10 Financial Sins Retired People Must Avoid

Retirement is a time when you can finally kick back and relax. This is a time when you can finally enjoy all the years of hard work. Those long days of labor all led up to this point your life, so put your feet up and smile as you think about how you would spend the next several worry free years and let your retirement fund do all the work.

However, just because you have finally retired doesn’t mean that everything is now set. Even at this point in your life, there are several situations that look to separate you from your hard earned money. There are certain decisions a person can make that would turn what is supposed to be the best years of one’s life into a struggle. Here are the 10 financial sins retired people must avoid to enjoy a truly happy retirement:

1. Impulsive Investments

When living a relatively worry free lifestyle the way most retired people do, it’s easy to become overly at ease and let your guard down. This makes us more susceptible to making questionable decisions like making generally risky investments and even being targeted by financial scams. Many retired individuals have had their retirement ruined by the negative fall out by such decisions.

This can easily be avoided by simply being more careful. If someone comes up to you with an investment opportunity that seems to good to be true, chances are, it is. By asking the right questions, doing the necessary research, you can keep all that money you’ve saved for your retirement fund safe.

2. Making Unwise Purchases

Understand that while your retirement fund may be sizeable, it is not infinite. Just because you’re retired, that doesn’t mean that you have free reign to buy whatever you want. Remember, you have managed to come up with enough money to retire comfortably through smart financial planning. There is no reason to abandon that kind of mentality once you’re retired, especially if it would be detrimental to the finances of your retirement. Buying a boat may seem tempting, or even that car that you’ve always wanted, but if making such a purchase would mean that you won’t be able to make the next payment to your life insurance plan, then it might be time to ponder the smarter choice.

3. Neglecting Personal Health

Unless you are one of those people who struck it big and managed to retire at a young age, then it’s likely that you have reached retirement at an advanced age. This means that whatever lifestyle choices you have made in your younger years are going to start catching up with you, and a medical insurance plan can only cover so much.

If you want to enjoy a long retirement with minimal strain on your finances, taking better care of your health is the first big step. At this point, your financial health will go hand in hand with your physical health, and if you take care of one, you take care of the other.

4. Not Filing Taxes Properly

They say that there are only two things in life that are constant, and those two things are death and taxes. While death may be unavoidable, issues with taxes can easily be avoided by making sure all your paperwork is in order. Back taxes have a tendency to bite a retiree in the behind at unfortunate times. Be sure that your taxes are properly paid and filed so your retirement fund doesn’t go to the government.

5. Unwillingness to Cut Corners

Retirement is also a time to consider downsizing. Having a big house is great, but always ask yourself the question, “do I really need this?” Much like making unnecessary purchases, it’s best to assess your priorities. You might want to live in a smaller house that has a smaller mortgage, or trade in that gas guzzler for something more economical.

Take a look at your financial commitments now that your income comes solely from your retirement fund. Cost cutting doesn’t mean that you’ll be downgrading your life, but think of it as streamlining your lifestyle to something that is more appropriate to your needs. By cutting corners on things that you don’t essentially need, you can definitely stretch your retirement fund for a lot longer.

6. Being Unaware of Retirement Accounts

It’s also best to be aware of where your retirement fund is coming from, specifically. If you have an insurance plan, pension, savings and other sources of retirement income, find out how much you’re getting and using from each. Having a clearer idea of how much you will be receiving and how much you actually have will make planning your finances and expenses much easier.

7. Not Diversifying Your Portfolio

You may be one of those people who tend to be careful with your investment choices, and as alluded to earlier, a level of care is smart. However, you also run the risk of having a financial portfolio that is not diversified. This would limit your earning potential. Try to branch out a bit in order to learn of other avenues to turn a profit. Consulting a professional, a credible one, wouldn’t hurt as well.

8. Indulging in Complacency

The purpose of retiring isn’t really to stop working, but to put yourself in a position wherein you can do something that you really like in the time that you now have. Why not work part time, or even full time, in something that truly interests you? This would be intellectually, emotionally, and financially fulfilling since you’d be doing something that you love and something that challenges you, and you can even make some money out it. Making money on the side would ensure your retirement fund lasts longer.

9. Neglecting What is to be Left Behind

No one lives forever, and once you’re retired, it’s also an ideal time to think about where your money goes once you’re gone. Getting the family together to discuss possibilities after your passing may be a good idea to hammer out how things are to be handled once the unfortunate time of your passing has come. Also straighten out your life insurance policies and other responsibilities. These may require you to entertain certain unpleasant thoughts, but the sooner you get these out of the way, the sooner you get to enjoy your retirement.

