The Implications Of Raising Retirement Age Seco

The upcoming generation of seniors can expect to experience a considerably different retirement from that of their parents. With life expectancy rising the average worker should not expect to retire in their 60s but later at age 70 or later. They will have to work longer and save more money before they can retire and enjoy their retirement years.

Old People Crossing - Sign

Government officials say it was inevitable that the retirement age would rise as healthcare improved. We are forced to extend the working age for the average citizen to match the increase in life expectancy. Improvements in modern medicine and lifestyle improvements have one in four British males born today expected to reach the age of 100. This increases in life expectancy lead the government to raise the retirement age for economic purposes. Government officials claim raising the retirement age will save the British tax payer around 13 billion GBP a year.
Some employers are reluctant about the increase in retirement age and fear a decline in the quality of their workforces. Employers have noted that the performance of older workers decline with age. Older workers exhibit a reduced capacity to work and have health or safety concerns younger workers do not. Not only do older workers experience increased sickness but they exhibit a lessened interest in their jobs. These workers begin to coast as they near retirement age and their performance on the job decreases. Having these workers on the job longer could have a negative affect on other workers. These employers fear the quality of their workforce might decline as a result of the increasing the retirement age.
Some also contend that raising the retirement age will make it difficult for young people entering the workforce and eventually raise their unemployment rates. Retirement has been used as a way to phase out older workers and make way for new workers. Raising the retirement age will create a shortage of jobs in an already difficult economy. The shortage of jobs among young workers could cause resentment toward older workers if they are unable to find work.
The increase in the retirement age is also seen as a disadvantage to seniors who are working class or manual laborers. Because of the strenuous nature of their jobs they may have difficulty reaching a higher retirement age. Corporate types, who make more money, can afford to retire early before they receive their pensions and enjoy an early retirement on their savings. But, the working class will have to work longer at strenuous jobs to reach their retirement age and live off their pension.
Advocates of the working class say raising the retirement age is actually an attack on the poor and will send Britain back to the days of Charles Dickens. It was a time when the wealthy could retire from working but the poorer classes were forced to work until the day they died. Wealthy people have access to better health care and can work longer to enjoy a later retirement age. Whereas the poor who are unable to afford the best in healthcare can develop ailments that may prevent them from reaching the proposed retirement age to enjoy their pensions.
The increase in retirement age is seen as a reaction to current social changes. This response by the government could have a negative effect on workforce performance and quality of life for the poor. To counter some of the backlash over the new retirement age the government should create more jobs to ease unemployment among the young and help businesses utilize the experience of seniors with more funding for apprentice programs.

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Frank is a keen cyclist and writes for investment consultancy Aon Hewitt among other businesses on a wide variety of subjects.

The Freelancer Guide to Pensions

Pension PlanWith the recent government reforms on pensions it’s never been more relevant to think about funding for later life. The introduction of a new flat-rate pension worth an estimated£144 per week in today’s money,will provide the UK’s elderly with “the minimum” they will need and no more.

New laws are being passed in favour of UK workers, to ensure that they’re being offered adequate support from their employers in the form of compulsory workplace pensions.

But what can the humble freelancer do to ensure they have sufficient provisions for retirement?

Keep Tabs

You’re self-employed now, but the likelihood is that you’ll have accumulated pension plan(s) over the years from previous companies (as well as maybe from doing your own thing).

The best thing to do with these before you decide how to proceed is to take stock of what you have. It’s probably been some time since you looked at how your funders are performing and how these will to help towards your retirement fund.

Set Up a Personal Pension Plan

When you invest funds into a pension (which you can do tax free), your provider will spread this money across different stocks and shares (investment portfolio). There are two main routes that you can go down to determine what happens with your money next:

Stakeholder Pensions: an investment portfolio where the decision about which stocks and shares are selected is made by the pension provider, with little or no input from you.

The obvious benefit to taking this route is that the provider will have a vast amount of expertise to be able to make the most astute choices for your age and circumstance.However, there will be a charge for this service.  Usually, the provider will chargea percentage of the value of your investment annually.

