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Your Guide To Retirement Planning
In life, nothing is permanent in this world. Everything that comes will definitely go. That is why it is best to put our best foot forward and save more for the future. The best thing that you have to start with is to have a retirement plan.
Some wait to long before they decide to plan for their future. This is not a good idea because we can never tell what lies ahead. So, here’s how and when to start retirement planning:
1. The retirement year.
First, decide on what year you would like to retire. It is always best to start something with a goal in hand. This will keep you focused and determined to push it through.
2. Do your homework.
The best way to help you start making your retirement planning is to consult your employer-sponsored 401(k) or IRA, or to any of your retirement schemes and investigate on the objective date of your mutual funds and see if it matches your target date of retirement. If it does, then start funding your nest egg immediately.
3. Backups.
There are many instances where your plan can backfire. So, it is best to have backups.
So, when making a retirement plan, better include a backup that will serve as a fallback in case your nest eggs fails or if something else goes wrong. It is best that you do not depend entirely on your funds because sometimes there are circumstances that are beyond our control.
3. Opt for annuities.
When doing a retirement planning, you should take note also of the different retirement planning strategies that will surely make your plan work. One good example of a retirement planning strategy is the annuities.
Basically, annuities are adaptable indemnity bonds that are exclusively patterned to bestow additional wages at the same time assist you accomplish long-term saving goals.
These annuities are the long-term items recommended by most insurance companies, though, there are brokers and other financial establishments that provide this kind of service. They will help you set-up a specific goal and aim for it.
There are two types of annuity: the immediate and the tax-deferred annuity.
In the immediate annuity, you start your retirement planning by giving a hefty amount of money to the insurance company or any financial institution for that matter. After which, your payment scheme will start at once. This type of annuity is usually applicable to those who are already 60 years old and above.
On the other hand, the tax-deferred annuities you may choose whether you will pay the retirement amount instantly or make a monthly disbursement until the time you reach your target date.
This is usually appropriate to those who start their retirement planning early, generally those who are 20 years old at the least.
4. Consider the Modified Endowment Contracts.
Annuities had been heading the limelight for so many years now. Most people would go for annuities, as this is the most popular retirement planning strategy. However, like most plans, it is still vulnerable to problems and crisis. That is why, it is best to make an alternative option when making a retirement planning.
The next best retirement planning strategy is the Modified Endowment Contract or the MEC. This is, basically, one kind of insurance policy.
In reality, MEC is similar to annuity, especially the tax-deferred annuity, in terms of the preliminary premium rates. Though, they differ in terms of tax codes.
In annuity, the tax code appears to be very unfavourable especially when the benefactor dies while the annuity accumulation stage is in full force. This, in turn, makes the deferred wage taxes on development suddenly becomes payable.
In contrast, the MEC resolves this problem by providing the benefactor or the beneficiaries with an insurance rider included in the agreement. The insurance rider is made to hand over the full amount to your recipients absolutely free from any taxes.
Moreover, MECs can give you the suppleness of choosing between the variable and fixed account preferences. This, in turn, will make your retirement planning relatively easier.
Nevertheless, whatever retirement planning strategy you choose, the bottom line is that it is really important to save for your retirement as soon as possible.
Most often than not, people linger on a little longer before they start making their retirement planning. This should not be the case because you can never tell what will happen next.
As they say, life is suspense; you will never know what it can offer you until the end. So, the best time to do retirement planning is now.
Yes! You Really Can Save Money
Sometimes, saving money may seem impossible. You buy groceries on Monday, pay bills on Tuesday, and by Wednesday your paycheck has disappeared. However, if you establish a savings plan, youll find money in places youve never thought to look!
If youre like most American families, you wait for extra cash to save. However, by creating a plan, most people find they can save regularlyand reach their long-term financial goals.
In the beginning, the amount you save is less important than the fact that youre starting to save regularly. Its O.K. to start out small, but make the amount you decide to save each week or month a commitmentits very important to pay yourself first. Begin with an amount that you are sure you can set aside so that you build a sense of accomplishment rather than frustration. Giovanna Masci, money management expert at ACCION suggests the following to establish a savings plan.
Distinguish between wants and needs: Real needs are items that are necessary to sustain you and your family such as shelter, food, clothing, and transportation. All the items that enhance or possibly improve your family life, like new electronics and meals out, are wants that could be eliminated from your budget.
