You have several rollover options when deciding what to do with your IRA or 401k account. Make sure to think about your personal situation when reading through these options, so you can weigh what the best choice is for you. And keep in mind that more than one option may pertain to your retirement needs, especially when you consider those retirement needs in the future.
The easiest thing to do is not act at all. Keep any and all accounts exactly where they are and do not give them a second thought until you are ready to retire. As you can imagine we do not advocate this choice. While it is easier to bury your head in the sand then learn about and act on your financial future, it will only cause bigger retirement problems in the future. Can you imagine finally being ready to step away from work and all of your retirement assets are scattered between a dozen or more past employers that you have worked for over the last 40 years?
You can consolidate your retirement accounts into a Rollover IRA. If you already have a past employer or two where you are still keep your retirement funds, or an individual retirement account opened years ago when you were younger, you can transfer the funds to a Rollover IRA account, so they are all consolidated and easy to locate. This way you can add simplicity to your retirement planning. Rollover retirement accounts also allow you to rollover your money again in the future, so that you can adjust your investing goals as you get closer to retirement age.
If you like to take personal charge of your retirement funds, you can rollover into separate IRA accounts that will allow you to greatly diversify your retirement investments. Each retirement account can be given a different purpose, such as a self directed IRA that you use to purchase rental properties, or an retirement account that you do not intend to touch personally, but is set aside as a inheritance for your children.
If you are already with a new employer that offers a great 401k program, the past retirement account funds can be switched directly into the new 401k. Make sure that your new company will match a portion of the money you save from each paycheck and that the investments they offer can produce good returns with reasonable management fees. There is no point in changing out of a flexible IRA unless the retirement program your company offers is top notch.
Your final option is that you can take the money out of the retirement accounts and use them, but if you are hoping to have any ability to really retire in the future, this is a huge mistake. Any money that you take out of your 401k or IRA for personal use will be heavily taxed by the IRS. On top of that early retirement account withdrawals are hit with large penalties. Avoid this choice at all costs.
These are a sample of the options given you when deciding what choice to make with your IRA rollover or 401k rollover. It is always recommended to speak with a trustworthy broker when deciding and implementing any retirement account changes.
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Start off the new year right. Make these resolutions for your finances.
One of your new year’s resolutions may be to take your relationship with money more seriously. Here are 7 resolutions for your finances you can make right now to take more control of your money.
1. Make an early contribution to your IRA, 401k, Roth IRA, or other retirement plan for the calendar year and tax year 2012.
2. With your bookkeeper and accountant, there are 2 resolutions for your finances. Call your bookkeeper and ask him/her to update your books through 12/31/2011 as soon as possible. Then, schedule a meeting with your accountant to review your tax liability. Don’t wait till March to do this. Get ahead and stay in control.
3. If you pay estimated taxes, don’t forget to make your 2011 fourth quarter payment by January 17th, 2012.
4. It’s also a good idea to make psychological resolutions for your finances. Tell yourself that you’re going to play a bigger game in 2012. Imagine you are making 10 times the income that you made in 2011 and get inside that mindset at least once a day. Find at least one place where you can invest in your business (or yourself) with limited downside and way more upside. Go out and do it.
5. You never know when you’ll need it. So fund your emergency account now. Put three to six months worth of living expenses in a separate savings account. Make this account hard to get to. For instance, open it at another bank and don’t electronically link it to your checking account.
6. If you don’t have it already, get disability insurance. If other people (like your kiddos) depend on you to provide for them and you get hurt or sick, it’s major bad news. You need to insure for this.
7. Make your investment portfolio part of this year’s resolutions for your finances. Review your portfolio and strategy every 3 to 4 months. How did you do for 2011? Are you satisfied with what it’s doing? Is your portfolio invested the right away so it can help you achieve your goals?
Get started with with these resolutions and you’ll start 2012 right. Not sure where to start with your 2012 resolutions for your finances? Give us a call or email us and we can help you get started. We’ll paint by numbers together!
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In this video Steve shares with you 12 tips to manage your money and personal finances. Personal finance and financial planning is one of the most important areas when it comes to wealth management and growing your nest egg.
In this video you will learn about the importance of bookkeeping, budgeting, reading your credit card and bank statements, tracking your income and expenses, investing in your education, and much more.
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They say money can’t buy you happiness, but it provides you comfort in life. Worries over financial matters in the family can increase tension. Managing your personal finances can save you and your family from a lot of trouble. Here are areas you have to bear in mind and why you should manage your personal finances:
* Necessities of the family. You have to save money so that you can buy groceries and other personal necessities of yours and your family, and to be able to tend to other things such as water and electricity bills, maybe school tuition of your kid, school supplies, fixtures, fixture repairs and the like.
* Unforeseen Casualties. One should be prepared when it comes to floods, accidents, death, failing health and the like. Acquire insurance for these. There are some cases in which these casualties are self-insurable; however most require that you sign an insurance contract.
* Tax. Taxes are one of the expensive expenditures that occur in the household. When your income rises, you will have a much higher tax payment. The government may give incentives, like tax deduction, that may lessen tax burden.
* Retirement Planning. How much expenditures would occur when one lives after retirement? Can the household income support it?
With these in mind, you cannot sleep peacefully or think clearly, can you? Here are ways on how to manage your finances:
* Save. Allot a portion to your income as your savings. A large amount of savings will make you be prepared for any unforeseen events and casualties. Ten dollars a week seems a good start. If you can go any higher than that then it’s good. But don’t deprive yourself and your family of necessities.
* Budget. Create a simple guide or a list as to what will you be spending and how much money you can afford to spend. Stick to it. Sticking to your budget will lessen your burden from other personal finances you may deal with later. When shopping or simply going to the grocery store, why not write a list or simply remind yourself that you should only max your expenses on a certain amount?
* Set priorities. Carefully plan your finances. Prioritize what should be needed at first than settling on what you want. Choose: A new bag or paying the electricity bills? Setting priorities first can eliminate consequences that will tear your family apart. Overcome your splurging habit – this will make it easier for you and your family.
* Don’t “play” with your credit card. Exceeding your card limit and paying it late will cost you an enormous sum. Credit Cards have limits. Control yourself and don’t be impulsive when it comes to buying.
* Make yourself aware of the present interest rates. When borrowing money from financial institutions or having your jewelry pawned, pay attention to the payment terms and conditions. Pay before or within the deadline date and you will save yourself from any problems that will happen.
* Deposit your money in the bank. Know your bank – whether they’re trustworthy or the bank is not that reliable. You can choose from a variety of accounts available – savings account, time deposits, etc. Savings accounts have rates that can raise your deposits a little higher.
