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Tips On How To Set Up A SEP IRA

May 21, 2010 By FPT Guy Leave a Comment

If you are one of those people who want to start saving for his or her future, then it is high time you know how to set up a SEP IRA. If you don’t know what a SEP IRA is, it is one of the best schemes for planning your future. Currently, it is only available in the United States. It is a savings for both the employer and the personnel. It follows most of the concepts of your traditional IRA. Your contributions are also tax deductible so that could lessen the taxes that you pay.

As you are in the planning stages of setting up your SEP IRA, the first thing you need to do is look for a financial institutions that would act as your trustee for the entire exercise. The trustee will hold the contributions that you make to SEP IRA. Check out the services of a prospective trustee before entering into any form of deal with them to make sure you are on the same boat when it comes to the types of investments they allow.

When you do set up the IRA, the main thing you should consider is that to start the process of setting up early in the year. That way, you will be able to make tax deductions on the same year.

The first thing you need to do is to provide a written agreement that connotes the benefits to the eligible employees of your company. Then, you must inform your personnel about the implementation of the said plan and ask them to fill in the requirements. And the last step in knowing how to set up a SEP IRA is to open the IRA account for each individual personnel.

Now that you know how to set up a SEP IRA, you will have a better chance in attracting great talents for your company.

Filed Under: Financial Planning, IRA, Retirement Planning Tagged With: , , , ,

Don’t Forget About Your 401k To IRA Rollover When You Switch Jobs

May 20, 2010 By FPT Guy Leave a Comment

Many employers now offer 401k programs for their employees. The idea is that the employees will work with their employers to help them prepare for retirement in the future. Normally the company will offer to match up to a certain percentage of funds placed into the 401k by the employee.

The 401k is the investment vehicle used by corporations which gives employees a number of mutual funds to choose from to invest in. Many 401k plans also allow the employees to invest their money directly into the stock of their employer (if it is a public company) so that their money can grow along with the company. This is all great, but people change jobs often, so what are they to do with their 401k money when they do.

If you are changing from one job to the next, then you are going to want to use a 401k rollover in order to make sure that you retain all of the money you have put into it. Remember, your 401k is your retirement money, so you do not want to lose any portion of it.

You may not be able to receive the portion of the money that your previous employer had put into the account if you were not with that employer long enough, but you should be able to get all your money out. You will also get the benefit of any gains that you have made on your investment. You need to check with your new employer to make sure that everything will roll over into their 401k offerings. Their may be some slight differences in the offerings, but they should be generally comparable.

Your 401k is one of the most important things in your financial life, and letting it rot away with your previous employer is a decision that you never want to make.

Filed Under: 401(k), Financial Planning, IRA, Retirement Planning Tagged With: , , ,

Finding Travel Insurance For the Over 65’s

May 11, 2010 By FPT Guy Leave a Comment

Have you ever had an elderly relative or friend ask you for help finding travel insurance? It’s happening more and more these days as insurance companies move to working online only. It’s great for the younger crowd who are comfortable using the Internet and computers but not so great for the older generation out there. I had to deal with this recently for a friend and I also found that getting travel insurance for the over 65’s isn’t that easy.

The best place to start is one of the many online travel insurance comparison websites. There are lots of them and some of the cater specifically for getting travel insurance for the elderly. This is only the first step in the process however. Once you have a good five or ten quotes print out the details including the phone numbers of the insurance companies. Don’t be too worried if the initial quotes are quite high as this is to be expected.

The way around this is to use the quotes given to you to haggle with the insurance companies and get a cheaper price. Take the cheapest quote on your print out and then start calling up the insurers who provided you with the other quotes. Tell them in great detail about the wonderful quote you have and then sit back and wait for them to make you a counter offer. If they do, great you are on to some great savings. If they don’t then no harm has been done. The only thing it’s cost you is the price of the phone call and five minutes of your time. Maybe ten if they put you on hold.

