The Dos and Don’ts of Applying for a Farm Loan

 

Securing a farm loan is a pivotal step toward achieving your agricultural dreams. Whether you’re a senior rancher, a small farmer, or a retiree looking to invest in land, understanding the intricacies of farm loans is essential. 

Read on to learn the various dos and don’ts of applying for a farm loan, including what you should and shouldn’t do in the wake of approval.

Do: Understand Farm Loans

Farm loans are a type of financial product designed to support agricultural ventures. You can use a foam loan for various purposes, such as purchasing land, equipment, and livestock or even covering operational expenses for such applications.

Banks, credit unions, and government agencies like the USDA typically offer these loans. Understanding how farm loans work and the factors that impact your farm loan approval is vital for a successful application.

Do: Consider Your Financial Preparedness

Make sure you get your finances in order before applying for a farm loan. This means having a clear understanding of your current financial situation, including your income, expenses, and existing debts.

It’s also vital to have a well-documented financial history, as lenders will scrutinize your financial records to assess your creditworthiness. Being financially prepared can significantly increase your chances of an easy loan approval.

Do: Build Strong Relationships With Lenders

Establishing a good relationship with potential lenders is highly beneficial. Engage with them early on and maintain open communication throughout the process. 

This will help you gain insights into what lenders are looking for and how you can meet their criteria. Trust and rapport go a long way in securing favorable loan terms.

Don’t: High-Risk Investments

When applying for a farm loan, avoid making high-risk investments beforehand. Lenders prefer to see stability and prudent financial management. 

High-risk ventures signal financial instability and may hurt your chances of loan approval. Focus on maintaining a solid financial footing to instill confidence in your lender.

Don’t: Neglect Your Credit Score

Your credit score plays a significant role in farm loan applications. A good credit score enhances your credibility and increases your chances of securing a loan.

Conversely, a poor credit score is a major obstacle. Make sure you know your credit score and take steps to improve it if necessary. This might involve paying down debts or correcting errors on your credit report and filing disputes where applicable.

Don’t: Lie on Your Application

Honesty is paramount when applying for a farm loan. Be transparent about your financial situation, your farming experience, and your plans for the loan. 

Attempting to conceal information or misrepresent facts can lead to complications and potentially result in loan rejection. Transparency fosters trust and makes the application process smoother.

Factors That Impact Your Farm Loan Approval

Several factors influence the approval of your farm loan application. Your credit history and score are critical, as they reflect your financial responsibility. The purpose of the loan and how you plan to use the funds also matter.

Lenders will evaluate the value of your farm and any collateral you can offer. Additionally, your farming experience and the strength of your business plan may play a decisive role.

Final Thoughts

Remember, securing a farm loan is a process that demands careful planning and diligence. Be proactive in addressing any potential issues and seek professional assistance if needed. 

Financial advisors or agricultural consultants can provide invaluable support and guidance. Take these dos and don’ts with you when applying for a farm loan; they may save you money.

What Happens Next? 4 Steps to Help Seniors Learn Retirement Strategies

When it's time to retire, you need to prepare for your new life. Otherwise, you may find yourself bored, broke, unhappy, or unhealthy. To make the most of your retirement, it's important to create a plan. Here are four steps to help seniors learn retirement strategies.

Financial Management

Retirement is defined by not working any longer. Since you won't have the income coming in like you used you, you need to really focus on your finances. You need to consider your current financial situation. What debt do you have? 

What assets do you have? Eliminate debt immediately. You should also manage expenses. You want to be comfortable, but you don't want to spend all of your money to be comfortable, either. You also need to plan for the long run. 

Ideally, you'll be healthy and live until one hundred years old. Just make sure you have the money to support yourself for that long.

Another thing that can make retirement planning more complicated is planning for taxes. You can find all sorts of advice on how to account for taxes in retirement, and everyone has a different opinion. Because of that, it could be a good idea to educate yourself about finances before you start your retirement. Talk to a financial planner or take tax planning classes.

Meet People in Your Neighborhood

You can learn a lot just by talking to the people in your retirement home or community. You may choose to stay in your house, live in a neighborhood or community known for housing a lot of older people, or actually move into a senior center. 

Whatever the living situation, you should make friends. You will be able to learn about the people in the area. You'll also learn about the different things to do.