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A lot of people are now making money at home, and everyone is doing it differently. If you are wondering how you can make money at home, here are the answers.
The Internet is a thriving haven of money-making opportunities. If you know where to look, and is prepared to maximize your skills and knowledge, you can find plenty of ways how to make money at home, simple with the use of your computer. Venture into the online work environment and choose from any of these top five money-making opportunities online.
WEBSITE MARKETING
Website marketing is one of the top ways to make money at home. As more and more people are becoming exposed to the world of media discourse and the Internet is becoming easier to manipulate, the number of websites on the World Wide Web is also increasing. Nowadays, anyone can create his own website, publish it to the Internet, and earn money from it. The world of website marketing may be a bit tricky, but once you learn the tricks of the trade, you can drive traffic to your website, get people to advertise on it, and get rich as you sit in a comfortable chair at home.
FREELANCE PROFESSIONAL SERVICES
Offering freelance professional services is now a widely known way to make money at home. A lot of people are now offering their professional services online to clients worldwide. With no other effort needed, a person can make use of his skills and knowledge to make money at home. There are online communities where service providers and customers are interacting and transacting. If you are an artist, you can offer web design, graphic design, and even photography services. If you are a writer, you can offer writing, proofreading, and editing services. In addition to that, if you are looking for a pressure-free job, you can simply offer data encoding services. You can even get paid to create, read, or respond to e-mails. There are a lot of opportunities out there, so there is no need to fear that you won’t sustain your home-based career. Better yet, offering freelance services will help you enhance your skills and knowledge as well.
ENTREPRENEURSHIP
If you can provide services online, you can also sell goods. This is where Entrepreneurship comes in. Majority of goods that are being sold nowadays are also being sold or advertised on the Internet. The shift to a web-based society has also affected the world of entrepreneurship and has transformed it into “entrepreneurship” instead. There are now a lot of community websites wherein people are trading and selling, and websites that are dedicated to selling. You can sell virtually anything online, and the benefits are plenty. You can reach more people with your products when you decide to sell it on the Internet. More people, even outside of your network, and even those who are not on the lookout for the kind of product you sell, can easily come across your product on the Internet and be lured into buying. Through netrepreneurship, you can sell products and make money at home, without having to face the woes of a full-fledged, actual business.
HASSLE-FREE ONLINE OPPORTUNITIES
If you haven’t decided to make money at home, why not just increase your present income through hassle-free money-making opportunities online, such as taking surveys? Now, companies are shifting their market research online, and to extend across boundaries, they are offering to pay people to simply answer some surveys. There are a lot of survey sites on the Internet nowadays. All you have to do is sign up for these survey sites to get access to a lot of surveys. You can take as many surveys as you can, so your income will be entirely up to you. Each survey will only take you a few minutes to answer, so you can gauge the number of surveys you can take everyday. This is a good way to make money at home, even just during your free time.
These are just some of the money making opportunities that the Internet is presenting to you. These opportunities are yours for the taking once you decide that you want to make money at home. It is very easy to start a web-based career, given the many options that are available on the World Wide Web. Once you decide to make money at home, there is no other way to go but forward.
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How to manage your finances is one of the important components of having a good life. Whether you have a smaller income or a better one, you will truly save yourself from a lot of worries and trouble if you know how to manage your finances well.
(1) Set priorities carefully plan your finances. Know your wants and your needs. Do not be confused with what you need and what you want. If you want to make big purchases like getting a home or a car, careful planning will be your key to make it a little easier.
(2) Make a budget. It is always helpful to make a guide on your spending for the next few months. Having a plan on spending is very much helpful for you to see how much you can afford to spend in a month. Make a list when you go to the grocery or when you go shopping and keep reminding yourself to stick to the list. Sticking to your budget today is definitely one good way of being free from financial worries later.
(3) Do not spend more than what you earn. Do not splurge on spending with your credit card if it is not clear where you will get payment for it the next month. Thinking about spending a lot today hoping you will get a job the next month is a no-no.
(4) Manage your debts. Pay your credit card promptly and do not go over your credit limit. Late payments and maxing out your credit cards will cost you expensively. When credit card companies are giving you lower interest rates, you might end up having to pay for higher fees. Late payments and overspending will likely stain your credit report in the end as well. Knowing how to manage your debts is indeed one huge step in learning how to manage your finances.
(5) Save. Make it a habit to save and include savings on your budget. Allot a percentage of your income as your savings. Having a good amount of savings regularly always helps you face your future with confidence and will save you from a lot of financial worries.
(6) Be informed. If you are borrowing money, making investments, or renting anything, always be informed with interest rates and the terms and conditions. When dealing financial transactions, it is always wise to read the fine prints. This way you will save yourself from financial troubles later on.
(7) If you want to invest your money, be wise. Know your market, know the feasibility and success rate of your investment. Especially these days where the economy is down, you also have to be careful where to invest your money. Find and study the opportunities with lower risks.
(8) Think your way out of debts and overspending. Indeed, it may be difficult for some to overcome the habit of overspending and splurging on many things in life. If you are facing the same situation, try to train the power of your mind to manage your thoughts on spending. Resist the urge to do unplanned spending by waiting for a day or two. In the end you might find out you don’t exactly need it.
If you want to live a good life, know how to manage your finances as this comprise a big part of being happy and worry-free in life.
Whatever type of retirement fund you have, be it 401k 403b, Roth IRA or plain old IRA, you want to spread your risk.
Stocks go up and go down. Treasuries and government backed bonds are very safe, but they also go up and down in value, although you will always get a reasonable return. You can lose your shirt in futures and commodities. Gold is attractive, too. So what should you do?
Most people start off with investing in mutual funds, or they rely on a professional adviser – by the way professional means that he gets paid for doing that job, so don’t assume a professional adviser is an expert. Mutual funds generally invest in stocks, but it is certainly a good idea to have a proportion of your retirement fund invested in high-quality bonds – and the older you get the higher the quality you need.
Stocks can be risky
Recently, managers and investors alike have realized that markets do go up and go down, and so they have sought to diversify out of stocks, or in some cases out of the USA. Diversifying overseas is either risky – in new markets like China and Korea – or is a currency play. Why? because the leading markets in the USA, UK, Europe and Japan tend to move in the same cycles – and it is long term cycles that you need to watch for your retirement fund.
Hedging helps
An alternative is a hedge fund. But these are very risky. However, some of the leading mutual fund companies, like Fidelity and Vanguard, are now offering funds which has some hedging.