Following the steps above can not only get you an insurance policy for the elderly but get you one at a great price too. These companies want your business even if you are over 65 so don’t be afraid to haggle the price down.

Please check out our other insurance articles and guides:

“Finding A Car Insurance Broker”
“Car Insurance Brokers And Agents”
“Find A Good Home Insurance Broker “

Filed Under: Insurance, Retirement Planning Tagged With: , ,

Why You Must Save More – Make Your Retirement Wishes Come To Fruition

May 9, 2010 By FPT Guy Leave a Comment

If you’re like most Americans, you have a variety of retirement wishes planned out far in advance, with ideas of foreign travel, golf, sunny weather and relaxation coming to your mind every time you think about retiring. But are really on the right track to live out your retirement the way you’ve envisioned?

It’s important to hope for the best, but plan for the worst. If you’re like most people, you’re already behind on saving for retirement–even if you’ve been careful to try and stay on track. This is because most people don’t take rising costs into account when they for retirement, or they don’t place enough importance on this factor.

There are several major factors at play with regard to rising costs as you enter retirement. One is inflation, which in the United States will erode your spending power by roughly 2% to 4% per year on average. Another is an increase in your health-care costs due to the natural complications of aging. And yet another is: You know all those retirement plans you have? They’re darn expensive.

Finally, if you’re more than 5 years away from retirement, you should probably assume that Social Security isn’t going to help you. That isn’t to say that the system is definitely going to crumble, but the fund is currently being depleted much faster than it’s being added to. Therefore, you’ll be best prepared for the worst if you assume it won’t exist while you plan out your savings.

There are many great resources available on the web to find useful investing tips for fueling your retirement fund, and you should certainly check them out to come up with a solid investment plan. This can include buying an investment property or two if you’re really ambitious and want to get into real estate assets.  But making the right choices as to where you put your money can only help so much; just as important, you’ll need to make sure you save enough in the first place to retire comfortably.

Filed Under: Budgeting, Financial Planning, Retirement Planning Tagged With: , , , , ,

Choosing A Top IRA Company

May 5, 2010 By FPT Guy Leave a Comment

If you are venturing in opening an IRA, you cannot just say that you can do everything without needing to find the top IRA company. Always remember that one of the sure fire ways on how you will be able to climb up the ladder of success in the IRA is no other than to look for your very own top IRA company. This functions as an effective avenue on how you will be able to manage your savings well without much trouble and hassle.

Be very careful in opening your very own IRA account in a certain company because of the fact that there are companies which offer very high amount of penalties upon your withdrawal. It is very important for you find the best IRA rates and to know the background of every IRA company nowadays. You cannot just pick or choose one because your money and your future will be the one at stake. In order for you to know what IRA Company is the best for you, you should carefully examine the tools they offer. Ask yourself if what you are choosing offers tools that are easy to use. Through this, you will be the master of your retirement savings and you will always have the chance to use your green bills freely.

One of the best tools provided by a top company is no other than the retirement calculator which allows you to keep track of your investments. Aside from that, you will also know the level of your very own performance in the present setting. But what is more amazing is that you will not just a powerful glimpse on the present but on the future as well.

With the top IRA company of your choice, you are always rest assured that your future is always in good hands. So, if you are choosing the top company for your IRA, always heighten up your critical thinking skills in order for you to weigh and to examine the features and benefits it offers.

Filed Under: Investing, Retirement Planning Tagged With: , , , ,

Searching For The Right Fixed Rate Annuity

May 5, 2010 By FPT Guy Leave a Comment

A product of many myths and misconceptions, in the insurance and financial planning world, is the fixed rate annuity. Understanding what one of these products is and how they function is actually an easy process; however, what tends to confuse some investors are the contract’s details. Not helping the annuity’s reputation, many financial planners and advisors are warning their clients who are annuity buyers to completely avoid annuities.

