Five Steps to Successful Retirement Savings

Retirement is something that you should plan for from the first day of your professional life. People who defer their retirement savings are likely to end up at a tight spot financially later in life. On the other hand, saving from an earlier stage in life will ease your pressure later in it.

Let us go through a set of steps that you can follow in order to successfully sum up a good amount of retirement savings.

Start early

The reason why this is important is that if you start saving early in your life, it will allow you to put aside a smaller portion of money from your paycheck as opposed to the portion you would have to separate if you start saving at a later stage. Furthermore, it will also get you in a habit of saving money from the very beginning of your professional career.

Know When to Retire

Although it is hard to figure out when you will actually retire, but having an approximate age in mind will help you greatly with the savings. Even if you miss a few months of savings somewhere in the middle, you would know how much you need to get back on track in order to get to the amount you want in your account at retirement.

The Annual Budget

You should calculate what your annual budget will be at the time of retirement. This will help you analyze how much you need to save to get a point where you can support that annual budget at retirement. Bear in mind that this annual budget will be fairly lesser than your annual budget at the moment because you are likely to have ended up with nearly all of your major life responsibilities by then.

Break the Savings Down

Break down the annual savings you require into monthly portions to get an exact number you have to separate from your monthly paycheck. An advice here is not to calculate any gains from the investments you make with your saved up amount. Consider these gains as a bonus which can also give you a cushion in case you skip a few months of savings. In addition to that, these gains will give you a greater amount than expected at the retirement.

Make the Most of Your Situation

In case you are self employed, you may register in the IRA scheme to defer taxes on your savings. An employee on the other hand has an extra benefit by enrolling in a 401-k program. By enrolling in it, your employer will also contribute a certain amount to your savings which are deferred of any taxes.

Furthermore, if you are an employee, you may also enroll in both the 401-k and the IRA simultaneously. These programs give you the opportunity to invest your savings without any taxes involved.  The only time you pay taxes is at retirement when you withdraw the saved amount – since you will most likely be in a lower tax bracket then, the taxed amount will also be fairly lower than what you might pay if you don’t enroll in either of these programs.…

Over 65, Can I Get a Mortgage?

The concept of renting a house instead of buying it is on rise. Many people are promoting the concept to tackle the uncontrolled taxes and splurge of house mortgage. However, the need and desire of buying your own house never dies. When you take out a home mortgage in your 20s or 30s, you get mortgage on general terms and conditions. The common principal is to pay high down payment and get low interest mortgage or pay low down payment and get high interest mortgage.

Many people establish their passive income resource during their 40s and take out home mortgage. The passive income aids them in paying the mortgage. During 50s, the borrowers are close to retirement, which is why, they get mortgage at flexible terms and conditions.

Taking out mortgage after 60s is a little complicated. People over 60 support their mortgage repayments by their pension or passive income resource. People with passive income resource get mortgages even more easily than people living on pensions.

The Mortgage Challenges after 60 Years

  1. The mortgage borrowers will be concerned about mortgage repayments. You can resolve this issue by providing them a proof of your mortgage affordability.
  2. The mortgage end date is also their major concern. It is the date when your mortgage becomes zero and your debt is fully cleared. If you take out mortgage before retirement then try to repay it before your retirement. The lender may become concerned if the mortgage repayment plan ends after your retirement. Again, you need to provide a proof of repayment support.
  3. Many lenders do not want to remind their clients about mortgage repayments or provide them balance sheets. Take challenge and ask your lender to write to you about remaining capital and interest every year.
  4. The lender may not agree to include loan extension term in the agreement. You need to convince them.
  5. If you are not satisfied with your current lender, you may have to go through all challenges for remortgage application.
  6. If you don’t buy a house in early years, the interest multiplies over years. It is because you have lesser time to repay the capital. Your monthly mortgage repayments could be higher than your expectations, so be prepared for it.

Are you Very Old for Mortgage Eligibility after 65?

The Mortgage Market review became effective from April 2014. The tough rules have restricted the lenders and lending societies about who they lend money. It is important to cope with the financial crisis.

Under these rules, most of the mortgage lenders have restricted the end of loan term to 71–75 years. This means that you may take out a short-term mortgage or home mortgage up to 10 years if you are 65 (provided that you take it from a lender who offers loan end limit up to 75 years of age.

Along with that, some small building societies and private lenders are lending money to people above 65 years of age. Your credit score becomes effective only if you are a businessman and still working.…

Want to Fix Your Student Loan Debt Problem? Here are 3 Out-of-Box Ideas that can Help

The one obstacle that prevents most millennials from growing their wealth is student debt. Loan installment payments have made it near impossible for them to invest and ride the wave of rising market.

