the geographical presence of the investment prospect.

  • Asset Class

An asset class defines the nature of the asset. Whether they are tangible ones like bonds, stocks, inflation protected securities or real estate properties. With a diversified portfolio you are not reserving your investments to just one asset class but carefully placing in different ones, wherever the prospect seems more profitable. Allocating all the investment in one can restrict various opportunities for an investor.

  • Geographical diversity

Diversify your portfolio by making unbiased choices for investments in countries other than yours, to serve you beneficially. Since some countries may have a lower inflation rate, investment fee than yours, and the market can be flourishing there compared to that in your country so taking a deep dive by investing in a market of some other country rather than your own can intensify returns for you.

Minimizing Investment Fees

Investment fees can drain up your accounts. It is not necessary to prioritize your trust in a broker that charges more.Research shows that when it comes to investment fees, the higher expense ones do not perform better in your favor compared to the lower expense ones.

So it is advisable to make investments in index funds that are passive investments with lower fees instead of actively managed funds. Following are three different types of investment fees and the ways of minimizing them

  • Fund fees

A fee ranging normally from 0.2 – 2% and charged by the managers of mutual funds and ETF. They can be comprising of administrative cost, management and 12B-1 fees. Invest using low ETFs instead of higher fee mutual funds, in order to keep these funds low. Since ETFs are less expensive to operate and require significantly lower management and sales support, to pass savings to you.

  • Advisors fee

An advisor fee is a fee charged by a financial advisor in return of the financial services he provides to you. It can be as low as 1% of your investment with him. Choose an advisor wisely, someone who promises greater returns to you by minimizing risks and keeping service fee low. Not charging extra fees for any other reason than the fixed 1%.

  • Trading fee

This fee is charged on investors upon buying and selling funds or other assets. The cost can vary depending on the broker you are using and also if you trade often, you may be facing tax implications too that can be very costly. So if you are willing to maximize your investments to aid in your retirement stage, you need to use commission free ETF stocks.

Utilizing Idle Cash

Invest the idle cash in profitable prospects rather than stacking it up. Since investing it wisely can enable profit returns. Even low returns, are better than nothing at all. However intimidating the idea of investment can seem, they are always better than locking away the possibilities that can affect you in great ways.

You are especially thankful to having had invested them when you near retirement and receive whatever returns possible, instead of keeping idle cash which would have lost all its worth with the constant inflation.

Roll Your Old 401k Investments

A 401k investment is a way of securing a tax deferred investment. An employer sponsors a 401k for the employee in which a sum is deducted from the employee’s pre-tax income; investing for their retirement time. However qualified an investment prospect 401k is you still need to keep a few things in mind.

Statistics show that an average American quits his old job and switches to a new one every 4.6 years. With rapid job changing one loses track of his old 401k investment and how to adjust a new role with the new salary. You may be subjected to paying compounded fees, and lost in compensation packages. Unless you roll over your old 401k to a rollover IRA account, which will prevent you from overpaying and limited investment options.

Deferring Tax Payments

Make use of great financial tools that help defer tax payments upon sale of a property. With the help of IRC 1031 and charitable trust tools, one can easily avoid tax for a long time. Taxes can reduce the amount of your capital gain amount.

With IRC 1031 tool, you purchase another property of same or greater value in exchange for the one you are selling. Upon using this tool, an investor can easily divert attention of his property tax on sale by buying another property, maximizing capital gain, subsequently increasing the amount of total investment made for a great retirement period.

Acquiring a charitable trust IRC tool means, you are investing your property by selling it to a trust, in a tax deferred way. The trust will in turn facilitate you with lifelong scheduled funds. And they can be a passive income for you upon retirement.

Although if you do not avail either of the 1031 or Charitable Trust IRC tools, you will be subjected to a capital gain tax, which reduces your chance of availing the profit for your retirement.

Prioritize Saving Habits

Recent facts state that fewer than 50% of all Americans have calculated how much they need to save for retirement.

It is really difficult to inculcate a saving habit without a goal or source of motivation. Consider understanding these points which may prove to be really good in the long run.

