Are Vintage Cars Good Investments for Retirement?

Imagine cruising into your golden years, financially secure and behind the wheel of a vintage car that turns heads wherever you go. 

For many vintage car enthusiasts and retirement planners, this isn't just a fantasy; it's a strategic investment.

There are many things to consider when purchasing vintage cars like Porsches and other luxury brands as well as American-made muscle. Dive into the basics of whether vintage cars are good investments for retirement.

Value Factor of Vintage Cars

Before considering a car as an investment, you must ask certain questions about the vehicle, its history, and other factors to determine its value.

Historical and Cultural Significance of Vintage Cars

Vintage cars are more than just vehicles; they're artifacts that capture the essence of a bygone era. They tell stories of craftsmanship, innovation, and style from different periods in automotive history. Owning a vintage car is like owning a piece of art that also happens to drive.

Previous Ownership and Rarity

Several elements make a vintage car valuable. Rarity is one of the most important factors. Low production runs, 1-of-1 ratings, and low resale inventory can make certain models highly sought after. 

The car's condition also plays a role in whether certain vintage cars are good investments for retirement.

Original parts, minimal rust, and proper engine maintenance can massively boost a car's value. Additionally, celebrity ownership or unique historical importance can add a premium.

The Emotional and Social Perks

Let's not forget the emotional and social benefits of owning a vintage car. The camaraderie among collectors, the thrill of showcasing at car shows, and the joy of driving a classic car make this investment emotionally rewarding.

Investment Prospects of Vintage Cars

Proper planning and management of your vehicles can lead to the prospect of an easy-to-manage, healthy, growing portfolio.

Financial Benefits and Risks

Vintage cars can be quite lucrative when it comes to financial benefits. Over the years, certain models have a much higher value, offering impressive returns. 

However, fluctuations can happen suddenly. Vehicles with a stable history of increasing value are good choices.

Examples of Successful Vintage Car Investments

A great example of a vintage car investment paying off is the 1962 Ferrari 250 GTO, which sold for $48.4 million at auction, a record-breaking price. 

Another success story is the 1967 Shelby GT500, which saw a staggering 15 percent annual appreciation over the past decade.

Factors for Potential Investors

Take the right first steps when beginning your investment journey by considering the following factors in your decision.

Selecting the Right Vintage Car

Choosing the right vintage car for investment requires careful consideration. Stay up to date on models and market demand while looking for opportunities. 

Look for cars with a strong provenance, low mileage, and original parts. Online forums and vintage car clubs can be valuable resources.

Costs of Ownership and Maintenance

Owning a vintage car has some additional costs to keep in mind. Maintenance and upkeep can be costly. Regular servicing, storage, insurance, and sometimes even restoration can add up. 

You will have to factor these costs into your investment plan to avoid unpleasant surprises down the road.

Practice Due Diligence

Always conduct your due diligence when investing in vintage cars. Verify the car's authenticity, check its history, and have a mechanic who has experience with vintage cars inspect it. 

Additionally, understanding market trends and conditions can help you make decisions. Engage with reputable dealers and auction houses to minimize risks.

Consider Vintage Car Investment Opportunities for Your Future

There are plenty of investment ideas and opportunities in life, but incorporating vintage car investments offers a unique blend of financial and emotional rewards. 

The historical significance, potential for high returns, and sheer joy of owning a classic car make this an enticing option for those looking to diversify their retirement portfolio.

Is a Classic Car Restoration a Good Investment?

Many car enthusiasts, old and young, dream of returning an old car to its former glory with a complete restoration inside and out. But is a classic car restoration a good investment?

We answer that and more in our guide to vintage vehicle restorations below!

A Car Restoration Can Be a Good Investment If Done Correctly

Cars, especially older vintage models, are always tricky investments to gauge because they depend on individual factors like condition, rarity, and desirability. 

But while every car project has risks, a classic car restoration can be a good investment if done properly.

Restoring a car is not unlike flipping a house—the right model, with some elbow grease and updates, can go from a junker to a valuable classic and dramatically increase its value. 

If the model is rare or highly sought-after, even some basic cosmetic changes can make all the difference in its value. 

But before you jump into a top-down complete restoration of an old car, there are some things to ask yourself first to ensure it's a wise investment.

Questions To Ask Yourself Before Restoring a Classic Car

What's My Project Budget?

First, you should decide how complete the restoration you plan on doing is and what budget you'll need to finish the project. There are four levels of car restoration, ranging from just making it drivable again to a complete restoration to make it look brand-new. 

The higher the level, the greater the investment and the potentially bigger payoff, so weigh the pros and cons of each level and figure out your needed budget from there.

Is the Car Worth Restoring?

Next, owners should consider whether the vehicle is worth the investment and restoration. Even with thousands of dollars invested into its restoration, a classic may still not be valuable if it's a common model and not interesting to collectors and enthusiasts. 

Research the car you plan on restoring, see what similar models are fetching for sales and auctions, compare it to your proposed budget, and weigh whether the car is worth restoring.

