After Divorce: Build the Financial Future You Want

bankrupt-woman
bankrupt-woman

The divorce has been finalized. The papers are signed, the dust has settled and now you can start thinking about your future. It’s the perfect time to take stock of what you want for the next phase of your life. And as you do this, it’s also a good time to think about your financial future and make sure you’re set up for a secure, rewarding retirement. Why should you think about retirement now, when it may still be many years down the road? A financial plan may seem premature, but the sooner you set it up, the longer you’ll have to build the resources you’ll need later on. You’ll also be taking control of your financial future, maybe for the first time in years – and this can be truly empowering. That’s what one of my clients discovered when she came to me soon after her divorce. A … [Read more...]

How to Include Real Estate in Your Retirement Plan

college-student-credit-card-marketing
college-student-credit-card-marketing

If you are looking for a truly unique retirement investment plan, consider including real estate in an IRA. It’s more complicated than most other IRA types, but it also offers benefits that no other retirement plan can. Can You Legally Hold Real Estate in an IRA? The rules on the types of investments that you can hold in an IRA are surprisingly liberal. The IRS has just two investment categories that are not permitted to be held in an IRA - collectibles and life insurance. Other than that, anything goes. So the answer is, yes, you can hold real estate in an IRA. Why You Might Want to Have Real Estate in an IRA There are number of reasons why you might want to have real estate in an IRA, but topping the list is turning real estate into a completely tax-sheltered investment. By … [Read more...]

She Who Manages the ‘Gold’, Makes the Rules – Join Us For The Smart Women Finish Rich Seminars

emergency withdrawal 401k
emergency withdrawal 401k

Women live longer than men.  This is fact.  So it makes sense that we need a few more coins in the bank to make it through our golden years without going broke. We face many more challenges which prevent us from saving enough for retirement.  Our careers are often interrupted to care for the little ones and/or elderly parents resulting in earning less money during our prime years, lower retirement balances, social security benefits and pension benefits than men in the same age group. The average amount of social security benefits is a little over $17,000 per year for men and a little over $13,000 per year for women. One of the reasons that women are likely to have lower lifetime benefits is because they often have lower lifetime earnings than men. They are more likely than men to take … [Read more...]

401k Investment Alternatives To Consider When Planning For Retirement

emergency withdrawal 401k
emergency withdrawal 401k

In the 1980's, employer offered pension plans went the way of the Dodo bird, and were replaced in large part by a 401(k). The 401(k), which is unimaginatively named after the section of code that lays out the rules for them, is a retirement plan that both the employee and employer pay into. But one of the things that makes a 401(k) unattractive to many is that the employer does not have to offer a 401(k) or pay into it right away. In addition, you have to closely monitor your 401(k) because you can only contribute so much tax free, and you need to change your contribution amount when you get a raise if you want to keep up with the cost-of-living later.  Whether you are dissatisfied with the restrictions on a 401(k) or it simply is not available to you, you can still prepare for life after … [Read more...]

Are You Leaving Cash On The Table At Work?

retirement
retirement

Many employers offer benefit packages in order to appear more attractive to workers. Good benefits draw in and retain high-quality employees. Qualified retirement plans are one important part of these programs, and most people who have a day job are familiar with them. Private companies typically have a 401(k), government employers or non-profits may offer the equivalent 403(b). In this post, we will explore matching, vesting, and concentrations in qualified plans. Matching Some employers will match retirement plan contributions. Matching is a way for employers to improve the value of their benefits packages. Matching encourages workers to participation in qualified plans, and employers get tax benefits for contributing. And of course, employees like working for companies that help them … [Read more...]

5 Ways To Simplify Your Retirement Planning With Social Media

retirement
retirement

Worried about your retirement plans? Get on track with social media, and meet your financial objectives quickly and efficiently.  Gathering information and educating yourself about retirement planning was an arduous chore before the internet and social media made it easier. After all, who wants to read thick books filled with financial geek-speak about optimized asset allocation models, Monte Carlo distribution algorithms, and historically derived safe withdrawal rates? Yuck! You need simple answers to hard questions, and fortunately those resources are now just a mouse-click away. With the proliferation of social media, you have access to a world of retirement planning tools that previously didn’t exist. Sites such as Twitter and Facebook, mobile apps that provide real-time … [Read more...]

