The average retirement age in the United States is 62. Some workers get to 69.

But let’s be honest. Who, especially among millennials and GenZ, wants to work into their 60s? Don’t we all want to call it a day on our careers much earlier and do more meaningful things like traveling the world and, you know, watching Netflix all day?

The only problem? Money!

If you don’t save enough money for retirement, you cannot afford to retire early. Heck, you might not even retire at all.

The good news?

This how to retire early guide will help ensure you’re one of the early birds.

Know How Much Money You to Retire

Doing some research, you’ll quickly learn that experts recommend a nest egg of $1 million to $1.5 million.

Well, on paper, that’s a tidy bundle, but it doesn’t necessarily mean it’ll be enough for your retirements. First, it’s challenging to establish the exact amount of money you’ll need, simply because of life’s uncertainties.

You could have $1 million in your retirement kitty, but then you develop a serious illness a few years into your retirement, which wipes out the money. This being said, there are ways to take care of these uncertainties, such as purchasing adequate health insurance.

So, how can you determine how much money you’ll need?

Let’s crunch the numbers.

Begin by setting your target retirement age, say, 55.

Life expectancy in the U.S. is 78 years.

This means after retiring at 55, you’ll have 23 more years to live. But if you’re a tough cookie, you could get to 90+!

Next, what are your current living costs? If you spend $50,000 a year, you’ll need at least $1.15 million to retire at 55, and assuming you don’t live past 78 years!

Bear in mind living expenses tend to significantly increase as one gets older, so you should factor in that too.

Starting Saving, NOW!

A recent survey established that most Americans in their 40s have saved up a meager $63,000 for retirement. Considering that the ballpark figure is at least $1 million, it’s fair to say this lot is dangerously behind, and, ironically, they are the ones dreaming about early retirements!

A mistake many people make is starting to get serious about saving when they’re very close to the retirement age. Maybe this is when the reality of retirement hits home, or they simply believe they’ll be earning a lot more money in the future, so saving will be easier. Don’t be like these people.

If you want to retire early, you have to start saving right now. The earlier you start, the more time you’ll have to raise the amount of money you need to retire.

Let’s say you just turned 30, want to retire at 55, and you need at least $1.15 million for retirement.

So you have 25 years to save $1.15 million. In this case, you’ll need to put away $46,000 every year till you turn 55. Quite a challenge, but certainly doable.

If you start saving at 40, the amount you will need to save every year climbs to $76,000. For most people, this isn’t possible.

Again, start saving now.

Invest NOW

Let’s face it:

You can hum on about numbers as much as you’d like, but the hard truth is the average American isn’t going to raise a million bucks through savings alone. What will happen if, for instance, you lose your job? Your savings plan will be thrown into disarray.

This is why you need to start investing today.

Investing, as long as it’s done right, is a sure way to build wealth and get rich.

The question is: where should you invest your money?

If you’re anything like most Americans, you’ll want to put your money in the stock market, and for good reason. Folks who invested $1,000 in Amazon 10 years now have over $20,000, assuming they didn’t sell off their shares. If you’d put in $10,000, you’d have over $200K.

Looks all rosy, right? Not so fast! A stock market crash can wipe out your investment!

This means you have to diversify your portfolio. Another ideal investment market is real estate.

Unlike stocks, the value of real property cannot be wiped clean. Sure, the Financial Crisis of 2008 negatively affected the real estate market, but values will drop and start climbing back up after a couple of years.

Also, another selling point about real estate is you don’t have to invest in physical properties. You can put your money into Real Estate Investment Trusts (REITs) and wait for your profits at the end of the financial year.

Get Advice from Retirement Professionals

Planning for retirement might look easy on the surface, but it’s incredibly challenging when you dig deeper. In fact, left to your own devices, you’ll likely make costly mistakes that will only delay your desire to retire early.

It’s advisable to seek retirement plan services. These experts will evaluate your financial status and help you set smart savings goals and develop investment strategies that suit your needs.

Also, a retirement professional will help you develop the right mindset about retirement. You’ll learn that retiring early isn’t necessarily about age, but how well-prepared you are to hang up your spurs when you’re ready.

How to Retire Early Simplified!

It’s one thing to desire an early retirement, and it’s quite another to actually retire early. For most people, this will remain just a desire.