Self-Invested (SIPP):this is a private pension plan where you maintain control over which investments the fund makes on your behalf, and you have control over the investment portfolio from the first investment being made to the point of retirement. It is possible to make significant savings this way, but you must be confident in your ability to make astute decisions, as there will be no recovery if your investments don’t perform as expected. If you do decide to go down this route, always seek the advice of a financial professional to ensure that you’re aware of the risks involved from the outset.

Don’t Stay Stagnant

Just because you don’t have an annual pension review with work doesn’t mean you can let your payments stagnate and continue to pay the same in year on year.

Make sure you increase your investments in accordance with your salary by contributing a percentage of your earnings, rather than a set amount. As a general rule of thumb, this should be a percentage that is equal to half your age when you set up the fund. So, if you were to start saving at 24, this would be 12%.

You may also decide to review your input and gradually increase the percentage invested as you get older. As circumstances change, i.e. you might manage to pay off your student loan, credit card debt, or even better – your mortgage, a good idea is to start contributing at least some of the equivalent into your pension instead. You’re not used to the money, so you won’t miss it, and you may be thankful for that little bit extra when you’re no longer working.

Remember, it’s never too late to start saving. Whether you already have some funds tucked away, or you’re just about to start, it’s a great idea to consolidate your cash and take time to make sure you’re getting the most out of your money to prepare you for later life.

This article was contributed by Laura Moulden on behalf of Nixon Williams, a firm of contractor accountants offering comprehensive accountancy services to businesses throughout the UK

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It Really Can Be Simple To Buy A Property In Your Pension: Our A – Z Guide

Buy A PropertyOne of the main reasons people use a Self-Invested Personal Pension, or SIPP for short, is to buy a commercial property, either for their own business to use or to be let out to a third party.

It sounds complicated, but it doesn’t need to be, so we thought we’d take you through the basic A to Z of buying a commercial property in your SIPP.

1. Decide on your strategy. Are you buying a property which your business will occupy, in which case you will still have to pay rent but to your own pension, or will you  let it to a third party? Of course your business could occupy part of the property and sub-/let part, the choice is yours

2. Find a suitable property. This is the fun part! Viewing property and imaging the possibilities can be very exciting, but don’t get carried away, remember your strategy and budget. You should also remember that a SIPP cannot buy residential property or a holiday home; it’s a big ‘no no’ and can’t be done, despite what some people will try and tell you

3. Organise your borrowing. SIPPs can borrow money to help fund the purchase of the property, but there are rules. A SIPP can only borrow up to 50% of its assets, for example if your SIPP is valued at £100,000 it can borrow up to £50,000, giving a total budget of £150,000 to fund the purchase and cover any fees such as legal costs, stamp duty, surveys, and other professional fees

4. Find a suitable SIPP. Some SIPPs will not allow you to buy a property, whilst other SIPP providers are very experienced in such arrangements. If your existing SIPP provider will not allow properties to be bought then you will need to consider a transfer to an alternative provider. Even if your existing SIPP provider will allow property purchase you should compare the costs of alternatives

5. Make an offer. So you’ve found a property and chosen your SIPP provider, it’s now time to make an offer. This works in the normal way, there’s nothing really different just because you are buying the property in your SIPP

6. Find a solicitor. You will need a solicitor to carry out the legal work associated with the purchase. Some SIPP providers will work from a panel of lawyers and insist you choose from this list, others will allow you to use any solicitor of your choosing; just make sure the one you chose has experience of dealing with buying a property in a SIPP

7. Organise a survey. You’ll want to make sure that the property you are buying isn’t falling down or about to cost you and arm and a leg in repair bills

8. Sit back and let the professionals get on with it. Once you’ve followed the first seven steps you can probably breathe a sigh of relief, settle back and let the professionals get on with completing the purchase

9. Find a tenant, move in, and arrange a lease. If your business is renting the property then you will need to draw up a lease and start paying rent, if you intend to find a third party then you’ll need to market the property, either through a professional agent or yourself

Our quick A to Z guide will help you buy a property in your SIPP, and whilst it might look easy there will always be complications along with way which is where your IFA and other professional advisers will really earn their fees.

Phillip Bray writes for Investment Sense and looks at the SIPP rules when it comes to buying a commercial property in your pension.

