Personal Finance Blogs
Featuring the Best Personal Finance Blog Articles
Today's Financial Independence Articles
View articles only on the topic you search below.
THE TOUGH PART COMES last. Saving for retirement is pretty straightforward: You sock away as much as you can, favor stock funds, diversify broadly, keep investment costs low and make the most of tax-advantaged retirement accounts. By contrast, paying for retirement can involve mind-boggling complexity—and a big reason is the tax code. The good news: Once you quit the workforce, you have a fair amount of control over your annual tax bill, especially if you […]
When people retire, they want to relax, move to a quiet neighborhood, and spend the money they’ve worked hard to save their entire lives. However, in this day and age, it isn’t quite that simple. With high inflation and an increasingly competitive real estate market, seniors need to be more careful with how they’re spending … Read more
What happens when you spend three decades talking to retirement experts? You learn that most of what people think they know about retirement planning is oversimplified or wrong. Christine Benz, director of personal finance and retirement planning at Morningstar, joins us on the Afford Anything podcast to share what she’s discovered after 31 years of interviewing experts across personal finance, tax planning, and Social Security. One key insight: The standard advice about withdrawing 4 percent of your portfolio annually in retirement misses the mark. Real-life spending isn’t that simple. In your 60s, you might spend more on travel. By your 80s, healthcare costs often rise. Benz suggests creating separate “pots” of money for different purposes – like a travel fund you aim to deplete within your first decade of retirement. Want to protect against market crashes early in retirement? Benz recommends keeping 5-8 years of planned withdrawals in cash and high-quality bonds. This prevents having to sell stocks during downturns. We talk about why retirement doesn’t need to be all-or-nothing. Instead of going from 40 hours to zero, Benz describes how many people benefit from a phased approach. This might mean keeping the parts of your job you enjoy while dropping the rest, or finding new ways to use your skills. The conversation shifts to housing choices. While many assume retirees move to Florida or Arizona, the data shows most stay put. Those who do move often end up near their oldest daughter. And while single-family homes tend to make people happier until around age 75, apartment dwellers report more satisfaction after that — largely due to increased social interaction. Benz shares her own retirement planning process. Despite being a retirement expert herself, she works with an hourly financial planner who tells her she’ll likely struggle to spend as much as she could in retirement. It’s a common problem — after decades of saving habits, many retirees find it psychologically difficult to spend their money. The interview wraps up with a discussion about relationships in retirement. Research shows that while older adults often have smaller social circles, these relationships tend to be deeper and more meaningful. They’ve pruned away the “good enough” friendships to focus on their closest connections. Benz’s insights come from her new book “How to Retire” and her work at Morningstar, where she creates free model portfolios and hosts The Long View podcast. Beyond the financial aspects, she emphasizes that successful retirement planning involves thinking about purpose, relationships, and how you want to spend your days — not just your money. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 0:00 What 30 years of retirement expert interviews reveal 1:34 Why spending in retirement is harder than saving for it 3:12 Beyond money: need purpose, not just leisure 4:00 The challenge: planning for an unknown time horizon 8:52 Should market fears delay your retirement? 13:42
Living frugally is not about deprivation but about empowering yourself to make smart choices that stretch your budget further. Boomers in retirement need to save … Read More 20 Frugal Habits for Boomers in Retirement To Stretch Their Budget
A reader wishes to retire with an ongoing home loan EMI and asked us how to plan for this using the freefincal robo advisor tool — a discussion. First, some general considerations. Retiring in the middle of a home loan service may seem odd to many readers. However, it is quite common. For example, SBI… The post Planning Retirement with an Ongoing Home Loan EMI appeared first on freefincal.
