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The Longer In Early Retirement, The Easier It Gets

Financially Free, Living in the Moment, Non-financial Aspects of retirement,

When I was first contemplating retiring young, the idea of funding my lifestyle over decades was of high concern. A lot has happened and changed over the nearly 13 years on this early retirement ride. Even in this high inflationary period, I do believe that the longer in early retirement, the easier it gets. Not that it was all that hard in the beginning. It’s just more comfortable and enjoyable with less worry, more coasting along. 

The Longer In Early Retirement, The Easier It Gets

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It Has Only Got Easier The Longer I’ve Lived Early Retirement Freedom

Of course, a major retiree worry is burning through our money before we leave the planet. As the years have stacked up, there have been a lot of ups and downs in our portfolio. We never started with hitting the magical million dollar number to begin with. What we did was maintain a reasonably frugal lifestyle while still being able to travel as much as we wanted to, help our kids and grandkids out when necessary, and have a blast doing it. As time passes, the easier it gets.  

The Easier It Gets Financially

Budgeting

We used to feel like we had to watch it like a hawk. Now it’s pretty much on autopilot. Our frugalish lifestyle and spending habits have stuck. There is little yearly budget deviation except for the occasional emergency or small planned indulgence.
When the first of the year healthcare or other insurance/tax cycles cause big increases, we make necessary adjustments without worrying about things as much as we used to do early on. 

Since retiring over a decade ago, we’ve seen how over a 12 month period it all smooths out in the end. Even when there were some high monthly hits that were encountered. 

Adapting To Rising Healthcare Costs

We were lucky. The first few years of early retirement only brought small yearly increases. It then went obscene and it was a huge pain in the assets. Over time we’ve been able to take it in stride. We still get ticked off, but with every year that passes we get closer to Medicare eligibility. We just automatically assume we will be adjusting the budget in spending and income to cover it with a lot less worry until age 65. 

Riding Out Market Swings

There are some things we just can’t control, even with a well diversified portfolio. Market volatility swings can cause a lot of early retiree sweating. It was something that caught my attention in the early years causing some worst case worrying. 

The longer I’ve been doing this early retirement thing and living off of my portfolio, the easier it gets to just roll with it and trust the plan. I do check balances and run numbers when it has taken negative hits like it has of late. 

A quick run of the FIREcalc retirement calculator using the new lower portfolio total along with any new income requirements and Social Security data is all it takes to remove any concerns. Well, including Social Security and you know…… that growing older reduced years circling the sun thing. It’s a simple equation:

Social Security income coming in sooner

+ Less years left to fund

= Enough even with a reduced portfolio number to cover current market loss in the overall retirement funding calculation. 

If the calculated success percentage came up poorly, I would calmly do what we now have a history of doing, make necessary adjustments. 

Aging Closer to Medicare and Social Security

As mentioned above, I do use our Social Security figures as part of our overall retirement planning. That and the big reduction in health insurance costs that Medicare will provide us. We will finally reap the promised benefit from paying into our nation’s retirement system for our entire working lives. The longer in early retirement, the closer we inch to retirement portfolio funding assistance. Ya, ya, I know there is talk among certain politicians that some people of politics are looking to kill it. If they do then I suppose this country will be dealing with an even bigger and more dangerous problem than any retirement budget adjustments or income shortcomings I will have. 

The Easier It Gets Non Financially 

What Work Identity?

Early in retirement, I did everything I could to prepare for leaving my career title behind. Even so, there were still some mental adjustments that took time to work through. The longer in early retirement, the easier it was to put it all in the past. In fact, I have trouble remembering many names of those I worked with over the 31 years of that career. It all seems like a previous life that matters about as much as if not less than my highschool portion of life.

Having A Better Social Life

The first issue I recognized as a big hole in my early retirement was my social life. It took no time to realize almost all of my social circle revolved around work. I had to make a concentrated effort to grow my social life in the first months and years of retirement. My social life is now broadly community and hobby based. I have only one person that I’m still in regular contact with from my first long-held career, and that is just fine.

Wanting Less Because I’ve Already Scratched My Itches

There was a lot of daydreaming about what early retirement would be like and what I wanted to do before pulling the trigger. Once I retired at the age of 51 I was still full of the same high energy and production based conditioning I had when I was a career engineer. I enjoyed down time to the fullest and entered into paid gigs of interest and passions. I see now that some of that was also driven by another necessary transition- trying to get over myself and invisibility. Scratching these itches were both necessary and extremely rewarding in many ways.

 

A lot has changed over the 12+ years in early retirement. I scratched all my itches, transitioned away from work identity, grew my social circle, learned to fully trust my savvy personal finance skills/plan, and have relaxed over time into a comfortable energy level of retirement living. 

I still pursue new passions and ideas that I have interest in, but I’ve learned that I have nothing to prove to anyone, not even myself. 

Time, experience, and maturity has made me a better early retiree and made early retirement easier to enjoy to the fullest.

Entrepreneurship in Retirement Has Many Benefits

Retirement Business, Working In Retirement, ,

This post was contributed to Leisure Freak by Linda Chase, creator of Able Hire. 

When you retire, you may first think about lazy afternoons on the porch or months-long trips to the beach. But, if your income and savings can’t keep up with your aspirations, you may find yourself one of the millions of retirees ready to go back to work after your “official” end date.

Unfortunately, those of us in the 55+ crowd face obstacles, from outdated work skills to being overqualified for the things we’d like to do in our encore careers. If you’re looking to get around these challenges, starting your own business may be the way to go. Today on the Leisure Freak blog, we share a few tips on how to launch a post-retirement business from the comfort of home. 

Entrepreneurship in Retirement Has Many Benefits

Image Source via Pexels

Start With a Plan

As with any professional endeavor, it helps to start with a plan. This should include the type of business you want to start and a draft of actionable steps that help you make it happen. Another important thing to get out of the way now is forming your LLC. Even if you’re not tech-savvy, you can use an online formation service to create your legal entity for far less than you’d pay an attorney. Keep in mind that while the limited liability and tax perks you’ll receive are at the federal level, you’ll need to confirm LLC formation laws in your home state.

