After working for decades to save for retirement, one of the last things you want to do is make mistakes that put you on the wrong path right out of the gate. Here are three costly mistakes to avoid in your first year of retirement, according to Motley Fool.
1. Not following a budget Just like you need to follow a budget while you’re working, you should also plan on having one during retirement—especially if you will be living off your savings and Social Security alone.
The secret here is to get a handle on your spending early on so that when you see certain expenses are more than you anticipated, you can compensate by cutting back in other areas.
2. Withdrawing too aggressively from your nest egg Your savings may need to last you 30 years on average, according to Motley Fool. If you withdraw too much money from your nest egg early on, you'll risk running out of money later in retirement. You won’t only lose those extra dollars; you’ll also lose any potential investment income from them. Over the course of 30 years, that could really make a big difference. Therefore, you'll need to develop a withdrawal strategy that gives you access to the income you need without going overboard.
3. Letting yourself get bored According to the Institute of Economic Affairs, the chances of being diagnosed with depression during retirement increases by 40%. With so much free time on your hands, feelings of worthlessness and restlessness can trigger depression, according to the IEA. You may be less likely to develop theses symptoms if you map out a schedule that keeps you occupied. Keeping busy by working on home projects, spending time with friends or even working a part-time job could make a big difference.
You deserve to start off your golden years on a positive note. Avoid these mistakes, and you'll likely set the stage for a happy, fulfilling retirement.
Climate change activists are not just interested in reducing carbon emissions in order to "save the planet." Their underlying desire is to overturn capitalism and replace it with socialist governments worldwide.
Our story starts with the IPCC, or the Intergovernmental Panel on Climate Change, a U.N. organization. "And any settlement of the Global Warming issue by the UN would entail massive transfers of wealth from the citizens of wealthy countries to the politicians and bureaucrats of the poorer countries." (1)
In 1992, at the first U.N. Earth Climate Summit in Rio de Janeiro, Brazil, Program Executive Director Maurice Strong stated, very candidly:
"We may get to the point where the only way of saving the world will be for industrialized civilization to collapse. Isn’t it our responsibility to bring this about?" (2)
Former U.S. Senator Timothy Wirth (D-CO), then representing the Clinton Administration as U.S. undersecretary of state for global issues, join…
Individual Retirement Accounts (IRAs) can be a great way to save for retirement because of the tax benefits they can provide. If you’re eligible, you can choose a traditional IRA for an up-front tax deduction and defer paying taxes until you take withdrawals in the future. Or, if eligible, you might opt for a Roth IRA and contribute after-tax money in exchange for tax-free distributions down the road.
So, what's the catch? There are a few. If you run afoul of some of the IRS rules surrounding these accounts, the penalties can be quite stiff—all the way up to a disqualification and taxation of your entire account.
Ignorance of the law is no excuse, and with few exceptions, the IRS isn’t very forgiving of mistakes. Knowing the rules can help you navigate the many potential IRA tax traps you might encounter on your way to retirement.
Keep in mind that when we discuss taxes and penalties, we’re referring to those at the federal level. In most states, you will also…
In my lifetime, I have bought six houses, and sold five. I currently live in the sixth, which was new construction, which was an adventure unlike purchasing an existing home, But the principles of buying a home are the same, whether you are purchasing a new home, or an existing home.
1. Understand why you want to buy a house
Purchasing a home is a major decision that shouldn’t be taken lightly. It’s important to define your personal and financial goals before proceeding. Think about factors such as whether you’re craving more stability, whether it makes sense financially and whether you’re prepared for the responsibility of maintaining a home.
You should explore some resources on Renting vs. Buying before you make the decision. I posted a article with a couple of good videos on this subject, and bankrate.com as an informative article here. 2. Dig Into Your Credit Reports and Credit Scores
Your credit score and history are the first things all lenders will look at to decide whether or …