For people who may be unfamiliar with the product, fixed rate annuities are a type of contract between the contract’s investor and the insurance company where a person makes monthly or scheduled payments that get deposited into in a special type of account. In return, the insurance company promises to distribute these payments to the annuitant after a specified period of time or during the course of the annuitant’s lifetime.

While all annuity contracts vary, whether variable or fixed rate annuities a contract with its duration determines the when, how and the amount of income will be distributed to a contract’s beneficiaries. Should the contract specify the annuity has a fixed rate, the interest rate will be guaranteed at a non-changeable rate by the chosen insurance company. A feature not offered with every annuity, some have special addendums and other clauses that inform persons entering into the annuity contract that returns will be higher than the offered minimum return rate.

As with all types of financial planning products, to stay competitive, rates on different kinds of annuities can vary among competitors as well those offered by the same company. Before entering into any kind of fixed deferred annuity obligation or contract as an annuity buyer, make sure an annuity and its terms have been fully researched; by yourself, as well as a qualified financial planner. Moreover, don’t purchase the first annuity that appeals to you without comparing at least some similar annuities offered by different insurance organizations.  You’re also going to want to find the best annuity rates possible for you annuity investments.

Prospective investors with established advisors can have their advisor research several different plans to discuss the pro’s and con’s of each plan with their clients before entering into any contract. This way, the tedious research into each company has been performed yet the client is still in control where to invest his or her money.

Filed Under: Financial Planning, Investing, Retirement Planning Tagged With: , , , ,

Selling Annuity Payments For Cash

September 21, 2009 By FPT Guy Leave a Comment

If you are looking to sell annuities, then you already know what an annuity is.  For those who don’t know,  an annuity is an investment that is will out every month during the life for the account holder or any beneficiaries.  Usually, at the beginning, a large sum of money is paid into the investment and then depending on what the interest rates are, it will determine how much you get paid out monthly.  Other factors that will weigh in are whether it is a life or term annuity.

A lot of people make the choice to sell annuity payments to an annuity payment buyer early for a myriad of reasons.  One of them could be that the interest rates aren’t as high as they would like, and they will maybe try to get another annuity with the best annuity rates possible.  Another reason people choose to sell annuity payment is to pay for education, or maybe they lost their job, or they have some medical bills that need to be paid for.  Or maybe they want to invest their money in another avenues that may pay out better.  No matter your reason for selling annuity,  you should be able to find a way to sell your annuity.

There are some thing to consider before selling annuities, and I made sure to think of all of these things before I chose to sell my annuity.  I had several fixed rate annuities in my portfolio for many years and I wanted to reap the rewards.  Since it was an investment, you’ll want to consider if you can get a good return on the original investment you made, by selling it.  If you can, then you may make the choice to sell an annuity.  If you have some financial goals that you want to reach, can selling annuity payments help you to reach those financial goals?

If you consider these things, you will want to look for companies that will buy your annuity.  You can find them online in different places, so definitely look around.

Filed Under: Investing, Retirement Planning Tagged With: , , , , , ,

How Does A Reverse Mortgage Work?

September 17, 2009 By FPT Guy Leave a Comment

In the past few years, reverse mortgages have become quite popular and are more widely available than they had been in the past, but you still may be wondering, how does a reverse mortgage work?  And what are the pros and cons of reverse mortgages?  A reverse mortgage is only available to people who are age 62 or older, therefore reverse mortgage loan providers only target seniors in their ad campaigns for these types of mortgages, especially seniors who have built up quite a bit of equity in their homes already.

So what is a reverse mortgage?
The way that it works is your reverse mortgage lender will begin to make payments to you, depending on how much equity you have in your home. This may seem much better than a traditional mortgage where you have to pay the bank monthly, but we’ll get to the reverse mortgage pros and cons in a minute. Any taxes or interest are included in the amount to be repaid, which will begin to reduce the equity in your home. The way that the lender will get their money is after the owner passes away, or when the house is sold.

