Retirement http://www.wisebread.com/taxonomy/term/417/all en-US 9 Things to Consider Before Retiring to a Tiny Home or RV http://www.wisebread.com/9-things-to-consider-before-retiring-to-a-tiny-home-or-rv <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-things-to-consider-before-retiring-to-a-tiny-home-or-rv" 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_on_road_trip.jpg" alt="Senior Couple on Road Trip" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Magazines and design blogs are full of stories of retirees downsizing to tiny homes to cut their expenses and responsibilities. With costs around $30,000 and monthly utilities as low as $15, some enthusiasts even say that trading a traditional home for a tiny house or RV allowed them to retire early. While the tiny house trend is pretty new, retiring to a life on the road in a recreational vehicle is an established tradition among retirees.</p> <p>Should an RV or tiny house show be your first stop once your final day on the job is over? Not so fast. Committing to a major purchase immediately after retirement is rarely a good idea, and there are plenty of important things to consider first.</p> <h2>1. Will your tiny home be legal?</h2> <p>Federal codes as of 2018 state that a house must be at least 88 square feet, but many states have additional regulations. In areas of North Carolina, for example, you need at least 150 square feet, plus 100 square feet more for each additional resident.</p> <h2>2. What will you do with your stuff?</h2> <p>The average retiree has a lifetime's accumulation of possessions in their home: Gifts from children and grandchildren, collections, holiday decorations, kids' left-behind sports trophies. A tiny house or RV won't have room for any of that. You'll have to dramatically downsize, whether that means putting things in storage, giving them away, or having an estate sale.</p> <h2>3. What will the furnishings cost?</h2> <p>While you may be saving money on mortgage, utility, and property taxes with a tiny house or RV, don't forget that you probably won't be able to reuse any of the furniture from your previous home. You'll have to pay for built-in or custom-built furniture and appliances. (See also: <a href="http://www.wisebread.com/5-unexpected-costs-of-living-in-a-tiny-house?ref=seealso" target="_blank">5 Unexpected Costs of Living in a Tiny House</a>)</p> <h2>4. Will you be able to age in the home?</h2> <p>RVs and tiny houses are often perched on wheels or raised above ground. You may need to climb a ladder to reach your bed every night. What will happen if you end up using a cane or wheelchair? Will you be able to retrofit your tiny home or RV to make it accessible? I came across one retiree who had a rock-climbing harness modified to lift her into her loft every night; I can't help wondering how much she likes that setup if she has to use the bathroom at 2 a.m.</p> <h2>5. How will this affect family traditions?</h2> <p>If you hold a big Thanksgiving dinner every year in your regular home, don't imagine you'll continue the tradition in your tiny home or RV &mdash; at least not in the same way. These pocket-size residences have no entertaining space, and their kitchens don't facilitate cooking for a crowd. What will happen to the events you used to host? Will you invite loved ones to camp near you and eat turkey at a picnic table? Or will an adult child take over hosting?</p> <h2>6. Where will you park?</h2> <p>My husband and I sometimes daydream about spending our retirement parking an RV in the driveways of our grown children, visiting one after the other throughout the year. If this is your plan, what do your children think of it? Do they have an off-street place for you to park? What about water and sewage hookups? If you want a more permanent place for your tiny home, you'll need to find out if your state has tiny house co-ops, or what the rent would be in a trailer park. You can find out more about zoning through the <a href="http://americantinyhouseassociation.org/" target="_blank">American Tiny House Association</a>.</p> <h2>7. Will your relationship withstand the change?</h2> <p>If you and your spouse have both been working for decades, retirement itself will be a big change involving a lot more togetherness than before. Are you really ready to give up private spaces in your home to spend your days within a few feet of one another? If your spouse leaves his shoes on the floor, will it irritate you to no end that you can't even walk around them? Tiny homes and RVs typically have just one bathroom; are you ready to share?</p> <h2>8. Can you get a loan?</h2> <p>Some retirees are able to buy an RV or tiny home outright after selling their traditional home. But if you need a loan, you won't be able to take out a standard mortgage on a recreational vehicle. You'll need an RV loan, and since RVs are considered a luxury item, you'll need excellent credit to qualify. With a tiny house, you'll need either an RV loan or a personal loan. (See also: <a href="http://www.wisebread.com/3-ways-to-finance-a-tiny-house?ref=seealso" target="_blank">3 Ways to Finance a Tiny House</a>)</p> <h2>9. Which should you get, a tiny house or an RV?</h2> <p>Some people wonder why tiny houses cost more than RVs. Is it just because they're cute and trendy? Actually, there is a substantial reason: A good tiny house should be durable enough for everyday use, while RVs are built for vacation use, and tend to fall apart faster.</p> <h2>A word of advice: Try before you buy</h2> <p>Whether you think a tiny house or an RV is your ideal future home, you should rent at least one before you jump in and buy. Weekending in various styles of tiny homes and/or RVs is a good start, but remember that vacation life is always easier and more fun than everyday life. If you are serious about making the lifestyle leap, consider packing up and moving to a rented tiny home or RV for a substantial amount of time, like six months or a year, before you start shopping in earnest.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/9-things-to-consider-before-retiring-to-a-tiny-home-or-rv">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-benefits-of-carrying-a-mortgage-into-retirement">5 Benefits of Carrying a Mortgage Into Retirement</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/12-money-moves-to-make-the-moment-you-decide-to-retire">12 Money Moves to Make the Moment You Decide to Retire</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/10-places-to-try-the-airstream-lifestyle-before-you-buy-one">10 Places to Try the Airstream Lifestyle Before You Buy One</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-questions-to-ask-before-buying-a-second-home-in-retirement">5 Questions to Ask Before Buying a Second Home in Retirement</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/4-ways-to-find-income-while-waiting-for-full-retirement-age">4 Ways to Find Income While Waiting for Full Retirement Age</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing Retirement aging downsizing family loans recreational vehicle rv state laws tiny house travel zoning Mon, 21 May 2018 08:00:26 +0000 Carrie Kirby 2139752 at http://www.wisebread.com 3 Unexpected Hurdles You Might Encounter When Applying for Social Security Benefits http://www.wisebread.com/3-unexpected-hurdles-you-might-encounter-when-applying-for-social-security-benefits <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/3-unexpected-hurdles-you-might-encounter-when-applying-for-social-security-benefits" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/making_a_financial_plan.jpg" alt="Making a financial plan" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Every month, 61 million Americans collect some sort of Social Security benefit. So the process to file for and receive benefits must run like a well-oiled machine, right?</p> <p>Not necessarily. While the majority of Social Security beneficiaries enjoy a relatively simple and painless process when they apply for benefits, not everyone is quite so lucky. For some beneficiaries, the path to receiving monthly benefits may be littered with unexpected hurdles, pitfalls, and snags.</p> <p>Here's what you need to know about the potential hiccups you might encounter when applying for your Social Security benefits, and how you can avoid them.</p> <h2>The hurdle: You don't have all of your vital paperwork</h2> <p>As a government benefit, Social Security does require a relatively long list of vital paperwork for signing up. Specifically, you will need the following documentation to apply for benefits:</p> <ul> <li> <p>Your Social Security number.</p> </li> <li> <p>Your original birth certificate or other proof of birth.</p> </li> <li> <p>Proof of U.S. citizenship or lawful alien status if you were not born in the United States.</p> </li> <li> <p>Your military discharge papers, if you served.</p> </li> <li> <p>A copy of either your W-2 forms or your self-employment tax return for the previous year.</p> </li> </ul> <p>For most beneficiaries, gathering these documents is simply a matter of gathering papers from a file cabinet or safe.</p> <p>However, some beneficiaries may either have no copy of their vital paperwork, or they may have some sort of problem with a piece of paperwork. For instance, my stepfather discovered as an adult that his original birth certificate had spelled his name differently than he had spelled it his entire life, which meant that he had to get a new birth certificate issued in order to make sure his legal name matched his birth name. Otherwise, he may have been considered ineligible for Social Security benefits when he was ready to retire. (See also: <a href="http://www.wisebread.com/5-questions-to-ask-before-you-start-claiming-your-social-security-benefits?ref=seealso" target="_blank">5 Questions to Ask Before You Start Claiming Your Social Security Benefits</a>)</p> <h2>The fix: Ask staffers to help you get started</h2> <p>Not having all the necessary paperwork is a relatively common problem facing beneficiaries, and it is something that the staffers at your local Social Security office are used to dealing with. If you are simply missing the necessary paperwork, Social Security can help you to obtain any information you might be having trouble finding.</p> <p>If you have a more complex problem like my stepfather's, Social Security may also be able to let you know what legal steps you must take &mdash; although it's always wise to get a second opinion on such matters.</p> <p>In either case, it is ultimately better to get the ball rolling on time for your Social Security benefits application and enlist the help of the Social Security Administration in getting your paperwork in order.</p> <h2>The hurdle: Your claiming situation is unusual</h2> <p>Most of the millions of beneficiaries who are processed through the Social Security Administration fit into one of several standard claiming situations. For these beneficiaries, the basic information available through both the SSA website and via staffers at the local office will provide the road map necessary to get signed up for benefits.</p> <p>However, there are any number of less-than-standard situations that a beneficiary may find herself in, and that's when things can get tricky.</p> <p>For instance, something as simple as applying for Medicare benefits after age 65 could stymie your local Social Security office. Beneficiaries who have health care benefits through another source are not required to sign up for Medicare upon reaching age 65. However, the majority of beneficiaries must sign up for Medicare at age 65 or face a fine, and since the rule covering this so-called special enrollment period is not necessarily well-known by the staffers whose job it is to get you enrolled, a beneficiary in this situation may find herself arguing again and again that she is not subject to the fine.</p> <p>Any claiming situation that is not standard can become bogged down with this kind of miscommunication and misunderstanding. The rules governing Social Security are complex and not even lifelong staffers know all of the specific situations that could affect benefits, which can cause confusion and frustration for any beneficiary who does not fit into a neat claiming box. (See also: <a href="http://www.wisebread.com/how-to-make-sense-of-the-different-parts-of-medicare?ref=seealso" target="_blank">How to Make Sense of the Different Parts of Medicare</a>)</p> <h2>The fix: Research and persistence</h2> <p>The hardworking folks at your local Social Security office want to help and they have a great deal of expertise &mdash; but it is not their primary responsibility to make sure you understand your options. Ultimately, it is up to the beneficiaries themselves to understand the specific rules governing their claiming situations.</p> <p>That's not to say that you are entirely on your own. Start by asking questions at your local office, and use that as the jumping off point to research the particular rules for your situation. Remember that the staffers at the local office will be experts on Social Security as a whole, while you may need to become an expert on your specific claiming strategy.</p> <p>Once you have determined what rules govern your situation, be persistent in asking that those rules are followed. Bring a copy of the rule with you when you meet with a Social Security staffer, and be prepared to keep presenting it as you go up the chain of command if you're not satisfied.</p> <h2>The hurdle: You receive conflicting information</h2> <p>Since you know that you'll have some sort of unusual claiming situation, you take the bull by the horns and research your options. You do some preliminary digging on SSA.gov and call your local office to double check what you've found. Based on the information you were able to read online and the assurance of the staffer at the office, you feel confident that everything is copacetic.