Calculate Your Needs

Retirement often means a fixed income. Sadly, inflation has taken over, and a fixed income is the worst thing you can have as prices rise. It makes it exponentially difficult to plan your daily finances, which is likely what led you here in the first place. But, you do have to look ahead and try to calculate how much money you need each month. Huntington Bank shares tips on how to create a personal budget. Once you know your income gap, you can decide how much you’ll work.

Market Yourself

It doesn’t matter what industry you are in, you have to market your business. There are many ways to do this, including social media and networking. While these might be intimidating, many old-fashion marketing strategies, like flyers and business cards, still work well today. Even if you don’t have graphic design skills, you can use Word or a similar processing program to create simple files, which you can then convert to a PDF for your printer. You can then convert a PDF to Word to make changes as your service offerings grow. There are plenty of online tutorials that show you how to create designs in Word, which is much easier to use when you need to edit since PDFs have limited editing capabilities.

Best Home-Businesses For Retirees

While no one can tell you what you should do, there are a few businesses that make sense for retirees. These include:

  • Blogging. Blogging is a great way to share your knowledge and expertise with the world, and you can choose an affiliate site to generate passive income.
  • Travel agent. If you’ve already spent much of your life traveling (or if you just want to travel) launching a travel agency is an excellent choice. In this capacity, you’ll get to help other people make decisions about family vacations and work destinations. As an added benefit, you may enjoy discounted destinations and you can write off your own travel on your taxes.

Why Work From Home?

There are many reasons that you should consider starting a business from home during your retirement. First, you’ll save money as you won’t have to pay a monthly lease for office space. Further, if you have any type of mobility issue, you won’t have to worry about getting back and forth to a brick-and-mortar location each day. Perhaps most importantly, having a home-based business gives you more freedom and flexibility to enjoy your retirement.

 

Entrepreneurship comes with a host of benefits for retirees, especially for those of us on a fixed income as inflation continues to rise. Today’s tips can help you get started, and you don’t even have to leave your home to add entrepreneurship to your list of accomplishments.

 

Much thanks to Linda Chase for contributing this informative article. It comes at a time when many people are rethinking retirement. Entrepreneurship in retirement is a way to meet many goals. The benefits extend to more than only those needing to earn extra income. As I always preach, retirement is the absence of needing to work, not the absence of work. 

Author Bio: 

Linda Chase created Able Hire to help people with disabilities build rewarding, successful careers. She hopes Able Hire will be a resource for people with disabilities seeking jobs and for hiring managers seeking a better understanding of what people with disabilities have to offer.

8 Tips for Setting Up a Home Office on a Budget

Income Streams, Retire Often, Working In Retirement

This article was contributed to Leisure Freak by Michael Everett, who is a chemistry teacher with a passion for house design.

Whether you’re a worker who switched to working from home or a freelancer working after retirement, you’ll need a comfortable working environment you can call your own. Although this space is essential if you want to remain productive, that doesn’t mean you will need to burn a hole in your wallet designing it. After all, not everyone has enough space for a separate room or enough of a budget to get help from professional interior planners. Luckily, you can do it yourself with the help of some of our tips. Don’t worry; these eight tips for setting up a home office on a budget won’t compromise your wellbeing. They will help you remain frugal, comfortable, and happy.

A woman working at her desk in her home office, writing something in a notebook.

Featured image source.

1- Create a budget beforehand

As with any other home design endeavor, you must create a budget. This will not only help you better understand how much money you can spend, but it will also enable you to control your impulses while making purchases for things your workplace needs. Go through your monthly expenses and put aside the money needed for this project. Be realistic about it, and do not spend more money than you can comfortably handle. This budget is the foundation the rest of the tips will significantly depend upon.

 

2- Designate a spot for your home office

As previously mentioned, you most likely won’t have enough space in your home for a separate home office. This is perfectly alright! Even a tiny, peaceful corner of your living room will do. On the other hand, if any of your other rooms have an odd spot you cannot seem to utilize, why not transform it into a cozy working area? Walk around your home and think about where your future office space would make the most sense. Opt for areas that have less traffic and are less noisy to stay productive even when working from home.

3- Remove any unnecessary items

A great tip for setting up a home office on a budget includes decluttering. Decluttering is an accessible way for you to maximize your home office space. Furthermore, it may even earn you some money! Clear out the space in your designated home office by either selling, donating, gifting, recycling, or throwing away any unnecessary items. However, you may rent a storage unit if you’re not ready to part with some belongings. It is also one of the top reasons why Americans rent storage units in the first place. You can use it when working from home and still keep an eye on your belongings. Alternatively, it will also give you the chance to deal with them at a later time.

4- Prepare a floorplan and a list of the necessary items

Preparation is vital if you want to reduce the number of funds you spend on redoing things you’ve done wrong. Measure the area you will turn into a home office and create a precise floor plan. Additionally, make a list of items you want in your new home office. This list should be categorized so that the absolute essentials are separate from things you may want but not need.

Some of the most notable essentials are:

  • A surface to work on
  • A seat
  • Devices such as computers, laptops, and tablets
  • Office and specialized equipment

5- Repurpose, bargain, DIY, or trade for needed items

We do not advise buying new office items straight away, even though you might be tempted to. Be creative and choose either DIY projects or repurpose old furniture or objects. If you have an old table that needs a bit of love, why not give it what it needs and save yourself some money to spend on other things? Also, do not neglect the benefits of used items! They are always more affordable, and you may find some hidden gems. For example, used art tools can be quite beneficial if you plan to start earning from your hobbies. Lastly, if you need to purchase items, always look for ones that are on sale or that you can bargain for.

6- Do not forget about ergonomics

Remember to take care of your comfort and wellbeing despite your desire to cut down on anything unneeded. After all, you will use your home office for many hours during the day! If your monitor is not at eye level, reuse old boxes or books to prop it up. On the other hand, if your chair is uncomfortable, invest in one that is more ergonomic. Whatever is troubling you shouldn’t be disregarded. Keep a close eye on how your home office makes you feel and make any necessary adjustments.

