Tag Archives: retirement

Three Things To Do Today To Improve Your Retirement Planning

Guest Article By Morris Raymond

There are a number of things that make a person break into a cold sweat, but perhaps one of the more underrated ways to cause stress is thinking about planning for the future with an emphasis on retirement planning. It seems odd that planning for the amount of money you have for future use would cause so much havoc simply because we tend to be big fans of money. Still, there seems to be a negative cloud that surrounds all that is planning for retirement.

Perhaps it’s because it reminds us of an end to things as we know them. Sure, it’s only the end of our working life, but many of us identify ourselves by the careers we establish. When you’re no longer working, how does that ultimately affect the way you identify yourself? Big questions to be sure, but it also reminds us that we’re getting older & looking at our mortality head-on.

Regardless of the reasons why we put off planning for retirement, it’s important to make a plan early. While it may seem as though there is a big process involved, it’s as simple as choosing to start planning. After this step, here are three more simple ways to get the retirement planning process moving forward:

1. Set Goals – When it comes to retirement, we always hope to relax and have a nice time doing nothing. Even with nothing pressing, though, we want to do something cool like travel or dive into a hobby. One easy way to start a retirement plan is to lay out the type of goals you’d like to accomplish. Whether they seem a little extravagant or not isn’t an issue. A goal is a goal, and so long as it’s important to you & your family, list it.

2. Create A Working Budget – Though this seems to be a step most people in debt take, it is a step that even a careful retirement planner should take to help get their finances in better order. Sit down & establish your monthly expenses. Establish what your take-home pay is per month and see where the numbers fall. If you’re spending more than you’re making, you need to figure out the best way to shed unnecessary spending. If you’re “in the black”, the extra money should be used to begin establishing your retirement account.

3. Be Mindful of Extra Money – If you have money that comes to you in the way of a work bonus or raise, just don’t spend it. Literally, put that extra money into a retirement fund. You were operating before on the money being brought into your home, so it means you can still operate the same way. Any extra money should be seen as money that’s just out of your reach & untouchable.

Obviously, retirement planning is more complicated than what’s outlined here. Still, these are three very simple steps to start the process, and simply starting to plan for retirement is a step in the right direction.

Need help with retirement planning? Contact Sproles Woodard for more information on other steps you can take to get the retirement ball rolling, and take advantage of the numerous financial planning services they have to offer.

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Being Financially Stable

Guest Article By Rosemarie Sumalinog Gonzales 

If saving for retirement is a struggle, imagine yourself if you lost a job. More and more people really take care of their own retirement security. To avoid unnecessary financial constraints, create a plan to reduce debt as you approach retirement. Design your savings and spending plans.

Retirement planning is definitely difficult, especially if the implications of your choices tend to get magnified. You’ll need to determine the amount of savings needed for your desired lifestyle. A spending strategy is equally important. However, rather than following a budget, many people spend more than what comes in.

Determine your annual base or mandatory expenses on food, clothing, shelter, utilities, medical, and transportation expenses. Also consider investing in long-term health care insurance which can typically cover the cost of home care, nursing-home care, and assisted living which is not usually covered by traditional health insurance.

Safeguarding your finances while you are still employed will help you become financially stable even after retirement. Many people are anxious when their retirement years are fast approaching. Imagine being at that point in your life and feeling you haven’t achieved your goals yet. It could get especially worrisome if you don’t have enough savings to be able to sustain your lifestyle after you retire. So, you need to enjoy spending within your means.

Securing a retirement fund is definitely needed if you want to live comfortably. The best time to start saving for your future is now. Not next year, not next week, not tomorrow, and not even later. Start planning for retirement at this very moment. It’s better to start sooner than later. The earlier you plan, the more time you have to save money, pay off debt, and invest in the future. You also give yourself some leg room in case you make a bad decision and need to recover from a mistake. If you start investing late, then you lower the possibility of accomplishing your retirement plans.