</p> <p>The next time you call, however, you receive a different answer from a different staffer when you ask the exact same question. And the discrepancy is not a minor one &mdash; it's going to cost you big money. There is no way to prove that the first staffer told you something different, and you are going to have to pay for someone's mistake. (See also: <a href="http://www.wisebread.com/13-crucial-social-security-terms-everyone-needs-to-know?ref=seealso" target="_blank">13 Crucial Social Security Terms Everyone Needs to Know</a>)</p> <h2>The fix: Record your conversations with Social Security</h2> <p>Social Security expert Larry Kotlikoff is no stranger to some truly terrifying Social Security mistakes, and after years of helping beneficiaries navigate the program, he advises everyone to record their conversations with Social Security. While actually recording your conversations may or may not be feasible, it is paramount that you take notes of your conversations so that you have a record of the information you receive.</p> <p>In particular, you will want to note the date and time of the conversation, the name of the staffer you speak to, the specific aspect of Social Security law that governs your situation, the next steps advised by the staffer, and what potential fines, fees, or problems may arise from either taking or not taking those steps.</p> <p>Keeping this kind of record will not only help you better understand your situation, but also provide you with proof that you were advised a specific course of action if another staffer gives you conflicting advice later on.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/3-unexpected-hurdles-you-might-encounter-when-applying-for-social-security-benefits">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-financial-penalties-every-retiree-should-avoid">3 Financial Penalties Every Retiree Should Avoid</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/13-crucial-social-security-terms-everyone-needs-to-know">13 Crucial Social Security Terms Everyone Needs to Know</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-how-your-taxes-will-change-when-you-retire">Here&#039;s How Your Taxes Will Change When You Retire</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-myths-about-money-in-retirement">5 Myths About Money in Retirement</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/should-you-treat-your-social-security-benefits-like-a-bond">Should You Treat Your Social Security Benefits Like a Bond?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement application benefits hurdles medicare paperwork preparedness problems social security social security administration Fri, 18 May 2018 08:30:31 +0000 Emily Guy Birken 2138249 at http://www.wisebread.com Should You Treat Your Social Security Benefits Like a Bond? http://www.wisebread.com/should-you-treat-your-social-security-benefits-like-a-bond <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/should-you-treat-your-social-security-benefits-like-a-bond" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/social_security_card_with_currency_and_dice.jpg" alt="Social Security Card with Currency and Dice" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>As you may know, one of your most important investment decisions has to do with <em>asset allocation </em>&mdash; that is, how much of your portfolio should be invested in various asset classes, such as stocks and bonds. The optimal answer has mostly to do with your age and risk tolerance.</p> <p>When you're young, you have time to ride out the market's ups and downs, so it's generally best to tilt your portfolio toward riskier but potentially more rewarding investments, such as stocks. As you get older, it's wise to change that mix, reducing your stock exposure and increasing your use of less volatile investments, such as bonds.</p> <p>Your risk tolerance also plays a role. If you're comfortable with risk, that may point you toward a more stock-heavy portfolio. If you prefer the safer side of the spectrum, you may want a more conservative investment mix.</p> <p>But here's where our esoteric-sounding opening question comes in: What if you could put a present value on your future Social Security benefits? And what if you added that amount to your current investment portfolio? That would make your portfolio much larger, and it would change how you're investing, which is exactly what investing legend and Vanguard Founder Jack Bogle recommends. (See also: <a href="http://www.wisebread.com/the-basics-of-asset-allocation?ref=seealso" target="_blank">The Basics of Asset Allocation</a>)</p> <h2>Running the numbers</h2> <p>Let's say you have investments totaling $450,000 and your optimal asset allocation is 60 percent stocks and 40 percent bonds. That means you should have $270,000 invested in stocks and $180,000 in bonds.</p> <p>Let's also assume your estimated Social Security benefits will be $1,250 per month, or $15,000 per year, beginning at age 67 (you can see your estimated benefits by making an account the Social Security Administration's <a href="https://secure.ssa.gov/RIL/SiView.do" target="_blank">website</a>). This exercise also requires that you make an assumption about your life expectancy; let's assume you'll live another 20 years after you start collecting Social Security.</p> <p>Bogle would suggest valuing your portfolio at $750,000. That's $450,000 of <em>actual</em> investments plus $300,000 of assumed future Social Security benefits ($15,000 per year times 20 years). There are other ways of determining the present value of your future benefits, but taking the annual estimated benefit amount and multiplying it by the number of years you expect to live after starting to claim benefits is the simplest.</p> <p>Applying a 60/40 allocation to your newly inflated $750,000 portfolio would mean your optimal investment mix is $450,000 in stocks and $300,000 in bonds. Bogle suggests that since Social Security is a virtually guaranteed benefit, that $300,000 &quot;asset&quot; is a <em>conservative </em>asset &mdash; more like a bond than a stock. That means you're free to invest your entire actual $450,000 portfolio in stocks. (See also: <a href="http://www.wisebread.com/7-reasons-youre-never-too-old-to-buy-stocks?ref=seealso" target="_blank">7 Reasons You're Never Too Old to Buy Stocks</a>)</p> <h2>What could go wrong?</h2> <p>Proponents of this idea, such as Bogle, point out that the much more aggressive approach it would enable you to take with your actual investments would give you the potential to grow your nest egg much larger. Historically, stocks have far outperformed bonds, so in theory that's correct.</p> <p>However, it would also mean taking on much more risk than you are right now and having to endure much more volatility than you may be comfortable with, especially as you get older. For example, how would you like to be 65 years old, have your entire retirement portfolio invested in equities, go through a bear market similar to 2008, and lose 50 percent?</p> <p>Plus, let's say that leaving an inheritance is important to you. What if you go through a 2008-style bear market when you're in your 60s or 70s and that assumption you made about living to age 87 doesn't work so well? The only part of your portfolio that would be left behind is your <em>actual </em>portfolio, which just got cut in half.</p> <p>What about the rest of your portfolio &mdash; the $300,000 of future Social Security benefits? The minute you die, the value of those benefits drops to $0. Are you comfortable with that?</p> <p>One more concern is whether Social Security will even exist by the time you retire. While it's hard to imagine the organization ever completely disappearing, it's much easier to envision a day when benefits will be reduced based on household income &mdash; so-called means testing. The amount of money current workers are paying into the program simply isn't enough to continue paying beneficiaries the full amount they are owed indefinitely.</p> <h2>Not for the faint of heart</h2> <p>Only if you are extremely risk tolerant should you consider factoring future Social Security benefits into your asset allocation. Even then, you would be wise to factor in only a <em>portion</em> of those benefits.</p> <p>For most, however, because of the added stress this approach would bring, especially at a time of life when peace of mind will be increasingly important, it probably doesn't make sense.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/should-you-treat-your-social-security-benefits-like-a-bond">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/why-playing-it-safe-with-your-money-is-actually-risky">Why Playing It Safe With Your Money Is Actually Risky</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-the-risk-averse-can-get-into-the-stock-market">How the Risk Averse Can Get Into the Stock Market</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/8-types-of-investors-which-one-are-you">8 Types of Investors — Which One Are 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/7-reasons-youre-never-too-old-to-buy-stocks">7 Reasons You&#039;re Never Too Old to Buy Stocks</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-essentials-for-building-a-profitable-portfolio">5 Essentials for Building a Profitable Portfolio</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment Retirement asset allocation benefits portfolio predictions risk social security stock market tolerance volatility Thu, 17 May 2018 08:30:19 +0000 Matt Bell 2138949 at http://www.wisebread.com Best Money Tips: Non-Financial Retirement Planning http://www.wisebread.com/best-money-tips-non-financial-retirement-planning <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-non-financial-retirement-planning" 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_tablet_688944826.jpg" alt="Woman doing nonfinancial retirement planning" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Welcome to Wise Bread's <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found articles on nonfinancial retirement planning, areas where you may be paying more than you should, and how to choose your first bank.</p> <h2>Top 5 Articles</h2> <p><a href="http://www.mymoneyblog.com/non-financial-retirement-planning.html">Non-Financial Retirement Planning: List 10 Retired Activities</a> &mdash; There's a lot more to retirement planning than just the financial parts. [My Money Blog]</p> <p><a href="https://diseasecalleddebt.com/stop-youre-giving-them-too-much-money-common-areas-where-most-households-pay-more-than-they-should/">Stop! You're Giving Them Too Much Money: Common Areas Where Most Households Pay More Than They Should</a> &mdash; If you haven't negotiated the pricing on these common household services within the past two years, it's time to pick up the phone and the service provider a call. [Disease Called Debt]</p> <p><a href="https://thecollegeinvestor.com/21894/selecting-first-bank/">What You Need To Know About Selecting Your First Bank</a> &mdash; The bank you choose should have the features you want most, like online banking, a user-friendly mobile app, or high interest paid on your deposits. [The College Investor]</p> <p><a href="https://bemorewithless.com/top-excuses/">Top 3 Decluttering Excuses for Holding on to Crap You Don&rsquo;t Need</a> &mdash; Learn how to get over these top excuses for holding on to stuff. Let it go! [Be More With Less]</p> <p><a href="https://www.moneyunder30.com/paying-medical-bills-you-cant-afford">What To Do When You Get Medical Bills You Can't Afford</a> &mdash; These straightforward strategies will help you handle those eye-popping medical bills. [Money Under 30]</p> <h2>Other Essential Reading</h2> <p><a href="https://www.popsugar.com/smart-living/DIY-Projects-Weekend-34786814">46 Easy DIYs You Need to Try This Weekend</a> &mdash; Try these easy DIY projects for a creative weekend. From spa items to home décor to cute accessories, there's bound to be something fun for you! [PopSugar Smart Living]</p> <p><a href="https://obliviousinvestor.com/investing-in-your-earning-potential/">Investing in Your Earning Potential</a> &mdash; It can make sense to slow down your retirement savings for a short while if you're using that money to increase your earning potential. [Oblivious Investor]</p> <p><a href="http://www.freemoneyfinance.com/2018/05/is-extreme-frugality-necessary-to-save-for-retirement.html">Is Extreme Frugality Necessary to Save for Retirement?</a> &mdash; Everyone has different goals for retirement &mdash; and will take different paths to get where they want to be. [Free Money Finance]</p> <p><a href="http://www.moneyaftergraduation.com/2018/05/07/debt-snowflake/">How to Use the Debt Snowflake Method</a> &mdash; Tiny cash windfalls may not seem like much on their own, but get enough of them together and they'll have a big impact on paying off your debt. [Money After Graduation]</p> <p><a href="https://wallethacks.com/how-to-buy-an-engagement-ring-online/">How to Buy an Engagement Ring Online</a> &mdash; Buying an engagement ring online can help you save a lot of money and allow you to buy exactly what you &mdash; and your partner &mdash; want. [Wallet Hacks]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/amy-lu">Amy Lu</a> of <a href="http://www.wisebread.com/best-money-tips-non-financial-retirement-planning">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/7-retirement-planning-steps-late-starters-must-make">7 Retirement Planning Steps Late Starters Must Make</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-retirement-planning-changes-when-youre-single">7 Ways Retirement Planning Changes When You&#039;re Single</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/free-digital-retirement-coach-aims-to-take-angst-out-of-retirement-planning">Free &quot;Digital Retirement Coach&quot; Aims to Take Angst Out of Retirement Planning</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/choosing-a-retirement-account-whats-available-and-what-s-best-for-you">Choosing a Retirement Account: What&#039;s Available, and What’s Best for You?