Set realistic and achievable savings goals. Experts suggest you place 10 percent of your income into savings. That’s a good goal, but don’t give up if you can’t save that much. Establish a savings habit and save consistentlyits better than putting aside a big sum just once.
Set up a separate savings account using automatic deposit. If you mingle your savings account with your checking account, you’ll dip into your savings and may never pay it back. If possible, have your employer deduct a set amount from your paycheck each pay period and deposit it directly into your savings accountafter a few weeks, you wont even miss the money!
Put your savings goals in writing. Writing down your savings goals can have a motivating impact on your savings habits. It makes your goals real and concrete. Write down your short, medium, and long-term goals along with your projected timeframe to achieve them. Make sure the goals are attainable and realistic and review them regularly.
For more helpful tips about managing your money and to improve your financial literacy, visit Your Money and You (http://yourmoney.accion.org).
Why you should Leave your Bank and Join a Credit
Why you should Leave your Bank and Join a Credit Union
So maybe you’ve had a savings account for a while or maybe you’ve taken out a mortgage for a house. Is your bank actually helping you, or it is doing more harm than good? If you’ve never looked into the benefits of a credit union, maybe now is a good time to switch. There are actually many benefits, many of which you’ve probably never even heard about.
Simply put, a bank is an establishment that is there to make money for itself. This isn’t necessarily a bad thing; it’s what every single business is in business for: to make its own money. So what’s so great about a credit union? What makes it different? A credit union is a non-profit organization that is there specifically for its members. Basically, it’s a group of people dedicated to their money. So instead of stockholders making decisions for the bank they have partial ownership of, you can literally own a portion of your credit union yourself and be able to vote and participate on different aspects of the company. It is completely Democratic and members even elect a volunteer Board of Directors. Sounds good, right?
Credit unions also offer higher rates of interest payout in savings accounts as well as having typically lower interest rates on loans and personal lines of credit. They also offer many free services such as checking accounts, debit and credit cards, and personalized service.
There are some people skeptical about credit unions because they believe that their money isn’t safe. This rumor is no longer true and all credit unions now legally have to be federally insured, just like a bank. So there really shouldn’t be any question in which establishment you should choose.
Now that you’re convinced, go a step further. What other corporations do you spend your money at? The grocery store, clothing venues at the local mall. Once you start saving your money wisely, try spending your money wisely, too. Everything you do can become more frugal and help you in life. Learn to shop around. Do your research on which credit unions offer the lowest interest rates and the highest interest payouts.
Why Should You Retire in Thailand?
Retiring in Thailand has been my dream for many, many years. My dream will come true in about 2 years and I am making some serious plans now. I can be anal when planning and there are numerous considerations when planning for the final chapter in your life. I intend to plan everything down to the nitty-gritty details.
Let me preface this by saying that I have been going to Thailand for the past 35 years. I have served there as a soldier and visited numerous times on vacation. I love the people, food, customs and culture and plan to live out my life there.
I have been doing my homework checking out my financial status and how much I will be getting when I hit retirement age. My situation is unusual in that I will get a small pension from my current government job, additional fund from a military retirement in about 4 years, and even more from social security in about 6 years. I also have a 401K and a government equivalent (Thrift Savings Plan) and will also profit from selling my house when I retire.
So, money is no problem. I plan to buy a house in Thailand. Well, actually, lease a house since foreigners cannot legally own land. I dont want to put the property in my girls name because she could potentially sell it and I would have no recourse. There is also a small loophole allowing foreigners to incorporate themselves and lease the property back. I dont trust this one and worry about laws changing and having my property taken out from under me. I will go with the lease or something called a usufruct.
The usufruct I dont entirely understand but I will be meeting with an English speaking lawyer during my trip in March, 2008 and will get all the details. All I know is that it is similar to the lease but has some benefits. I have gotten some email answers but prefer the face to face explanations.
I have had my girl looking for properties so that during my next 3week vacation I will only have to spend a short amount of time looking. So far, I have seen some pictures of nice properties for about $50,000 USD. This is for a 3-bedroom, 2 bath, 2-story place. Will be nice to see them in person and then make my purchase.
