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11 Pieces of Advice Your Financial Advisor Isn’t Giving You About Retirement Savings

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Retirement savings

Retirement planning is an intricate process that demands a nuanced understanding of various financial strategies. In the rapidly evolving economic environment, it’s essential to explore all avenues to secure a comfortable retirement. This enhanced guide delves deeper into 11 crucial pieces of advice for retirement savings that might not be on your financial advisor’s radar but can significantly impact your financial stability in your golden years.

1. Diversify Beyond Traditional Retirement Accounts

Diversify

While traditional retirement accounts like IRAs and 401(k)s are vital, diversifying your investment portfolio is crucial. Explore different asset classes to mitigate risk and potentially increase returns. Investments in emerging markets or newer sectors like technology or green energy could offer substantial growth opportunities alongside your standard retirement plans.

2. Understand the Impact of Inflation

inflation

Inflation is a silent factor that can significantly diminish the value of your retirement savings over time. It’s important to invest in assets that not only keep pace with inflation but potentially exceed it. Considering investments in commodities or inflation-protected securities could be a wise move to safeguard your purchasing power in retirement.

3. Healthcare Costs in Retirement

healthcare costs

Many people are caught off guard by the escalating costs of healthcare in retirement. It’s crucial to factor in these expenses, including potential long-term care. To get a rough estimate, you could contact ‘caregiver agencies near me‘ and see what sort of services they offer and how much they charge. Additionally, try to seek ones that can be covered by insurance. Investing in a health savings account (HSA) or seeking insurance plans that offer comprehensive coverage in later life can be critical steps in managing these costs.

4. The Rule of 72

Rule of 72

The Rule of 72 is a quick, useful tool for gauging the growth of your investments. Understanding this rule can help you make informed decisions about where to allocate your resources to achieve your desired retirement savings goals within a realistic timeframe.

5. Maximize Tax-Efficient Retirement Contributions

Tax Efficient

Making the most of tax-efficient retirement contributions can significantly impact your financial health in retirement. Familiarize yourself with the different types of retirement accounts and their respective tax benefits. For instance, Roth IRAs offer tax-free withdrawals, which can be a major advantage in retirement planning.

6. Early Retirement Withdrawal Penalties

Early Withdrawal

Understanding the penalties for early withdrawal is crucial to avoid eroding your retirement savings. Be aware of the age thresholds and exceptions for penalty-free withdrawals, like those for medical expenses or first-time home purchases, to strategically manage your funds.

7. The Benefits of Delaying Social Security

delay social security

Delaying Social Security can be a strategic move. The increase in monthly benefits for delaying can significantly boost your financial resources in later years, especially as life expectancies increase and people spend more years in retirement.

8. Consider Part-Time Work in Retirement

part time work in retirement

Engaging in part-time work during retirement can offer more than just financial benefits. It can also provide mental stimulation, social interaction, and a sense of purpose, all of which are important for a fulfilling retirement life.

9. The Importance of Estate Planning

Estate Planning

Effective estate planning is a crucial component of retirement planning. It involves not just drafting a will but also considering how to minimize tax burdens on your beneficiaries and ensuring your health care wishes are respected.

10. Review and Adjust Your Plan Regularly

Reviewing retirement Plan

The financial landscape and personal circumstances can change, making it essential to review and adjust your retirement plan accordingly. This might include rebalancing your investment portfolio, revisiting your risk tolerance, and updating your estate plans as needed.

11. Understanding Retirement Living Options

retirement living options

Your choice of retirement living can significantly impact your financial needs and quality of life. Research different living arrangements and their costs, and consider how changes in health and mobility might influence your choice in the future.

Well-Rounded Approach

well rounded approach

A well-rounded approach to retirement savings involves looking beyond the standard advice and exploring various strategies to build a secure and comfortable future. Remember, the most effective retirement plan is one that is continuously evaluated and adapted to meet your evolving needs.

Is your retirement plan comprehensive enough? Share this article with others to spread valuable insights on preparing for a secure retirement.

Financial Freedom at 40: The 8 Step Roadmap to Early Retirement Success

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Roadmap to Early Retirement

Do you dream of retiring early and living a life of financial freedom? Do you want to spend more time doing what you love and less time working for someone else? If so, you’re not alone. Many people aspire to achieve financial independence and retire before the traditional age of 65. But how can you make this dream a reality?

The answer is simple: follow the 8-step roadmap to early retirement success. This roadmap will guide you through the essential steps you need to take to reach your financial goals and quit your job for good. Here’s what you need to do:

Step 1: Define your vision of financial freedom.

Financial Freedom

What does it mean to you to be financially free? How much money do you need to live comfortably and pursue your passions? What kind of lifestyle do you want to have in retirement? Write down your answers and keep them in mind as you plan your journey.

Step 2: Track your income and expenses.

You can’t achieve financial freedom without knowing where your money is going. Start by tracking your income and expenses for at least three months. Use a spreadsheet, an app, or a notebook to record every dollar you earn and spend. This will help you identify your spending patterns, find ways to save more and create a realistic budget.

