retirement http://www.wisebread.com/taxonomy/term/416/all en-US 8 Money Moves for the Newly Independent http://www.wisebread.com/8-money-moves-for-the-newly-independent <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-money-moves-for-the-newly-independent" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/singing_in_the_living_room.jpg" alt="Singing in the living room" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You're done with college. You have a job. Your mom is hinting that she wants to turn your bedroom into a space for scrapbooking. It's time to set out on your own.</p> <p>This is an exciting but scary time: You'll have a rent payment and other bills to pay now, and you need to start saving for the future. Now that you've fled the nest, there are some key money tasks that you should tackle. Do these, and you'll be well on your way to financial independence.</p> <h2>1. Start building that emergency fund</h2> <p>Young people living at home aren't too concerned with emergencies wiping out their savings. But once you are out on your own, you are more vulnerable to events that can throw you for a financial loop. Your car might break down and require thousands of dollars in repairs. You may have a medical emergency that's not entirely covered by insurance. You may even find yourself without a job but with bills to pay. This is why it's hugely important to begin putting money aside to cover unexpected events.</p> <p>Start by working to accumulate three months' worth of living expenses, and then shoot for six. Don't invest this money; you need to be able to access it quickly if there's an emergency. Having this cash on hand could be the difference between continuing to live on your own and crawling back to the Parental Chateau. (See also: <a href="http://www.wisebread.com/7-easy-ways-to-build-an-emergency-fund-from-0?ref=seealso" target="_blank">7 Easy Ways to Build an Emergency Fund From $0</a>)</p> <h2>2. Shop around for bank interest rates</h2> <p>Before you went out on your own, you probably didn't think much about banks. You may have put your money in the same place as your parents, or the bank closest to your house. Now it's time to do a little homework to make sure your savings account is doing more than just holding your money.</p> <p>Interest rates are still low these days, but you can bump up your passive income by shopping around for the best rate. If you are willing to have some money tied up for a while, consider putting some money into certificates of deposit, which offer higher rates.</p> <h2>3. Learn to budget</h2> <p>Being on your own means you have to actually pay attention to your income and spending. This is especially true for young people who may have student loans and aren't earning a lot (yet). It's imperative that you spend less than you earn, and this means paying close attention to your expenses.</p> <p>You should begin by tracking your expenses each month so you have a good idea of where your money is going. Then, create small budgets for various key categories like groceries, gas, and rent. Your budgets for entertainment and frivolous expenses should be as small as possible. You may be free from Mom and Dad, but you aren't truly financially independent until you're avoiding debt and saving money at a good clip. (See also: <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=seealso" target="_blank">Build Your First Budget in 5 Easy Steps</a>)</p> <h2>4. Examine your credit card situation</h2> <p>You may have opened a credit card or two when in college, and perhaps you accumulated some debt. You never stressed about it when you were living at home, and Mom and Dad may have even helped you pay the bills. But now you are on your own, so it's time to get a handle on things. Take a look at how many credit cards you have and their interest rates. If you have piled up some debt, assess which cards carry the largest balances.</p> <p>You don't necessarily want to close out cards, since that can hurt your credit score. But stop using ones with high interest rates and little other benefit. Come up with a plan to reduce your debt by tackling the highest interest cards first.</p> <p>Moving forward, you'll want to get in the habit of using credit cards responsibly, avoiding debt, and hopefully earning some rewards along the way. Once you are in the habit of paying off your bill in full every month, examine which cards offer the best benefits, such as cash back or points you can redeem for merchandise retailers or air travel. (See also: <a href="http://www.wisebread.com/avoid-these-6-mistakes-newbies-make-with-their-first-credit-cards?ref=seealso" target="_blank">Avoid These 6 Mistakes Newbies Make With Their First Credit Cards</a>)</p> <h2>5. Make sure you are properly insured</h2> <p>It's common for young people to remain on their parents' health care plans, but at a certain point you need to get insurance of your own. You also need to obtain things like auto insurance, plus renter's or homeowners insurance. If you have a spouse or dependents, you should look into life insurance as well. This requires some research and discipline so you can find plans that are reasonably priced but also provide an appropriate level of coverage.</p> <p>If you are employed, you may be able to get subsidized health insurance from your employer. (Be sure to pay attention to the open enrollment dates.) Those without insurance through their job can get it through the marketplace exchanges set up in accordance with the Affordable Care Act.</p> <p>Choosing to go without health or auto insurance could subject you to penalties from the federal or state government. But more importantly, you place yourself at risk of financial disaster if a bad event takes place. Purchasing proper insurance plans is a key component of sound financial planning.</p> <h2>6. Take advantage of your employer's retirement plan</h2> <p>If you have a full-time job, there's a good chance your company will help you save for retirement by offering a 401(k) or similar plan. These plans allow you to place a portion of your salary into a wide range of mutual funds and other investments, and your employer may match a certain portion of those contributions. Plus, any money you contribute is deducted from your taxable income, so you save money. There is very little downside to opening an account right away, and you should do your best to at least get the full amount of the company match. The earlier you start, the more time your money has to grow.</p> <h2>7. Open a Roth IRA</h2> <p>Even if you take advantage of your employer's retirement plan, it's a good idea to open a separate individual retirement account that offers different tax advantages. With a Roth IRA, you can invest up to $5,500 annually in just about anything you want, and the gains on those investments can be withdrawn tax-free when you retire. A Roth IRA is available to anyone with earned income, so it's a great way to save for retirement if you are self-employed or don't get an employer-sponsored retirement plan. (See also: <a href="http://www.wisebread.com/5-retirement-accounts-you-dont-need-a-ton-of-money-to-open?ref=seealso" target="_blank">5 Retirement Accounts You Don't Need a Ton of Money to Open</a>)</p> <h2>8. Educate yourself about taxes</h2> <p>Guess what? Being financially independent also means you get to do your taxes! The IRS will always get a cut of your money, and it's important to understand how that will impact your take-home pay.</p> <p>If you are employed full-time, you will likely have taxes taken out of your paycheck, but you need to adjust your withholding so that you're not stuck with a large tax bill or refund. If you are self-employed, you will need to plan to pay taxes on your income, and it may require you to pay taxes quarterly. Perhaps most importantly, you must learn all about the various tax deductions and credits that may be available to you.</p> <p>If your taxes get too complicated, you can always pay someone to do them for you. But remember that there's a cost to going that route, and handing off your taxes to a professional doesn't mean you should remain ignorant as to what's going on. (See also: <a href="http://www.wisebread.com/8-tax-return-mistakes-even-smart-people-make?ref=seealso" target="_blank">8 Tax Return Mistakes Even Smart People Make</a>)</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/8-money-moves-for-the-newly-independent">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-before-moving-out-on-your-own">5 Money Moves to Make Before Moving Out on Your Own</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-reasons-to-cut-millennials-some-slack-about-their-money">10 Reasons to Cut Millennials Some Slack About Their Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-financial-mistakes-you-need-to-stop-making-by-30">5 Financial Mistakes You Need to Stop Making by 30</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-financial-basics-every-new-grad-should-know">The Financial Basics Every New Grad Should Know</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance banks budgeting emergency funds financial independence insurance interest rates investing millennials retirement young adults Fri, 15 Dec 2017 10:00:06 +0000 Tim Lemke 2068610 at http://www.wisebread.com What You Need to Semi-Retire Abroad Right Now http://www.wisebread.com/what-you-need-to-semi-retire-abroad-right-now <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-you-need-to-semi-retire-abroad-right-now" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/serene_senior_caucasian_couple_on_vidova_gora.jpg" alt="Serene Senior Caucasian Couple on Vidova Gora" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Regardless of your age, it could be possible for you to quit your day job and head off overseas. Though it may sound like a fantasy, there are some indicators that would suggest you could be enjoying this lifestyle right now. You don&rsquo;t have to meet every criteria below, but if you already meet some of them, then there&rsquo;s potential you could make it happen. Here&rsquo;s what you need to make semiretirement a reality.</p> <h2>No debt</h2> <p>Consumer debt is one of the biggest enemies of semiretirement. If you&rsquo;ve got outstanding balances left, right, and center, a large chunk of your income will likely be going toward paying off the interest on these debts. <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=internal" target="_blank">Paying off credit card debt</a> is the first thing to address before you can make this big lifestyle change.</p> <p>However, if you&rsquo;re not lining the pockets of American financial institutions month after month, then this is the perfect starting point to planning your new life. You&rsquo;re already in a position of financial independence that allows you far more control over what you do with your finances.</p> <h2>Willingness to strip down your lifestyle</h2> <p>One of the keys to making your money stretch further is being able to strip down your lifestyle and live within your means. Though it might seem daunting at first, it will become easier with a proper plan in place and an appreciation for the goals you've set.</p> <p>The idea behind semiretirement is not to make you live on the breadline, but unless you have a huge stash of dollars saved up, you will probably need to make adjustments to your budget. These should be offset by the benefits of living in a country you love with potentially better weather than home. The extra time that you have to do things you&rsquo;re passionate about helps as well.</p> <h2>A portable, good-paying job</h2> <p>The term semiretirement suggests that you&rsquo;re still going to have to work for a living, but it also points toward working fewer hours. There are plenty of jobs that you can do from anywhere in the world, and if you already have one of these, then you&rsquo;re a step ahead. (See Also: <a href="http://www.wisebread.com/8-100k-jobs-you-can-do-online?ref=seealso" target="_blank">8 $100K Jobs You Can Do Online</a>)</p> <p>But even if you do currently clock in to your cubicle every day, don&rsquo;t worry, there&rsquo;s still hope. It&rsquo;s never too late to <a href="http://www.wisebread.com/how-to-live-the-location-independent-lifestyle?ref=internal" target="_blank">become location independent</a>, and moving abroad could actually open up opportunities for you rather than close them down. Teaching English, freelance writing, editing, translating, travel blogging, and working as a divemaster are just a few of the many jobs you can choose from. (See also: <a href="http://www.wisebread.com/4-creative-remote-jobs-that-can-supplement-your-retirement-income?ref=seealso" target="_blank">4 Creative Remote Jobs That Can Supplement Your Retirement Income</a>)</p> <h2>Some passive income</h2> <p>Pocketing some passive income is the perfect way to supplement a life of semiretirement as it essentially allows you to earn while you&rsquo;re not actually working. Though keeping the dollars coming in even while you sleep sounds too good to be true, earning a passive income is actually well within reach for lots of people. (See also: <a href="http://www.wisebread.com/5-ways-to-make-passive-income-online?ref=seealso" target="_blank">5 Ways to Make Passive Income Online</a>)</p> <p>Starting a blog, selling an ebook, and creating an online course are just a few ways it&rsquo;s possible to begin earning passive income. The money could then be used to supplement your other earnings, or it could even work to become your only source of income. Though it&rsquo;s a lot of effort upfront, once established it only requires a small amount of upkeep, so it will allow you far more free time.</p> <h2>A cheap country</h2> <p>By moving to a cheaper country, you can drastically reduce your living costs overnight without making drastic changes to your quality of life. Because the U.S. is relatively expensive compared to the majority of the rest of the world, you&rsquo;re not short on options to find somewhere you can live for less.</p> <p>There are plenty of countries where you can have an extremely comfortable existence for less than $1,000 per month, which fits virtually any semiretirement budget. Another option is to travel between cheap countries rather than staying in one place, and if you&rsquo;re a travel lover, this may be even more appealing. (See also: <a href="http://www.wisebread.com/5-countries-where-you-can-retire-for-1000-a-month?ref=seealso" target="_blank">5 Countries Where You Can Retire for $1,000 a Month</a>)</p> <h2>Savings for a rainy day</h2> <p>Having savings in place is the most important part of any kind of early retirement, but it&rsquo;s particularly important if you&rsquo;re living abroad. It&rsquo;s absolutely essential that you have the funds to cover emergencies as it&rsquo;s unlikely that you&rsquo;ll be able to fall back on any kind of state aid.</p> <p>These savings should be on top of your regular retirement fund, as you don&rsquo;t want your retirement account to take a big hit if something does go wrong. It doesn&rsquo;t need to be a fortune, but you need enough extra to get you back to the U.S. on short notice if necessary.</p> <h2>Possessions you can sell</h2> <p>If you have possessions that you no longer need and can sell before you leave, this could boost your semiretirement fund quite significantly. Things like a vehicle, furniture, or even old clothes can bring in an extra injection of dollars and make the transition easier.</p> <p>Doing this might speed up the time frame you&rsquo;ve put in place for moving abroad, and selling off a few unwanted belongings is also a great way to build your rainy day fund. Depending on the value of the stuff you&rsquo;re selling, it might even be enough to create one straight away.</p> <h2>A house you could rent out</h2> <p>Owning property can be a great bonus if you&rsquo;re able to rent it out for a profit when you move abroad. If you own the property outright, or the rental income is enough to cover your mortgage and maintenance, plus provide you with extra income on top of that, then you&rsquo;ve got another form of passive income.