But with this guide on how to retire early, you now have much of the information you need to turn your desires into an actionable, achievable plan.

All the best and keep tabs on our blog for insightful financial advice.

In 2018, the average credit score in the United States was 704, which is considered ‘Very Good,’ and it is. Some lenders may offer people with this score the lowest rates, but there is no guarantee.

If you are one of the many Americans who find themselves in this boat, then you probably want to improve your credit score so you can also be a member of the 800-Plus Club. To do so, you must learn and understand everything there is to know about credit tradelines and how they affect your credit report.

[Read more…]

You’re about to take a big step in your career: taking your former passion project and turning it into a legitimate business. It’s an exciting notion. After all, you’ve probably been hearing people tell you, “if you do what you love for work, then you won’t work a day in your life.” It’s a romantic idea, to be sure, but turning your passion into a stable business can actually be very difficult to do.

Before you quit your day job, you might want to consider these 5 factors before you turn your passion into a business.

1.   Is the Market Viable?

This is arguably the most important thing to consider before you launch your new career. You’re going to have to study the market carefully and ascertain whether or not there’s really money to be made in your line of work.

Be honest with yourself. Just because you love your particular passion, doesn’t mean there are lots of people out there who are willing to pay for your product or service—or maybe not enough to provide you with a comfortable living. It’s not a bad idea to start your passion project as a side business first so that you can better evaluate its financial viability.

It’s great that you’re gunning for your dream career, but it might not be worth quitting your day job if you’re going to go hungry or become house poor. And you might want to be making enough money to adequately prepare for retirement.

Now how exactly can you evaluate the market? Easy: look at local businesses (or online businesses, if you’re going into ecommerce) and see how they’re faring. Take note of how many employees they seem to have and how much they charge for their product/service.

2.   Managing Employees is Hard

When you initially worked on your passion project, before you took to the private sector, you probably didn’t have to worry about managing employees. You were probably just working for yourself. But if your company is going to grow, or if you’re going to produce enough work to be profitable, you might need to hire an employee or two, or ten.

Hiring and managing employees is difficult, and the latter is a day-to-day job in and of itself. Before you hire a new job candidate, be sure you run a background or credit check for employment purposes. A credit check is especially important if you’re going to be hiring an accountant—you don’t want to hire a financial advisor who has bad credit. On that note, be sure you carefully budget your business before you start hiring—there are lots of businesses that hire too many employees too quickly and are forced to lay people off.

There are some great tools you can use to help manage your employees. If you have part-time workers, use a scheduling app like Sling. If you have office-based workers, use a project management program like Asana to assign tasks and due dates for those tasks. And for inter-office communication, use any kind of messaging app, like Slack or GroupMe.

3.   You’ll Have to Worry About Legal Stuff

When you enter the business world, you expose yourself to all kinds of lawsuits. Some of these lawsuits might come from disgruntled employees or angry customers. Other times, you might get pestered by the IRS or by your local tax jurisdiction for late or inaccurate tax filings, or late sales tax remittance. It’s important that you find a reliable lawyer you can regularly consult with. A lawyer may be able to help you out of a legal crisis, or they could help you avoid one in the first place. A lawyer might sound very expensive, but there are several ways you can save money on legal fees.

4.   It Could Kill Your Passion

The worst thing about turning your passion project into a business is that it could possibly kill your passion outright. When you’re exposed to all the stress that comes with running a business—financial management, hiring, scheduling, legal fees, business development, and regulations, you might find that it spoils your pure, youthful love for whatever it is you do.

5.   You Could Live Your Best Life

But there’s also a chance that you make yourself far happier and more fulfilled than you ever were at your day job. Maybe you build a company that’s a massive success, or maybe you create a smaller company that brings you a little extra pocket cash. At the end of the day, the only thing that matters is if you’re happy. And if you’re able to get away from that job that leaves you bored to tears from nine to five and do something that you’re truly passionate about, you’ll be all the better for it.

Do you know how much you’re paying for the actively managed mutual funds in your portfolio?

If you’re being honest, the answer is probably something like “not exactly.” That’s because mutual funds don’t always make their fees easy to understand, despite regulations requiring basic transparency from fund managers and issuers.