What is hedging? Hedging is betting with some of your money that the price will go down,and with some that the price will go up. Of course, you put more money where you think the market is going, and some against it. If the fund manager is right, the value goes up, and he is wrong it goes down a little. In the long run, a good manager, with good investment tools and research, can consistently make profits whatever the market does.
Therefore it is a good idea to have a small portion of your retirement fund in a fund that is involved in hedging in a conservative manner. This is a good way to get into commodities – any other way is far too risky unless you have money to throw away, and if you do, you won’t be putting it into a retirement fund. Investing in hedged funds and commodities is not something to undertake on your own – you need to seek the advice of a good financial adviser.
Disclaimer
The information on this web site does not constitute an offer in any way. It gives general information, but is not financial advice. The aim is to help you decide what to do about your retirement plan, and the importance of saving for retirement. You should consult a retirement planning adviser with a proven record before setting up a retirement plan.
While there was once a standard age for retirement in this country and people could count on their company pension plans or retirement funds to get them through their twilight years we are finding that people are often living longer than their funds intended and that their quality of life in these years is much better than in decades past.
In fact, we are seeing a growing number of retirees that are dedicated to health and good, clean, fun living. This is something almost unprecedented throughout history and yet our retirees are younger in many ways than ever before.
This is where the problem kicks in for most. If you haven’t heard, social security, which was meant to secure our golden years is in serious financial trouble. Part of the reason for this is because people are living longer than was intended when this program was invented.
For this reason, we are seeing more and more young people taking their financial retirement planning into their own hands-particularly as we are witnessing more and more retirees coming out of retirement in order to put food on their tables because their retirement funds aren’t enough to make ends meet.
It’s really sad to see those that must return to work in those years where they should be watching their grandchildren playing rather than going into work day after day. If you don’t want this to be you then action needs to be taken.
You cannot depend on social security for your retirement and chances are that social services will be a long forgotten thing of the past by the time we reach retirement age. There are several things you can do that will help you when it comes to setting aside and investing money for your retirement.
The earlier in life you begin socking away money for your retirement the better. This of course does not mean that there is no hope if you wait until later in life only that you will need to make more substantial investments and save more aggressively if you choose to wait until a later date.
One thing you should carefully consider when planning for your retirement and setting aside funds for that end is how much money you feel you will need in order to have the quality of life you hope to have upon retirement.
Many people are working longer than in the past in order prolong their investment period. It helps if you set specific goals so that you have a number to work towards. You should discuss your plans and goals with a financial advisor from the very beginning in order to get the most accurate advice that is customized for your individual needs.
Just as there are very few things in life that are one size fits all, the same holds true when it comes to planning for your financial retirement. We all have goals for our golden years.
Some of these goals include jet setting around the world while others of us seek little more than a modest existence, a garden to call our own, and a steady supply of good books to on our nightstands. There are all kinds of retirement plans and they will each require their own unique and individual means of funding.
One important thing you need to keep in mind is that while saving is great, investing is often the wiser option for increasing your funds and netting larger earnings upon which to retire.
There is risk involved in investing and you need to be aware of those risks before choosing to do so, however, there are many times where the rewards far outweigh the risks that are associated with investing.
You should always discuss your retirement plans and goals with a qualified financial planner. He or she can offer advice and guidance that could make a huge impact on the scope of your retirement and your lifestyle upon retiring. Choose your planner with as much care as you choose the plan for your financial retirement and you should be in good hands.
Many people have been finding themselves in financial trouble because of the bad state of the recent economy. There are many ways so people can fix their money problems, such as filing for bankruptcy, getting a loan to pay off previous debts, and consolidating their debt. Among these options, debt consolidation seems to be the most popular and reasonable of all.
What Is Debt Consolidation?
A very common misconception of debt consolidation is that people think it is the loan. However, the process of debt consolidation actually means merging all your existing unpaid loans into one easy-to-pay debt. This will adjust and resize the amounts you owe creditors, allowing you to pay them back under new, easy conditions and terms. In this manner, paying off your debts will be less of a burden for you, and they still get paid whatever you owe them.
Benefits Of Debt Consolidation
Many people choose debt consolidation because it is easy to understand and easier on their already damaged budgets. The lower interest rates allow people to more easily pay off their debts and still be able to provide themselves and their families enough for each day.
Because all your debts and loans are merged into one, you don’t have to be troubled about multiple sources of bills, calls from debt collectors, and due dates. It is also a popular way of paying off credit card debt. People who’ve chosen debt consolidation like the fact that there is only one debt to pay, at a generally lower rate that they can easily pay off.
The reduced past interest and penalty is yet another reason why many people opt for debt consolidation to solve their money woes.
Consolidating Your Debts
“How do I do all this?” you may ask yourself. Some people claim to be able to consolidate their debts on their own, but the fact of the matter is you will most likely need professional debt consolidators to do it for you.
A lawyer or firm is usually the best approach in handling a financial crisis, but doing a bit of online research won’t do harm either. Just make sure to get service only from people and firms that you have confidence in, and perform a simple background check first on potential helpers to ensure that you are not being scammed.
by Brian Barolo
It takes true commitment to reach your First Supper of Success. Being a newbie in the business world can and usually is going to be very overwhelming. Depending on the actual industry,which will determine how much stress and mental pressure you will endure, has a great impact on your mental health. You are learning all new material and it may feel like you are back in school, but, education is a must in every business. In order to climb the ladder in any industry there is always massive amounts of learning and training. Whether it be hands on training or in classrooms with teachers, coaches, counselors, advocates, etc, there is always going to be tremendous amounts of work. In class or on site you will always be overloaded with information in which you must decipher on the spot. This can very easily get frustrating and confusing to the point of making a decision whether to follow through or not. Are you a quitter or a winner? In order to advance yourself up the ladder of success quitting is not the solution. Education and training and determination is a major key to succeeding.
When climbing the ladder of success a great deal of help is necessary in order to shorten the learning curve for upward advancement in business. Therefore, one must always search and find help from like minded successful people in the exact same business you are learning. A newbie should find a mentor, someone they look up to and listen to and learn from. After all that mentor was once younger and in the exact same shoes struggling through the exact same learning curve as you maybe going through now. Everyone has different learning abilities and we as people all need some direction at one point or another. If you need to ask one question than there is some guidance that is needed. This is where our predecessors come in to help guide us. Be smart and listen to them because they were there already and should have all the correct answers. Take advantage of every opportunity that is available.