</p> <p>Though you could feasibly sell the property to give you a chunk of cash, in many cases, it makes more sense to hold onto the income-generating asset. The more sources of income that you have, the easier it will be to make the move into semiretirement.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/what-you-need-to-semi-retire-abroad-right-now">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-retirement-hotspots-that-are-cheaper-now-than-ever-before">9 Retirement Hotspots That Are Cheaper Now Than Ever Before</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-ways-to-travel-more-in-retirement">7 Ways to Travel More in Retirement</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-choose-the-perfect-country-to-retire-in">How to Choose the Perfect Country to Retire In</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-details-you-shouldnt-neglect-when-retiring-overseas">5 Details You Shouldn&#039;t Neglect When Retiring Overseas</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/13-financial-steps-to-take-before-retiring-abroad">13 Financial Steps to Take Before Retiring Abroad</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement Travel mini retirement retirement retirement tips retiring abroad travel abroad travel tips Thu, 14 Dec 2017 09:31:06 +0000 Nick Wharton 2069134 at http://www.wisebread.com How Millennials With Kids May Become the Richest Retirees Yet http://www.wisebread.com/how-millennials-with-kids-may-become-the-richest-retirees-yet <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-millennials-with-kids-may-become-the-richest-retirees-yet" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/saving_for_college.jpg" alt="Saving for college" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Millennials have gotten a bad rap when it comes to financial responsibility. It has been widely reported that the rising generation is behind on financial milestones like home buying, having kids, and earning income. But at least one group of millennials is breaking the stereotype when it comes to retirement savings. According to a 2017 survey by NerdWallet that polled employed people, millennials (ages 18&ndash;34) who have children outpace the retirement savings rate of baby boomer parents (ages 55+) and of Generation X parents (ages 35&ndash;54).</p> <p>Employed millennial parents report that they are saving about 10 percent of their income &mdash; that&rsquo;s more than Gen X parents and baby boomer parents, who are saving around 8 and 5 percent, respectively. It&rsquo;s also in line with the recommendations by many experts to save 10 to 15 percent of your annual income for retirement.</p> <p>Across all generations, parents are considered more retirement ready than non-parents. Among survey participants saving for retirement, 84 percent of parents say they&rsquo;re contributing a portion of their salary to retirement, compared to 69 percent of non-parents. The study&rsquo;s authors don&rsquo;t delve into why, but it could be that having children focuses one&rsquo;s mind on all kinds of savings for the future, despite the added burden of child-rearing costs.</p> <h2>The wonder of compound interest</h2> <p>To be fair, millennials generally earn less money than their parents, making it much easier to save a larger percentage of their income. Still, younger parents are pulling out all the stops when it comes to prioritizing saving. NerdWallet says the millennial parents&rsquo; higher savings rate could help them retire more than $1 million richer than baby boomer parents, and $400,000 richer than Gen X parents.</p> <p>Here&rsquo;s why. Although the difference between the 10, 8, and 5 percent being saved by the various generations of parents doesn&rsquo;t seem like much, even small differences can make a large impact over time.</p> <p>For example, take two people earning $40,000 per year. Person A saves 10 percent ($4,000) of their income while person B saves 7 percent ($2,800) of their income per year. If those annual contribution levels remain consistent over 30 years, assuming a moderate 5 percent return, person A will have over $265,000 saved up while person B will have only $186,000 in the bank. That&rsquo;s not taking into account any salary increases.</p> <p>You can see that a few percentage points can make all the difference when it comes to saving. The time value of money is a great motivator to make small budget adjustments in order to save more. (See also: <a href="http://www.wisebread.com/10-signs-you-arent-saving-enough-for-retirement?ref=seealso" target="_blank">10 Signs You Aren't Saving Enough for Retirement</a>)</p> <h2>Making sacrifices</h2> <p>In the 2,000 person survey, millennial parents reported making more sacrifices to accomplish their savings goals. In fact, 76 percent of millennial parents report doing so to make room for a higher savings rate, compared to 69 percent of Gen X parents and 60 percent of baby boomer parents. The most common sacrifices mentioned were dining out, vacations, entertainment, bigger homes, buying a car, pursuing more education, and even having more kids.</p> <p>These small lifestyle changes, when added up, can make a large impact on a person&rsquo;s savings rate. In fact, the survey reports that 38 percent of employed millennial parents are saving more than 15 percent of their income while only 24 percent of Gen X parents and 23 percent of baby boomer parents report saving that same percentage of their income.</p> <h2>Life-changing adjustments</h2> <p>Millennial parents are also saving more than their Gen X and baby boomer counterparts after major life changes like getting higher paying jobs, getting married, having a child, dropping the day care bill, or buying a house. When a large windfall comes or a significant amount of money is freed up, millennials seem to be good at directing these funds to places where they will grow, like a savings or retirement account.</p> <p>If we use the example above, with person A already putting away $4,000 per year and then saving an additional $100 per month, the total savings yield is $345,000 versus $265,000 over 30 years. Saving an additional $100 per month, perhaps because day care is done or a raise is received, is well within reach for not only millennials, but also for the average person or family.</p> <h2>Auto enrollment</h2> <p>Millennials&rsquo; ability to save more than other generations might have to do more with technology and automation than discipline and financial savvy. According to a 2017 report on retirement and benefits plans, more employers are incorporating auto-enrollment into their compensation plans, and millennials are direct beneficiaries of this change. Eighty-two percent of millennials are currently enrolled in a retirement savings vehicle compared to 77 percent of Gen Xers and 75 percent of baby boomers.</p> <p>This same report found that 97 percent of people who are automatically enrolled in employer-sponsored savings plans don&rsquo;t opt out. Again, just saving a few dollars each pay period can make a significant impact on how much a person can save over time. (See also: <a href="http://www.wisebread.com/5-ways-to-automate-your-finances?Ref=seealso" target="_blank">5 Ways to Automate Your Finances</a>)</p> <h2>How can you join the ranks of millennial super savers?</h2> <p>Millennial or not, and parent or not, it&rsquo;s never too late to start saving for retirement. You can make small changes to your money habits that could have a large impact down the line. Here are a few things to try in order to jump-start your savings habits:</p> <ul> <li> <p>Automate your savings so you get used to living on less.</p> </li> <li> <p>Have a plan in place ahead of time for using extra income to save more for retirement.</p> </li> <li> <p>Create a budget to find extra income by either cutting expenses, earning more, or both. Use the extra money to pad your retirement savings.</p> </li> </ul> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/aja-mcclanahan">Aja McClanahan</a> of <a href="http://www.wisebread.com/how-millennials-with-kids-may-become-the-richest-retirees-yet">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-millennial-money-habits-every-retiree-should-learn">6 Millennial Money Habits Every Retiree Should Learn</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-are-people-retiring-in-their-30s">How Are People Retiring in Their 30s?!</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/millennial-millionaires-how-the-brokest-generation-can-also-become-the-richest">Millennial Millionaires: How the Brokest Generation Can Also Become the Richest</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-let-outdated-money-advice-endanger-your-money">Don&#039;t Let Outdated Money Advice Endanger Your Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance 401(k) auto enrollment baby boomers compound interest expenses generations lifestyle millennials retirement saving money Wed, 13 Dec 2017 09:00:08 +0000 Aja McClanahan 2068670 at http://www.wisebread.com 4 Creative Remote Jobs That Can Supplement Your Retirement Income http://www.wisebread.com/4-creative-remote-jobs-that-can-supplement-your-retirement-income <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-creative-remote-jobs-that-can-supplement-your-retirement-income" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/senior_woman_using_her_laptop_outside_house.jpg" alt="Senior woman using her laptop outside house" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>For some, retirement is a welcome chance to quit working forever, but for others it can mark the beginning of a new and exciting venture. It could be out of necessity to supplement a smaller retirement income, or a desire to keep yourself busy with a foot in the working world.</p> <p>Either way, earning money in retirement is an option that plenty of people take, and thanks to the internet, there are jobs that can be done from anywhere in the world. This is especially true for people who have a creative streak. If you're on the lookout for a way to pull in a few dollars using your word or design skills, without stepping foot in an office, here are four remote jobs that can bring in some extra cash.</p> <h2>Blogging</h2> <p>If you plan to travel more in retirement, then travel blogging could be a great option for you. Or if you have some other hobby you&rsquo;re passionate about, that could be your blog topic. For people who are articulate, skilled at photography, and enjoy sharing information about their passion, blogging can be a creative and fun way to earn some extra dollars. Bloggers earn money in a variety of ways, and though it's by no means a quick path to plentiful riches, you can start to build an income within months. (See also: <a href="http://www.wisebread.com/5-easy-ways-to-make-extra-money-blogging?ref=seealso" target="_blank">5 Easy Ways to Make Extra Money Blogging</a>)</p> <p>It takes minutes to set up a blog, and once you have the basics in place, you can begin creating your very own online kingdom. Start out with your friends and family and ask them to share your content with their friends and family to give your blog a boost.</p> <p>The top bloggers on the internet earn six-figure salaries, though clearly not everyone will reach this level. It's not unrealistic to be able to rake in a few hundred dollars per month once your site is established.</p> <h2>Editing</h2> <p>Virtually any written text has the potential to require editing, and these days it's far more likely to be done online than with a pen and paper. If you're a stickler for grammar, efficient at fact checking, and can quickly and accurately knock a piece of text into shape, then you could try your hand at editing. To become a good editor, you should be able to provide objective and useful feedback to help writers improve their work, without being condescending or unnecessarily critical.</p> <p>There are many places to find editing work online, which will vary depending on the type of content you're working on. Online job marketplaces such as <a href="https://www.upwork.com/" target="_blank">Upwork</a> and <a href="https://www.freelancer.com/" target="_blank">Freelancer</a> are good places to start, and allow you to search for and submit proposals for jobs that appeal to you. There are also sites commonly referred to as &quot;content mills&quot; that might not offer high-paying projects, but can be relatively easy to get regular work from as a beginner. Sites such as <a href="http://community.copypress.com/writer-and-editor-training/" target="_blank">CopyPress</a>, allow you to go through their training program and earn a certification with them for copy editing, which you can then use to get jobs through the site.</p> <h2>Freelance writing</h2> <p>If you have a way with words and love to share your experiences, freelance writing can provide a great way to supplement your income. There are countless forms of freelance writing, from copywriting to technical writing, so the first step is to find one that suits you. This is different from blogging, in that you'll be writing for other publications, and some assignments may be in print, as opposed to exclusively writing for the web (though there are still endless opportunities to find work creating digital content). It's best to start off with an existing area of expertise that you possess, or something you're passionate about, and then you can expand your repertoire from there.</p> <p>Many online publications have sections that detail how to make submissions directly to them, as well as information on exactly what they are looking for and how they want it presented. As with freelance writing, online job sites are often a good place to start your search. If you have publications in mind that you'd like to write for, then you can also approach them directly with a pitch.</p> <p>Earnings vary wildly for freelance writing, and you may be paid per word, per article, or sometimes per hour. Your skill level and the client will determine what you can bill. But in my experience, you can expect to earn anything from a couple of cents per word, up to a few hundred dollars per article. (See also: <a href="http://www.wisebread.com/22-websites-that-will-pay-you-to-write-for-them?ref=seealso" target="_blank">22 websites That Will Pay You to Write for Them</a>)</p> <h2>Designing websites</h2> <p>I recently met a retired woman from the U.S. who had been working her way around South and Central America for over seven years. She told me that though her retirement income was enough to support a basic lifestyle, she liked to supplement it by doing extra work along the way. Her part-time hustle was designing websites, a skill she'd taught herself in her free time when she retired.</p> <p>Whenever she turned up in a new location, she would head out to the local hotels to canvas for work designing or redesigning their sites. Over the time she'd been traveling, she'd built up a good portfolio and found it quite easy to pick up new clients.</p> <p>Because it's all done online, you can find plenty of web design work that can be done remotely. Web designers can earn up to around $100 per hour, though the average stands at about $59 and it could be $40 at the lower end.</p> <p><span id="1512148244745S" style="display: none;">&nbsp;</span><span id="1512148245408E" style="display: none;">&nbsp;</span>Most websites, particularly for physical businesses, are small and uncomplicated, so even with lower end web design skills, it's possible to create great sites that clients will be happy with. If this is an area you have expertise in, then you can also branch out into bigger projects, but it is still possible to be self-taught and find work.