Embrace Hobbies

This is your time to do the things you have always wanted to do. Now that you have this time, you get to have fun with it. You could travel, golf, knit, work on genealogy, cook, or simply spend time with family. 

Whatever your favorite hobbies are, embrace them. You should also meet people in your neighborhood who like to do the same things.

Prioritize Health

As people age, the body deteriorates. It's inevitable. However, you don't have to speed up the process. Focus on eating well, exercising, and taking care of yourself. You can't control every aspect of your health, but you can stack the odds in your favor.

Retirement can be scary, but it's a fun stage of life. Set yourself up for comfort while also setting yourself up to live a long life. After you have all of the details in place, you can go work on that golf swing.

Family Finances: 4 Ways to Make Money Management Easier

Running a household can be a wonderful thing for people who are organized. It can be especially wonderful for those who know how to handle their finances properly. Lack of financial management savvy can make you feel lost and overwhelmed. It can negatively affect the people in your family, too.

Sign up for a Free Checking Account

If you want to keep updated on all of your finances, getting a checking account can do a lot for you. You don’t have to spend any money on getting a checking account, either. 

That’s because you can always open a free checking account with certain banks and credit unions. Monitoring your checking account closely can stop you from feeling frustrated and disoriented about your financial status.

Create a Family Budget

Family budgeting is essential for money management success. If you don’t have a budget, you can’t be shocked if you live beyond your means. Budgeting can keep your spending habits in check. 



They can keep your family members’ spending patterns in check as well. You need to be aware of the exact amount of money you have to work with each month. This awareness can stop you from making major mistakes of all kinds.

Hire a Financial Advisor

You don’t have to take care of managing your money all by yourself. If you want to simplify your life, then your best bet is to recruit a knowledgeable and seasoned professional. 

The guidance of a credible financial advisor can do a lot for your bank account. If you want to make intelligent spending decisions, then nothing can top soaking up the wisdom of a talented financial advisor, period.

Use a Money Management App

There are apps that can accommodate all sorts of things nowadays. If you want to take control of your family’s money situation, then it can be smart to download a money management app. 

Financial management apps can help you stay on top of your money situation. They can help you make intelligent decisions that involve your spending practices as well. If you want to steer clear of financial dilemmas, then the assistance of a rock-solid app can work well.

Handling your money no longer has to be something that has to take a huge toll on you. It doesn’t matter if you download a widely known money management app. It doesn’t matter if you recruit an adept financial advisor, either. Financial smooth sailing is in your near future.

Should I Get a Voluntary Life Expectancy Set Aside (LESA) Even If I Don’t Need It?

A Life Expectancy Set Aside (LESA) — think escrow account for property taxes and insurance — might be mandatory for some reverse mortgages to be approved, but that’s not the only reason to have one.

Most borrowers looking to secure a reverse mortgage proceed with a LESA to satisfy financial assessment rules required by the Department of Housing and Urban Development (HUD), but you may also include one in your loan voluntarily.

Read on to understand when a LESA is mandatory, and why a voluntary LESA might benefit you even if it’s not mandatory.

When Is a LESA Mandatory?

As the years go by, reverse mortgages continue to evolve. If you’re 62 and older, a reverse mortgage allows you to use your home — fully paid off or not — to gain access to your equity and turn it into cash you can use. 

Although early reverse mortgages had no income or credit requirements, things have changed in recent years, although these requirements are still much easier to meet when compared to conventional financing.

For loans originating after April 27, 2015, the Federal Housing Administration (FHA) has increased requirements for borrowers. These requirements include reverse mortgage counseling and a financial assessment to make sure you can successfully meet the obligations that come with the adoption of a reverse mortgage. 

In addition to age, ownership, and sufficient loan-to-equity ratios, you must also satisfy the following three requirements if you want a reverse mortgage:

1. Your property tax payments must be paid and up to date.
2. You must maintain a homeowner’s insurance policy.
3. You must maintain your home up to FHA standards.

You must also show sufficient income to be able to cover your housing expenses with money left over at month’s end. If you can’t, you need a LESA.

LESAs help protect loan distributors from borrowers who might otherwise be at risk of default. That’s because the LESA is based on your life expectancy from the time of loan initiation, and consists of an escrow account. 

This escrow account sets aside money from your home equity to cover future payments — for property taxes and homeowner’s insurance — in advance by securing this money in an external account, so you can be sure you meet future loan obligations.