When someone is first starting a new career and they work through all there training and education they are getting ready for the real world to come down on them. If they are preparing themselves properly than the stumbling blocks get smaller and fewer. Great gains will be made in their life as long as they stick to the proper curriculum and follow their mentors guidance. One must complete all required steps in their education and training to become the one who stands apart from the rest with great success. Then and only then does the actual First Supper of Success take place. This is when you and all your mentors, coaches sit down to break bread together. Now you are on your way up the ladder to success.
What do you do to succeed in your business?
Learn everything regarding retirement by reading the suggestions in this article. Though you might feel like it’s too far in the future, you want to start making your plans as rapidly as probable. The sooner you begin, the earlier it will be that you can retire & relax.
If your employer has a retirement plan, then work with it as much as you could. If you ever have the income to spare, then stick it inside your retirement plan. An employer’s retirement plan is a excellent idea due to the fact there will be much lower taxes and the employer could match your savings as well.
An noticeable tip in regards to retiring is to make certain you start saving for your retirement. A good deal of individuals make the mistake of not saving for their retirement after which find themselves in a bit of a pickle for the reason that they do not have sufficient funds obtainable to them when they are older.
Figure out what is necessary for retirement. You won’t be working, so you will not be making revenue. On top of that, retirement isn’t reasonably priced. It’s estimated that prospective retirees should save between 70{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} and 90{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} of their revenue to live at their present standards after retirement. This is why it is a fantastic thought to plan ahead of time.
Should you take a large amount of medicines and are living on a solved earnings in retirement, look into a mail order drug plan. These plans can help you to get a three to six month supply of up-keep medications for fewer than the drug shop charges. You also get the convenience of home delivery.
Do not be afraid to ask questions. Sadly, the situation quite a few men and women face today is merely not knowing sufficient about their retirement options to make a choice. Ask friends, family, & coworkers about their retirement plans & your obtainable alternatives. You’ll be shocked to study that there is a world of possibilities waiting for you.
Start saving for retirement as early as you are able. The earlier you start saving, the better. Every tiny bit helps. The longer you have that income in a savings account, the more it can grow. How much you have saved will make a enormous difference when you actually do retire.
Use one a retirement calculator to figure out how much income you need once you retire. You can find straightforward to use calculators online. After you input all of the relevant facts, you’ll know how much you want to save as a way to keep up your present common of living.
Make realistic plans and set realistic goals for your retirement. Do not set your sights unrealistically high, & be honest about how much you are going to want to preserve your standard of living. Sit down and plan a budget for yourself. Reliant on that, decide how much you’ll need before you could retire.
You might think you’ve an unlimited degree of time post-retirement. Although, it is awesome how quickly time begins to fly. Making advance plans can assist you use your time wisely.
If the thought of retirement bores you, bear in mind becoming a professional consultant. Use whatever you’ve spent a lifetime studying, and employ yourself out for a handsome hourly fee. You could make your own hours, & it will be fun teaching others about your expertize. The money you make can be saved for a rainy day or put toward immediate costs.
You can automate your savings! Most items today may be automated and your retirement savings are the same way. Automated choices help you make those investments when you just seem to forget. This will permit your nest egg to start growing without you wasting any time looking into it. This is a remarkable concept for any wise saver.
Once you identify what you want for retirement, think of living a way of life to the one you right now have. Going to work now comes with added costs, yet you could anticipate your retirement funds need to be about 80{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} of what you pay for points now. When your retirement basically comes about, you’ll need to rein in the impulse to spend a lot more on your leisure activities.
These suggestions are all created to be helpful to individuals who wish to retire. Take the time to evaluation them again & start preparing. You’ll feel a great sense of relief realizing that you’ve planned for this special time inside your life. Don’t wait to commence working on it.
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In this video, I show you how to calculate and estimate your retirement fund using two simple methods:
1. Capital preservation
2. Capital utilization
In the calculation, financial calculator HP10BII is used. This is presented as a case study. A reader asked about the following retirement questions:
1) What is the amount of money that I need to accumulate before I
retire and if I live to 75 years old. I would like to have a tidy sum
of MYR8K per month for my expenditure.
2) Same question as the above except that I would want to retain the
full cash value (or principal amount) to my descendents when I pass on.
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Related Retirement Funds Articles
The earlier you start putting money back for retirement, the better your golden years will be. And if you have been faithful in participating in your employers 401K plan, you can start to some serious money begin to build up as you realize the vesting of the employer matching funds and you continue to make your contributions month after month. It can get pretty exciting when you get those statements and you see your retirement fund really start to take shape.
But your career in business can take a lot of twists and turns along the way. And sometimes you change jobs for a lot of reasons. But the question comes up then; What happens to my 401K money if I leave before retirement? The good news is that you do not lose it. The 401K program is federally monitored and once those funds go in there, they are yours if you are vested in them.
But if you move jobs several times during your career which is very common in the modern business marketplace, if you do not take some action, you can end up with retirement money scattered over all of your last jobs which is messy and makes for a nightmare to keep track of. It would be better if you can make your retirement money walk with you so you know where it is and you can keep all of your retirement planning funds in one place so you can take advantage of them all at once when you are ready to retire.
When you first leave your employer to go to another company you are given a couple choices of what to do with your retirement funds. One option is to leave them behind to catch up with them decades later when you are ready to retire. In addition to wanting to keep this important asset with you as you travel from job to job, you have no idea if that employer will even be in business when you are ready to retire. You do not need that kind of uncertainty when it comes to your retirement money. A Beginners guide.
Another option that is offered to you is to cash out your 401k and withdraw the results. While this may be attractive if you are between jobs, it is really a bad idea. For one thing, the laws governing the 401k call for you to pay a large penalty if you withdraw them before retirement age. Not only that, once you take that money out of your retirement funds, it is gone and your retirement planning will suffer a serious set back.
A very good option that is available to you is to roll your current 401K over to your new employer. Now if you left the last job without a new employer either through termination or leaving to start your own business, that may not be an option. If you are looking for a new job and think you will have one in the next year or so, you can leave your 401k money where it is and transfer it later though. In that way, your 401k continues to accumulate as one fund, not many.
But a third option is to roll the 401k money into a tax sheltered privately owned retirement fund. You own this account and you usually have an investment management company helping you with the investment and protection of that money until it is time for you to retire. This is an outstanding option because that investment company works for you so you call the shots about your retirement money. And if you use this option, you can still start with a new 401k fund at your next employer knowing you have a place to put the funds in the event of another change of jobs. And that puts you in the drivers seat which is a very good feeling when it comes to retirement planning.