10. Making Retirement About Money

A lot of people are under the impression that as long as you’ve managed to save a ton of money for retirement then everything goes smoothly. That is not specifically the case. Money does not equate to happiness, and retirement is a time when people get vulnerable to depression and other similar emotional problems. People who have such problems tend to make poor decisions, especially when it comes to money. Set your mind properly to what retirement really is, so you wouldn’t risk blowing your entire nest egg on impulse.

Author’s box

Ian G. Elbanbuena is a blogger and infopreneur who writes on various topics mainly finance, self-improvement, business and marketing. At present he works on behalf of Compare Hero, Malaysia’s leading comparison website. This portal helps individuals in saving money by comparing insurance rates from different providers. Twitter @elbanbuenaian

 

 

Donating Money to Charity in your Will

Leaving money to a charity after you pass away is a selfless act that has several benefits for the world you’ve left behind. There are many different causes you can opt for:

  • Animal charities
  • International NGOs, e.g. in the field of peace, human rights, development or conservation
  • Environmental charities
  • Health charities
  • Education charities
  • Arts and culture charities

TD Friends of the Environment Foundation

If you’re in Canada the TD Friends of the Environment Foundation can be a great choice. For one, it will go to a great cause that supports a spectrum of environmental projects, such as education, urban greening, biodiversity, and energy conservation.

The foundation spreads its money among its nearly forty chapters throughout Canada, so you know it will be making a far-reaching impact. For another, there are personal benefits for your family, as donating money to deductible from your estate before inheritance tax. Finally, it’s a wonderful way to be remembered—as an individual who cares about the Earth, the environment, and sustainability. Over $65 million has been disbursed through TD FEF to support 22,000 projects. You can become your own kind of hero by being among the nearly 150,000 donors.

How to do this?

So how does one go about leaving money to charity in your will? It is best to specify a fixed sum in your will that you’d like to donate or have your representatives know how you would like the funds distributed after you pass. Make sure that the organization of your choice is mentioned (either the foundation as a whole or your closest local chapter) clearly so there is no ambivalence or chance of misunderstanding. Broadly speaking, you may want a lawyer to look over your will to ensure that everything is valid and legal. You may also want to dedicate the donation in the memory of a loved one, in which case you will also want to specify that person and the dedication in the will itself, or tell them in person that you are doing it for them.

If you’re unsure how to write a will or are unable to seek paid legal advice, be aware that there are free services available to advise you on your way. You may also want to contact the charity of your choice directly in order to ask them what precise information is best to include in your will so your donation goes directly to the foundation after the rest of your estate has been distributed among your family and friends as you see fit.

This is your chance to make a tremendous difference in the future of the planet and help the future children of the world live safer, cleaner and better lives.

Retired and Broke? Get Back In The Game With 5 Money Making Pointers

When in retirement, a person should have money in the bank and no financial problems. Sadly, with the current economic state, many older folks do not have a posh retirement, even find themselves without money at the end of the month. However, with these five tips, a person can regain their financial freedom and make some money in the process.

Part Time Work:

When working a part-time job, a retired individual can make some extra cash and get free health benefits. Now, this is easier than in the past as many companies love hiring older and hardworking people who have experience in the industry. Other times, a person with a lot of qualifications should consider setting up a part-time business or offering their services as a consultant.

Negotiate:

A person with a lot of monthly bills should try to contact the companies and ask for lower rates. Whether doing this for insurance or cable bills, an individual can save money without much work. In reality, with a five-minute phone call, a consumer can save hundreds of dollars a year. One must remember that most companies prefer to lower a customer’s bills than lose them to a competitor. When a consumer takes advantage of this, they will still enjoy the same services.

Refinance:

Many still carry a mortgage into retirement as it offers a person money-saving benefits on his or her taxes. To get the best deal, a person who qualifies should search for >Low VA Rates at websites such as LowVARates.com. Without a doubt, people overpay on their monthly mortgage payment without a second thought.

Garage Sale:

When retired, a person will not have to commute to work or wear nice clothes. To make some money, a retired individual should sell off some of his or her unneeded junk. When taking a week or two to organize a sale, one can see serious returns and clean their house in the process.

Downsize:

In retirement, a person will not need a large house with four or more rooms. To save money and cut bills drastically, an individual should consider downsizing and moving into a condo or small house. Not only will a retired person save money on his or her mortgage payment, they will also pay lower utility bills.

