An inheritance can be an amazing thing for you and your family, but it can also come with complications that you may not expect. Learning how to navigate your financial situation after receiving an inheritance can be a challenging situation that you might not be prepared for. You don’t want to make a serious mistake with your new financial situation so it is important to handle your inheritance with care.

Consult With a Financial Advisor

When you receive an inheritance, it is important to make sure you have accurate information on how it will impact your life. A financial advisor can guide you through the process and make sure you know the ramifications of your inheritance. They can also help you to use the money wisely. Many people handle inheritances on their own and end up spending their money too quickly or getting surprised by taxes or other issues that may come up. With a financial advisor on your team, you can avoid that kind of problem and ensure that you know what you are dealing with.

Review Potential Liabilities

You also want to make sure that you know what liabilities you might face with that money. Some of your inheritance may be things like money or property. However, you may also inherit debt, so it is important that you fully understand your inheritance and its implications. If the property still has a mortgage, you will have to pay it or assume the loan. The more you know, the more wisely you can address the inheritance you receive.

Think About Your Financial Future

When you get an inheritance it can be easy to think about what you want and need right now. However, it is a good idea to really think about your needs for the future as well. Your inheritance can help to set you up for retirement or give you a safety net to move forward with a business idea. It’s important to consider the future when you are making your plans so you can use your money wisely.

An inheritance can be a great thing for your life, but you want to make sure that you are handling it correctly. With the help of an expert you can plan out the best way to use the money you have. And then you can get back to living the best life you can.

Check out this article on why you should check your credit report at least once a year!

For many people, retirement is a time to downsize, simplify their life, or move to a new area that they have always wanted to see. This means that many people need to sell their home in retirement so they can live somewhere new or have extra money to go on their various travels. In those cases, it is important to get your home sold quickly, and with a little help, you can get a great price for your home in a short period of time.

Work With an Agent

It can be tempting to try to sell your home without an agent, especially if you don’t want to have to pay a commission. However, if you are looking to sell your home quickly and for a good price, you can really benefit from the help of an agent. In many cases, they can help you to get a better deal on your home than you could have gotten on your own. They also know how to navigate the paperwork and vet potential buyers. This can save you a lot of hassle and get you out of your home as quickly as possible.

Stage it Properly

Staging is everything when it comes to selling your property quickly. The appropriate staging should look good and appealing without being too personal. This is another place where a realtor can help you, since they have more experience staging homes and can help you find a stager if you need one. You should use neutral colors to attract the most potential buyers. That will keep your options open and help to spark interest more quickly.

Hire a Professional Photographer

Most people who look at your home will start by looking at the listing online. If the photos on your listing aren’t of a high quality, they likely won’t move onto the next step. A professional photographer, especially one who specializes in photographing real estate will be able to produce high quality photos. They also know what to emphasize and minimize in the photos they take to appeal to more buyers.

Selling your home can be the key to your retirement goals. And you want to get started sooner rather than later. When you can take the time to market your home appropriately you can sell it more quickly so you can move on to enjoying your life in retirement.

Check out this article about how to add more excitement to your retirement life!

Retirement can be one of the best times of life—or it can be miserable. How you live out your days in retirement will depend greatly on what you do to prepare for retirement. Here are a couple of things you should consider—even as early as in your 20s—to ensure that this time in your life will be an enjoyable one.

Become More Physically Active

Too many people have lived their lives with the expectation that, during retirement, they would be able to do all the golfing or sightseeing that they didn’t have time to do while working full-time. Instead they find that, because of aging and an unhealthy lifestyle, they are unable to pursue any of these activities. Therefore, to make for a better retirement, start preparing your body now by keeping it healthy and strong. Get regular exercise and make sure your exercise regimen includes strength, flexibility, and aerobic exercises.

Move to a New Home

Another tip when preparing for retirement is to move to a new home that better suits your needs. As you age, you will naturally start losing some of your mobility, so you need a home that will ensure your safety and comfort. It is recommended that you choose a home with a minimal number of stairs, as well as wheelchair accessibility. If you buy your new home in cash, you can eliminate the mortgage payment. This is a great idea in retirement, because it will give you one less monthly bill to worry about.