What It Means To Become A Scheme Trustee

42-16472866
42-16472866

Today's Guest Post is written by Hal Wightman of Pensions Clarity It is a misconception that the role of trustee has to be filled by a finance professional.  While many companies offer a roster of professional trustees, boasting a wealth of expertise and experience in the industry, many trust schemes appoint lay-trustees to oversee their management and guide them through the financial landscape. Anyone can become a trustee, but it is vital that individuals appointed to the position understand what will be required of them - and the demands the role will place on their professional and personal lives. The demands of the role… Whether a smaller charitable trust, an inheritance plan or a large pension scheme dealing with hundreds of beneficiaries, whatever the nature of a trust, the … [Read more...]

5 Easy Ways to Save for Retirement

women and retirement
women and retirement

People who are new in the employment world may think that retirement is way too far away to consider. The truth is that the best time to start saving for retirement is during your 20’s or 30’s. By saving for your retirement early, your savings have more time to grow and will become more valuable after 40 or 50 years. Most often, young people are on a tight budget. Nevertheless, there are still many ways they can save for retirement. Do away with unnecessary expenses. Young people are more likely to be tempted to buy things that give them pleasure rather than those that address their needs. It is important to start saving as much as possible while young. The best thing to do is to spend money only on things that are needed the most such as food, transportation and shelter. Things … [Read more...]

IRA vs 401k – Crucial Differences to Help You Plan Retirement

RothIRA_Woman
RothIRA_Woman

For some people, retirement years conjures up visions of enjoying the things you have always wanted: driving around the country in an RV, going to see the world and places you’ve always wanted to visit but have never had the time to visit. So, planning your retirement is crucial if you want to enjoy it. So, the question actually is “which retirement plan should you choose?” IRA, 401K or both? These two retirement plans while different are both advantageous. So, please take a careful look at both options before making your choice. IRA Retirement Plan IRAs can be either traditional or Roth. A traditional IRA retirement plan often requires you to fund the plan outside of your workplace. People within a certain income bracket stipulated by the government qualify for this. You don't … [Read more...]

Should I Cash Out My 401k For An Emergency?

emergency withdrawal 401k
emergency withdrawal 401k

Life happens. No matter how much we plan and try to control events, things sometimes spiral out of control. And to control the damages or the effects, you often need to turn to sources you never would have considered before. Most people would prefer to leave their retirement funds until they retire. But when there is an emergency and the only option left is to cash out your 401k, what do you do? Should you cash it or not? Quite a few young working adults make this really terrible mistake for things that aren’t such a big emergency. Before you make up your mind on whether to cash it or not, there are some things you need to know: ....the government imposes a 10 percent penalty on any withdrawals before age 59½. Some early distributions qualify for a waiver of that penalty, for … [Read more...]

5 Basic Steps for Retirement Planning

women and retirement
women and retirement

I’ve find it remarkable that we have to plan our retirement decades ahead of time. With so much information about women, money, and investing, where should you even start? I decided I would think through the experiences I’ve had with women and investing. And three different women stood out to me because their concerns and questions were innocent, and, yet, they were eager to learn. A woman in her mid-thirties who felt investing was like gambling. A young lady in her twenties who felt she didn’t need to think about retirement, yet. A woman who asks “what’s a brokerage account?” QUESTION: What would you say to each of these women? Here’s what I said to each one: 1. “It’s natural to feel that way. Most people are like you, fearful of losing money more than they are hopeful of … [Read more...]

21 Days to Rock Your Finances: Day 15 – Roth IRA vs Traditional 401k vs Roth 401k vs 403B vs SEP IRA

roth-ira

Once you've tackled debt and saved enough towards at least 3-6 months of living expenses in an emergency fund, then you can start thinking about investing in long term goals. This can include retirement, college education, owning a home or anything that warrants a longer term investment of time and money.  One thing to note which goes against Dave Ramsey’s advice in this area, put your retirement ahead of your child’s college fund.  Why?  You don't have a second chance to save for retirement whereas your child will have several options to pay for college should they choose that route. Let's take a look at tax advantaged savings plans.  Tax rules are always changing so it’s important to be sure you’re maximizing your savings accounts to get them working as hard for you as you do for … [Read more...]