A big majority of the reverse mortgage loans don’t even need to be paid back for a long period of time, and with some of them, they don’t need to be repaid at all. How they determine how much you will be paid each both is a calculation of how much your house is worth, how much equity you have, how old you are, and lastly the current reverse mortgage rates.

You can get paid from the reverse mortgage lender in a variety of ways:

  • A large lump sum.
  • Fixed monthly payments for as long as you live (These may be lower than other options.)
  • As a credit line you can tap into.
  • Fixed monthly payments for a certain length of time.
  • Or as a combination of monthly payments and an open line of credit.

There are some cons to getting a reverse mortgage for seniors:

  • There can be some hefty fees involved when getting a reverse mortgage, so it is definitely best to shop around and use a reverse mortgage calculator you can find online to help you to determine the amount of fees you will be paying for each lender.
  • You may be unable to get payments from the government such as your social security or Medicaid, because of your income from the reverse mortgage.
  • When you pass away, if repayments haven’t been made, then the house will go to the lender. If you were planning on putting it in your will, you may want to reconsider.

A reverse mortgage can be a great source of income for people who it suits their specific situations. Hopefully this reverse mortgage information has given you the tools you need to make an informed decision.  Heck, you could even work in the industry and get a reverse mortgage job.  Find out more about reverse mortgage pros and cons.

Filed Under: Loans and Mortgages, Retirement Planning Tagged With: , , , , , , , ,

Tips for Successful Retirement Savings

February 7, 2009 By FPT Guy Leave a Comment

It can never be too early to begin saving for your retirement. The more money you save the better your retirement will be! You’ll be astonished at the amount of money you can gather by altering a couple of things early. Here are some helpful tips on how you can get a boost in your retirement savings.

Re-evaluate your insurance. When you get older, there’s a chance you might not require the same insurance cover for life, car and house like you had when you were younger. Life insurance is designed to give income to you and your relatives but when the children have grown and left the house you may want to review how much your partner really does need. If you can decrease the amount, it means you can place the extra savings on premiums and then in your retirement fund.

It’s the same for your car and home insurance; as you gain financial security you can possibly afford a higher deductible if you have to. Increasing your deductible could reduce your annual premiums up to twenty percent, allowing you to put this extra money into the retirement fund. Hopefully, you’ll never have to use this insurance anyway!

Make your car your last priority. Resist temptation to buy a new car every couple of years and instead wait a few years after you pay off the loan before you trade in. The best thing to do is to continue with your monthly payment, but instead make it to yourself and put it into your retirement fund. These days most cars are well constructed so if you keep the car in good condition from the start, it will last longer and be reliable for years to come.

Pay off the credit cards. With their average interest of fifteen percent, keeping a balance on a credit card is the same as throwing money away. Pay off any debt the minute you can and once you get your balances to zero, avoid using the cards. If you do need to use them, then make sure you have paid the balance in full every month to stay away from any more charges. The money you used to pay in interest can now help towards your retirement saving account.

Seize advantage of the new 401K contribution limit and save the largest amount you can. You may sense a small pinch at the moment, but you will become accustomed to it and be thankful when you get to retirement. Remove the desire to spend cash by taking advantage of direct deposits from your salary. Also, when you get a raise, instead of getting something new or going out to for food more, why don’t you put that it into your retirement?  Also putting your money in instrument like a high interest cd or high yield checking or money market account is a solid idea to keep your money liquid, and gain at least a little bit of interest.
These tips should help you to put a little bit more cash away for retirement and you won’t even notice it’s missing. If you are vigilant right now and make sure to put money aside instead of living lavishly it will end up paying off in the long term!

Filed Under: Retirement Planning Tagged With: , , , , ,

Retirement And Your IRA

February 7, 2009 By FPT Guy Leave a Comment

We all love the idea of a relaxing retirement when you finally get to do all you never had time for. But we don’t all know how to plan money-wise for it. One of the more popular ways of saving for retirement is with an Individual Retirement Account or IRA.