Reconnect with Loved Ones

It is no fun to be alone. Many older people struggle in retirement—a time in life that could be full of fun and fulfillment—because they don’t have anyone to share life with. If you are married or have a partner, rekindle your relationship by spending more time together and planning for your future together. If you are single or widowed, reconnect with good friends and neighbors to make sure that you don’t have to experience retirement without connections and support.

If this list is making you feel a little overwhelmed, don’t fret yet. Changes in lifestyle come slowly and require patient dedication. But you don’t have to make these lifestyle changes alone. Surround yourself with people and professionals who can support you and guide you. They can help you build a wonderful life that will continue into your retirement.

Read this next: How to Add Some Excitement to Your Life in Retirement

If you’re currently planning for retirement, you’ve probably thought a lot about your savings and your investments. But have you thought about what to do with the properties that you own? If you own multiple properties, you’ll want to have specific purposes for those properties during retirement. Here are a few things that you can do with a property during retirement.

Rent it Out

First off, one of your easiest options is to rent out your second home. Renting wouldn’t require a lot of effort on your part, and it would also provide a steady stream of income from that property which could help support you during retirement. There are a few steps you’ll need to follow in order to prepare your home to be rented. You would need to clean and inspect the house to make sure that it is ready to rent. You’d then need to create a renter’s contract so that the terms of your agreement are recorded. Finally, you’d want to post your property on several different rental websites so you can attract potential renters. Make sure that you interview each of them before you select a renter. Since you’re still owning the house, you want to make sure that your renters will take care of it to ensure that it doesn’t depreciate.

Sell it

Your next option is to sell your second home. This option would take a bit more time and preparation, but it would ensure that you wouldn’t need to continuously maintain the property. You’ll need to go through a few steps to make sure that your home is ready to be put on the housing market. For example, improving the curb appeal can help you sell a home faster. If you don’t have a need for the property and could financially benefit from selling, this is a great option for you.

Keep it as a Vacation Home

Finally, you can also choose to keep your second property as a vacation home. Of course, having your second home as a vacation home has obvious benefits. It would be nice to have a location for a quick getaway that you wouldn’t need to pay for. It could also be used by your children and grandchildren for family gatherings and vacations. Keeping your second home as a vacation home can also build even more home equity, which could help you financially during your retirement, especially if you end up needing long-term care later in life.

Remember that you can always rent, sell, or keep your second home as a vacation home. Now that you’re aware of these options that you have, start doing your research so you can come to the best conclusion for you and your family. Doing so will ensure that you are financially and emotionally prepared for retirement.

Check out this article on how to add some excitement into your retirement life!

Retirement is an exciting and rewarding time in life. Knowing where to settle for that retirement requires considering some important factors! Here are a few things to keep in mind as you plan your retirement location, so that you can take full advantage of the benefits of retirement.

Consider Moving Close to Family

Being close to your family allows you to spend important time with them that you (and they) will be grateful for. Be there to cheer on your siblings, children and grandchildren in all their successes, or comfort them in their struggles! This is valuable time for you to build and strengthen relationships with family members. Plus, the reliability of having family nearby in case of emergency, or even just to have someone near to spend time with, is a huge benefit of retiring close to those loved ones. It will feel more like “home” and may even allow more freedom with those near-proximity connections.

Move to Another Country

Retirement is also a great time to explore what the world has to offer! Try moving to a new country where you can learn about new cultures and lifestyles while in a low-stress stage of life. In fact, you may be surprised at how accommodating and welcoming countries are to new American residents. Take Mexico, for example. Buying property in Mexico is easy thanks to a friendly attitude toward international investment. The people there are eager to teach you about their culture and to make you feel like a part of their family. Thailand, Japan, Canada, and more are equally welcoming and each offer various aspects of cultural differences you can fall in love with!

Activities, Amenities, and Ambiance

Finally, consider the activities and hobbies that you want to participate in as a retiree. Look for retirement options that place you close to those places and things that you love! This is a great time for you to develop and practice those things that you are most passionate about, dedicating more time to them and your personal enjoyment. These and other amenities (such as medical care access, food and entertainment availability, and general care or maintenance provisions) are important to keep in mind as priorities! The overall ambiance or feel of the place should be one that you can truly relax in and feel positive in. There are places that offer all of these things and more; it just requires a little hunting to find them!

