Financial Advice for People Approaching Retirement

When a person is approaching his retirement age, it is essential to plan for the future financial requirements in such a way that he can manage his family during this older age, where he will not be earning any income. Here is some useful financial advice for people, who are nearing their age of retirement.

As an initial step, it is essential to identify the guaranteed income he would be earning like in the form of pension. When this expected amount is known, it will be easier for him to further plan his commitments. Next comes the money he has in his savings account and this amount should be added along with the amount he will be earning each month after retirement either in the form of pension or from any other source like rent from a building.

Then, a rough estimate of the monthly expenses that should be made for his family should be calculated and this amount should be subtracted from the previously obtained amount of monthly income + savings in bank accounts. Most of the people approaching their retirement age will be having some plans to visit some places of interest with their spouse after retirement twice in a year or at least once in a year. Here, the amount that might be required for these trips should also be calculated to find whether the trips will be coming within their budget. If not, they can try to earn income by doing some internet based online work if they are very much particular about those extra dollars for tours.

When it comes to financial planning for the life after retirement, it is always essential to keep some money aside for meeting some sudden medical expenses. Some years ago, people were dependent on their children after retirement, but nowadays, this trend has changed and everyone wishes to lead am independent life.

Nowadays, there are financial planning organizations offering the best financial advice under different categories like estate planning, wealth creation, taxation planning, lifestyle planning and of course retirement planning.

Retired life can be spent in peace only when people are financially secured and safe since it is an age where peace is highly essential after several years of work pressure. This is the period when people get time to spend with their family members and financial security during this age can obviously enable people to enjoy their retired life. So, if you are approaching your retirement age, get the help of the financial firm offering the best advice for financial planning.

Worst Financial Advice Ever Given by Me

Last night the National Capital Financial Bloggers Association met, and we did what we normally do, swap stories and ideas about finances and the like (see the N.C.F.B.A. blog roll in the side bar for the sites authored by this group).

During these discussions the topic of time share condominiums came up and that led me to tell this story. The Worst Financial Advice I Ever Gave Most of you know that I am very unlikely to give you direct advice in any financial area, and this story is one of the reasons why.

My wife, myself and some friends went on a vacation to Florida (this was about 17 years ago). My Father In Law had told me about how if you go to a Timeshare Condominium sales pitch, you can get free tickets to some of the sites around Orlando, which sounded good to me (Free is always a good price). We found that at the Motel we were staying there was an entire courtesy desk filled with Timeshares offering this deal, so we signed up for a “sales demonstration”.

Off we went to this sales pitch, and it was hilarious,and surreal. I must mention one of my friends on this trip was Michael James on Money himself and his wife, so we were sure we weren’t going to buy. The salesman (who we nicknamed “Ray Don Bob Ron Don”, don’t ask why, but it was funny), tried all the sales pitches:

  • Slow playing us to see if the condo would sell itself (it didn’t)
  • Pandering to our wives about how there was little or no housework (they laughed)
  • Telling the men they could rent whenever they wanted (I asked if we could get to stay during Daytona 500 week, he said yes, I laughed)
  • How much money we’d save (we in turn figured out how much money they were making per building on the initial sale, and then how much they were going to make per year on their service fees).
  • Finally asking, “Would you buy this place for nothing?”, and then saying, “OK your price is between FREE and our selling price”, which always makes me chuckle.

I must admit that we played along and acted very much out of character (worrying my wife a great deal), but at the end, there was no sale, we got our free tickets and we left (our salesmen grumbling about how we were, “… too analytical…”. I was struck by how the people at the sales pitch “closing” room looked like deer in headlights while paying for their time share with their Credit Cards, a very disturbing site.

Fast forward a few months and a dear friend was off to Orlando with his new wife, so I told him the story about getting free tickets for a theme park and all you had to do was sit through a timeshare sales pitch. He said he’d think about doing that, and nothing much more was said.

My friend returned from Orlando a week later, picked me up to go to work and he told me all about his trip. I asked had he gone to the timeshare sales pitch, and he confirmed that he had. I then railed about how pathetic the sales pitch was, and what kind of an imbecile would buy one of those things, etc., etc., etc., for about 5 minutes.

Once I finished, my friend said in a very small voice, “We bought one…

The car ride to work was very quiet that morning.

From that day, I always shy away from giving anyone any financial advice directly, I will tell them what has worked for me, and let them decide for themselves.