7- Decorate using items you already have

The decor you use in your home office is one of those things that can not only satisfy your eye but may also inspire you. And who doesn’t need a bit more extra motivation to work? You can choose different decor based on your style and budget. We suggest using whatever items you already have by giving them a new purpose or space. Place a clock above your desk to monitor the time or plenty of lovely photos to calm your mind. Plants will add a sense of life, quotes may motivate you, and candles can make your home office smell divine. If you ever decide to purchase something, keep in mind the mentality of “I deserve it” can be harmful if brought to an extreme. Especially if it makes you purchase more items than you may need.

8- Let the light in

While designing a home office, you may forget about an essential factor besides peace and quiet, and that is light. Good lighting can make or break your working mood and create a different ambiance. Make sure to have at least one source of natural light in whichever space you decide to set up your home office. Use mirrors and lighter hues to make the light bounce about the room. However, you most likely will require additional light sources. A good light, whether it is a desk, wall, or floor lamp, will help you stay focused and avoid eye strain. We suggest using lamps you may have already if you’re working on setting up a home office on a budget. When possible, pick those whose intensity can be altered and that do not add glare to your devices. 

 

Thank you Michael Everett for your insights on creating a home office on a budget in a time when work from home opportunities are very attainable.

Author Bio: 

Michael Everett is a chemistry teacher by profession but a passionate house designer at heart. He has been sharing his knowledge as a self-employed content creator for numerous websites, including Zippy Shell Northern Virginia. His favorite hobby is spending time with his cocker-spaniel dog named Ruffles.

Investing in NFTs: Can You Buy NFTs in your Self-Directed IRA?

Investment Strategy, Risk Tolerance,

This post was contributed to Leisure Freak by content creator & digital strategist Akanksha Malik.

Although traditional investment options still exist in the stock market, there are many more new types of investments being utilized. One of these new investment options is Non-Fungible Tokens (or NFTs) which are quickly emerging as an investment choice for many investors.

NFTs are a relatively new way to invest in cryptocurrencies where each token is uniquely identifiable by its owning party. While this can lead to some confusion, there is still much more information on how self-directed IRAs can go forward with investing in NFTs, such as how they can transfer tokens and how they go about buying them, selling them and even storing them. In this article, we are going to discuss the same.  

Investing in NFTs: Can You Buy NFTs in your Self-Directed IRA?

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What is an NFT?

An NFT is an asset that is supported by a blockchain and can be traded like a traditional stock. The name stands for Non-Fungible Token and describes the idea that each token is unique and has value, unlike traditional stocks.

NFTs are similar to cryptocurrencies, but they’re not decentralized, meaning no one is in charge of keeping them safe, secure or reliable. Instead, NFTs are secured by the blockchain ledger that keeps track of all transactions made with them.

Example: A digital artwork can be stored in a smart contract on the Ethereum blockchain and will be transferred to someone if they pay with Ether (the currency used for Ethereum transactions).

NFTs are different from other cryptocurrencies because they’re non-fungible — meaning each asset has its own unique characteristics and cannot be exchanged with another. An NFT can’t be sold or traded like a stock because it’s an individualized piece of art or physical object that doesn’t have monetary value outside of its rarity and uniqueness.

NFTs are becoming more popular among investors because they offer several advantages over traditional investments like stocks and bonds. One of the main advantages is security — NFTs are almost impossible to counterfeit because they rely on a decentralized blockchain ledger system for storing information about each piece of art.

If someone tries to alter or fake one of these pieces, all of the information about that piece will be changed in response — making it impossible for anyone else to duplicate this work without access to every single piece of data about it.

What is a Self-Directed IRA (SDIRA)? 

A self-directed individual retirement account (IRA) is a type of retirement account offered by most financial institutions. This type of investment account is designed to help you invest your money in the manner that best fits your personal goals and financial situation.

You can set up an IRA anytime, and it doesn’t require any details on your income to open it. You can choose how much you want to contribute, what types of investments you want to make, and when you want those investments to be made.

A self-directed IRA allows investors to make all investment decisions on their own. They are also able to direct their own investments through buying, selling and redeeming shares within the account. A self-directed IRA can even allow for a tax deduction for certain types of assets like stocks and bonds.

Can You Buy NFTs with Your SDIRA? 

The short answer is maybe. This is because there are essentially no rules in place for self-directed IRAs to invest in digital assets. You can use a Crypto IRA to invest in cryptocurrency; however, there are some important things to keep in mind before investing in NFTs.

First, NFTs are a gray area right now as the IRS hasn’t yet issued specific guidance on NFTs, nobody knows for sure if they will count as collectibles. As such, you should consult with your legal advisor before purchasing any NFTs or other digital assets, as they may not be eligible to be held within your IRA account.

Second, it’s important to note that since NFTs are considered property rather than securities or collectibles — meaning they don’t meet the criteria required for traditional IRAs. It’s difficult to determine whether or not you can hold them within an IRA account without violating the IRS rules against prohibited transactions. 

Takeaway

It isn’t recommended to hold NFTs in your self-directed individual retirement account because the risk of having NFTs in your SDIRA is the same as holding any unallowed collectable. When you put your NFTs in an IRA, the IRS considers the value of that item to be distributed to you in the tax year that you made the investment. Therefore, instead of holding an NFT in your SDIRA, you should consider buying it with your separate funds. 

Much Thanks to Akanksha Malik for sharing her knowledge of investing in NFTs with Leisure Freak readers. A subject that I’m sure many have had little exposure to, including myself. Knowledge is always important and keeping up with the latest investment developments in this world is a big part of that.

Investing in NFTsAuthor Bio:

Akanksha Malik is a content creator & digital strategist at Mesha – India’s largest investing club & online community where the world’s best investors gather to share ideas, discover fellow investors, invest in NFTs & crypto, and compete in challenges for real money. She develops content to share her knowledge and insights helping her readers stay updated with the latest in fintech & investments, as well as cryptocurrency trends and upcoming NFT opportunities. Apart from being passionate about her work, Akanksha loves exploring architectural sites and different local dishes during her travels.