The monthly pension/retirement checks will easily take care of my day-to-day needs. Food and drink are cheap as are the utilities for the house. I will be able to have air conditioning and a satellite dish to receive English speaking programs along with the Thai TV shows.
Shopping is dirt cheap so clothes and other daily items will not be a burden. Going out will be very pleasant as a night on the town with dinner, drinks and going out to a club will be less than fifty dollars and that is living large.
Medical plans are available and care is comparable to US or European standards maybe even higher. Prescription drugs can be had over the counter and medical treatment is second to none.
Staying in Thailand legally has gotten easier with the loosening of visa requirements. Foreigners can now get one year visas that are easily renewable. All you have to do is check in every 3 months. Thailand likes expats money even though we cant own land.
Retiring in Thailand will make my life much easier than retiring in Hawaii even if my condo is paid for. The cost of living, the attitude of the Thai people, and the food and culture has me counting the days until April 4th, 2010.
Why Debt Settlement Works Best in Texas
Debt settlement, also known as debt negotiation or debt reduction, is a relatively new way for dealing with your debt problems. In a debt settlement program, by negotiating with a creditor, a client can reduce their debt by as much as 50 percent and be debt free in as little as 12 to 36 months.
Debt settlement is a great solution for consumers feeling overwhelmed with credit card debt that find themselves either falling behind on their payments or just able to afford the minimums. Considering the savings, in most cases its worth doing if you find yourself in any of the aforementioned situations. As with any debt solution, however, there are potential downsides to debt settlement that should always be considered prior to enrollment. First, debt settlement may have an adverse impact on your credit, particularly while youre in the program. To put this point in perspective, however, its important to remember the following: 1) any third party debt counseling program and even debt consolidation loans from finance companies like Beneficial may affect your credit negatively in the eyes of lenders, 2) the effect on your credit in the long-term is minimal, given the fact youll be eliminating all your credit card debt (amount owed is 30 percent of your credit score, compared to credit history, which makes up 35 percent of your score) and 3) if youre falling behind or about to fall behind anyway, then your credit has been or will be affected negatively anyway.
Realistically, the two main draw backs of debt settlement that are unique to debt settlement are the following: 1) the possibility of legal action being taken by the creditor to collect the full balance and 2) the possibility of creditors harassing you until the debt is settled.
Thankfully, if youre doing debt settlement in Texas or even debt settlement in Florida these concerns are very much diminished. Why is Florida debt settlement so preferable compared to a lot of other states? The reason is Texas has highly favorable debtor laws that give consumers a lot of rights and protections when it comes to past due unsecured accounts like medical bills, credit cards, repossessions, and personal loans.
How State Collection Laws Benefit Texas Debt Settlement
Every state has laws that say if a collections agency is collecting a debt, they are legally obligated to stop contacting a consumer if the consumer sends a Cease and Desist letter and/or a Power of Attorney notifying the collection agency that a third party is responsible for handling all communications with the creditor. Texas law takes it a step farther and not only limits harassment from collection agencies, but also from the original creditor as well. In most states, when a consumer falls behind on their payments and the debt is still being collected by the original creditor (the bank that originally lent you the money or the hospital that serviced you, for example), then the creditor is reserved the right to call the debtor on a daily basis in order to collect whatever is owed, and although debt settlement companies servicing these clients can very easily reduce the calls (changing of your phone number and address and notifying the creditor that you are seeking third party help, for example), no one can ever make the calls completely stop.
This is not the case however for Texas debt settlement clients. In Texas, the same law that deals with what collections agencies can and cannot do when collecting a debt also pertains to the original creditor. What does this mean in practice? It means that a debt settlement company servicing someone from Texas can easily get the calls to not only reduced, but completely eliminated all together (sometimes within days).
State Homestead and Garnishment Laws and How They Benefit Texas Debt Settlement
For Texas debt settlement clients, their wages and home are completely protected, which gives the creditor even more incentive to settle. Given the fact that creditors already have every incentive to settle even with clients who reside in states with less favorable debtor laws, Texas debt settlement clients are in an even stronger negotiating position with their creditors. What does this actually mean? Typically it means even greater protection in the event of a lawsuit and greater savings than what is typical. Let me explain.