How Much Can I Do Myself?

Doing some parts yourself is a great way to save money during restoration and put it towards other areas of your budget. But you should be self-aware of your abilities and limitations—you can do more harm than good if you mess up and damage the car and restoration. 

You can do the project's smaller, less important aspects but leave the bigger issues to the professionals with the necessary equipment to ensure you don't damage your investment.

Final Thoughts

We hope you've enjoyed our breakdown of classic car restorations and their investment quality. Restoration is an excellent investment and hobby for many seniors, retirees, and soon-to-be retirees. 

So, if you've always wanted to rebuild a car from scratch, there's no better time to do it!

Are Vintage Cars Considered To Be a Good Investment?

Retirement is a time to discover new hobbies and reignite old passions. For many retirees, this means getting into vintage cars. 

While working on and driving these vehicles can be a great way to spend your free time, they might not be the right choice for you in some cases. Classic cars are an investment; if you don’t do things properly, an older vehicle could become a big money sink. 

Fortunately, we’re here to help you discover whether vintage cars are considered to be a good investment.

The Value of Classic Cars

Classic cars, with their timeless appeal and nostalgic charm, often hold greater value and allure than other types of collectibles. These items require meticulous maintenance and specialized storage solutions to ensure their preservation. 

Unlike simpler collectibles like stamps, vintage vehicles demand attention to detail and expert care if you want to get a good return on your investment.

Profitability Aspect of Vintage Vehicles

Vintage vehicles can prove to be profitable assets in the right circumstances. However, it’s important to note that not all classic cars are appreciated at the same pace. The market value of these vehicles can change drastically over time. 

Therefore, careful consideration of the smaller details can lead to a deeper understanding of a vintage vehicle’s potential profitability and investment value.

Risks Involved in Classic Car Investments

Like any investment, classic car investing comes with a set of risks. To eventually generate cash back, an investor needs to purchase the right vehicle and maintain it properly. 

The classic car market can be risky and unpredictable, demanding caution from potential investors. Plus, if you don’t have experience working on cars, any changes or maintenance you do might not go according to plan. 

But something as simple as selecting the right engine oil for a vintage car can make all the difference in keeping your vehicle in top shape.

Accessibility of Classic Car Investments

Investing in classic cars is not exclusive to individuals with high net worth. As an example, one can enter this investment arena with a car purchase within the $20,000 to $30,000 price range. 

While some may consider that to be a bit high, this level of accessibility makes classic car investing an appealing option for many retirees. However, potential investors should account for ongoing maintenance and storage costs.

Maximum Investment Returns

It’s important to note that no vintage car purchase comes with an absolute guarantee of increased value. However, investors can improve their chances by making smart investments. 

Prioritizing well-maintained, rare models and considering the car’s historical significance can enhance the potential return on investment. 

Remember, investing in classic cars offers joy beyond potential financial gains—it involves owning and caring for a piece of automotive history.

The Classic Car Investment Fallacy

While the classic car market might seem attractive, people considering whether or not vintage cars are a good investment must be wary of falling into the classic car investment fallacy. 

You must remember that not every old car will become a valuable classic. Some vehicles may initially show signs of appreciating in value, but a thorough understanding of the vehicle is crucial before making any investment decision. 

By doing this, you can better understand the potential risks and rewards associated with these investments, ensuring ideal financial returns.

Tips and Tricks for Investing in Real Estate

If you're thinking about investing in real estate, congratulations! Real estate can be a great way to build long-term wealth. However, it's important to remember that there is no such thing as a sure thing.

Before you start investing, it's crucial that you do your research and understand the risks involved. 

With that said, here are a few tips and tricks to help you get started on the right foot.

Know Your Goals

Before you start investing in real estate, it's important that you know what your goals are. Are you looking to generate passive income? Are you hoping to flip properties for a profit? Or are you interested in long-term appreciation? 

Once you know what your goals are, you can start researching which type of real estate investment is right for you.

Do Your Homework

Investing in real estate is not a get-rich-quick scheme. In order to be successful, you need to do your homework and understand the market. 

Research things like average rental prices, vacancy rates, and property values in the area where you're thinking about investing. 

You should also have a solid understanding of the different types of real estate investments before you put any money down.

Have a Plan B (and C)

No investment is without risk, and that includes real estate. Before you start investing, it's important to have a plan for what you'll do if things don't go according to plan. 

What will you do if the property doesn't appreciate in value? What will you do if it takes longer than expected to find tenants? 

By having a plan for when things go wrong, you'll be better prepared to handle whatever comes your way.

Work with a Professional

Investing in real estate can be complicated, so working with a professional such as Seed Investco LLC, who can help guide you through the process, is important. 

A good real estate agent will be able to help you find properties that fit your budget and investment goals, and they can also offer advice on things like negotiation strategies and financing options.

Be Patient

Real estate investing is not a get-rich-quick scheme—it takes time and patience to see results. 

