The rules around Social Security are complicated, but avoiding these common myths and understanding your options fully before claiming is well worth your time. Keep reading to get the real deal on Myths of Social Security and make the choice that maximizes your benefits.
Hey, you thinking View full post…
The FIRE movement has become increasingly popular over the past few years, with more and more people wanting to achieve financial independence and retire early.
But what exactly is the FIRE movement? What are the benefits of joining this financial strategy? How can you achieve the goals set out by the FIRE method? In this blog post, we’ll answer all these burning questions about this financial strategy and explain how it can View full post…
Have you ever dreamed of ditching the 9-to-5 grind and living life on your own terms? Retiring early is an appealing fantasy for many. The idea of escaping the daily work routine decades ahead of schedule is enticing. But is retiring early realistic or just a pipe dream for most people? Let’s move on to see how to retire early and what it takes. View full post…
Spousal benefits offer a way for married individuals to receive a portion of their spouse’s Social Security retirement allowance, including survivor’s benefits. These benefits can be especially helpful for spouses who had lower earnings or did not work outside the home. View full post…
Due to an economy turned upside down by Covid, many individuals have started their own small businesses and became a part of a growing gig economy. Some of these same individuals made a definite choice, and some others, who lost their jobs, were forced into it.
Whatever the case, these workers are confronted by an important issue View full post…
For many individuals, retirement means switching to a life style that is more relaxed, and having more time to do all of the things you couldn’t do before. Some like to travel, take up hobbies, and take part in recreational activities. For many others though, it’s a time of worry and apprehension because they didn’t save up for retirement the way they should have.
The pandemic created even more problems View full post…
If there’s one sure thing in life, it’s that times and conditions will change. People that retired many years ago are now facing some of the results of that change. We now have higher taxes, low interest rates, and people, on average, are living longer. It may be time for View full post…
For many individuals planning to retire, benefits paid by social security play a big part in their retirement plan. According to the Social Security Administration, in 2020, about 65 million Americans will receive over $1 trillion in benefits.
Many individuals, though, don’t have a good understanding as to when the best time for them to begin taking benefits. Having a good understanding of how the program works is still a mystery to a lot of people, and the main reason Social Security myths persist.
We’ve reviewed this topic in detail and have come up with 8 misconceptions that seem to surround View full post…
If you’ve been thinking about your retirement, you might have this question on your mind – ‘How do I save money for retirement?’ You’ll often come across flashy advertisements and click-bait articles on the Internet that promise to teach you how you can save a million dollars in 6 steps.
But many of these self-proclaimed financial gurus are simply out for their own profit. Very often, they’re selling products, books, or subscription services that you don’t really need, claiming that they contain valuable insights when that’s not really the case. As a result, it’s very easy to become cynical and distrustful about online financial planning resources in general.
My advice is simple – do not trust any person who claims they’ll teach you exactly what you need to do to retire wealthy. That’s because financial stability and retirement are goals that can be achieved in any number of ways. It all comes down to 3 simple commonsense methods – View full post…
It’s safe to assume that most people will agree that having a good amount of savings before you retire is something that’s really important. Once you stop working, even if you do get a pension, having a nice cushion of money to pay your bills, move, go on vacation, or spoil your grand kids with will be really nice!
In fact, a study conducted in December of 2019, showed that almost half of all Americans made the resolution to save more money in 2020. It ranked just as much in importance as getting a lot more exercise, eating healthier and losing weight.
Saving for retirement can be tough, especially if you’re living paycheck-to-paycheck or don’t have a 401(k). Regardless of your situation, there are a few great tips for saving for retirement that you and your family can start implementing today.
Prepping for your retirement plan
Regardless of your retirement goals, or if you have yet to make any, good rule of thumb when it comes to saving for retirement is to save at least 15% of your income.
In order for you to reach your goals, you have to know what they are first. You need to begin by sitting down and mapping out exactly what your retirement plan looks like. Will you move to the beach? Finally buy that car of your dreams? Sell your house and move into a condo?
After you decide on your retirement goal, you’ll have to figure out the logistics for it. How long will it take, and how much money will you need? Are there initial costs or will they be steadily distributed over time?
You can’t really save money at all if you are still in debt! Debt is a huge reason why people of all generations are unable to save for retirement. The most important debts to get out of the way are credit card debts. Things like car payments and mortgages that have lower interest rates and are spread out with a specific plan of payment aren’t as crucial to pay off.
This isn’t to say that you can’t have fun or go on vacation every now and again, but a recent study showed that the average American spends around $1,500 every month on non-essential items.
Even if you can cut your spending by $150 a month, that’s almost $2,000 a year that you can save toward your retirement plan! See if you can cut costs by cancelling out things that you don’t use or need like recurring subscriptions or cable.
Invest your income
If you’ve got a 401(k) though your employer and they match your contributions, make sure you’ve invested at least up to what they will match.
If you have a traditional 401(k), talk to a financial consultant about opening up a Roth IRA too. A Roth IRA is another version of a savings account for retirement. With this type of account, money that you put into it has already been taxed. After a period of 5 years, any money that you withdraw is all tax free, including the interest earned.
Wrapping up…
With the initial savings steps for retirement and taking advantage of a 401(k) and Roth IRA, you should be on the right path to saving for retirement! It will save you and your family a lot of stress in the long run and allow you to be able to fully enjoy the later years of your life. You’ve worked really hard for a long time and deserve to enjoy the fruits of that labor!
If you need any help saving, paying off debts, or setting up a 401(k) or Roth IRA, contact one of our experts today and we’ll get you on the right path.