</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/the-five-types-of-people-who-never-retire-are-you-one-of-them">The Five Types of People Who Never Retire (Are You One of Them?)</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement best money tips retirement planning Fri, 11 May 2018 08:30:21 +0000 Amy Lu 2140431 at http://www.wisebread.com 5 Myths About Money in Retirement http://www.wisebread.com/5-myths-about-money-in-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-myths-about-money-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/retirement_plan_concept_0.jpg" alt="Retirement plan concept" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Retiring is an amorphous and complicated goal &mdash; which means retirement planning attracts more than its fair share of plausible-sounding myths. Unfortunately, these myths, misconceptions, mistakes, and misbegotten rules of thumb can seriously lead you astray on your path to a well-funded and fulfilling retirement.</p> <p>Don't fall for any of the following common myths about money in retirement.</p> <h2>1. You need $1 million to retire comfortably</h2> <p>This particular myth holds a unique distinction in that it is wrong in both directions: $1 million is both not nearly enough money for the retirement you're dreaming of, and way too high a number for most people to achieve.</p> <p>How is that possible?</p> <p>On one hand, $1 million doesn't go nearly as far as it once did. If you plan for a grand retirement that involves traveling, fine dining, entertainment, and general living-it-up, you will probably find that a $1 million nest egg will not cover all you want to do. In fact, depending on your cost of living and other circumstances, it's entirely possible you could exhaust $1 million with relatively modest retirement spending.</p> <p>On the other hand, $1 million is a number that is out of reach for the majority of workers. According to a 2016 GoBankingRates survey, 33 percent of Americans have <em>nothing</em> saved for retirement at all. For most Americans, the idea of saving $1 million for retirement may sound too overwhelming to even think about, and they may give up on the idea of saving altogether.</p> <p>The problem with this myth is that it is slapping a blanket generalization over a very idiosyncratic process &mdash; preparing for retirement. Instead of focusing on a nice, round number, calculate your best estimate of how much your own dream retirement will cost. Make adjustments to your dream or the number as necessary. (See also: <a href="http://www.wisebread.com/how-to-retire-with-less-than-1-million-in-savings?ref=seealso" target="_blank">How to Retire With Less Than $1 Million in Savings</a>)</p> <h2>2. The 4 percent rule</h2> <p>This myth actually has a specific start date. Financial adviser William Bengen proposed this rule in 1994 as a potentially safe withdrawal rate for retirees to make sure their money would comfortably last for the rest of their lives. He based his proposal on historical market data and predictions over where the markets would go in the next 20 years.</p> <p>Here's how the rule works: Historically, the rate of return on stocks generally hovers around 10 percent. That means a retiree can take 4 percent of their assets each year to live on, without ever touching the principal and still seeing growth each year. For a retiree with a $1 million nest egg, that means $40,000 would be available each year for living expenses, without ever dipping into the $1 million itself.</p> <p>There is no problem with the 4 percent rule when the market is doing well. The problem with this rule is that it doesn't work during market downturns. In 2008, the market saw a 30 percent decrease overall. Any withdrawals a retiree made during that time took a permanent bite out of their nest egg. Such a retiree either had to accept that permanent bite, or learn to live on less (or nothing) until the market bounced back.</p> <p>This is why it's a good idea to diversify so that you have some more stable and liquid investments you can count on in bad years, as well as long-term investments that can continue to grow (and recover) over time.</p> <h2>3. Social Security will cover your basic expenses</h2> <p>After paying into Social Security all your life, it's natural to expect the benefits to take care of you in retirement. But Social Security benefits are not now and were never meant to be a primary source of income in retirement. The program was begun in order to provide a safety net to keep seniors from abject poverty.</p> <p>The average monthly Social Security benefit in 2018 is $1,404 &mdash; which is barely enough to cover basic expenses in most areas of the country. It is far better to consider Social Security a supplement to your retirement income than count on it for living expenses. (See also: <a href="http://www.wisebread.com/6-smart-ways-to-boost-your-social-security-payout-before-retirement?ref=seealso" target="_blank">6 Smart Ways to Boost Your Social Security Payout Before Retirement</a>)</p> <h2>4. Medicare will take care of your health needs</h2> <p>Something that comes as a nasty surprise to retirees is the fact that Medicare covers less than you might think &mdash; and health care in retirement costs more than you might realize.</p> <p>Specifically, Medicare does not cover the following needs:</p> <ul> <li> <p>Long-term care (the nonmedical help that an otherwise healthy senior might need for daily living).</p> </li> <li> <p>Self-administered prescription drugs.</p> </li> <li> <p>Routine dental or eye care.</p> </li> <li> <p>Dentures.</p> </li> <li> <p>Hearing aids and exams for fitting them.</p> </li> <li> <p>Routine foot care.</p> </li> </ul> <p>Of these coverage gaps, long-term care can be the most devastating because the costs for such care can add up so quickly. It is in part because of the cost of long-term care that Fidelity calculated the average cost of lifetime medical expenses for a 65-year-old couple retiring in 2017 to be $275,000. (See also: <a href="http://www.wisebread.com/how-to-make-sense-of-the-different-parts-of-medicare?ref=seealso" target="_blank">How to Make Sense of the Different Parts of Medicare</a>)</p> <h2>5. Your taxes will be lower in retirement</h2> <p>One of the few benefits of no longer drawing a paycheck is the fact that you don't have to see Uncle Sam take a cut from it. You may think that once you're retired, all your money is yours free and clear, and the taxman will finally leave you alone.</p> <p>It doesn't quite work that way.</p> <p>First, you are going to owe taxes on any money you take out from tax-deferred retirement accounts. Since retirees often have fewer federal deductions and dependents to claim, that means you could be paying a greater percentage of your income to taxes. And don't forget that once you reach age 70&frac12;, you will have to take <a href="http://www.wisebread.com/what-every-retirement-saver-should-know-about-required-minimum-distributions?ref=internal" target="_blank">required minimum distributions</a>, which means the size of your distribution (and therefore the size of the tax bite) isn't entirely up to you.</p> <p>In addition, depending on your retirement income, you may also owe taxes on your Social Security benefits. Altogether, it's good to remember that the taxman always cometh for you.</p> <h2>The truth will set you free</h2> <p>The myths about money in retirement are generally more pleasant than the reality. But as tough as it may be to swallow the truth about how much you need, how much you can withdraw, and how much the government plans to giveth and taketh away, it is far better to be clear-eyed and prepared.</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-myths-about-money-in-retirement&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Myths%2520About%2520Money%2520in%2520Retirement.jpg&amp;description=5%20Myths%20About%20Money%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/u5180/5%20Myths%20About%20Money%20in%20Retirement.jpg" alt="5 Myths About Money 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/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/5-myths-about-money-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-4"> <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-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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-face-these-7-scary-facts-about-retirement-saving">How to Face These 7 Scary Facts About Retirement Saving</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-common-medicare-myths-debunked">5 Common Medicare Myths, Debunked</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-overcome-these-4-common-retirement-fears">How to Overcome These 4 Common Retirement Fears</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/heres-how-you-should-budget-your-social-security-checks">Here&#039;s How You Should Budget Your Social Security Checks</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement 4 percent rule expenses health care medicare myths social security taxes withdrawal rate Fri, 11 May 2018 08:00:21 +0000 Emily Guy Birken 2133918 at http://www.wisebread.com 7 Self-Care Rituals for the Newly Retired http://www.wisebread.com/7-self-care-rituals-for-the-newly-retired <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-self-care-rituals-for-the-newly-retired" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/practising_mindfulness_through_yoga_and_meditation.jpg" alt="Practicing mindfulness through yoga and meditation" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You've done it. You're out of the rat race and you don't have to answer to the man anymore. In fact, you don't even have to get out of bed in the morning, unless you want to. While retirement can be a great thing, you should make the most of it and have a plan. Otherwise, you can end up feeling aimless, not sure what to do with yourself, or how to achieve your goals.</p> <p>One of the best ways to invest your retirement is in taking care of yourself. After all, your first priority has probably been work for the last handful of decades, and time spent in between was most likely on family and other responsibilities. Now that you're retired, here are some things you can do to prioritize self-care in your Golden Years. (See also: <a href="http://www.wisebread.com/7-retirement-splurges-worth-every-penny?ref=seealso" target="_blank">7 Retirement Splurges Worth Every Penny</a>)</p> <h2>1. Make time for cardio</h2> <p>Even if exercise hasn't been a huge part of your life, it's time to start thinking about it now. You don't have to become the Hulk, either. Even 30 minutes a day walking on a treadmill while you watch your favorite show will be good for your heart and will give you the endorphins you need to feel good about yourself and where you're at in life. (See also: <a href="http://www.wisebread.com/these-at-home-exercises-will-give-you-a-gym-quality-workout-for-free?ref=seealso" target="_blank">These At-Home Exercises Will Give You a Gym-Quality Workout for Free</a>)</p> <h2>2. Prioritize relationships</h2> <p>When you're working all the time, it can be hard to make relationships a priority. If your time isn't your own, it's easy to intend to see your friends and family, but then come up with reasons why you can't get together. In fact, due to this vicious cycle, you can end up feeling lonely and frustrated by the time you retire.</p> <p>Once you've retired, though, you can use that time to see your family and friends, even if you feel like you've neglected these relationships in the past. It's never too late to connect and to build the close bonds you've always wanted.</p> <h2>3. Schedule medical appointments</h2> <p>If you don't have any pressing health needs, it's easy to forget to take care of your body. However, regular physical checkups and testing can help you live longer and better, especially as you get older. If you've been putting off your physical for years, it's time to get one. Along similar lines, it's time to schedule your dental cleanings, eye exams, and any annual exams that you're supposed to have. Sure, these appointments aren't always fun, but taking care of them means taking care of you, and now is the perfect time to do that.