Tag Archives: Retirement Goals

Tips for Leaving Money to Your Family

optimism,

This post was contributed to Leisure Freak by financial wellness writer Jennifer Bell. 

Leaving a financial legacy for your loved ones is an important consideration that many of us contemplate. While it may seem daunting, there are various methods available to ensure that your family is financially secure when you’re no longer around. In this article, we will explore different strategies for leaving money to your family, with a particular focus on the valuable role of life insurance. Whether you’re just starting to plan or looking to reassess your existing arrangements, these tips will provide valuable insights to help you navigate this sensitive subject.

Tips for Leaving Money to Your FamilyImage Source

1. Understand Your Financial Goals:

Before diving into specific methods, take some time to consider your financial goals and the level of support you wish to provide for your family. Are you looking to cover basic expenses, fund education, or leave a substantial inheritance? Understanding your objectives will guide you in choosing the most appropriate strategies.

2. Create a Comprehensive Estate Plan:

One of the key steps in leaving money to your family is establishing a comprehensive estate plan. This plan should include a will, which outlines how your assets will be distributed after your passing. Consulting with an experienced estate lawyer can ensure that your wishes are legally protected and executed as desired.

3. Explore Trusts:

Trusts are valuable tools that can help you manage and distribute your assets effectively. They provide flexibility and control over how and when the money is disbursed to your beneficiaries. Depending on your circumstances, a revocable living trust or an irrevocable trust may be appropriate. Consult with an estate planning attorney to determine the best type of trust for your needs.

4. Consider Beneficiary Designations:

Life insurance policies and retirement accounts often allow you to designate beneficiaries directly. These designations bypass the probate process, making the distribution quicker and more streamlined. Regularly review and update your beneficiaries to ensure your intentions are reflected accurately.

5. Life Insurance as a Financial Safety Net:

Life insurance can play a pivotal role in ensuring financial security for your loved ones. By providing a death benefit, life insurance policies can replace lost income, cover debts, and fund future expenses. A life insurance lawyer can guide you through the complexities of choosing the right policy that aligns with your objectives.

6. Choose the Right Life Insurance Policy:

When selecting a life insurance policy, consider factors such as coverage amount, duration, and premium costs. Term life insurance offers affordable coverage for a specific period, while permanent life insurance, like whole life or universal life, provides lifelong protection and potential cash value accumulation. A life insurance lawyer can assist you in navigating the intricacies of policy selection.

7. Review Existing Policies Regularly:

Life changes, such as marriage, the birth of a child, or divorce, can significantly impact your insurance needs. Regularly review your life insurance policies to ensure they align with your current circumstances. Life insurance lawyers can provide guidance on policy updates, additional coverage, or any necessary changes.

8. Communicate Your Intentions:

It’s crucial to communicate your financial plans and intentions with your loved ones. Openly discuss your estate plan, including the role of life insurance, with your family members. This transparency can help manage expectations and provide peace of mind to everyone involved.

9. Educate Your Loved Ones about Financial Matters:

In addition to having a well-crafted estate plan and life insurance policy, it is crucial to educate your loved ones about financial matters. Take the time to discuss your financial arrangements, including the role of life insurance, with your family members. Provide them with the necessary information about policies, beneficiaries, and any other relevant details. Encourage open dialogue about finances so everyone understands your intentions and knows how to navigate the process in the event of your passing. By equipping your family with knowledge, you empower them to make informed decisions and ensure the smooth transition of your financial legacy.

10. Seek Professional Advice:

Navigating the complexities of estate planning and life insurance can be overwhelming. Consulting with professionals such as estate lawyers and life insurance lawyers is essential to ensure that your wishes are properly documented and legally sound. They can guide you through the process, offer personalized advice, and address any concerns you may have.

 

Leaving money to your family is a thoughtful and meaningful gesture that requires careful planning. By understanding your financial goals, creating a comprehensive estate plan, considering life insurance, and seeking professional advice, you can provide your loved ones with financial security and peace of mind. Remember, it’s never too early to start planning, and reviewing your arrangements periodically is crucial to adapt to changing circumstances. Start the process today to ensure that your family’s future is protected.

 

Thank you Jennifer Bell for sharing your expertise on an important aspect of finance that most people procrastinate or avoid even considering.

 

Jennifer Bell - wellness coachAuthor Bio:

Jennifer Bell is a wellness coach and writer for life insurance lawyers in the Philadelphia area. She enjoys helping others find financial wellness.