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-creative-remote-jobs-that-can-supplement-your-retirement-income&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Creative%2520Remote%2520Jobs%2520That%2520Can%2520Supplement%2520Your%2520Retirement%2520Income.jpg&amp;description=4%20Creative%20Remote%20Jobs%20That%20Can%20Supplement%20Your%20Retirement%20Income"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Creative%20Remote%20Jobs%20That%20Can%20Supplement%20Your%20Retirement%20Income.jpg" alt="4 Creative Remote Jobs That Can Supplement Your Retirement Income" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/4-creative-remote-jobs-that-can-supplement-your-retirement-income">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-7"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-surprising-ways-to-earn-money-online">7 Surprising Ways to Earn Money Online</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-you-can-earn-18-to-25-an-hour-with-amazon-flex">How You Can Earn $18 to $25 an Hour With Amazon Flex</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-ways-to-make-money-on-thanksgiving">11 Ways to Make Money on Thanksgiving</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-ways-to-make-money-on-halloween">15 Ways to Make Money on Halloween</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-make-money-by-creating-youtube-videos">How to Make Money by Creating YouTube Videos</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income Retirement extra cash part-time job remote jobs retirement retirement income side gig side hustle work from home working during retirement Mon, 04 Dec 2017 09:30:06 +0000 Nick Wharton 2065224 at http://www.wisebread.com 7 Ways to Travel More in Retirement http://www.wisebread.com/7-ways-to-travel-more-in-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-ways-to-travel-more-in-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/senior_couple_traveling.jpg" alt="Senior couple traveling" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When it comes to ways retirees prefer to spend their time in retirement, travel often lands at the top of the list. The catch is, just because you&rsquo;ve got a lot of time on your hands for travel doesn&rsquo;t mean you have a lot of money. Still, it&rsquo;s entirely possible to travel more in retirement with the right focus and with a few tips and tricks. (See also: <a href="http://www.wisebread.com/6-ways-travel-in-retirement-keeps-you-young?ref=seealso" target="_blank">6 Ways Travel in Retirement Keeps You Young</a>)</p> <h2>1. Take advantage of your flexibility</h2> <p>Without the constraints of work, one of the most valuable things that almost every retiree has in their arsenal is flexibility. Due to increased demand, flight and hotel prices go up at peak travel times, but often drop drastically outside of them. So when it comes to travel, being flexible about when you go can mean your travel budget will stretch a lot further than it would during peak times.</p> <p>Costs in the offseason are far cheaper for everything from flights and accommodations, to entrance fees and attractions. You may save so much that you&rsquo;re even able to put some money aside for your next trip.</p> <p>Traveling during low season also means that even the most popular destinations are much quieter than usual &mdash; another plus if you&rsquo;re not a fan of crowds. (See also: <a href="http://www.wisebread.com/why-timing-is-everything-when-saving-money-on-travel?ref=seealso" target="_blank">Why Timing Is Everything When Saving Money on Travel</a>)</p> <h2>2. Use any discounts available</h2> <p>One of the great perks of being classed as a senior citizen is the wide range of travel discounts that you are now eligible for.</p> <p>Organizations such as the AARP offer a host of deals for members on rental cars, hotels, cruises, and flights, though you have to pay the annual membership fee to access them. There are also lots of travel-related companies that offer their own discounts that are free to access. Best Western's 10 percent discount for folks 55 and over, One Travel&rsquo;s senior travel deals, and Amtrak&rsquo;s senior program offering a 15 percent discount, are just a few.</p> <h2>3. Try a house swap</h2> <p>There are lots of ways to <a href="http://www.wisebread.com/13-ways-to-get-free-travel-accommodations" target="_blank">get free or extremely cheap accommodation</a> when you travel. But by the time you retire, you&rsquo;re probably used to a certain amount of luxury and you don&rsquo;t want to be couchsurfing or staying in hostels. If you have a permanent home that you&rsquo;re willing to allow other people use, then house-swapping could be a brilliant option for you.</p> <p>There are lots of house-swapping sites that make the process extremely simple and safe, and there are even a number specifically dedicated to seniors, such as HomeExchange50Plus.com. You just need to list your property with a description and photographs that show it off. Then you can explore the properties already listed by other members of the community before contacting them to arrange your perfect swap. Though you have to pay an annual fee to join these sites, it&rsquo;s negligible compared the money you can save.</p> <h2>4. Go for longer and travel slower</h2> <p>Though this may sound counterintuitive, generally, the longer that you travel, the cheaper your average daily costs will become. Rather than trying to cram loads of activities and destinations into one vacation, plan to see just one place, and experience it more thoroughly. By staying put, you&rsquo;ll spend less on transport to other destinations.</p> <p>Because you&rsquo;ve got a more leisurely schedule, when do you want to go somewhere nearby, you can take a slower city bus, for instance, rather than a pricey taxi. You can also negotiate discounts in many accommodations for longer stays. I&rsquo;ve done this successfully many times and for stays over four weeks, I have managed to make savings of up to 50 percent (See Also: <a href="http://www.wisebread.com/savor-your-trip-and-save-big-with-these-5-slow-travel-tips" target="_blank">Savor Your Trip and Save Big With These 5 Slow Travel Tips</a>)</p> <h2>5. Offer to house sit</h2> <p>Though house sitting is open to anyone, it&rsquo;s a competitive market, so only the best profiles tend to get selected. Homeowners are looking primarily for trustworthy and considerate people to look after their homes while they're away, and being older generally helps to give you an air of reliability. Many people also like house sitters who have been homeowners, and will treat the home in the way they&rsquo;d treat their own.</p> <p>It&rsquo;s similar to a house swap in that you get the use of a home for free, but you don&rsquo;t need to have a house to reciprocate in return. Often you&rsquo;ll be required to look after pets as part of the deal, but there is no cost other than the annual membership fee that sites like TrustedHousesitters charge. As with house swaps, you can save a significant amount of money through house sitting.</p> <h2>6. Downsize</h2> <p>Even though there are lots of ways to make travel more affordable, it still costs money. Money that not every retiree has lying around. But if you have a house that's bigger than you need, then you could be sitting on a golden nest egg.</p> <p>Obviously the idea of downsizing would be to take advantage of any equity that you have in your existing property, which may be significant if you own the property outright. But even if you still have a mortgage, it may be possible to sell your home and buy a smaller one and still make a profit. You can then use this extra cash to fund your travels.</p> <h2>7. Prioritize travel</h2> <p>This is possibly the most important step to traveling more in retirement, and it&rsquo;s a simple case of making it an absolute priority. One of the best ways to prioritize travel is to make a bucket list of all of the experiences you want to have and all of the places you want to visit. This will help to create a focus and provide you with a whole load of inspiration at the same time.</p> <p>Make sure to check off items on the bucket list at regular intervals, say four trips a year depending on your flexibility. The key to doing this is planning, but it may also help to vocalize your plans to other people to help hold you accountable. If you tell your friends and family that you&rsquo;re going to visit four specific places next year, it makes it much harder to find excuses to back out. (See also: <a href="http://www.wisebread.com/where-to-do-9-popular-bucket-list-items-on-a-budget?ref=seealso" target="_blank">Where to Do 9 Popular Bucket List Items on a Budget</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-ways-to-travel-more-in-retirement&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Ways%2520to%2520Travel%2520More%2520in%2520Retirement.jpg&amp;description=7%20Ways%20to%20Travel%20More%20in%20Retirement"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Ways%20to%20Travel%20More%20in%20Retirement.jpg" alt="7 Ways to Travel More in Retirement" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/7-ways-to-travel-more-in-retirement">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-retirement-hotspots-that-are-cheaper-now-than-ever-before">9 Retirement Hotspots That Are Cheaper Now Than Ever Before</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-things-you-should-always-carry-on-an-economy-flight">9 Things You Should Always Carry on an Economy Flight</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/25-secrets-from-the-worlds-most-frugal-frequent-travelers">25 Secrets From the World&#039;s Most Frugal Frequent Travelers</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/save-big-with-a-dream-wedding-overseas">Save Big With a Dream Wedding Overseas</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-podcasts-for-travel-lovers">6 Podcasts for Travel Lovers</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Travel booking flights retirees retirement retirement tips travel discounts travel in retirement travel tips Mon, 27 Nov 2017 09:30:09 +0000 Nick Wharton 2058472 at http://www.wisebread.com 7 Money Conversations Parents Should Have With Their Adult Kids http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-money-conversations-parents-should-have-with-their-adult-kids" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/smiling_mother_with_young_daughter.jpg" alt="Smiling mother with young daughter" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's hard for many of us to talk about money. Money conversations can be stressful and awkward, and you may be tempted to just stay mum on the subject. However, it's vital that you pass financial wisdom on to your kids, even when they're adults. It's important to teach them about money growing up, but there are some things better discussed when they are older. Here are the money conversations you should be having with your adult children.</p> <h2>1. Financial boundaries</h2> <p>If you are supporting your adult children and you'd like to stop, or if you want to avoid it altogether, it's important to set up some financial boundaries. If you don't want to support them financially at all, tell them that up front and stick to it. That way, you won't end up paying for things and resenting it.</p> <p>If your adult kids are relying on you for part or all of their financial support, sit down together and form a plan. Cutting them off entirely probably won't work for either of you, but you can start slow; back off on payments over the course of six months to a year, and set up concrete steps along the way. For instance, you may decide to stop giving them &quot;fun&quot; money right away, but be willing to cover their cellphone plan for six more months.</p> <p>Make sure you go about having this conversation compassionately. Tell your child that you love them and that you want this for them as well as for you. Offer to help them along the way, to be available to answer questions or aid in budgeting, and let them know that you will always be there for them in other ways. (See also: <a href="http://www.wisebread.com/are-you-ruining-your-retirement-by-spoiling-your-kids?ref=seealso" target="_blank">Are You Ruining Your Retirement by Spoiling Your Kids?</a>)</p> <h2>2. Financial values</h2> <p>Have a conversation with your adult child about what they want in life and how much those things will realistically cost. This is the time to talk about the financials behind car ownership, homeownership, traveling the world, and more. Make sure they have an understanding of how much money they'll need to have in order to afford the lifestyle they want, and how much they need to make in a week, a month, and a year to achieve that.</p> <p>Talk to them, also, about what is really important in life. Tell them that fancy cars, big houses, and lavish vacations aren't the keys to happiness. Ask them to think about what they would pursue if they were dying or what they would miss most if they suffered a serious injury. This can help them figure out what is important to them and what they may not be willing to trade their time and money for.</p> <h2>3. What it means to live within your means</h2> <p>Your adult kids need to understand the importance of spending less than they earn. Show them how to calculate this so they can determine for themselves when to spend their money and when it would be better to save or invest it. Your kids need to figure out how to sacrifice spending on superfluous things in order to live a financially secure life.</p> <h2>4. How to make a budget</h2> <p>Along the same lines, your adult children need to know how to make a budget. You can actually begin teaching this in childhood by giving your kid a weekly allowance and helping them break down how they want to spend their money. Even if you wait until they're older, though, you need to sit down with them and make sure your kids understand what they <em>need</em> to spend money on, what they <em>want</em> to spend money on, and how to allocate those dollars accordingly. (See also: <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=seealso" target="_blank">Build a First Budget in 5 Easy Steps</a>)</p> <h2>5. The benefits and dangers of loans and credit cards</h2> <p>In a culture where credit is readily available, your kids need to know how to evaluate different credit opportunities based on benefits and drawbacks, as well as how to wisely use credit. As soon as they are old enough to obtain financing of their own, you need to talk with your kids about credit cards, educational loans, personal loans, and home loans.</p> <p>It will help to tell stories from your own life. Whether you've made financial mistakes or have been wise with your money, walking your kids through how you made your financial decisions and how they ultimately affected you will make the principles real, rather than keep them so abstract. (See also: <a href="http://www.wisebread.com/the-financial-basics-every-new-grad-should-know?ref=seealso" target="_blank">Financial Basics Every New Grad Should Know</a>)</p> <h2>6. Saving for retirement</h2> <p>It can be hard for people in their late teens and 20s to think about saving for retirement, because it all feels so far away. But it's critical you talk with your adult children about how much they may need for retirement, and walk through some compound interest calculations with them so they see the benefit of saving early. Make sure they understand the basics of an IRA and 401(k), as well as what it means to be fully vested and take advantage of an employer match. (See also: <a href="http://www.wisebread.com/this-is-the-basic-intro-to-having-a-retirement-fund-that-everyone-needs-to-read?ref=seealso" target="_blank">Basic Intro to Retirement Funds</a>)</p> <h2>7. Your financial plan</h2> <p>As your kids get older, they also need to know about <em>your</em> financial plan, before they find themselves trying to figure it out without you. This can be an especially difficult conversation to have, because on top of talking about money, you're also talking about serious injury, illness, or death.</p> <p>Still, it's important for your kids to know what types of insurance you have, because knowing whether you have long-term care coverage, for instance, may help them make better decisions later on. Talk to them, too, about how you plan to divide up your estate. This can keep conflicts to a minimum after you are gone, so they can grieve instead of fight. (See also: <a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate?ref=seealso" target="_blank">The Fair Way to Split Up Your Family's Estate</a>)</p> <p>If one of your adult children is the executor of your will, make sure they understand that responsibility and that they have all the relevant information. They should have access to the location of your accounts, the account numbers, and any identification information, as well as contact information for your lawyer. You can write all of this out for them so they can simply file it away until they need it.