Planning a Trip after Retirement: The Financial Side

One of the biggest appeals of post-retirement is the possibility of traveling and seeing a lot of new places around the world. However, traveling is generally not cheap and a lot of planning should be made to make sure retirees can afford it. So what steps should be made?

First, look around. Is there anything in the house that cannot be left behind for too long? The entire schedule of the trip depends on this, as much as the cost of the travel depends on the schedule.

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Image source: http://www.retirementredux.com/

Once the schedule is finalized, the question of how healthy the nest egg is comes into play. A healthy savings can shoulder a trip or two for a month. But if retirees want to stay in world-class hotels in cosmopolitan cities, then the bank account should match the retiree’s expectation.

Another option for retired couples is to move out of their home and into a more affordable place. They can either sell their home or have it rented out. This way, their bank accounts are replenished, giving them means to travel.

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Image source: http://www.drsayyar.com/

Retirees also have to consider their limitations, and think about what to do once they decide it’s time to come home. So, before going on a trip, retirees should have something to come home to.

There is a great amount of freedom to be had after retirement, and experiencing the sights and sounds in far corners of the world is as good an endeavor as any. But as in all endeavors, careful planning is always paramount.

Linda O. Foster from Poulsbo, WA, specializes in federal employee benefits. She helps in estate and retirement planning for people who want to reach their financial goals. To learn more about how Linda Foster helps retirees save money, visit her company’s website.

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Planning a Trip after Retirement: The Financial Side

For a Secure Retirement: Smart Financial Decisions in Youth

The young and ambitious working class has a strong appetite for spending on travel, designer clothes, gadgets, and even concerts. Their relative freedom from responsibilities, stress experienced at work, and excitement over new things have the biggest influence on their spending habits.

While there is nothing wrong about indulging in life’s luxuries, financial imbalance often results from the failure to forgo current consumption in favor of building a stash for the future. Failure to plan for future financial responsibilities can be disastrous. Below are some things that the young ones must consider to ensure a secure, sustainable, and worry-free retirement.

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Image source: finance.yahoo.com

Cut down on unnecessary spending
People tend to spend on relatively unimportant and fleeting material things that satisfy short-term needs. The want to have the latest model of a phone, the false need to drink expensive coffee at leading coffee shops, and the desire to acquire expensive clothes are all behaviors permitted only by a robust cash flow and by already met basic needs (fixed daily expenses, emergency fund, etc.).

Maximize work benefits
Starting a job at any company is not a guarantee of high earning potential. It is vital to choose a career that has a slightly higher starting salary but still leaves enough room for growth based on skills, competence, and work ethics. It is best to look for a company that offers a retirement plan, health and life insurance, recurrent salary increases, an incentive system, and savings-like employee benefits. These, while not necessarily the key to absolute financial freedom, are the building blocks to a secure future.

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Image source: forbes.com

Responsible marriage
Marriage is a long-term commitment that requires emotional maturity, financial preparedness, and a strong socio-spiritual foundation. Aside from the fact that a divorce is expensive, similar marital catastrophes will also divide financial assets that would create a bump in the long-term financial plan. The young must have a practical and reasonable view of marriage before making the commitment.

Get insurance and start building an investment portfolio
In investing, time is one’s best friend and worst enemy. Starting young is always an advantage because it provides a wide horizon to build wealth and try out high-risk but high-return endeavors. As for insurance, premium prices are at their cheapest for young and healthy individuals. Modern insurance products now also offer living benefits that activate without requiring the occurrence of a life-threatening incident.

Linda O. Foster specializes in estate and retirement planning, offering tax-advantaged low-cost investments and financial planning guidance to her clients. For similar articles, click here.

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For a Secure Retirement: Smart Financial Decisions in Youth

Investing Your Retirement Money In Growth Opportunities

Image source: careersbusiness.co.uk
Image source: careersbusiness.co.uk

Planning for retirement is never easy. It is a long-term process that requires a lot of effort and smart decision-making. Knowledge about the essentials of retirement and investment is a fundamental step to determining which processes and growth opportunities to pursue. While hiring a financial consultant introduces a system in the planning process, the investor should still be apprised of crucial points like finding a passive income, avoiding fad investing, being tax efficient, and thinking about long-term benefits.

Retirement planning is done best during youth and gainful employment. For instance, putting money early on Individual Retirement Accounts (IRAs)—basically a savings account with big tax breaks—gives people tax advantage. Although people under 50 can deposit only to a certain limit per year, the account still carries importance in terms of savings.

Similar to this platform is the 401(k) plan wherein an employee decides how much would be deducted from his or her payroll as contribution to an individual account that his employer creates on his behalf. The employer serves as the primary sponsor and partners with another company to manage the plan.

When people reach retirement, there are more ways to grow their accumulated savings, namely through stocks and bonds. Investing in stocks is as simple as buying shares of a company, making you a co-owner and gaining a portion of its profits. Stocks have high return potential and are beneficial for beating inflation in the long term. However, they also have greater risks in the shorter term.

Image source: forbes.com
Image source: forbes.com

Bonds, meanwhile, are a much more stable investment. Purchasing a bond is like lending money to a reliable borrower. The borrower pays interest on a regular basis and then recoups the principal when the bond matures. The downside includes the risk of the borrower defaulting and less potential returns compared to stock investment. For more convenient options, retirees can park their money in mutual funds, which are stocks- or bonds-based pooled investments managed by professional investment experts.

Linda O. Foster, a Washington-based financial expert, coaches her clients on the best way to reach their financial goals and enhance their retirement plans. For similar articles, subscribe to this blog.

Investing Your Retirement Money In Growth Opportunities