  • Saving can help you secure a safe future, in times of need, you do not have to worry about finances
  • Helps expanding your investments for a better future after retirement. You can utilize those savings by purchasing promising stocks, bonds, securities with them.
  • Helps in making payments to wipe off quick mortgage loan in case you acquire a hard money loans from a well-known organization. With a hard money loan an investor can expand his investing abilities, by acquiring loan that is backed by another property. Investing that loan in a greater prospect and then paying off mortgage monthly payments by the earnings from that investment. The initial lump sum payment can be achieved from the savings that you have kept. Making the entire loan acquisition and repayment journey smooth and stable.

Savings have a wonderful impact on your investment portfolio and all other things for your future. It may seem hard to restrain oneself from the luxuries of life and instead of spending, allocating the money in investments, but at least it will be better for a stage when you will be jobless and with no other source of income. At this point the saved possessions can be your greatest savior.

Pay Off Debts Before Retirement

No more liabilities hanging on after retirement. Make this a goal to create a sensible plan and work accordingly. The last thing to bring you joy can be a property with ongoing mortgage payments. It is an investment turned liability so you can never appreciate it. The wisest thing to do is plan a short term mortgage payment plan as long as 5 years and not more. Allocate your finances in a way that you are able to spend as much as you can in mortgage payment ultimately achieving a stress free retirement period.

Availing Tax Advantaged Accounts For Fund Holdings

There are ways an investor can hold their investments in a tax free manner. Make a smart move by placing your assets in tax advantage accounts such as 401k and Roth Individual Retirement Account. In order to achieve an optimal tax free investment. By placing the investments that have to pay dividends in these tax-advantaged accounts, they can avoid being taxed upon reinvestment.

In an Individual Retirement Account, a person can start placing an annual amount of $55000, which can begin with a lesser amount and after age 50, can be increased from the standard amount.

Facts determine that 30% of Americans did not participate in contribution plans such as 401k even when they were provided access to it.

Strategically place your investments in taxable and non-taxable accounts in order to minimize over all taxes. Work your ways with a knowledgeable financial advisor who can wisely guide you along the path and benefit you with maximized amount ownership after retirement.

Avoid Temptations

No matter how tempting it is to cover your problems with easy retirement money withdrawal, you still have to swear to resist. Early withdrawal can lead you to serious drawbacks. Some of them are:

  • You will lose tax benefits
  • You will have to pay withdrawal penalties
  • You will lose interest

Strive To Delay Social Securities

This may be the toughest challenge you may have to face leading to an added benefit you cannot deny. As per a statement by Greenberg, “For every year you can delay receiving social security payment before you reach age 70, you can increase the amount you receive in the future.” At age 62 you are at the earliest of receiving Social Security retirement benefits, but if you wait till 70 years to avail them, your monthly benefit increases and an additional income is added up to it quickly. This benefit can come to your facility as well as can be availed by your spouse.

Greenberg further adds, “Recognizing the need to put money away for retirement is the first step.” This helps you realize that the more creatively you can save for your retirement the greater the benefits will be waiting for you at the end of the day.

Remember

According to a study starting too late and saving too little topped retirees’ list of regrets. Which means, you will continue to worry in your golden days. With each passing year, the late you get in starting to strive for retirement can put your hard work throughout your life to strain. But by this I am in no means, if you have gotten late in realizing you should not put an effort at all.

Plan your retirement today to avail a fruitful future. With these practices at work you can easily create the retirement life of your dreams. Maximize returns of your investments and minimize risks and troubles.

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How to Get Started With Saving Money?

Imagine having enough money in your account to support any unexpected needs, to cover-up any major purchase etc. The feeling you get when you’ve money when you need it is unmeasurable. Who doesn’t love having a plentiful amount of dollars in your savings account! But when it comes to getting started with saving money, it seems like the hardest thing to do.

One of the harsh realities which were summed up from a survey is that almost 47% of Americans would have trouble finding $400 when suddenly asked for. If you also fall under that 47% then, it’s time to change it. Saving money not only helps you to be prepared for any unexpected needs but also pushes you to spend less than you make.

The money you earn gets spent at the end of the month, and nothing left to contribute towards your savings. With the rising day-to-day expenses, it might seem like an impossible task to save money. You might be thinking about how to get started with saving since I don’t see a room to save any money with my current economic situation. If that’s the case, then it’s right time to analyze your spending habits and match it with your income to know the weak areas. Once you have the statistics ready, you will know where you can push the money towards your savings.

We share with you 5 simple steps to get started with saving money and prepare for a financially secure future.