</p> <p>Talking about money can be hard, but it's also important. Speaking with your adult children about these topics will ensure they have a better chance at a financially healthy life.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-money-conversations-parents-should-have-with-their-adult-kids&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Money%2520Conversations%2520Parents%2520Should%2520Have%2520With%2520Their%2520Adult%2520Kids.jpg&amp;description=7%20Money%20Conversations%20Parents%20Should%20Have%20With%20Their%20Adult%20Kids"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Money%20Conversations%20Parents%20Should%20Have%20With%20Their%20Adult%20Kids.jpg" alt="7 Money Conversations Parents Should Have With Their Adult Kids" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/sarah-winfrey">Sarah Winfrey</a> of <a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year">6 Smart Financial Gifts to Give Your Kids This Year</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/reach-your-money-goals-faster-with-a-simple-naming-trick">Reach Your Money Goals Faster With a Simple Naming Trick</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-financial-resolutions-you-can-conquer-before-new-years">10 Financial Resolutions You Can Conquer Before New Year&#039;s</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family adult children boundaries budgeting credit kids loans money conversations money matters retirement saving money Wed, 22 Nov 2017 10:00:07 +0000 Sarah Winfrey 2056811 at http://www.wisebread.com 7 Reasons You Need to Downsize http://www.wisebread.com/7-reasons-you-need-to-downsize <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-reasons-you-need-to-downsize" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_and_woman_looking_at_house.jpg" alt="Man and woman looking at house" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It can be a tough decision to leave your home, especially if you've worked hard for it or it's the residence you've always dreamed of owning. But for many people, downsizing isn't so much of an option as it is a financial necessity. And if any of these situations apply to you, it may be time for you to do the same.</p> <h2>1. You're house poor</h2> <p>You're house poor if all of your income is going into your home (your mortgage payments, maintenance, property taxes, and utilities), leaving you with very little money to do anything else.</p> <p>This isn't only problematic from a quality-of-life standpoint (would you like to go on vacation anytime soon?), but also from a debt-avoidance perspective. You're one small financial crisis away from throwing your whole world out of whack. If you can't seem to save any money because your home is eating it up as fast as it comes in, it's time to investigate other options &mdash; like finding a less costly place to live. (See also: <a href="http://www.wisebread.com/8-signs-youre-paying-too-much-for-your-mortgage?ref=seealso" target="_blank">8 Signs You're Paying Too Much for Your Mortgage</a>)</p> <h2>2. You're ready to retire</h2> <p>If you've lived in your home for many years and you've kept up on maintenance, chances are you're looking at a decent payout if you decide to sell. Real estate prices are on the uptick again, and you aren't required to pay capital gains tax on the first $250,000 of your home sale if you're single, or $500,000 if you're married. You must have owned and lived in the home for more than two years to take that exemption.</p> <p>If you got a late start to retirement savings or had to dip into that fund along the way, downsizing could be exactly what you need to set yourself up for financial success in your golden years &mdash; or at least very least, avoid poverty.</p> <h2>3. Your kids have flown the coop</h2> <p>Your decision to have children naturally dictated the type of accommodations you needed, but once they're out of the house, what's the point of paying for all the rooms that no one is using? If your kids give you grief for putting their childhood home on the market &mdash; a reason that many aging parents give for staying put when they should move on &mdash; suggest that they pay a portion of your mortgage. They'll see things your way soon enough. (See also: <a href="http://www.wisebread.com/7-money-moves-to-make-as-soon-as-the-kids-move-out?ref=seealso" target="_blank">7 Money Moves to Make as Soon as the Kids Move Out</a>)</p> <h2>4. You want a change of scenery</h2> <p>Nobody enjoys moving, but we all need a change of scenery every now and then. In fact, that's all the reason you need to pack up and start fresh someplace new. If you're fed up with the cold weather, head someplace warmer. If you don't like the noise of the city, set up shop someplace quieter. You only live once &mdash; and the clock is ticking.</p> <h2>5. You want more time on your hands</h2> <p>Even small single-family houses require a lot of attention. From maintenance to regular cleaning, a one- to two-bedroom home can easily zap a daytime's worth of hours from your week. Less space demands less of your attention, and that all adds up to more time for yourself.</p> <h2>6. You want a lower mortgage</h2> <p>You don't have to be house poor to want a lower monthly mortgage payment. In fact, having the lowest mortgage payment possible while still maintaining a quality of life that satisfies you should be the goal for everyone. Sell the money pit and find something cheaper &mdash; then treat yo'self for being so savvy with your cash.</p> <h2>7. Your health is declining</h2> <p>If you're getting older and you live in a house with a lot of stairs and levels, it's important to consider the future and how your home fits into that. Do you want to spend money that you may need elsewhere to outfit your home to accommodate your needs as you age? It's an option, but not a cheap one. Your best bet may be to spend that money on a ranch home or a retirement or long-term care facility where you and your family will have more peace of mind. Plus, at the latter, you'll make new friends and play bingo. I'd like to move in right now.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-reasons-you-need-to-downsize&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Reasons%2520You%2520Need%2520to%2520Downsize.jpg&amp;description=7%20Reasons%20You%20Need%20to%20Downsize"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Reasons%20You%20Need%20to%20Downsize.jpg" alt="7 Reasons You Need to Downsize" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/7-reasons-you-need-to-downsize">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-ways-to-finance-a-tiny-house">3 Ways to Finance a Tiny House</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-pay-your-mortgage-off-early">Should You Pay Your Mortgage Off Early?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-why-your-house-is-not-an-investment">Stop Thinking of Your House as an Investment</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-that-will-ruin-your-mortgage-application">5 Money Moves That Will Ruin Your Mortgage Application</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-benefits-of-carrying-a-mortgage-into-retirement">5 Benefits of Carrying a Mortgage Into Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing downsizing empty nesters homeownership house poor maintenance mortgages moving retirement selling home Wed, 22 Nov 2017 09:30:10 +0000 Mikey Rox 2056741 at http://www.wisebread.com 4 Affordable Retirement Spots With World-Class Health Care http://www.wisebread.com/4-affordable-retirement-spots-with-world-class-health-care <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-affordable-retirement-spots-with-world-class-health-care" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/senior_woman_placing_hands_on_the_shoulder_of_senior_man.jpg" alt="Senior woman placing hands on the shoulder of senior man" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Health care is one of the biggest considerations for any retiree planning to settle abroad, and could be a deciding factor when choosing which country to move to. Since Medicare does not cover health care costs for U.S. citizens living overseas, it&rsquo;s important to have a plan in place for how you&rsquo;re going to pay for it. But more than that, it&rsquo;s well advised to select somewhere that has a quality health care system to ensure that you get a good standard of treatment when you require it. (See also: <a href="http://www.wisebread.com/follow-these-5-steps-to-full-health-care-coverage-in-retirement?ref=seealso" target="_blank">Follow These 5 Steps to Full Health Care Coverage in Retirement</a>)</p> <p>As the saying goes, you can&rsquo;t put a price on your health. You can however, reduce how much it will cost for any treatment required. Many countries that are affordable to live in have health care on par with the U.S., so not only will your medical bills go down, but so will your cost of living.</p> <p>Note: All cost of living estimates refer to figures from <a href="http://numbeo.com" target="_blank">Numbeo</a>, the world&rsquo;s largest database of user contributed data about cities and countries worldwide.</p> <h2>Mexico</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/san_miguel_de_allende_in_mexico.jpg" width="605" height="340" alt="" /></p> <p>Living costs in Mexico City are nearly 60 percent lower than those in New York City, which is just one of the many reasons the country is a popular destination for retirees. It also has a high number of expats and a selection of communities specifically set up for retired Americans. Whether you want beautiful beaches, quaint colonial towns, or bustling cities with developed infrastructures, Mexico has it all. (See also: <a href="http://www.wisebread.com/how-almost-anyone-can-afford-to-retire-in-mexico?ref=seealso" target="_blank">How Almost Anyone Can Afford to Retire in Mexico</a>)</p> <p>As a foreigner, you won&rsquo;t be entitled to free public health care, but you&rsquo;ll have wide access to facilities because the majority of hospitals in Mexico are private establishments. Perhaps unsurprisingly, many of the best medical facilities in this country are based within the major cities of Mexico City, Guadalajara, and Monterrey. Thanks to the country&rsquo;s proximity to the U.S., many of Mexico&rsquo;s doctors not only speak excellent English, but have also spent time training and studying in the U.S.</p> <p>Dental care is particularly cheap in Mexico, with many U.S. citizens making special trips to enjoy the low prices. The border town of Los Algodones has even been nicknamed the &ldquo;dental capital of the world&rdquo; thanks to the high concentration of dental clinics there. Opticians are also easy to find in Los Algodones and there are a number of national chains and franchises that provide low priced examinations and treatments. (See also: <a href="http://www.wisebread.com/retire-for-half-the-cost-in-these-5-countries?ref=seealso" target="_blank">Retire for Half the Cost in These 5 Countries</a>)</p> <h2>Malaysia</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/floating_mosque_reflection_in_penang_malaysia.jpg" width="605" height="340" alt="" /></p> <p>Malaysia is regularly recognized as one of the best countries to retire in thanks to its welcoming culture, warm climate, and extremely low living costs. Life in the capital, Kuala Lumpur, is 54 percent cheaper than in New York City, meaning your dollar goes a lot further. Retirees from across the globe understandably see this as a real attraction, and in the major cities you&rsquo;ll find large expat populations.</p> <p>Medical tourism is big business here, so much so that Malaysia&rsquo;s Ministry of Health has its own Healthcare Travel Council. It was set up by the government to raise the profile of the country as a top destination for world-class health care services and increase both the quality and quantity of medical tourism. It helps provide a standardized level of service by only approving and endorsing top quality medical facilities, which should give you peace of mind when selecting where to get treatment.</p> <p>As a non-Malaysian, you won&rsquo;t have access to free public health care, meaning you&rsquo;ll need to get a good insurance policy. However, these are generally cheaper than in the U.S., and will enable you to receive treatment in either public or private facilities, depending on your preference. (See also: <a href="http://www.wisebread.com/5-incredible-places-to-retire-abroad-that-anyone-can-afford?ref=seealso" target="_blank">5 Incredible Places to Retire Abroad That Anyone Can Afford</a>)</p> <h2>Costa Rica</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/national_theatre_of_costa_rica_in_san_jose.jpg" width="605" height="340" alt="" /></p> <p>With stunning Caribbean beaches, lush inland jungles, developed cities, and a warm, sunny climate all year round, Costa Rica really has it all. The cost of living in San Jose is 40 percent below that of New York City, while the standard of living remains extremely high. It&rsquo;s little wonder Costa Rica is so popular among retirees from the U.S.</p> <p>Many U.S. citizens already travel to Costa Rica every year for so-called medical tourism, as the prices are far lower than back home. But for expats living there as legally recognized residents, it gets even better. You have access to both tiers of their health service, private and public. If you need emergency treatment, you are eligible to receive it under the universal Caja system, as well as regular checkups, many prescription drugs, and even some surgeries.</p> <p>In addition to the public health care available, there&rsquo;s also an excellent private system that many retirees pay for, mainly because waiting times on non life-threatening surgeries are much shorter. Both systems are renowned for having up-to-date equipment, facilities, and technologies, which partly explains why the health care is rated so highly. You&rsquo;ll also find that most doctors speak English to a very high standard, which should alleviate any concerns around communication. (See also: <a href="http://www.wisebread.com/5-countries-that-welcome-american-retirees?ref=seealso" target="_blank">5 Countries That Welcome American Retirees</a>)</p> <h2>Portugal</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/porto_portugal_cityscape.jpg" width="605" height="340" alt="" /></p> <p>This former world superpower on the southern tip of Europe&rsquo;s Iberian Peninsula once ruled over territories across Latin America, Oceania, Asia, and Africa. These days it&rsquo;s more famous as a major tourist destination, thanks to its incredible beaches, historic architecture, and diverse cuisine. With Lisbon&rsquo;s cost of living 43 percent lower than New York&rsquo;s, many retirees are now viewing this as the perfect place to settle down. The Algarve coast in particular is a retirement hot spot, as it has great weather, beautiful beaches, and a large, established expat community for support.</p> <p>Portugal has always been a well-loved holiday and retirement destination for Europeans, but recently it&rsquo;s become popular among Americans as well. With Portugal&rsquo;s introduction of the Non-Habitual Resident Regime, it&rsquo;s now possible receive your pension tax free here as well as many other sources of income.</p> <p>On top of these benefits, Portugal&rsquo;s health care system is well-known for having excellent facilities and well-trained staff. There is a good public health care system here that foreigners have access to. It&rsquo;s free apart from some nominal patient contributions used to ensure people access the service in the correct way &mdash; for example, not going to the emergency room unless absolutely necessary. Doctors, particularly in the popular areas for retirees, generally speak English.