Different Life Insurance Policies, Different Rates – But, Now’s The Time To Reevaluate Your Policy

Here are the top four life insurances listed from most expensive to the least expensive.

Universal life insurance

Whole life insurance

Return of Premium life insurance (R.O.P.)

and least expensive of all – Standard Term life insurance

The least expensive may sound good but it may not necessarily be the best insurance for you and your family. A lot of people may have different policies. Two or even three. Each one covering a specific need.

Okay, let’s get to these important tips that could save you money when shopping for life insurance.

Buy life insurance while you’re young.

The younger you are when you purchase a life insurance policy the better. Your rates will be much lower. Buying life insurance for your children when they are young will keep their premiums low for the rest of their lives. Up to 10 times lower!

Find a life insurance policy that meets all your needs.

In other words, a policy that is’ tailor-made’ just for you and your family. Everyone has different needs.

You have a home with a 30 year mortgage that you would want to protect with a 30 year policy. You are 30 to 40 years of age. You should consider a small Whole life insurance policy with an additional 20 year Term life policy. Perhaps you are close to retirement. A 10 year Term life insurance policy may be right for you.

If you are a smoker, you want to consider a short term life insurance policy. (Just quit smoking!! Get a new policy! Many policies are much cheaper for a non-smoker. You will not only get healthier, but think of the money you’ll be saving! Not just on your premiums, but on all that you spend on tobacco!! )

How much life insurance should you purchase to meet your needs and the needs of your family?

First, you need to sit down and figure out what your needs are and the needs of your family.

You need to be prepared when dealing with insurance companies. Their goal is to make money off you. They will do their very best to try and sell you more coverage than you really need. Only purchase enough coverage that will take care of your family if something should happen to you. Such as, burial expenses, out-standing debts, mortgage, etc. Enough insurance for them to live on in a way they have become accustom to. (Note: An average standard is 10 times your yearly gross income plus any large debts you may have.)

The reason one should need to purchase more life insurance than needed is if you are leaving behind a large estate. This would be to keep the assets of your estate from being taxed.

If an insurance company is trying to push you to buy more coverage than you need, move on to another insurance company! There is no trick to buying life insurance. It’s not only fast and easy; It’s free on the internet! You can get many different quotes from many different insurance companies in no time at all and save you a lot of money.

Save money by matching the right insurance company to your lifestyle Let’s say that you have a high risk occupation. Such as an airplane pilot or construction worker. Or perhaps you have a high risk hobby. Such as jumping out of an airplane rather then piloting one. Insurance companies are well aware that they are taking a big. Therefore, they will charge you much higher rates figuring that you may not be paying them premiums as long as they had planned on.

The insurance companies will still insure ‘high risk’ people. But the amount of those individuals is limited. Example: An insurance company, let’s say, has a limit of 10,000 policies that they will issue to a ‘high risk’ individual. Each individual pays $1,000 per year for their policy. Now, after the insurance company reaches their limit of 10,000 policy holders, a ‘new’ high risk individual, (#10,001), is going to pay double for that exact same policy. Why? Because insurance companies are NOT going to exceed that limit and put their assets at risk. They need to compensate by charging higher rates to everyone over that limit.

Take notice of fluctuating rates as your insurance policy increases Some insurance companies are willing to give you a bit of a price break when you increase the amount of your coverage. It is possible to get a $300,000 policy from one insurance company for less than a $275,000 from another insurance company, even if both insurance companies charge the exact same price for that $275,000 policy.

It really pays to check both above and below the coverage you are looking at. You may be surprised at what you might find when you compare.

Are you paying too much for life insurance through you place of employment? Chances are, yes! You see your employer and the insurance company work together to agree on one set ‘group’ rate. Meaning, all employees’ pays the same price for their life insurance policy. They are going to figure in the number of ‘healthy’ and ‘unhealthy’ employee’s. Now, we already know that a person who is unhealthy will pay more.

Not the case through work. Everyone pays the same rate. The ‘group’ rate’. Therefore, if you are one of the ‘healthy’ employee’s, chances are, you are pay too much because you are paying a portion of the ‘unhealthy’ employee’s premium payment.

Let’s say that in a normal situation, an insurance companies rate would be $50 per week for a healthy person and $100 per week for an unhealthy person. In a ‘group’ rate situation, a set rate would be $75 per week for everyone. Every employee whether healthy or not.