Although the vast majority of cases settle, as anyone who has ever read a debt settlement contract will tell you—its impossible for a debt settlement company to guarantee that a client wont be the target of any legal action by their creditors. After all, creditors are always reserved the right to sue debtors to collect a past due account, regardless of whether the consumer is taking any action to resolve the outstanding debt.
In the event a creditor sues a consumer in court and wins a judgment, theyll usually go about executing the judgment in one of the following ways:
1)Wage garnishment—contacting your employer and asking that they set aside a percentage of your wages every paycheck until the debt is paid back in full. (Its illegal for an employer to fire you for this unless more than one creditor is garnishing your wages).
2)Lien on your property—obligates you to pay back the creditor with any proceeds from the sale or refinancing of the property. A creditor prefers to put a lien on your home since it usually increases in value over time, which means the proceeds from your homes sale will be higher, and thus theyre more likely to actually get paid back.
3)Seizing your bank account—contacting your bank, showing the proof of judgment, and asking to withdraw any monies held in deposit under your name.
Fortunately, Texas laws protect debtors from having their wages garnished (unless you authorized in writing to allow your creditor to garnish your wages) and entitle Texas consumers to 100 percent homestead protection in the event of a lien. (Note: this does not apply to tax liens, alimony, or contractors liens.) One downside, however, is that bank accounts are not exempt under state law. That being said, for most consumers who are drowning in credit card debt, there probably will not be much for the creditor to seize anyway, and if so, its unlikely that it will constitute enough to decline a settlement offer. On top of that, bank account information can be difficult for creditors to locate, unlike your home, which is public record.
In sum, these are major advantages for Texas debt settlement clients. Keep in mind that the vast majority of cases are settled successfully regardless of the legal advantages of the consumer. When you consider Texas state laws, debt settlement makes even more sense for the credit card companies, debt collection agencies, and most importantly, for the consumer.
Debt Settlement in Texas and Community Property Laws
If you are married, reside in Texas, and are seeking debt settlement services, you should enroll any and all debts that were accumulated during the marriage by both you and your spouse. Just because the debt is owned by only one partner the other partner is not exempt from having to pay for it as well under Texas law. Creditors know this and may use it to their advantage in the collections process.
Who Else Needs A Gimmick-Free Approach To Financial Freedom And
Who Else Needs A Gimmick-Free Approach To Financial Freedom And Success?
We all have some common problems which are very serious. By this article I would like to raise the awareness and then propose a solution which will be beneficial to anyone who’s interested. Please allow me first to create the context for this:
It is clear to all of us that we live in a troubled world. We can all agree on that. Whether we are talking about individuals, organizations, systems or governments, it seems that the rule of law, the concepts of traditional values, decency and respect are all being pushed aside in favor of short term gain, control and easy or quick enrichment regardless of the consequences.
How do we manage in such a ‘dog eat dog’ world?
It seems that there are two general concepts we must embrace to not only survive, but to thrive in such a lawless and threatening environment;
A) We must ‘Get Ahead’
B) We must then find a way to ‘Stay Ahead’
Lord knows that when you look around and read the headlines that are telling us:
======
terrorism is rising
the tax man’s appetite is becoming more voracious
huge banks are reporting losses in the billions
the trillion $$ mortgage industry is upside down
big brother is tightening his grip
jobs are being exported
credit is tightening
recession is looming
…this environment spells trouble for the masses. If you are one of the masses, you are in trouble! The masses have virtually no ability to help themselves with individual creativity and independence so they look to government for help and the cycle or dependence intensifies and trend worsens. God help us all !
So what’s a person to do to escape from the herd of lemmings diving off the cliff?
First, you must re-align your thinking in a way that creates a new paradigm for complete self reliance. Nothing short of complete personal independence and sovereignty will do. This is paramount. Continue doing what you’ve been doing and you’ll continue getting what you’ve always been getting. You MUST break from the ‘herd’ mentality.
Then, you need to immerse yourself in the knowledge that you will need to acquire the skills required for the job. This knowledge will enable you to accomplish your goals and feed your new paradigms of personal self reliance. This will involve and include new ways of doing business, managing finances, creating wealth, preserving wealth, accumulating savings and resources much faster than ‘conventional wisdom’ would ever allow. But that’s only the finances part. You must also break free from the pharmacological medical monopoly that ensures poor health. You must break free from the legal entanglements that ensure your slavery and the list continues.
