Smart Tips When Preparing for Retirement

retirement (Photo credit: 401(K) 2013)

Between 45 and 54, the idea of retirement often becomes more important to many individuals. But in order to make sure that this goal is attainable, there are several smart tips you will want to follow.

Catching Up After Age 50

For those just beginning to seriously save towards retirement, Investopedia.com says, “Don’t be disheartened.” “Better late than never,” is definitely applicable in this case. And there are actually special provisions for individuals people aged 50 years and up to “catch-up” on their retirement goals.

For people age 50 and older, the limit of contributions to an IRA, 401(k), 403(b) or 457 plan is raised to an excess of the usual threshold. This allows salary deferral contributions to be higher which builds up a nest egg for the future more quickly.

Rebalancing a Portfolio

As you approach retirement, your asset allocation should be reassessed every once and awhile to ensure that your investments become less risky as you grow older. This is because as you move toward the end of your working career, you will have less and less time to recover from investment losses. So rebalancing your investments will help you find places to allocate funds that are more dependable as you near a time in which you will rely on them more.

Supporting Older Children

Another consideration to take into account is any children or other family who are still dependent on you. Although it sounds harsh, you may need to consider your own best interests if you are nearing retirement age and still supporting adult children who live at home. Think about beginning to charge them rent or a portion of their living costs. In most cases, you will actually be doing them a favor by encouraging their responsibility and maturity.

Preparing for the Unexpected

Another life factor which may become more real as you age is the possibility of long-term illness and more frequent medical costs. To protect yourself and your nest egg, it might be wise to look into long-term care (LTC) insurance. These sorts of plans will help cover medical expenses so that your finances remain stored for living and other costs.

Getting Free to Plan and Save

For many individuals, all of these plans sound like great ideas but are really quite impossible because of current debt and other difficult financial situations. In order to devote more attention to savings, you will first want to work your way to financial freedom.

Begin by focusing on paying off any demanding short term loans. TitleBucks.com and similar lending companies can be helpful in a serious bind. But to use them properly requires paying them off immediately and gradually weaning yourself off reliance on quick cash. Asses your lifestyle and find ways to make cuts so that you can live within your means. This is a great beginning step towards savings and investment later.

With these keys to achieving financial stability and preparing for the future, you can look forward to a successful retirement.

3 Tips to Simplifying Your Business's Payroll

Managing a business is never simple, especially when you begin to employ other individuals who work for you. When you want to run your business properly, having a clear grasp on your financial situation is essential at all times. Knowing how to simplify your company's payroll can help rid the stress of worrying about taxes and fees you may owe in the future. The more actively involved you become with your company's financial status, the easier it is to achieve success in any industry.

Work With a Professional

Working together with a professional CPA (Certified Public Accountant) or a business accountant is ideal whether you have just recently launched a startup company or if you want to manage a larger corporation responsibly. Professional accountants are capable of gaining insight into your financial picture quickly, giving you different options and routes to take to ensure you continue to profit and maintain stability. Utilizing the services of an online payroll provider provides many advantages, such as:

Use Software Regularly

Installing your own software to track payroll expenses as well as other financial investments or expenses can help you to stay in control of your business in all areas, including finances. There are many different programs that allow you to easily keep track of your investments as well as taxes that are due based on your employees' earnings or salaries. Using software regularly on a daily basis not only allows you to monitor sales and profit, but it also gives you more knowledge of the financial overview of all areas of your business. Just be sure to invest in software that provides quick input of required information (such as employee address, salary, deductions, marital status, etc.) and automatically totals taxes and withholding. 

Research the Affordable Care Act

You can also research the affordable care act to compare all of the options you have when it comes to your employees and their healthcare. By choosing a new healthcare plan to help cover your employees, you may need to re-configure the amount of payroll taxes you owe quarterly or annually, depending on the size of your business and the number of employees you have hired. To learn more about the affordable care act and how it can influence you personally and your business, click here.

Learning how to simplify your business's payroll can ultimately help to relieve you from stress and worry while ensuring all taxes and fees are always paid on time. The more engaged and involved you are with handling the finances of your company, the easier it is to build a successful business regardless of whether you are trying to launch an online eCommerce store or if you have a local business you plan to open.

Following these tips will result in significantly less stress as you prepare to tackle your businesses’ payroll.