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-affordable-retirement-spots-with-world-class-health-care&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Affordable%2520Retirement%2520Spots%2520With%2520World-Class%2520Health%2520Care%2520%25281%2529.jpg&amp;description=4%20Affordable%20Retirement%20Spots%20With%20World-Class%20Health%20Care"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Affordable%20Retirement%20Spots%20With%20World-Class%20Health%20Care.jpg" alt="4 Affordable Retirement Spots With World-Class Health Care" width="250" height="374" /></p> <div style="display: none;"> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Affordable%20Retirement%20Spots%20With%20World-Class%20Health%20Care%20%281%29.jpg" alt="4 Affordable Retirement Spots With World-Class Health Care" width="212" height="605" /></p> </div> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/4-affordable-retirement-spots-with-world-class-health-care">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-retirement-hotspots-that-are-cheaper-now-than-ever-before">9 Retirement Hotspots That Are Cheaper Now Than Ever Before</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-smart-reasons-to-retire-abroad">7 Smart Reasons to Retire Abroad</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/13-financial-steps-to-take-before-retiring-abroad">13 Financial Steps to Take Before Retiring Abroad</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-almost-anyone-can-afford-to-retire-in-mexico">How Almost Anyone Can Afford to Retire in Mexico</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-common-medicare-myths-debunked">5 Common Medicare Myths, Debunked</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Health and Beauty Retirement Travel health care international travel retire abroad retirement retirement hot spots world-class health care Tue, 21 Nov 2017 09:30:10 +0000 Nick Wharton 2056742 at http://www.wisebread.com 5 Details Your Financial Adviser May Be Ignoring http://www.wisebread.com/5-details-your-financial-adviser-may-be-ignoring <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-details-your-financial-adviser-may-be-ignoring" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mature_couple_meeting_with_financial_advisor.jpg" alt="Mature Couple Meeting with Financial Advisor" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>All financial advisers are not created equal. And all financial advice &mdash; including advice recommended by top economists and financial experts &mdash; may not be the best advice for you.</p> <p>Your financial plan should encompass your complete financial picture, including your goals and priorities. It should include planning for your children, your spouse, aging parents, long-term care, death, loss of income, and so much more. But just because these things <em>should</em> be included in your plan doesn't mean your adviser is automatically doing so.</p> <p>Here are five key things your financial adviser may ignore or omit telling you.</p> <h2>1. He or she is not a financial fiduciary</h2> <p>The term financial adviser is becoming increasingly ambiguous. Due to the complex rules that determine who can call themselves a &quot;financial adviser,&quot; many professionals who are unqualified to give financial advice are unfairly operating under this label.</p> <p>Benjamin Brandt, a North Dakota financial adviser and host of the podcast <em>Retirement Starts Today Radio</em>, recommends that you only take advice from and follow a financial plan created by a qualified fee-only financial fiduciary. Fee-only fiduciaries are paid a flat fee that ensures they don't earn commissions on investment sales. Since they don't depend on commissions from sales, you won't have to question whether a fiduciary adviser is operating with your best interest at heart.</p> <p>To ensure you are working with a true financial fiduciary, Brandt recommends checking the adviser's credentials using the Paladin Registry, which offers a <a href="http://www.paladinregistry.com/research/credentials-financial-certifications" target="_blank">database of financial adviser designations</a> that can help determine if the adviser holds a professional designation (CFP, CPA, ChFC, and CFA) versus one they may have purchased online. (See also: <a href="http://www.wisebread.com/investment-advice-you-should-never-hear-from-your-financial-advisor?ref=seealso" target="_blank">Investment Advice You Should Never Hear From Your Financial Adviser</a>)</p> <h2>2. Your complete financial picture</h2> <p>Understanding your complete financial picture &mdash; including where you are currently and your future aspirations &mdash; is key in developing a true financial plan that is beneficial.</p> <p>According to Brandt, if a financial adviser shows you a glossy sales brochure and offers you investment products before ever looking at your budget, net worth statement, or written financial goals, you are not working with a fiduciary and should ignore his or her financial advice.</p> <p>Before sitting down with an adviser, it helps to take a good look at your finances. Things like calculating your net worth, setting your financial goals, and creating an informal budget before your first visit with an adviser can help you start off on the right foot.</p> <p>And while your calculations and budget may not be entirely accurate (hence the need for a financial adviser), you will have a better idea of where you are and what you have. It will provide your adviser with a more comprehensive financial picture. It will also allow you to discuss your liabilities and other investments that may not be profitable, as well as help to avoid duplicate investments. (See also: <a href="http://www.wisebread.com/11-secrets-you-need-to-tell-your-financial-adviser?ref=seealso" target="_blank">11 Secrets You Need to Tell Your Financial Adviser</a>)</p> <h2>3. Your personal and financial goals</h2> <p>A financial adviser who fails to ask about your financial goals as it relates to your children, your spouse, and your lifestyle is doing you an injustice. An adviser who merely wants to sell and manage your investments can actually set you up to lose more money long-term than if they include your financial priorities in the plan up front.</p> <p>Take, for example, a parent who wants to send their children to school without student loans. That parent would need to explore options that help in saving specifically for college. This could be done through traditional methods or less conventional saving vehicles such as a 529 plan. There are many factors that can shape that decision and a good financial adviser should work with that parent to determine the best savings vehicle to suit the needs of that family.</p> <p>Your financial adviser should understand and respect your financial goals and find the best avenues to help you achieve those goals. Things they should know and consider are:</p> <ul> <li> <p>If you are working to reduce or eliminate debt.</p> </li> <li> <p>Your plans for one-time expenses such as paying for a wedding or taking a large vacation.</p> </li> <li> <p>Education planning for you or your children (private school, college, continuing education programs, or advanced degrees).</p> </li> <li> <p>A possible career change by you or your spouse.</p> </li> <li> <p>If you are planning to start a business.</p> </li> </ul> <h2>4. Preparations for long-term care</h2> <p>According to LongTermCare.gov, 70 percent of people turning 65 will require long-term care services sometime in their lives. And of that number, the U.S. Department of Health and Human Services found that 18 percent will have to live in a long-term care facility.</p> <p>According to insurance firm Genworth, the average annual cost of a stay in an assisted living facility is $45,000, while a stay in a nursing home with a private room costs an average $97,455 per year. And avoiding a stay in a facility isn't necessarily the answer to saving money on long-term care; an individual receiving 44 hours of in-home health care weekly can expect to pay close to $50,000 per year.</p> <p>Long-term care services come with significant costs that often impact retirement plans, savings and assets, and the level of care one receives. If your adviser doesn't account for these expenses in your financial plan, they are putting you at risk of financial turmoil later in life.</p> <p>This means that for some, considering their age, family history, and potential health risks, a health savings account (HSA) may make more sense than a traditional IRA. With a traditional IRA, you contribute pretax dollars to the plan and the money grows tax-deferred. You pay taxes when you withdraw the money when you retire.</p> <p>To enroll in an HSA, you must have a high-deductible health insurance plan (HDHP). With an HSA, you get the same pretax contribution benefit, but the difference is that when you withdraw money to pay for qualified health insurance premiums or medical expenses (including nursing home stays and in-home care), it comes out tax-free. And the funds rollover from year to year, so you don't lose what you don't spend.</p> <p>But again, the decision on whether or not to invest in an HSA can only be determined on a case-by-case basis. What may make sense for one situation could be detrimental in another. (See also: <a href="http://www.wisebread.com/10-reasons-an-hsa-is-actually-worth-having?ref=seealso" target="_blank">10 Reasons an HSA Is Actually Worth Having</a>)</p> <h2>5. Tax efficiency</h2> <p>Unfortunately, a lot of financial advisers fail to take the time to comb through your tax returns to check for tax efficiency. And tax efficiency is one area where a good financial adviser can be the most helpful.</p> <p>An adviser who only focuses on managing your portfolio may not have the expertise to accurately analyze your tax situation and understand how to maximize your income assets. A financial adviser who holds a CPA or CFP designation, on the other hand, would most likely be qualified to provide sound tax advice.</p> <p>Financial planner Charles Scott recently told <em>USA Today</em> that if the only tax advice your adviser gives is to put your money in tax-deferred investments such as an IRA or 401(k), you may want to get a second opinion. Because even though you'll be in a lower tax bracket when you retire than you are currently, there are so many other factors that must be considered. He advises that you diversify your tax load now <em>and </em>in the future.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-details-your-financial-adviser-may-be-ignoring&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Details%2520Your%2520Financial%2520Adviser%2520May%2520Be%2520Ignoring.jpg&amp;description=5%20Details%20Your%20Financial%20Adviser%20May%20Be%20Ignoring"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Details%20Your%20Financial%20Adviser%20May%20Be%20Ignoring.jpg" alt="5 Details Your Financial Adviser May Be Ignoring" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/denise-hill">Denise Hill</a> of <a href="http://www.wisebread.com/5-details-your-financial-adviser-may-be-ignoring">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-reasons-to-be-picky-when-hiring-a-financial-planner">3 Reasons to Be Picky When Hiring a Financial Planner</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/do-you-need-a-financial-planner">Do You Need a Financial Planner?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-retirement-struggles-nobody-talks-about-and-how-to-beat-them">5 Retirement Struggles Nobody Talks About — And How to Beat Them</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-things-financial-advisers-wish-you-knew-about-retirement">7 Things Financial Advisers Wish You Knew About Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance children dependents fiduciary financial advisers financial goals financial planners ignoring investments long term care retirement taxes Fri, 17 Nov 2017 09:30:10 +0000 Denise Hill 2055199 at http://www.wisebread.com 6 Simple Money Milestones Anyone Can Hit http://www.wisebread.com/6-simple-money-milestones-anyone-can-hit <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-simple-money-milestones-anyone-can-hit" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_piggy_bank_599767404.jpg" alt="Woman hitting money milestones" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Achieving financial freedom is really about setting big goals and going after them. But these goals can sometimes seem overwhelming. Saving enough for retirement, a new home, or a college degree is a big task. Eliminating debt can also feel impossible.</p> <p>That's why it helps to set smaller, more manageable goals and work from there. You won't save all of your retirement nest egg or pay off all of your credit cards tomorrow, but there are steps you can take to build your confidence and get you on your way. Here are some achievable financial milestones that you can go after.</p> <h2>1. Open a retirement account</h2> <p>Just <em>open</em> the account. You don't even have to invest more than the minimum: Simply take that first step and open your 401(k) or individual retirement account. By checking this off your list, you have removed a big mental hurdle from investing, and you may even begin getting matching contributions from your employer even if you are not contributing much yourself.</p> <p>With the accounts open, you'll be able to begin putting more sizable chunks of money aside and buying stocks and mutual funds when you feel you are ready. But if your accounts aren't open to begin with, you might talk yourself out of getting started. (See also: <a href="http://www.wisebread.com/5-retirement-accounts-you-dont-need-a-ton-of-money-to-open?ref=seealso" target="_blank">5 Retirement Accounts You Don't Need a Ton of Money to Open</a>)</p> <h2>2. Be independent</h2> <p>Do you still rely on your parents or other friends and family for financial help? Do they assist you with rent payments, credit card bills, and other expenses? Getting help from others isn't a bad thing, but there comes a time when a young person must learn how to maintain financial independence.</p> <p>This means being able to live on your own, pay your bills, and avoid debt without seeking &quot;loans&quot; from the Bank of Mom and Dad. This is not always easy, especially in an era when many young people have student loan debt &mdash; but this should be a goal for anyone in their 20s. (See also: <a href="http://www.wisebread.com/11-money-habits-that-make-you-look-financially-immature?ref=seealso" target="_blank">11 Money Habits That Make You Look Financially Immature</a>)</p> <h2>3. Reduce your credit card debt</h2> <p>Ideally, you want to pay off the whole credit card balance as soon as possible. But for some of us, we just want to keep the balance from growing. Sometimes, we're stuck in a spiral of making minimum payments, while interest charges are adding to the debt. You may not be able to get rid of your credit card balance overnight, but you can take a big step toward that goal by simply reducing the balance the next time your bill is due.</p> <p>This will mean paying substantially more than the minimum required to make a real dent into the principal. If you can do this once, you'll prove to yourself it's possible to reduce your debt burden and eventually get rid of it entirely. (See also: <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=seealso" target="_blank">The Fastest Way to Pay Off $10,000 in Credit Card Debt</a>)</p> <h2>4. Get your credit score over 700</h2> <p>Many people have trouble getting ahead financially because they are saddled with a bad credit score. A low credit score makes it hard to get favorable rates on loans, and can lead to a spiral of debt that's hard to escape. The good news is that you can fix your credit score over time by making the right financial choices, and your bad finances of the past don't have to burden you forever.