If you're thinking about flipping properties, remember that it can take months (or even years) to find the right property, complete the necessary repairs, and find a buyer who is willing to pay your asking price. 

And if you're looking for long-term appreciation, remember that it takes time for property values to go up—you might not see any return on your investment for several years down the road.

Investing in real estate is a great way to build long-term wealth, but it’s important to remember that there are risks involved. 

To get started on the right foot and maximize your chances of success, be sure to do your research and understand the market before you start investing. 

Have a plan for when things don’t go according to plan, and consider working with a professional who can provide valuable advice throughout the process. 

Finally, always be patient; real estate investments take time before they show returns, so make sure you have realistic expectations about how long it will take before you see any results from your investment.

Buying a Second Home: Is it Worth the Investment?

One of the top things that everyone hears about in terms of investing is to invest in real estate. The market is hot right now, with the power resting in the hands of the sellers and renters. If you’re considering getting a second home for your own vacationing purposes, renting out the space while not in use can be a great source of additional income. 

But is it really worth the investment? Here are four factors influencing the costs and profitability that will help you determine if buying a second or vacation home is really worth the investment for you.

Maintenance and repairs

When you buy property, you will have upkeep costs. Older homes are notorious for needing extra care and attention, even if the initial downpayment is less. Planning your budget according to the age of the structure and any known issues can help you avoid overspending. 

If the property requires too much care, then you may want to look for another option. In most cases, it will be a lot better to get a nicer, newer home that has a higher cost but will need less repairs than it is to get a cheaper but lower quality home.

Making money using your home as a vacation rental

Knowing your audience can help you make cover expenses for your property. Millennials make up 40 percent of travelers who search for web rentals. Advertising online, having an excellent SEO program, and using social media to connect to this audience is crucial to getting the right exposure should you use your investment for rental purposes. 




With a great SMM team or brand management company, you can successfully market your rental to reduce vacancies and increase the ROI of having a second home.

Managing tenants

Unless your second property is in a housing development with a homeowner's association, it might be best to hire a professional property management firm to take care of your rental. These experts collect rent, repair household systems, mow the lawn, vet potential renters, and arrange marketing and advertising. 

When you want to invest in the property without the everyday work, these agencies are the best option to remain hands-free. This is especially important for busier homeowners who don’t want to let a second home property turn into a second job.

Market awareness

Before you buy a vacation house or rental property, it is important to investigate the local market. Is there a shortage of houses for sale? Is the area vibrant and diverse enough to draw in the younger crowd? 

How many parks, shops within walking distance, and fine dining establishments are nearby factor into a tourists' decision to stay in a particular location. If you are looking to purchase in your top vacation spot, then you understand the importance of accessibility. Right now, it is more costly to buy a home, but that also means that you will get a greater profit from renting it. 

Waiting for a buyer’s market may result in a lower ROI when it comes to renting the property out again, so be aware of your financial needs and if your current budget can sustain a higher initial cost for greater profit afterward, or if you’d be better off waiting for lower starting costs.

Before you take on an additional mortgage or the responsibility of owning multiple properties, it is a good idea to consider why you want another house. Whether you plan to take on new property as the beginning of a grander real estate investment program or just to have an available vacation home for

3 Tips for Budgeting Around Insurance and Investments

As you look toward the future, setting up the right life insurance coverage while also saving and investing for retirement and other future plans are essential steps. For the most effective results from your planning efforts, both of these factors must receive adequate attention. 

Because they can impact your current budget significantly and because they are essential for the future, a closer look at how you can manage these items in your budget is in order.

Trim down Expenses

In order to pay for life insurance premiums on an adequate amount of coverage and in order to save and invest a suitable amount of money for the future, you may have enough cash available each month to contribute to these areas. 

A smart idea is to review your budget today to look for areas where you can cut back. For example, by updating and reviewing your budget carefully, you may determine that you should refinance your car loan or mortgage to set up more affordable monthly payments. In cash that is freed up in the process can be allocated toward insurance premiums and investments.

Assess Your Coverage Needs Periodically

While you understandably want to have enough life insurance coverage to provide for your loved ones in the event of your death, you also need to ensure that you are saving as much money for the future as possible. 




Assessing your coverage needs periodically may help you to avoid being over-insured. Remember that you can sell life insurance when needed. By doing so, you may use money that was previously allocated for insurance premium payments as retirement contributions instead.

Automate Payments and Contributions

Keeping up with insurance premium payments is critical. Failing to make payments can result in the cancellation of your coverage. Likewise, you may find it difficult to meet your financial goals for the future if you fail to make investment contributions regularly. 

With this in mind, it makes sense to set up automatic premium payments for all insurance policies. It is also a smart idea to make automatic retirement account contributions. Consider gradually increasing the amount of money that you contribute to your retirement account as needed.

Saving, investing and being properly insured are all essential for financial security in the future. Now is a great time to review your current coverage needs and financial goals. If you are falling behind on your goals, take steps to trim down your expenses so that you can properly prepare for the future.