Disclaimer- Leisure Freak is in no way advising readers to invest in cryptocurrencies. Invest at your own risk. Crypto is a high risk investment scheme. This article is for information purposes only. 

7 Tips to Help You Achieve Early Retirement

Retire Early, Retirement Plan,

 

This article was contributed to Leisure Freak by freelance writer Tracie Johnson. is it still possible in today’s world to achieve early retirement? Knowledge and planning are key. These tips can get the ball rolling.

Planning for retirement is tricky, especially when you want to stop working years before you need to. But with a little bit of strategy and discipline, it is possible to retire years before your expected retirement age. Check below some guidelines to successfully retire early.

7 Tips to Help You Achieve Early RetirementImage Source: Pexels

1. Pick a Retirement Plan

The first step to planning for early retirement is to decide what you want in your life. It may be hard to make decisions when all your resources are concentrated on paying off debts and building up savings.

To hop into retirement early, pick out a suitable retirement plan. This plan will depend on your situation, and it will help you start growing your savings as soon as possible to facilitate an early exit.

 

2. Automate Your Savings

Automating your savings can help you achieve early retirement goals faster. If you can have automatic monthly transfers to your savings, it will become like another bill you pay without thinking. Additionally, as you prepare for early retirement, you can sell some of the assets you do not need anymore or will not use after retirement.

 

You can check the value of these assets to see how much they can add to your savings so that you can retire soon. For instance, if you have a car and a truck, you may only need the truck after you have retired from your projects in the countryside. Hence you can use an automotive valuation tool to find out the worth of your car to sell it immediately after retirement.

 

3. Hire a Financial Advisor

Early retirement means less saving time but more spending time in retirement. Therefore, you need to hire a financial advisor who will help you devise the best plan to save and invest your money. An established financial advisor enables you to develop an effective investment strategy to aid you in achieving your retirement goals and manage your income and investment once you retire.

 

Create numerous passive income streams. The financial advisor should be someone you are comfortable with since it will be a decades contract. An advisor must know where the money you sweated for is coming from and going.

 

4. Create Multiple Passive income Streams

The retirement period is the perfect time to pursue your passion, especially when you retire early. Working on a passion is flexible since you can work on it while on vacation, at night, or in your spare time. Create numerous passive income streams.

 

You can invest in dividends, the stock exchange market, and real estate that will turn into liquid assets after some period. Such passive income sources will cover your monthly burn and grow your net worth. This will ensure you attain an early retirement.

 

5. Crunch the Current Budget

When you start planning for early retirement, spend more time researching investment strategies than planning your actual budget. Apply a minimalistic approach by focusing on what you value and need and cease consuming and maintaining stuff you do not utilize or need.

Create a sound budget to understand where your money is spent and which expenses you can cut back. The more you spend impulsively, the more you save, and it determines how soon you can quit your job.

 

6. Have a Reliable Back-up Plan

It is essential to have a reliable backup plan since any plan is good until a crisis arrives. Consider a possibility of a problem, for example, a natural calamity or an economy tank. Run through potential worst-case scenarios and include a plan B. You can develop a backup plan with the help of your financial advisor since they understand the world of finance and the economy best.

 

7. Pay Off and Avoid Debts

If you have debts, a mortgage, or anything else, you need to pay these off before retiring. It is terrible to be an early retiree with debt because it will take much of your time and energy to clear the debt and pay off your creditors.

 

The long-term loan you take can jeopardize assets you could utilize for retirement devotions. Moreover, you may use a more significant part of your savings to pay debts hindering your planned investments.

 

Conclusion

Early retirement is all about planning and being disciplined. You can achieve your early retirement as long as you carefully plan and think ahead of the game. Integrate these tips into your plan to realize your dreams of exiting early.

Thank you Tracie Johnson for sharing these tips to achieve early retirement in a time when many people are exploring ways of taking a different path in life.

Best Financial Advice for Recent College GradsAuthor bio:

Tracie Johnson is a New Jersey native and an alum of Penn State University. Tracie is passionate about writing, reading, and living a healthy lifestyle. She feels happiest when around a campfire surrounded by friends, family, and her Dachshund named Rufus. 

 

Financing Tips for Home Maintenance Emergencies

Budgeting

This informative post was contributed to Leisure Freak by freelance writer Sierra Powell. 

Regular maintenance comes with a home. Owners spend 1% of their annual budget on repairs, which hurts if you don’t prepare for unforeseen circumstances. To help avoid this, here are some financial tips to prepare for home maintenance emergencies.

Financing Tips for Home Maintenance Emergencies

Photo from Pexels 

Perform a Home Repair Audit

A home repair audit isn’t much different from what a business does. It’s an examination of your property’s infrastructure. The results of the audit reveal your financial needs.

Focus your repair audit on frequently maintained items. These include the kitchen appliances, plumbing, roof, and HVAC (heat and air conditioner) system. Secondary items are electric wiring, doors, windows, and walls.

Examine these areas for noticeable issues. Consider asking professional agencies if you’re uncomfortable in certain areas. For instance, if you don’t want to go up to the roof, hire a contractor to check its quality.

Create an Emergency Fund

Vacations and spontaneous purchases are not the purposes of your emergency fund. Instead, the fund helps pay for unforeseen issues. Further, it also helps establish peace of mind around repair emergencies.

One thousand dollars is the average amount to have in your emergency fund. However, the value varies depending on your home’s size and the state of current repairs. Although it may not pay the total amount, the emergency fund should have enough money to make a sizable dent.

For instance, a severe storm could cause damage to your roof’s shingles. The emergency fund would help pay for a storm damage roofing company to come out and assess the problems. The emergency fund would probably take care of shingle replacement. In a worst-case scenario, it would take a chunk of the bill if the entire roof needed to be redone.

Create a To-Do List

The number of regular maintenance projects can overwhelm a homeowner. They may forget to do something over the years. As a result, an unexpected issue could appear that takes a chunk out of the emergency fund.

Minimize this risk with a maintenance to-do list. Enter items by their frequency. For example, replace the HVAC air filter every month, have the plumbing checked twice a year and examine the driveway for cracks two years after a resurfacing project. Put the information into an online document and set calendar reminders.