</p> <p>A credit score of 700 is considered &quot;good&quot; by most credit bureaus. To get there, you need to pay your bills on time and try to pay off all balances in full. If you have missed payments, get current as soon as possible. You don't want to close your credit cards after paying them off, as this can lower your percentage of available credit and ding your credit score. But you should avoid the temptation to open new cards, as that only increases your potential for adding debt. Your credit score may take time to rise, but hitting 700 is achievable if you make the right moves. (See also: <a href="http://www.wisebread.com/5-ways-to-improve-your-credit-score-fast?ref=seealso" target="_blank">5 Ways to Improve Your Credit Score Fast</a>)</p> <h2>5. Earn $1,000 in passive income</h2> <p>One of the great ways to give yourself some financial breathing room is to get revenue from sources that don't require a lot of work. This could mean purchasing dividend stocks, in which companies pay out portions of their earnings each quarter to shareholders. It might mean buying and renting out properties, licensing your creative works, or building a website that generates some ad revenue. Passive income may require some work and expense up front, but could provide you with a solid amount of extra cash without extra effort over time.</p> <p>Try to earn a spare $1,000 in the next year. Then try and boost that figure. Before you know it, proceeds from these passive sources could be a significant total of your overall income. (See also: <a href="http://www.wisebread.com/5-ways-to-make-passive-income-online?ref=seealso" target="_blank">5 Ways to Make Passive Income Online</a>)</p> <h2>6. Save $100 in a month</h2> <p>When your income is barely covering your living expenses, it may seem impossible to save even a few bucks a month, let alone $100. But most people should be able to hit that $100 milestone by taking a good look at their spending.</p> <p>Begin by tracking your spending in a detailed way, making a note of where every dollar goes. Then categorize your spending. You might have a category for eating out, and another for gas or kids' activities. By examining your spending this way, you will likely find areas where you can cut costs. You may have to make some hard choices, but they will be worthwhile. A few dollars here and there can add up to $100 or more. And $100 a month can add up to thousands of dollars over time.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-simple-money-milestones-anyone-can-hit&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Simple%2520Money%2520Milestones%2520Anyone%2520Can%2520Hit.jpg&amp;description=6%20Simple%20Money%20Milestones%20Anyone%20Can%20Hit"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Simple%20Money%20Milestones%20Anyone%20Can%20Hit.jpg" alt="6 Simple Money Milestones Anyone Can Hit" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/6-simple-money-milestones-anyone-can-hit">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-a-surprise-credit-limit-increase-can-harm-you">How a Surprise Credit Limit Increase Can Harm You</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-financial-resolutions-you-can-conquer-before-new-years">10 Financial Resolutions You Can Conquer Before New Year&#039;s</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance credit score debt financial independence goals money milestones passive income retirement saving Wed, 15 Nov 2017 10:00:06 +0000 Tim Lemke 2054445 at http://www.wisebread.com 5 Investment Moves That Prove You're Finally a Grown-Up http://www.wisebread.com/5-investment-moves-that-prove-youre-finally-a-grown-up <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-investment-moves-that-prove-youre-finally-a-grown-up" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/businessman_protecting_coins_in_saplings.jpg" alt="Businessman Protecting Coins In Saplings" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You know that investing is a smart move: It's a way to grow your wealth over time and boost the odds that you'll have enough money to live the happiest possible retirement. But how do you know when you're investing your money like a grown-up and not like a kid?</p> <p>It's about taking reasonable risks, doing your research, and changing your investment mix when it makes sense. In other words, you know you're investing like a grown-up when you treat investing like what it is: work.</p> <p>These are the five investment moves that prove you're finally a grown-up.</p> <h2>1. You're not afraid to invest in stocks</h2> <p>It's true that stocks come with more risk. But investing in stocks comes with the potential for much higher rewards, too. If you ignore stocks and only invest in safe assets such as bonds, you run the risk of losing significant profits over time.</p> <p>According to TIME Money, since 1926, portfolios made up mostly of stocks have never had losses that last 20 years or more. These same portfolios reported average gains of more than 10.8 percent annually, while portfolios made up of bonds averaged returns of just 4 percent a year.</p> <p>If you're investing like a grown-up, you won't run away from the high-reward potential of stocks. Instead, you'll make sure to include stocks as part of your overall investment portfolio. (See also: <a href="http://www.wisebread.com/7-reasons-to-invest-in-stocks-past-age-50?ref=seealso" target="_blank">7 Reasons to Invest in Stocks Past Age 50</a>)</p> <h2>2. You do your research</h2> <p>Your friend comes to you with a hot tip, claiming that you absolutely must invest in this new company. They tell you you'll be getting in on the ground floor of something big. An immature investor might jump at that opportunity, but a grown-up will do the research before acting on the tip.</p> <p>This means reading company reports and listening to conference calls. It means studying the product or service this &quot;hot&quot; company is offering. It means seeking out the advice of true financial experts. And, yes, all of that takes time and work. But to invest like a grown-up means you're willing to put in that effort before investing your dollars. (See also: <a href="http://www.wisebread.com/7-dumb-stock-picking-mistakes-even-smart-investors-make?ref=seealso" target="_blank">7 Dumb Stock Picking Mistakes Even Smart Investors Make</a>)</p> <h2>3. You don't sell too quickly</h2> <p>It's tempting to sell a stock when it's either soaring in value or falling. But reacting too quickly to changes in value, whether positive or negative, is the sign of an immature investor. The grown-up investor realizes that investing sometimes requires patience.</p> <p>Consider a stock that rises in value after you buy it. Sure, if you sell it, you'll make a quick profit. But what if you held onto the stock longer? If the stock is a solid one, it might continue to increase in value over time. If you sell too early, you might miss out on plenty of future profit.</p> <p>You also don't want to hold onto a losing investment for too long, but it's still possible to sell too quickly. If you're patient, and if you've done your research on the company before investing, it might make sense to hold onto the stock until its value begins to rebound. If you sell as soon as the stock loses value, you're certain to take a loss. (See also: <a href="http://www.wisebread.com/the-secret-to-successful-investing-is-trusting-the-process?ref=seealso" target="_blank">The Secret to Successful Investing Is Trusting the Process</a>)</p> <h2>4. You're not hunting for bargains</h2> <p>You don't want to overpay for stocks, but sometimes investing in a quality company takes a significant amount of money. Grown-up investors know that it's better to invest in a strong company while paying a bit more than it is to get a bargain price for a company that won't perform as well.</p> <p>The truth is, if you want to invest in top companies, you'll have to spend more to do so. Don't let your quest for bargain prices trick you into investing in underwhelming companies.</p> <h2>5. You don't cash out your 401(k) when you change jobs</h2> <p>When you change jobs, you'll usually have to figure out what to do with the 401(k) plan in which you've been investing. The immature move? Cashing it out for a quick buck. The grown-up move? Rolling that 401(k) over into an IRA.</p> <p>If you cash out your 401(k), you'll lose a good portion of the money you saved because of taxes and, depending on your age, penalties for withdrawing the cash too early.</p> <p>By rolling over the funds, you won't suffer any penalties or tax hits, and your money will continue to grow over the years. (See also: <a href="http://www.wisebread.com/the-step-by-step-guide-to-rolling-over-your-401k?ref=seealso" target="_blank">The Step-by-Step Guide to Rolling Over Your 401(k)</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-investment-moves-that-prove-youre-finally-a-grown-up&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Investment%2520Moves%2520That%2520Prove%2520You%2527re%2520Finally%2520a%2520Grown-Up.jpg&amp;description=5%20Investment%20Moves%20That%20Prove%20You're%20Finally%20a%20Grown-Up"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Investment%20Moves%20That%20Prove%20You%27re%20Finally%20a%20Grown-Up.jpg" alt="5 Investment Moves That Prove You're Finally a Grown-Up" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-investment-moves-that-prove-youre-finally-a-grown-up">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-millennial-investors-can-get-past-the-great-recession">How Millennial Investors Can Get Past the Great Recession</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-lessons-we-can-learn-from-baseball">8 Money Lessons We Can Learn From Baseball</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-simple-ways-to-conquer-your-fear-of-investing">4 Simple Ways to Conquer Your Fear of Investing</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-reasons-to-invest-in-stocks-past-age-50">7 Reasons to Invest in Stocks Past Age 50</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-types-of-investors-which-one-are-you">8 Types of Investors — Which One Are You?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment 401(k) bargains buy and hold fear grown-up money moves retirement risk stocks Tue, 07 Nov 2017 09:01:07 +0000 Dan Rafter 2045997 at http://www.wisebread.com 10 Financial Resolutions You Can Conquer Before New Year's http://www.wisebread.com/10-financial-resolutions-you-can-conquer-before-new-years <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-financial-resolutions-you-can-conquer-before-new-years" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/new_years_resolutions_series.jpg" alt="New years resolutions series" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>The new year is right around the corner and with it, a whole new set of resolutions. But why wait? There's still time to reshape your financial life before the ball drops and the Champagne toasts begin. Here are 10 financial resolutions you can conquer before New Year's.</p> <h2>1. Clarify your money goals</h2> <p>Success will always be elusive if you don't define it. Get specific about the goals you want to accomplish in the short-term (within the next year) and the long-term (beyond three years). Do you want to <a href="http://www.wisebread.com/the-fastest-method-to-eliminate-credit-card-debt?ref=internal" target="_blank">pay off credit card debt</a> in the next six months? Do you want to <a href="http://www.wisebread.com/4-easy-ways-to-start-saving-for-a-down-payment-on-a-home?ref=internal" target="_blank">save for a down payment on a home</a> in five years? Write down each objective and include the mini-milestones you need to hit along the way.</p> <h2>2. Build a budget</h2> <p>Don't let the word &quot;budget&quot; strike fear in your heart. The best ones are simple, realistic, and flexible. With your short and long-term goals in mind, <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=internal" target="_blank">develop a budget</a> that accurately reflects your income and expenses. Refine as you go; some variable expense categories can be reduced and others may need to be expanded. (See also: <a href="http://www.wisebread.com/build-a-better-budget-in-5-minutes-flat?ref=seealso" target="_blank">Build a Better Budget in 5 Minutes Flat</a>)</p> <h2>3. Cut your spending by 5 percent</h2> <p>Look for ways to cut your spending by just 5 percent starting next month. Can you finally cancel that unused gym membership? Switch to a cheaper cellphone plan? Brown-bag your lunch three days a week? All of the above? The percent you save is less important that simply being able to consciously change your spending habits. (See also: <a href="http://www.wisebread.com/boost-your-savings-with-this-easy-budgeting-system?ref=seealso" target="_blank">Boost Your Savings With This Easy Budgeting System</a>)</p> <h2>4. Don't incur any new consumer debt</h2> <p>More debt means more interest, more stress, and fewer options in the new year. Put the credit cards on ice. Switch to cash if it helps control your spending. (See also: <a href="http://www.wisebread.com/11-good-money-habits-that-will-keep-you-out-of-debt?ref=seealso" target="_blank">11 Good Money Habits That Will Keep You Out of Debt</a>)</p> <h2>5. Prioritize (and attack!) existing debt</h2> <p>Once you've cut your spending 5 percent, funnel the extra money toward paying down debt. But be strategic: Prioritize what you owe based on the interest rate and attack the highest interest debt first. (See also: <a href="http://www.wisebread.com/5-day-debt-reduction-plan-pay-it-off?ref=seealso" target="_blank">5-Day Debt Reduction Plan: Pay It Off</a>)</p> <h2>6. Open an IRA</h2> <p>Whether you choose a traditional or Roth, an individual retirement account can provide valuable tax advantages that make saving for retirement easier and much more effective. Start now. If you're under age 50, you can contribute a maximum of $5,500 in 2017. (See also: <a href="http://www.wisebread.com/5-retirement-accounts-you-dont-need-a-ton-of-money-to-open?ref=seealso" target="_blank">5 Retirement Accounts You Don't Need a Ton of Money to Open </a>)</p> <h2>7. Start building an emergency fund</h2> <p>Life is unpredictable. Having an emergency fund large enough to cover three to six months' worth of living expenses is a smart strategy. It can help you weather a layoff, cover an uninsured medical expense, or deal with an urgent household repair. Not sure how to begin? Explore some simple ways to <a href="http://www.wisebread.com/7-easy-ways-to-build-an-emergency-fund-from-0?ref=internal" target="_blank">build an emergency fund from $0</a>.</p> <h2>8. Start saving your change</h2> <p>Every time you pay for something with cash, pocket the change and save it. Stash all those coins in empty coffee cans or Mason jars. At the end of the year, you'll likely have a few hundred dollars to bulk up your emergency fund or IRA. (See also: <a href="http://www.wisebread.com/everyones-using-spare-change-apps-are-they-really-worth-it?ref=seealso" target="_blank">Spare Change Apps &mdash; Are They Worth It?</a>)</p> <h2>9. Get serious about a side hustle</h2> <p>There are two ways to improve your financial position: spend less or make more. And if you really want to shake things up, do <em>both</em>. Brainstorm ways to earn extra income outside your 9-to-5 job. The cash can be used to pay down debt or invest. (See also: <a href="http://www.wisebread.com/14-best-side-jobs-for-fast-cash?ref=seealso" target="_blank">14 Best Side Jobs For Fast Cash</a>)</p> <h2>10. Try shopping secondhand</h2> <p>This resolution may surprise you, but I'm a firm believer in the power of thrift-shopping. Buying quality goods secondhand can save you thousands over the course of a year. Expand your consumer horizons and make paying retail your method of last resort. (See also: <a href="http://www.wisebread.com/31-reasons-why-im-in-love-with-thrift-shopping-and-you-should-be-too?ref=seealso" target="_blank">31 Reasons I'm in Love With Thrift Shopping</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F10-financial-resolutions-you-can-conquer-before-new-years&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520Financial%2520Resolutions%2520You%2520Can%2520Conquer%2520Before%2520New%2520Year%2527s.jpg&amp;description=10%20Financial%20Resolutions%20You%20Can%20Conquer%20Before%20New%20Year's"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/10%20Financial%20Resolutions%20You%20Can%20Conquer%20Before%20New%20Year%27s.jpg" alt="10 Financial Resolutions You Can Conquer Before New Year's" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kentin-waits">Kentin Waits</a> of <a href="http://www.wisebread.com/10-financial-resolutions-you-can-conquer-before-new-years">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult Kids</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/reach-your-money-goals-faster-with-a-simple-naming-trick">Reach Your Money Goals Faster With a Simple Naming Trick</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-online-forums-thatll-help-you-reach-your-financial-goals">9 Online Forums That&#039;ll Help You Reach Your Financial Goals</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-financial-decisions-youll-never-regret">8 Financial Decisions You&#039;ll Never Regret</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-putting-off-these-9-adult-money-moves">Are You Putting Off These 9 Adult Money Moves?