As you keep these things in mind for your retirement plans, you can feel confident that your location will be the perfect place for you to enjoy your favorite things about your life. Start your search today for that dream retirement location!

Check out this article on how to add some excitement to your life in retirement!

Retirement is a phase of life everyone looks forward to. After having worked so hard for so many years, you deserve the break! However, there are risks associated with retirement that can put you in trouble if you do not plan for them. Risks to your retirement that you can plan for include market fluctuations, inflation, and timing for social security.

Market Fluctuations

Prior to retirement, it is important to consider future market fluctuations. Changing values in money, 401K, taxes, and even healthcare can significantly impact your retirement savings. Sequence-of-return risk is the risk that an investor will experience negative returns based on their investments and money withdrawals. Any investments you make will constantly fluctuate with the market. To avoid backlash, it is best to have money independent of your investments and vary your investments to reduce financial risks.

Inflation

Inflation occurs when natural occurrences in the market economy change. Rising wages and rapid increase in raw materials contribute to inflation. Unfortunately, a dollar today will not buy the same value of goods in ten years. You can protect yourself against inflation by investing in anti-inflation assets like gold and commodities. Gold tends to gain value during inflationary periods because it is seen as an “alternative currency”. Commodities are raw materials used to keep the economy going: gas, oil, electricity, etc. Investing in materials that will never lose value will help hedge you against inflation.

Timing for Social Security

The timing for taking out your social security benefits can make a real impact on your finances. Technically you can take it between the ages of 62-70. However, the amount of money you get is impacted by when you take it out. At 62, you receive 25% less than if you wait for full retirement age. A retired vs working income will also affect your annual cost of living adjustments. If you wait until 70, you can receive 32% more at full retirement age. Of course, this depends on multiple personal factors, but the longer you wait, the more of a positive impact it will have on your finances.

Retirement is a well-earned achievement. It is important to ensure your hard work pays for your financial future. Remain financially secure by avoiding common risks to your retirement like market fluctuations, inflation, and timing for taking out your social security.

Check out this article on how to add some excitement to your life in retirement!

While financial scams are a big threat throughout all stages of life, they are especially prevalent during retirement. You must remain vigilant to protect your hard-earned assets after retirement. Learning to identify and avoid financial scams in retirement can save you thousands of dollars and greatly reduce financial stress in the later years of your life.

Watch What You Invest In

You may receive an increased number of calls or offers to help you better invest your money when you retire. When you first retire, it is imperative to plan out your finances and investments since you will be living on a relatively fixed income from that point on. Thus, those offering to help you decide what to invest in may seem like they are doing you a great favor. However, not all of these offers are legitimate, and you can easily be taken advantage of if you don’t do your research.

Protect Your Identity

Once you are ready to retire, you have most likely built up a substantial amount of good credit and impressive financial history. These are very attractive to hackers and scammers that may attempt to impersonate you or otherwise commit identity fraud. You should keep an eye on your credit report for missing or inaccurate information. Noticing something fishy on your credit report is often the first step to detecting identity fraud and protecting your identity. If you suspect identity fraud, seek help from trusted sources and make sure to secure your financial assets.

Limit the Calls You Take

Many scammers use phone calls to contact you and get your financial information by impersonating banks or investors, pretending to represent charity organizations, or fabricating stories about your debt. Limiting the amount of calls you take is a great way to avoid these types of financial scams. Make it a habit to check Caller-ID and not pick up calls from numbers you do not recognize. Also avoid giving out personal information over the phone including (but not limited to) your full name, social security number, and credit card number.

It can be difficult to recognize which financial offers are true and which are scams, especially as you grow older and reach retirement. However, staying aware of your assets and financial identity can help you avoid debilitating financial scams. Making a practice of carefully avoiding financial scams will ensure you with a well-deserved and relaxing retirement.

Check out this article on common sources of income in retirement!

Retirement should be a simpler time of life for you—but what happens when, unavoidably, you are expected to handle your retirement finances, estate, and health issues? Seeking professional help for each of these things will ensure that your financial, familial and physical health are all well-taken care of.