That means that a healthy employee is getting an extra $25 per week taken out of their paycheck to help pay for a portion of the ‘unhealthy’ employee’s premiums.

If this is your case, the wise thing to do, if you are one of the ‘healthy’ employee’s, is to take that $75 per week out of your paycheck yourself and invest it in a life insurance policy that is tailor-made just for you. You would now be in control. You must also keep in mind that if you should ever leave this job, or retire, most likely you would lose any life insurance benefits you had through the company. By investing in your own policy, (and as long as you pay your premiums,) you would never be in fear of losing a policy that you may have paid many, many years in to.

You may save money by paying your premium payments annually.

By making annual premium payments, your life insurance company may give you a discount rate. After all, they are saving money with less labor and less paper work compared to those who pay monthly. If annual payments won’t work for you, ask the insurance company if they will offer a discount on your monthly premium if you pay by credit card. Many insurance companies don’t just willingly offer a discount. So don’t be afraid to ask!

Watch out for “Age Nearest” in your policy

When an insurance company raises your rates as you get older, these increases may not occur on your birthday as most would assume. The fact is, most insurance companies will raise the rates of your policy six months prior to your birthday. They call this ‘Age Nearest’. This could end up costing you a lot of money over the length of your policy. Make sure that you ask your insurance company ‘how’ and ‘when’ they increase their rates.

When to reevaluate your life insurance policy

There are several reasons for reevaluating your life insurance policy every year or so. Insurance rates are dropping, mainly because the internet has made it so easy for everyone to get life insurance quotes. This is resulting in a fierce competition between insurance companies. People are also living longer these days. That means longer policies for the insurance companies and longer premium payments.

It is possible to double your existing policy without paying any more than you are now. Anytime there is a substantial change in your life, you need to reevaluate your life insurance policy. You could be paying for coverage that you no longer need such as, your mortgage, your debts, or you no longer have dependants living at home.

Or, You may need to increase your coverage because, you had a child or purchased a new home. Very, very few insurance companies will ask you on a yearly basis if there are any major changes in your life. You need to inform them and ask them to reevaluate your policy. You can get a cheap life insurance quote but you have to ask and compare.

Compare Cheap Car Insurance Online How-To

The best way to compare cheap car insurance is to go online and check out a few discount sites. Then check out some of the mainstream companies, give them a ring and ask for their best coverage price for you. Once they have given you a quotation, then let them know the prices that you have been offered elsewhere and ask if they can meet or beat it.

There are other ways of comparing cheap policies, and we shall come back to the method above later. Auto insurance is increasing in cost, and premiums in the Western world are now at their highest levels ever. It is becoming increasingly more important to be able to coverages and get the best deal you can.

The best low cost car insurance deals can usually be found online, although the cheapest policy is not always the best deal for you. When you buy online you are relying on receiving all the information you need to make the decision. Budget car insurance can sometimes be more expensive once all the exclusions and extras are calculated, and the price you pay online might not be the end of what you have to pay.

There are three major ways to get free car insurance quote. The first is to use a broker, in other words somebody who is not employed by any individual company, but that can provide you with the best deal that they can find. A good and reliable broker can get you the best deal, although keep in mind that brokers only deal with companies that provide them with a sales commission.

You could also reduce your risk by installing a burglar alarm system, ABS braking and ensuring that you have passenger and rear seat airbags. The more safety features you have on your car then the better discount you can negotiate. You could also deal directly with the companies yourself, and cut out the broker or middleman.

Even when you are buying your policy online, you are rarely dealing with the company but with a broker or affiliate that gets a cut of the action. Deal with the company and you can negotiate a price reduction. The compare the reductions offered for these features from various companies.

You can contact several auto insurance companies and compare cheap auto insurance premiums for your automobile with them. Make sure, however, that you provide each company with exactly the same details. Then you will know that the price you are given will be truly comparable.

If you go online, you can not only get a price from the cheapest company, but can also compare it with others for the services and extras offered for the premium price you are quoted. Budget auto insurance is not always offer at budget prices when you consider what it fails to cover. The easiest way to find the cheapest quote is online through an insurance search engine.

These claim to be able to search the entire web for the best deals. One of the major benefits of these to many people is that they only have to enter their details once, and then wait for the quotes to come into their email in box. It is an excellent way to compare cheap car insurance, but even then you can never be sure that you are capturing all the best and cheapest auto insurance quotes.