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance budgeting cutting expenses debt money goals resolutions retirement saving money secondhand shopping side gigs thrift stores Mon, 06 Nov 2017 08:00:06 +0000 Kentin Waits 2045796 at http://www.wisebread.com 9 Family Money Matters Your Kids Don't Need to Know http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-family-money-matters-your-kids-dont-need-to-know" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/working_at_home_1.jpg" alt="Working at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you have kids, there will come a time when you want to teach them about money. Some basic personal finance lessons can go a long way toward helping your children understand things like spending, saving, and even investing.</p> <p>But there are many things about your family's finances that your children don't need to know right away, even if they are curious. Information about your family's income, debt, and spending can be confusing and even troubling to younger kids. And kids are prone to share this information when it's best to keep it private.</p> <p>Older teenagers may benefit from learning more about your financial situation as they approach an age when they will be earning money and making purchases on their own. But for younger children, especially, it may be best to keep the following financial information close to your vest. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?Ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>1. Your income</h2> <p>Your kids don't need to know how much money you make. All they need to know is that you love them and will care for them. Younger kids, in particular, have no real sense of the value of money anyway. You could tell them you earn $100 a year and they would think you are rich.</p> <p>Children also have a habit of blabbing, and you never want to find your children bragging to other kids &mdash; or even worse, their parents &mdash; about how much money you earn. Your kids will be better off learning that happiness and financial security have less to do with your income and more to do with what you do with money when you have it. This means teaching them about saving, about being charitable to others, and about being appreciative of what you have.</p> <h2>2. Which parent earns more</h2> <p>It's common for one parent to earn more than the other. This is especially true if one parent chooses to stop working or works part-time to raise a family. Children should generally be left oblivious to which spouse is higher earning because salaries don't represent a person's full contribution to the family.</p> <p>If one parent stops working, it may mean they are taking on a greater share of household responsibilities. And it's also important to note that many of our more important professions are not particularly high paying. A schoolteacher may bring in less money than their banker spouse, but is likely to work just as hard. Rather than share details with your child about which spouse earns more, simply explain to them the value of all work, and give them an appreciation of the broad, non-monetary contributions needed to keep a household going.</p> <h2>3. Your retirement balance</h2> <p>Let's say you've been saving aggressively for retirement and have several hundred thousands of dollars saved. Now, let's say you just told your daughter she can't have ice cream because it costs too much. A child, if she was aware of your retirement savings, might find this baffling. It's hard for young people to grasp that you may have a large amount in savings but are still pinching pennies.</p> <p>Your retirement savings and overall net worth is not something that should be shared too widely. A child who finds out his dad has hundreds of thousands of dollars in the bank may be motivated to brag, and that's not good. So it's best to keep information about your retirement plan to yourself.</p> <h2>4. Your debts</h2> <p>Debt can be a major source of family stress, but it's a stress that only parents should carry. Your worries about how you'll pay off that credit card bill or how you'll make those car payments are your worries, not your kids'. There may be instances when you need to be honest with your children if there is money trouble, and older children may benefit from lessons in money management, credit, and the cost of borrowing. But as long as you are able to provide and care for your kids, they are best left unaware of your financial debt burden.</p> <h2>5. The price of your home</h2> <p>The cost of your house is public information, but that doesn't mean you need to broadcast it to your kids. The only thing that kids need to know about housing is that they have a roof over their head. What you paid for your house should, to the best of your ability, be kept between the buyer, seller, and real estate agent.</p> <p>Additionally, it's best not to share too much detail about mortgage debt. If they ever get a hint that you are struggling to make mortgage payments, that will only lead to anxiety.</p> <h2>6. What you inherit</h2> <p>If a relative passes away and leaves some assets to you, the specifics of that inheritance should be kept as private as possible. This is especially true if the inheritance is quite large. If a child learns of a sizable windfall and shares that information with others, that can lead to jealous family members or friends, and could even make you a target for thieves and scammers.</p> <p>Sometimes, certain family members receive less than others, or are cut out of the will altogether. This can result in family strife that children should not be concerned about.</p> <p>For older children, it is OK to explain to them how inheritances work, as they may take comfort in believing you'll leave them something when you pass. And there will be a time when you need to tell older children about their own inheritance so they have an idea of what they may have to manage.</p> <h2>7. The cost of gifts</h2> <p>Kids have a way of believing that the most expensive item is always the best. They'll reject something if they believe you got it at a deep discount or (gasp!) second-hand. So parents may be best served by not indicating how much they spent on that video game system or that baseball bat. By hiding the cost of items you buy for your kids, they may be more inclined to evaluate the gift on its merits.</p> <h2>8. Child support payments and alimony</h2> <p>If you and your spouse have divorced, you may be on the hook for child support payments, alimony, or both. These costs are usually determined by courts and can be a major source of tension between parents. The children are best left unaware of these details and any drama or conflict surrounding them. It may be comforting to a child if they are aware that support payments are being made, but sharing specific dollar figures can be problematic.</p> <h2>9. In some cases, the cost of college</h2> <p>This is a tricky one. If your child will end up paying for their own college education, he or she will obviously need to know what they'll be on the hook for. And if you are paying for all or part of college, they will be well served to know how much of a financial commitment you are making toward their education. (It will comfort them to know you are saving as much as possible.) But this information should not come to them immediately. A child's first priority should be to stay in school and get good grades. A young high schooler does not need to be burdened with the stress of whether they need to get scholarships or whether they'll be on the hook for student loans later.</p> <p>It's also important to understand that final college costs can vary from family to family, depending on scholarships and financial aid. A wealthy family might pay the full price to send their child to an Ivy League school, while a low-income family may pay next to nothing. This family financial information is really nobody's business, so it's important to be judicious in what you share with your child.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-family-money-matters-your-kids-dont-need-to-know&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Family%2520Money%2520Matters%2520Your%2520Kids%2520Don%2527t%2520Need%2520to%2520Know.jpg&amp;description=9%20Family%20Money%20Matters%20Your%20Kids%20Don't%20Need%20to%20Know"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Family%20Money%20Matters%20Your%20Kids%20Don%27t%20Need%20to%20Know.jpg" alt="9 Family Money Matters Your Kids Don't Need to Know" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year">6 Smart Financial Gifts to Give Your Kids This Year</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult Kids</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family alimony borrowing child support children debt divorce high earners income kids retirement spending Wed, 25 Oct 2017 08:00:07 +0000 Tim Lemke 2038887 at http://www.wisebread.com 9 Retirement Hotspots That Are Cheaper Now Than Ever Before http://www.wisebread.com/9-retirement-hotspots-that-are-cheaper-now-than-ever-before <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-retirement-hotspots-that-are-cheaper-now-than-ever-before" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/glimpse_of_andalusia.jpg" alt="Glimpse of Andalusia" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Financial considerations are the biggest factor for many people when deciding where they want to enjoy their retirement years. As the strength of the dollar continues its hold against other currencies, it&rsquo;s providing us with far more purchasing clout when it comes to buying other currencies.</p> <p>This in turn is helping to make many destinations even more affordable to U.S. citizens who are looking to decamp to foreign locales. Here are nine retirement hot spots that are cheaper than you thought. (See also: <a href="http://www.wisebread.com/retire-for-half-the-cost-in-these-5-countries?ref=seealso" target="_blank">Retire for Half the Cost in These 5 Countries</a>)</p> <h2>1. Panama</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/casco_viejo_nightlife_0.jpg" width="605" height="340" alt="" /></p> <p>With its interesting mix of advanced amenities and lush natural landscapes, Panama has been one of the most popular retirement hot spots in Latin America for a number of years. The capital, Panama City, is a skyscraper-filled, modern metropolis with a well developed infrastructure to rival any city in the U.S.</p> <p>The U.S. dollar is actually legal currency in Panama so you&rsquo;ll be able to see just what value you&rsquo;re getting without any conversions. The cost of living in Panama is comparatively low. Numbeo puts it at around 26 percent of what it is in the U.S., with expenses such as health care and real estate working out extremely cheaply. (See also: <a href="http://www.wisebread.com/5-countries-where-you-can-retire-for-1000-a-month?ref=seealso" target="_blank">5 Countries Where You Can Retire for $1,000 a Month</a>)</p> <h2>2. Mexico</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/museo_soumaya_in_mexico_city.jpg" width="605" height="340" alt="" /></p> <p>Hopping over the border to Mexico has always been a convenient option for U.S. citizens wanting somewhere nearby to retire to. Rich with incredible culture, fascinating history, a great coastline, and a mouthwatering cuisine, Mexico is both familiar and exotic at the same time.</p> <p>The exchange rate hit a high in 2017, meaning U.S. dollars go further there now. That, combined with a cost of living of around 60 percent lower than in the U.S., means your dollar will go a lot further in Mexico than it would at home.</p> <p>While drug-related crime has risen in recent years, there are many retirement communities that are completely safe. (See also: <a href="http://www.wisebread.com/how-almost-anyone-can-afford-to-retire-in-mexico?ref=seealso" target="_blank">How Almost Anyone Can Afford to Retire in Mexico</a>)</p> <h2>3. Spain</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/glimpse_of_andalusia.jpg" width="605" height="340" alt="" /></p> <p>Spain frequently tops the list of the most popular retirement destinations for Europeans. It&rsquo;s little wonder when you consider the number of major cities, the stunning beachside resorts along the coastline, and the slow pace of life.</p> <p>The dollar is closing in on par with the Euro and the country has only just pulled out of a financial crisis that began in 2008. As a result, U.S. citizens have more purchasing power than ever in Spain right now, making the prospect of retiring here even more enticing. The cost of living stands at about 27 percent lower than the U.S., according to Numbeo, so it&rsquo;s no surprise that there are over 5.5 million foreign nationals living in Spain.</p> <h2>4. Ecuador</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/fruit_market_otavalo_ecuador.jpg" width="605" height="340" alt="" /></p> <p>If you&rsquo;re a lover of the great outdoors, then Ecuador could be the ideal choice as your retirement location. It&rsquo;s home to portions of the Andes mountain range and the Amazon Rainforest, some of the most untouched Pacific Coast beaches in South America, and the remarkable Galápagos Islands.</p> <p>Pricewise it comes in at around 50 percent cheaper than the U.S., according to Numbeo, so you&rsquo;ll have plenty of cash left over for exploring and adventuring each month. Ecuador adopted the U.S. dollar in 2000 as its official currency so your nest egg won&rsquo;t be affected by exchange charges or currency fluctuations. (See also: <a href="http://www.wisebread.com/5-incredible-places-to-retire-abroad-that-anyone-can-afford?ref=seealso" target="_blank">5 Amazing Places to Retire Abroad That Anyone Can Afford</a>)</p> <h2>5. Costa Rica</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/wild_caribbean_beach_of_Costa_rica.jpg" width="605" height="340" alt="" /></p> <p>Costa Rica is famous among surfers all over the world for its awesome swells, but in recent years it&rsquo;s also been making waves of a different kind. People of retirement age are flocking here for its year-round tropical climate, stunning beaches, and green landscapes.</p> <p>Numbeo reports that the cost of living is around 34 percent less in Costa Rica, so it&rsquo;s easy to see why up to 100,000 American citizens have decided to call Costa Rica home. Exchange rates to the Costa Rican Colon have been steadily rising over the past year, peaking at around 591 to the dollar.</p> <h2>6. Malaysia</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/classic_local_rickshaw.jpg" width="605" height="340" alt="" /></p> <p>Malaysia is one of the most diverse countries in Asia, making it a continuously interesting place to live. It has influences from Malay, Chinese, and Indian populations clearly visible in the culture and cuisine, with an added bonus that English is widely spoken. It also has bustling, modern cities that have the same amenities, restaurants, and funky bars that you&rsquo;re used to in the U.S.</p> <p>Many retirees enjoy a better standard of living here than they would be able to afford in the U.S. thanks to the cost of living being around 52 percent lower, according to Numbeo. Health care is one of the biggest reasons that retirees come to Malaysia &mdash; its quality is so good that a medical tourism boom has sprung up.