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Other Added - Working Your Way To Financial Freedom
Annuities can be very good things for some of us and a disaster for those of us who have not been made aware of the pitfalls and traps that in turn can easily befall them.Since most people have or are going to look into annuities as a retirement or and an investment vehicle, make sure it fits into today’s needs and parameters. It has to be right for the times we are in and it needs to be periodically revaluated for tomorrow’s world.Precautions to be taken when buying annuities:1. One should not Buy Annuities With Long Surrender Periods:vings.
Whopping inheritances
We all hear that baby boomers are supposed to inherit a huge sum of money, but how far is it true?
Many of the estimates made in the 1990’s have not materialized in the 2000’s. Most of the inherited money is being spent on medical expenses because of the slow death-rates in the country.
Phil Marti, while answering questions on the Rule of Re
Why should you consolidate student loans? The answer is simple - you lower your monthly payments to fit your budget, make repayment much easier and save money on lower interest rates.Whether you have federal, private, graduate student loans or parent PLUS loans, you should consolidate those loans so you can manage your monthly finances.As you start your new life and new career, you need your money for rent, new furniture and maybe a new car. You could be considering buying a home, getting married or starting a family. Whatever the case may be,
Well, when we know all this, then why are we not saving? Most people retire at some point of time or other, but little do they plan to make life comfortable after. Some of the probable reasons could be -
Social security and pension
Suppose you have worked for Exxon Mobil (NYSE:XOM) or say General Electric (NYSE:GE) or maybe you have served as a teacher or a policeman, then you would end up with a decent pension though it will be lesser than what you earned earlier.
Even if you have worked for 25 years with a company that offers a defined benefit plan, for a salary of $50,000 per annum, you would get a pension of $18750.together with your earnings from social securities(say $75,400 approximately).you would end up with a decent post-retirement income of $34,150.
However the catch here is the number of years you have worked in that company. Say, if you have worked for 15 years, your pension would drop to a meager sum of $11,250 and even after adding your social securities it would be $26,650 a year! Now that will be difficult to live on.
Another fix is that your pension benefit is not subject to inflation. Whatever you got at 65 years of age, is what you will get even when you turn 85.
Most of us ignore the fact that unless we end up with a real high pension, it will be difficult for us to make both ends if we don’t have our own savings.
Whopping inheritances
We all hear that baby boomers are supposed to inherit a huge sum of money, but how far is it true?
Many of the estimates made in the 1990’s have not materialized in the 2000’s. Most of the inherited money is being spent on medical expenses because of the slow death-rates in the country.
Phil Marti, while answering questions on the Rule of Ret
We'd all like to win the lottery, and it happens to some, but for most of us if we want to make money in the real world, we need to look at things realistically. Here are some ways of making money and things to consider. Online or Offline? I'm sure you know what an online business is, but an offline business is one out in the real world with staff, inventory, physical overhead, high barrier to entry, and usually involves a large amount of startup capital. Although online business is low barrier to entry, it's not easy to make your fortune online.At thi
Social security and pension
Suppose you have worked for Exxon Mobil (NYSE:XOM) or say General Electric (NYSE:GE) or maybe you have served as a teacher or a policeman, then you would end up with a decent pension though it will be lesser than what you earned earlier.
Even if you have worked for 25 years with a company that offers a defined benefit plan, for a salary of $50,000 per annum, you would get a pension of $18750.together with your earnings from social securities(say $75,400 approximately).you would end up with a decent post-retirement income of $34,150.
However the catch here is the number of years you have worked in that company. Say, if you have worked for 15 years, your pension would drop to a meager sum of $11,250 and even after adding your social securities it would be $26,650 a year! Now that will be difficult to live on.
Another fix is that your pension benefit is not subject to inflation. Whatever you got at 65 years of age, is what you will get even when you turn 85.
Most of us ignore the fact that unless we end up with a real high pension, it will be difficult for us to make both ends if we don’t have our own savings.
Whopping inheritances
We all hear that baby boomers are supposed to inherit a huge sum of money, but how far is it true?
Many of the estimates made in the 1990’s have not materialized in the 2000’s. Most of the inherited money is being spent on medical expenses because of the slow death-rates in the country.