Step 3: Pay off your high-interest debt.

High Interest Debt

Debt is one of the biggest obstacles to financial freedom. It eats up your income, limits your choices, and prevents you from investing in the future. That’s why you need to get rid of it as soon as possible. Start by paying off your high-interest debt, such as credit cards, personal loans, or payday loans. These are the most expensive and harmful types of debt, so focus on them first. You can use the debt snowball or debt avalanche method to pay them off faster.

Step 4: Build an emergency fund.

Emergency Fund

An emergency fund is a stash of cash that you can use to cover unexpected expenses, such as medical bills, car repairs, or job loss. Having an emergency fund will give you peace of mind, protect you from going into debt, and allow you to handle any curve balls life throws at you. Aim to save at least three to six months’ worth of living expenses in a high-yield savings account or a money market fund.

Step 5: Invest for the long term.

Investing is the key to growing your wealth and achieving financial freedom. By investing your money in assets that appreciate over time, such as stocks, bonds, real estate, or businesses, you can generate passive income and benefit from compound interest. The sooner you start investing, the more time your money has to grow and the less you need to save. You can invest in a variety of ways, such as opening a retirement account, buying index funds or ETFs, or creating a diversified portfolio.

Step 6: Increase your income.

Saving and investing are important, but they are not enough to reach financial freedom quickly. You also need to increase your income and boost your earning potential. There are many ways to do this, such as asking for a raise, switching careers, starting a side hustle, or creating multiple streams of income. The more money you make, the more you can save and invest.

Step 7: Reduce your expenses.

Increasing Income

Another way to accelerate your journey to financial freedom is to reduce your expenses and live below your means. This doesn’t mean depriving yourself or living like a miser, but rather being smart and intentional about how you spend your money. You can cut costs by eliminating unnecessary expenses, negotiating lower rates, shopping around for better deals, or adopting a minimalist lifestyle.

Step 8: Track your progress and adjust as needed.

tracking financial progress

Achieving financial freedom is not a one-time event, but a continuous process that requires constant monitoring and evaluation. You need to track your progress regularly and measure it against your goals. You also need to adjust your strategy as needed based on changes in your income, expenses, investments, or life circumstances.

By following these 8 steps, you can create a roadmap that will lead you to early retirement success. You can achieve financial freedom at 40 or even sooner if you are committed, disciplined, and motivated. Remember that this is not a race, but a journey that is unique to you and your situation. Enjoy the process and celebrate every milestone along the way.

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Invest Like This For Retirement at Age 50

5 Best Retirement Gifts For Women

How Should I Invest for Retirement At Age 50?

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retirement at age 50

If you want to retire at age 50, then you have to use a non-traditional strategy. While you can certainly invest using traditional retirement account approaches – like a 401(k) or IRA – that alone isn’t going to work. Removing money from those accounts before you reach age 59 ½ could lead to monetary penalties, which isn’t ideal. As a result, you need to invest a bit differently, ensuring you have access to the cash you need. If you want to make sure you are ready for retirement at age 50, here are some tips that can help.

Start with Traditional Retirement Accounts

Traditional retirement accounts like IRAs and 401(k)s do come with some benefits, usually when it comes to taxes. You may be able to deduct your contributions or, if you go with a Roth, won’t have to pay taxes on withdrawals. Those can both be very big deals financially.

While you can’t pull the money out penalty-free until your at least 59 ½ in most cases, that doesn’t mean these shouldn’t factor into your investment plan. You can simply let these accounts grow until you do reach full eligibility age, allowing them to become a source of income later down the road.

It is important to note that there are also some exceptions that allow you to avoid the early withdrawal penalty. For example, if you do go with a Roth IRA, you do have the option of tapping into your contributions early. Since you paid taxes on that money, you can withdraw those contributions at any time. However, if you tap into the earnings, you will get stuck with the penalty.

There’s also the substantially equal periodic payments (SEPP) exception. With that, if you make early withdrawals from a qualifying plan, including an IRA or 401(k), in equal amounts over the course of five years (or until you turn 59 1.2), you won’t have to pay a penalty. However, if any of those withdrawals deviate from the others, you might end up triggering the penalty.

Invest in Brokerage Accounts

After you’ve covered your basic retirement contributions, it’s time to move onto a brokerage account. Here, you can invest freely. You can add as much money as you’d like and make withdrawals whenever you want. As a result, they can be a solid choice for funding the starting years of your early retirement, essentially covering the gap until you can tap into your retirement fund.

When you choose investments, there are two points you need to cover. First, as with all investing, diversification is your ally. It provides you with some protection against the unexpected, including financial downturns or company or sector struggles.

Second, you need to be as aggressive as you can tolerate. You are investing for a shorter period than if you were aiming to retire at a traditional age. As a result, growth needs to be a core focus.

Now, this doesn’t mean investing to the point that makes you uncomfortable. If the idea of going beyond an 80-20 stock-to-bond portfolio split keeps you awake at night, then it isn’t a good move for you.