Company Fixed Deposits V/S Bank Fixed Deposits

Fixed Deposit, a banking term that can easily scare those who are unaware of the lingo used by top class bankers and investors. Let’s break down this two-word idea into a much simpler format.

● Fixed – Something that stays still, preferably stable and safe from harm.

● Deposit – An investment; something which gives some returns.

Now when we link them, we get the idea of a ‘stable investment but with a certain degree of profits’. Fixed Deposits can be confusing especially when investors wish to invest yet don’t understand the schemes.

FD is meant to invest your money for a long period of time, and gaining a huge sum of interest a.k.a profit for not withdrawing the money before the maturity date hits. It is a banking instrument for investing money and earning gains.

Advantages for Fixed Deposit

Higher the Interest Rate- Higher the returns and also you get to choose the terms and dates. 

Disadvantages for Fixed Deposit

We cannot think of any except maybe the long maturity dates, but then even that is chosen by the investor.

Bank and Company Fixed Deposits

You could invest via two channels, through your bank or in a company FD. People usually pick a bank as they trust a government controlled organisation more compared to a company or an MNC. However, if we look closely, the difference is startling in the way of how much returns the investor actually gets!

An FD in the bank could give you a maximum of 7-9% based on its capacity and other investments. It seems quite less compared to a company FD. While a prospering company could easily give a maximum of 10% of interest for your investment. It is tricky to find out which company is the right one for you and that is where a company’s credit rating jumps in.

A credit rating system is present to ensure that companies can and will end up repaying their investors, even in times of distress. This credit rating is assigned to a fixed deposit instrument by a credit rating agency after doing a thorough analysis of the business risks, financial risks and the overall management quality.

A major inconvenience is the loss of flexibility, an FD in a bank means no withdrawing rights (under certain circumstances, you can break the FD but pay a penalised fee or get a lower rate of interest). Thus, making you pay additional money from your pockets to get back your own money. That hardly seems fair!

A company FD, on the other hand, allows a variety of schemes that can be manipulated according to your needs and time periods. You could pay a monthly interest or at quarterly intervals. This then allows you as an investor to earn some quick cash on the side.

Company FDs can be used by any target audience; working class, senior citizens, housewives, and even those who are in the zero or low tax bracket. A good idea then is to diversify your funds into different companies which will then lower the chances of risk.

We do suggest to read the application form in detail and to clarify your worries before investing in a company. A track record of the company’s past interest schemes could always provide a good source of information. Another piece of advice is to always keep a check on the credit ratings of the company and to minimise risk by clearing out your money from the company if you see it fall.

On the whole, a company fixed deposit is a good investment idea for the fixed income group investors who are on the lookout for safe returns. Not all can afford the volatile markets, and thus a company fixed deposit can help keep you grounded and your money safe, earning a higher rate of interest at the same time.

What is Forex and How to Get Started?

Benefit from Forex

There are various trading platforms which an investor can employ in order to try and maximise profit when they deal in investments. One of these is forex/FX. Forex refers to the foreign exchange market and is by sheer volume the largest market for trading in the world, with the big international banks as the main traders. 

Private individuals as well as companies are also assisted by non-bank forex entities. Essentially, Forex is about trading currencies whereby one currency is bought and another sold, simultaneously. 

Speculation is often at the heart of forex deals, meaning that the buyers/sellers often have no intention of taking delivery of the currency they are trading in; the whole idea is to speculate with the currency and to try and make it worth their while that way.

Getting Started

When you want to start using forex as an investment tool forex as an investment tool, there are certain ways to go about the process – free webinars or you can attend seminars, which will be of great benefit. Often big companies will lead you through the process by showing you the ropes by way of a risk-free practise account. 

 The internet is also a very helpful tool to get you started and of course, well-known names in the world of investment markets will give great information. Some advice: Remember that past successes never guarantee success/profit in the future. Forex, like all monetary vehicles, depends on current conditions in the market, and should be viewed as such.

Trustworthy Brokers

To help you to get going, it is a good idea to choose a trustworthy broker such as CMC Markets that will offer you lower ‘spreads’ (i.e. the difference between buying and selling currency), someone who is registered with a reliable body that oversees his/her/their activities according to internationally accepted procedures and support as far as news and data are concerned.

Know the Terminology

Before you start trading, make sure you understand some basic terms such as ‘Ask Price’ (the price at which you can buy a currency) and ‘Bid Price’ (the price at which you can sell the currency) and ‘currency rates’ (the rate at which one currency trades against another, e.g. the rate at which the British Pound trades against the US Dollar).

These are available online, and with the help (if necessary) of a reliable broker, you should be able to get a good grasp of the terminology and processes before you commit. 

Once you begin, you will be able to follow which economies are strong and which are not; you will want to get rid of those currencies which are perceived to be weak and, vice versa, you will want to acquire the currencies of those stronger economies. On a daily basis follow the trends and ask for advice from the specialists when necessary.