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Over two million consumers filed for bankruptcy last year. Before you decide that you need to file for bankruptcy, as a consumer you should do the research and find out exactly what it is and whether you are truly in need of it. There is a difference between consumer bankruptcies and municipal bankruptcies. Consumer bankruptcy is the most common since it involves things such as credit card debt, medical bills and car loans. One of the few things not covered by bankruptcy, no matter the type, is secured loans such as student loans or child support.
Municipal bankruptcy is where a city, town or even school district files for bankruptcy. At one point in time, it was called Adjustment of Debts of a Municipality and is now under chapter 9. Sometimes, depending on which chapter the consumer bankruptcy is filed under, you could be able to keep your things after you file. Basically if, after financial counseling, you are deemed qualified to file, then you need to decide which chapter is right for you.
Chapter 13 allows the consumer to keep everything they owe money on while obliging them to pay over a certain amount of time, usually three to five years. Consumer bankruptcy tops the list as far as bankruptcy goes because it seems as though everyone is a consumer of some sort. However, there are options such as pre filing counseling and there are wonderful agencies that do debt consolidation to help get you back on your feet.
Once you get the ball going in that direction it is hard to stop it. There is one way that you can lessen the amount of time you are in a bankruptcy situation though.
If you file for chapter 13 bankruptcy you generally have between three and five years to pay off your debts and charge off your bankruptcy. Chapter 13 bankruptcies are required to give a pay off amount. This means that when you file a chapter 13 there is a pay off amount given for the total balance of the bankruptcy. If you have a home you can choose to use the equity in your home to pay off the balance of your chapter 13 bankruptcies. You can do this by either refinancing your existing loan, or getting a home equity line of credit. There are benefits to either option and the choice really will depend on what fits your family, and financial ability.
Often times you can find a lower interest rate for your home loan then the one you currently have which will save you money and allow you to have a longer time to repay your loan. You may also be able to lower your monthly payments as well, which can help you during this financial strain. The biggest key factor to being able to do this is that you ensure that when you file your chapter 13 bankruptcy papers you are allowed to incur debt while in bankruptcy status. If you are not allowed to incur debt then you will be unable to refinance or get an equity line of credit.
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A good retirement fund company will know the way to use the investor’s cash to purchase and sell large quantities of instruments. The purpose of fund corporations is to extend their profit markups. The individual who invests on funds also has a corresponding objective of squeezing maximum profit out of it. It is a win win situation, only if you know the way to make the best from investing in hedge funds and so saving your cash from being wasted. When choosing funds , be absolutely certain to pay attention to your goals and ambitions in order that you can invest in the right fund. Start your investing when young.
Making an investment in retirement funds has appeared as the new jargon among clients so as to save cash. for first time backers it needs a dash of information about the current market eventuality. You want to bear in mind that when you’re purchasing funds you are investing in the stock of a concern. You want to beat the art of maximizing returns and minimizing risks to benefit most by making an investment in retirement funds. Apropos variety, suppleness and liquidity hedge funds are maybe the most suitable choice.
A media poll confirmed that retirement funds are the most well liked decisions among investors basically due to its risk free nature. Retirement funds have its own share of advantages , which make it a preferential choice among most backers, large or small. Many folks see it as an efficient tax saving tool. Funds have in fact, had priority over the conventional options of countrywide saving certificates and public prudent fund to economize.
If you’re a starter, there are numerous courses which should give you a undoubted mine of info on how you should purchase and sell your hedge funds to remove the maximum profit and save cash through investing. Investments for beginners.
Higher risk mutual funds, however, work best when you want to make short-term investments. The Internet these days is replete with information on mutual funds. Even investors with no investment experience go for mutual funds to save money. Many consider award-winning funds as the most suitable investment option for people. But you need to bear in mind that the funds falling in the award-winning category may not suit your interests best.
Careful fund management and proper market survey can go a long way in helping you to save your taxes through mutual funds. Do not be hesitant to take the help of mutual fund brokers in case you are not sure about whether you are taking the right move or not.
Winning the battle of life becomes more simpler with making an investment in funds. So it is smart to take a position in funds to make you able enough to sail through even the worst finance scenarios of life without having any strain.
If retirement blues is haunting you or you are concerned about your child’s future take heart. With making an investment in funds you are able to save enough cash to conduct a cheerful and tranquil life. Let mutual funds make sure that you don’t work for money, instead the cash works for you.
Where to Invest Your Money [Fool.com: Retirement Center]
www.fool.com/retirement/retirement02.htm
Repeat after us: “Retirement savings are for retirement.” Again. “Retirement savings are for retirement.” Why this mantra? Simple: The best place to put your …
How should I invest the money? – Ultimate Guide to Retirement
money.cnn.com/retirement/guide/basics…moneymag/index3.htm
To build a nest egg large enough to see you through retirement, which may last 30 years or more, you’ll need the growth that stocks provide. The stock market …
Planning for Retirement – Money 101, Lesson 13 – Money Magazine
money.cnn.com/magazines/moneymag/money101/…/index.htm
Money’s guide to planning for retirement: Here are the top 10 things you need to … How should I invest? … How can I get the most out of my money in retirement?
First steps for retirement … – Virtues of the 401(k) – IRA investment advantages
Best Retirement Investments – Money Over 55 – About.com
moneyover55.about.com › … › How to Invest › Retirement Investments
If you’re searching for information on retirement investments you’re probably looking for an investment that will provide income for you. If so, you’ve come to the …
HowStuffWorks “How to Invest Your Money After Retirement”
money.howstuffworks.com/…/retirement…/where-should-you-keep-…
How should you invest your money after retirement? Learn how to invest your money after retirement at HowStuffWorks.
How to Invest Wisely for Retirement | Nolo.com
www.nolo.com › … › Retirement Planning and Investing
401(k) plans, 403(b) plans, Keoghs, IRAs, and SEP-IRAs allow you to defer income tax on money you put aside for retirement. In addition to investing money that …
Retirement Planning – SmartMoney.com
www.smartmoney.com/retirement/planning/
Retirement planning help and advise from the personal finance experts at … To get a clearer picture of your money, consolidating old workplace accounts to an …. these funds—often billed as the only retirement investment you need—may .
How to Invest for Retirement – SmartMoney.com
www.smartmoney.com/invest/…/how-to-invest-for-retirement-…
May 18, 2011 — Investing for retirement is more complicated than opening an IRA or maxing out your 401(k).
Catch Up on Retirement Savings – Money Into Investments … – AARP
www.aarp.org › Money › Saving & Investing
Nov 19, 2012 — When it comes to saving for retirement, many folks have a lot of catching up to do. But building your next egg isn’t a lost cause.