However, if your comfortable with taking on some risk, then push it a bit. If 80-20 doesn’t work for you, then maybe 70-30 does. Just understand that growth needs to be a focus if you want to retire early.

Additionally, understand that being aggressive doesn’t mean being irresponsible. Do your research before you choose an investment. Focus on diversification and rebalance your portfolio when the need arises. The goal is to be bold but smart about your approach. If you need to adjust your ratio as you get older to remain comfortable, then explore that option.

Add a Health Savings Account For Retirement At Age 50

As people age, their medical expenses tend to rise. As a result, it can be wise to plan for this eventuality, and a health savings account (HSA) can help you do that.

With a health savings account, withdrawals for medical expenses can be made as needed. What you don’t spend in a given year rolls over, so you can stash cash while you’re working, leaving it available for your post-retirement years. Plus, there are potential tax benefits, including deductible contributions and tax-free growth.

Additionally, if you have money in an HSA and turn 65, you’re free to treat it like a regular retirement account. You don’t have to worry about how you use the funds, as the account essentially starts to work like an IRA at that point.

Now, you can only open an HSA if you have a high deductible health plan. But if you’re in that boat, you might as well make the most of it and use it to plan for your future.

Do you have any other tips that can help someone invest for retirement at age 50? Share your thoughts in the comments below.

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My Company Offers A Standard 401(K)-What Does That Mean?

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the standard 401k

Starting your career and landing a job that comes with a retirement plan is a major financial milestone—congrats! Now that you have the standard 401(k), you might be wondering what it is and how it actually works. Below we’ll demystify the investing process and share some tips and tricks to help you get the most out of your 401(k).

But if you’re one of the 69 million workers who doesn’t have access to the standard 401(k) through your employer, don’t worry! We’ll cover other ways you can invest for retirement to ensure you still meet your financial goals.

What Is the Standard 401(k)?

The standard 401(k)
Pexels

The standard 401(k) is a relatively recent invention created by Ted Benna in 1979. It was intended to be an additional retirement benefit that employers could offer to supplement pension plans. But the standard 401(k) eventually overtook pensions because it’s cheaper for companies and more portable for employees. Pensions have to stay invested with the original employer, whereas 401(k) plans can be transferred when workers switch jobs.

Technically, there isn’t a “standard” 401(k) because every company’s plan has slightly different rules. Your vesting schedule, employer match, and investment options probably won’t be the same as your friend who works at another company. However, all 401(k) plan providers have a legal responsibility to offer investment options that are in your best financial interest. So you can feel confident that investing in your 401(k) is a good money move.

Any contributions you make will be taken directly from your paycheck, making it easy to build a nest egg. Plus, contributions are pre-tax, so you won’t owe income taxes on the amount you send to your retirement plan immediately. Instead, you’ll pay taxes on your withdrawals in the future, which is beneficial if you think you’ll be in a lower tax bracket after you retire.

How the Standard 401(k) Works

If you’ve ever had a brokerage account, the standard 401(k) investing process is similar.  Usually you can select from a variety of stocks, bonds, ETFs, or mutual funds. Some assets available in your retirement plan may have fees, so pay attention to the cost when choosing what to invest in.

Many people choose target date funds because they’re pretty hands-off. They automatically shift to lower-risk investments as you get closer to your retirement date, so you don’t have to worry about rebalancing your portfolio.

Don’t overthink this decision too much, because you should be able to make changes later if needed. You can usually adjust your asset allocation to tweak your investing strategy. However, there may be limits on how often you can alter your investment mix to prevent overtrading, so keep that in mind.

Although all investments carry some level of risk, you can generally expect your retirement plan to increase in value over time. Depending on market conditions, the standard 401(k) typically yields a return of 5% to 8% on average. You may see some temporary downturns during bear markets and recessions, but your assets should bounce back as long as you don’t panic sell.

The Benefits of the Standard 401(k)

Benefits of the standard 401(k)
Pexels

Aside from being a simple way to set money aside for retirement, the standard 401(k) comes with many other benefits. As mentioned above, contributions come directly from your paycheck automatically, which makes saving for retirement a breeze. The contributions are also pre-tax, so they can reduce your current tax burden.

In most cases, companies offer contribution matches with their standard 401(k) plans. This means that your employer will contribute up to a certain percentage of your income based on the amount you’re setting aside.

For example, many companies offer a partial match of up to 6%. So if you contribute 6% of your earnings, your employer will match 50% of that amount—an additional 3% of your salary. This is functionally free money that can boost the value of your portfolio significantly, especially over time.

The Power of the Employer Match 

Say you’re 30 and just started saving 6% of your $70,000 gross income for retirement. For simplicity’s sake, let’s assume you earn a 7% real return and don’t increase your contributions or income. In 35 years, you’ll have about $580,000 (in today’s dollars) in your retirement account.