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How to Avoid Moving Back in With Your Parents

We’ve all been there. The awkward moment when your parents think they’re finally free of you and then you knock at their door with all your possessions.  It might be a life transition, perhaps you’re moving house or you’ve just finished university. But beware! You tell your parents, “It’ll only be for a week or so, while I find my feet”but before you know it, a year’s passed and you’re wondering why on earth you’re still lying on the sofa watching repeats of Jeremy Kyle. Whether you want to find a new home or just want to stay afloat, these are some of our top tips to avoid the dreaded move back.

Get a job

It’s best not to be picky when it comes to jobs. In fact, a lack of income means you will certainly need to move back in with your parents. Changing career or just starting one can be a tricky time and sometimes the wait can go on forever! In these situations don’t be afraid to take temporary work in bars or restaurants but if you can’t stomach endless hours in the catering world, then make sure you use your contacts. With most jobs it’s all about who you know, so if you have any friends in high places, make sure you get in touch!

Find affordable accommodation

You might have thought by this stage in your life that you’d be living in a penthouse suite over-looking the city skyline. Maybe there’s an indoor gym next door and on the roof there’s a hot-tub for all the parties you’ve been having. Think again! If you’re ever going to live independently you have to be realistic. Try and move in with friends or a partner, it’s a great way to keep costs down. If you heading out to a new city on your own, then you should definitely consider a house-share, it might get frustrating when the same unwashed pots and pans litter the side of the kitchen (we all know who it is), but it’s worth the sacrifice. You might even save some money for your own deposit in a few years time.

Relax – It’s not the end of the world

Importantly, while it’s nice to charge off into the world and achieve all your goals, life hardly ever goes to plan. So if you’re thrown a curveball and end up living at with your parents, don’t be too hard on yourself. Besides, Mums know best.

Tired Of Breaking Resolutions? Make Long Terms Plans For The New Year

long term planningAs soon as the 1st of January strikes, we all make plans to give up on the junk food we love and kick start our exercise plans. Unfortunately, most of us fail with our resolutions nearly as quickly as we started as they are usually short term fixes. If you want to make changes which you stick to, it is important to make longer term plans so you have more chance of succeeding. A careful plan of what you want to get from your life will give you some goals to work towards and a much better focus for the future. Clear Debt If you want a fresh start with your finances, the most important step is to clear your outstanding debt. A clean slate with your finances will give you peace of mind and get you on track for the rest of the year, right from the offset.

If you are struggling to make monthly debt payments, you can contact your lenders and try and reduce these or make use of debt management services to deal with your lenders for you. They will be able to negotiate better rates for you or reduce the payments you need to make. A debt free start will help you to improve your credit rating so you can take out finance for other things in the future, which will give you better prospects in the future.

Improve Career Prospects Better career prospects are a good way to improve your finances and self-esteem and the beginning of the New Year is the ideal time to start your job search. January is usually quite a big time for recruiting as employers are planning for the year ahead, so it is the ideal time to get a good head start. If you don’t want a new job but just want to develop in your current role, the start of the year is a good time to sit down with your manager and talk about your career development plans for the year ahead.

Embrace New Hobbies The more hobbies you have, the more fulfilled you will feel so take up as many of these as you can. If you are not quite sure where to start, you can take up an evening class in almost any subject these days which will really help to broaden your horizons. There are plenty of hobbies you can take up and do at home which can offer a way to make some extra money, such as crafts and writing. There is nothing worse than sitting around the house feeling bored, which is why some new hobbies will really help you to get more from your life. Widen Social Circle A new year offers fresh enthusiasm and motivation to make your life better and one way you can achieve this is by widening your social circle. The more people you have in your life, the happier you will feel and there are always opportunities to meet new people and broaden your circle. If you decide to take up a hobby or a new job, this will provide you with a great opportunity to meet new people who share similar interests.

Travel the World There is a big wide world out there so a new year should be the time to think about embracing it. If you have the time and money, travelling the world is a great way to open your mind and experience new things. You will feel much more satisfied if you have experienced a bit of the world and it also gives another opportunity to meet new people and expand your social circle. If you have commitments that prevent you from travelling, it is a good idea to visit different places when you go on holiday, rather than sticking to the tried and tested. Challenge Yourself The only way to develop as a person is to challenge yourself as often as possible. If you have always wanted to sky dive for instance, take the leap and try it out as you will feel much happier and more satisfied with yourself. Life can become mundane if we don’t challenge ourselves so start the year as you mean to go on.