Handle DIY Repairs

You won’t need to hire a professional for every maintenance project. Take care of some of these issues through do-it-yourself (DIY) methods. Usually, they cost little to fix and take minutes to repair.

Air filter replacement is a case in point. These items cost a few dollars and take less than five minutes to swap in the HVAC unit. Regular repairs minimize the risk of frozen air conditioner components and other mechanical issues.

Take Care of Things Before They Get Worse

It’s never too early to address issues before they get worse. In the end, something that seems minor can become an emergency in a few hours or days. It could be severe enough to cause extensive damage.

Take care of things before they get worse. Don’t place a bucket under the sink to catch leaks from faucet pipes. Call a plumber to check the issue. The same goes for missing roof tiles, water stains on the walls and ceilings, or clogged gutters.

Hire Professionals for the Important Jobs

There’s a difference between fixing a leaky faucet and a pipe. The former is an easy repair if you follow the directions. Conversely, you cause damage if you don’t know how to fix a leaky pipe. It may result in necessary repairs to walls, ceilings, or the entire plumbing system.

In other words, hire professionals for home repairs that require more than an air filter or new washer. Hire subject matter experts to repair items related to electrical systems, plumbing, and your roof. Although they cost more, proper fixes are assured.

Purchase Maintenance Plans

Maintenance plans are one way to reduce the cost of emergency repairs. The return on investment translates to regular check-ups of your home’s mechanical and structural components. Additionally, maintenance agreements cover part costs. At most, you only pay for labor.

Plans and warranties are part of replacement packages for HVAC units and roofs. However, these may have a limited scope. Contact the vendor before warranties expire to learn how to extend coverage and reduce your monetary liability.

Overall, there’s a way to prepare for home maintenance emergencies. It could take some money away from funner activities. Nevertheless, the peace of mind received is worth the investment when you can’t make the repairs.

Thank you Sierra for contributing this article to Leisure Freak. Your tips to be prepared for the inevitable home maintenance emergencies is something all homeowners should consider. 
freelance writer Sierra PowellAuthor Bio:  

Sierra Powell graduated from the University of Oklahoma with a major in Mass Communications and a minor in Writing. When she’s not writing, she loves to cook, sew, and go hiking with her dogs.

 

What Happens After You File for Bankruptcy?

Managing Debt

This article was contributed to Leisure Freak by freelance writer Stephanie Caroline Snyder. The decision to file for bankruptcy should be done with full knowledge of what to expect.

Navigating a chapter 7 or 13 bankruptcy can be intense and fear-filled. Uncertainty about what’s to come can affect every aspect of life for you and your family. Bankruptcy has its benefits, but please take the costs into careful consideration as you proceed with the filing. To ease some concerns you may have, read over the key points of what to expect during this time.

Typically after filing your claim, you will:

  • Begin Automatic Stay status
  • Be assigned a court-appointed trustee
  • Complete pre-discharge requirements
  • Discharge your case and begin recovery

Photo by Pixabay

Automatic Stay: Which Debt Collections will be Paused or Stopped?

Immediately after receiving the acceptance of your claim, most of your creditor’s collection efforts, your credit report will transition into Automatic Stay status in the government system. This prohibits creditors from contacting or collecting any capital from debtors. Instead, all transactions are completed by a neutral administrator. Once this is in effect, there are some financial responsibilities that will remain active. Debtors are expected to continue payments for:

  • Support Cases
  • Pension Loans
  • Criminal Requirement
  • Specific Tax Proceedings

However, being listed under automatic stay will cease the collection of most other payments each month until your case is discharged or completed. This pause in collections provides protection from situations that would have been detrimental without taking action. Multiple garnishes from your paycheck, being evicted from your home, and foreclosure on your residential or commercial property are all examples of inclusions under automatic stay protection. Disconnection or interrupted utility services such as electricity, water, and waste management are provided by the city or state.

What Your Appointed Trustee is Responsible For:

The roles of court-appointed trustees alter from cases under each chapter of

bankruptcy filing options. The two most common are chapters seven and thirteen. Whoever the court appoints to delegate your case with your bankruptcy lawyer in NJ or your local area, they should keep your bests interests in mind.

Chapter seven trustees will analyze and collect any property agreed upon and then facilitate sales of those assets, challenge creditors’ claims when needed, and transfer funds from debtors to creditors. Your case’s discharge objectives will also be determined by your assigned trustee.

Alternatively, a Chapter thirteen bankruptcy filing trustee has different obligations. He or she will review your repayment plan and likely make objections to some content within it. Work with them patiently to find a middle ground that will satisfy the court while being manageable with your current income. This trustee is also the person to whom you will submit payments, and who will transfer the funds to creditors.

Being Prepared for the Final Court Meeting:

Before the last meeting with your appointed trustee and the creditors in court, you will be required to attend a credit counseling session and a debtor education course online. This course will provide you with information to increase your financial management skills to avoid having to file for bankruptcy in the future. You will need to visit the government website to find agencies that offer approved services for both the counseling and course. Each event will take roughly an hour to complete. You will receive a certificate of completion from each program to present to the court.

What Your 341 Meeting of Creditors will Entail:

You are required to attend the 341 meetings. Your bankruptcy lawyer will also be present to represent your case. The court-appointed trustee will facilitate the meeting for your case and probably about ten others who are scheduled for that date and hour in the same courtroom. Creditors may have representatives present for the meeting, but they are not required.

The bankruptcy trustee will place you under oath and you will need to verify your identity with both your state-issued ID card and your social security card. The trustee will inquire about the accuracy of documents that have been filed with the court, determine if you have assets that are not protected under exemption qualifications, and discuss any other issues that may affect the administration of the estate.

Questions you will be required to answer:

  • Did you review your bankruptcy schedule thoroughly before signing and do you understand the terms and conditions to which you are signing?
  • Are all of your schedules truthful and accurate?
  • Have there been any changes made to these schedules?
  • Are all of your assets on file with the court?
  • Have you included all of your debts in filing this case?