The standard 401(k) growth
Investor.gov

But if you factor in the partial employer match that equals 3% of your salary, it’s estimated that your investments will grow to roughly $870,000—a $290,000 increase. This shows how important it is to contribute enough to your standard 401(k) to get the maximum match your company offers. It’s also a good idea to up your 401(k) contribution when you get raises to boost your savings rate and grow your nest egg even more.

Employer match
Investor.gov

What Happens If You Leave Your Job? 

If you leave your employer, you have options about what happens to your 401(k). Some companies may allow it to remain invested where it is. Alternatively, you might be able to roll the account over when you exit, transitioning the funds to your new 401(k) or an IRA.

You could also withdraw your funds from the account early, but doing so can trigger a financial penalty. Plus, you’ll have to pay income tax on the disbursement, and you’ll miss out on potential gains in the future.

How to Invest Without a Standard 401(k) 

Investing without the standard 401(k)
Pexels

If you don’t have access to the standard 401(k), you’re not alone. Roughly half of workers have to save for retirement without one. Luckily you can open an IRA to invest for your future, which stands for “individual retirement account.” There are two main types—Roth and traditional.

Roth IRAs allow you to invest for retirement with post-tax dollars. This means you can take tax-free withdrawals from your Roth after you turn 59 ½. However, a major downside of this type of IRA is that it has income limits.

Single-filers who earn more than $161,000 of adjusted gross income aren’t allowed to contribute to a Roth IRA. But fortunately high-earners can still utilize traditional IRAs. They don’t have any income limits and allow you to set aside pre-tax dollars for retirement, similar to the standard 401(k).

It’s important to note that both types of IRAs have relatively low contribution limits. In 2025, you can only contribute up to $7,000 in your IRA, which is much less than the max of $23,500 for 401(k) plans.

Options for Business Owners 

If you’re self-employed or run a business on the side, you can open a SEP IRA or Solo 401(k) instead. These accounts allow you to invest up to $69,000 per year or 25% of your total income/profits, whichever is lower.

If you have the standard 401(k), how’s it working for you? Share your thoughts in the comments below.

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These Are The 5 Best Retirement Gifts For Women

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These Are The 5 Best Retirement Gifts For Women

When a person retires, giving them a gift to celebrate the occasion is a common practice. However, choosing an appropriate present isn’t always easy. If you aren’t sure where to begin, here are five of the best retirement gifts for women.

1. Spa Gift Certificate

Most people view retiring as a positive. However, it’s still a significant transition, and that may cause some people to experience some anxiety. As a result, giving a gift that promotes relaxation can make a potentially stressful time easier to navigate. That can make a spa gift certificate a perfect choice.

Choose a spa that offers a range of services, allowing retiree to select treatments that they’ll enjoy most. Additionally, consider having a little extra on the gift certificate, as that may let them use the excess amount as a tip.

2. Hobby Items

During retirement, many people get to spend more time doing activities they enjoy. If the retiree has a favorite hobby, consider giving a gift that connects to it. For example, craft supplies, lessons that help them grow their skills, cooking equipment, or gift certificates to related stores could all work well.

3. Travel Gifts

Many people dream of traveling more when they retire. If the retiree wants to spend some of their newly available time exploring new cities, states, or countries, travel-related gifts can be a solid choice. You could provide them with a high-quality set of luggage, gift certificates to large hotel chains, or even a vacation package, depending on how much you’d like to spend.

4. Annual Entry Passes

For retirees that adore a particular type of attraction, an annual entry pass is a solid option for a retirement gift. Many museums, zoos, and aquariums offer yearly passes. Similarly, you can typically find annual passes for national or state park systems. With these gifts, you’re giving them the opportunity to spend time at their favorite attractions without having to pay to get in, which can allow them to spend more time there during the year.

5. Subscription Boxes

Today, there is a wide array of subscription boxes that can make great retirement gifts for women. Whether they’d appreciate a box of international snacks, wines from different regions, beauty supplies, puzzles, books from a specific genre, or nearly anything else, there’s likely a subscription box that can meet that need.

If you go with a subscription box, make sure that the duration is suitable. If you can pay for a full year, that’s ideal. However, if that isn’t in your budget, a three or six-month subscription can also work well.

Have you given any of the best retirement gifts for women listed above and want to tell others about the experience? Can you think of any other outstanding retirement gifts women may appreciate? Share your thoughts in the comments below.

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Your Retirement Savings Can Grow — Whatever Your Age!

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Are you worried about your retirement savings? You shouldn’t be! No matter what age you are, there are plenty of ways to grow your retirement savings. In this blog post, we will discuss some of the best methods for increasing your retirement funds. Whether you are just starting out in your career or close to retirement, there are steps you can take to make sure you have enough money saved up for later in life!

https://unsplash.com/photos/yIIFNiEKkYI

1. Invest in a 401(k) or IRA

 

If you’re looking for ways to grow your retirement savings, one of the best things you can do is invest in a 401(k) or IRA. Both of these options offer tax benefits that can help you save more money for retirement. If your employer offers a 401(k) match, be sure to take advantage of it! This is free money that can help you boost your retirement savings.