</p> <h2>4. Read more books</h2> <p>Have you been trying to read more, but you haven't gotten around to it for years because you've been working full-time? Well, it's time to get back to it. Find those books you've been eyeing at the library or buy them in whatever form works best for you (paperback, hardback, ebook, large print, etc.) and schedule some time to dive in. (See also: <a href="http://www.wisebread.com/5-easiest-ways-to-score-free-ebooks?ref=seealso" target="_blank">5 Easiest Ways to Score Free eBooks</a>)</p> <h2>5. Keep your brain active</h2> <p>The more you keep your brain active, the better it will work for you as you get older. Get a puzzle book, take up Sudoku, or find word or logic puzzles online to solve. You can even learn a new language or go back and refresh your math skills. Use that brain to solve problems, or learn something new, and you may find that you're thinking clearer than you have in years. (See also: <a href="http://www.wisebread.com/25-hobbies-you-can-start-for-under-10?ref=seealso" target="_blank">25 Hobbies You Can Start for Under $10</a>)</p> <h2>6. Embrace relaxation</h2> <p>Who has the time to relax when you're working and caring for your home and your family? It always seemed like there just weren't enough hours in the day to take time for yourself. Once you're retired, though, you have more free time at your disposal. Maybe you need to sit in a spa once a day, take regular bubble baths, write in a journal, or take a yoga class. You don't even have to spend money in order to get your mind and body in a more relaxed state. Do what makes you happy and puts your mind at ease. (See also: <a href="http://www.wisebread.com/treat-yourself-with-these-7-free-self-care-routines?ref=seealso" target="_blank">Treat Yourself With These 7 Free Self-Care Routines</a>)</p> <h2>7. Practice meditation</h2> <p>By teaching yourself how and where to focus your attention, you learn how to decide what is and is not important to you. Even if you haven't done this before, it's a skill that can take you far. Spending a few minutes each day just breathing in and out can reduce your stress and center your mind. (See also: <a href="http://www.wisebread.com/6-meditation-alternatives-for-people-with-busy-minds?ref=seealso" target="_blank">6 Meditation Alternatives for People With Busy Minds</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-self-care-rituals-for-the-newly-retired&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Self-Care%2520Rituals%2520for%2520the%2520Newly%2520Retired.jpg&amp;description=7%20Self-Care%20Rituals%20for%20the%20Newly%20Retired"></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%20Self-Care%20Rituals%20for%20the%20Newly%20Retired.jpg" alt="7 Self-Care Rituals for the Newly Retired" 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-self-care-rituals-for-the-newly-retired">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/treat-yourself-with-these-7-free-self-care-routines">Treat Yourself With These 7 Free Self-Care Routines</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/11-easy-ways-to-fix-your-whole-life-this-summer">11 Easy Ways to Fix Your Whole Life This Summer</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-free-self-care-rituals-to-get-you-through-a-long-winter">6 Free Self-Care Rituals to Get You Through a Long Winter</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/14-reasons-to-celebrate-getting-older">14 Reasons to Celebrate Getting Older</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/14-smartphone-apps-that-make-self-care-a-snap">14 Smartphone Apps That Make Self-Care a Snap</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Health and Beauty Retirement healthy lifestyle newly retired retirement tips self-care self-care rituals self-care tips Thu, 10 May 2018 08:00:15 +0000 Sarah Winfrey 2138229 at http://www.wisebread.com Losing Your Nest Egg Could Kill You: Here's How to Prevent It http://www.wisebread.com/losing-your-nest-egg-could-kill-you-heres-how-to-prevent-it <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/losing-your-nest-egg-could-kill-you-heres-how-to-prevent-it" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_with_a_piggy_bank.jpg" alt="Man with a piggy bank" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When experiencing a financial setback, people often say, &quot;At least we still have our health.&quot;</p> <p>Disturbingly, a new study reveals that losing wealth can lead to losing health as well.</p> <p>A paper recently published in the Journal of the American Medical Association found that people over 50 who experienced a &quot;negative wealth shock,&quot; such as an investment portfolio that goes south or a business failure, had a higher risk of death from all causes than folks whose finances did better. In fact, those who lost three quarters of their net worth or more over a two-year period were 50 percent more likely to die during the study than people whose finances did better. In an editorial, a Harvard doctor compared the loss of wealth to a diagnosis of heart disease in terms of predicting an early demise.</p> <p>How is it that losing money could lead to losing your life? Further research is needed to determine how one thing leads to another, the paper's authors said. However, one perhaps unsurprising connection the study revealed was that people who lose a significant portion of their wealth are more likely to experience &quot;depressive symptoms.&quot; The authors also suggest that people who are short on money don't seek all the health care they need, because they worry they won't be able to afford it.</p> <p>Health care in retirement is likely to cost more than most of us realize, other research shows. You will probably spend most of your Social Security benefits on health care in the form of copays, supplemental insurance premiums, and prescription drugs.</p> <p>No one builds up a nest egg with the plan to lose 75 percent of it. Yet, this is exactly what happened to a startling 28 percent of subjects in the study. How can you avoid a potentially fatal late-life wealth shock?</p> <h2>Use target-date index funds</h2> <p>These funds, offered by Vanguard and other investment banks, offer a low-cost way to keep your assets at the appropriate level of risk for your age. You simply punch in the year you expect to retire, and you get the right mix of stocks, bonds, and other investment assets. As years pass, the fund managers will rebalance the assets to keep the level of risk appropriate. (See also: <a href="http://www.wisebread.com/start-planning-now-for-when-your-target-date-fund-ends?ref=seealso" target="_blank">Start Planning Now for When Your Target-Date Fund Ends</a>)</p> <h2>Meet with a financial planner to assess your situation</h2> <p>Some people think they have saved adequately for retirement or that their investments are age-appropriate, only to be in for an unpleasant shock down the road. If you haven't done so before, your 50th birthday is a great time to sit down with a planner, assess your retirement savings, and make a plan for protecting it against a negative wealth shock.</p> <p>Fee-only planners rather than commission-based advisers are great, because you want someone who will recommend the best solutions without any incentive to sell you products that pay them a commission. (See also: <a href="http://www.wisebread.com/3-reasons-to-be-picky-when-hiring-a-financial-planner?ref=seealso" target="_blank">3 Reasons to Be Picky When Hiring a Financial Planner</a>)</p> <h2>Consider long-term care insurance</h2> <p>A common way for older people to lose their wealth is an unexpected long illness or disability. Medicare will only pay for a limited amount of nursing home care. If you are worried that you will lose your nest egg to a lengthy nursing home stay for you or your spouse, it may be worth looking at <a href="http://www.wisebread.com/is-long-term-care-insurance-worth-it?ref=internal" target="_blank">long-term care insurance</a>.</p> <h2>Beware scams targeted at seniors</h2> <p>They often start with a phone call. Familiarize yourself with the most common scams targeted at retirees, such as Medicare scams, fake retirement investment plans, funeral scams, reverse mortgage scams, and the insidious call from a fake grandchild. (See also: <a href="http://www.wisebread.com/how-to-protect-elderly-loved-ones-from-financial-scams?ref=seealso" target="_blank">How to Protect Elderly Loved Ones From Financial Scams</a>)</p> <h2>Avoid risky investments</h2> <p>Collectibles, startup companies, and businesses you know little about are all generally outside of the recommended retirement savings plan. Inappropriate investments can be particularly tempting if a family member or other close friend wants you to invest. If you think an investment is really worth consideration, sit down with a planner who has experience in that specific type of investment before committing.</p> <h2>Make sure you have enough liability insurance</h2> <p>Another misfortune that could decimate your retirement savings is an accident that leads to a lawsuit. Check with your insurance agent to make sure you have adequate liability insurance. Agents often advise that you add an umbrella policy, which takes over after you hit the liability limit of your auto or homeowner's policy, at least equaling your net worth. A million-dollar umbrella policy costs about $200 a year. (See also: <a href="http://www.wisebread.com/beware-your-insurance-may-not-cover-these-8-losses?ref=seealso" target="_blank">Beware: Your Insurance May Not Cover These 8 Losses</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%2Flosing-your-nest-egg-could-kill-you-heres-how-to-prevent-it&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FLosing%2520Your%2520Nest%2520Egg%2520Could%2520Kill%2520You_%2520Here%2527s%2520How%2520to%2520Prevent%2520It.jpg&amp;description=Losing%20Your%20Nest%20Egg%20Could%20Kill%20You%3A%20Here's%20How%20to%20Prevent%20It"></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/Losing%20Your%20Nest%20Egg%20Could%20Kill%20You_%20Here%27s%20How%20to%20Prevent%20It.jpg" alt="Losing Your Nest Egg Could Kill You: Here's How to Prevent It" 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/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/losing-your-nest-egg-could-kill-you-heres-how-to-prevent-it">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-16"> <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-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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-avoid-these-3-investment-worries-that-will-derail-your-retirement">How to Avoid These 3 Investment Worries That Will Derail Your 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/should-you-treat-your-social-security-benefits-like-a-bond">Should You Treat Your Social Security Benefits Like a Bond?</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-youre-never-too-old-to-buy-stocks">7 Reasons You&#039;re Never Too Old to Buy Stocks</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-kinds-of-insurance-every-retiree-should-consider">5 Kinds of Insurance Every Retiree Should Consider</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement high mortality liability life span long-term care insurance loss of income risk scams target date funds umbrella insurance Mon, 07 May 2018 08:31:19 +0000 Carrie Kirby 2136124 at http://www.wisebread.com 9 Ways Work-At-Home Seniors Can Master Work-Life Balance http://www.wisebread.com/9-ways-work-at-home-seniors-can-master-work-life-balance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-ways-work-at-home-seniors-can-master-work-life-balance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mature_woman_working_on_computer_0.jpg" alt="Mature woman working on computer" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You're retired, but maybe you still want to keep a hand in your old business. Or maybe you love consulting, or you want some extra cash, or you don't like having too much idle time on your hands. No matter the reason, working from home can be a great way for retirees to earn an income without being subject to the daily commute and grind of a traditional 9-to-5.</p> <p>Remote work can be highly rewarding and even fun. Here are some ways to keep your work-life balance while working from home in retirement.</p> <h2>1. Look for a flexible schedule</h2> <p>One of the great benefits of retiring is being able to do what you want, when you want. Don't lose that completely by ending up with a rigid work schedule. Sure, you'll need to be there for your new employers or clients some of the time, but make sure you have the flexibility to take time off for the things that matter most to you.</p> <h2>2. Start small</h2> <p>It may be tempting to jump right into a new job. However, working from home is different from going to work at a company. If you've never done it before, it can be overwhelming at first to be self-directed and spend so much time alone.</p> <p>If you think you want to work from home, start by taking on a project or two, or working a few hours a week. If you like it and can still do all of the other things that you want to do with your retirement, you can look for a more permanent gig.</p> <h2>3. Make time for family</h2> <p>Many retirees make the jump into retirement at least in part so they can spend more time with their families. If this is you, ensure that your new job doesn't interrupt this time. Even if you work from home, it's important to put child care obligations or family days on the calendar early, and make sure your new employer knows you won't be available at those times. You can keep your family first even if you're going back to work. (See also: <a href="http://www.wisebread.com/9-signs-your-work-life-balance-is-off?ref=seealso" target="_blank">9 Signs Your Work-Life Balance Is Off</a>)</p> <h2>4. Unplug yourself</h2> <p>Whether you're old or young, it's easy to get sucked into the internet. You may find yourself surfing Facebook for pictures of your grandchildren, looking up decorating ideas on Pinterest, or getting lost in a sea of YouTube videos.</p> <p>Time spent online is often little more than a distraction. Ultimately, it isn't very satisfying, and it often takes you away from the things you really want or need to be doing. Limit your time online, especially when you're away from work, so you can really engage with the people and the experiences around you. If you're glued to your desk all day, you probably won't be enjoying your retirement to its fullest.</p> <h2>5. Plan vacations ahead of time</h2> <p>Some retirees enter retirement with the intention to travel. You can still do this while working from home. Make sure you get your vacations on the calendar early so your employer knows when you won't be available. This helps ensure that you'll have the free time you need to fully embrace your travel, even if you have to get right back to work when you get home.