Retirement savings, investing and contributions – MSN Money
articles.moneycentral.msn.com/RetirementandWills/InvestForRetirem…
Saving for retirement. Advice on 401(k)s and other retirement investing choices … (34 messages). Join the conversation on the Your Money message board …
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If you’re like many people these days you have a least some issues regarding your personal finances. Far too many people are living paycheck to paycheck and are barely keeping their heads above water. These people often find themselves being just one missed paycheck from financial disaster. History shows financial disasters.
Perhaps you are only making the minimum payment on your credit cards each month. You could be one of the unfortunate people who are finding they need to use their credit cards for regular expenses like groceries. Or maybe you just feel like no matter how much you make, you seem to spend it as fast as you get it.
Whatever your situation you probably just want to regain control of your personal finances. There is the way to control your spending, get out of debt and build savings. Yes. I said it. Build your savings.
There is a relatively simple way of taking back control of your money. Like all endeavors, it starts at the beginning. Here are the Top 10 ways to begin to get your finances under your control.
1. Decide to do it.
This can be as hard or as simple as you want it to be. There are many people who will read this article with the intention of taking back their financial future. Too many will read all of the suggestions and then they will do nothing. Don’t be one of those people. Make your decision now.
2. Commit to do it.
Unlike the 1st suggestion, this one may not be as easy for some. Only your commitment to take control of your finances will lead to success. You can’t wish it, want it, hope for it or just say you’ll do it. You must commit to doing it and committing means taking action immediately. Like as soon as you are finished reading this article. You will only succeed by taking action.
3. Make a list of all spending.
No, I didn’t say expenses, I said spending. All of it from food, prescriptions, credit cards, mortgage, car payments and car insurance, newspaper and magazine subscriptions, etc. Take your time. It is likely that you will miss a few things the first time you sit down to make your list. Don’t worry about that. You can always add in the things you may have forgotten later on.
4. Really know where the money goes.
Now, you might think I’m repeating number 3 but I’m not. The best way to know where your money is going is very simple. For one month you will record in writing every check you write, every credit card purchase and every dollar and cent that you spend. This is the only accurate way to know how much you are spending each month.
5. Separate the needs from the wants. Like step 1, this step will be as easy or as hard as you choose to make it. But it is very simple. Food = need. Fast-Food = want. You don’t need expensive clothing, shoes, etc. You want them. If you’re committed to this, you’ll find that your wants are things you can do without, at least for a while. Master this and you’ve gone a long way to regaining control of your finances.
6. Make a realistic budget.
And stick to it. It is not about depriving yourself but it is about money management.
7. Pay yourself first.
Yes, you’re reading that right. You get paid first. This will become what the rest of the world calls savings. It is to be used for your future or unplanned emergencies should they arise and too often they do. Having some money in the bank can help cushion the blow.
8. Find ways to save on your needs.
If you want control of your spending then rid yourself of any issues you may have about shopping at discount stores, using coupons any buying store brand items over name brand.
9. Reduce your debts.
To reduce your revolving debt such as credit cards, you should either pay off the smallest balances first or pay off the debts with the highest interest first. There are different schools of thought on this, but you have to decide which is best for you.
10. Set goals and when you reach them, reward yourself.
This last one may sound contrary to all the suggestions that have come before, but it is not. As I said in number 6, this is not about depriving yourself. It’s about properly managing your money. If you’re following these suggestions and succeeding in getting back control of your money then rewarding yourself a little now and then is a good thing. It adds incentive to reach your goals.
And there you have it. The top ten ways to begin gaining control of your personal finances and in doing so, take back control of your life. It’s your money. It should under your control.
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A good retirement fund company will know the way to use the investor’s cash to purchase and sell large quantities of instruments. The purpose of fund corporations is to extend their profit markups. The individual who invests on funds also has a corresponding objective of squeezing maximum profit out of it. It is a win win situation, only if you know the way to make the best from investing in hedge funds and so saving your cash from being wasted. When choosing funds , be absolutely certain to pay attention to your goals and ambitions in order that you can invest in the right fund. Investing 101 is agreat beginner’s guide!
Making an investment in retirement funds has appeared as the new jargon among clients so as to save cash. for first time backers it needs a dash of information about the current market eventuality. You want to bear in mind that when you’re purchasing funds you are investing in the stock of a concern. You want to beat the art of maximizing returns and minimizing risks to benefit most by making an investment in retirement funds. Apropos variety, suppleness and liquidity hedge funds are maybe the most suitable choice.
A media poll confirmed that retirement funds are the most well liked decisions among investors basically due to its risk free nature. Retirement funds have its own share of advantages , which make it a preferential choice among most backers, large or small. Many folks see it as an efficient tax saving tool. Funds have infact, had priority over the conventional options of countrywide saving certificates and public prudent fund to economize.
If you are a starter, there are many courses which will provide you a veritable mine of information on how you can buy and sell your mutual funds to extract the maximum profit and save money through investing.
Higher risk hedge funds nonetheless, work the best when you would like to make short term investments. The web nowadays is replete with information on hedge funds. Even financiers with no investment experience go for hedge funds to economize. Many consider prize-winning funds as the most acceptable investment option for folks. But you want to don’t forget the funds falling in the prize winning class may not suit your interests best.
Careful fund management and correct market survey can go a good distance in helping you to save your taxes thru hedge funds. Don’t be reluctant to take assistance from mutual fund brokers in case you aren’t sure about whether or not you are taking the correct move or not.
Winning the battle of life becomes all the more easier with investing in mutual funds. So it makes sense to invest in mutual funds to make you capable enough to sail through even the worst financial situations of life without having any tension.
If retirement blues is haunting you or you are concerned about your youngster’s future take heart. With making an investment in funds you are able to save enough funds to conduct a cheerful and relaxed life. Let funds ensure you don’t work for cash, instead the money works for you.
Your retirement income investment is what you will use to live out the rest of your life without taking on work in any active capacity so it is important to protect these funds as they will be the funds that provide your livelihood for the remainder of your years. Ordinarily, with so much importance resting on your retirement funds, one would prefer to buy a sack of gold and simply go to sleep daily with it under your pillow everyday.
Since you do not have the luxury of falling back on your monthly salary anymore, once you retire, you have to make your investments in such a manner that it supports your post-retirement lifestyle. Your investments should be geared to reap in maximum income during those golden years.
The wisest thing to do is to keep your retirement income investment safe to assure you of a long-term source of funds once you retire. Make sure you research on the companies where you are putting in your retirement money so you can be assured that even with economic ups and downs, you will still have your investment to see you through your retirement age. Investing your retirement money in risky ventures is not advisable.
