Tag Archives: retirement

General Investing

4 Advantages to Investing Early for Retirement

There are a lot of reasons why you should get started but the four advantages to investing early for retirement listed below are definitely reason enough to get you going.

When you invest early on there is more time for your money to earn returns and grow. There are forty years between the time you’re twenty and the time you’re sixty–and that’s a lot of time for whatever you can put into an account to earn yearly returns and become something you can live on.

There will always be something else you should be spending your money on, so it’s better to get into the habit of taking some out for retirement now than having to figure out how to afford it when you have two kids, a mortgage, and a car loan on your back.

If you don’t take advantage of your 401k contribution match from your employer the money is literally just passing you by. This is a benefit at your job that you won’t be seeing anywhere else so you’re losing money by not taking advantage of it. You won’t be able to start saving ten years from now and ask for all that money you missed out on then. If you don’t have a lot of cash right now then taking advantage of the contribution match is a great way to set a minimum goal for how much you want to be investing right now.

The earlier you start saving the more you’ll have when you reach retirement age, and the better chances you’ll have of being able to retire early. While this may seem like a long ways off now, once the time comes you’ll be very grateful that you were smart enough to think of this ahead of time. The earlier you can retire the sooner you can spend your days doing whatever it is you don’t have enough time for now.

General Investing

Make Sure You Get Best Annuity Rates For Your Retirement Plans

Nowadays, opinion about annuity is not just for older people, like it used to be. Most of the people think option their even before they start working. At the start, it is significant to identify what exactly annuity is. An annuity is a contract, where individual or a company, generally a life insurance company (it can also be a charitable trust) agrees to pay the other person, the receiver, a series of income payments. There are various forms of annuities; they depend where you actually live. At the time of searching for a best annuity rates, it is necessary to identify that annuities generally start with high rate and after a year can start to fall.

The good thing is that today, you can measure rate easily, even on the net. It is also significant to know that annuity rates today are usually deferred or direct rates. Deferred rates are lasting and they are designed to support you raise your assets and give fixed income once you get retire. On the other side, direct annuity rates will start paying monthly to you, as soon as you deposit your money to insurance company. Searching for best annuity rates can be not only tiring, but also difficult, so if you cannot manage your funds alone, it is good to search for a trusted financial consultant who can help you out to come on a best conclusion.

It is important that study the terms and conditions of the contract signed between you and the broker. As there are penalties for taking out your funds from this type of savings before the agreement is ended. This penalty can be harsh depending on the category of contract you have selected. Obviously, it is good to invest at the time when rate of interest is high. Long term annuities will give you a higher interest rate, but the early withdrawal penalties will be high. Alternatively, a temporary commitment for payment will settle down on early withdrawal fines, but you can look forward to a lower interest rate.

Because of the different types of financial disasters which gave surprise to lots of people, it is getting important to plan for the future. Therefore, there is no wonder that people feel knowing something or everything about the best annuity rates and how it is possible to acquire of investing in annuities. It’s truly easy and if couple of things are kept in mind you may be possibly enjoying some really surprising rates that are can create jealousy to others. There are other plans of retirement annuity as well and you can ask best annuity ratesfor additional information on them for all the annuity plans. Speak to the expert in best annuity rates in case you are having any queries.

Market Analysis

Protect Retirement Accounts And Eliminate Inflation Worries With a Guaranteed Income Pension

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Many people are worried about inflation in the near future and how this can affect our cost of living. Oil and energy are on the rise and with interest rates at a all time low. This is a valid concern that needs to be addressed. Those of us that are in the work force today should be concerned with inflation, however it will not have as much devestating affect us than on those that are retired or soon to be retired. If inflation goes up, so will our income. Retirees on the other hand have a set limited income base on which to live on and inflation can cause them to make major adjustments. If retirees have their money in the market they are exposed to the huge up and down swings the market has been experiencing the past few years. Alway remember that the market is a gamble, it has potential to grow fast, however it also has potential to have huge loses. Do you want to put your nest egg in this type of predicament.

I would strongly recommend against this strategy.If retirees have money in a bank CD, they have seen their return go from 5% to 1.5% in the past 5 years. Not a good source for income if you interest keeps dropping so does your income. Example a $100,00 CD at 5% payes $5,000 a year in interest, the same CD at 1.5% pays only $1,500 per year. If you were relying on your interest as a source of income, you income dropped from $5,000 a year to only $1,500. Thats why we recommend to consider a guaranteed pension style income. This type of retirement plan eliminates the worries about inflation, stock market volatility and low interest rates. You know that once you retire you will get a guaranteed paycheck for as long as you live. Knowing exactly how much money you can count on every month will make it easy for you to design the retirement life you want.

This year with the new law that allows us to rollover our qualified IRA’s and 401(k)’s into a Roth, with two years to pay the taxes owed. This will make retirement even better if no income tax has to be paid on income from our retirement accounts. So for some not all, you can roll over you retirement accounts into a tax-free retirement account, develope a pension with this money were you will recieve a guaranteed income check for the rest of your life and that money in turn will be also tax free.