Financial Planning, Retirement Plan, 401k, Investment Blog

Financial Planning, Retirement Plan, 401k, Investment Blog

Financial Goals

Saving for Retirement

Posted March 15, 2011 by Bernz

There are a lot of numbers that come into play when one starts to think about retirement, and a very important number is how much does one need to save.  As a general rule it is good to assume that you will need roughly 70% of your yearly salary from when you are working in order to live comfortably in retirement.  This is a very conservative estimate though, and depending on what your goals are during retirement – travel, charity work, additional education – you may need to save more than 70%, in some cases substantially more.  It is good to take the time to write down some of the things you would like to accomplish during retirement, so that you can have them in mind when you decide on how much to save.

Taking a good look at your current expenses can be an excellent indicator of what kind of finances you will need during retirement.  Also keep in mind that while certain expenses that you have now will disappear when you retire, they are likely to be offset by new expenses, usually rising health care costs as you grow older.

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Posted in Financial Goals, Retirement Planning, Saving Money | No Comments »

When Can I Retire?

Posted March 10, 2011 by Bernz

Retirement, and more importantly having enough income to retire comfortably, is an issue that looms large on the minds of many employees.  A good place to start in trying to navigate the changing waters of retirement is to determine how much income you will need in order to retire the way you want.  Once you have a pretty good idea of  what that amount is, you need to consider the income that will be coming in in the form of pensions, Social Security, and other sources.  Once you have all those numbers you can compare and see if your current financial status will allow you to have the kind of retirement you desire.  There are a variety of retirement calculators available online that can help you to get a general picture of your retirement.  What if you note that there are areas for improvement, what should you do then?

One option that most people do not like to hear, but that may be necessary, is delaying the age when you retire.  Traditionally the average employee retires around 65, but in many industries and with the current financial climate, this may not be a viable option.  Not only does retiring later reduce the number of withdrawals you will have to make, it also increases the amount you can afford to take out yearly to cover your expenses.

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What is Hard Money Lending And When Should You Use It?

Posted January 12, 2011 by Bernz

Seasoned real estate investors often use a type of financing called “hard money lending”.  While this type of financing is mostly used by investors specializing in single-family properties, it can also be used to finance commercial properties.  If you’ve never heard of “hard money lending”, you’re not alone.  Most people haven’t.

One of the reasons this type of financing is not well known outside of the real estate investing industry is that the source of funding comes from private parties.  There are no large stockholder-owned corporations doing this kind of lending.  Typically it’s a private individual with deep pockets.

Another reason you haven’t heard of it is that a very specific type of business loan.  “Hard money” loans are usually set up as short-term balloon mortgages.  The monthly payments consist of interest only, and the principle is paid at the end of the loan term in one lump sum.  It’s not a good long-term financing vehicle, but it can be an excellent source of funds for investors who are acquiring fix-up properties.

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Posted in Financial Goals, Investing Strategies, Loans | 3 Comments »

Debt and Obesity Are Related, Study Finds

Posted January 2, 2011 by Matthew Constantin

Debt leads to depression. Depression leads to over-eating. Over-eating, simply put, usually causes obesity. These factors alone explain the relationship of how being over-indebted can be directly related to an individual being overweight, or worse, obese. In a landmark study conducted by Dr. Eva Mϋnster of the University of Mainz in Mainz, Germany, it was found that there is a clear connection between the two phenomena.

To reach her conclusions, Mϋnster collected data from 949 participants who were known to be over-indebted. She compared this set of data to the one she received from another survey, which measured the level of obesity in 8,319 mostly debt-free individuals representative of the German population. The study was conducted by viewing both groups’ statistics, which were measured in the same areas; socio-economic status, education, income, age, sex, and health factors such as weight (Body Mass Index), smoking and depression. (more…)

Posted in Debt, Financial Goals | 1 Comment »

Surety Bonds for the Entrepreneur

Posted July 5, 2010 by Matt Bruns

Surety bonds can make a world of difference for fledgling entrepreneurs.

They are key risk-mitigation tools that can insulate business owners from financial harm and reassure consumers that you’re committed to consumer protection. They’re also mandatory for scores of industries and business types, from construction and health care to travel agencies and janitorial services.

But they’re also often misunderstood, if they’re even considered at all.

How Surety Bonds Work

Surety bonds are basically three-party agreements among a principal (the company performing the duty), the obligee (the entity receiving or licensing the work) and the surety company that issues the bond. In the construction industry, contract bonds help ensure that projects get completed, subcontractors get paid and bids are legitimate.
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Posted in Bonds, Financial Education, Financial Goals, Investing Basics, Retirement Planning | 2 Comments »