</p> <h2>6. Exercise</h2> <p>Exercise makes us feel better. It gets the blood flowing and helps boost our mood. Both of these will go far toward helping you feel like your life is in balance. When you make time for exercise, you're making time for yourself. You're also prioritizing your health, as exercise can help you live longer and avoid or minimize many of the physical problems that plague people in retirement. (See also: <a href="http://www.wisebread.com/7-smart-ways-to-invest-in-your-health?ref=seealso" target="_blank">7 Smart Ways to Invest in Your Health</a>)</p> <h2>7. Meditate</h2> <p>Make time to meditate. Clear your head. If you don't like meditation, get a journal and spend a few minutes every day writing down your thoughts. Giving yourself this space helps you remember what's important to you, and that your stated priorities are actually prioritized in your real life. It also gives you the mental clarity to fully engage with work when you're working, and with other people and things when you're outside of work. (See also: <a href="http://www.wisebread.com/6-meditation-alternatives-for-people-with-busy-minds?ref=seealso" target="_blank">6 Meditation Alternatives for People With Busy Minds</a>)</p> <h2>8. Walk every hour</h2> <p>When you're on the clock, make sure you stay moving. Get up every hour and take a short walk, even if it's just down the hall and back. This not only fights the dangers of a sedentary lifestyle, but it also helps you stay focused.</p> <h2>9. Schedule time to give back</h2> <p>If one of your retirement goals was to give back to the community, rest assured that you can still do that while you're working from home. Make volunteering a priority by scheduling it in your calendar, getting the time off or clearing your client list for the day, and helping out however and wherever you like. Giving back will offer a sense of fulfillment, and it will also remind you of the things that are truly important. (See also: <a href="http://www.wisebread.com/9-unexpected-benefits-of-volunteering%20?ref=seealso" target="_blank">9 Unexpected Benefits of Volunteering</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%2F9-ways-work-at-home-seniors-can-master-work-life-balance&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Ways%2520Work-At-Home%2520Seniors%2520Can%2520Master%2520Work-Life%2520Balance.jpg&amp;description=9%20Ways%20Work-At-Home%20Seniors%20Can%20Master%20Work-Life%20Balance"></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%20Ways%20Work-At-Home%20Seniors%20Can%20Master%20Work-Life%20Balance.jpg" alt="9 Ways Work-At-Home Seniors Can Master Work-Life Balance" 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/9-ways-work-at-home-seniors-can-master-work-life-balance">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/how-to-find-your-new-identity-after-retirement">How to Find Your New Identity After Retirement</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-retirement-splurges-that-are-worth-every-penny">7 Retirement Splurges That Are Worth Every Penny</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-live-a-retired-life-before-retirement">How to Live a Retired Life Before Retirement</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-ways-to-keep-anxiety-from-ruining-your-budget">5 Ways to Keep Anxiety From Ruining Your Budget</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/11-simple-rules-of-excellent-houseguest-etiquette">11 Simple Rules of Excellent Houseguest Etiquette</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career Building Lifestyle Retirement down time exercise family meditating telecommuting volunteering work-life balance working from home Fri, 04 May 2018 09:00:08 +0000 Sarah Winfrey 2131865 at http://www.wisebread.com 7 Retirement Splurges That Are Worth Every Penny http://www.wisebread.com/7-retirement-splurges-that-are-worth-every-penny <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-retirement-splurges-that-are-worth-every-penny" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mature_woman_holding_dog_at_home.jpg" alt="Mature woman holding dog at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Your golden years are finally here, and while you don't want to blow through your nest egg too quickly, there is still a little room for splurges here and there, especially if they double as self-care. Here are seven splurges in retirement you definitely won't regret.</p> <h2>1. Adopting a pet</h2> <p>Dogs offer many benefits to retirement-aged individuals. Not only do they give you companionship, but they also give you a reason to get up and exercise more. There are also several studies that show dog ownership can reduce the risk of heart attack and lower stress.</p> <p>Not into dogs? That's okay! Adopting a cat can provide just as many benefits and can be less work to take care of. (See also: <a href="http://www.wisebread.com/the-8-best-pets-for-frugal-animal-lovers?ref=seealso" target="_blank">The 8 Best Pets for Frugal Animal Lovers</a>.)</p> <h2>2. Achieving your goals</h2> <p>Whether you sit down and write an official bucket list or have one or two goals you wish to achieve, now is the perfect time to check those boxes. Maybe you want to eat a $100-steak, or spend a week in Europe. Whatever it is, you can make it happen. (See also: <a href="http://www.wisebread.com/6-european-destinations-finally-cheap-enough-to-visit?ref=seealso" target="_blank">6 European Destinations Finally Cheap Enough to Visit</a>)</p> <p>Financially, you might not be able to afford accomplishing&nbsp;<em>everything </em>on your list, and you definitely don't want to go into debt in retirement. However, by using savvy saving techniques, you can find discounts on any restaurant, travel destination, or adventure.</p> <h2>3. Spending time with family</h2> <p>If you don't feel like you see your family members enough, invest in seeing them more regularly. Spend a week with them and offer to watch the grandkids. Or plan times for your family to come visit you. Traveling to visit loved ones can add up quickly, so it's important to find free or cheap activities when you're together, and remember that quality time doesn't have to cost a thing. (See also: <a href="http://www.wisebread.com/47-cheap-fun-things-to-do-this-weekend?ref=seealso" target="_blank">47 Cheap, Fun Things to Do This Weekend</a>)</p> <h2>4. Trying new hobbies</h2> <p>Retirement is a dream come true at first since you finally get to relax. However, it's easy to grow bored of the same routine every day, and you might find yourself missing the fast-paced work day.</p> <p>One way to avoid boredom is to keep yourself busy with new hobbies. What have you always wanted to learn? Find classes or lessons in skills that you want to improve, whether it's a Spanish class, cooking class, or piano class. If you enjoy gardening or sewing, find ways to make it more sociable through local sewing groups. If you consider yourself skilled at one hobby, perhaps photography or auto mechanics, volunteer your time teaching others. When we engage in the activities that we love and then share them with others who enjoy them, we feel more satisfied. (See also: <a href="http://www.wisebread.com/10-fun-hobbies-you-can-take-up-for-free?ref=seealso" target="_blank">10 Fun Hobbies You Can Take Up for Free</a>)</p> <h2>5. Healthy foods</h2> <p>Now is not the time to settle for eating processed foods. Investing in healthy, organic foods will always be worth the cost. And if you shop smart &mdash; seek out seasonal produce and use grocery coupon apps while shopping &mdash; it doesn't even have to cost you more. You want to postpone the aches and pains and health issues that come naturally with aging as long as possible, and eating healthier is one way to do so. (See also: <a href="http://www.wisebread.com/25-low-cost-foods-packed-with-nutrition?ref=seealso" target="_blank">25 Low-Cost Foods Packed With Nutrition</a>)</p> <h2>6. Personal fitness</h2> <p>Don't wait for back pain to flare up before treating yourself to massages, chiropractic care, acupressure, and reflexology. Sign up for yoga classes or join your local walking group to stay active and fit. You've worked your body hard your whole adult life, and now it's time to give it some TLC. You deserve it now.</p> <h2>7. Home upgrades</h2> <p>Now that you aren't running off to work every day, expect to spend a lot more time at home. What would make your home easier to live in now and in the future? Consider splurging on a remodel to make your house more appealing to you, as well as to benefit you in the future. Even small home upgrades can add a lot to your current comfort and your listing later, should you decide to sell your house. (See also: <a href="http://www.wisebread.com/9-easy-home-improvements-that-add-thousands-to-your-listing?ref=seealso" target="_blank">9 Easy Home Improvements That Add Thousands to Your Listing</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-retirement-splurges-that-are-worth-every-penny&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Retirement%2520Splurges%2520That%2520Are%2520Worth%2520Every%2520Penny.jpg&amp;description=7%20Retirement%20Splurges%20That%20Are%20Worth%20Every%20Penny"></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%20Retirement%20Splurges%20That%20Are%20Worth%20Every%20Penny_0.jpg" alt="7 Retirement Splurges That Are Worth Every Penny" 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/ashley-eneriz">Ashley Eneriz</a> of <a href="http://www.wisebread.com/7-retirement-splurges-that-are-worth-every-penny">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/how-to-find-your-new-identity-after-retirement">How to Find Your New Identity After Retirement</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-to-get-the-most-out-of-your-overseas-retirement">How to Get the Most Out of Your Overseas 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/9-ways-work-at-home-seniors-can-master-work-life-balance">9 Ways Work-At-Home Seniors Can Master Work-Life Balance</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/4-vacation-destinations-where-eating-healthy-is-surprisingly-cheap">4 Vacation Destinations Where Eating Healthy Is Surprisingly Cheap</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-money-moves-to-make-before-taking-a-mini-retirement">5 Money Moves to Make Before Taking a Mini Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Lifestyle Retirement family healthy eating hobbies pets retirement tips saving money splurges travel tips Thu, 03 May 2018 08:00:18 +0000 Ashley Eneriz 2136122 at http://www.wisebread.com Here's What It Means to Be Vested in Your 401(k) http://www.wisebread.com/heres-what-it-means-to-be-vested-in-your-401k <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/heres-what-it-means-to-be-vested-in-your-401k" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/retirement_savings_golden_nest_egg_in_businessman_hand.jpg" alt="Retirement savings golden nest egg in businessman hand" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>One of the biggest advantages to a 401(k) plan is having an employer that offers a match on your contributions. This is fairly common practice; in a review of 4.4 million retirement plan participants, Vanguard found that 94 percent of plans offered employer contributions.</p> <p>Knowing that your employer is contributing or matching your contributions to your workplace retirement plan is awesome (who doesn't like free money?). Still, it's important to be aware that sometimes part of those contributions aren't fully yours until some conditions are met. That's called vesting.</p> <h2>What's vesting?</h2> <p>Let's get one thing clear: All of the money that <em>you</em> personally contribute to your retirement account always becomes immediately yours. When you have full ownership of funds in your 401(k), it means that you're fully vested (or 100 percent vested) on those funds.</p> <p>On the other hand, employer contributions and matching contributions may be subject to some restrictions before they can become fully vested. Nearly half all employer-sponsored 401(k) holders are in plans with some type of vesting requirement for employer and matching contributions. All vesting schedules can be categorized as <em>cliff </em>or <em>graded </em>vesting. (See also: <a href="http://www.wisebread.com/7-things-you-should-know-about-your-401k-match?ref=seealso" target="_blank">7 Things You Should Know About Your 401(k) Match</a>)</p> <h3>Graded vesting</h3> <p>Graded vesting is the most common way for employers to delay ownership of employer or matching contributions. Through graded vesting, you gradually gain ownership of employer or matching contributions over time. Around 30 percent of 401(k) plans with employer-matching contributions use a five- or six-year graded vesting schedule. For example, an employer could grant you 20 percent ownership over a five-year period. Assuming a $1,000 matching contribution, you would be fully vested to $200 (plus applicable capital gains) at the end of every year over a five-year period.</p> <p>However, there are shorter (and longer!) graded vesting schedules. For example, an estimated 5 percent and 3 percent of 401(k) holders are in a plan with a three- and four-year graded vesting rule for employer matching contributions, respectively.</p> <h3>Cliff vesting</h3> <p>Unlike graded vesting, cliff vesting grants you full ownership of employer contributions to your account right away. The catch is that you have to wait a certain amount of time to gain that right. In 2016, 12 percent, 5 percent, and 8 percent of 401(k) plans followed a three-year, two-year and one-year cliff vesting schedule for employer contributions, respectively.</p> <h2>5 FAQs about vesting</h2> <p>Now that you know what it means to be vested in your 401(k), let's address some frequently asked questions about vesting.</p> <h3>1. Why do companies use vesting in 401(k) plans?