Early Retirement: Are you Ready to Make the Move?

Retiring at any age requires a great deal of planning and effort, and this is even more true if you plan to start enjoying your retired years more quickly. In retirement, you no longer receive the benefit of a regular paycheck to live on, but you still have some living expenses to pay for. In addition, when you retire early, you may not even have access to your retirement funds or Social Security payments. Clearly, you need to cover all of your bases if you plan to start living the good life of a retiree before you reach retirement age. By considering these important points, you can more easily to determine if you are ready to make the move. 

Are Your Debts Paid Off?

Before you can retire, you need to review your current budget to ensure that you can pay for all of your living expenses without a paycheck. You can drastically reduce the amount of money you need to live on when you eliminate your debt. It is best to pay off all of your outstanding credit card balances, car loans, and other debts if possible. Many individuals often find it best to pay off their home mortgage before retiring early, even if this means that they must work an extra year or two in order to accomplish this goal. After all, think how much more comfortably you will be able to live without having to pay a large mortgage payment every month.

Do You Have a Source of Income?

In addition to eliminating your debts and reducing your monthly expenses as much as possible, it is important to consider how you will pay for your recurring expenses. After all, even after you pay off your debts, you will still have to pay for food, gas, insurance, utilities, and other recurring expenses. When you retire early, you will often not have access to typical sources of retirement income, such as IRA distributions or Social Security checks. Therefore, you need to think about ways that you can generate passive income, and this may include through real estate investments, dividends, annuities, and other sources of income. 

Are Your Accounts Funded?

The fact is you can prepare a great budget, and you can cover all of your expenses with passive income sources. However, you also need to ensure your accounts are fully funded before you retire. You may not be able to save as much money in retirement as you do in your working years, though you may still be counting on having a fully funded retirement account when you reach retirement age. You may also need access to an emergency savings account to draw from in urgent situations. Your financial health is important to consider before you retire. 

Have You Thoroughly Prepared for the Future?

It can be difficult to account for factors like changing health status, inflation, economic crises that impact your portfolio, and other factors. The last thing you may want is to head back to work a few years after you retire because you run out of money. You should consider how you can better prepare for events that likely will occur at some point. For example, inflation will inevitably be a factor, and there are inflation calculators and sites like Creditguard.org you can use to better plan for the future. You can also supplement your health insurance with long term care coverage. Finally, ensuring your income stream will increase over time, rather than remain stagnant can also be beneficial.

Preparing for retirement can be challenging, but you need to take extra steps if you plan to retire early. Consider each of these points carefully to ensure you make the best decision about your finances. 

Making a Move after Retirement

Now a day’s most of the retired people move to warm or low taxes areas like California and Belize. There are many people who ask the same questions repeatedly to themselves, should we move or not. Sometimes decision to move makes sense; however, it’s important to prepare for your retirement beforehand and move to somewhere else.

Here I have shared some tips to consider while moving to some other states or country.

Reasons:

If someone has decided to move after their retirement, there will be several reasons to move. The reason can be low taxes on houses, lower cost of living, small houses, less maintenance and more retirement benefits. There are many areas with a lot of benefits for retired people like Belize. They offer a wide range of benefits to people who have moved or are living in Belize after their retirement.

Some of the benefits are:

• Free from all receipts and income taxes
• Free from import duties
• Free from import duties on vehicles such as motor vehicles and boats
• Can start their own business within the Belize or outside the country

Who is eligible?

• You must be a citizen of US, UK , Canada or Belize
• People 45 or above are considered as retired
• Your monthly income should be at least $2000

Other reasons may include moving to an area with a better climate or to be closer to family, and to move to a smaller house -- perhaps a one-level home or one where others maintain the house.

There can be other reasons as well for moving such as being closer to friends and family. The climate can also be an important reason to move. Crime rate is another reason, which attracts many retirees due to the safety of their families.

Save Money:

After moving you can save money by avoiding expenses like yard care, snow removal and moving up and down stairs. Your own self can handle small problems or you can get some help from the internet where you can find everything within few minutes without paying a single penny.

Whenever you decide to move, make sure to get all the required information beforehand. If there are lower taxes, you can save that money as well and increase your deposited income.

If you move to small house then you’ll have less expenses and this will help you increase your income. By saving money, you will be able to start your own venture or invest in some business.

Important Note:

Naturally, taxes should be a consideration. Some states tax only a portion of retirement benefits, and others fully exclude retirement income from tax. Certain states include a portion of Social Security benefits in the calculation of taxable income. Therefore, although the state tax rate may be lower, if a larger amount of income is taxed, then the overall tax liability may be greater in one state than another.

Every state or country has their own policies regarding the taxes. Some states had many taxes which mean you can save too much money their but some states offer no taxes for retiree. If you are earning good then you can pay those taxes without any problem but It cause if you are not earning a good amount. Therefore, you have to be careful when moving to any state or country after your retirement.

As previously mentioned, a state with a lower cost of living will be more attractive to retirees, as long as it is not offset by reduced services, such as health care and safety.

Author Bio:

Stella Fin is a professional writer; currently she is writing for Serenity Paradise Retirement in Belize which is offering Land and Lots for sale in Belize near Corozal. Find Stella Fin on Twitter, Facebook and on Google+.

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.