Determining Your Safe Withdrawal Rate

Budgeting for retirement is absolutely essential. Each month you will need to provide for your lodging, food and other living expenses, and anything else that you spend day-to-day on projects or entertainment or hobbies, or whatever it is you love to do… this is often called or considered a safe “withdrawal rate”, or the percentage of your funds that you can safely access on a routine basis. Planning this budget is something you don’t want to miscalculate. Spend some time with your financial advisor going over your projected retirement income, total savings, and potential growth of any investments to determine the amount of money you will have access to annually. Then, your advisor can help you create a safe and reliable budget including a set, safe withdrawal rate that you can depend on for those monthly living costs and any extra spending money! Feel more confident and more prepared for retirement as a whole by securing your financial safety early on.

Source: https://www.marketwatch.com/story/the-4-rule-is-being-debated-again-but-heres-what-you-should-do-11636999447

Estate Planning

Create a secure plan for yourself and your property! Make sure that your property—your assets, your trusts, and even your body—is all spoken for. If you die without a will your state will decide the fate of your assets. If you want your property to be divided amongst your loved ones, you need to create a will to allocate those assets according to what you want. The same can be said of the trusts you hold or beneficiary designations you make… create a verifiable record of your desires for each of these assets. Furthermore, you need to determine who will hold power of attorney in case anything is found unaccounted for and therefore available for dispute. An estate planning agent or attorney can help you cover all those bases, and leave you feeling comfortable with how your things will be taken care of after you are no longer able to do so.

Source: https://www.cainattorneys.com/wills

Healthcare Access

Your job before retirement likely gave you access to health insurance that you could lean on whenever you needed. Without that employment benefit, (and with potentially increased need for healthcare as your age also increases,) you need to make sure that you have a reliable healthcare plan in place! Explore all your options with the help of a health insurance agent that can point you in the best direction for your circumstances. You may have access to programs and policies that you are unaware of! Regardless of your decisions with healthcare, you should aim to find a program that will allow for both regular and emergency care to keep you safe and healthy.

Source: https://www.53.com/content/fifth-third/en/financial-insights/personal/wealth-planning/8-early-retirement-health-insurance-options.html

Take care of yourself by taking care of these few basic, precautionary aspects of retirement! Professional help will get you the proper plans you need to feel confident and comfortable in your retirement.

Check out this article on how to add some excitement to your retirement! 

If you have thought about opening up a retirement account for your investments, now is a great time to do so. There are a lot of benefits to contributing to a retirement account, especially if you start to do so early on in life. However, before you get started, there are a few things you should know about contributing to a retirement account in the quickly approaching year of 2022.

Why You Should Prioritize Retirement Contributions

One of the first things that you should know about opening a retirement account in 2022 is that you need to prioritize your payments and contributions to the account each month. Especially if you are just starting your retirement fund and are already a little bit later in life, you need to make a plan for your contributions to your retirement fund. Make sure that you examine your income and budget out a monthly or bimonthly contribution that you can consistently make to your retirement account. This will help your account to grow steadily, which will be helpful once you reach retirement age.

Contribution Limit Increases

Next, it is very important to be aware of contribution limits that apply to your retirement account(s). There are a variety of different retirement funds that you might open, so make sure that you find an account that has a contribution limit that will work for your budget and goals. For example, the contribution limit for SIMPLE IRA accounts has risen to $14,000, compared to the $13,500 from last year. Additionally, the total limit for all 401(k) contributions rises to $61,000 in 2022. Make sure that you’re aware of these limit increases before you choose which type of retirement fund you’d like to open. 

Check Your Eligibility

In years past, not all people have been eligible to contribute to a tax-advantaged retirement account due to their income. Some individuals of high or low income have had certain limitations put on their contribution eligibility. Luckily, one of the great changes coming in 2022 is that more people will be eligible to contribute to these types of accounts, specifically people that have had too high or too low an income in years past. This can be a great way to save money for retirement. 

So, if you’ve been wondering if this year would be a good time for you to open up a retirement account, remember what you’ve learned from this article. No matter if you feel that you’re a little late to the investment game, or if you’ve just landed your first job, there are many benefits that having a retirement account could bring to you. Just remember, there is never a bad time to invest in your future.

Check out this article on common sources of income in retirement!