5 Simple Steps to get started with saving money:

Get started with saving money and make a meaningful progress towards a financially secure future by following these 5 simple steps mentioned below:

  • Set up a separate savings account

Some of you might have a bank account already but there are still many who don’t have one. So, the first step to take towards building your saving is set up a separate savings account. Different banks offer better interest rates and thus, you need to have a check on the interest rates offered before you set up a savings account. Also, you need to check on the minimum balance to be maintained since you’re planning to start with a small amount initially.

  • A small amount can make a huge difference

Start with a small amount so that it doesn’t pinch your pocket. Maybe, consider putting 1% of your income into your savings account and do it consistently without fail. Gradually, you’ll notice that you’ve cultivated the habit of contributing towards savings and you’ve some money that you can use for any sudden expense. Remember that every small amount you contribute towards savings is going to be a stepping stone for a financially secure future.

  • Fix an amount for automatic transfer

Once you get started, perseverance only will yield results. When you get your paycheck, fix an amount to automatically transfer every month from your checking account into your savings account. This will eliminate the temptation to spend the extra money on other things and instead help you to focus on building your savings nest.

  • Analyze and make a practical budget

If you’re left with no money to save after all your expenses, then it’s time to re-evaluate your budget. Ask yourself the following questions to analyze where you’re going wrong:

  • Are you spending on things that are actually not worth it?
  • Can you differentiate between your “needs” and “wants”?
  • Are your “wants” taking more from your pocket?
  • Do you buy things out of your monthly list?

Analyze your “wants” and see where you can cut down on the expenses. How about going for a manicure 3months once instead of every month? How about cooking your meal or eating out at a local eatery and cutting on fine-dine restaurants? Plan to contribute towards regular saving by reducing your expenses wherever possible.

  • Everything takes its own time

When you start with a small and consistent amount to build your savings, then remember that it’s going to take some time to show a noticeable difference. Saving doesn’t happen in a day. Set your financial goals along with a timeline to achieve those and start contributing towards them gradually. Cultivate the habit to check your progress every now and then. This will motivate you to focus on your goals and gives you strength to face any financial situation.

Summing up:

When you think about saving money, it doesn’t have to be a big step always. You are free to take your own steps but just remember it’s important to get started somewhere. So, follow these 5 steps to get started with saving money and see the difference yourself. Once you get started, you have already changed your status from the 47% to the ones who’ve some money in their savings. And that itself is a huge achievement to celebrate.

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5 Personal Finance Rules to Follow to Become Financially Free

Most of us would be interested to know if there are any personal finance rules to follow to attain financial freedom. And the good news is, yes there few rules that can help you manage your finances in a better and organized way. Managing your finance efficiently is a struggle for most of us. But it is very much important to manage your finances properly or else the repercussions can be gruesome. Initially, you might just worry about not having savings but it can also lead to an imbalance in your retirement phase.

Handling finance properly is not a day’s job and it comes with practice. Once you get started with managing your finance in a better way then, you can explore other ways to boost up your savings. As you become a pro, you can create your own personal finance rules to add to the list as well.

We share with you 5 Personal Finance Rules that would help you to handle your finances in a better and efficient way. These personal finance rules are like a guide to show you a path to manage money and as a result get a groove of some dollars in your account.  Savings add financial security to your life and give you the confidence to face any financial situation.

5 Personal Finance Rules to follow to get started:

  • Cut down on unnecessary things and add that money to your savings

The first personal finance rules to follow is starting saving as much as possible and start it now. Every month after you get your paycheck, you will clear off the necessary bills and make essential expenses on housing, food and utilities. Keep some money for your transportation and other important kinds of stuff. Now, analyze what you generally do with the money left. If it is spent on unnecessary things that you can cut down then, think what you can do with the money left.

The best thing to do is put at least 50% of the money left for your savings. This will be good kick start and it won’t pinch your budget as well. In few months, you’ll realize you’ve built your saving nest already and you just need to boost it up.

  • Look for investment options

One of the best ways to handle your money is to invest it wisely to get the best returns. For beginners, you might always feel the risk of losing money and unsure of which option to go for. As there are lots of different ways where you can invest and choose based on the risk level such as mutual funds, stocks, peer-to-peer lending etc. For beginners, you can opt for investing in small number and with a low risk through various options. Even a small investment will give good returns in the long run. You can do a research online or check with a reliable financial advisor for more details.