If you are also one of those individuals who are entrapped with student loans, you should consider following the below mentioned 3 creative ideas to fix your debt problem. Any actions that you take, and sacrifices you make, in this regard will be worthwhile in the end as you will be able to enjoy all the good things in life that money can buy.

1. Apply for Public Service of Teaching Position

Creativity Level: Medium

One of the most overlooked yet effective ways to lessen student debt problem is to apply for a teaching or public service post. Some posts advertised in these two sectors give incentive to individuals by forgiving part of or the entire loan amount. This can be a great way to get rid of the debt problem.

However, there is one drawback to using this strategy. You need to complete the full term of the contract before your loan can be forgiven. As a result, you should be ready to forgo more lucrative job opportunities elsewhere if you use this option to fix your student loan debt problem.

2. Ask for a Raise

Creativity Level: Low

Requesting for a pay increase is another way to solve student loan problem that not many people consider, and which is one of the most effective ways to end the debt trap. But before you knock your boss’s door and ask for a raise, it’s important that you prepare a case in favor of a raise by gathering facts and figures.

You may also consider landing an offer in another company before going to your boss for a raise. This will increase the likelihood of a successful outcome of the negotiation.


3. Visualize Life without Student Loan

Creativity Level: High

Although this strategy will not directly help you fix the debt problem, it will provide you with the motivation to take actions to change your present position.

If you have read the book ‘The Power of Visualization’ written by psychologist Dr. Lee Pulos, you will know that through visualization you can achieve anything in life. And this also applies to reducing the debt burden.

Here is an easy tip on how you can start your visualization process.

Imagine the one thing you want in life that can only be possible when you are able to eliminate bad debt. Is it saving enough to go on a dream vacation? Or maybe start a new business? Now imagine that you have paid all the loans and that you are living a debt free life achieving the things that you want in life.

Once you visualize success, your mind will automatically go to work and come up with a creative solution to the problem. It can help you to identify and eliminate the roadblocks making your path to success real and achievable.…

Internet Threats: Bitcoin Breach that You Need to Know

The cyber world is shaken to its core, at least for a large number of Internet users that do Bitcoin exchange. Hackers once again infiltrated what should be a secure authentication system that protects transactions for Bitcoin. Earlier in August 2016, the cyber thieves stole approximately $65 million worth of virtual currency. This is the second largest cyber theft after a Tokyo-based exchange hack costs $350 million in 2014. Cryptocurrencies are hot targets or cyber criminals since the dawn of its existence in the virtual world.

There is a continuous rising concern among Bitcoin holders as the third trading platform of the company also fell prey to hackers. Newly disclosed data also show that roughly half of these trading platforms have officially closed in the last 6 six years. One of the many concerns among Bitcoin exchangers is that there is no depositor’s insurance that would absorb the loss. This is the unfortunate truth despite the fact that Bitcoin exchanges are like virtual banks in nature.

Web threat

The cyber security risk for Bitcoin continues. In fact, investors are left with minimal choice in transacting with under-capitalized exchanges and still risk uninsured deals.

Not Lifting
Investors that lost a few thousand dollars in the hack only have the consolation that there are other traders out there that lost millions.

Security Challenges
This is one of the biggest differences between virtual currency exchange and regulated banks or exchanges. The centralized repository of any Bitcoin community seems to be always at risk.

According to cyber experts, there are no pending technological silver bullets that are geared to solve the Bitcoin security breach issues.

The digital world is not fully equipped with the technology, financial mechanism, and cryptocurrency that protect Bitcoin investors from hacks. Thus, this virtual currency exchange will continue to be vulnerable in the years to come.

According to information from the US Department of Homeland Security, 33% of all Bitcoin exchanges from 2009 to March 2015 were hacked. In contrast, only 1% of regulated bank transactions and operations from the same timeframe have been reportedly affected. Security breaches are at a higher rate with cash flows in these particular trading venues. More than half of virtual currency operations in the past 3 years have also experienced cyber attack, according to the World Federation of Exchanges and International Organization of Securities Commissions.

The Internet community’s continuous concern is on the issue if the lost or hacked virtual currencies could be reimbursed to their members. In the most recent hack, Bitcoin holders lost 36% of their assets in the platform. The compensation is in the form of tokens of credit that are convertible to equity in the main company. Regardless of the compensation, experts confirm that trading venues will continue to be big targets for Internet hackers.…