 

There are also different types of IRAs you can choose from, depending on your financial goals. A traditional IRA offers tax-deferred growth, while a Roth IRA allows you to withdraw your money tax-free in retirement. Talk to a financial advisor to see which option is best for you because investing in a 401(k) or IRA is a great way to grow your retirement savings, no matter what age you are.

 

2. Annuities

 

Annuities can be a great way to grow your retirement savings, especially if you are closer to retirement age. Before you look where you can buy annuities you should know that an annuity is a contract between you and an insurance company where you agree to make regular payments over a period of time. In exchange, the insurance company agrees to provide you with income during retirement.

 

There are different types of annuities, but one of the most popular is the fixed annuity. With a fixed annuity, you know exactly how much money you will receive each month during retirement. This can help give you peace of mind as you approach retirement age and start thinking about how much money you’ll need to have saved up.

 

3. Invest in Real Estate

 

Investing in real estate is another great way to grow your retirement savings. There are a few different ways you can do this, such as buying a rental property or investing in a REIT (real estate investment trust). Both of these options offer the potential for high returns, which can help you boost your retirement savings significantly. For example, if you invest $100,000 in a REIT that generates a return of 12%, you would have $112,000 after one year.

 

However, it’s important to note that investing in real estate is not without risk. Be sure to do your research and talk to a financial advisor before making any decisions. But if you’re looking for ways to grow your retirement savings, investing in real estate could be a good option for you.

 

4. Start a Side Hustle

 

If you want to grow your retirement savings, but don’t have a lot of extra money to invest, starting a side hustle can be a great option. There are many different ways to make money on the side, such as freelancing, pet sitting, or becoming an Uber driver. And with today’s technology, it’s easier than ever to get started.

 

Of course, starting a side hustle takes some work and dedication. But if you’re willing to put in the effort, it can be a great way to grow your retirement savings. Plus, it can give you some extra spending money in the meantime!

 

5. Save More Money

 

One of the simplest, but most effective, ways to grow your retirement savings is to save more money. If you’re not already doing so, start by setting aside a certain amount of money each month to put into your retirement account. Even if it’s just a few hundred dollars, it can make a big difference over time.

 

You can also try some creative methods for saving money, such as setting up a budget or utilizing cashback apps. And be sure to take advantage of any employer matching programs that might be available. The more money you can save now, the better off you’ll be in retirement. For example, if you have $100,000 saved for retirement, but you want to retire with $250,000, you’ll need to save an extra $750 per month.

 

6. Invest in Yourself

 

Investing in yourself is another great way to grow your retirement savings. This can mean taking courses to improve your skills, starting a business, or even just learning how to invest your money wisely. The more you know about personal finance and investing, the better off you’ll be when it comes time to retire.

 

Plus, investing in yourself can have other benefits as well. It can help you earn more money, which can then be used to boost your retirement savings. And it can also make you happier and more fulfilled overall. So if you’re looking for ways to grow your retirement savings, don’t forget to invest in yourself!

 

7. Live Below Your Means

 

One of the best ways to grow your retirement savings is to live below your means. This means spending less money than you earn and investing the difference. It’s a simple concept, but it can be difficult to do in practice.

 

If you want to retire comfortably, it’s important to start living below your means now. Start by evaluating your spending habits and see where you can cut back. Then, start investing the money you save into your retirement account. Over time, this can help you boost your retirement savings significantly. For example, if you save $300 per month, you’ll have $36,000 saved after 20 years.

 

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There are many different ways to grow your retirement savings. But these seven methods are a great place to start. So if you’re looking to boost your retirement fund, be sure to try some of these strategies. You might be surprised at how much they can help!

 

What other methods do you know of that can help grow someone’s retirement savings? Let us know in the comments below! Thanks for reading!

 

 

 

 

 

How Epsilon Data Management Facilitated Elder Fraud Schemes and What to Do if You Lost Money

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Epsilon Data Management Fraud Case

Between 2008 and 2017, Epsilon Data Management sold lists of customer names and addresses to companies involved in fraudulent activities. These companies sent letters or emails to consumers saying they won a big prize or free psychic reading if they paid a reasonable fee. These scams were aimed at the elderly and other vulnerable individuals who paid the companies for the prizes or physic readings and received nothing in return.

The Epsilon Data Management Company had to pay $150 million for fraud and in 2021 entered an agreement with the Department of Justice and the US Attorney’s Office for the District of Colorado. They continued to sell client information even when their employees knew some of their partners had been arrested for fraud and scams.

Companies that sell customer lists have a responsibility to sell the lists to ethical companies and protect consumer information. Victims of this scam by Epsilon Data Management were to be contacted directly by the company, and funds are expected to be distributed by an independent claim administrator.

Types of Consumer Fraud

There are many distinct types of consumer fraud. For example, one company called consumers on the phone and told them their personal computers had serious technical issues. They posed as technicians and demanded payment for unneeded technical support.