  • Never encourage credit card debts

Having a credit card debt can be alarming as most of us use the credit card for non-essential purchases, luxuries and impulse purchases. Paying interest for those things and having debt can affect your credit score.

But, wise use of credit cards can be beneficial as well. If you clear your credit card bill on time and use it to the amount that you can repay, then you can have a good credit score.

  • Get thoughtful about your regular expenses and pay full amount only where it is necessary

You need to keep a track of where all your money goes on a monthly basis and so, start by analyzing your expenses. For the regular purchases, check for coupons or discounts available. Wait for the year-end sale for any major purchase.

  • It’s your money so make every move meaningful

Set a budget for everything you buy to be it a house, a car or grocery. It is important to know your affordable limit and make every purchase meaningful. Even if you can afford a larger home, a new car etc. you don’t have to buy it when you are already comfortable with the things you have.

Summing up:

By following the 5 above mentioned personal finance rules, you will be able to set yourself in the right direction for a better financial future. It’s okay to slip occasionally from the planned schedule sometimes, but you need to know how you can set it right. You make a small unplanned purchase which refrains you from saving the set amount for the month; don’t worry you can balance it the next month. Handling personal finance efficiently is a learning process and when you start saving more than you spend, then, you will know that you’re on the right path already.

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Planning For the Future By Saving The Present

Have you seen your parents planning family finances? What are your investment plans? When do you plan to start your retirement savings? What is your average family savings? How do you plan your family finance? Insurance agents and financial consultants always start the discussion with these questions. I used to laugh it out when these questions are posed?

Who cares about retirement? I can plan for it when it is near used to be my answer to the above questions. Well, I am sure most of you will be thinking the same. When I sit down and contemplate on the above questions after committing costly financial mistakes, all these questions start to make sense and it now dawns on me the importance of financial savings. I am writing this to give you a few tips on managing family finances and maximizing average family savings for a better future. I am narrating my firsthand experience of things which I could have done better. Let me hit the bull’s eye, with these points if I make one of you realize the importance, I think I have accomplished my mission.

#01 Plan for retirement early:

What is the right time to plan your retirement savings? How will it affect my family financial planning? Well, retirement savings should start from the moment you receive your first salary. When you are emotionally drained and physically weak, we can only depend on our savings to find solace in the hands of doctors to stay alive. To age comfortably and happily it is best to plan for retirement from day 1. Look for investment plan which helps you in obtaining tax rebates. This will help you in enjoying the twin benefits of savings and tax rebates. When your employer offers you retirement savings options make sure you utilize it to the fullest possible extent.

#02 Emergencies Response plan:

Contingency plans come in handy during emergencies, wait, what are the financial emergencies? Unplanned pregnancy, accident, terminal diseases, layoffs, repairs and renovations are examples of emergencies. Are you well prepared for these emergencies? It is always a good practice to allocate a part of your average family savings to an emergency fund. Plan the emergency funds and invest them in areas where you can immediately draw the money as well as get good value for your investments. Investing in fixed deposits and other savings plan will help you in maximizing your savings

#03 Tax free options to support kid’s education

 When your family grows, you will not be able to effectively plan yourfamily finances.  You will be inclined to spend on day to day needs rather on long term investments. There are numerous tax free options available for your save your kid’s tuition fees and use it in time of need. 529 plans which allows increased contributions tax free is a good investment option. Options like these will help you in planning your long terms goals.

#04 Save the present:

Once the long terms goals are taken care, it is time for the short terms ones. Prepare a to do list of items and open a savings account or flexible fixed deposits for each goal and start saving. The options chosen should have good returns to boost your family savings. For example, you are saving for your marriage; once you have saved enough for your marriage continue to contribute the same amount monthly in that account. This additional amount saved will give you an additional leverage to invest in a better option like car.

#05 Innovate and be creative:

Have you seen the movie “Confessions of a shopaholic” and remember the girl with the “green scarf”? She will conduct a garage sale to pay off her debts. Similarly you can conduct a sale to sell your used and unused items to raise money for your short terms investments.

Paste the goal into a piggy bag and start tossing the coins from your daily purchases into it. When you clear it at the end of 6 months to 1 year, you would have saved enough for your short terms purchases.  You can sublet one of you rooms to a bachelor to earn extra money. By finding different ways to create a passive income you increase your average family savings multi-folds. It is always in our hands to save and spend.