Additional questions you may be asked include:

  • How were your home and automobile valued?
  • Do you have claims files against other agencies or individuals?
  • Are you expecting to receive an inheritance from a loved one?
  • Have you transferred any of your assets prior to filing?

You will be under oath while the trustee examines your case. Be honest and forthright, and listen to your lawyer’s suggestions when applicable. Additionally, although it is not mandatory for your creditors to attend the meeting, they might show up with a representative to examine you under oath along with the trustee.

Recovering After Bankruptcy:

Filing bankruptcy is a lengthy process even after your case has been discharged. It takes ten years and longer to financially recover from filing. You will likely face many challenges if you need to apply for credit. You face losing assets and reputation. However, bankruptcy allows you a financial fresh start and a chance to correct poor decisions made in the past if utilized wisely.

Maintaining stable residence and employment, keeping a consistent bank account balance, and paying your bills on time every month by making and following an actionable financial plan to stay within your means are the best things you can do to recover successfully. When you decide to begin rebuilding credit, be sure to exercise enhanced caution and make wise decisions to avoid taking on more than your family can endure.

 

Much thanks to Stephanie Caroline Snyder for contributing to Leisure Freak this informative post regarding a touchy subject and process that many people know little about. 

Author’s Bio:

Stephanie Caroline Snyder graduated from The University of Florida in 2018; she majored in Communications with a minor in mass media. Currently, she is an Author and a Freelance Internet Writer, and a Blogger. 

Loan Payoff vs Retirement Savings: What Should Be Your Priority?

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This post was contributed to Leisure Freak by personal finance writer Tanya Singh who  knows this topic of loan payoff vs retirement savings. 

Are you constantly in a battle to decide which one to choose between the two – paying off loans or saving for retirement?

Using money to pay off loans is a good choice. But so is taking a chunk of money from your monthly income and saving it! The former allows you to build returns and generate investments. While the latter saves you money to pay off personal loans, home loans, and budgeting loans.

So which option to choose? Read on to weigh out the advantages and disadvantages of both.

Loan Payoff vs Retirement Savings: What Should Be Your Priority?

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Consider This Before Prioritising Loan Pay Off or Retirement Savings

Holding any debts is always a bad habit, and if you ask the bunch whether debt paying should be prioritised or retirement savings, the majority will say debt. Whether card repayments, loans, or mortgages, clearing the debt is always a good idea.

Those believing in “pay yourself first” have their own sets of points that work for them. But, depending on your situation, ask yourself the following questions and judge what works the best for you.

  • Do You Have Emergency Funds?

Not having emergency savings is an expensive mistake for people of every age. What if your landlord suddenly raises the rent? The economy is never stable, what if you lose your job?

There are several unpredictable situations you can land yourself into. Having money on hand can be a huge relief. You should always have at least three to six months’ worth of salary in your savings account.

Therefore, if you have enough savings, only then consider to repay your loans.

  • Do You Have Any Other Debts?

Other than your ongoing loan, consider rethinking whether you have debts like credit cards. Sometimes the interest would be higher on these than the returns you get from investing. By repaying such debts, your finances get a boost.

  • Are You Paying Into a Pension?

Pension savings is one of the most important factors to consider when you start working. When you contribute to pension schemes, you benefit from tax relief. There are several workplace schemes available as well where an employer pays in the pension. This is a cost-effective way to retirement savings.

Should You Pay Loan First?

Loan repayment is one of the most painful tasks for any individual every month. Therefore, some people prefer paying it off early. However, is that a smart choice?

 For some, the early payoff is beneficial. But it is a choice that needs to be heavily analysed before making a firm decision. Here are some advantages and disadvantages to consider:

Advantages:

  • You can save a lot more on your monthly income, which leaves you with more cash.
  • Your overall interest bill is reduced.

Disadvantages:

  • The biggest downside of paying off your loan in one go is that you would not have the funds to aid any emergency. If you are thinking of repaying your loan first, consider your current savings in mind.
  • You will be faced with several early repayment charges (ERCs), depending on the lender.

Should You Focus on Savings and Investing?

If your future plans are grand, it is only sensible to have financial security by either saving or investing with a sensible strategy. But every coin has two sides.

Savings is great, and so is investing (depending on your needs). However, there are advantages and disadvantages to it. Let us take a look:

Advantages:

  • Investing in shares causes your money to grow faster than simply opening a savings account.
  • You do not lose your access to cash in case of an emergency.
  • The flexibility of selling your investment is available, whether mutual funds or purchased shares.
  • Retirement accounts provide tax relief on your contribution. In the end, it boosts your retirement savings.

Disadvantages:

  • Investment returns vary on the options you select. Even if the long-term return is good, there are short-term losses you will need to bear.
  • You cannot access your retirement funds in your retirement account until you reach your retirement age.

Pay Off Loans or Save for Retirement?

There is nothing wrong with paying a loan before time and maintaining a good credit score. Equally, saving for your retirement is also a good plan! So ultimately, the choice is yours. Take a decision depending on your financial circumstances, priorities, and goals.

Thank you Tanya Singh for sharing this timely topic, prioritising Loan Payoff vs Retirement Savings. With all the challenges we face economically in our day to day, we still must create and implement our best plan for our future selves.
Loan Payoff vs Retirement Savings priority Author Bio: 

Tanya Singh works as a Content Marketer at LoanTube – a loan comparison marketplace where borrowers can connect with multiple lenders via a convenient and transparent application. She writes about topics related to personal finance and loans helping her readers in making smart decisions when they need to borrow. Yoga brings her inner peace and strength, and travelling brings her joy (besides her work of course).

The Most Affordable Places to Retire in the US

Relocating in Retirement,

This post was contributed to Leisure Freak by freelance writer Deborah Waters. 

Hundreds of thousands of Americans retire and move every year, saying goodbye to the working world and welcoming a new environment. They choose to retire in regions that offer great weather, a variety of activities, decent health care, and reasonable costs so that their retirement savings can last a more extended period. Even in the United States, you may be able to check all of those boxes. To help you decide whether or not to remain in the United States after retirement, we’ve compiled a list of some of the most affordable places to retire. For seniors looking for a comfortable, low-cost home close to all the conveniences of city life, here are some of the most affordable places to retire in the US.

