Should You Sell Your Home Upon Retirement?

Should You Sell Your Home Upon Retirement?

Aug 31, 2016

Carefully plan out your retirement to maximize your financial standing. There have been many opinions when it comes to retirement throughout the years. Many financial advisors have told their clients to sell their home come retirement. Now, this will allow them to significantly boot their retirement income, but then there’s the human aspect that comes with it too. The impact of having to sell something that has been in your family for years on end isn’t an easy thing to do. Rather, there are other ways that you can fund your retirement account without having to sell your beloved property. Look At the Bigger Picture Even if you have noticed that your home has gained a substantial amount of value over the years, remember that every situation is fundamentally different. This being said, you should base your decision off of personal preference. Money has been a primary factor when it comes to a successful retirement. But you need to ask yourself, is it really what you want to do? Don’t just sell your home right off the bat without putting much thought into it. If it holds emotional value, you don’t need to part with it. There have been many successful retirement stories where the retiree keeps his or her house and stays in good financial standing. Sometimes, the cash doesn’t always speak in the bigger picture. The Bottom Line Every homeowner’s situation is different from one another. Don’t hastily make your decision before truly sitting down with your family and discussing it. By rushing things, you’ll only make a decision that you’re going to regret in the end. Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that has offices in California, Nevada, and...

4 Tax mistakes made by millennials

Millennials are the age group that are now in the twenties and mid thirties today. Most of these age groups are evolving from graduates to independents to spouses. These are some important milestones and this group should be aware of the standard financial commitments that come with these major milestones. Here are 4 tax mistakes made by millennials. Filing as a dependent when you’re independent (or Vice Versa) – When filing your taxes and choosing your status, be clear on if you receive any financial assistance from your parents. If your parents claim you as a dependant on their tax return, you will be unable to claim an exemption on your income tax return. On the other end, if millennials file as a dependant, instead of an independant, you will not be able to reduce your taxable income. Skipping Out on Health Insurance – Under the new health care law, millennials without health insurance, will have to pay a penalty when filing their returns. Those who can afford insurance and have not, will have to pay an individual shared responsibility payment. Forgetting to Deduct Student Loan Interest – To encourage higher education the US government gives students with loans, a tax break based on the interest that has been paid over the year. The deductions and credits can reach up to $2,500 on qualified student loans. Miscalculating Deductions for the Cost of Relocating – If you have moved jobs due to a promotion or a relocation to a new office, you will qualify to deduct relocation costs. But remember that your new workplace must be at least 50 miles from your old home compared to your old job and old...

5 personal finance tips for women

Women should feel secure and confident in handling their personal finances. Here are some financial planning advice that is specific to women; Get involved – Make sure you are involved in goal setting, budgeting, saving and investing. If you don’t get involved in the setting of your goals, you will find it much harder to reach them. If you are married or have a partner, include them in the goal setting process. Have a plan – Have a financial plan for your short and long term goals. Understand what your future expenses maybe and then work out how much you would need to save to meet those expenses. Maximize your employer benefits and retirement plans to receive tax benefits. Insurance – To secure your future, ensure you are sufficiently insured. For women whose spouses are the primary earners, it is important that your partner has life and disability insurance, to ensure that you are prepared for the worst. This will keep you and your family comfortable, until you are ready to enter the workforce. Maximize social security – To maximise your social security benefits, refrain for withdrawing your benefits early. Women have a longer life expectancy than men and therefore should ensure that they have a stable income after retirement. Assess your risk – When investing your funds, make decisions based on educated facts and not on short term market fluctuations. You may find that your portfolio may go up or down, but if they are tied to your goals, you will be less likely to make reactive...

Budget your money: 50/20/30 guideline

Budget your money: 50/20/30 guideline

Jan 21, 2016

The 50/20/30 guideline is one used by planners when working with new clients to help them understand where they spend their funds. This method can be used by anyone who is looking to work within a budget, to ensure that they have sufficient money for the month as well as savings. Fixed costs – These costs are those that do not vary very much during the month. For example, mortgage payments, utilities, car payments and rent. You could also add monthly memberships, like gym and subscriptions, like Netflix. A planner will suggest that you allocate 50% of your monthly earning for these costs. Financial goals – These goals can include savings for an emergency fund, retirement fund or down payment for a home or land. Planners will suggest that you allocate 20% of your funds for this purpose. This saving will help you maintain a secure future for you and your dependants. Flexible spending – These costs are those that vary during the month. This will include groceries, take out, shopping, entertainment and travel. A planner will recommend 30% of your monthly earnings for this area of spending. Remember that you can be flexible in this area as long as you don’t go over the allocated sum. If your looking at putting a 50/20/30 budget guideline into action, start off with putting down all your expenses, preferably on an excel sheet. You should do this for at least a month prior to assess your pattern of spending and then allocate your funds...

The General Principles Behind Banking Regulation

The General Principles Behind Banking Regulation

Jan 6, 2016

By Samuel Phineas Upham Banks are usually held to different standards because of the volume of money that flows through them. In the most recent fiscal crisis, we frequently heard this term “too big to fail” in reference to banks. Banking regulation aims to provide some guidelines and frameworks banks can work within to prevent this kind of thing from happening. They are not always successful, and some of these regulations can be rather knee jerk, but they come from a place of wanting to preserve the integrity and credibility of our financial system. Three basic principles guide the concepts involved with banking regulation. The Minimum It’s typical for banking regulations to lay out some minimum requirements that help to telegraph the objectives of the regulation. The one most commonly used is maintaining minimum capital ratios, but regulations usually apply to whichever parts of the bank stand to be exposed to the most risk. US banks have quite a bit of control during this process, and typically work closely with regulators on this aspect. Review by Supervisor Every bank is required to hold a license to operate. Those licenses are overseen by a regulatory supervisor, whose job it is to monitor the activity of registered banks. Regulatory supervisors also respond when there is a breach or a crisis at the bank. They are empowered to issue fines, give direction or revoke the bank’s license in extreme cases. Discipline Banks with discipline aren’t simply fiscally responsible; they have to disclose their financial information. That aspect is crucial when assessing risk, as is the market price. Together, that data signals the financial health of the institution. About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or...

Retirement: how to prepare for it

Retirement: how to prepare for it

Dec 21, 2015

Saving for retirement is often overlooked, since most young people assume that it is too far along the way to warrant any present investment. Saving for retirement early means that once you do retire you will have sufficient funds to do the things that you have always enjoyed. It’s good to start with a well paying job but a well paying job doesn’t guarantee savings for retirement. Here are a few tips to help you save for a secure, happy retirement. Save…NOW Don’t wait till you’re over 30 to start saving for your retirement. Speak to your local bank and look into a retirement fund. Your retirement fund value will vary according to your earnings. Since you will have to save a set value every month, you will learn to manage your other expenses accordingly. Don’t use the saved funds Avoid using a lump sum from your investment before retirement. Think of your retirement fund as money spent, therefore making it inaccessible. Expenses such as purchasing a new home, car or paying for your child’s education will come up, but remember that there are other ways to fund these expenses and your retirement fund is not one of them. Save more. If you have excess funds after your retirement fund monthly fee has been charged, save the excess. These saving can be invested in stocks, bonds, Exchange Traded Funds (ETFs) and mutual funds, but make sure you receive sound investment advice from a reputed...