Summing up:

It is never too late to start your investment plans. You will have to find the right mix of short terms and long term investment strategies to maximize your average family savings when you plan your family finances. Prevention is better than cure. Better to save now than to repent in future. Planning your investments with the right blend will give you both harmony and financial freedom.

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Establish an Emergency Savings Fund in 4 simple steps

Why do we need Emergency savings?

This is the first question that crops up in our minds when we think of Emergency savings. Emergency savings is an essential part of our financial management. You might not know its importance initially but it can have a huge payoff later at the time of need. Being prepared for an emergency can be a wise step for a better and organized future.  A sudden home repair, an urgent car repair or a sudden travel to meet an ill person, such unplanned instances can occur anytime and can become a burden if you’re not financially prepared for it.

Emergency fund

Now that you know the importance of it, you might think about how much to save for an emergency and how to get started with it. Let’s know about the figure to keep aside as emergency savings. We share with you 4 simple steps to establish an emergency savings fund.

4 simple steps to establish emergency savings fund:

How much should I save in my Emergency savings account?

Without knowing a target, it would be difficult to save. The money in your emergency savings should be enough to cover your major expenses for 6 to 9 months.

Start with a 3-months target:

If you’ve just started to save, this figure might look challenging. To get started, you can fix a short-term goal as “money to cover your expenses for 3 months” and build from there.

Know the expense sectors and set an amount for each sector

Now that you know how much to save as emergency savings, list the areas where you spend regularly. In order to evaluate the exact amount to save as emergency savings, you need to consider the following expenses:

  • Food expenses

Evaluate your monthly food expenses for the areas where you can cut down the costs and add this amount to your emergency savings. Meanwhile, look for alternate ways to reduce your food expenses for instance: cutting down on regular dine-outs, cook your meals; pack your lunch, etc.

  • Housing expenses

List down all the costs related to housing such as rent or mortgage, insurance, utilities and property taxes. Add this amount to your emergency savings fund. It is necessary to have enough money in your emergency savings account to cover the emergency home repair costs.

  • Transportation expenses

Track down your daily commuting charges and consolidate it to get the monthly amount. However, if you own a vehicle then add all the costs related to your vehicle (maintenance cost, fuel cost, emergency repair cost, auto insurance and car loan) to your emergency savings. Analyze your transportation expenses and see if there’s any scope to cut down on the fuel charge and save it.

  • Insurance

Add all the insurance costs such as dental, medical, disability, life insurance etc. to know the estimate of your monthly insurance expenses. COBRA (the Consolidated Omnibus Budget Reconciliation Act)enables you to stay on your former employer’s health plan for a limited period under certain circumstances such as voluntary or involuntary job loss, a transition between jobs, divorce, death etc.

  • Debt repayments

Clear off your credit cards debts on time to maintain a good credit score. To avoid any stress in the case of unemployment or bad financial situation, take immediate steps to get rid of all the debts that you have. Try to create a balance between saving money and clearing-off debts by planning ahead and following a proper budget. Once you clear all the existing debts, avoid getting into any new debt.

  • Personal expenses

Don’t forget to consider your personal expenses to know how much to save in the emergency savings account. Include every cost such as toiletries, parlor expenses, haircut; adding all the costs might make a huge difference to the overall budget.

Create a savings plan

To get started with the savings plan, add as savings any bonus or tax refunds that you get. Then, gradually start putting a fixed amount to your savings every month.

Where should you put your emergency savings

There are 2 options to save your money:

  • Regular savings account:
  • Easy to access
  • Good option for beginners who have just started to save and has less money as savings
  • Zero or very low minimum balance to be maintained
  • Money market account:
  • higher interest rates with growing balance
  • Easy to access
  • Requires higher minimum balance to be maintained
  • Offers better returns than a regular savings account

Summing up:

Expenses can crop up anytime and if it’s something that needs to be considered urgently, you should be prepared for it financially. By following the 4 simple steps mentioned above, you will be able to establish an emergency savings fund and have a financially secured future.

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Financial Planning for Marriage

It is not every day; you are going to be married and not everybody who gets married life happily. What are the factors that determine a happy married life? What are the traits you have to look for in your significant other to lead a happy life? What are indicators and tell-tale signs of a right choice?

Well as I said, there are a lot of other factors, which determine a happy married life out of which the financial decision taken during the marriage life plays a very pivotal role. You can judge a partner by looking at the way he handles finances. Miser and Spendthrift are decided based on his spending habits. You gain or lose respect among your family members based on your spending habits. So what are the things you have to look for when you both sit down to plan your marriage finances?