</h3> <p>Workplace plans offer matching 401(k) contributions to attract top talent. In order to retain that talent, employers can use vesting to discourage leaving the company too soon. For example, with a three-year cliff vesting schedule, a worker would have to work that many years before becoming fully vested in all employer contributions from their first year of employment.</p> <p>However, more and more plans are opting to provide immediate vesting: 45 percent of 401(k) plans provided immediate vesting of employer contributions in 2016. (See also: <a href="http://www.wisebread.com/8-critical-401k-questions-you-need-to-ask-your-employer?ref=seealso" target="_blank">8 Critical 401(k) Questions You Need to Ask Your Employer</a>)</p> <h3>2. What happens with nonvested funds at the time of a rollover?</h3> <p>Once you leave your employer, you'll lose nonvested funds in your 401(k). This is why knowing the applicable vesting schedule is essential to know how much of your 401(k) you'd keep if you were to separate from your employer at any point in time.</p> <p>When you separate from your employer, nonvested funds in your 401(k) return to your employer. So, keep an eye on when employer contributions become fully vested to appropriately time turning in your two-week notice. (See also: <a href="http://www.wisebread.com/a-simple-guide-to-rolling-over-all-of-your-401ks-and-iras?ref=seealso" target="_blank">A Simple Guide to Rolling Over All of Your 401(k)s and IRAs</a>)</p> <h3>3. What happens to nonvested funds when I retire?</h3> <p>There is some good news and some bad news. The good news is that according to the IRS, it is required that employees are 100 percent vested of all 401(k) employer contributions by the time they attain normal retirement age. The bad news is that the normal retirement age is determined by the plan administrator.</p> <h3>4. What happens to nonvested funds if my company disappears?</h3> <p>When a company goes kaput, it's just a matter of time until its 401(k) goes away as well. When a company terminates its 401(k) plan, it must offer 100 percent vesting of all funds, according to the IRS.</p> <h3>5. If vesting exists, why should I bother trying to get an employer match?</h3> <p>Getting those employer contributions is absolutely worth it because they don't count toward your annual contribution limit ($18,500 in 2018). You can't be 100 percent sure when you'll leave an employer, but you'll surely be happy if you can leave with a couple hundred or thousand dollars extra in your 401(k). Regardless of vesting rules, this is why pursuing a job that offers matching contributions is worth it.</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%2Fheres-what-it-means-to-be-vested-in-your-401k&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHere%2527s%2520What%2520It%2520Means%2520to%2520Be%2520Vested%2520in%2520Your%2520401%2528k%2529.jpg&amp;description=Here's%20What%20It%20Means%20to%20Be%20Vested%20in%20Your%20401(k)"></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/Here%27s%20What%20It%20Means%20to%20Be%20Vested%20in%20Your%20401%28k%29.jpg" alt="Here's What It Means to Be Vested in Your 401(k)" 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/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/heres-what-it-means-to-be-vested-in-your-401k">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/how-job-hoppers-can-keep-up-with-their-retirement-savings">How Job-Hoppers Can Keep Up With Their Retirement Savings</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-things-you-should-know-about-your-401k-match">7 Things You Should Know About Your 401(k) Match</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/which-of-these-9-retirement-accounts-is-right-for-you">Which of These 9 Retirement Accounts Is Right for 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/left-a-job-do-a-rollover">Left a job? Do a rollover.</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/new-job-dont-make-these-7-mistakes-with-your-benefits">New Job? Don&#039;t Make These 7 Mistakes With Your Benefits</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement 401(k) cliff company match employer contributions employer sponsored retirement plans employers graded rollovers vesting workplace retirement plans Wed, 02 May 2018 08:30:10 +0000 Damian Davila 2133904 at http://www.wisebread.com Best Money Tips: How to Take a Mini-Retirement http://www.wisebread.com/best-money-tips-how-to-take-a-mini-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-how-to-take-a-mini-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_bike_beach_639868854.jpg" alt="Woman taking a mini-retirement" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Welcome to Wise Bread's <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found articles on how to take a mini-retirement, thrift store treasures you shouldn&rsquo;t pass up, and reasons why you shouldn&rsquo;t focus on monthly payments.</p> <h2>Top 5 Articles</h2> <p><a href="https://www.moneyunder30.com/how-to-take-a-mini-retirement-and-why-you-should">How To Take A Mini-Retirement &mdash; And Why You Should</a> &mdash; A mini-retirement can be just what you need to redirect your life plan&hellip;if you do it right. Learn what you need to do to prepare for a break from the workforce. [Money Under 30]</p> <p><a href="https://www.moneytalksnews.com/slideshows/hunt-down-and-cash-in-on-these-21-thrift-store-treasures/#at_pco=cfd-1.0">Hunt Down and Cash In on These 21 Thrift Store Treasures</a> &mdash; Be on the lookout for these surprising thrift store gems! [Money Talks News]</p> <p><a href="https://www.frugalrules.com/monthly-payments-are-bad/">3 Key Reasons You Shouldn&rsquo;t Focus on Monthly Payments</a> &mdash; Monthly payments can make an expensive item seem more affordable, but there are a few important things you should consider before you commit to a payment plan. [Frugal Rules]</p> <p><a href="https://orgjunkie.com/2018/04/paper-organization-keep-toss.html">3 Steps to Paper Organization: What to Keep &amp; What to Toss</a> &mdash; Take charge of your paper clutter and follow these steps to set up a successful paper organization system. [Organizing Junkie]</p> <p><a href="https://organized31.com/start-bullet-journal-3-types/">How to Start a Bullet Journal &ndash; 3 Types</a> &mdash; Bullet journaling can help you organize your thoughts, your goals, your everyday life. While the simplest journal is a plain notebook, you can also upgrade to dedicated or customizable bullet journals that are meant to last. [Organized 31]</p> <h2>Other Essential Reading</h2> <p><a href="https://www.csmonitor.com/Business/2018/0425/To-withstand-tariffs-farmers-rebrand-pecans-to-US-consumers">To withstand tariffs, farmers rebrand pecans to US consumers</a> &mdash; China has been the biggest consumer of pecans in the past 10 years, but with the possibility of Chinese tariffs on a number of agricultural products looming, farmers are rethinking how to market pecans in the US. [The Christian Science Monitor]</p> <p><a href="https://www.popsugar.com/smart-living/How-Naturally-Whiten-Towels-34784291">Naturally Whiten and Brighten Grubby Towels</a> &mdash; This method uses all-natural ingredients to refresh your towels and makes them softer and more absorbent. [PopSugar Smart Living]</p> <p><a href="http://www.punchdebtintheface.com/5-common-insurance-mistakes-you-need-to-avoid-with-your-new-business/">5 Common Insurance Mistakes You Need to Avoid With Your New Business</a> &mdash; These costly insurance mistakes can dramatically affect the future of your new business. [Punch Debt]</p> <p><a href="https://www.karenkingston.com/blog/social-crutches/">10 popular social crutches, and how different life could be without them</a> &mdash; We often hide behind one (or more) of these crutches to make ourselves more comfortable during social interactions, or to help us avoid these interactions altogether. [Karen Kingston]</p> <p><a href="https://apersonalorganizer.com/9-tips-to-help-you-stay-organized-every-day/">9 Tips to Help You Stay Organized Every Day</a> &mdash; Make it a habit to check your schedule and to-do list at the beginning of each day. This is the best time to prioritize your tasks and add items that weren't on the list. [A Personal Organizer]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/amy-lu">Amy Lu</a> of <a href="http://www.wisebread.com/best-money-tips-how-to-take-a-mini-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-11"> <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/what-you-need-to-semi-retire-abroad-right-now">What You Need to Semi-Retire Abroad Right Now</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/3-unexpected-hurdles-you-might-encounter-when-applying-for-social-security-benefits">3 Unexpected Hurdles You Might Encounter When Applying for Social Security Benefits</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/should-you-treat-your-social-security-benefits-like-a-bond">Should You Treat Your Social Security Benefits Like a Bond?</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/4-ways-to-find-income-while-waiting-for-full-retirement-age">4 Ways to Find Income While Waiting for Full Retirement Age</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-myths-about-money-in-retirement">5 Myths About Money in Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement best money tips mini retirement Mon, 30 Apr 2018 08:30:10 +0000 Amy Lu 2136928 at http://www.wisebread.com 4 Ways to Find Income While Waiting for Full Retirement Age http://www.wisebread.com/4-ways-to-find-income-while-waiting-for-full-retirement-age <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-ways-to-find-income-while-waiting-for-full-retirement-age" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mature_woman_working_on_computer.jpg" alt="Mature woman working on computer" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Every single retirement expert seems to agree on one thing: You should wait until at least your full retirement age (FRA) before taking your Social Security retirement benefits. The reason for this consensus is the fact that taking retirement benefits <em>before </em>reaching that all-important FRA will result in permanently reduced benefits &mdash; which could be a serious problem as you get older.</p> <p>But what do you do if you can't afford to wait until your FRA? Those same retirement experts may wag their fingers at you for taking early benefits, but are they offering solutions for how to bridge the financial gap until you have reached your FRA?</p> <p>Thankfully, there are legitimate ways to bring in income while waiting to reach your full retirement age &mdash; and none of them require you to pull a Walter White. Here are four options for bringing in money while waiting for that magical moment known as FRA.</p> <h2>Tap your equity with a reverse mortgage</h2> <p>With a reverse mortgage, any homeowner over the age of 62 who owns their home free and clear (or has significant equity in the home) may access the equity in their home, either in a lump sum or in monthly installments, while still living on the property.</p> <p>If all you know about reverse mortgages comes from the attractive seniors on daytime commercials, you might assume that this is a great option with no downsides. However, reverse mortgages do come at a cost, and it's important for homeowners to understand what they are agreeing to before they sign on the dotted line.</p> <p>To start, reverse mortgages, just like their traditional counterparts, come with closing costs. In particular, you can expect to pay an origination fee of approximately 2 percent of the home's value, an upfront mortgage insurance premium, and traditional closing costs. In addition, during the life of the loan, you can expect to pay an annual mortgage insurance premium and a monthly servicing charge.</p> <p>You should also remember that your reverse mortgage loan can come due for any of the following reasons:</p> <ul> <li> <p>If you sell the house.</p> </li> <li> <p>If you pass away.</p> </li> <li> <p>If you can no longer consider the home a primary residence. In particular, if you have to spend more than 12 months in a nursing home, your house will no longer be considered your primary residence.</p> </li> <li> <p>If you don't pay your property taxes, don't have adequate homeowners' insurance, or if you don't maintain your home properly.</p> </li> </ul> <p>Reverse mortgages can be a good option for seniors who need to bridge the gap until reaching full retirement age, but they are certainly not a cure-all solution. If there's any possibility that you can't keep up with maintenance (including paying your taxes and insurance bill), that you might need some sort of long-term, off-site care, or that your kids are counting on inheriting the house from you when you pass away, this is not a good option for you. (See also: <a href="http://www.wisebread.com/5-downsides-of-a-reverse-mortgage?ref=seealso" target="_blank">5 Downsides of a Reverse Mortgage</a>)</p> <h2>Rent out your property</h2> <p>You probably don't have a spare house available, but that doesn't mean you can't make some money by renting out your space or even the things you own. To start, if you live in an area that draws tourists, renting out a spare room (or even the entire house) on Airbnb can be an excellent way to bring in extra cash. If you rent out your entire home, you could house or pet sit while your guests are in your home &mdash; and potentially make money on both ends. (See also: <a href="http://www.wisebread.com/5-easy-ways-to-make-good-money-from-airbnb?ref=seealso" target="_blank">5 Easy Ways to Make Good Money From Airbnb</a>)</p> <p>Of course, not all rentals are about a place to hang your hat. Don't use your car every day? Rent it out with a service like <a href="https://www.getaround.com/" target="_blank">Getaround</a> or <a href="https://turo.com/" target="_blank">Turo</a>. Have a two-car garage and only one vehicle? Rent out that extra parking space with a service like <a href="https://www.parkingpanda.com/" target="_blank">Parking Panda</a> or <a href="http://www.parkeasier.com/" target="_blank">Spot</a>. Have power tools or sporting equipment gathering dust? Rent it all out with a service like <a href="https://www.loanables.com/" target="_blank">Loanables</a> or <a href="http://rentnotbuy.com/" target="_blank">RentNotBuy</a>.