Jasmin Blunt is a blogger who made changes in her life to sort out their debts this coming year by seeking help from debt management services. If you are struggling with debts and want to start your year as you mean to go on, debt management is the perfect way to get your finances back on track.

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How NOT to invest for your retirement

 invest for your retirement

It is easy to get trapped into the wrong advice given by unscrupolous financial advisors trying to sell you what’s good for them and not for you. “No problem” they say. “You will double your investment” they claim, and you end up believing in their figures and their smile. There is another truth. If you do not want to end up like many people at or near retirement investing in the riskiest options ever, you should read carefully this infographic and evaluate your choices accordingly.

Many financial products are risky because they do not guarantee a steady return, but are instead linked to risky markets where you can have big gains… and big losses. In the more mature phases of one’s life, it is better to aim at something safer to invest your hard earned money. Did you know about the risks of these financial vehicles?

Variable annuities are not safe because they are linked to the mutual fund market. What about stocks? Well, better go to the casino instead. It’s important to make informed choices on such a critical aspect of our lives.

if you need the help of a qualified financial advisor, First Senior Financial Group is the team of professionals you need.

How To Cut Expenses and Retire Right

Retirement looks different for everyone, as every retiree has a unique budget, interests, passions and hobbies. One thing rings true for all retirees, however: The more you can cut expenses and save your pennies when you are young, the more financially secure you will be in retirement — and the better able to spend your retirement, and your savings, as you please. As you plan out your retirement, don’t neglect to factor in these five simple strategies for trimming your expenses from month to month:

  1. Get out of credit card debt. This is likely the number-one way you can save money when you are younger. If you carry high balances on your credit cards and credit lines, you will be throwing money away on interest — money that you could instead be saving for your retirement. If you are working to pay off credit cards, pay more than the minimum amount due so you can get out of debt more quickly. Decide on a set amount you will pay each month, and stick to it — perhaps even set your bill to autopay through your checking account so you won’t be tempted to pay less than what is due. Above all, pay your bills on time to avoid any dings on your credit report and score.
  2. Pay down your mortgage. As with credit card debt, the sooner you can pay off your mortgage, the sooner you can start putting that money toward your retirement. There can be tax advantages to writing off the interest on a mortgage, so work with a tax adviser to be sure this strategy is right for you, and be sure to check whether there are any prepayment penalties. If you decide it’s best to pay down your mortgage sooner rather than later, try accelerating your payments — for instance, pay every two weeks instead of monthly, or add $200 every month to your minimum payment.
  3. Get a smaller car. If possible and it makes sense for your family, buy a smaller car with lower monthly payments. Look for something with good gas mileage and positive consumer reviews so you can reduce your maintenance and gas costs. Naturally, your choice of a car will be a function of how you want to spend your retirement — for example, maybe you dream of traveling cross-country in an RV. However, if you aren’t able to cut your car expenses, know that you will need to cut costs in another area, perhaps in your home.
  4. Get your house in order. Do as many home repairs, upgrades and maintenance tasks as possible before you retire, when you have the income to spend on your home. Not only will you maintain and increase the value of your home, but you also will reduce problems later, when you won’t necessarily have the money to spend on repairs.
  5. Track your expenses. By simply writing down each expense throughout the month, you will get a clear picture of where your money is going. You might be shocked to learn you are spending $100 per month on lattes, for example. Take things a step further by calculating the retirement savings you could earn by investing that $100 instead of spending it, using one of the many free online financial retirement calculators. When you see an area where you are spending too much, take steps to cut those costs and invest the money in your future retirement.

The compounding effect of saving your money instead of spending it or using it to pay off debt can be huge. It’s well worth your while to investigate any problem spending areas and take steps to correct them. You might not be able to solve every problem before you retire, depending on your age and your income, but make an effort to address as many issues as possible and your finances allow.

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As the creator of, Felicia Gopaul helps consumers to make smart money choices for their current and future financial health. Her articles appear throughout the Web on various financial websites and blogs focused on providing quick, simple strategies for achieving financial security. Felicia recently moved to California from New Jersey and is happy to be soaking in the sunshine alongside her husband and two daughters.