There have been wire transfer companies involved in fraud, and consumers have reported that their funds never arrived at the bank or that the person for whom they were intended never received them. Some customers lost thousands of dollars, and the issue has never been resolved.

During the pandemic, companies sold fake vaccine kits and cures to consumers. Robo calls, telemarketing calls, emails, texts, and even door-to-door solicitation are just some of the ways scammers market their schemes. The level of federal fraud security class actions in 2019 was high, with plaintiffs filing 424 cases in 2019 as compared to 413 in 2017. Federal fraud security cases and federal civil cases continue to increase every year due to new scams.

What to Do About Scams and Fraud Schemes

When you discover you have been swindled or scammed, report the company and the scam to the appropriate agency. If you are a senior, you can report it to the Elder Fraud Hotline or the Department of Justice. Additionally, your state financial controller and attorney general take reports and complaints about fraud. You can report your case to the Better Business Bureau if a local company is involved in a scam. In severe scam cases, charges may be brought to the federal court. In 1962, 11.5% of federal civil cases went to trial. Today, only around 1% of civil cases actually reach trial in the Federal courts. However, for cases as large as the Epsilon Data Management case, taking the case to the federal level is essential.

If you are regularly paying the company that scammed you, do not pay any more money. Collect emails, documents and conversations you have had with the company to document the fraud. What websites or phone numbers did you use to contact them? Where did the money you paid come from and how did it affect your finances? All this information can be used to file a complaint.

If you provided a credit card number, debit card number, or bank account number to pay for services, you should contact the bank or credit card company to report the scam and fraud incident. You can change your passwords or be issued a new card or account number. Your financial institution can also freeze your account until the issue is resolved.

Some homeowner’s insurance policies have fraud theft protection for losses related to identity theft that affects your finances. You can hire a lawyer to help you with your case and a financial counselor to help you devise a plan to improve your financial situation. In cases of severe money loss, chapter 7 bankruptcy debt allows consumers with credit card balances, medical bills, and personal loans to have the fees discharged. This allows you to move forward with rebuilding your finances after you have been frauded out of your savings.

Reporting scams to the right agency can help protect other consumers and may be a way to help you with finances. Hiring a lawyer, financial advisor, or accountant can be a way to deduct costs from your income taxes and help you recover and protect yourself from scams going forward.

This Is How Much Money You Need to Retire Before 50

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retire by 50

For many people, the idea of retiring well into their 60s just isn’t appealing. Instead, they’d like to leave the workforce far earlier, giving them time to travel, explore hobbies, or spend time with family and friends. While retiring before age 50 is a challenge, it is doable if you set aside enough money. If you’re wondering how much money you need to retire before 50. Here’s what you need to know.

Is There a Magic Number That Lets You Retire Before 50?

Technically, there isn’t a magic number that means you’re in the clear to retire before age 50. The main reason for that is that everyone has a unique preferred lifestyle. Thus, altering how much money they’ll need to have available. Plus, your health might vary from the norm. Which could cause you to need to spend more or less in what’s often an expensive category.

Since how much money you’ll need is personal, don’t rely on a magic number presented by someone else, even if they’re a financial expert. Instead, you need to assess your own situation, allowing you to factor in your needs and preferences. That way, you set enough the right amount of money based on your unique situation, reducing the odds that you’ll experience an unexpected financial hardship after leaving the workforce.

Determining How Much Money You Need to Retire Before 50

As mentioned above, how much you’ll need to set aside to retire before age 50 depends on the type of lifestyle you want to maintain. If your goal is to travel the world, you may need to replace 100 percent or more of your annual working income. If you’re aiming for a modest life at home, you may be able to scale back to somewhere in the 60 to 80 percent range.

However, along with your lifestyle, you need to account for costs that may rise over time. For example, medical expenses usually go up as a person ages. While some of that might get offset once you reach Social Security age and can start receiving that income, whether that’s sufficient may depend on the condition(s) you have and the treatment that’s required.

Finally, it’s important to remember that lifespans vary. While you can use averages, family history, and current health levels to get an estimate, you may end up living for years past that point. As a result, you may need to assume that a buffer is necessary.

Calculations For Retirement

Once you consider those points, you can start performing some calculations to get a baseline of how much you may need. Generally, you want to begin with a simple equation that doesn’t involve any interest-earning potential, such as:

Annual retirement income x Number of years in retirement = Savings target

Your annual retirement income is simply the pre-tax amount you believe you’ll need to live your preferred life. For the number of years in retirement, you can subtract the age you plan to retire from your life expectancy. By doing that, you can get a rough savings target that can serve as a starting point.

The benefit of not factoring in interest is that any earnings post-retirement can serve as a buffer against a longer life expectancy, market downturns, inflation, or other challenges that may arise. Similarly, by not bringing Social Security into the equation, you’re supplementing that buffer, giving you even more protection.

How to Save Enough Money to Retire Before Age 50

Once you have the savings target, you can use a retirement calculator to determine how much you’ll need to set aside each month to hit your goal. While you’ll have to estimate your earnings, as there’s no way to know precisely how the stock market will perform, by using a slightly conservative number for your growth potential, you can make sure you won’t fall short.