Author Bio
Karleia is a freelance blogger. Away from the office and doing business she enjoys spending time with her two young daughters and husband.

5 Strategies for Getting the Cash that You Need When You Are in a Fix

You never know when you are going to need money in a hurry. When the car needs to be repaired or a medical emergency comes up, you can't tell the mechanic or the doctor that you can't pay due to a lack of funds. What can you do to get money that you need when you are in a pinch and have a severely limited amount of time?

1) Raid Your Retirement Fund

If you are facing a financial emergency, you can borrow up to $50,000 from your retirement fund. You will need to put the money back into your account over a period of up to 60 months, but the penalties for not doing this are not extremely heavy, at least when compared to normal loans and forms of financing. The advantages to such a loan are the fact that you can get the loan with few or no questions asked and you will repay yourself with interest, instead of a bank.

2) Sell Gold Or Silver

That silver ring or gold watch that has been sitting on your dresser for the last few years can be worth hundreds or thousands of dollars. While it is true that you are going to lose these items, you will not need to worry about paying back debts and losing money to interest.

3) Apply For A Payday Loan

While not an ideal solution, you can have the funds in your bank account within hours. If you have bad credit, it may be your only option when you need money in a pinch. Those who don't like payday loans can look for personal loans online or through their bank. You can expect a heavy fee to be attached to a payday loan, and it will quickly build up money if you don't pay off the loan on time, but it is one of the easiest ways to get a large amount of money almost immediately.

4) Access The Equity In Your Home

Homeowners can take out a home equity loan to get cash quickly at a low interest rate. With mortgage rates at historic lows, you will pay significantly less in interest charges than you would if you got a personal loan or used a credit card. The only risk is that you will be placing your home up as collateral for the loan, but this won't be a problem if you make all of the required payments on the loan.

5) Liquidate A Portion Of Your Stock Portfolio

Stocks, bonds, and other securities can be sold instantly to put cash in your pocket. Savings bonds can be cashed in instantly as well if you need money in a hurry. A silver lining to having to sell stocks or bonds is that you could take a capital loss that will help you save money when it comes time to file your taxes.

There are a lot of ways to get money when you are in a financial jam. While not all of these options are ideal, you will be able to get the money that you need, when you need it. When the bills need to be paid, it's important to know where you can turn to get funds in a hurry.

5 Outstanding Projects To Refill Your Nest After The Kids Fly The Coup

When your kids leave for college, it can feel like a lonely time where the nest is empty. But instead of getting lonely or thinking of the times when they were home, use this new free time to undertake some projects that will make your home a great place for you to enjoy. After all, your kids are likely having a fantastic time away at college, so it’s important that you do the same while they’re gone. Here are five outstanding projects to refill your nest after the kids fly the coup.

Man Cave

Every man needs a man cave. After all, where else can you go to watch sports, have a drink and get as loud as you want. A man cave is also a great home project that you can do on your own. Go get a new TV, put in some reclining chairs, and even put up a new bar for you to enjoy. The only trouble you’ll have with a man cave, is keeping your kids out of it when they come home for school vacation.

Library

Maybe your not into sports or the man cave idea, so instead consider making a peaceful library or home office. All you need is a wall full of books and a comfortable chair to be able to relax in and get lost in a great novel. Home libraries are easy to put in your home, and will give you plenty of things to do once your kids leave for school.

Hobby Room

If you want to be more productive with your time and keep your fingers busy, turn your child’s old room into a new sewing or scrapbooking room. Either of these options will give you something to do with your free time, and you can get quite handy with homemade projects. If you are looking for somewhere to put all of your kids stuff after they leave, consider storage units in Vegas so they can come and get their items once they move into a home of their own.

New Kitchen or Bathroom

If you want to keep your kids room as it was before they moved out, then consider changing up other rooms in your home. A new kitchen or bathroom remodel can add value and flair to your home. You can do something as simple as new cabinets or faucets, or completely rip everything out and start from the ground up. Either way, these new additions will make your home seem like it’s brand new.

Finished Garage

Finishing your garage is another project that will take up your time. And the best part about a finished garage is that it will entice you to get that dream car you’ve always been waiting for. A new floor and insulated walls are great addition to any garage.

You will likely miss your child a lot when they move away. But before you get too upset, consider all the great projects that you can do in your home to keep yourself busy and enjoy your home more.