</p> <h2>Embrace the side hustle</h2> <p>No one wants to hear that they have to work longer in retirement, but side jobs ain't what they used to be. These days, you can find any number of rewarding gigs that can help make ends meet &mdash; and fit in with the lifestyle you want in retirement.</p> <p>For instance, finding a way to make money off a hobby you're already doing can be a good way to bring in extra income without feeling like you're still stuck in the daily grind. Avid gardeners could become garden consultants for neighbors with black thumbs. Animal lovers could offer daily dog-walking services. Crafters could make their wares for sale, or offer classes on how to create their beautiful designs.</p> <p>If you're not interested in monetizing a hobby, think about what sorts of things people turn to you for. If you have an impeccable eye for fashion, offer to help people look their best. If you know how to get the best deal on a used car, create a consulting service for buying cars. The sky is the limit in terms of creating a side hustle that will fit with your preferences, abilities, and schedule. (See also: <a href="http://www.wisebread.com/9-easy-ways-retirees-can-earn-extra-income?ref=seealso" target="_blank">9 Easy Ways Retirees Can Earn Extra Income</a>)</p> <h2>Sell your stuff</h2> <p>If you have the time to post your items on Craigslist or eBay, this can be a great way to both downsize your stuff to a more manageable (and retirement-ready) amount while making some money at the same time. As a bonus, a lot of the stuff that was new when you were in college is considered vintage these days &mdash; which means you might get some good money for the stuff you'd otherwise just give away. (See also: <a href="http://www.wisebread.com/5-things-you-can-resell-on-ebay-that-make-the-most-money?ref=seealso" target="_blank">5 Things You Can Resell on eBay That Make the Most Money</a>)</p> <h2>Making it until FRA</h2> <p>Though it can seem like the wait to reach full retirement age is interminable when you could use the Social Security retirement benefits each month, you will be glad you waited. Finding a way to bring in other income while you wait for your FRA may not be the retirement you dreamed of, but you'll feel good that you ensured higher monthly benefits for 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%2F4-ways-to-find-income-while-waiting-for-full-retirement-age&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Ways%2520to%2520Find%2520Income%2520While%2520Waiting%2520for%2520Full%2520Retirement%2520Age.jpg&amp;description=4%20Ways%20to%20Find%20Income%20While%20Waiting%20for%20Full%20Retirement%20Age"></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%20Ways%20to%20Find%20Income%20While%20Waiting%20for%20Full%20Retirement%20Age.jpg" alt="4 Ways to Find Income While Waiting for Full Retirement Age" 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/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/4-ways-to-find-income-while-waiting-for-full-retirement-age">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/9-creative-ways-to-boost-your-retirement-savings">9 Creative Ways to Boost Your Retirement Savings</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-ways-to-boost-your-social-security-payout-before-retirement">6 Smart Ways to Boost Your Social Security Payout Before 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/17-ways-your-house-can-earn-a-paycheck">17 Ways Your House Can Earn a Paycheck</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-questions-to-ask-before-you-start-claiming-your-social-security-benefits">5 Questions to Ask Before You Start Claiming Your Social Security Benefits</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/3-reasons-to-claim-social-security-before-your-retirement-age">3 Reasons to Claim Social Security Before Your Retirement Age</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income Retirement AirBnb benefits downsizing eBay full retirement age hobbies renting reverse mortgages selling your stuff side gigs social security Thu, 26 Apr 2018 08:30:16 +0000 Emily Guy Birken 2131425 at http://www.wisebread.com 9 Creative Ways to Boost Your Retirement Savings http://www.wisebread.com/9-creative-ways-to-boost-your-retirement-savings <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-creative-ways-to-boost-your-retirement-savings" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/happy_girl_is_taking_pictures_with_her_mobile_phone.jpg" alt="Happy girl is taking pictures with her mobile phone" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Everyone knows how important it is to save for retirement. However, actually setting aside money for your future can be challenging. When you're short on cash and have other demands on your budget, there might be little to nothing left to put toward your nest egg. How are you supposed to save for your future when you're completely strapped in the present?</p> <p>If you don't make enough money right now to set aside, there are still ways to grow your retirement savings. You just have to think outside the box.</p> <h2>1. Use your tax refund</h2> <p>Many people daydream about how they want to spend their tax refund, which is often the biggest windfall they'll see all year. In fact, last year the average tax refund was $2,763, according to the IRS.</p> <p>If you're getting a tax refund this year, put it to work. Rather than spending your refund on electronics or a vacation, consider depositing that money straight into your retirement fund. With the power of compound interest, that refund could grow by the thousands by the time you retire.</p> <h2>2. Deposit your credit card rewards</h2> <p>If you have a <a href="http://www.wisebread.com/5-best-cash-back-credit-cards" target="_blank">credit card that offers cash back</a>, that cash can be a regular source of extra money for your retirement fund. If you already use your credit card for routine purchases like utilities, gas, and groceries, this is easy money. Just make sure you are paying off your credit card balance in full every month.</p> <h2>3. Use cash back apps</h2> <p>If you don't have a cash back credit card, you can still earn money for doing the shopping you were going to do anyway. Apps like <a href="https://ibotta.com/r/jcsgjbv" target="_blank">Ibotta</a> or SavingStar let you earn cash back on grocery purchases, while sites like <a href="http://www.ebates.com/rf.do?referrerid=vIhagUaAxdMIsu435wELZg%3D%3D&amp;eeid=26471" target="_blank">eBates</a> offer a percentage back on many online purchases. You'll earn a percentage of your purchase as cash, and a check will be mailed to you &mdash; which you can toss straight into your retirement account. It's a low-effort way to earn extra money going about your normal routine. (See also: <a href="http://www.wisebread.com/8-apps-that-actually-pay-you-to-shop?ref=seealso" target="_blank">7 Apps That Actually Pay You to Shop</a>)</p> <h2>4. Launch a side hustle</h2> <p>If you have some extra time, you can earn money in the evenings or on weekends by <a href="http://www.wisebread.com/14-best-side-jobs-for-fast-cash" target="_blank">launching a side hustle for fast cash</a>. From walking dogs to making deliveries, there are hundreds of side gigs you can do in just a few hours a week. That extra income can go a long way to funding your retirement.</p> <h2>5. Sell your clutter</h2> <p>Take a look around at all of the electronics, textbooks, toys, and more that you never use. You may have as much as a few thousand dollars' worth of items collecting dust in your home. That clutter can be eliminated while netting you some money for your retirement. Sell items on sites like eBay, LetGo, and Bookscouter to get cash for your stuff. (See also: <a href="http://www.wisebread.com/5-things-in-your-garage-that-have-serious-re-sale-value?ref=seealso" target="_blank">5 Things in Your Garage That Have Serious Re-Sale Value</a>)</p> <h2>6. Rent out extra space</h2> <p>If you have an extra bedroom, you can rent it out on sites like Airbnb or VRBO. Depending on your location and the size of your space, you could charge hundreds per night. However, you don't even need an extra room to make money. You can rent out a spare closet or storage space in the garage on Spacer, or rent out your parking spot on SpotHero. (See also: <a href="http://www.wisebread.com/5-easy-ways-to-make-good-money-from-airbnb?ref=seealso" target="_blank">5 Easy Ways to Make Good Money From Airbnb</a>)</p> <h2>7. Sell photos online</h2> <p>If you like photography, you can earn passive income to put toward your retirement savings by selling your photos. You can try your hand at selling stock photography on sites like iStock or Shutterstock, or you could sell your artwork in an online portfolio or on arts and craft sites like Etsy. You could also try selling smartphone photos on Foap, which is an app that connects brands with photographers looking to sell their images. (See also: <a href="http://www.wisebread.com/earn-extra-income-with-your-smartphone-camera?ref=seealso" target="_blank">Earn Extra Income With Your Smartphone Camera</a>)</p> <h2>8. Let strangers drive your car</h2> <p>If you don't drive your car every day, your vehicle can become a lucrative source of income. You can rent it out to tourists or business travelers on Turo and set your own daily rate. According to the company, you can make nearly $5,800 a year if your car's market value is $20,000 and you rent it out for 12 days per month. That alone could get you to the contribution limit on an IRA.</p> <h2>9. Trade in clothes for cash</h2> <p>If you have clothes, handbags, or shoes that you don't wear anymore, stop letting them take up precious closet space. You can sell those items on sites like Poshmark, Tradesy, and even in-person at consignment stores like Plato's Closet or Clothes Mentor. A single bag of clothes could net you enough to send a couple hundred dollars toward your retirement account.</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-creative-ways-to-boost-your-retirement-savings&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Creative%2520Ways%2520to%2520Boost%2520Your%2520Retirement%2520Savings.jpg&amp;description=9%20Creative%20Ways%20to%20Boost%20Your%20Retirement%20Savings"></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%20Creative%20Ways%20to%20Boost%20Your%20Retirement%20Savings.jpg" alt="9 Creative Ways to Boost Your Retirement Savings" 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/kat-tretina">Kat Tretina</a> of <a href="http://www.wisebread.com/9-creative-ways-to-boost-your-retirement-savings">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-ways-to-find-income-while-waiting-for-full-retirement-age">4 Ways to Find Income While Waiting for Full Retirement Age</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-fast-ways-to-restock-an-emergency-fund-after-an-emergency">6 Fast Ways to Restock an Emergency Fund After an Emergency</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-easy-ways-to-earn-more-on-ebay">11 Easy Ways to Earn More on eBay</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-ways-to-make-money-over-memorial-day-weekend">7 Ways to Make Money Over Memorial Day Weekend</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/11-ways-to-make-money-while-at-the-beach-this-summer">11 Ways to Make Money While at the Beach This Summer</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income Retirement boost your retirement clutter making money renting saving money selling side gigs tax refunds Wed, 25 Apr 2018 08:00:09 +0000 Kat Tretina 2131007 at http://www.wisebread.com How Job-Hoppers Can Keep Up With Their Retirement Savings http://www.wisebread.com/how-job-hoppers-can-keep-up-with-their-retirement-savings <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-job-hoppers-can-keep-up-with-their-retirement-savings" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_saving_in_a_jar.jpg" alt="Woman saving in a jar" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's very common these days for young people to move from job to job. The days of sticking with a company for decades and earning a big pension are over.</p> <p>Thankfully, 401(k) plans and individual retirement accounts allow workers to switch jobs without losing their retirement savings, but it's still possible for all that job-hopping to disrupt your ability to save. If you do switch jobs regularly, there are some sensible things you can do to ensure that your retirement plan stays on track.</p> <h2>Open a traditional or Roth IRA</h2> <p>If you are between jobs with no access to an employer-sponsored retirement plan, there are still things you can do to save. If you have any earned income at all, you can contribute to an individual retirement account, which allows you to invest with some tax advantages.