Is a LESA Always Required?

You might not need a LESA. A financial assessment conducted at the time of your loan application determines whether you’re at risk of defaulting — and therefore required to include a LESA in your reverse mortgage.

These assessments include a credit and financial ability review. If you’re late on mortgage or installment loans, a LESA may be required to compensate for your bad credit. 

What’s more, if a lender determines that your residual income — that is, what’s left after you’ve paid all your monthly obligations — is not enough to cover the financial requirements of the loan (or is below predetermined thresholds), the lender may require a LESA to ensure those funds are available for future property and insurance payments.

Why Would I Want to Secure a Voluntary LESA?

Even if the rules don’t require it, you can secure a voluntary LESA for your own purposes. There are a few situations where this avenue is worth exploring.

A LESA may mean less cash-in-hand, but it also means greater security if you’re concerned about meeting future loan requirements. A LESA provides a set-it-and-forget-it option for those who don’t want the trouble of remembering to stash money away for future payments. 

By adopting a worry-free way to set money aside, you can rest assured that you won’t miss future tax and insurance payments and unintentionally default on your loan.

Issues with bad credit often prevent borrowers from securing traditional loans, but reverse mortgages can be much more forgiving, even without a LESA. 

The new LESA option can help you sequester funds and automate payments, making monthly bill paying and financial planning a less stressful experience.

Factors to Consider When Opting for a LESA

If you do decide to opt for a voluntary LESA, there are a few considerations that you may want to bear in mind before you take the next step.

Fewer Upfront Funds

The process of setting up a LESA involves appropriating some of the total cash available into a fund that is set aside for specific payments. The amount can vary depending on your age, and your individual insurance and property taxes.

If the LESA is a large amount of the total proceeds, then opting for a voluntary LESA can put a dent in the total cash made available by your reverse mortgage loan. If covering large home repairs or paying off debt is your incentive for taking out a reverse mortgage, allocating funds towards an optional LESA may not be ideal. 

Additionally, if you still have a significant forward mortgage, the amount of principal funds may be so little that a reverse mortgage becomes impractical, or impossible.

Greater Peace of Mind

With a LESA, you can trade some of the financial management of future property and insurance bills for peace of mind, because you can pay for these expenses with your existing equity without having to touch your monthly income streams. 

This reduces the burden of monthly bill payments and provides you with reassurance that your loan is secure and your future home payments are accounted for.

Adding this peace of mind can be a great relief, especially if you’re looking to reduce your monthly bills and take further financial responsibilities off your plate. 

A LESA can make income and expenses less convoluted, and more of your monthly income can stay in-pocket at the end of the month, while the LESA takes care of the bill-paying process.

If you would feel more comfortable knowing that monthly taxes and insurance payments are being handled by your lender — even with sufficient income to cover these payments yourself — a voluntary LESA could be just what you need.


Contributed by: Mehran Aram, a graduate from the University of San Diego School of Business in 1984, founded Aramco Mortgage in 1998 after spending almost five years in the industry. Today, Mehran Aram is President and CEO of The Aramco Group, and has recently been honored with the distinction of CRMP(Certified Reverse Mortgage Professional) a certification held by less than 50 brokers nationwide. Mr. Aram currently heralds the title of “Mortgage Analyst” on San Diego radio stations: AM 600 KOGO, AM 760 KFMB, AM 1170 KCBQ, AM 1210 KPRZ, FM 98.1, and Fox News Monterey’s AM 1460. Garnering endorsements across the state of California, including from radio personalities, Roger Hedgecock, George Chamberlin, Mark Larson, and Ladona Harvey, Mehran Aram along with his nearly 20 years of industry experience has effectively become California’s Mortgage Expert in reverse mortgages, refinances and purchase loans, among many other loan products.

Great Ways to Keep Your Finances Organized

Whether you are dealing with constant harassment from creditors, or you just need a better system for organizing your finances, you have options. Getting on top of your finances is not easy, but it can help you eliminate and prevent debt, spend and save wisely, and feel more fiscally secure.

Before you begin organizing, do a little cleanup. Consider closing any bank accounts or lines of credit that you don’t use. Having too many open accounts makes it difficult to get a clear picture of what you are spending each month.