Phil Marti, while answering questions on the Rule of Re
With full time jobs becoming a thing of the past, more and more people are becoming entrepreneurs whether out of desire or necessity.It requires a whole different set of skills, and a different outlook than being an employee, but by knowing where you are strong and where you are lacking, you are empowered to seek help in the areas you need it before it “comes back to bite you”.1. Independence You can’t be an entrepreneur if you are constantly depending on someone else. You have to be willing to stand on your own two feet. In han
However the catch here is the number of years you have worked in that company. Say, if you have worked for 15 years, your pension would drop to a meager sum of $11,250 and even after adding your social securities it would be $26,650 a year! Now that will be difficult to live on.
Another fix is that your pension benefit is not subject to inflation. Whatever you got at 65 years of age, is what you will get even when you turn 85.
Most of us ignore the fact that unless we end up with a real high pension, it will be difficult for us to make both ends if we don’t have our own savings.
Whopping inheritances
We all hear that baby boomers are supposed to inherit a huge sum of money, but how far is it true?
Many of the estimates made in the 1990’s have not materialized in the 2000’s. Most of the inherited money is being spent on medical expenses because of the slow death-rates in the country.
Phil Marti, while answering questions on the Rule of Re
This is how the conversation went on my follow-up visit to the oral surgeon, 10 days after he removed 2 lower wisdom teeth."Go down the hallway, enter the second door on the right and take a seat in the dentist's chair," said the receptionist after calling my name out to the 5 people in the waiting room."How is it all going?" asked my oral surgeon slapping on a pair of examination gloves."Great" I replied truthfully. "I've been totally pain free since the operation.""You won't be when you get my bill!" he said in half jest.
Another fix is that your pension benefit is not subject to inflation. Whatever you got at 65 years of age, is what you will get even when you turn 85.
Most of us ignore the fact that unless we end up with a real high pension, it will be difficult for us to make both ends if we don’t have our own savings.
Whopping inheritances
We all hear that baby boomers are supposed to inherit a huge sum of money, but how far is it true?
Many of the estimates made in the 1990’s have not materialized in the 2000’s. Most of the inherited money is being spent on medical expenses because of the slow death-rates in the country.
Phil Marti, while answering questions on the Rule of Re
It is so easy to get into debt today when the average American has five to nine credit cards which are used for everyday living expenses. All of those charges accumulate and the monthly bills get bigger and bigger. Eventually, the consumer's income doesn't cover all of the monthly bills. Throughout the month the consumer has bills arriving with different due dates and different interest rates and different finance charges and penalties. Leaving one bill go for a month in order to pay a different bill results in finance charges or penalties. The consumer wh
Whopping inheritances
We all hear that baby boomers are supposed to inherit a huge sum of money, but how far is it true?
Many of the estimates made in the 1990’s have not materialized in the 2000’s. Most of the inherited money is being spent on medical expenses because of the slow death-rates in the country.
Phil Marti, while answering questions on the Rule of Retirement Discussion Panel, had said the following about an inheritance of $300,000 -
“If it happens, it’s found money, but don’t count on it. My parents, who died at 89 and 90, got along pretty well until May 2000. My mother died June 2001 and my father May 2002. In between we spent well over $200,000 on home health care, plus all the other expenses that go along with maintaining a life.”
Tendencies to save later
Always remember, that the earlier you start to save, the more amount of money you save. As far as saving is concerned, time and money are directly proportional to each other. See below how much a person could have saved at each stage of his life, keeping aside $3000 a year (which also happens to be the contribution amount to the IRA).
Age -- Amount saved at 65 years
25 -- $914,031
26 -- $601,623
27 -- $391,932
28 -- $251,184
29 -- $156,713
30 -- $93,303
So now you know that the value of your nest egg can be depreciated by a one-third, for even 5 years of delay. So I hope you have well realized that time is money.
Inability to save
If you have a family or you stay in an expensive area, it is difficult to save money. But with a little thinking and revamping of your expenses, you can definitely cut down certain costs which are not doing any real good to you.
We all have useless expenses and bad investments, like I had my gym membership and cab
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