It’s time to get your retirement finances in order but you don’t know where to start. Your biggest asset is your 401k so do you start with retirement planning? But then you think about the other money you have in real estate, a college savings account and at the bank. You begin to wonder if you need a financial plan instead? Then you start to think about what you want to do in retirement. Do you want to travel, have a mobile lifestyle or simply sit back at home and perfect your hobbies? Which plan does that fit into? (more…)
Home financing options and mortgage terminology can be confusing. Plus, people’s home financing needs change with age and vary in different stages of life. Understanding retirement home equity is an important key to finding financial success in retirement.
Equity is the portion of your home’s value minus the mortgage balance that you accrue over time. When you get a home loan, the bank owns the majority of the home and they charge interest to borrow that money. (more…)
A personal financial balance sheet shows you a snapshot of your financial health: how much money and assets you have, how much debt and liabilities you have, and what your net worth is when you subtract your liabilities from your assets.
Unlike a budget where you track how much money is coming in as income and how much money is going out as expenses, a balance sheet tracks how much you have at a fixed point in time. Even businesses, the government, and non-profits use a balance sheet to measure their financial strength. (more…)
According to the U.S. Government Accountability Office, 48% of people over age 55 have no money saved for retirement. That’s a scary high number which makes you wonder how that many people got to 55 without putting any money aside. I’m willing to bet that some of that number is based on some sort of financial catastrophe like a divorce or a major medical situation. Another portion of that stat is going to be folks working hard, raising a family and just not having enough to set any extra aside. (more…)
As I write this, the stock market is off about a third from its high, with no sign of a rejuvenation. According to an April 2, 2020 article in Forbes, a MagnifyMoney survey found that 38% of investors are worried they’ll lose all their retirement savings due to the COVID-19 outbreak. Almost 10 million Americans have filed for unemployment in the first two weeks since serious social isolation happened. This double sledgehammer of job loss and dwindling assets is a hard burden to bear. The need for protecting retirement finances is even greater in the COVID era. (more…)
Retirement financial planning is crucial because many Americans are at risk to outlive their money. Or at the least they risk having to make sacrifices and live below their preferred standard of living. Some are worried about even making it to retirement. In fact, according to a study by the Boston College, “one in three baby boomers don’t think they’ll ever be able to retire.” (more…)