Then go through the financial paperwork you currently have, including tax documents, outstanding bills, and receipts. Come up with a system of organization—set aside a space for paid bills, W2s, unpaid bills, credit reports, and any other specific documents you frequently receive. Start with some file folders, a file box, or letter sorter, and build from there. This may take you some time, depending on how disorganized your paperwork is, but keep at it! Having a reliable, functional system is well worth the effort.

Once you’ve created the foundation of your system, use one of these three financial services (or a combination of the three) to keep your money well-managed.

One: Budgeting

Budget structures come in all shapes and sizes and you may need to experiment for a few months to find one that fills your needs. Here are some starting places:

• Begin collecting receipts. Put an envelope in your glove box for gas expenses and two envelopes in your wallet: one for necessities like groceries and toiletries, and one for entertainment, fast food, and other non-essentials. Write down your totals on the front of the envelopes for quick reference. After a few months, sit down and figure out your average expenses in each category.
• Record your transactions. Invest in a pocket debit and credit register. Make a habit of writing down every transaction (including the balance in your account afterword). This is particularly helpful if you frequently overdraft your accounts or have a hard time remembering what your balance is.
• Generate a personalized budget. Make a list of your monthly or weekly expenses (or start with an online worksheet) and set a maximum budget for each category. You can make this your starting point, or use the average amounts from your expense envelopes to figure out how much you should allot for each expenditure.

Two: Tracking Software

If you are working with multiple bank accounts and lines of credit, you may benefit from investing in a collective tracking program. Software packages like Quicken have tutorials if you don’t consider yourself particularly tech-savvy.

Web-based programs, like Mint.com, have a dashboard feature which allows you to see the balance of each of your accounts in one place, including:

• each of your checking accounts.
• each of your savings accounts.
• your retirement fund.
• your outstanding loans (such as student loans).

Even better, almost every Mint.com feature is free. This big picture view can help you track your spending and saving, avoid unnecessary debt, and better understand your overall finances. 

Three: Debt Counseling

After budgeting or using tracking software for some time, you come to the realization that you don’t know how to eliminate your outstanding debts. At this point, you may benefit from consulting with a financial management firm like Paddon & Yorke, even if you’re nowhere near bankruptcy. From Toronto to Texas, there are people struggling with debt.

Many people hear “debt counseling” and assume the phrase refers to a last-ditch effort for individuals struggling with the prospect of bankruptcy or foreclosure. Debt counseling is required in bankruptcy proceedings, but it can help you well before your situation gets so dire. Most management firms offer free or low-priced initial consultations in person, over the phone, and online. These sessions usually take less than an hour, during which a debt management professional can help you work out a budget (if you’re still having trouble), develop a strategy for combating your current debt, decide what, if any, other steps you should take.

Don’t wait to begin organizing your finances. So much of your life depends on your money being managed well—from the roof over your head to the transportation between work and home each day. It may take some time to feel like you’re in control, but don’t give up. Living debt and worry-free is well worth the effort.

Learn How Little Ways Can Be Used As Techniques in Saving Money

Saving money does not always have to involve a bank account. You can stow away some dough through little ways you can do without necessarily making an all-out effort. 

Here are seven easy ways to help you save: 

1) Get a piggy bank. This may sound childish, but in fact, it is not. The piggy bank is actually a good device to use for saving. One good way is to have a number of coin banks at hand. Then you label each one for a certain item you want to have. In this way, not only will you get what you want but also keep away from any untimely purchases. 

2) Use cash cards. Yes, these are usually neglected over credit cards, but these work better. Not only do you purchase freely without interest, you also get something in return. This could be in the form of points for every purchase, or better yet discounts on your next purchase. Now who wouldn’t want that? 

3) Clip coupons. No, not the obsessive coupon clipping you see on reality shows. You can find these in some magazines and newspapers which typically indicate discounts on a certain item for a period of time. Cut only the ones you are sure to use.Since other cutouts will likely end up as clutter if not yet used. Be sure to take note of the dates on the coupons too. 

4) Save energy. I know we have all heard this a thousand times, but only a few realize why. By saving energy, we not only help Mother Earth but our pockets as well. For example, using a cup when brushing your teeth or ironing your clothes all at the same time. These are little ways on how you can conserve energy with almost no effort at all. 