Financial Planning for Marriage

Here are five things to note when you plan your marriage finances:

Thoughtful decision-making:

After choosing our partner carefully, it is always important to take the correct decisions at the right time. This will help in planning the marriage without any hiatus. There are a lot of options available in the market and the marriage can happen throughout the year. Nevertheless, choose the exact time for the marriage is most important. When you try to coincide your date of marriage to any off-peak holiday season then you are going to save a lot of money by paying less for various things. Flowers, hotels and other things are going to be very cheap when you choose an off-peak season. Marriage expenses are a major chunk in your marriage financial planning.

Making the right choices:

The wedding happens once in a lifetime for most of us. Making the right choices for your wedding is very important. Right dress, theme, makeup, chauffer, destination, the place will make the wedding memorable and everlasting. What are the things you have to keep in mind when you choose things?

For example, you can hire the wedding gown instead of stitching or buying one. This will save a lot of money since you will be wearing the gown only on the wedding day and not at any other time. The theme chosen for the wedding should also be chosen carefully, which looks aesthetically appealing yet cost-effective.

Future Stability:

In Marriage financial planning, you should also consider planning your finances at least for two months after marriage. Since you spend most of your savings on marriage, most people are likely to suffer without adequate finances to buy even the basic amenities immediately after marriage. When you plan for the first 03 months of marriage along with you marriage financial planning, it helps you in keeping your best foot forward after the marriage.

Minimum amount needed after marriage = (monthly bills+ rentals+ loans+ amount spent on basic amenities) x 3 or 4.

This will help you to ascertain the amount needed to start your married life on a happy note.

Don’t make the same mistake twice:

It is alright to make mistakes while planning your finances, it is best not to make the same mistake twice because the mistake will be very costly when you make it the second time. It is always best to note down the financial errors you made and should ensure that you do not find yourself in similar circumstance again.

Before you spend, you should ask yourself, “Is this worth it?”

You can spend only when the answer to the question is “yes”. Pause and think twice if you are unsure on the answer to the above question.

Penny Saved:

Whenever we are taught about financial planning, all the experts use a term called “Risk management.” It is always best to do a risk assessment during marriage financial planning. In the risk assessment, you should identify the things, which can go wrong, and the place where money can be saved using alternatives.

A penny saved is a penny gained. The moment you identify alternatives for the conventional items, it is always better to use the alternatives to save some money. For example, you can choose a DJ instead of a live music band. This will help in savings which can be used for future.

Summing up:

Planning marriage finances is not an easy but a daunting task. There are usually a lot of people involved in the planning process. You can easily be misguided when the emotions run high during the decision making process. It is always important to be rational and practical while making financial decisions. A good start to your married life is important like marriage. A well-planned marriage and married life are always important for successful married life. Remember it always happens once and it better to make it the best.

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Smart Retirement Plans

Everything changes with time. People grow old, retire from jobs and then start a new phase of life, the retirement phase. Retirement is a new beginning with new joys with the possibility of fulfilling the missed dreams of youth. Growing old does not indicate lower expenditure, rather it is the opposite. Today an average person lives more than 60 years. The old days become painful if one does not think about retirement plans as early as possible. In these days of high inflation, increasing life expectancy rate, rising health care costs and nuclear family tradition, retirement days are full with anxiety. One thing that promises a happy retirement life is a financial independence. It makes life easier. All it needs is a smart retirement plan so that one could enjoy the retired period to the fullest, without any worry.

Retirement Plans

Retirement plans involve many aspects to consider. The first thing is to decide when you are planning for retirement and what are your expectations that you want to realize after retirement. Say you want to go on travelling or want to buy a car. You may want to try in investment banking, gift your children something or just enjoying your later days with your spouse happily, anything you feel good.  Planning your wishes will help you in deciding how much money you will need after retirement. You can figure out the expected amount by considering your monthly needs which must include possible price rise and certain similar unexpected events that may occur potentially.

Once you have decided what you are saving for, it’s the time to plan how to save it. There are many ways to save the sum and spend it wisely when you will need that later.

Many if the government employees and people working with certain renowned private organizations are naturally extended with pension plans. It is a steady and reliable income source for the post-retirement period.