Beyond that, if you want to retire before age 50, you’ll need to use a multi-faceted approach to ensure you have enough money set aside. First, you’ll want to max out any available retirement accounts. In most cases, using both an employer-sponsored option, like a 401(k), and an IRA is your best bet, as you’ll get to capture some tax advantages.

After that, you’ll need to shift onto other platforms. A traditional brokerage account typically isn’t a bad option. Often, you can invest in similar assets to your retirement account. Plus, there aren’t any penalties if you start making withdrawals before age 59 ½.

In many cases, you’ll need to be fairly aggressive with your investments as well. Otherwise, you may not capture enough growth potential to ensure an early retirement. While that does mean taking on risk – and potentially seeing some losses – with a properly diversified portfolio, forward progress is often more likely.

Making Sure You Remain on Target Over Time

As you set money aside for your retirement, you’ll want to assess your progress and potentially changing needs as time passes. By monitoring your balance, you can see if you’re getting close to the target, letting you know if you need to save more aggressively or not.

By reviewing your needs to see if they’ve changed, you can adjust your target accordingly. For example, if your health situation changes, you can account for cost differences. If inflation alters the amount of income you’ll need, you can shift the target upward to accommodate that.

In most cases, you’ll want to review your situation at least once a year. As you get closer to retirement, you may want to do a check-in every three to six months.

Also, you might want to adjust your investment allocations once retirement is near. While you’ll want to ensure you can still capture some earnings, reducing risk can possibly preserve more of your money, which may give you peace of mind as you get closer to leaving the workforce.

Once you reach retirement, you’ll still want to check your account at least annually. That way, you can potentially adjust your withdrawals should the need arise, allowing you to make sure that you’ll have enough money available to last your entire retirement.

Do you want to retire before 50? If so, do you think the amount of money above is sufficient, or are you aiming for more? If not, is the amount you need to save what’s holding you back, or is there another reason why you plan on delaying retirement? Share your thoughts in the comments below.

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Five Financial Questions Women Should Ask About

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It’s no secret that women face unique financial challenges. From the gender pay gap, to managing household finances, it can be tough for us to make informed decisions about our money. To empower ourselves and make sure we’re on the right track financially, we need to ask the right questions. Here are some of the most important ones.

What Insurance Should I Have?

Insurance is a big (and often surprising) topic for women: we live longer, are more likely to experience a disability that impacts our earnings, and are more likely to support children or elders. We have a stronger need for a safety net.

As a high-level guide: max out any employer-sponsored coverage (like through your job) and then get an individual policy for the remainder of your need, as your budget accommodates.

Life Insurance

Life insurance is a tax-free gift you give the next generation, and term life insurance is inexpensive. Buy what you can afford, on the private market or through your employer.

Disability Insurance

Disability insurance is so important for women – it will replace a portion of your income if you can’t work, and you want to target 60% and 70%. Especially if you are a single mom or supporting family. To achieve this target, you will probably need a private policy in addition to any coverage from your employer (if available).

Long-Term Care Insurance

And finally, if you’re approaching retirement, long-term care insurance is important if you want to make sure you don’t have to spend all of your savings on health care in retirement. It can be very expensive, so don’t purchase this til you’re older and approaching the need for it.

These are just general guidelines – there’s no one right answer when it comes to insurance. It’s important to talk to an expert (like a financial planner) about what kind of coverage makes sense for you given your unique circumstances.

What is the Best Way to Budget?

There’s no one right way to budget your money – find the method that works best for you and stick with it! Consistency is much more important than perfection.

The Envelope Method

Some people use the “envelope system” where you put a certain amount of cash into an envelope for each category (like groceries, entertainment, and transportation). That’s all you get for that category for the month. This is great if you have to be very careful and want to stay away from credit cards entirely. It’s also a great system if you like using a physical planner over software/apps.

Budgeting Apps

If you prefer using technology to manage your finances, there are a number of great budgeting apps out there that can help you track your spending and set goals. Some popular options include Mint, You Need a Budget (YNAB), and EveryDollar.

Spreadsheet Budgeting

For those who like having more control over their budget (and who are comfortable with Excel or Google Sheets), creating a budget in spreadsheet form can be a great option. This method gives you a lot of flexibility to track your spending in the way that makes the most sense for you.

Pay Yourself First

One of the best ways to make sure you’re saving enough money is to “pay yourself first.” This means that as soon as you get paid, you put some money into savings before you spend any of it. This can be difficult at first, but if you make it automatic (i.e., set up a direct deposit from your paycheck into your savings account), it will become easier over time.

What is the best way to save money?

Again, there is no one right answer to this question – it depends on your goals and financial situation. But the upshot is that you can build an emergency fund or improve your generational wealth. Here are some general tips that can help you get started:

Increase Your Income

It can be very challenging, but to save money, you need to bring in more money than you spend. You can lower your costs and watch your spending, but you can also increase your income through a side hustle, a raise at work, or a promotion. You could sell extra things around your house. You don’t need to make a huge commitment – even small improvements in your earnings can make a big difference.

