Inflation is a reality in all economies, and generally occurs for one of two reasons, know as “cost-push” or “demand-pull.” Businesses and companies that want to retain their employees have to insulate them to some degree against the rising and falling of the value of a dollar. This means that few people will generally feel the full effects of the rising costs of living throughout the course of their working lifetime. The people that do generally feel and understand its full effect are elderly or people living on a fixed financial base of some kind. Here is a brief overview …
The Good and Bad of Retiring Early
This year has forced some to think about retiring early. When it comes to retiring early, some of the benefits are obvious: you get to live your life without the constraints of work, and you are able to pursue your own interests. But there are other good reasons for retiring early, and there are some reasons why retiring early is not the greatest idea. Your Dedication is GoneOne of the good reasons to retire early is that you are simply not dedicated to working anymore. When you are no longer emotionally interested in working, your performance deteriorates and your company …
HOW TO INVEST YOUR HOUSE DOWN-PAYMENT
I often get asked how to invest the down payment for a home purchase. If you live in a high cost of living city like Los Angeles, San Francisco, or New York, like many of my clients do, then the down payment is often hundreds of thousands of dollars, and it takes more than a few years of savings to accumulate. Home prices have skyrocketed over the past several years, and even more so during 2020 where buyers got cabin fever during the covid-induced quarantine and bid up home prices more than usual. A lot of people feel like they are …
Avoid Overspending During the Holidays
It is not surprising that the holiday season is one of the most expensive for individuals. Gift-giving, decorating and holiday treats can tap into the budget if a few general rules are not followed. Here are five tips to avoid overspending this holiday season. Set a Strict Budget To alleviate the stress of spending over the holiday season, a strict budget should be set even before the holiday season begins. If a person is giving gifts to a few individuals, their names can be written down and a budget planned for each individual. A decision should be made on how …
What You Need to Know About IRA and 401k Contributions In 2021
The Internal Revenue Service recently reported changes to the 401k and IRA. The agency’s announcements to Congress issues new regulations. Each alteration will impact retirement accounts and 401(k) contribution limits in 2021. Here are a few things Americans need to know regarding their announcement. What Savers Can Expect Most 401(k), 403(b), 457 plans, and Thrift Savings Accounts will be within the same framing as before. The current rules would allow people age 50 and over to save money by contributing $19,500, or $26,000 to a traditional IRA. Likely, regulations will not change for SIMPLE retirement accounts. They typically maintain $13,500 …
Don’t Let Short Term Events Change Your Investment Goals
With every change in the world, there always seems to be the temptation to make an impulsive financial decision, especially when it comes to investing. This year especially was difficult for investors who made such decisions when the coronavirus hit hard and upended the stock market bringing a lot of panic selling with it. Events like the coronavirus and this year’s presidential election are always impactful when it comes to investor markets, but you need to be careful about investment decisions made solely on market movements. You can keep your long-term goals and continue building wealth if you follow certain …
Avoid Covid-19 Medicare Scams
Older Americans on Medicare have become the focus of criminals. According to government officials, they are now utilizing various fraud schemes associated with the coronavirus pandemic. The common goal of these criminals is to get an older person’s money or Medicare number. In recent months, the Department of Health and Human Services Office of Inspector General has received over 1,400 fraud complaints associated with Covid-19. The office also acknowledges that many frauds often go unreported. This is because the victims are too embarrassed or they may not know how or where to report what happened to them. Avoid Getting Ripped …
Planning For Retirement In The “New Normal”?
The world of COVID-19 is, at least for the foreseeable future, the new normal of society. That means that there’s no time to slow down on retirement investing, as those same deadlines are coming up as quickly as ever. Below are some of the most important things to keep in mind during this unusual era. Look at Your Estate Plan With the uncertainty of the times, it does make sense that many would start thinking about what could happen with their families if a worst-case scenario was to occur. While you may not need to panic, taking the time to …
2021: Social Security To Spend More Than It Collects
The time is finally here. It’s when the chickens come home to roost. In most of the financial blogs of late concerning Social Security, it’s been nothing but doom and gloom. Everyone is scared the trust fund will run out of money, and suddenly, Social Security will go away. We’ve been reading about this for a long time. Economists have sounded the alarm many times over the years about the imminent insolvency of Social Security if fixes aren’t put into place to shore up the deficiencies. If you allow the media to guide your thinking, you might be in this …
Medicare “Must Knows”
Except in some rare cases, we all need to have a plan for our retirement years. Each person has individual financial goals along with their personal savings situation. Hopefully, you have a personal financial advisor to help manage the savings you have accumulated. However, your healthcare is a “wildcard” during your retirement years, and you need to plan for it. Planning for retirement is one of the smartest things you can do, not only for you but your loved ones, too. Here are five helpful tips to keep your retirement plans on track. Let’s look at the upcoming important dates …