Even then the amount people get from pension plans is never sufficient enough to cover the expenses. Investment is another great way to achieve your goal. Depending on your retirement period and plans you can choose from a variety of available options. There are different kinds of investment plans are available with different insurance companies and banks. The important thing is to choose what suits you best. In case you are nearing retirement, you may like to choose the immediate annuity policy in which you will have to invest a large sum at once and start receiving pensions immediately. For those young workers who will retire very late, deferred annuity is the best option. Here you need to start building the fund at an early age and you will receive the pension out of this saving once you retire. You need to take care of the tax issue if you are planning for any of the above plans.

Investment banking is another way to get handsome money regularly in old age. You can invest your money in profitable business such as stock market, property marketing, mutual fund, bonds, equity etc. All these involve market risk and require some professional advice but can be highly profitable if manage wisely. The young investors need not worry about the risk as they are long-term investors.

Everybody should be conscious and choose a retirement plan wisely. So that you can enjoy your old day hassle free.

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Tax Planning – Be Careful Every Step Of The Way

Experts will tell you that effective tax planning is vital to keep legal dues at a minimum level. Moreover, it maintains the strain of tax remuneration at a minimum level too. This works in a way that taxpayers are free of overpriced fines that will return from incorrect computation or incomprehensible deadlines. Needless to say, things like this need time, effort and diligence on your part. Attempting to try and do all the accountancy and computations at the last moment by you yourself is certainly uncalled for.

Each procedure concerned here has to be started upon as early as possible. They need to be maintained on a daily basis to confirm complete and consistent records so that you won’t be suspected of falsification of required documents.

Tax planning isn’t easy

tax planningLet’s just say, if you are not careful with your tax planning and its follow-up, it will leave you scrambling through the documents and other paperwork concerned here. Keep a constant check on your record keeping. As long as you get a hold of the receipts, identify your expenses and financial gain, have them scanned and hold on to digital documents. In case you lose the first copy, you would not have much difficulty to pull up another proof. This is helpful when you are vying for tax refunds for the year.

Cutting back is necessary

When you maintain the account of your earnings and disbursal, there are some measures that you must observe to cut back on your dues regardless of your option to file taxes online. These include repairs and maintenance as well as the payments to your insurance policy. Declaration of investment properties is additionally needed by the government. Though these investments are extra sources of financial gain, no matter what value is spent on their maintenance, these will be declared as legal deductibles. This will be for the payments directed to your insurance supplier.

Know the deductibles

If you run your own business, your deductibles might be available in a distinct kind. Regardless of the type of record keeping, you need to be equally thorough and reliable. Superannuation guarantee payments, immediate write-offs, bad debts and losses in stocks are many of those deductibles. Immediate write-offs happen once your total assets don’t add up to the figures set by the authority. If you are not deeding profits as you have got debts to hide, the government authority will offer you help by permitting you to declare your debts to accumulate bated deductibles.

Finally,

Whether you are an employer in an organization or you own your business, you can efficiently include your tax planning with the deductions for your retirement account contributions. In fact, you should take special care to start on this as early as possible to gain on tax savings when getting ready for the long term early. If you are near your retirement age, you can increase the number of your monthly contributions as per your requirement and capability.

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Some Simple Yet Effective Tips on Getting a Loan

Due to bad credit, many customers have been rejected the loan. As the US economy is steadily recovering, investment in the housing market and other industries is increasing. The tendency to take a loan by individual consumers and also by small and medium businesses is also on the rising side.

The current scenario in the market is not as bad as it was in 2009, but it’s not too promising either. More so, small business owners can still secure a loan as they can hire a business strategist or look for options other than banks. But individuals may have to face difficulty getting a loan, especially if they have not-so-impressive credit.

Loan

The following tips could help them to get a loan.

Using Home Equity to get Low-interest Rate Loan

If there’s equity in your property and if you are making payments against the mortgage balance, the real value of your home will be more than market value. This could get you a loan that is tax-deductible and of low-interest rate.

Payday Loan and Cash Advances

Some people detest payday loan because it is short term. But they fail to notice one advantage that comes with a payday loan; payday loan is offered not only by banks but also by private storefront operations. However, this type of loan is banned in many states and charge an abnormally high-interest rate.

Cash advances carry interest rates that are less than payday loans. Another benefit of cash advances is that you can collect the money from ATM. But the interest will start to accrue as soon as the loan is obtained.

Both payday loan and cash advances are for short-term purposes. Don’t go for them if you need a loan for the long term.