With these five simple tips, a person with financial problems during retirement can get to the bottom of the issue. Fortunately, when taking a few minutes a day to improve one’s situation, a person will not struggle to get back on the right track financially.

Motorcycle Insurance Information That Seniors Need To Know

Senior citizens may be entitled to discounts on their motorcycle insurance. Some insurance companies try to get around this by not informing customers of this fact. Insurance companies in both the United States and Canada often have a policy that offers discounts for safe driving records. However, if seniors don’t ask about the discounts they are not informed about them by the agent.

If you are looking for motorcycle insurance Canada offers several options that can lower the cost. In most cases the cost of your motorcycle insurance is based on your driving record, the type of motorcycle you own, and past insurance coverage. Seniors are in an enviable position to cash in on lower rates, if they have never had an accident on their motorcycle. This is something that your insurance agent may, or may not, tell you about so be sure to ask about discounts for safe driving records.

Some people make the mistake of canceling their motorcycle insurance during the winter months. This practice can lead to higher premiums for their insurance coverage. Most motorcycle insurance is pro-rated so that you are actually only paying for the months when it is possible to ride. In some areas of the United States it is possible to ride year round so this would not apply there. However, in many parts of the United States and Canada there are several months of winter weather where riding a motorcycle is just not possible.

The type of motorcycle you drive is also a deciding factor in the amount of insurance coverage you will need. High speed or high performance bikes will of course cost more to insure. In some cases the age of the bike will also have a bearing on the price you will pay for insurance. If your insurance policy covers replacing the motorcycle if totaled it will be more expensive to get coverage for a newer bike. However, this is not always the case it can also be expensive if the bike you are covering is an antique and difficult to find. Imported or special order bikes can also raise the cost of insurance.

Another important consideration in the cost of your insurance is the amount of medical coverage you carry. If you have medical coverage that will pay for injuries you may sustain then your motorcycle insurance may be lower. This article should help you decide what questions to ask when you are looking for senior motorcycle insurance coverage.

Retire Right: Six Tips For Successful Saving, Investing and Spending

You have enough to worry about with the economy and the changes life throws at you. Therefore, it’s important to make sure that you have prepared accordingly for retirement and a life that you want after working. Here are six tips for successful saving, investing and spending, to assure that you have control over your financial situation.

Pay Off Debts

It’s never fun to turn your paychecks around and pay off debts, but in the long run it will truly benefit you to do so. If you have low-interest loans like student debts, it shouldn’t be too big an issue if you pay your monthly minimum and keep up with that. But if you have debts with high interest rates, often times credit cards or other loans, payments should be made on these more diligently in order to reduce your interest. It may not be fun to pay off, but you’ll be relieved when you don’t have to pay the extra interest rates.

Save For A Rainy Day

You’ve probably heard this saying before, but may not always take it to heart, because we tend to focus on putting our money towards payments we need to make now. Considering life has its surprises, it’s important to always be prepared for the bumps in the road. Saving for a rainy day will allow you to be prepared to pay for unexpected bills. Be sure to keep prepared for a few months in advance, in the event you loose your job or get an injury or illness that would prevent you from working.

Allocate Your Funds

It’s not a good idea to put all of your money in one place, in case something goes wrong. If an unexpected even is thrown on you, you’ll be regretting that you don’t have other resources when you need it. Money & Markets experts suggest that you spread your money out over different stocks and investments, not just one. Investing is a great way to increase the money you have, but don’t use it all in one place.

Think Of Extra Income

If you have a home and your children recently left for college, think of ways that you can use the extra space in your house. One idea may be to rent it to another person and see a return. This is just one example of making extra income that can go a long way as you prepare for retirement. You may also consider starting your own business, doing something you love while making more income. Think of how you can use your resources to make that time come sooner.

Teach Your Children Smart Habits

It is hard to tell your kids no when they ask for something new. If you want them to have a better understanding of your financial goals, which will surely help them in their own financial future, than let them know that you cannot give them everything they might ask for. This will help you save more money and invest it wisely.

Decide If Leasing Or Owning Is Better

You often hear that owning a home or car is better than leasing. However, each persons circumstance is different and this can play a large role in your long-term financial standing. Consider the effects of leasing or owning before you make any decisions that you’ll have to deal with for a long time.

Retirement should be a great time in you life, but the way to make it the best is if you prepare accordingly and are wise with your finances. Be sure to consider the options here to help you save, invest and spend smarter in your future.

Seniors often need health plans. Get Medicare Supplement Insurance to protect yourself!

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