Automate Your Savings

Set up automatic transfers from your checking account to your savings account so that you’re automatically putting away money each month. This is a great way to make sure you’re always saving something, even if you don’t have a lot of extra money.

Join a Savings Challenge

A savings challenge is a great way to encourage you to save more money and get some community support. There are all kinds of challenges out there (like the 52-week challenge, where you save $52 in week one, $51 in week two, and so on), but the important thing is that you find one that works for you and stick with it. Dasha Kennedy at the Broke Black Girl runs a great year-long savings challenge to help women save $1000.

How Much Do Women Need to Save For Retirement?

As much as you can.

Women retire disadvantaged: we generally receive lower social security benefits due to lower earnings. We also tend to live longer (which means more years in retirement), and we’re more likely to experience a period of disability. All of this points to the need to have a larger retirement nest egg.

Target 20% Savings

Controversial opinion: I encourage all women to target 20% of pre-tax household income for savings. That is a lot. But most of us are playing catch up, and starting from lower earnings. Build up to it by increasing your savings rate little by little, and remember that even small amounts add up over time.

Invest Your Savings

You want to make sure your money is working hard for you, and one of the best ways to do that is to invest it. Investing can be intimidating, but on average, female investors outperform by 1% because we are less likely to panic. 1% is what professional investment advisors charge. Set up auto investment, choose low fee index funds and increase your contribution little by little. Like saving, successful investing is about consistency and patience.

What Biggest Money Mistake Should Women Avoid?

The biggest mistake you can make is to hand your finances off to a partner and ignore them. Women are socialized to do this (and it’s changing, slowly) but we pay for it. If you are widowed or experience divorce, you will be adding a terrifying and steep learning curve to a personal crisis.

Additionally, and I say this as Chief Financial Officer of our family, financial decisions will be better with your input! Even though I do this for a living, my husband often has great insight and our decisions benefit from his involvement. Don’t discount your ability or perspective, especially given that women are better investors.

Retirement Bill in Congress

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Congress has a new retirement bill in the works. They’re calling it Secure 2.0 and it has a few transformational pieces to it that will change retirement saving and retirement income planning. Before we get too far into what this new bill looks like, let’s take a look at what the original Secure Act did.

Secure Act 1.0

The Secure Act was enacted on January 1, 2020, and was the largest retirement reform bill since the Pension Protection Act of 2006. The full title is Setting Every Community Up For Retirement Enhancement (SECURE). And it passed through Congress with a 417-3 vote.

The beginning age to which to start taking required minimum distributions (RMD) from retirement accounts (excluding Roth accounts) was moved from 70 ½ to 72.

People can make retirement contributions no matter what age, as long as they have earned income. The previous limit was 70 ½ when RMDs would begin.

Inherited IRAs (non-spouse beneficiaries) have to have the entire account withdrawn within 10 years of receiving it. This means that if someone passes away and their beneficiary is someone other than their spouse, that beneficiary needs to have the entire account withdrawn and closed within 10 years of receiving the inherited IRA. However, there are exceptions, including a surviving spouse, a minor child (the 10-year rule starts when a child reaches the age of majority), a disabled individual, a chronically ill individual, an individual who is not more than 10 years younger than the IRA owner.

Employees who work part-time, at least 500 hours per year, are now eligible to contribute to their employer-sponsored retirement plan.

Secure 2.0

What’s different with this new law?

For one, the vote passed 414-5. Not as lopsided as the previous one, but still an incredibly convincing tally. “Secure 2.0 is fundamentally designed to make it easier for people to save” – Susan Neely, American Council of Life Insurers President and CEO.

The catch-up contribution provision got a facelift. 401k account owners that are 50 and over are eligible to contribute up to $10,000 more than the maximum for those under 50.

The beginning age for required minimum distributions (RMD) also went up, from 72 to 75. The Yahoo Finance article noted that some reps took it a step further. “ My goal is to get rid of it completely.” – Representative Kevin Brady (R-TX).

The bill would also push employers to automatically enroll new employees into the company-sponsored retirement plan.

Small businesses that stare down the, sometimes, daunting expense of establishing and maintaining a company-sponsored retirement plan can receive assistance. They can receive credits for matching contributions.

One very progressive part of the bill that is sure to garner a lot of attention is the ability of people paying down student loans to save for retirement. The bill would allow employers to “match” a students’ loan payment as a retirement contribution. For example, if the student made a $100 student loan payment, the employer would contribute $100 to their retirement account on their behalf.

The bill introduces a SAVERS credit, which would give lower-income individuals a tax break if they save for retirement.

This is another transformative retirement bill. I’m very pleased society is taking steps to encourage individuals to plan and save for the future.

Related reading:

Ensuring Financial Security Throughout Retirement

5 Solutions for Managing Your Money After Retirement

401k Withdrawal Taxes and Penalties

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com