5) Cook meals. Yes, cook your own meals. While eating out may save your energy, it will definitely cost you more money. Preparing your own meals might be unpractical, especially when you are continually pressed for time. However it may be the less expensive and healthier as well. Cooking doesn’t have to be tiresome either. Eat a salad or grill meat; these are inexpensive ways to fill your stomach but not empty your pocket too. 

6) Shop wisely. Do you know the expensive brands are placed at eye-level shelves in most groceries? Why not shift your sight lower and spot the same item at a lesser price, and maybe the same quality. Cheaper price doesn’t always mean cheaper quality either. 

7) Make a monthly budget. I know you’ve probably seen this tip a million times and it may even sound cliché but it really works. Rather than make a weekly budget, make a monthly plan. This tends to be more flexible to unexpected events, like sickness or emergencies, and more. 

Always remember that saving money is not difficult. Little ways when done daily and paired with discipline and prudence, will surely give you a more comfortable and happy life. 

Victoria Anderson is a finance writer for Guarantor Loans Direct. She loves covering business topics and finance related stuff. She is fond of web development and wed design. You can find Victoria Anderson on Google +.

5 Financial Situations You Need to Be Prepared for after Retirement

One of the most important responsibilities that people have is planning financially for retirement. While people can spend decades saving and preparing for retirement, there are five financial situations in retirement that need to be factored in to any retirement preparation plan.

Medical Expenses

The first financial situation that can affect retired people are underestimated medical expenses. Retired individuals could spend hundreds of thousands of dollars during their retirement years on medications and unplanned medical procedures. As the cost of health insurance has continued to rise, and people are beginning to live a lot longer, this cost is likely to only increase considerably in the future.

Declining Home Value

A cost that affects a lot of retired individuals today is declining housing values. Many retirees have a long term plan that includes selling their home, downsizing, and living off the equity that they built over time. However, with housing prices declining all over the country, this may not longer be a reasonable plan. Retirees need to avoid relying on this equity for financial support as it could disappear at any time.

Lack of Social Security

Historically, Social Security payments were enough to provide most retirees with enough money to survive financially. Over the next few decades, the amount of retirees will continue to grow, and the amount of workers will not be available to support them all. This will lead to declining benefits.

Death of a Spouse

The fourth financial situation that you need to be prepared for is the death of your spouse. As emotionally straining as losing a spouse can be, it can also be financially challenging. The cost of a funeral can easily exceed $10,000 and those that lose their spouse could lose social security income as well as pension income, depending on the pension plan. Because of this, all people need to factor this in when preparing for retirement. In the case of a wrongful death due to medical malpractice or another issue, filing a lawsuit may be a good option. When hiring a wrongful death attorney in Sacramento residents will be guided through the legal process.

Support for Children

One of the most frequently underestimated expenses in retirement is the cost of still having to financially support children and grandchildren. Due to tougher job markets and rising costs of education, many grown children have to continue to live at home and accept financial support from their parents, even after the parents have moved on into retirement.

Creating the Perfect Personal Finance Strategy for Middle-Aged and Senior Citizens

Finance (Photo credit: Tax Credits)

With the recent financial meltdown debilitating the job sector and leaving an entire generation’s financial security compromised, it’s hard to imagine the troubles faced by middle-aged and senior citizens when the younger generation is in so much hot water. Transitioning to a life with no full-time job and, more importantly, no fixed income can be overwhelming if you’re not prepared for it. 

Whether your retirement plans involve moving back to your old house in Exton PA or settling down comfortably in Napa Valley, you must have excellent dominion over your finances to help you realize these dreams. If you’re pushing 50 or 60 years of age, then here are five key questions to ask yourself in order to choose the most effective strategy for keeping your financial boat sailing smoothly under all conditions.

What Assurance Does Your Health Insurance Give You?

Blindly rejoicing under the blanket of assumed safety of Medicare may not be the smartest idea. It is imperative to be well-versed with all the fine print mentioned in the insurance policy you sign up for and back it up with another policy that covers the loopholes of the former one. It will save you the rude shock of getting a colossal medical bill you’re not prepared to handle.

Are Your Financial Records In Order?

Keeping vigilant records of your expenses and savings is the first step to developing a successful financial plan that will help you enjoy a comfortable retirement. They make it easier to identify any possible deductions such as employment costs, mortgage payments, or commuting expenses that will lower your taxable income. Consult a reputable financial planner by showing them your financial records in order to get a better assessment of your financial status.