Money Forecast: Six Budget Steps That Will Be Useful Year-Round

In these tough economic times, it is more important than ever to make sure that you have budgeting skills. The ability to keep a good budget is the first step on the road to financial health. Here are six tips you can use year-round to keep your budget on track.

Sit Down and Do the Math

The only way to keep a budget is to create a budget. To do this, you need to add up all of your income. Next, add up all of your monthly expenses. Subtract the expenses from your income. The remainder is the money that you can use for optional things like entertainment. Although this step seems easy, if you are not in the habit of doing this it is easy to overspend in small areas that don't seem to make an impact. However, if we are looking at the overall year, small purchases can begin to grow overtime.
Know Your Expenses

Many people do not really know their expenses, which throws the math off on their budgets. If this sounds like you, then you should carry around something to add up your money whenever you spend it. If you do this for one month, then you will know exactly how much you spent that month. Knowing this will make it much easier to set your budget.

Use Computer Budgeting Software

Don’t make it hard on yourself to keep a budget. If you use a budgeting software program like Quicken, it will save you’re a lot of headaches and make it a breeze to keep track of your budget. This will help you get a visual of where your money is going and how you can cut back.

Stop Eating Out

One of the biggest spending leaks people have in their budgets is eating out way too much. If you are guilty of this, try making your lunch at home. Skipping paying for lunch from a restaurant everyday will save you a ton of money.

Protect What You Have

Unexpected expenses can ruin your carefully planned budget. Make sure to avoid this disaster by protecting yourself with insurance. This will prevent you from destroying your budget when the unexpected occurs. Also, be sure to check out home security system to protect your valuables at home. The security will then provide a discount from the insurance companies because you are more likely to be covered during a natural occurrence or a theft, making sure you are covered from every angle.

Treat Yourself

Part of that budget you drew up should include savings, and a portion of that savings should go to buy you something big you want. It could be a car, trip or any other big thing you crave. You need this type of positive reinforcement to keep you on track with your budgeting.

If you follow these six tips, you will find it easy to keep your budget all year. Take it step-by-step and always look for ways to improve your budgeting. The rewards of fiscal responsibility are wonderful.

Best Tips For Becoming Financially Ready For Retirement

Entering retirement phase of life used to be a matter of age, and most people have a defined retirement benefit plan offered through their employer, once you reach a specific age, you can retire and start receiving those benefits. Even if you plan to rely on social security as your main source of income for your retirement expenses, most people retiring need to have a plan in place for their finances in case anything happens.

Today, the issue of retiring is much less dependent on the person’s age, than it is based on how much money they have saved up for their retirement. Because of the major decline in employer-sponsored retirement plans and the rise in 401(k)s and IRAs, planning to successfully retire becomes a priority. Below are some great tips to make sure you are financially ready to retire.

Planning Where You Will Live

Several retirees in past generations would move from their family homes in the Northwest or Midwest to live in the sunnier states of California, Arizona, and Florida to escape the cold. Today, many find they can make their retirement savings last a lot longer by moving to other states when they retire. Find a place that lets you do what you love, while still offering good retirement plans and standard of living.

Retirement Plan

It’s important you have an organized plan for how you will put money away for your retirement, and to implement that plan as soon as possible. Estimates are that more than one-quarter of the people working in the United States have under $1,000 in their savings account – including funds for retirement. It will probably be a long time before these people can financially afford to retire. Build a retirement plan early in life, and implement it as soon as possible.

Financial Obligations

Unfortunately, not everyone goes into their retirement years with no debt. Instead, many still have mortgages on their residence, co-signed obligations for the college education of their children, and some are still paying off their own student loans. This can add up to a lot of consumer debt in addition to credit cards. Before you decide if you are financially ready to retire, have a solid understanding of your financial obligations and debts so you don’t eat into your retirement funds.

Your Health

The biggest expense for most people retiring is ongoing health care. Even with the most recent health care reforms, the costs for health and medical services continues to increase, and it will probably increase even more. Be completely honest with yourself and identify the potential health care expenses you will face during retirement so you can plan accordingly. Remember, the time might come when you have to consider assisted living homes, or retirement communities to live in with limited medical help available.

By planning ahead, you can feel sure that when you are ready to retire, you will have the finances to make it happen. Use these tips and some smart financial advice to make your retirement dreams a reality.