“My clients often ask me for plain-English explanations of the mutual fund and money management fees they see on their statements,” says San Francisco-based wealth manager Daniella Rand. “I don’t blame them. For those not steeped in money management, it’s a lot to keep track of.”  “I also find that the transparency of customer statements varies widely from firm to firm,” Rand continues.  “That is why The Rand Group has always spent as many hours as it takes to educate clients on what they are paying while making sure they are comfortable.  We’ve had far less questions since migrating our clients to Merrill Lynch, thanks to their #1 ranked statement industry-wide,” says Rand.  

Rand relies exclusively on “best in class” funds and money-managers to build custom portfolios for her clients, and she makes a point of educating prospective clients about the true cost of their existing investments. She’s not alone; many reputable wealth managers prize transparency and see their roles as, at least in part, educational and explanatory.

Want to know more about how your mutual funds make money? Here’s the skinny on calculating and reducing mutual fund fees.

Load Fees

Load fees come in several forms:

• Front-end loads, taken when investors purchase shares in the fund
• Back-end loads, taken when investors sell shares in the fund
• Constant or level loads, taken at regular intervals during the investor’s hold period

Not all funds charge load fees. Funds that don’t charge loads are known as no-load funds; ask your financial advisor which type is suitable for your needs.

Management Fees

All mutual funds charge management fees, which are the most common (and usually largest) component of the expense ratio. The management fee covers the cost of the fund’s management — literally, its managers’ salaries. A given fund’s exact management fee is a function of how actively managed it is; funds that require constant attention carry higher fees than passively managed funds designed to mirror the performance of a benchmark index.

12b-1 Fees

The 12b-1 fee is the most interesting, and most misunderstood, type of fee in the mutual fund universe. This fee covers the cost of marketing the fund to new investors. Although it’s part of the expense ratio, federal regulation requires its inclusion in the fund prospectus; fund managers can’t conceal it by folding it into the management fee.

It’s worth noting that many mutual fund managers see 12b-1 fees as counterproductive or even harmful to investors’ financial interests, although this is far from a universally shared view and many advisors make compelling cases for the fee’s inclusion in the expense ratio. Still, a significant minority of mutual funds don’t charge 12b-1 fees.

Building a Better Investment Portfolio

Mutual fund managers are no longer free to set whatever price they wish and expect investors to happily pony up. By and large, today’s wealth management clients are far more sophisticated than that. We’re operating in a fee- and expense-conscious environment, and that’s largely a good thing.

By the same token, wealth management clients shouldn’t automatically assume that lower-cost mutual funds or money managers are superior to more expensive alternatives. Yes, it’s true that fees can reduce investment returns over time, but fees aren’t the only determinant of fund performance. In many cases, it makes sense to pay more for higher-quality instruments poised to grow faster than their fees can keep pace.

Of course, these considerations are best discussed with your financial advisory team. Just as no two fund managers are exactly alike, and no two funds contain precisely the same component mix, no two investors are identical. You owe it to yourself to build a better investment portfolio that works for you and no one else.

More Americans are investing in either the stock market, mutual funds, or retirement pension. In the past years, people were uncertain about investing their money in stock trading, but today, first-time investors have access to best stock trading apps that help them make investment decisions.

[Read more…]

Going through a divorce can be one of the worst experiences a person can have. It isn’t pleasant to separate from someone you loved.

Unfortunately, divorce has become a common experience. 40% to 50% of couples in the United States end their relationships with divorce.

When you go through this process, you need to have someone on your side. You can find divorce lawyers everywhere, so how do you know who to pick?

Below are five tips you can use to find the best divorce lawyer.

1. Know What You Want

Before you settle on a lawyer, figure out what you want during this process. Do you want someone who is going to be supportive during the process, or are you just looking for someone to do the work?

You can find a lot of different personalities, so make sure you talk with your candidates to see if they are a good match for you. The last thing you want is to go through the process with someone you are uncomfortable with.

2. Ask for Referrals

You aren’t the only one who has gone through a divorce. You can probably find someone who has been through the process and worked with a divorce lawyer.

A referral is one of the best ways to figure out if someone is worth hiring. You can learn the good and bad of working with a particular lawyer, and what the process with them is like.

3. Consider How Many Assets You Have

Are you wondering if you will pay more if you have a lot of assets? Unfortunately, this is true. When you are dealing with a more complicated divorce, you are going to run up more bills.

Because of this, you need to be careful when you retain a high asset divorce lawyer.