</p> <h2>7. Malta</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/boats_in_bugibba_bay_malta.jpg" width="605" height="340" alt="" /></p> <p>Thanks to the laid back island life with year-round sun, Malta is a popular destination for retirees. This tiny archipelago of just three islands lies in the Mediterranean Sea between the South coast of Italy and North Africa and has a population of around only 400,000.</p> <p>Many of Malta&rsquo;s residents are English speaking, and one of the islands, Gozo, is home to a particularly large expat community with a big American contingent. Numbeo reports that prices here are around 13 percent cheaper than in the U.S. overall, but it&rsquo;s possible to live for much cheaper.</p> <h2>8. Portugal</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/beautiful_beach_in_carvoeiro_algarve_portugal.jpg" width="605" height="340" alt="" /></p> <p>Europeans have been retiring to Portugal for decades, attracted by the warm weather, the picturesque coastline, and government tax breaks offered to overseas retirees. But the secret is slowly beginning to reach U.S. shores as Americans start to realize just what they&rsquo;re missing out on.</p> <p>Portugal has some impressive infrastructure boasting world class golf courses, fantastic restaurants, and some of the highest rated health care in the world. Despite all of this, the cost of living here is still relatively low, and you&rsquo;ll pay around 34 percent less in Portugal than in the U.S., according to Numbeo.</p> <h2>9. Thailand</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/the_best_of_landscape_in_chiang_mai.jpg" width="605" height="340" alt="" /></p> <p>One of the most popular tourist destinations in the world, Thailand is also a hot spot for retirees from all over the globe. Thanks to its diversity, it&rsquo;s possible to settle down in a vast city, a lush green mountainous region, or even a secluded island with golden beaches.</p> <p>Despite its popularity, Thailand remains one of the cheapest countries in Asia to live in, with costs at over 43 percent less than in the U.S., according to Numbeo. The exchange rate has dropped in recent months, but is still considered favorable for expats wanting to move here now. (See also: <a href="http://www.wisebread.com/5-countries-that-welcome-american-retirees?ref=seealso" target="_blank">5 Countries That Welcome American Retirees</a>)</p> <h2 style="text-align: center;">Like this post? Pin it!</h2> <div align="center"><a data-pin-do="buttonBookmark" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <div><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Retirement%20Hotspots%20That%20Are%20Cheaper%20Now%20Than%20Ever%20Before%20%282%29.jpg" style="float: left; width: 31%; margin-right: 3%; margin-bottom: 0.5em;" alt="" /></p> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Retirement%20Hotspots%20That%20Are%20Cheaper%20Now%20Than%20Ever%20Before.jpg&#10;" style="float: left; width: 31%; margin-right: 3%; margin-bottom: 0.5em;" alt="" /> <img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Retirement%20Hotspots%20That%20Are%20Cheaper%20Now%20Than%20Ever%20Before%20%281%29.jpg" style="float: left; width: 31%; margin-right: 0%; margin-bottom: 0.5em;" alt="" /></p> </div> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/9-retirement-hotspots-that-are-cheaper-now-than-ever-before">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-affordable-retirement-spots-with-world-class-health-care">4 Affordable Retirement Spots With World-Class Health Care</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-ways-to-travel-more-in-retirement">7 Ways to Travel More in Retirement</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-choose-the-perfect-country-to-retire-in">How to Choose the Perfect Country to Retire In</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-incredible-places-to-retire-abroad-that-anyone-can-afford">5 Incredible Places to Retire Abroad That Anyone Can Afford</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-smart-reasons-to-retire-abroad">7 Smart Reasons to Retire Abroad</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement Travel international travel moving retire abroad retirement retirement tips travel travel tips Wed, 18 Oct 2017 08:30:11 +0000 Nick Wharton 2038473 at http://www.wisebread.com How to Choose the Perfect Country to Retire In http://www.wisebread.com/how-to-choose-the-perfect-country-to-retire-in <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-choose-the-perfect-country-to-retire-in" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/happy_senior_couple_sitting_on_a_sail_boat.jpg" alt="Happy Senior Couple Sitting on a Sail Boat" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Many of us harbor dreams of retiring overseas in some far-flung, exotic country. Whether it&rsquo;s for pure adventure, to make retirement dollars stretch further, or both, retiring abroad is becoming more common. But choosing exactly where to go can be difficult. Without proper planning and consideration, a country that appears perfect on the surface could end up being a nightmare. (See also: <a href="http://www.wisebread.com/9-things-to-know-before-retiring-abroad?ref=seealso" target="_blank">9 Things to Know Before Retiring Abroad</a>)</p> <p>I know just how daunting the task of choosing a country can be. I&rsquo;ve been living a semiretired life in multiple countries over the past eight years and I&rsquo;ve written many articles on early retirement. I&rsquo;ve found it helps to start with a list of all the countries where you can envision yourself living. Maybe it will be made up of places you&rsquo;ve fallen in love with while visiting in the past. Perhaps you&rsquo;ll include countries you&rsquo;ve never visited, but have heard are great retirement havens for Americans. From there, follow these guidelines to shorten your list and eventually pin down the perfect retirement destination for you. (See also: <a href="http://www.wisebread.com/retire-for-half-the-cost-in-these-5-countries?ref=seealso" target="_blank">Retire for Half the Cost in These 5 Countries</a>)</p> <h2>Figure out your finances</h2> <p>Finding a country that fits your finances is probably the most important part of the puzzle. It&rsquo;s crucial that you opt for someplace where you can enjoy the lifestyle that you dream of without draining your bank account in the process. (See also: <a href="http://www.wisebread.com/5-american-cities-where-you-can-retire-on-just-social-security?ref=seealso" target="_blank">5 American Cities Where You Can Retire On Just Social Security</a>)</p> <p>As a first step, you need to calculate exactly how much you have in your retirement savings and how much you can withdraw every month. Then, project how much income you&rsquo;ll have from other sources, such as Social Security or any private pension or annuity plans you have. Account for any taxes you might have to pay, and come up with a ballpark figure for how much you&rsquo;ll be able to spend every month during retirement. (See also: <a href="http://www.wisebread.com/5-incredible-places-to-retire-abroad-that-anyone-can-afford?ref=seealso" target="_blank">5 Incredible Places to Retire Abroad That Anyone Can Afford</a>)</p> <h2>Rule out unaffordable destinations</h2> <p>Once you have your estimated income, start researching the cost of living in each place on your dream list and determine whether it fits your finances. Tools like <a href="https://www.numbeo.com/cost-of-living/" target="_blank">Numbeo</a> and <a href="https://www.expatistan.com/cost-of-living" target="_blank">Expatistan</a> are great for estimating the cost of living in different countries. Cross out the places you can&rsquo;t afford. This will naturally narrow down which countries are realistic to put on a short list. (See also: <a href="http://www.wisebread.com/5-countries-where-you-can-retire-for-1000-a-month?ref=seealso2" target="_blank">5 Countries Where You Can Retire on $1,000 a Month</a>)</p> <h2>Check out the quality and affordability of health care</h2> <p>Health care is one of the most significant factors to take into account when choosing a retirement destination. Medicare generally won&rsquo;t cover you outside of the U.S., so you need to put a plan in place for how you&rsquo;ll afford any medical requirements. Fortunately, some of the most affordable countries to live in also have top class medical services, but it&rsquo;s something you&rsquo;ll need to research for each country on your list. (See also: <a href="http://www.wisebread.com/dont-let-these-expenses-spoil-your-retirement-abroad?ref=seealso" target="_blank">Don't Let These Expenses Spoil Your Retirement Abroad</a>)</p> <p>If the health care is cheap, it may be possible to just pay as you go, but you should also look into suitable insurance plans. In particular, think about how you&rsquo;d pay for treating a major illness or catastrophic injuries.</p> <h2>Take your hobbies and interests into account</h2> <p>No doubt you have a good idea of how you&rsquo;d like to fill your free time once you&rsquo;re not working anymore. But make sure you double check that you&rsquo;re able to do the things you love most in the country of your choice.</p> <p>If you&rsquo;re a keen golfer, there&rsquo;s no point in selecting a country that has no golf courses, as it&rsquo;s probably something you&rsquo;ll want to do more of in retirement. Don&rsquo;t just assume that every country will have the facilities or resources you need for your hobbies and pastimes.</p> <h2>Consider your security</h2> <p>Unrest and crime are two factors that can quickly endanger your life, affect your finances, and hamper your dreams. Though it&rsquo;s impossible to predict what will happen in the future, it is possible to make educated assumptions based on the historical and current security situation in the city, region, and country you&rsquo;re considering. Is it somewhere prone to civil unrest, gang activity, or petty crime? Are there upcoming elections that may significantly alter the political landscape?</p> <p>Check out the <a href="https://travel.state.gov/content/passports/en/country.html" target="_blank">U.S. State Department&rsquo;s travel website</a>, which provides advice on every country in the world. Also read articles and check with local residents to see whether any problems reported in the media ring true in real life.</p> <h2>Research visa options and other relevant laws</h2> <p>Residency laws differ from country to country and can come with significant costs attached. Check these requirements thoroughly. In most cases, you can find information put out by the country&rsquo;s immigration office online. You can also contact the closest consulate or embassy of the country you&rsquo;re considering. Often, you will need to apply for residency while you&rsquo;re outside that country, but check first. (See Also: <a href="http://www.wisebread.com/5-countries-that-welcome-american-retirees?ref=seealso" target="_blank">5 Countries That Welcome American Retirees</a>)</p> <p>Consider other relevant laws and regulations, too. Perhaps you won&rsquo;t be allowed to work if you&rsquo;re on a retiree visa, or you won&rsquo;t be allowed to buy property in certain areas. You may or may not be subject to local taxes, as well. Remember also that moving overseas does not preclude the requirement to <a href="https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad" target="_blank">pay taxes in the U.S.</a>, even if it&rsquo;s necessary to pay them in your new home.</p> <h2>Consider cultural fit</h2> <p>Moving to a new country, not understanding the language, and trying to adjust to the culture all at the same time can be a singularly isolating experience. Ask yourself if you&rsquo;re ready to learn a new language if necessary, and whether you&rsquo;re able to change to fit in with the culture of the places you&rsquo;re considering. Are there things that you don&rsquo;t like about a particular culture that you think you&rsquo;d grow accustomed to? On the other hand, could annoying local biases or customs that you&rsquo;ve put up with on a vacation grow unbearably wearisome once you&rsquo;re living in that place full-time?</p> <h2>Get to know the weather</h2> <p>It&rsquo;s a good idea to check year-round weather forecasts, too. Even if you think you&rsquo;re familiar with the outlook somewhere, it could drastically change throughout the year. If you&rsquo;ve always visited during high season, make a conscious effort to check what the weather is like during low season. There&rsquo;s often a reason why tourists don&rsquo;t visit then. Temperatures may rise or drop to uncomfortable levels, storms may make living dangerous or at least inconvenient, and drawn-out rains may just make everyone miserable. Many weather websites or destination-specific websites have data on historical temperatures and precipitation for every month of the year. (See also: <a href="http://www.wisebread.com/33-places-to-retire-if-you-love-the-rain?ref=seealso" target="_blank">33 Places to Retire If You Love the Rain</a>)</p> <h2>Do a test run</h2> <p>Possibly the biggest mistake that retirees can make before heading abroad is to take the plunge without having tested the waters first. Do yourself a big favor and complete a test run in the country that you settle on. It may cost you a little extra, but the expense is usually worth it.</p> <p>Consider where you&rsquo;ll go if you don&rsquo;t like your new retirement country. Maybe you&rsquo;ll want to move back to the home you own in the U.S. If so, it makes sense not to sell right away. Perhaps you can rent it out temporarily while you do your test run.</p> <p>Then make a semi-permanent move. Rent a temporary home, preferably furnished, and get by with whatever you can take in suitcases. Give yourself enough time to experience different seasons, get to know a few people, and see if your monthly budget will really work. If it doesn&rsquo;t work out, you may be disappointed, but at least you&rsquo;ll have minimized your moving expenses and you&rsquo;ll have a place to go when you move back. (See also: <a href="http://www.wisebread.com/4-questions-you-need-to-answer-before-relocating-in-retirement?ref=seealso" target="_blank">4 Questions You Need To Answer Before Relocating in Retirement</a>)</p> <h2 style="text-align: center;">Like this post? Pin it!</h2> <div align="center"><a data-pin-do="buttonBookmark" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <div><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Choose%20the%20Perfect%20Country%20to%20Retire%20In%20%284%29_0.jpg" style="float: left; width: 31%; margin-right: 3%; margin-bottom: 0.5em;" alt="" /></p> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Choose%20the%20Perfect%20Country%20to%20Retire%20In%20%281%29.jpg" style="float: left; width: 31%; margin-right: 3%; margin-bottom: 0.5em;" alt="" /> <img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Choose%20the%20Perfect%20Country%20to%20Retire%20In%20%283%29.jpg" style="float: left; width: 31%; margin-right: 0%; margin-bottom: 0.5em;" alt="" /></p> </div> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/how-to-choose-the-perfect-country-to-retire-in">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-retirement-hotspots-that-are-cheaper-now-than-ever-before">9 Retirement Hotspots That Are Cheaper Now Than Ever Before</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-affordable-retirement-spots-with-world-class-health-care">4 Affordable Retirement Spots With World-Class Health Care</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/13-financial-steps-to-take-before-retiring-abroad">13 Financial Steps to Take Before Retiring Abroad</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-travel-in-retirement-keeps-you-young">6 Ways Travel in Retirement Keeps You Young</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-details-you-shouldnt-neglect-when-retiring-overseas">5 Details You Shouldn&#039;t Neglect When Retiring Overseas</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement Travel living expenses moving retirement retirement fund retiring abroad saving money Mon, 16 Oct 2017 08:30:10 +0000 Nick Wharton 2035913 at http://www.wisebread.com