What Are Your Tax Liabilities?

Sometimes getting a raise may not be the best thing to happen if you don’t possess the financial savvy to manage it. In fact, graduating to a higher tax bracket may do your bankroll more harm than good. That’s why it’s quintessential to keep track of any revisions in IRS and Social Security policies and adjust your financial planning strategy accordingly.

Is Social Security Really The Ultimate Safety Net?

Contrary to popular perception, Social Security isn’t always a financial guardian angel for your retirement years. If you look at the rules and laws governing Social Security policy, you’ll find out that they’re uncomfortably dynamic in nature is because the age of retirement specified in the Social Security policy keeps changing. Thus, you should maximize your income while reducing your taxable Social Security income as much as possible.

How Bulletproof Is Your Investment Portfolio?

Most financial planners agree that middle-aged citizens should focus on maintaining a growth-oriented investment portfolio with a healthy mix of blue-chip stocks and bonds. As a citizen crossing the age of 50, it’s recommended that you stick to making only stable investments with a low risk factor to ensure guaranteed returns.

Retirement: Four Tips for Getting Your Finances in Order

Getting your finances in order before you retire is a great idea for anyone who is either planning their retirement, or who has suddenly found themselves in a position where they are being forced to retire. Financing for your later years doesn't have to be scary. If you are looking for a way to get your money in order before you stop working, try these four tips.

Rid Yourself of Debt

The best way to make sure that you don't outlive your money, is to cut your expenses down as much as possible. Make plans to use your retirement funds to pay off any existing debts that you have. If you don't have enough in savings to cover your debts and your income will not give enough coverage, you might want to consider filing for bankruptcy. According to a chapter 7 attorney in St Louis, getting rid of any debt is the best thing you can do to avoid bankruptcy.

Know the Facts

Figure out what your income will be. There are many people who do not know how much they can expect from their pension, their retirement fund, or Social Security. Fortunately, there are a lot of ways to find this information. Several months before you retire, gather together any documentation you have about your retirement accounts, and contact each fund manager. Also start the application process for Social Security. This usually won't take long and can help you on your way to budgeting and planning for the future.

Future Planning

Decide what you want to do in your retirement. Believe it or not, very few people actually have a plan of how they will spend their retirement. Think about your day to day life, and how you want to spend it, not just a once-a-year trip you'll take. Look into volunteer opportunities, hobbies, and maybe even part-time work. This is the chance to try something new, or something you always wished you could do. Once you know what everyday life will entail, you can plan a more precise budget.

Make Cuts Where Possible

After figuring out what your income and expenses will be, it's time to make a spending plan. If you have more income than expenses each month, come up with a plan to save the money and/or carefully plan major purchases. Be sure to include every payment you might be making, and even unforeseen events like hospital visits or house repairs. If your expenses are greater than your income, however, it's probably time to make some hard decisions about where you can make cuts, or start looking for part-time work. Perhaps it is feasible for you to sell some assets or old valuables to make sure you have enough money.


With these simple tips, panning for financing your retirement won't be a daunting task. The key is organizing and making a plan that will be easy for you to follow. Retirement is a chance to enjoy the fruits of your labor, so start by preparing now to have the time of your life.

Can Spending Now Help Your Family in the Future?

Finance (Photo credit: Tax Credits)

Future financial security remains the goal of an individual during his or her working years. Many people reap the fruits of their work once they are out of employment due to retirement. Financial security must be worked upon effortlessly, but this requires a lot of dedication. To ensure that the future is even brighter, one has to make many sacrifices financially today to achieve better returns in the future. Various investments can be undertaken to help secure your future financial position. Some of them include pension schemes, mortgages, and identifying a business venture. 

Insurance and Pension Schemes

To guarantee a better future, one needs to invest in various forms of insurance. These insurances require a lot of money today, but the benefits that can be reaped from them are unimaginable. A life insurance cover is vital in ensuring that the family is well taken care of in case of occurrence of any uncertainties that may cut short a steady supply of income of the family's provider.

To get such insurance, one should be willing to spend an enormous amount of money now. Medical insurance covers that are paid today provide a common source of financial security in the future. This is because money spent today on health cover is able to cover the family even after employment. Pension schemes also enable you to secure your future financially through monthly contributions to an investment pool. These monthly contributions depend on the kind of pension plan that one is servicing. Such plans are vital in ensuring availability of sufficient money in the future.