A woman holding a savings jar for her retirement.
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Prescott, Arizona, might be your place to retire

Grand Canyon State’s retiree-friendly climate and natural beauty are likely to have piqued your interest. In addition, the tax situation is similarly appealing. Arizona is one of the most affordable places to retire in the US because of its low income taxes and lack of state taxes on social security. The cheap cost of living in Prescott, a town roughly 100 miles north of Phoenix, makes saving money with a big family easier. Bear in mind that the opposite of cheap isn’t dull. While Prescott has a thriving art and entertainment scene, it also has a wide range of outdoor activities like golfing and hiking. So you’ll never be bored!

Boise, Idaho, is a green and affordable retirement option

If you’re a lover of lush greenery, Boise is the place for you! Boise, Idaho, a mid-sized city on the Oregon Trail known as “the city of trees,” has a green and vibrant retirement community. And the best thing is, there’s plenty of help at hand if you want to move here from a distant location. Hiring long-distance movers Boise residents trust will make your relocation easy and stress-free. With reliable assistance nearby, you won’t have to worry about a thing. 

There are many options for shopping and dining in downtown Boise’s pedestrian-friendly area. Mountain climbing, canyoning, and whitewater rafting are all available in Southwest Idaho. But that’s not all! For all the curious types out there, Boise State University is a great place to keep your mind active as you become older. You can also get a membership in the Osher Lifelong Learning Institute. This allows you to take classes at the school, and it’s just $70 a year! As far as entertainment goes, Boise doesn’t disappoint. Musicians from around the world play at the Velma V. Morrison Center, which also offers dance events and Broadway productions. Boise is one of the comfiest and most affordable places to retire with low living costs!

Fargo, North Dakota, offers endless fun

For decades, North Dakota has been one of the finest places to retire because of its low prices and generous tax structure. If you’re planning to retire in the Peace Garden State, you’ll find it to be a smart financial move. For retirees, housing expenses in Fargo are 14.3% lower than the national average. This makes it an excellent option for those on a budget. And what’s better, early retirement doesn’t mean endless boredom when living in Fargo! North Dakota State University, which is located here, is one of several universities in the area that offer a wide range of amenities for people of all ages. Sports and cultural activities like concerts and plays are abundant. Along with being one of the most affordable places to retire in the US, Fargo will capture your heart with its lively and homey atmosphere.

Albuquerque, New Mexico, is a lively place to retire

In Albuquerque, you can look forward to a peaceful and sunny retirement. The city receives an average of 310 sunshine days per year, spanning all four seasons. This provides you with many options to explore the numerous hiking and bike trails in and around the city. You can also go hot air ballooning and play golf on any of the multiple courses in the surrounding area. As night falls, local casinos—which include music venues, restaurants, and other amenities in addition to table games, slots, and bingo—help revitalize the local nightlife. All of this is accompanied by lower-than-average costs. But if you still want to make some money before relocating, there are easy ways to do so! One of the simplest ways is selling your old furniture to make a quick buck. You will be earning money for your move and saving money because you’ll be moving fewer furniture pieces.

Lexington, Kentucky, is calling at the students at heart

As you might guess, the Bluegrass State has a lot to offer for horse enthusiasts and bourbon connoisseurs alike. However, retirees can explore a variety of other hobbies in Lexington. A 734-acre nature preserve with more than 10 miles of hiking trails is located here. Lexington contains more than 100 parks and six public golf courses! Inside the city, you can enjoy the several available galleries and theaters, including the Lexington Opera House. This opera house hosts ballets and other performances, including Broadway productions, comedy acts, and other events. 

Additionally, the University of Kentucky offers academic programs to meet your educational needs. The Osher Lifelong Learning Institute provides a variety of courses, forums, interest groups, trips, and events for adults 50 and older. Annual membership is $25 and includes access to all of the Institute’s programs. The Donovan Fellowship provides Kentucky citizens aged 65 and older with the opportunity to attend university classes for free. As a result of these and other factors, Lexington is considered one of our best college cities for retirement.

Final words

We hope that this guide has introduced you to some of the most affordable places to retire in the US. Your financial situation will determine the best retirement place for you. But, even if you’re on a low budget, you can still retire in a city with pleasant weather and excellent amenities if you choose wisely. We wish you an eventful retirement and a happy relocation!

 

Thank you Deborah Waters for contributing this informative post to Leisure Freak. Retirement is a time to explore new and exciting paths to take. Moving to a new location that meets a well earned freedom lifestyle is always something the untethered can happily think about.

The Most Affordable Places to Retire in the USAuthor bio:

Deborah Waters is an Idaho native that currently works as a freelance writer and blogger for peasleyboisemovers.com. In her free time, she enjoys the great outdoors, practicing yoga and long walks with her corgi named Chika.

 

Is The Market Drop and Inflation Crushing Early Retirement Dreams? It doesn’t have to

Financial Plan, Retire Early, Retirement Doubt,

I am starting to think that the recent investment market drop along with inflation are crushing early retirement dreams. That thinking is based on the questions I get and the change in certain Leisure Freak site page visits. There are certainly valid retirement fear-inducing concerns. I’m reminded of my own crushed early retirement dream in June 2008 when the great recession was doing its damage. Just as I was ready to take the leap, the world decidedly shifted against me. The world today has certainly shifted and any early retirement plan needs to shift too. Here’s what I did back then and what we’re doing today. 

Is The Market Drop and Inflation Crushing Early Retirement Dreams? It doesn’t have to

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Should The Double Whammy Of A Market Drop and Inflation Be Crushing Early Retirement Dreams? Not Necessarily

For anyone who has been working and saving for their early retirement goals, this new environment has to feel like a kick to the groin. That’s how I felt 14 years ago too. Conditions were different but just as challenging to one’s psyche. 

For those who recently pulled the retirement trigger, sleepless nights and visits to a trusted retirement calculator may become frequent. We’ve all heard the cautions of how detrimental a market correction during the first years of retirement can have on portfolio longevity survival. Inflation just adds to it.