Do this and you have at least started the process in an important way.
The problem is the ‘how’, right? Or maybe the ‘where’ as in ‘Where’ do you find the resources, the people, the mentors the knowledge systems and support for such a massive personal transformation?
I won’t beat around the bush. Here is where you do it if you’re serious about getting results as soon as possible: The Venture Resources Group. Get with your referring member and get started now, so you can attend the live conference coming up soon in Panama.
Unfortunately, not everyone is ready financially for The VR Group. It’s an exclusive program and we recognize that it takes some preparation and financial capability to benefit right away.
This is where my Special Announcement comes into play.
I am very pleased to announce that VR Group has formed an alliance with the Continental Savings Club which accomplishes the following for you;
You can start learning about what freedom requires taking some small beginning steps.
You can start associating with like minded individuals for next to nothing
You can start putting yourself in position to crank up your financial prowess with everything to gain and nothing to lose.
You can position yourself to participate in VRG (a $1500 program) for only $99 one time.
With the Continental Savings Club you can easily share this critically important news with virtually anybody you care about.
Follow traditional thinking and you are in trouble! Conventional wisdom is not cutting it. You either break yourself free from ‘business as usual’ or you go down with the ship and risk your family’s future with you. The ball is in your court! It’s all up to you and the decisions you make for yourself.
We invite you now, to participate in the Continental Savings Club. It’s simple, it’s easy, anybody can benefit.
Check it out for yourself.
Opportunity is knocking !
When to Sell Your Structured Settlement
A structured settlement often follows a life changing incident, whether it be positive or negative. Due to these circumstances, you may be faced with the need for a large lump sum payment rather than small monthly payments over a number of years. So, where do you turn? To a company that can buy your structured settlement from you and turn it into an immediate payment that you may use on whatever you see fit.
Each individual has different reasons for wanting to sell their structured settlement, however, first you must decide if it is the right decision for you.
The Benefits of Selling Your Structured Settlement
A large portion of those who receive a structured settlement can benefit from selling it for a lump sum payment. The situations listed in this section represent possible circumstances of individuals that may get the most rewards from selling their structured settlement.
If you cannot wait to receive small, spread-out payments over a long period of time due to a dire financial situation or hefty medical bills and/or lawyer fees. Many of the situations that can bring about a structured settlement can also stick the individual with such obligations.
If you and your family decide that this is the time to finally make that large purchase that you have had your eye on. For example, if you have previously been denied mortgages or loans and would like to take this opportunity to buy that dream home you have always wanted. Or if you have a child or children who are preparing to go off to college and you fear you may not have the financial means to support that dream otherwise.
If you have talked with a financial advisor and both of you feel that you could profit more by investing a lump sum payment, rather than waiting on monthly payments. If the money is invested properly, there is a chance that you could end up with more money in the end than your settlement was ever worth. However, this should not be a plan that is entered into lightly. You should work closely with a financial specialist and feel confident that you have found a great opportunity to invest in.
If you are of older age and feel that you may not be around long enough to receive a fair amount of your structured settlement. You may want to the chance to enjoy the benefits of your settlement or may want to secure part of it for your family after your passing. This way you can distribute the funds as you see fit instead of relying on lawyers or courts.
If you dont plan to use the money right away, but would rather put it into a savings or money market account to draw interest. This would be best suited for someone who has a very hefty settlement, can find an account with large payoff terms, and plans to keep the majority of the money in the account for many years.
No matter what your reason for wanting to sell your structured settlement, choosing this option puts you back in control of money that is rightly yours. The problem that many individuals have with their structured settlements is that the control over their money is left to lawyers, courts, and the company or persons paying out the settlement. You are now able to say where, how, and – most importantly – when you spend your money.
The Drawbacks of Selling Your Structured Settlement
For a few individuals, selling their structured settlement and receiving a lump sum payment may not be in their best interest. One must also evaluate these situations and determine if they outweigh the reasons you are considering selling your settlement.
First and foremost, selling you structured settlement means that you will receive less money than you would if you were to keep it. However, for many people considering this option, this seems like a win-win situation – they will get one large lump sum payment and the company they sold it to will make a profit in the end. The good news is that since you have several companies competing for your settlement, you can choose the one that will give you the a portion of the full settlement that you can live with.