The Importance Of Retirement Planning

Never Too Early To Start Planning For Your Retirement

Planning for your retirement is one of the most important financial decisions you can make. As a general rule, the earlier you begin to plan for retirement, the better. Even if you are young, it is always a responsible decision to save money for the future. If you are still unsure about whether or not you can afford to plan for retirement, you need to learn why retirement planning is essential. Here are a few reasons why you should begin saving for your retirement now.

Common Misconceptions About Retirement 

The number one mistake you can make it to assume that your retirement will be taken care of by social security and other government benefits. The truth is that no one knows how long these entitlement programs will last or what they will look like in the future. With more and more people retiring every day and less government money available to support them, social security may very well be a thing of the past by the time you reach the age of retirement. To avoid working yourself into the grave, you need to begin your own private retirement planning. If you take your future into your own hands you will have more control than if you leave it to the government.

Being Prepared For The Unexpected 

Another reason it is essential to oversee your own retirement planning is so that you can prepare for the unexpected. Often as people near retirement age they find themselves with costly medical expenses. Even if you do receive government benefits when you retire, there is no way those benefits alone will provide you with a comfortable living and cover rising healthcare costs for you and your loved ones. Even if you and your spouse are healthy now, there is no guarantee that an unforeseen medical situation will not arise once you get older. When it comes to planning for retirement it is always a good idea to prepare for the worst. If you do, you will be able to have a comfortable life no matter what financial burdens come your way.

It’s Never Too Early Or Too Late To Begin Planning For Retirement 

There are many reasons why it is important to plan for your retirement. Whether you want to save money to cover unforeseen costs or contribute money to help your children and grandchildren, flexibility is important when it comes to retirement. You never know what curveballs life is going to throw your way and it is always better to be prepared than to be left with no options. It is never too late to begin planning for retirement, but it is never too early, either. If you do not know where to begin, contact a retirement planning professional for help.

Information provided by retirement planning software provider Ask Trak to educate those planning for retirement.


Over Fifty-Five? Here’s Why You May Want to Consider Moving…

Over Fifty-Five? Here’s Why You May Want to Consider Moving…

Nowadays, senior homebuyers are one of the most powerful purchasing groups in America. It’s no wonder then that realtors are falling over themselves to serve the over fifty-fives, who are perceived to have changing needs and ample wads of cash.

Right now, there are a number of great opportunities in real estate for this more mature generation to take advantage of…

If you bought your house before the price boom, you’re probably sitting on a nice lump of equity, and the simple fact is, you might be able to get better bang for your buck elsewhere in the country than where you are now.

Of course it might be emotionally hard to get rid of that house you’ve lived in and cherished for decades, but staying in the same place could be restricting your options considerably, and potentially ignoring what you might really need as you approach your senior years.

At fifty-five, you probably still have many working years ahead of you, since not everyone of course is fortunate enough to retire that early. But it’s important that you start seriously thinking about your living arrangements for when you reach retirement age.

Downsizing Is the Way to Go

Quite simply, your house might be too big for you now. Your kids have probably long since flown the nest, and now you’ve got more room than you know what to do with.

Now, many people might turn their nose up at the idea of moving to a smaller home. After all, it took years of saving and working hard to get where you are today. But do you really need those four bedrooms?

Moving to a smaller home could free up extra capital, which you can spend on whatever you like, for example, an extra vacation a year or that fancy sports car you always wanted.

It isn’t always simply a matter of choosing what luxury items to spend your extra cash on though; if you can no longer afford to stay where you are, moving may become a necessity

After all, extra care can be expensive, and if you’re determined to stay independent and in your own home, downsizing could be the best option you’ve got.

Then, once retired, there may be a small retirement income you can count on, but that’s finite and it simply has to last you. Plus, a smaller home, or one in a cheaper area, could also mean lower gas bills and taxes, and who wouldn’t enjoy that?

Of course it’s not all negative — even if you’re downsizing, you might have the freedom now to buy that nice character property that was never practical when you had a family at home. Many over fifty-five homeowners love the chance to get back into the property market and choose the perfect home they always dreamed of.

