Retirement should require less income than was needed during working years because you no longer have to pay FICA taxes or will be diverting money to retirement accounts. In addition, retirement income is often taxed at a lower rate. Note, however, that social security benefit income can be taxed. Traditional IRAs and 401(k)s are taxed as ordinary income, and capital gains and dividends are also … [Read more...]
It’s Not What You Make, It’s What You Keep – The Strategic Importance of Tax Planning for Retirement
It's no longer what you make once you become a retiree because now, you are no longer receiving a paycheck, you are living on your retirement savings. Social security can give you some added means of financial support, but you will need savings as well to live on. You can start a Roth IRA, which will allow you to put more money away for your retirement and it is a tax free savings, you can … [Read more...]
5 Important Lessons About Becoming an Entrepreneur
There are quite a few lessons that people need to learn about becoming an entrepreneur. It's very important for you to do what you love, as most startups end in failure. If you're doing something you love, it'll be easiest to make your business a success. It's essential to commit to hard work because without it, your business has no chance to succeed. Finally, never stop learning. The best way to … [Read more...]
5 Moves to Ensure You’re a Retirement Multi-Millionaire
The most realistic way to become a multi-millionaire is through your retirement account. If you begin saving early, ideally through buying stocks, you'll see investment earnings many times greater than your initial investment amount. For your 401(k), max out your legal contribution amounts, if possible, and take advantage of any employer matches. On the spending side, keep debt to a minimum. Shop … [Read more...]
Retirement Income Planning and the Bucket Strategy
The goal when you are retiring is to move from financial dependence to financial independence. You can make this happen, but it won't happen without planning. If you are wanting to retire, you need to make note of all of your expenses and save accordingly for when you retire. There is a three bucket rule that financial experts have weighed in on and the idea behind the three bucket rule is to have … [Read more...]
Many Americans Want to Retire Early, Move Out of U.S.: Survey
More Americans are looking to move out of the US when they retire. The unpredictable conditions of the US are a motivator for some people to go somewhere where life is a little more tranquil, like Costa Rica. Cost is another factor. When people retire they are only getting some of the money they are used to getting, and so to save money, they are thinking of moving out of the US for a more cost … [Read more...]
3 Reasons a Roth IRA Is a Perfect Supplement to Social Security
A lot of seniors use social security benefits when they reach retirement age as a way to stay afloat. What you maybe didn't know, is that social security was never meant to be your sole source of income. For those who choose to continue working in retirement, either to supplement their income or cure boredom, a roth IRA may be a positive step in the right direction of being okay financially. A … [Read more...]
The Hidden Retirement Crisis: Older Americans’ Debt
Retirees are found to be carrying a lot more debt these days than they were in previous years. Retirees are also taking on part time jobs or opening small businesses and staying in their homes longer instead of moving into a retirement community. This large amount of debt they carry could be from credit cards, students loans, or maybe their mortgage still isn't paid off yet. The stress related to … [Read more...]
Tips for Dealing with Debt in Retirement
Understanding your debt is the first step to paying it off. A lot of retirees are entering retirement with a mountain of debt. This causes financial stress that affects all aspects of life. When someone has debt going into retirement, they likely won't have money laying around for an unexpected bill or for medical expenses. It is best to figure out what you owe as far as debt, and figure out how … [Read more...]
How Much Do I Need to Save for Retirement?
Retirement planning is something most of us need to worry about. The earlier we start planning, the better the outcome is, with more options available. Individual circumstances will differ, but there are some general rules you should follow in order to retire comfortably. Try to put as much as 15% of your income aside and plan on needing 80% of your regular income in retirement. Plan on additional … [Read more...]