Tips

As you are starting out, remember the following: Do not gamble, i.e. do not commit to trade more than you are willing to sacrifice. Make sure you have a reputable broker and search the internet for basic terms and their meaning before you start trading. Once you have a basic grasp of the process, start slowly until you feel comfortable to trade more aggressively.

401K Stability and How You can Plan Around Inflation

One of the most common steps most people take to prepare for retirement is to invest regularly in their 401k account. However, one of the most common concerns investors have relates to inflation and how it impacts the growth of their investments. 

If you are concerned about how inflation may impact your 401k going forward, you are wise to do so. Inflation can have a detrimental effect on value of your account, and the 401k account return needs to exceed the rate of inflation to have true net growth. Choosing the right investments is a necessity if you want to protect and grow the value of your account over time. 

Stocks

When you make wise stock selections for your 401k account, you will be taking a step to protect your account balance from the effects of inflation over any amount of years. Stock prices may be relatively volatile over a short period of time. 

However, because companies can adjust prices and expenses to compensate for inflation, this is generally a sound long-term investment to consider to protect your growth from the effects of inflation. This is particularly true when you buy stocks in companies that have a solid history of long-term growth and great growth potential. 

Do your research before you find a secure place to invest in. Once you know where the stocks will grow you will have a better chance of finding a secure retirement. Research is the key here to know where you will get the most bang for your buck.

Short-Term Maturity Bonds

If you are looking for a relatively stable investment vehicle with minimal risk, bonds are a great option. However, a fixed income asset like a bond can be significantly impacted by inflation. The best bet when investing in bonds with inflation in mind is to choose a short term bond. 

These are less impacted by inflation as well as by movements in interest rates. For those approaching retirement age, moving more funds into short-term bonds may be advantageous. Talk to your bank or financial counselor to see what your options are and what will be best in your situation.

Real Estate

There are different ways to invest in real estate through your 401k account. For example, REITs, and stocks in large real estate investment firms provide you with some options. Real estate is largely seen as one of the best investments to make as a hedge against inflation. The value of the best real estate investments typically rise with the rate of inflation. 

Of course, the housing market is cyclical and has its ups and downs. As a long-term investment, however, this is a sound investment to make. It’s best to talk to a professional about where you can get involved and how you can invest in your own property. A company like the Jakob Pek Fund will know the best ways to direct you through real estate investments you decide to make.

Don’t Forget Savings

It’s also important to invest in some regular savings accounts. Whether it’s your emergency fund or just savings account at the bank you should always have some backups in mind to keep money safe for whatever retirement throws your way.

Understanding how inflation affects investment vehicles is necessary when your goal is to minimize the impact of inflation on your retirement account value. By learning about the best investments to make to safeguard your account against inflation, you can create a diversified portfolio with long-term growth in mind. You can have more in your retirement fund than you ever thought possible if you know where to place your money.

Early Bird: How to Start Saving for an Early Retirement

Setting retirement goals and planning for retirement is essential for any individual, but is particularly important when you need to retire at a younger age. By starting early and planning in advance, it is easier to reach retirement goals and plan for a realistic future. 

Although the best plan of action depends on several factors, there are some simple ways to start the process of saving for an early retirement, and keep your finances safe throughout.

Set a Monetary Goal

Retirement planning often requires a specific figure that is appropriate for personal expenses for the rest of your life. Generally, an individual or couple should expect to withdrawal around 4 percent or more per year for their entire life, so the income from investments and savings must meet or exceed living expenses when around 4 percent is taking out throughout the year.

Set a final figure, and then identify appropriate savings for each year. Keep in mind that investments provide income that compounds over a period of several years. As a result, it is easier to reach the final goal when the extra funds are invested early.

Set a Savings Goal

A savings goal is not the same as the retirement goal. It focuses on the amount of money that is available each month and how much you are willing to save. If over-spending is a concern, then have the money removed before it is available for the bills and other expenses. For example, if an employer offers a 401K plan, then take advantage of the plan and put aside the company match or a higher amount.

For an early retirement plan, focus on saving as much as possible for investing. In some cases, it is necessary to set aside luxuries. For example, opt for a used car instead of a new one to reduce the costs and put aside more money in savings. Small luxuries, like a cup of coffee at a coffee shop, or impulsive purchases, are appropriate if they are only occasional treats. 

Put Aside as Much as Possible

Putting aside a small amount of funds each year will add up if you start at a young age; however, putting aside a large amount of income will make it easier to reach a personal goal at a faster rate.

Early retirement requires a large amount of funds to last for a longer period of time. Even if it is only possible to set aside $5,000 in the first year, put the entire amount aside for retirement. If personal income increases due to a raise or bonuses, then take advantage of the savings opportunity. Maintain the same standard of living or only add small increases in overall monthly costs. Put aside the extra income for retirement.

Invest the Savings

Investing is essential for the growth of a retirement account. Avoid the idea that investing in a house is the primary goal; instead, put the savings into a diversified portfolio.
Never put the entire savings amount into one stock, fund or investment. Wait on a house until the retirement account is established.