Making Sure to Get Specialized Advice

Many realtors specialize in helping over fifty-fives buy homes and have a wealth of experience in doing just that. They’ll know better than showing you a gimmicky downtown apartment (unless that’s what you really want), and they’ve got tons of properties on their books that might be just right for you.

With fine-tuned inventories and the right know-how when it comes to buying a home for approaching-retirement age, choosing the right realtor who understands your needs is a must.

How to Choose Where to Move

Okay, so you’ve now decided you want to move, but where should you go?

This is probably one of the toughest decisions you’re going to have to make, but the right choice can make all the difference to your quality of life — not to mention, your balance at the bank.

For understandable reasons, many people won’t want to go too far. After all, family and friends might live nearby. But for others, the opportunity to start fresh somewhere completely new could be just what the doctor ordered.

And whereas some might love the opportunity to live in a well-maintained retirement or semi-retirement community, which can make your life infinitely more relaxed, many understandably would prefer to completely keep their independence in their own private home. Take the time to consider: which do you prefer?

Beyond this, you might live further from your close relatives than you’d like, so you could take the opportunity to move back closer to your family and spend more quality time with your loved ones.

You certainly wouldn’t be the first — many grandparents are keen to move closer to their families so they can help out while the new parents work.

Access to Quality Healthcare

As you get older, your health becomes more important than ever — and this might be one of the most important factors to consider when choosing your new home.

Many retirement and semi-retirement communities have first rate on-site health facilities, meaning you are never far from a doctor or nurse should you need them. And some even offer comprehensive twenty-four hour care packages.

Moving closer to a major medical facility is a choice many people choose to make, be it in a community setting or a completely independent neighborhood.

Unfortunately, changes in health as you get older place extra importance on things such as hospital access. How far the nearest ER is might not have been one of your considerations when choosing your current home, but it could be a smart idea for your next one.

And if you have specific medical requirements, finding the right local support group can make a big difference to your care. The simple fact is, some areas and regions simply have more options in this regard compared to others.

For some, these are important factors to consider that can make a huge difference when choosing where to live as you get older.

Choosing the Location That Best Suits You

It’s not all about healthcare though. Quite simply, you want to live in a location where your needs and wants can be satisfied. What made you choose your current home might no longer be relevant. Tastes change, and so do your housing needs.

Simple services such as cleaners and gardeners might not have been high on the agenda when you bought your current home, but in retirement, you might want to hire extra help to make your life easier, or simply because you can now afford not to have to do it all yourself!

And if you love golf for example, you may well want to consider moving near your favorite golf course, so you can enjoy your golden years doing what you love, without a hefty drive each way.

Creating and Enjoying a Better Quality of Life

There’s one simple yet vital factor that can make a huge difference to your wellbeing — the weather.

A fantastic all-year-round climate can take years off and make your retirement so much more enjoyable. Perhaps moving south just wasn’t an option in your working years, but what if now you can?

There are plenty of good reasons as to why Florida is one of the most popular retirement destinations in America — one of them being the year-long sunshine.

Spending more time outdoors can be great for your health. Sadly, for those in the northern part of the US, there are large chunks of the year when this just isn’t particularly feasible.

In the winter you might find yourself stuck inside and reduced to traveling everywhere by car, with snow tires to boot! A warm climate can make such a huge difference to your quality of life—it’s almost easy to underestimate the difference.

And aside from better weather, there are a number of other things that can greatly benefit your quality of life. Being stuck in the city (or the suburbs) might be ok when you need to commute to work, but being in retirement opens up so many possibilities. If you love hiking or enjoy going to the beach, then move near a mountain or closer to the coast!

More and more over fifty-fives enjoy sports and other recreational activities, and many areas obviously offer better provisions for this than others.

Quite simply, now that you’re winding up at the job and your children have left home, you don’t need to be tied to the same place. You might have chosen where you live now because it was practical and made sense for bringing up a family, but now you can move to somewhere you really love! Take the opportunity to pick the ideal lifestyle to suit your tastes and needs.

One very popular retirement option as hinted at above is moving to a golf community. Normally located in the southern states, such residences offer great year-long golf, meaning you can play every day.

