Were you one of those fortunate enough to receive a large tax refund this year? Are you now wondering what to do with all that extra cash? It might be tempting to just go out and spend it all, but there are so many better ways to put that money to good use! Here are some smart ways to invest your tax refund this year. Down Payment – If you have been considering purchasing a home…
For many, 2020 has been hugely stressful, and the benefits of taking time off are often underestimated. When life gives us unexpected turns, one of the best things we can do is use the opportunity to take a step back and relax. Taking time off from our place of employment gives us the means to do precisely that. For those of us still able to do it safely, vacation and travel provide a tremendous benefit.…
Most people aim to have a steady and peaceful post-retirement life. They spend their formative years trying to find ways to save up for their retirement. However, working hard is not the only prerequisite for a secure future. You also need a smart post-retirement strategy in place. Having a strategy ensures a lasting and steady flow of income irrespective of the future. Generally, post-retirement earnings come in the form of interest, dividends, investment principal, capital…
Safety delineates all aspects of life and hence, should be carefully reflected upon in your financial plans as well. Same is the case with the safety-first retirement planning. The approach is driven towards safeguarding your financial and economic life before considering post-retirement luxuries like travel, etc. In other words, it focuses on the essentials. Let’s get to know more about this concept in detail: Why Adopt a Safety-First Plan? The safety-first approach works wonders as…
Every employee has to retire one day or the other – it’s an undeniable truth of life. As retirement nears, you need to start considering various decisions such as the kind of monthly retirement budget you should maintain or the cash flow you could generate from existing assets. While planning for all this, one massively important factor that you need to account for is aging. As you grow older, a lot begins to change in your life and your daily expenditures…
Retirement planning is being widely discussed these days with people being more and more aware of the FIRE movement. FIRE is a movement that refers to ‘Financial Independence, Retire Early’. The idea found its value in the lives of youngsters who wanted to enjoy a relaxed retirement as soon as they could, rather than spend the best years of their life in their stereotypical 9 to 5 jobs. They are willing to step out of…
Although retirement planning involves decisions that affect your future, it is an activity that forms a part of your present financial plans. People generally perceive retirement one-dimensionally and plan for a comfortable future by simply cutting down on their expenses and living frugally. While frugal living is an effective way to save for retirement, it is not the only way to safeguard your future. There are many other strategies and investment options to save for…
What is the bucket strategy? Bucket strategy was introduced in 1985 by financial planning expert, Harold Evensky. Under this approach, the retirement portfolio is divided into three accounts, which are referred to as buckets. Retirement assets are allocated to each bucket in a predetermined proportion. The risk and returns associated with each bucket are different. While one bucket is responsible for maintaining income stability, other buckets offer growth in investment. This strategy is an amalgamation…
What doctors are for your physical/mental health, advisors are for your financial health. What do you do before you visit a doctor? Understand your condition, prepare for all the questions that the doctor would ask, ensure all your test reports/medical history documents are in order, and so on. Preparation is a must even before you visit a financial doctor. Here’s a comprehensive checklist that will help you prepare for a meeting with your financial advisor.…
The coronavirus outbreak has affected humans in many ways. The COVID-19 pandemic has brought with it not only a health crisis but also a situation that impacts society, life, economy, and the future of the world. However, there is a bright side to everything, and people have a lot to learn from their current circumstances. These testing times are sure to make people immune, robust, and proactive in all the aspects mentioned above. Financial management…
Do insurance options seem overwhelming at times? It can be tricky to navigate the many different plan types and terminologies to find the right fit for your needs. Unfortunately, most people know very little about insurance, 90% of Americans aren’t even comfortable explaining basic terms1 like premium or deductible. Insurance needs change as we age and move through different stages of our lives. The same policy or plan that benefits you today could very well be…
An economic crisis is a situation where a country experiences a financial plunge. It affects the GDP value, as well as reduces liquidity in the system. It also causes drastic market fluctuations and can lead to inflation or deflation. What is more startling is the lack of preparedness to tackle such situations, causing further economic issues. At an individual level, it is important to ensure that you stay afloat during such demanding times. Here are…
Each year, millions of Americans make donations to charitable organizations and receive something in return – a tax break. However, the 2017 Tax Cuts and Jobs Act curbed this tax advantage because it reduced the number of people eligible to claim a charitable deduction by raising the standard deduction. For 2020, the standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly. If your list of deductions is not greater than those…
As Johns Hopkins University of Medicine’s Coronavirus Resource Center revealed a recent increase of coronavirus cases in the Southern and Southwestern United States, the VIX ticked up. With fears of the outbreak curve not flattening, how will this impact markets? The Volatility Index (VIX) was established by the Chicago Board Options Exchange in 1993 to gauge volatility in the financial markets. Referred to colloquially as the “fear index”, it measures the next 30 days of…
Divorce wrecks a lot of things, and your finances are often one of the biggest. Even worse, the financial impact of divorce isn’t limited to those first few years where you’re trying to live on an individual’s salary after years of sharing expenses. Divorce can also seriously impact your retirement from a number of angles. Here’s a quick field guide to some of the most important to consider as you assemble your post-divorce financial plan. First Things First:…
Your child’s future success might encourage you to pull out all of the stops when it comes to funding their education, but you still need to take care of yourself. Saving for retirement or your child’s education is an ongoing debate many parents face throughout their lives, but it’s important to strike a balance between your own financial independence and funding your child’s near or long-term future. As children get older, the case for putting…
A Real Fiduciary is someone who is legally obligated to give you advice that is in your best interest. It doesn’t make sense to pay for financial advice when the advice doesn’t have to be in your best interest. Period. A Real Fiduciary is someone who is legally obligated to give you advice that is in your best interest. Yes, this means there are financial advisors (the majority of them, actually) who get paid by their clients…
According to the Employee Benefits Research Institute’s (EBRI) 2018 Retirement Confidence Survey, American workers have both a vital—and pressing—need to prepare better for retirement. Nearly 8-in-10 American workers have less than $250,000 set aside for retirement. And 60 percent of American workers have not crunched the numbers on how much they’ll need to live on in retirement. To help answer how much you need to retire and demystify this important—and urgent—topic, I’ve listed out four scenarios…
Stocks have been the focus over the past couple of months. When you hear about the “market,” they are referring to the stock market. When they discuss that the “futures are up” or the “futures are down,” they are talking about stocks. Everybody wants to talk about stocks, but there is another type of investment that is also very important and that makes up a large percentage of your portfolio that rarely gets a mention — bonds.…
One investment vehicle that has received a lot of press in recent years is not a physical item or a stock-it’s cryptocurrency. Of the many types of cryptocurrency available on the market today, perhaps the most popular, recognizable, and valuable is Bitcoin. Bitcoin intrigues a wide variety of investors, from those with small portfolios to the extremely wealthy. But what exactly is Bitcoin, and should you consider putting your money toward it? Understanding Bitcoin and…
Having a good financial advisor is a major part of organizing and maintaining your wealth, but all too often, people get frustrated with the advisor-client relationship because their advisors are only in the business for the money. In many cases, you won’t just meet with a financial advisor once and never see them again. You’re more likely to build a long-term relationship with your advisor and visit them routinely to discuss changes in your estate…