Pay Off Debts

Although saving is a key part of retirement planning, debts add up due to the interest. It is particularly important to pay of high-interest debts like credit cards because the cost of the debt can drain any returns from personal investments. Do not carry debts forward into retirement; instead, work on a plan to pay off the full cost of mortgages, credit cards, student loans or other debts as early as possible.

Saving for retirement is not difficult, but it does require careful planning. Start saving at a young age by creating a realistic savings plan based on personal income and expenses. Setting aside money early will provide the chance to retire at a young age.

The GOLDen Years: Five Financial Changes You Need to Make When You Hit 60

After spending a lifetime building a career and working toward your retirement goals, it can be an adjustment financially once hitting the age of 60. Although you may be used to living a certain lifestyle, financial adjustments may need to be made to preserve your retirement savings and have your needs met. There are a few changes to make to ensure that the funds last for several decades and are well preserved—keep reading to learn about the most influential changes you should make to your finances once you hit those golden years. 

Reallocate Your Investments

To protect your assets, you might consider shifting to low-risk investments to prevent loss from occurring if you feel comfortable with what you have saved for retirement. If you expect to live longer, you can shift to more aggressive investment options for a few years before you evaluate the success and projected future of your investments. Depending on your financial situation, reallocating your investments could provide you will a little buffer cash to put your mind at ease.

Establish Scheduled Distributions

It's important to reassess your budget each year and make adjustments where inflation may occur for the cost of living. Contact your financial services provider to schedule payments weekly or quarterly, which will ensure that you live within your means and preserve your retirement fund. Look for areas where you can and should make adjustments so that you can take care of payments in a timely manner while still enjoying your finances set aside for retirement.

Downsize Your Home

For those who are in their 60s and have children who have moved out of the home, they are likely living in a property that is too large for their needs. After raising a family that is now on their own, it may be time to downsize and reduce the cost to maintain the home. Consider relocating to gated community or condo where landscaping and maintenance won't be a concern and costs for home upkeep will be lower. When it comes to home insurance, the professionals at Underwriters Insurance Brokers Ltd who specialize in Vancouver home insurance suggest that you increase your deductible so that you can enjoy lower monthly premiums. Living in a house that is too big, and paying too much for home insurance will drain your hard-earned retirement funds much faster than necessary, so consider downsizing before too much money is wasted.
Use the Money from Taxable Accounts First

To avoid paying more in taxes with your 401(k)s, make it a point to use the money from the accounts that will be taxed the most after also using the accounts that are not a part of your IRAs or 401(k)s. Using your taxable accounts first will be more efficient, and will keep you from cringing too much when tax season rolls around.

Take Advantage of Tax Breaks

Each state has age-related tax breaks that offer deductions and exemptions for ample savings each year. Research what you qualify for through the state department or talk to a financial advisor to find out what types of tax breaks you might be eligible for. Many people have no idea that they qualify for any tax breaks, so they miss out—do your research and talk to your accountant or financial advisor to see if there are any breaks you should know about or look into.

By making a few financial changes once you turn 60, it can preserve your retirement funds and make it possible to live more comfortably in your golden years. Although it may take time each year to manage your investments and downsize in certain areas, the changes will ensure that you enjoy a happy and healthy retirement while taking advantage of the fruits of your labor.

Retiring on Time: Ways to Set Yourself Up for Success

For an individual in their 20's, retirement can seem like something light years away. There are still decades of life and work between where they are now, and where they will be when they reach retirement age. This makes now the best time to plan for a successful retirement. By starting to plan for retirement early in life, a young individual is setting a solid foundation that is going to make it a lot easier and comfortable for them when they reach retirement age.

Believe it or not, for a person who starts early enough, retiring as a millionaire is a realistic option. You do not need a lot of money to start off with. What you need is a consistent amount of money that is invested over a long period of time. A person doesn't even need to be an investment guru like Warren Buffett. All they need to have is patience, self-discipline, and the mental fortitude to keep to their investment plan.

Take Advantage of the Time You Have

A person who is in their 20's and is able to stay relatively healthy, is probably going to work for the next 40 years. An individual who invests $100 every single month and receives 10 percent annual returns on their investment will have saved over $630,000 by time they retire. Increase that monthly investment to $250 a month, and now we are talking about retiring with $1.5 million saved away. Now if you really want to take this scenario to the extreme, a person in their 20's who starts investing $2,000 monthly in something that will give them a 10 percent annual return will retire in 40 years having saved $12.6 million. As you can see, it’s not necessary to invest a lot of money to retire well. It is necessary to take advantage of the time that you have.

Take Advantage of Your Raises

A young person who first enters into the work field is unlikely to be earning a higher end salary. However, they are likely to be in the middle of the highest growth potential in salary that they will have throughout their entire life. Basically, as their skills improve, their pay will improve. Why not leverage raises to increase investments? The money that you get as a raise, is money that you are living just fine without prior to the raise. So instead of spending it on gadgets and other things that you just don’t need, invest it in your long-term future.