Because you may lose out on a substantial portion of your settlement by selling it, if you are in a financial situation where regular monthly payments will only be a bonus on top of what you already make, waiting out your settlement may be in your best interest. However, if youre a senior, then you should also take your age and the length of your structured settlement into consideration. This would be the ideal situation for someone who is young enough that they have a great chance of living out the life of their settlement.
If you are a person who is poor at managing large sums of money, then selling your structured settlement may not be right for you. For example, if you are the kind of person who gets a large paycheck every two weeks and finds themselves running low on available cash at the end of those two weeks, then that may be an indication that needs to be closely looked at. In this type of circumstance, having your settlement portioned out to you on a monthly basis may keep you from spending it too quickly. Once your settlement is gone, you will be back at square one.
For those reasons, you should also not consider selling your structured settlement if you have an addiction to gambling, shopping, or drugs.
If your settlement was due to an accident that has put you out of work and the funds from it will replace your monthly income, then keeping the payments on a monthly basis may help your family keep your finances in order. However, even in this situation selling your settlement may be best for you if you would like to renegotiate your payments into a larger sum each month to shorten the life of the settlement.
Most individuals receiving a structured settlement can benefit from selling it to a company that can give them a large lump sum payment or shorten the life of the settlement, especially if they are older persons, an individual who has enormous expenses due to an accident or court case, someone in a critical financial position, or one who wishes to make a large purchase for themselves and their family. Finding the right company with terms that fit your needs is a key component of making your experience with selling your structured settlement a positive one.
What You Should Know First, Before Buying Annuities
Americans hear a lot about the shaky outlook for Social Security. In the future, the federal program likely will play a smaller overall role in Americans’ retirement plans.
One way to fill in the gaps of a savings portfolio is to put money in annuities. With an annuity, you pay a premium in exchange for guaranteed income payments at regular intervals. It is most often used for retirement purposes.
The basic types of annuities are equity indexed, fixed rate and variable. The major advantage of annuities is that they all guarantee benefits such as tax-free growth, the ability to pass money directly to heirs or charities and an income stream for life.
Over the past few years, equity-indexed annuities have gained a great deal of popularity. They offer interest or benefits that are linked to an external equity reference – a stock index like the S&P 500, for example. But you get a guaranteed minimum return in exchange for a limited maximum return; that is, you get less upside, but also less downside, to your stock-market investing. Your principal is never at risk.
Fixed-rate annuities, on the other hand, guarantee an interest rate and a declared minimum. They have traditionally been the most popular annuities.
Variable annuities provide more options. They enable you to invest in stock, bonds, mutual funds and money-market instruments.
Reputable financial companies, like TrueYield Financial, want to make sure investors are comfortable when purchasing annuities. Here are some tips for the potential investor.
* Be sure the firm you work with is not limited to offering just one company’s annuities. There are many options available, so work with an agent that can get the one that best fits your needs.
* Understand what you are buying. Talk to your financial adviser or agent about which annuity may be right for your retirement portfolio. Fully understand the annuity contract you are considering.
* Define your goals. Annuities can be used to accomplish a number of financial goals. For example, they can supplement your monthly income or provide emergency funds. Decide which purpose your annuity will serve.
* Ask your agent if you have a “free look” period to review your annuity contract and make sure you have made the right decision.
* Investigate whether or not a bonus annuity is right for you. Bonus annuities credit premium bonuses to allow a retirement saver to make up for stock market loss or to provide an immediate boost to the account value.
What You Should Know About A 401k
A 401k is a good place to start in planning for your future retirement, no matter how far away you may be from the actual time. A 401k account is a special type of savings account that is funded directly through your paycheck each pay period. How it works is that you and your employer determine the amount that is to be deducted from each paycheck you receive, then the employer determines your pre-tax earnings and deducts your 401k funds from the paycheck prior to taxes.
Once deposited in the special savings account, the funds in the 401k are then invested into many different types of mutual funds, bonds, and stocks. The great thing about a 401k retirement plan is that all of these investments are completely free of taxes until the time comes for you to withdraw your money from the 401k account.
Beginning in the early part of the 1980s congress created the 401k retirement plan to allow people to begin saving money before they retire from their employment. It works as something of a financial net, ready for you when the time arrives.