Consistency is essential in saving money for your retirement. At first, it may be difficult, but you’ll find it easier to save as you get along. One of the solutions for this is to set aside savings every month, even just a small amount. Save more as you go along-but never, never go below the initial savings amount.

Planning may be easy, but it’s the willingness and determination to stick to your plans that could bend at times. It’s important to have a clear vision ahead. No matter how far away your retirement years may seem, it is always a good idea to learn how to manage your personal finances. Those people who know how to manage their money succeed in allotting enough money not just for their savings but also for other financial matters.

It’s important to create a budget. Separate your needs from your wants and try to track your spending on a monthly basis by listing down all your expenses. Seeing where you spend your money can help you sort out your priorities and plan how you can save more from your income and spend less on non-important expenses.

Retiring from work is a major leap in one’s life. Prepare for the inevitable as early as now and assure a financially stable future for yourself and your family.

Article Source: https://EzineArticles.com/expert/Rosemarie_Sumalinog_Gonzales/1972656

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7 Ways on How to Invest For Your Retirement

Guest Article By Kivale Joshua

Investment Plan for Your Retirement

There so many investment plans available out there. The following points will guide you to choose the most appropriate one for you with lesser risks and commitments to manage. The points are based on the fact that, after a while they are going to be appreciating business ventures for your retirement.

1. Annuity

Annuity is a plan whereby an insurance company in exchange for purchase price enters into a contract to pay an agreed amount of money every year while the annuitant is still alive.
Annuitant- is the person on whose life the contract depends.
Annuity- is the amount of money paid to the annuitant.

The benefits of an annuity especially when used in connection with retirement provision is that it would ensure that the retiree has an income for a convenient number of years. The best type of annuity is deferred annuity because it gives you life time benefits.

2. Bonds

A bond is a loan to either a government or a corporation, whereby the borrower agrees to pay a fixed sum of interest usually semi-annually, until your investment in full. Treasury bonds are secure, medium to long-term investments that typically offer you instant payment every six months throughout the bond maturity. Treasury bonds have a fixed rate meaning that the interest rate determined at auction is locked in for the entire life of the bond. This makes treasury bonds predictable, long term source of income.

3. Exchange Traded Funds (ETFs)

Exchange traded fund is an investment fund traded on stock exchanges just like stocks. An ETF holds assets such as stocks, oil future, foreign currency, commodities or bonds and generally operates with an arbitrage mechanism to keep its trading close to its net asset value, although deviations can occasionally occur. These assets are divided into shares where shareholders do not directly own or have direct claim to the investments in the fund.
ETF shareholders are entitled to a proportion of the profits such as earned interest or dividends paid.

4. Stocks

In Kenya the main stock market is Nairobi Stock Exchange (NSE). A stock market is a place where public limited companies and other financial institutions, come to buy and sell bonds and other derivatives. NSE acts as a third-party broker and allows investors to buy and sell shares independently through share dealing platforms. You can directly and indirectly invest in stocks. Direct investment means that you buy shares from a company and become a shareholder while indirect means you invest in more than one company therefore spreading the risk. Indirect investment is done through an open-ended fund and the money is secure so that even the company defaults the money is still safe.

5. Mutual Funds

Mutual funds are some of the most overlooked yet probably the easiest way to invest much more than both stocks and bonds. A mutual fund is a pool of money, often from similar minded investors. You can sell your shares when and if you want. All shareholders of the fund benefit from the fund and share in any losses. There are five categories of mutual funds where you can choose the one which best suits you.

6. Real Estate

Real estate is a retirement investment plan you should never overlook. Landon said ‘look for what’s going to give you the most bang for your back’. Real estate as a front is a very lucrative opening. However, one must research the market and know the current and emerging trends in the sector. The location of the real estate matters a lot and should be well selected. Some of the major locations can be near universities, developing towns or big company sites. In any investment capital becomes the main organ to jump start the investment. Research on different financial organizations and try to compare their payment and funding terms. You can still opt to become a Real Estate Trader. A real estate trader is one who buys property with the intention of holding them for a short period and sell to make a profit.