Taking a Mortgage

Another form of spending that one can engage in now for the future benefit is taking a mortgage to own a property or home. Mortgages, especially fixed interest rates come at significantly low rates in a turbulent market. An individual can take advantage of these mortgages to take care of the future finances. One can take a mortgage to buy a home or property that becomes a significant investment for the future. Generally, the value of land and house appreciates every year. Therefore, investing in such assets is a powerful way of obtaining financial security.

This form of security can be obtained in two ways: First, one may decide to sell the property in the future at rates much higher than the initial cost and make enough money enabling them move to probably to a farm house upon retirement. The surplus cash made provides a means to financial security. Secondly, owning a home or property exempts one from many expenses such as rent. Upon retirement, one is able to live comfortably in their home and enjoy their pension without any financial strains. 

Investing in a Business

Financial future can be secured by investing in a business now so that when the future comes, one is able to reap the benefits of the business and enjoy it. However, starting a business is not such an easy task. Enough capital needs to be used to start a reasonable business venture. The business enterprise can then be taken care of to bring immense benefits in the future. Apart from the capital, a lot of money has to be used in carrying out market surveys, and feasibility studies to get a viable business idea and eventually implement it.

The investment made today could be obtained via a loan from a bank or via one's savings for the period that have been working.

In conclusion, one can easily secure his or her future finances by choosing to make investments now. Using the time value of money, one can determine the future returns by estimating the future value of the investments today. These investments require a lot of dedication and sometimes cash, but the eventual benefits outweigh initial finance challenges.

Author Bio Joshua Turner is a writer who creates informative articles relating to the field of business. In this article he offers a few benefits of investing later in life and aims to encourage further study with an aging masters. 

Smart Financial Tips for Retirees

saving and spending (Photo credit: 401(K) 2013)

Just because you’ve reached an important milestone doesn’t mean savings and investing are behind you. You might be just as busy as you were when you were working full-time, and nowadays the transition into retirement isn’t as black and white as it used to be. If you’re worried about how to stretch your pension, social security, retirement accounts or savings, read on for financial tips just for retirees. 

If you haven’t quite reached the marker for withdrawing social security or a certain account, hold on. The penalties are almost never worth the instant “reward.” Whether you were a frugal spender your entire life or not, now is the time to really put wise spending into action. From travel to groceries, there are a number of ways to save money and put off those payouts until you can maximize them. 

Saving on Health and Well-Being

As a retiree, you likely qualify for a number of low-cost or even free classes and services. Start by Googling free health classes in your area. A costly gym membership for you and your spouse is an easy item to be nixed if you find things like free yoga or Pilates that can replace it. Get creative and you might find a new passion, such as aqua classes in adjustable pools at your local community center.

When it comes to grocery shopping, consider the actual cost of convenience. You probably already know which nearby stores have the lowest prices, especially when combined with coupons and shopping seasonally, but it might not be quite as convenient as the store that’s a little closer. Or maybe you’re just a creature of habit or prefer the atmosphere of a costlier store; consider if the cost is really worth it. 

Travel Tips

It’s no secret that traveling standby can save you hundreds (or even thousands) of dollars. The downside is that you have to have flexibility, which is something many people in the workforce don’t have. However, flexibility is now yours and you can save a bundle on travel. Combine standby with traveling during the off season to maximize your cost-saving trip.

Price comparison is important no matter what you’re shopping for, including travel. If you really want to save, choose destinations based on proximity to you. If you live in New York, a trip to Puerto Rico will be much more affordable, not to mention an easier and with a shorter flight time, than a trip to Hawaii. Tropical locations also have off-seasons where hotels and activities are often half off, so plan accordingly. 

Are Your Accounts Working for You?

If you’re paying for a checking account, stop. There are plenty of checking accounts available with no catches for completely free accounts, including options at local credit unions. If you feel locked into a savings account that requires a high minimum for a low APR, it’s time to move on. What happens if you need that money? You’ll be penalized with monthly fees when the balance drops below a set amount.

Right now, there are very few options from CDs to savings accounts that offer anything beyond a paltry return rate. Don’t opt to lock your money away if there’s not a decent return on your investment. Instead, look for avenues to save your money with no strings attached. As a retiree, accessibility and no penalties should be at the forefront of any new accounts.