</p> <p>With a traditional IRA, any money you contribute is deducted from your taxable income. With a Roth IRA, your money is taxed upfront, but you will avoid paying any taxes on investment gains when you withdraw the money when you retire. IRAs can be very powerful tools for retirement savings for self-employed people, part-time workers, or those with irregular incomes. You can maintain and contribute to these accounts even after you get a 401(k) plan from a new employer. (See also: <a href="http://www.wisebread.com/401k-or-ira-you-need-both?ref=seealso" target="_blank">401(k) or IRA? You Need Both</a>)</p> <h2>Roll over your 401(k)</h2> <p>If you had a 401(k) from one employer and switch jobs, you can take the funds from the old account and add it to the new one. This is called a 401(k) rollover. There usually is no penalty if you don't merge the accounts right away, but over time the old 401(k) provider may start to bug you about it. You should consider a rollover if the retirement fund from your new employer offers better investment options, lower fees, or both. If you call the brokerage firm that is managing your old 401(k), they will usually be happy to walk you through the steps to carry out a rollover. (See also: <a href="http://www.wisebread.com/a-simple-guide-to-rolling-over-all-of-your-401ks-and-iras?ref=seealso" target="_blank">A Simple Guide to Rolling Over All of Your 401Ks and IRAs</a>)</p> <h2>Open a rollover IRA</h2> <p>If you no longer have access to a 401(k) or don't like the investment options in your new retirement plan, you can place your investments in a new individual retirement account. This is called a rollover IRA, and it can be better than a 401(k) because you usually will have many more investment options, from mutual funds and ETFs to individual stocks and bonds.</p> <h2>Look into a 401(k)-to-Roth IRA conversion</h2> <p>When you have a 401(k), you will eventually be obligated to pay tax on any gains when you begin withdrawing money in retirement. That's why some investors look into turning their 401(k) and traditional IRA accounts into a Roth IRA, which allows money to grow tax-free.</p> <p>The big catch to making this conversion is that you must pay tax on any gains you've had up until now. That could be a big chunk of change that you may not be in a position to handle right now, but a smart move if you think your tax bracket will be higher in the future. An accountant or financial adviser can help you determine whether converting an old 401(k) to a Roth IRA makes sense for you.</p> <h2>Play catch up</h2> <p>Let's say you left a job and were not able to contribute to retirement accounts for three months. But, you land a new job with a higher salary than before. If this happens, consider bumping up your retirement contributions to make up for that lost time. Any time you get new or unexpected income, consider using that to backfill the retirement accounts you may have been neglecting.</p> <p>Once you make those extra payments, you may find that you have the ability to contribute the higher amount on an ongoing basis. And that's great, because the more you are able to save, the more you'll have in the long run. (See also: <a href="http://www.wisebread.com/6-ways-meeting-the-2018-401k-contribution-limits-will-brighten-your-future?ref=seealso" target="_blank">6 Ways Meeting the 2018 401(k) Contribution Limits Will Brighten Your Future</a>)</p> <h2>Pay close attention to the employer match</h2> <p>Employers can vary greatly in how much they contribute to workers' 401(k) accounts. Some will provide direct contributions while also matching what the employee put in. Some offer a full match on contributions, while others match just a portion. And some don't contribute at all. It's important to remember this when switching companies, especially if you are moving to a company with a retirement plan that's less generous.</p> <p>Ideally, you will want to make sure that the total amount of money going into your 401(k) remains the same or goes up over time. If your new employer is contributing less on a percentage basis, consider bumping up your own contributions to make up the difference. (See also: <a href="http://www.wisebread.com/7-things-you-should-know-about-your-401k-match?ref=seealso" target="_blank">7 Things You Should Know About Your 401(k) Match</a>)</p> <h2>Don't forget about the vesting period</h2> <p>If you work at a company that contributes to your 401(k) plan, it's possible that you may not be able to keep those contributions unless you stay at the company a certain number of years. For example, the company may reclaim any contributions if you leave before two years. This is called the vesting period.</p> <p>To get the full advantage of a company retirement plan, it makes sense to stay through the full vesting period. Some companies offer a tiered vesting schedule, in which employees keep an increasing portion of company contributions each year until they are fully vested.</p> <p>Be sure to read the documentation on your 401(k) plan to understand the vesting policies. If you leave the company before you are fully vested, you may be leaving large sums of money on the table.</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%2Fhow-job-hoppers-can-keep-up-with-their-retirement-savings&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520Job-Hoppers%2520Can%2520Keep%2520Up%2520With%2520Their%2520Retirement%2520Savings.jpg&amp;description=How%20Job-Hoppers%20Can%20Keep%20Up%20With%20Their%20Retirement%20Savings"></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/How%20Job-Hoppers%20Can%20Keep%20Up%20With%20Their%20Retirement%20Savings.jpg" alt="How Job-Hoppers Can Keep Up With Their Retirement Savings" 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/how-job-hoppers-can-keep-up-with-their-retirement-savings">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/the-step-by-step-guide-to-rolling-over-your-401k">The Step-by-Step Guide to Rolling Over Your 401(k)</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/left-a-job-do-a-rollover">Left a job? Do a rollover.</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/intimidated-by-retirement-investing-get-professional-help">Intimidated by Retirement Investing? Get Professional Help!</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/heres-what-it-means-to-be-vested-in-your-401k">Here&#039;s What It Means to Be Vested in Your 401(k)</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-things-millennials-can-do-right-now-for-an-early-retirement">8 Things Millennials Can Do Right Now for an Early Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement 401(k) IRA job hopping matching rollover Roth IRA switching jobs vesting Mon, 16 Apr 2018 08:30:09 +0000 Tim Lemke 2129298 at http://www.wisebread.com Where to Invest Your Money After You've Maxed Out Your Retirement Account http://www.wisebread.com/where-to-invest-your-money-after-youve-maxed-out-your-retirement-account <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/where-to-invest-your-money-after-youve-maxed-out-your-retirement-account" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/getting_a_fortune.jpg" alt="Getting a fortune" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Are you a super saver? Have you managed to contribute the maximum amounts allowed into your 401(k) or individual retirement accounts? If so, you may now be wondering what to do with any additional money you have. Should you continue to invest? If so, how? Should you spend it on a Picasso painting or give it to your kids?</p> <p>There are many options for people who have maxed out their retirement contributions. Here are some of them.</p> <h2>Taxable brokerage account</h2> <p>I'm a huge fan of the tax-advantaged nature of retirement accounts, but regular taxable brokerage accounts have their good qualities. For one thing, they are more flexible than retirement accounts. There is no limit to what you can invest in a taxable brokerage account, and while you will pay tax on any dividends and capital gains in these accounts, there is no additional penalty for withdrawing money before you retire. If you collect dividends from investments in a taxable brokerage account, they can be a great source of extra income.</p> <h2>Real estate</h2> <p>If you've put as much money into retirement accounts as you can, why not take a look at buying a property or house as a possible investment? Real estate can appreciate in value just like stocks, and you may even be able to draw income from tenants as well.</p> <p>Investing in real estate is obviously different from investing in stocks or bonds. In this case, you are investing in actual property. There may be more costs upfront, and you may face the expense and work associated with managing it. But there are many people who have gotten wealthy by buying and selling properties.</p> <p>It's worth noting that under the new tax law, you can't claim a tax deduction for mortgage interest from a second home. But the potential for real estate to rise in value and generate income is still a powerful thing. (See also: <a href="http://www.wisebread.com/the-only-5-rules-you-need-to-know-about-investing-in-real-estate?ref=seealso" target="_blank">The Only 5 Rules You Need to Know About Investing in Real Estate</a>)</p> <h2>Peer-to-peer lending</h2> <p>Did you know it's possible to make money directly off other people's borrowing? With peer-to-peer lending, an individual can use an online platform to purchase someone else's debt and make money off the interest payments. The money you can earn is based off the riskiness of the loan; more creditworthy borrowers will pay out less than those with worse credit.</p> <p>There is always the risk of borrowers defaulting on loans, but most lenders have found good returns by purchasing a &quot;portfolio&quot; of loans at various risk levels. Lending Club and Prosper are two of the most popular peer-to-peer lending platforms. (See also: <a href="http://www.wisebread.com/how-to-make-money-with-peer-to-peer-lending-service-prosper?ref=seealso" target="_blank">How to Make Money With Peer-to-Peer Lending Service Prosper</a>)</p> <h2>Education savings accounts</h2> <p>If you have children or other relatives that will be going to college, you can help fund their education and receive some tax benefits for yourself. A 529 college savings plan is a popular option, because it allows someone to invest money and withdraw the gains tax free, provided the funds are used to pay for college. In many instances, the contributions are also deducted from your taxable income. The new tax law allows 529 plans to be used for other education expenses, such as private high school, as well. (See also: <a href="http://www.wisebread.com/the-9-best-state-529-college-savings-plans?ref=seealso" target="_blank">The 9 Best State 529 College Savings Plans</a>)</p> <h2>The bank</h2> <p>It may seem silly to just put money in a simple savings account when interest rates are still quite low. But it's possible that, in an effort to max out your retirement accounts, you've been neglecting your cash savings. Having a good amount of cash on hand can give you a nice cushion in the event of an emergency and prevent you from raiding your retirement accounts. If you don't have at least three months' worth of expenses saved, it's a good idea to bolster that savings. Once you hit three months' of expenses saved, go for six. (See also: <a href="http://www.wisebread.com/5-best-online-savings-accounts?ref=seealso" target="_blank">The Best Online Savings Accounts</a>)</p> <p>It's actually not uncommon for people of high net worth to have cash flow problems, because they focus so heavily on investing their money. If you are maxing out your retirement contributions, you're doing great. There's really nothing wrong with having more cash on hand than you may need, and you may find that it gives you some nice peace of mind.</p> <h2>Collectibles</h2> <p>I am personally not a huge fan of collectibles as an investment, but they can be useful as part of a broad portfolio. A savvy, knowledgeable collector can make good money on things like art, antiques, trading cards, or even classic cars. And collecting can be good fun. Just be aware that the returns on collectibles rarely top what you can get in the stock market. (See also: <a href="http://www.wisebread.com/10-collectibles-that-almost-always-become-more-valuable?ref=seealso" target="_blank">10 Collectibles That Almost Always Become More Valuable</a>)</p> <h2>Donations to charity</h2> <p>You may think that once you've maxed out your retirement contributions, there are no more tax breaks to be had. But you can get a tax deduction for donating to most charities. So you can feel good about supporting a worthy cause while helping yourself financially.</p> <p>The one caveat here is that under the new tax law, it may be financially smarter for people to take the standard deduction rather than itemize. This could make donating to charity less advantageous from a tax perspective.</p> <h2>Gift it to family</h2> <p>If you are very wealthy and expect that your children or other family members will inherit your money when you die, it may be a good idea to begin transferring that wealth now to avoid taxes. Under the new tax law, the exemption for gift and estate taxes &mdash; the amount you can give away in your lifetime &mdash; is $11.2 million per individual. Married couples can transfer double that amount, or $22.4 million. It's also possible to make an annual gift of up to $15,000 per person (married couples can gift $30,000 per recipient) without paying taxes.</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%2Fwhere-to-invest-your-money-after-youve-maxed-out-your-retirement-account&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FWhere%2520to%2520Invest%2520Your%2520Money%2520After%2520You%2527ve%2520Maxed%2520Out%2520Your%2520Retirement%2520Account_0.jpg&amp;description=Where%20to%20Invest%20Your%20Money%20After%20You've%20Maxed%20Out%20Your%20Retirement%20Account"></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/Where%20to%20Invest%20Your%20Money%20After%20You%27ve%20Maxed%20Out%20Your%20Retirement%20Account_0.jpg" alt="Where to Invest Your Money After You've Maxed Out Your Retirement Account" 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/where-to-invest-your-money-after-youve-maxed-out-your-retirement-account">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. 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