IRA’s are accounts that you put money in for large amounts of time- like a savings for your retirement. These contributions to your IRA are more often than not tax deductible which means that you will be getting two benefits, saving for retirement and helping to decrease your tax problems.

If your employer has a company sponsored IRA (usually a 401K) you may be even luckier. Firstly, you can have your contribution taken off right from your salary and you’ll never even miss it! Also, your employer may match some, or all of your contributions. If you work for someone who is nice enough to match contributions than you should take full advantage and set aside the maximum amount they are willing to match.  It’s cash for free, so you’d be foolish not to!

Another idea for increasing your savings is a Roth IRA. This plan is popular with the people that don’t have an employer sponsored plan. A Roth IRA though is not the same as an employer sponsored retirement plan as the contributions aren’t tax deductible. The advantage, however, is that when you take cash out, you do not have to pay taxes on your withdrawals. With a typical IRA, the contributions are “before tax dollar” but, withdrawals are taxed. With Roth IRA, the contributions are “after tax dollars” but your withdrawals shall not be taxed.

You should think about your retirement account as just that, a savings account for your retirement. This means you should forget about the cash until you have retired. Try not to make withdrawals from it unless it is a big emergency. If you get a new job, make sure to swap your 401K plan to your new companies plan though.

Wherever you can, steer clear of withdrawals from your retirement fund. For example, if you change jobs, move your 401k (or other pension plan) straight into a Conduit IRA. This kind of IRA will uphold your plan’s tax-deferred position and allow it to be swapped around to another potential employer’s plan.

There are lots of different methods to save for your retirement, things are never clear cut and fixed so you should find help from a financial expert to get the most out of your savings. And remember – it’s never too early to start saving for your retirement – the more money you have the happier will be!

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Prepare To Enjoy Your Retirement

February 7, 2009 By FPT Guy Leave a Comment

Your retirement is looming on the horizon, that’s a great indicator that it’s time to start preparing! Planning early means when the time comes you’ll have enough funds saved up for the future.

Children commonly set the scene for our cost base in our middle years and there’s often plenty of time to prepare for your retirement when you plan things properly at this time.

Many people help their children through schooling and college so they don’t usually miss the money anyway. Using it as they near retirement is the perfect solution.

These middle years are exactly the right time to make other investment actions because time is in abundance at this stage of your life.

It’s very important to leverage your income by reducing the cost associated with your mortgage and loans because they’re very expensive. This is the first step on the lifelong adventure of stabilising your financial security.

The absolute last thing you want to happen is to have outstanding loans against your name when you begin your retirement. You want to be free from debt and best positioned to enjoy yourself into your twilight age. Although this is a great time to work other opportunities to further line your pockets.

Plus it’s a great time to enjoy your life more – even a decade prior to your actual retirement date. This is the time you’ll need courage to achieve some life goals you’ve been putting off, travel for example.

We are surrounded by plentiful opportunities, usually they’re found on the internet. In your 50’s you have the life experience to benefit significantly from these.

If you take the time and keep good care of yourself by preparing for the challenges the future holds you’ll keep yourself feeling young by stimulating your mind and body. Plus the state of your overall health will improve of its own accord.

You’ll ensure for many years the enjoyment of yourself and your partner.

Being fully aware of your monetary circumstances well ahead of time will open a lot of ideas which, whilst they can initially seem daunting, might be just the right thing to add needed spice to the middle years of your life.

At this exciting cross road in your life, you have lots of choices. Take the time and be honest with yourself. What do you truly want to achieve? What are your hopes and dreams? What will you do to achieve them?

Find lots of new ways to create the resources you need now, and for the future – don’t ever leave these exciting pursuits until you reach retirement otherwise time and your health could catch up and spoil it for you forever.

Above all else, be prepared to stop thinking about it, wondering what might of come is the worst thing to do.

I’m going to use an old business adage now. Plan and prepare well ahead of time and just do it!

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