The best option is to invest in fields which operate independent of market upheavals and adverse economic conditions. In fact, one of the biggest problems of using retirement income calculators is that it gives the user absolute value without taking into consideration the future economic factors which may depreciate the value of money. Most people make the mistake of taking their suggestions purely on face value.
Select a strategy that places your retirement investment income in areas that fit in with your situation. Sure the rate of return might be the lowest but you will have a great degree of flexibility investment-wise not to mention enjoying the peace of mind which comes with such a strategy.
You should make sure that the bulk of your retirement income investment is in tune with your strategy. You should also learn to match income with expenses and make sure that your budgeted funds will last you the year. You don’t want a plan that leaves you short halfway through the year and cannot even support a comfortable lifestyle.
It is best to have extra income for unexpected expenses during retirement. This is where computations will play a great role because if you compute for your exact expenses vis a vis your projected income without providing a little extra for emergency expenses then you will have a problem looking for extra funds later on. Average may be useful but make sure you compute with your lifestyle expenses in mind. Retirement expenses.
People say that staying away from inflations is not possible. But you can evade inflation if you avoid making investments in areas which offer little or no return. This way you ensure safety of your investments which no amount of inflation can touch. You must think of the growth of your investment in future years so that despite poor economic conditions you remain in the cosy comfort of your sound financial judgment. Making your retirement income investment safe and secure is your responsibility. Start planning for it today, without wasting anymore time. Start Retirement here now!
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Thousands of Britons could be set to take their initial steps towards getting to grips with their finances later this week, it has been suggested.
The news comes as Axa officially launches My Budget Day this upcoming Wednesday (November 21st), which will see employers give their staff an hour off during their working day to manage and plan their finances. And with an estimated 250,000 people set to take part in the event, many consumers could find that taking such time may help them to manage their money better and get into a more advantageous position to make repayments on loans, utility bills, mortgages and other sources of financial demand.
Meanwhile, research carried out by the firm earlier this year revealed that just under half (49 per cent) of business leaders would consider giving their staff regular time to manage their money. In turn, Axa claimed that even more people could be able to handle their finances better in coming months. As a result of spending an hour each month to review their monetary situation, it was suggested that the average person could save themselves 1,300 pounds over the course of a year, which could help consumers pay off homeowner loans, improve their property or invest into a savings account.
Commenting on My Budget Day, Steve Folkard, spokesperson for Axa, said: “Spending an hour a month on your finances isn’t long but it can make a huge difference to your financial situation. Just sitting down and reviewing your money is a crucial first step to saving some cash. So we’re asking everyone to take part in My Budget Day and make a habit of finding just one hour in a month when they stop and review their finances.
“To kick start My Budget Day we’re hoping most people will be allowed by their employer to take time off work to review their financial situation. We’re asking employers to get behind the initiative and support their employees in this task.”
Richard Lambert, director general of the Confederation of British Industry, added that it is “clear” that employers need to take the time to ensure the wellbeing of their employees. He also pointed out that there are already a “lot of companies” considering how best to offer financial guidance to their workforce on possible areas ranging from personal loans and credit cards to savings accounts and setting up budgets. Such advice, Mr Lambert reported, could also help to improve morale among staff.
As a result of taking such time to review their finances, consumers who discover that they are developing difficulties in meeting spending commitments may wish to consider taking out a debt consolidation loan. Such a loan could be particularly needed by those living in London, as a study by Callcredit indicates that the six most-indebted postal areas in Britain are all within the capital. Those from Ilford, Uxbridge and the east of the city are among consumers owing the highest proportion of money. Other areas reported to be struggling with debts include Liverpool, Birmingham and Motherwell.
In today’s culture, it’s very easy to compartmentalize our lives. In fact, many organization specialists say that this is the best way to keep track of the many elements of our busy lives. That’s because having a system works.
But you need to keep in mind that all the areas of your life are linked. For instance, poor relationships can cause serious health problems. And poor parenting skills will hurt your children’s chances for success.
Well, your finances are part of your overall world. When other areas are negatively hit, it causes serious problems with your finances. With that in mind, there are two habits most people don’t connect to finances, but I’ve found will often cause major financial trouble.
The two habits are not going to church and sexual immorality. I know that sounds off the wall. Most of you are probably saying, “Those have nothing to do with finances.” But they do. In fact, I’ve seen how both of them can work together to destroy your finances.
While this principle is one I’ve seen over and over again in practice, there is a Scriptural basis for the connection. Hebrews 13:1 says, “Let love of the brethren continue,” which means you need to continue fellowshipping with believers on a regular basis. Then in verse 4, the same chapter discusses adultery. And verse 5 discusses the love of money.
While these verses don’t draw a direct connection, it does discuss them together. And I believe the practical connection illustrates a biblical truth: When Christians stop going to church and fellowshipping with believers, they fall into all kinds of trouble. And the consequences of their sin often result in financial problems.
In fact, in my experience, I’ve seen immorality push people out of church. And I’ve seen it destroy their finances. I know of one couple that recently divorced because of marital infidelity and both of them are struggling financially. And, at one point, both of them pulled out of their church.
I’ve seen other cases where a Christian couple wasn’t tied into a church and the husband got involved in Internet immorality. He soon lost his job and put his family in serious financial trouble.
One habit doesn’t necessarily mean the others will always happen. I’ve seen very godly people who were very involved in church go through terrible financial times (Job is a great example). But, as trends go, I’ve seen a lot of cases where all three go hand in hand.
The good news is you can save yourself from a lot of heartache and financial ruin simply by staying closely plugged into a group of Bible-believing Christians. They can help you stay out of immoral situations with personal accountability and help you through any tough times that do come along.
William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour.
WILLIAM ACKMAN, Activist Investor and Hedge-Fund Manager
We all want to be financially stable and enjoy a well-funded retirement, and we don’t want to throw out our hard earned money on poor investments. But most of us don’t know the first thing about finance and investing. Acclaimed value investor William Ackman teaches you what it takes to finance and grow a successful business and how to make sound investments that will grant you to a cash-comfy retirement.
The Floating University
Originally released September 2011.
Additional Lectures:
Michio Kaku: The Universe in a Nutshell
Joel Cohen: An Introduction to Demography (Malthus Miffed: Are People the Problem?)
Steven Pinker: Linguistics as a Window to Understanding the Brain http://www.youtube.com/watch?v=Q-B_ONJIEcE
Leon Botstein: Art Now (Aesthetics Across Music, Painting, Architecture, Movies, and More.)