Choose a Loan Based on Credit

If you have bad credit, getting a house loan could be immensely difficult, but getting car loan may not be that difficult. Besides, if you are unable to repay the loan, you can send the car to scrap yard and get money.

Similarly, if you are a student with solid academic credentials and have a poor credit rating, the wise thing for you would be to apply for a student loan as that is easy to obtain despite having bad credit.

Find a Co-Signer

A co-signer should be one, who knows you personally and have good credit. It is better than borrowing money from that person directly. Sometimes, people refuse to become co-signer because if the other party fails to repay the money, the creditor would ask him the make the full payment. So it totally depends on how you could pursue someone.

Make an Application to Credit Unions

First, you need to be a member of a credit union by depositing a token amount of money. Then you can apply for a loan. Credit unions are financial cooperatives, owned by members. The advantage of taking the loan from such organizations is flexible interest rate and better communication as those unions operate mostly from certain territories.

The tips mentioned above could help you get a loan, provided you know your expectation and abilities well. Other than the aforementioned tips, you can also try raising your credit score because a good credit score could increase your chances of getting a loan significantly.

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Your Personal Finance Guide: 12 Simple Tips to Save Money

Looking for a way to upgrade your finances?

It’s possible for anyone to give a new turn to their financial journey by making the right move in the right direction. All you need to do is take the right step by following a few simple tips to save money. Sometimes, the hardest thing to do is take the first step towards your financial journey. We share with you 50 simple yet effective tips to save money and churn the wheel of your financial journey. Few tips would just take minutes to implement and few would take weeks. You can choose what you feel can be followed immediately and gradually increase the count. To get started, go through the list and follow the 12tips to save money. Create your own personal finance guide and add these12 tips to get started. Although, initially the difference would be small but with time you will be able to see a huge change in your financial journey. Remember perseverance is the key to success.

financial success

Let us understand the 12 tips to save money and how it can help you in your overall financial journey.

12 simple tips to save money:

The shopping rule: make a list before you shop

Making a list of items to buy before you enter a supermarket will help in preventing impulsive buying. It will also help you in keeping track of things you buy and also help to look for alternatives.

Heard about the 30-day rule?

Always buy an item you desire after 30 days. When you do that, you will either not buy the item or the desire to buy that item would have subsided. This will help you in saving a lot of money and savings.

Sell those unwanted stuffs

 Always sell the items which you don’t use it for more than a few months. It will help you in providing additional cash either to spend or save.

Switch to a different bank and earn more interest

You don’t have to live with high interests for your loans when you make regular payments. There are banks which help you in transferring your existing loans with lesser interests. This will help you in saving valuable money lost in high interests.

Enjoy the benefits of all customer reward programs

Only buy what you can use. When you feel something is really important to buy look for various customer reward programs which provide good benefits for the items you buy. These programs will help you in making a buying plan for the future.

Enjoy a TV-free life.

Television has become essential in everybody’s life. By not watching TV you are not only saving your electricity bill but will also think of other ways of making money such as side business and other investment plans.

Become a gift maker.

Everybody loves to feel special. When you make an effort to create useful gifts to your friends, it will be appreciated and you will also save money on buying unnecessary gifts.

Host a “house party”.

Partying reduces your stress. Party should never become a reason for your stress. The amount you spend in a party can take a toll both on your food budget as well as on the savings. Instead, host a house party and prepare all the things if possible, this will help you saving money for useful expenditures

Clothes stitched can be handy.

This is one of the useful tips to save money. Don’t throw your pant just for a small hole, or a shirt for a lost button; instead, stitch the button and patch the hole so that you reuse it during your crunchy times.

No big budget entertainments.

Making entertainment plans for the kids is always important. But that plan should not take a chunk of your lifetime savings. Find creative to entertain the kids, use items which will kindle their creativity and not their pockets.

Game what you can master

Being video game savvy is good. Only buy games which you can master and which has high resale value. Always buy another game when the first game is completely conquered.

Quench your thirst.

Drinking water is always good for health. But drinking a glass of water before every meal will not only help you to stay full for longer period of time but will also help in consuming less food. This will help you in saving a precious amount of money in your food budget and also in maximizing your lifetime savings.

Summing up:

The above tips will help you in saving precious money which can be used on your lifetime savings.  This money saved can be used for making investments which will help in increasing your standard of living.

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