7. Pension Plan

Pension plan is a retirement plan that requires an employer to make contributions into a pool of funds aside for a worker’s future benefit. The pool of funds is invested on the employee’s behalf, and the earnings on the investment given to the worker upon retirement. In Kenya even self-employed workers can still contribute to the social security fund to help them when time comes.

Retirement is a process where every living worker must come to terms to. Retirement is just like any other investment but a more crucial one since when you retire you productivity goes low due to health and age. You can start now and by the time you retire have significant benefits that can help you live a befitting like after retirement. Take a step today and plan to invest for your retirement now and be a happy retired worker living a good life and building the economy even at old age.

KIVALE JOSHUA
https://www.upwork.com/o/profiles/users/_~017745077c7c727711/
visit my profile on the above link to contact me for more well researched content writing.

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Retirement Calculator


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Value or Dividends

The one question that I had to ask myself was I going to invest my money into stocks that were going to increase in value (price/share) over time or stocks that would be paying a specific amount per share.

Investing for value is by far the more riskier process. You can’t always tell if a stock’s price will go up or down. Take for example the 2 shares of Obalon (OBLN) that I bought back in 2019 before I really had a grasp of what I was doing. I had just signed up with Robinhood and I had $5 burning a hole in my pocket. At that time I bought 2 shares at $1.89/share and I bought 5 shares of Guardian Health Sciences (GHSI) for $0.206/share. I bought those shares because, at that time, I was focused on the Health sector and thought that investing in anything Health industry related was a smart investment. As I learned more I ended up changing my investment strategy (which I didn’t know it was a strategy then). A couple of month’s later I sold the Guardian stocks for $0.55/share. The Obalon share price had dropped down to below $0.80/share and hasn’t moved up over $1. I have a standing sell order to rid them at $2.20/share (about a 20% increase over what I paid for them). At this time, I’m not looking to lose money.

At the time I signed up with Robinhood I received a free (no cost to me) share of Lyft (LYFT). When I got it the share price was in the $40 range. I didn’t know anything about the business model for the company nor what their plans were. So, I just held on to the share and started doing some research about what was going on with Lyft. One of the things I learned was due to the lockdown because of the Corvid-19 neither Lyft or its competitor, Uber, were going to be going great guns in price. I also learned due to the restricted revenue due to the virus, revenue wasn’t planning on growing. Additionally, in all of the years that Lyft has been in business it has never paid any dividends and was not planning to do so in the near future. I ended up selling it for $29/share. I didn’t pay anything for it but I didn’t maximize the gain I could have gotten. I determined that value investing was not for me.

So, where did this leave me? It left me looking into dividend investing, where I invest in stocks that pay high dividends on a consistent basis. This is where Seeking Alpha and Finviz came in handy. I used Finviz’s Screener feature to identify companies/funds that were paying out high yield dividends. The criteria I used was:

  1. High Dividend Yield greater than 5%.
  2. The share price must be less than $20/share (I’m not overly rich).
  3. They have been paying dividends for many years and their dividend growth is on the positive side.

The logic for these is to be able to get the largest return I could and to be able to buy the maximum amount of shares (because dividends pay per share) with the limited funds. That’s not to say I am not invested in higher priced funds, but that’s for another post at a future time.

Based on the above criteria I identified 2 stocks; Arbor Realty Trust, Inc (ABR) and Ares Commercial Real Estate Corporation (ACRE). I then researched these stocks further on Seeking Alpha. They both fit with what I was looking for, were well within my comfort zone regarding risk, etc. I will use the dividend from these socks to reinvest into the same companies. At some point I will be looking to take the dividends instead of reinvesting but that will be a few years in the future.