How Much Money Will I Need to Retire?

The answer to this question is going to depend on how much you plan on spending. An individual planning to retire at 60 is encouraged to have saved at least 15 times what they want their annual salary to be. So, for a person who is looking at living on $60,000 a year, they will need to save approximately $900,000.

According to Gittens & Associates his number increases for those who are looking at leaving a legacy behind for their children. The amount of money that they want to leave behind in a will or trust needs to be taken into consideration. It would be a good idea to sit and talk to an attorney and discuss the specifics of making a living will and any fees that are associated with this. Discussing retirement plans, trusts, living wills and things of this sort with the power of attorney in Newfoundland or other parts of the world, is all part of successfully preparing for retirement and beyond.

When a person is in their 20's, life seems like it is in front of them. And that is true. However, the decisions that a person makes in their 20's will affect them financially in the future, and will decide whether retirement is something they look forward to with pleasure or something that they look towards with dread.

Decline of the US dollar and benefits of rolling over part of an IRA to gold and silver bullion

 (Photo credit: Wikipedia)

Gold is perhaps the only worldwide standard for comparing the value of other currencies. Unlike any other type of monetary system, gold has withstood the test of time and it continues to defy market collapse, economic downturn, and unpredictable, catastrophic occurrences. In fact, all other currencies are based on some type of gold or silver bullion, and the currency itself is just a synthetic representation of the tangible metal.

Gold is seen as a safe-haven asset, one that investors pursue when there is trouble in the financial markets. As tensions between Russia and Ukraine over Crimea rose in the last weeks, gold price has increased. This happens over and over again in turbulent times.

Currencies, especially the US dollar, are at a higher risk for experiencing inflation because there is never a strict limitation put on the amount in circulation. Mints and other currency printing agencies around the world can essentially create more paper and coin currency than there is gold to back it up. Of course the systems do not usually intend to create a disproportionate amount of currency, but in a day’s time, currency is lost, destroyed, recollected by the mints, or put away in a collector’s safe. There really isn’t a very efficient way to maintain an accurate circulation of currency that is truly indicative of the gold reserve. In other words, there is no way to keep a running database of what currencies are actually floating around for future spending versus the currency that has been lost or destroyed.

Individual Retirement Accounts, or IRAs, are a great way to invest your savings to tap into the opportunity for interest growth. Although there are a myriad of different types of investment accounts, an IRA is either controlled by an administrator or the individual.

One way to guarantee a baseline of investment value is by transitioning your funds into the purchase of gold. Perhaps you’re curious on how to achieve a gold IRA rollover? Basically, you have to first consider whether your IRA contributions are self directed or controlled by a trustee. If they are self directed, you can make the decision, without gaining permission from anyone else, to make adjustments to your investment account. An overseer would have to approve and facilitate the rollover transaction if your account is traditional.

There are several different companies that specialize in gold transactions, and the most realistic suggestion is for individuals to research and pick a company that appears to have the assets and reputation that efficiently meet your needs. After all, this particular company that actually buys the gold will physically store it for you as well. If you were to have the gold directly disbursed to you personally, be expected to pay a hefty penalty for early withdrawal. The facilitating company is known as a gold custodian.

In order to rollover your IRA funds into gold, the gold itself must meet quality standards. There are also limitations on the time span of the process and the total amount that one can invest annually. Once you start the IRA rollover process, it should be complete in no more than 60 days. If the transaction is not expedited accordingly, the investor, or yours truly, risks having to pay a withdrawal penalty. IRA investments are limited to no more than $5000 each year, but rollovers do not have a cap. In order to buy a significant amount of gold, you must start out with a reasonably valuable IRA account.

Why should you consider investing in gold? Despite mild variations and small fluctuations in the stock value, gold tends to be one of the most stable entities that exists. Any financial expert will advise their clients to diversify their portfolio, and don’t put too many eggs in one basket. Gold is a very secure basket that maintains its value over time. Gold is an especially smart choice when the overall market itself has had a significantly varied performance. Gold is a great way to maintain your investment values over short term fluctuations. 

Looking Ahead To Retirement - How To Plan Now For The Future

retirement (Photo credit: 401(K) 2013)

It may seem far off in the future, but each day that you work means that you are one day closer to retirement. And while this can seem like a golden age for some people, retiring without the adequate funds can be a detriment to those who aren’t prepared. You don’t want to retire only to discover that you don’t have enough money to live the lifestyle you wanted. This could mean that you end up living maybe even worse off than when you were working. This is probably the biggest problem facing people today as they consider when to retire.

In order to make sure that you are prepared, it’s never too early to start planning for retirement. Here are some tips for how to plan now for the future. 

Have A Budget

Even if you have a job where you make six-figures, that doesn’t mean you need to have a six-figure spending habit. No matter the job or income, be sure that you have a budget that limits how much you spend and save each month. Obviously, the latter should be weighed more heavily than the spending. By not having a budget, many people just try and play the guessing game, which usually results in overspending. But by having a drawn out budget, you can make for more appropriate estimations of how much you need to save in order to have the retirement you want. If you think you need professional help, Air Force Federal Credit Union is a great place to go and get financial advice. 