I’m not a financial planner nor pretend to be one. I’m sure my own CFP will have plenty to say in our next meeting based on historical and technical data. What I’m sharing is what worked and works for us in hopes of adding a little calm to an otherwise difficult period in an early retirement dreamer’s timeline.

Pulling The Retirement Trigger When Things Looks Bleak

Just as when I reached my planned early retirement at age 50 in 2008, there was no real indication of a market bottom or economic certainty in sight. Yes, it was crushing early retirement dreams, but not totally. It only changed my plan. 

The new economic conditions were beyond my control. The first step was getting myself over the disappointment and setting my head right. It takes a clear mind to realize and accept that the long-time plan based on before times economics was over. Then setting into action a new plan. 

Count my blessings – 

As today, there was a lot to be economically ticked off about. My portfolio was heavily diminished, my job was a daily soul crushing grind, and I worked hard over many years to ditch the rat race on my terms. The new terms then weren’t great, but I was still very blessed. 

  • A life that prioritizes family.
  • I still had an income source. 
  • Portfolio to replan upon and build on.
  • Zero debt.
  • Known lifestyle budget, roof over my head, and food on the table.
  • Still able to influence my own destiny.
Keep my mouth shut – 

I decided that my best course of action was not to show any of my cards. Keep quiet and leverage income, working conditions, and departure timeline to my advantage. The goal was to retire young for more freedom and purpose on my terms regardless of the economic challenges. I did delay my early retirement by a year and a few months. 

Restructure finances – 

It was obvious that selling beaten down assets to fund retirement in the near term wasn’t going to be smart. Although I still invested in my stock and bond allocation to take advantage of cheap prices, I reduced the percentage and increased cash reserve allocations for short-term retirement funding needs. We also refinanced our modest mortgage to a slightly lower interest rate for the balance owed but re-extended out for 30 years to reduce monthly payment obligations. The thought was we could leverage lower monthly outpay obligations now to assist in increasing cash reserves. Then we would voluntarily increase mortgage payments when economic conditions improved.

Delay retirement, not cancel –

Most importantly to tame my disappointment, I was able to delay and not cancel my early retirement plans. I didn’t know when, but holding my future in my hands allowed me to mentally accept the conditions. As I became more comfortable with my new plan’s progress, I used my growing confidence to leverage concessions and pay increases from my employer during a time when they were used to brutally acting like they held all the cards.

Position For Retirement On A Fixed Income That’s Portfolio Fed

Now that we are again in a new economically challenging environment that appears to also be crushing early retirement dreams for some people, the actions taken when I retired early over a decade ago have smoothed some of the financial pain of today. However, it still needs work to fine-tune.

Get where I need to be – 

We use a portfolio bucket strategy to fund our early retirement. Because the memory of the recession burned deeply in my mind, I’ve always maintained a higher cash and near-cash bucket than most people to fund short-term retirement income needs. However, I did allow myself to reduce it in the past couple of years as we grew older and are closing in on Social Security and Medicare age. At this time we have redirected all dividends and interest to cash instead of a portion being used to reinvest. The goal is to avoid asset depletion until market conditions become more favorable or certain. That and fully bridge the gap to when we start collecting Social Security and when we can ditch my costly health insurance plan for Medicare.

Inflation – 

This has been an interesting mind warp. We were young parents during the go-go inflation of the early 80s. A lot of what we learned trying to save money and survive on a low income frugal budget then has come back easily today. Coupons, sales, discounts, purposeful essential spending, upgrading to a smart thermostat, decreased water heater temp, shorter showers, DIY repairs, frugal cell service, shopping used items at places like Goodwill, driving less-bicycle and walking more, etc. It all adds up and makes a difference. I actually enjoy saving money. 

Sell unneeded stuff –

I always find it amazing that some of what we have and don’t use is needed and valued by someone else. I have been using Craigslist to sell small things and although it isn’t a big cash influx, it does fill a gas tank now and then. 

Increase lifestyle funding – 

Our monthly IRA distributions have followed a modified version of the 4% rule. That rule allows for inflation adjustments, but in this 7% to 8% inflationary environment, does the market diminished portfolio agree? We did slightly bump up distribution amounts but less than the going inflation rate. The difference is made up in spending reductions and emergency fund cash savings when necessary. 

Earn income –

I’ve always believed that retirement is the absence of needing to work, not the absence of working. As of now, there is no job I am interested in learning or doing, unlike there was in my earlier years of retirement. I was a little too successful in working through my bucket list back then. What I do today is keep an open mind and ear. One never knows when a perfect opportunity will present itself. It takes being open to the idea so that I can see it when it comes.  

Realize we’re not alone, pay it forward and offer unwanted things for free – 

Most people are experiencing the pain of inflation and budget strain. In my search for things to sell-off I’ve also found things I just need or want gone and offer it as free. I see it as a trade. If you want or need it, come and get it at no cost. I in turn won’t have to pay for it to be hauled away or dumped. I also price my things to sell at a low cost. I’d rather sell something quickly to someone who can use it than to drag it out over a longer period of time or get into a trolling haggle. Everyone is looking for a deal to get by.  

Figuring our way through these economic headwinds isn’t easy, but nothing worthwhile ever is.

I don’t know when inflation will relax or when the market finds its bottom and stages a reality based comeback. I do know that it will happen at some point. Retirement means being in charge of our own finances and proactively doing what is necessary. 

My task is to stay calm and position myself the best I can to continue funding my early retirement freedom into and beyond our full blown old-fart retirement. This is all just another hiccup in the financial independence journey. The key for us is to maintain a lifestyle that is still enjoyable during this choppy economical episode of time.

Inflation and a dropping investment market is a challenging time. But completely crushing early retirement dreams doesn’t have to be accepted without a fight. We do have to understand our own risk tolerance and make decisions based on what we believe is the right move for us. The last thing someone should do is enter into retirement feeling they may have made a big mistake. 

The goal is to assess the current situation, make necessary adjustments, and move forward confident in our decisions. Then keeping an eye on conditions that necessitate path corrections going forward.