There are several advantages with a 401k other than simply being a tax-exempt method of savings. Your employer may also have a match program. With this program, your employer would match part of your contribution into 401k. This means that whatever you contribute to your 401k, your employer will match a portion of it each pay period. Additionally, some employers raise the amount of their contribution when you have worked for them a certain number of years.
Another exciting aspect of 401k is that you have the option to determine where your funds will go when it is invested. To some, this is important and gives them the opportunity to maximize their retirement savings.
Furthermore, 401k has portability. If you should ever change jobs, you have many different options available in regard to your 401k. One of these options is to simply leave your 401k with your previous employer. This is the easiest option. However, you should be aware that the plan administrators could charge you for maintaining the account records. Another option is to roll the 401k over to the new employers plan. This will allow you to continue to deposit money into your 401k to add to the money you have already earned and saved.
You may also be able to rollover the 401k into an IRA. This is a great option, especially if employers only offer limited investments. You would have greater control over where your money is invested. Last, you could opt to completely cash the 401k out. This option has a few drawbacks. When you cash out your 401k plan, you must pay the taxes on that money and you could also be accessed a penalty for early withdrawal.
It is extremely important that you fully understand all of your options. Weigh the results of each one prior to making any decision about your 401k. Being educated, practical and informed before making your decision will help benefit your 401k and retirement in the long run.
Permission is granted to reprint this article as long as no changes are made, and the entire resource box is included.
What is Being Frugal Really About?
To many people, the word frugal brings many thoughts to mind — most of them unpleasant.
They think of Mr. Scrooge or the 60’s mom that could make a chicken stretch through four meals.
Often, we are so caught up in making others think that we have plenty of money that we forget that we don’t. In fact, most of the people who scoff at living frugally aren’t well-to-do. They are the ones that are struggling financially. They wouldn’t even consider letting others think that they are frugal.
It is the well-to-do and those with money that often really understand what frugal living is. It is being in control of our money. This is a characteristic that most successful, and wealthy, people display. They understand that we control our money, it does not control us.
But don’t think that it is easy. Frugal living is quite hard. It takes a lot of thought and discipline. Money is a tough lion to try and tame. It will seem to beat you back every time. But if you look at living frugally as a challenge with great rewards, you will be able to handle it just fine.
Frugal living gives you the ability to own a vehicle without having an auto loan. You are one of the few that can go shopping without a credit card. If you are frugal and wise in your money decisions, you can have everything you want, without the stress and emotions that come with debt.
To be frugal, you have to make a commitment. You can’t simply be frugal once a month and see results. You have to train yourself to be frugal in every situation. You have to make it a part of your daily routine. Look for ways to recycle and cut waste and spending.
The one secret that will keep you frugal lies in setting goals. Once you have identified what you want to achieve, it will be easier to be frugal. You are working towards something. Make a budget and track the things you do that are making your dreams reality.
One of the largest problems that many consumers face is shopping. To be frugal you have to decide to not shop anymore — at least for things you don’t need. The frugal shopper knows exactly what he needs and he looks at all of his options. Being frugal means that you make do with what you have. You use all of something before you buy a new one.
You don’t have to give the things you love up. All you have to do is see that they fit in your budget. If they don’t, you may have to put them on the back burner for a while until you free up some room. Frugal living isn’t about doing without, it’s about doing better.
Know where your give and take is. If you care deeply about your wardrobe, but not so much about your food, spend less on food and keep your clothing the way you like it.
One of the best features of frugal living is that it is based on you. Yes, I can tell you that frugal people save the twist-ties off of bags of bread. But if you have no use for those twist-ties, they are wasting your time. Being frugal is make the best of what you have, not what I have or others have. You are cutting your spending in order to save for your goals. We all do it in different ways.
Frugal living is essentially living beneath your means. You are saving and not spending every cent you make. It’s a challenge, but one that makes you a better person. It teaches us, and our children, self control. Many successful businesspeople come from very poor backgrounds. They are successful because the frugal life taught them how to sacrifice and exhibit self-control.
Answer these questions:
What if you lost your job tomorrow?
What if you were injured and could never work again?
What if you lost all of your investments?
Are you able to survive to live as you are right now?
These are tough questions. You need to work to have answers for them. Living frugally will give you the security you need.