Pay Off Debt

If you think that once you hit retirement that all of your debts will be forgiven, you are mistaken. And what’s worse is that debts can be harder to pay, once you don’t have an income from working. Whether it’s student loans, house payments, or car loans, do your best to pay off those debts as quickly as possible. Not only will paying off debts get them out of the way, but they’ll also improve that credit score. And an improved credit score may make it easier when looking to buy that oceanfront property you’ve always been dreaming of. Having no debt is also a huge stress relief, and obviously frees up more of the money you worked hard to save to be spent on the things that you want, instead of paying off interest on loans taken out years ago. 

Invest

Obviously there is no place where you can guarantee that your investments will be rewarding in retirement, but there are options that put the odds in your favor. Whether it’s real estate, stocks, commodities or anything else that you feel comfortable, investing is a great way to make residual income in retirement. But rather than waiting until retirement to get involved in investing, start now so you can familiarize yourself with how it works. This will make the ups and downs of investing less volatile, because you’ll still have income from your job. 

Stay On Track

It’s okay to take a family vacation once a year, buy a new pair of shoes occasionally, or do other little things out of the ordinary. However, for the most part, it is important to remember your goals for retirement and to stay on track for those aspirations. Any slight slip-up can lead to having to backtrack and change even more of your plans. Instead, it’s much easier to just have it all lined up from the beginning, and then stay on that course until you can say sayonara to the workplace.

Ask Bert Griffin: Some Tips for New Stock Investors

English: Phillippine stock market board (Photo credit: Wikipedia)

In the wake of the financial recovery and the resurgence of the stock market, stocks have returned as one of the more popular investment vehicles for independent investors. And for good reason – if you have funds set aside that you’re looking to invest more aggressively, stocks can offer a great opportunity for strong returns. However, with that said, becoming active in the stock market offers far more risks and uncertainties than other investment avenues, especially for those who are new to stocks.

But, knowledge goes a long way, particularly in the investment world. Which is why I thought it would be worthwhile to share my thoughts in this ‘Ask Bert Griffin’ article on what I think needs to be known when someone first considers investing in the stock market. 

Background research and knowledge is critical

Here’s the thing – if you’re new to buying and selling stocks, then you’re probably also new to the workings of the stock market and to the full range of stocks available for you to purchase or trade. Which is fine. However, it does mean that performing background reading on not only the stock market in general, but also the different types of stocks traded in the market is imperative for any sort of success.

Now there are entire books and classes devoted to different stock purchasing and trading methodologies. If you do not have time to take these sort of classes, then try to do some sort of background reading on how the stock market works before making any sort of purchases. Furthermore, once you have an idea of what stocks you would like to buy, be sure to complete detailed research on both the history of the company you’re investing in, as well as its stock. 

Never be surprised at the volatility of these kinds of investments

One of the things you have to be mentally prepared for when becoming active in the stock market is that stocks can be very volatile vehicles for investment. Unlike mutual funds or other forms of investment, when you buy stocks, you’re directly investing in the daily performance of a company. That means there’s no cushion or anything else protecting you from the performance of that company. Thus, if the company you buy stock from begins performing poorly or if their stock becomes ill-favored on the market for some reason, this will be reflected in the stock price – and not several days or a month later, but immediately. Additionally, even if the financial market is doing well, the stock(s) that you choose to invest in may perform poorly (and of course, the opposite is true too).

In short, the value of stocks can fluctuate wildly and when beginning to make your first investments, you need to be prepared for potential volatility and remain confident in the intelligence behind your stock picks.

If interested in more conservative trading, then consider stocks from major corporations like McDonalds or Coca Cola

Now that doesn’t mean that every single stock traded on the market should be deemed high risk. Yes, stocks of start-ups and small companies doing business in unproven industries are certainly more risky investments. However, stocks of such global, big-name companies like McDonalds, Coca Cola, Pepsi, IBM, Intel and Google, to name just a few, can be seen as far more stable investments. 

 However, there’s some caveats to be had here – first, stocks of these kind of established companies are typically more expensive; second, because these big corporations have relatively stable value, you’ll most likely not see any sort of wilds gains when buying their stocks. Yes – in the investment world, ‘no risk, no gain’ is a phrase that proves true more often than not.

Never forget that buying and trading stocks is a high-risk form of investment

I always advise those clients of mine who purchase and trade in the stock market to never forget the risk that comes along with it. As much as I want my clients to succeed financially, there’s a potential danger that comes along with enjoying success in the stock market – namely, a person can become complaisant or they can forgot the risk they are taking. 

 And, in a worse case scenario, all the success they have enjoyed can come crashing down in a matter of hours or days, and a lot of assets can be potentially lost. That’s why I repeatedly remind my clients that knowledge, confidence and a continual awareness of the stock market and one’s activity in it is imperative for success.