The Downsides of Moving to Consider

The advantages to moving can be many, but it’s not all rosy. There are a few downsides that might convince you to stay where you are. After all, moving isn’t for everyone…

The Stress of the Move

Moving can be stressful, and it can be a stress many people would rather do without. After all, you might be comfortable where you are, and many people see no reason to change this. While a move might seem advantageous, you really need to weigh up the pros and cons carefully. The grass isn’t always greener on the other side.

Financial Viability — Can You Really Afford to Move?

While those downsizing to a cheaper area might find a great home that they can afford, many don’t. For a number of reasons, that home you really want still might be out of your price range. Then there are the exorbitant fees involved in moving — that money could be put to good use elsewhere.

If you bought your current home just before the credit crunch, you might be sitting on negative equity. This means you’re actually going to lose money on your investment if you sell your current home now — and this can be a massive factor in keeping people where they are.

After all, most people bought their house under the assumption it would go up in value over the years. While this has been true for those who might have held their house for longer, many have found themselves victims of circumstances beyond their control.

Being Close to Those Important to You

You might have found a lovely home in another part of the country, but are you still close to your loved ones? Most grandparents don’t want to miss their grandchildren growing up, and it can be a big reason why many stay put. After all, you might be able to find a nice house near the beach, but what’s the point if you can’t share it with your close family?

It’s probably the case that your children can’t move with you because they are tied to the same place by their jobs. Being close to your loved ones can be the number one reason why you might want to stay put. Of course, you could still move home but stay in the local area, but this restricts the choice you’re going to have.

Why It’s OK to Stay

You’ve worked on your family home over the years to suit you perfectly and really feel special. It might take years to get that feel again in a new home. For this reason, many over fifty-fives just can’t move away from the place they love.

Thankfully, there are still things you can do to adapt your house for your retirement. Many renovations can be done to improve your home and make your life easier as you get older, since as we’ve seen in some cases, moving can be far too expensive.

Make the Right Decision — The Wrap up

Deciding whether to move or not can be one of the biggest decisions you’ll ever have to make, so take your time with it. Don’t jump into anything to hastily — there are many positives and negatives on both sides of the argument. But hopefully you’ve seen how moving homes can greatly improve your quality of life in your senior years and make your retirement truly more enjoyable.

This article was written by Salvatore Induisi, owner of SFI Realty, and he recommends that you consider sunrise lakes if you’re thinking of retiring in Florida.

Investment Ideas for Families

Investment Ideas for Families

popular investment Investments are an important part of any family’s financial health. They help give you the security of knowing you have something to fall back on. And they can teach you and your children how the financial world works. Even if you’re a low-income family, you can still find investment options that work for you and your children.

Savings Accounts

This is one of the most popular investment options. Anyone in the family can open a savings account, even newborn children.

Savings accounts have many different interest rates. For children, the interest rate may be fairly low, perhaps 0-2%. But if you’re only teaching your children the importance of opening an account and saving money, then the low percentage shouldn’t matter.

Savings accounts with higher interest rates usually come with fees. But they can be waived if you maintain the minimum balance.

Investment Retirement Accounts

These type of accounts are also known as IRAs. The money in an IRA can grow without being taxed. Sometimes the taxes are deferred; other times the account is completely tax free.

There are several different types of IRAs, but the two most popular choices are Traditional and Roth. A Roth IRA is a retirement planning account that is tax-free as long as some conditions are met. A Traditional IRA doesn’t need a minimum yearly income amount to make a contribution. However, the money will be taxed once it is withdrawn from the account.

Both Traditional and Roth IRAs can be opened for minors. Although they cannot legally sign binding contracts, at certain financial institutions parents are allowed to sign for them in their stead. It might be helpful to seek from professional advice in this issue, and authorities like Mr. Brian Prince can help you with any investment or banking questions you may have.

How to Find Family Friendly Banks

Just like you would shop around for the best rates on anything you would plan to purchase, you need to shop around for banks. Try not to go with a bank that offers complicated financial investments to their customers. A bank that only does a few things, such as loans or mortgages, can focus better on customer service and on your needs.

Look for a bank that doesn’t have too many add-ons with your account, like extra fees for insurance. A bank that has reasonable or no fees should be your first choice. Remember that you’re making an investment. You don’t want to pay more in fees than you would get back in annual interest. You’ll actually be losing money instead of making it.

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