Make sure you find someone that doesn’t go through unneeded motions that run up your costs. You may end up paying much more money than you need to.

4. Read All the Fine Print

Someone may sound like a great fit when you talk to them. But when you go to sign the contract for a retainer, there might be new details in the fine print.

Before you commit to a lawyer, read through any contracts all the way through. This way, there are no surprises that cost you more money.

5. Figure out How Hands on They Are

Every hour your lawyer spends on your case can cost you money. Because of this, some lawyers will suggest you handle some things yourself so you can save money.

Figure out what steps of the process you are willing to take on yourself. If you want to save money, you can hire someone that is more hands off.

But if you aren’t worried about the cost, you can hire someone more hands on to deal with the entire process.

Make Sure You Hire the Best Divorce Lawyer

Divorces usually aren’t a fun process. You need to make sure you find the best divorce lawyer so you can minimize headaches and get through everything without problems.

Make sure you do your research so you can find the right choice.

Do you need to get your finances prepared for the process? Head over to our blog to read our finance tips so you can get things ready.

Source

If you are a small business owner whose bank loan application just got rejected, don’t lose heart because you’ll eventually find a way to grow your business. Before you delve into the solution, look through various reasons why bank did not approve your application.

There are many reasons why banks are reluctant to lend to smaller businesses. These include:

• Unconvincing business plan – many new businesses lack a detailed business plan to support their loan application which gives the impression that you haven’t given your business idea proper thought and research.
• Little or no record of success – banks want to see a history of strong market position and financial statements which is something new or smaller businesses cannot offer.
• Lack of collateral – collateral acts as security on the loan and if you don’t have any, the bank has no assets to sell to recover the loan amount.
• Cash flow problems – due to limited revenues in comparison to costs, small businesses often have cash flow problems, so they’re likely to default on interest payments.

Source

Even if you are able to secure a bank loan, the interest rates offered to small businesses tend to be significantly higher than those for larger businesses as it is a riskier investment for the bank – this is evident in the graph above.

Since there are alternative finance options available, you don’t need to get disappointed.

1. SBA Loans

Getting an SBA loan is an excellent funding option for small businesses. These loans are provided under a program initiated by the Small Business Administration.

Lenders (usually banks), are encouraged to provide loans to smaller businesses at reasonably low interest rates for any business purpose, ranging from $5,000-$5,000,000. SBA itself does not lend money – it provides a guarantee to pay up to 80% of the amount, in case the borrower defaults.

2. Venture capitalists

If you have a business idea that has growth potential, you can seek out venture capitalists, willing to invest in your business. These are investors who fund risky business ventures in return for an equity share in the company. Not only do they bring in money but also their expertise, which can be very useful for a small business with little experience of the industry.

3. Partner financing

If you do not mind partnering with another business in your industry or with one that sells related products, partner financing is a viable option. It is beneficial for both parties – the partner provides funds in return for either a share of your sales or special rights of your product or its distribution.

If your partner is a larger business, you can receive other benefits from the collaboration such as, reaching out to their customers to expand your own market.

4. Crowd funding

If you require a small loan for a creative project such as, a documentary or book launch, there are several crowd funding sites where you can put up your case and ask the general public for contributions.

Small amounts of funding from a large number of people adds up to be massive, helping you achieve your goals. You can offer free samples of your products as a token of appreciation in return.

5. Home equity loan

Seeking a business loan by using their home as collateral is also an option utilized by many business owners. Once they are able to offer personal guarantee, they secure sufficient funds for their business. However, the option is risky as you put your home on the line, in case of a default.

The bottom line

To sum up, there are many options for smaller businesses to raise capital so they do not just have to rely on banks anymore. Look into the different financing options available in the market and choose the one that best suits your needs.

Have you heard of Amazon Business and you’re wondering what is it? It’s Amazon’s new online store entirely dedicated to businesses and professionals.

Amazon launched Amazon Business in April 2015 in the USA. It has features tailored to companies’ purchasing needs.

Among the most interesting options are:

• Displaying prices net of VAT.
• The ability to set approval procedures and multi-user accounts.
• Custom spending limits.
• Digital invoice management.

What are the benefits of Amazon business accounts? Is it worth setting one up? We explain everything you need to know about Amazon business accounts.

How Amazon Business works

Amazon Business is similar to the Amazon that we all know. But before you can use it, you need to create a company account. You can even convert your current account into a business account.

