The hardest part of sticking to any financial planning for retirement is keeping your eye on the ball when retirement happens to be so far away and there are pressing needs right here, right now every day. Today’s unexpected expenses always seem a lot more urgent than falling short 40 years down the line. Things no longer seen as far away and removed from your reality when you are into your 40s or 50s though. You just need to pull yourself together and save as much as you can to minimize your risk of running out of money in old age. If you are in your 40s, and you are still 20 years away from stopping working. And that is a lot of time to make up.
Embarking on your financial planning for retirement, the first place you want to turn to is your 401(k) or 403(b) plan. If your company has a policy where they will match your contribution, it’s a no-brainer – you absolutely need to take advantage of their matching contribution to double your savings. It’s like right away getting a 50% return on your investment or better. Ask about what the largest matching is that they’re willing to come up with, and make sure that you take advantage of it. Whatever contribution you put down on the form, it’ll go straight out of your paycheck. That’s a good way to save – never seeing the money that you’re supposed to save. If you are starting late, socking away 20% of your income in your retirement fund is a good idea. The most you can put away every year is $16,500 under the age of 50. That’s what you should be contributing.
But that’s not all there is to successful financial planning for retirement when you start late. Once you’ve reached the limit of what you can put into your company sponsored retirement plan, you need to look for other places to save a little money away and if you can manage it. You could consider setting up an IRA or even a Roth IRA. You could cut back on your daily needs and on the little luxuries to put away extra money. For instance, if you get a bonus, you could straight away fund your IRA with it. Every month, you could set things up so that your IRA automatically receives $250 from your account before you get to see the money.
Over the age of 50, financial planning for retirement becomes somewhat easier because you’re allowed to make catch-up contributions. For those company sponsored programs, you can contribute up to $22,000 a year. And on an IRA, you don’t top out until you reach $6000 a year. If you didn’t save enough before, this is a great chance to play catch up.
Most people think that the bankruptcy process is simple and that filing a claim will be a breeze. Because of this, they tend to tackle the process on their own without realizing what they are getting themselves into. While it’s true that you can file bankruptcy without seeking the assistance of a professional, it is certainly not advisable. What most people don’t realize is that the process can be nerve-wracking and time consuming. It is only when they are midway through the process that they realize the enormity of the situation, and by then, it is too late to ask for assistance. You may be worried about having to pay bankruptcy attorney fees, but doing so is often well worth it. Hiring a professional that specializes in bankruptcy comes with a lot of benefits that will help you with your case.
Under most circumstances, people that wish to file bankruptcy are already in financial turmoil, so it’s understandable that they don’t want to give up what little money they have just to hire an attorney. In fact, attorney fees are the reason why people most people don’t seek assistance in the first place. However, there are advantages to hiring an attorney, especially a reputable one. First, you won’t have to waste your valuable time gathering information and filling out the required forms. Preparing documents alone can take up several hours of your time if you attempt it on your own. Plus, unless you’re knowledgeable about the process, you risk committing errors that can ruin your chances of getting your claim approved. Another advantage is that an attorney can provide legal advice and represent you in court when necessary.
On average, you will be expected to shell out $1,000 to $2,000 for a personal bankruptcy claim. Even if this amount seems like it is a lot, the benefits you can get from hiring an attorney will pay off in the end. Try to set up an initial consultation with a reputable attorney to learn more about your situation and what an attorney can do for you.
For people who have managed their assets successfully throughout their life, retirement is a time to enjoy what they have earned. To give an example, let us say that a man about to retire withdraws all of his assets from his investment portfolio at the local branch of his brokerage firm. This includes his IRA and all of his holdings in stocks, bonds, and other financial instruments. Then, he withdraws the entire appreciated amount of his 401(k) from his company’s account. Finally, after paying taxes on both amounts, he combines the two withdrawals together and discovers to his joy that his nest egg is over two million dollars.
This new retiree is to be congratulated; he has reaped the rewards of a lifetime of saving and investing and is now free to relish in them. The only problem he faces is where does he stash the cash in order to keep it safe yet liquid enough to use it? He briefly considers opening a high net worth savings account, but decides against it due to the risk of bank failure. Finally, the answer hits him – annuity investments.
An annuity is a contract between the investor and an insurance company. Essentially, the contract states that the company will pay the investor a fixed sum every month as income. The fixed sum is calculated from the amount of money the investor puts into the annuity. So, for the hypothetical retiree, he puts his two million dollars into an annuity. Assuming he will live another thirty years, that comes out to roughly $5,500 per month in income.
Now his money is safe and secured by the insurance company and he gets monthly income to boot. Our retiree can now use his monthly income to live his retired live as he sees fit. Hopefully he used some of his assets before he retired to set himself up with some nice property. These days, investment property mortgages are easy to get, but inappropriate for investors nearing retirement.