Tamar Gendler: An Introduction to the Philosophy of Politics and Economics
Nicholas Christakis: The Sociological Science Behind Social Networks and Social Influence
Paul Bloom: The Psychology of Everything: What Compassion, Racism, and Sex tell us about Human Nature
Saul Levmore: Monopolies as an Introduction to Economics
Lawrence Summers: Decoding the DNA of Education in Search of Actual Knowledge
Douglas Melton: Is Biomedical Research Really Close to Curing Anything?
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A lot of people wish that they could earn a living from home. They are always looking for ways to make money online. There are many ways that are very profitable but there are also many ways that are not very profitable. It is very frustrating when someone is constantly trying different things that do not work.
Article writing is one way that a person can make a pretty good income. Not all individuals are able to do this type of thing though. Some people do not know how to spell good or use good grammar. This would probably not be the best job for these people. Articles can be written any time. Most writers choose their own hours and articles too.
Selling products is a great way too. People need to have marketing experience usually to make this work over a long period of time though. Online auctions are a good possibility when selling things. A website that can promote certain products is a great option too. People can buy products cheap and make a good profit off it if they do it right. They are going to want to buy things that will sell quickly so that it does not have to be stored.
Online marketing is a great option for some people. Some companies offer what seems to be a great opportunity. It may take too much money to get started and lots of time. Some of these opportunities will take right off and people make a lot of money. Not everyone is able to do this with every company that they choose. It may be possible to make a lot off of them but it may take a lot of investment.
Data entry is another possibility. Not everyone is able to do this easily though. The companies that hire people for this may require the person to look up all of the information on their own that needs to be entered. Others may have a list of things that they want put into a spreadsheet or a database. Some of these jobs are huge while others are smaller.
Becoming a member of a website that promotes certain jobs is another possibility that people will take advantage of. Sometimes, these are a great option but not always. It is important to be careful when taking the jobs. Do not do a lot until they have proven that they will pay.
Certain companies might charge to allow a person to work for them. It can help a person create an income but if the fee is too high, it will not help them much. If the person only makes a little over what the fee is that is being charged, it may not be worth doing all of the work. Freelance websites allow people to bid on jobs too.
There are many legit ways to make money online. The problem is that there are just as many or more companies that are scamming someone. It is important to research these companies before paying anything or doing a lot of work for them.
The question how can i make money online is one asked by many people suffering from economic woes. You can learn more about how to make money online by accessing our website online now. Get your own completely unique content version of this article.
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In today’s highly competitive job market, it isn’t easy to find a job after getting a graduate degree. People are completing post-graduate studies before they start working. This means that the average Indian worker is around 23 years of age when he enters the job market. He has 25 years to make enough money to last him for the rest of his life. By the time they turn 58, people are ready to retire. However, once retired, people still need money for their rent, maintenance, groceries, and the other basic necessities of life. The money we earn today, even if we save a majority of it, won’t be enough to keep us going through out retired years. One way in which people try to make enough money for their retired life is through investments. Start Planning Retirement Now.
Mutual funds are quickly gaining popularity in India, despite the Harshad Mehta scam of 1992. There are numerous funds available to all kinds of investors, and for those who are planning their retirement there are specific retirement funds available. Reliance MF has recently also entered this arena, joining companies like UTI MF and Franklin Templeton. The Reliance retirement fund invests 35{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} or less in debt and money market securities, and 65{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} in equities. The other two funds invest only 40{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} in equities, and the rest of the money is put in fixed income instruments. The only drawback that the Reliance fund comes with is that if the investor chooses to withdraw from the fund before the age of 60, he or she will have to pay a 1{3813292df256cc7359db914c8bfffc508a0964aa786224d36d2cb21f4b33d600} exit fee, which can really cut into their retirement savings. It has a compulsory five-year lock in period, but as pension funds are long-term funds, this isn’t really a drawback.
The point of investing in these funds is to make your money work for you. The money invested will give you certain returns that will help tide you over from retirement to the end of your days. The working youth are being encouraged to start investing small amounts as soon as they start working. This ensures that by the time they reach retirement, they are financially secure. The Reliance pension fund gives more returns at a faster pace and is better suited for those already in their 50s. On the other hand, the UTI MF and Franklin Templeton pension funds are safer, and work a little slower. These funds are better for those in their 20s and 30s who have just started working, but are looking to secure their finances from the start. Before investing your money anywhere, always remember to read the fine print.
Nutella Bread Recipe: https://www.youtube.com/watch?v=8eHPkpCGdEY
Watch more How to Manage Your Money videos: http://www.howcast.com/videos/169336-How-to-Set-Up-a-Retirement-Savings-Account
It’s never too early — or too late — to start saving for your retirement.
Step 1: Know your rights
Realize that even if you are already contributing to your company’s 401(k) plan, you are free to establish an individual retirement account, or IRA, as well.
Step 2: Think about a Roth IRA
Weigh the advantages of a Roth IRA. Taxes are taken at the get-go so you can withdraw money tax-free in your golden years. You may remove money, penalty-free, before age 59.5 for certain reasons, like buying a home, you may keep your money in it as long as you like, and you may continue paying into it past age 70.5 if you have earned income.
Step 3: Consider an IRA
Consider a traditional IRA, which lets you defer paying taxes on the money you invest until you start withdrawing it at retirement. You can’t contribute to an IRA past your 70th birthday, and you must begin taking distributions six months after that.
Tip
To qualify for a Roth IRA, your modified adjusted gross income can’t exceed a certain amount. Check the Internal Revenue Service website (at “irs.gov”:http://irs.gov) for current limits.
Step 4: Investigate providers
Find an IRA provider to set up your account. Options include banks, brokerage houses, mutual fund companies, credit unions, and insurance companies. Banks and credit unions put money in CDs, insurance companies park your IRA dollars in annuities, and brokerage and mutual fund companies let you pick stocks, bonds, and funds.
Step 5: Ask about fees
Before picking an IRA provider, ask about fees and commissions.
Step 6: Diversify your investments
Diversify your investments so that you’re mixing stocks (both U.S. and foreign), bonds, real estate, and commodities. Check out the index funds offered at brokerage houses; they offer low-cost diversification.
Step 7: Learn about self-directed IRAs
If you’re financially savvy and want to be a real estate speculator or help finance a new business, consider opening a self-directed IRA, which allows you to grow your retirement fund in nontraditional ways. To open one, search online for “self-directed IRA custodians.”
Step 8: Make investing automatic
Make contributions to your IRA automatic by having them withdrawn from your bank account or paycheck.
Step 9: Put in the maximum
Put in the maximum allowed every year. You’ll thank us later.
Did You Know?
Thirty-nine percent of Americans have an individual retirement account, according to the American Association for Retired Persons.
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