The Big Picture On Rent To Retirement: Investing in rental properties can provide a stable income for retirement, with options like steady monthly rent, lump-sum cash from sales, and equity loans. This makes it a sustainable alternative to traditional retirement funds. Rental income can enhance retirement stability, allowing for regular cash flow even after the property mortgage is paid off. Additionally, selling the property or borrowing against equity can provide financial flexibility when needed. While real estate investment offers significant retirement advantages, consider factors like property management, tax implications, and long-term planning for sustainable benefits. Disclaimer The information provided on this website is for general informational purposes only and should not be construed as legal, financial, or investment advice. Always consult a licensed real estate consultant and/or financial advisor about your investment decisions. Real estate investing involves risks; past performance does not indicate future results. We make no representations or warranties about the accuracy or reliability of the information provided. Our articles may have affiliate links. If you click on an affiliate link, the affiliate may compensate our website at no cost to you. You can view our Privacy Policy here for more information. (Guest article by Michelle Cornish, CPA) Most North Americans aren’t on track for retirement, according to a recent survey conducted by Bankrate. I spent sixteen years working in public accounting, where I helped people with their taxes and retirement planning. Over and over, I found that people fear they haven’t saved enough for retirement. Nearly everyone wonders, “Do I have enough?” “How do I know my 401k won’t run out?” and “What happens if the stock market crashes right after I retire?” The good news is that there is more than one way to retire comfortably. One way is to start investing in rental properties before retirement. Consider three of the ways rental properties can ensure a comfortable retirement: Steady monthly income, Lump sum cash payout, and Equity loans. Stocks typically must be sold to supplement retirement income, and bonds eventually finish paying out. In other words, traditional nest eggs risk running empty at a certain point, but rental properties keep paying indefinitely. Why Rental Properties Make Smart Retirement Assets Let’s dive in and take a closer look at these advantages of rentals for retirement, shall we? Steady Monthly Income Rental income is a great supplement to other income you may have in retirement. It can even provide the bulk of your retirement income! Ideally, you’ve owned the property long enough that the mortgage is paid in full. This increases your monthly cash flow because you don’t have to worry about paying the mortgage out of the rental income you receive. If the property has been well maintained over the years, then your only major repair bills should be CapEx (capital expenditure)-related. You can also increase the rent to raise yourself.
You spent your entire career working toward the day you could afford to live without worrying about a constant cash flow. Once you’ve established that lifestyle, aka retirement, you decided you would go all out, buying the most lavish, luxurious items you could get your paws on. Is this method of living the best kind … Read more
We have some amazing mentors in the Millionaire Money Mentors forums. Some of them are even accomplished authors! Over the next few months I’ll be sharing excerpts from some of these authors’ works. Today we have an excerpt from F.I.R.E. for Dummies — a book that I loved reading and is now my go-to for introducing people to F.I.R.E. It’s written by one of the mentors in the forums and makes for a great Christmas present […]
Whether you seek normal or early retirement, here are seven questions to ask once a year while reviewing your retirement portfolios. 1. What is the retirement corpus worth today? If you retire today, how many years can you be financially independent? If this number equals the years you expect to be alive from today, you… The post Five questions to ask while reviewing our retirement portfolios appeared first on freefincal.
The post The 10 Best Places to Retire in Delaware appeared first on Dividend Power. Are you thinking about retirement? Is Delaware on your list of potential destinations? If so, you’ve come to the right place. Delaware may be one of the smallest states, but it offers much. Active retirees can enjoy the beautiful beaches and excellent weather while city-dwelling retirees will find everything they need in the state’s best cities. Delaware also has favorable […]
You’ve got a target number. When your investments add up to it, eureka! You’ve reached financial independence. Retiring early is … Read more
I’ve seen it over and over again with clients: they reached financial independence at some point in their 50s or 60s. And then, years later (maybe several years, maybe a decade or more), they inherited a whole bunch of money from their parents. And it’s not that the inheritance does nothing for them, but it really doesn’t change their lives dramatically, despite being a very large sum. Christine Benz recently discussed the implications of a […]
It’s here! I’m so excited to announce that my retirement coaching website is up and running. Creating this website was a key milestone in my year of reinvention. It’s a place where I’ll share content about retirement lifestyle, healthy aging, and other areas of interest to older adults. The post My new retirement coaching website is here! appeared first on Boomer Eco Crusader.