The Amazon Business account is free. You can create it without any commitment or the least turnover.

How to Register for Amazon Business

Want to know how to create an Amazon Business account?

Here is the step by step procedure!

• Connect to the page dedicated to Amazon Business
• Click on Create a free account.
• Enter a new email address to create a new account or enter the current email address to convert your account.
• Click on the “Send” button.
• Enter the name and your password.
• Click on the Next step.
• On the new screen enter the company information i.e. company address and the VAT number.
• Finally, click on Send.

The requirement to register an Amazon Business account is a VAT number and email address.

Complete the “Company name” section. Don’t use your personal name or your department’s name in this section.

You can either create a company profile from scratch or convert your existing one.

The procedure will take about 5 minutes. Afterward, everything will pass to the verification process that takes about 3 days.

Benefits of Amazon Business

Being a platform dedicated to businesses, it offers a series of specific advantages.

Let’s have a look at them!

1. Multi-user Accounts

First of all, it’s possible to add more users to a single account. You can also create different groups, and share payment methods.

Other features include order customization, set spending limits, and manage the company purchases.

Convenience, variety, and quality! Amazon Business can help you simplify the whole process of purchasing.

You can check, compare, and purchase what you require. It also has a payment option that is fast and flexible with reliable deliveries.

Besides, it can incorporate functionalities only designed for companies.

2. Extra Options in Your Purchase

This is where some more operational changes happen. It’s quite transparent for the client.

Amazon business users will have extra options such as a field to enter a project code or cost center. You can also set up an approval process to control your spending.

Amazon Business can help simplify your whole purchasing process. You can find, compare, and buy whatever you need.

Can you track your Amazon business account expenses?

Of course, yes! The Purchase Analysis tool makes it possible. Companies can track and analyze the various expenses made with their accounts.

3. Precise Control of Your Account

The main problem of using a personal account for business management is that you lose a lot of control. You might mix purchases, and you’ve to keep sharing the account with other users.

We all dread encountering such a situation!

Amazon Business accounts contribute a lot in terms of management. You can configure the Amazon Business catalog based on your purchase policies

It’s also possible to print the purchase receipt or a copy of the invoice.

What Are the Advantages for Small Businesses?

Have you had of the Amazon Tax Exemption Program? It’s a program that assists clients to apply the tax-exempt status to qualifying product purchases.

Account administrators help you set up the tax exemptions for your business accounts.

This tool guides users through the application process. You can use it to update your status and upload or edit certificates.

You can modify which items should have the tax exemption certificate applied. This should be after reviewing your order.

1. Better VAT Management on Your Invoices

This is always a worry to the company managers.

Does it worry you too? It shouldn’t! Keep reading to find out why.

The VAT management system has the following benefits:

• You can view the prices of each product net of VAT.
• You can manage the catalog. Thanks to the ability to specify preferences on products and sellers.
• Limit certain product categories.
• Generate alerts if someone tries to buy products that are not allowed.
• Associate an order number, project code, payment center for your orders.
• You can associate your orders with invoices.
• Integrate Amazon Business with your online systems.

When you adopt the price service with VAT excluded, they receive the Business brand. Do you need Click And Mortar Accounting services? We’ll get you there.

2. Exclusive Price and Quantity Discounts on Products

Obviously, Amazon Business is a service designed to buy large quantities.

Are there any discounts?

Amazon offers a discount according to the number of products that you want to buy. It also reduces prices on multiple purchases.

With it, you can view offers placed by vendors on a single page. Therefore, ensure you get the best price possible.

To show items for sale at a discounted price, you can click “Request a quantity discount.”

Want to spend less money on more goods? Then you got to register Amazon Business.

3. Delivery and Shipping Cost

Wondering how much money you’ll have to spend on shipping?

Amazon Business account has free delivery for purchases. It’s cheaper than that for private accounts.

Always confirm in advance that the seller delivers to your location. You can find this next to the “number of ordered items” and the “add to the basket button.”

Wrap-Up

Amazon Business is a powerful and flexible tool for professionals and companies. It allows them to manage their purchases efficiently and efficiently.

Since the registration is free, it’s worth trying and judging it for yourself.

Are you looking for additional benefits of Amazon Business Account?  Keep checking our blog for this and more business tips.