Reasons to Invest in Real Estate After Retirement

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This post was contributed to Leisure Freak by consultant and blogger Alyssa Foster.

happy elder couple playing console games

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You decided to boost your income and enjoy your golden years even more. The question is – where to start? If you are out of ideas for a small business, then you might want to give real estate a try.  If you invest in real estate after retirement, your chances of enjoying a more financially stable lifestyle are significantly higher. In addition, you get a completely new retirement mindset you never knew you needed! Having said that, let’s take a look at the benefits of investing in real estate!

Passive income is the most common reason why people invest in real estate after retirement

Not all retirees prefer the same lifestyle. While some enjoy relaxing walks in the afternoon, others still seek to establish another source of income. That’s why real estate purchase is what most retired people opt for. It generates a monthly passive income and tax deduction benefits. If you are a landlord, then all you have to do is calculate the rent that will bring you profit and cover expenses. However, remember that even as a real estate owner, there’s still a required effort on your part.

cute house maquette and a key
You can benefit from being a real estate owner during your retirement.

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What you should have in mind is that your rental place needs occasional maintenance. Renting is highly competitive these days, which is another reason to give the place you plan to rent your full attention. In order to attract tourists, for instance, you have to make sure everything in the apartment/flat/vacation house works well. Also, there will be a need for repainting, decoration, etc. The money you invest into modifications will return you at a much higher value since the rental place will be sold out even a month in advance. 

Tax deductions

As an owner of real estate, you have the right to multiple tax deductions:

  • Interests – The most popular factor that reduces your taxes.
  • Insurance – A rental insurance policy is another tax write-off.
  • Repairs – All the necessary repairs inside your rental place are also written off from your tax payment. 
  • Professional services – If you decide to rent your rental place to, for example, a lawyer, you get rid of property management fees. 

A vacation home is one of the best real estate investment choice

If you look forward to becoming a landlord, keep in mind that it matters what kind of real estate you will own. A vacation home is arguably the easiest and, at the same time, super profitable real estate investment. However, you must ensure that the location and surroundings add value to your vacation home. This is why it comes in handy to hire a real estate agent and go through the buying process smoothly. A professional and trustworthy realtor is a person that will make sure you get the best deal. 

You can only benefit from entrusting your real estate hunt to a professional realtor:

  • Real estate agents know the housing market well. Hence why hiring one saves you plenty of time. 
  • With the help of a realtor, the market doesn’t seem so confusing and overwhelming anymore. 
  • You learn the pros and even cons of a particular real estate that caught your attention.
  • Once you explain to your chosen realtor what kind of property you want to invest in, they will do their best to get you an excellent deal. 
  • An experienced real estate agent will work in your best interest from start to finish. Even if they advise waiting for a little longer, take their advice.

Hire a professional to help you manage property finances 

If you want to set your retirement plan in motion, consider hiring a financial planner. As a real estate owner, your responsibility is to keep track of your finances and leave nothing to the case. A trusted financial planner can do the work for you and make sure your retirement period remains financially afloat. 

a professional  financial planner calculating the costs
Invest in real estate after retirement and hire a professional financial planner to help you manage finances.

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Contact a moving company to help you relocate furniture to your newly bought place

Your rental space will be ready once you get it fully equipped. If it’s a vacation home, then keep in mind that you’ll need extra help with furniture and other items. Therefore, put your spare time to good use and look up moving companies that can handle the move. According to seasoned moving specialists, one should rely only on licensed movers with experience. Furthermore, they must have tools and equipment that make moving a smooth process. For instance, if your vacation place is a bit further from the city, movers can simply load the truck and transport professionally packed items. That’s why it’s important to research any particular company before you sign a deal. 

Real estate is a valuable long-term investment

Before you tap into real estate investing waters, remember that patience is your biggest asset. Moreover, real estate is an investment that should pay off in the long run. From the moment you make a concept and start researching the market, it’s necessary to remain strategic. Only sensible decisions will bring you coordinated passive income and a much more relaxing golden years. Furthermore, you will get a completely new outlook when it comes to your retirement period! You will realize it can be joyful and far from dull, especially if you venture into something new (like investing in real estate).

happy older man discussing the reasons to invest in real estate after retirement
The retirement period becomes different when you start reaping the benefits from investing in real estate.

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Conclusion

At first, it seems complex to invest in real estate after retirement. On the other hand, it’s a fun process through which you learn more than you hoped for. At the same time, you discover how to deduce your taxes and learn how to promote your rental space in the best way possible. For a start, decide whether you opt for commercial or residential renting. Maybe you could join Airbnb and attract more digital nomads or tourists. The options are endless. Furthermore, the more effort you put into your real estate, its value increases. This gives you an advantage in case you decide to sell further your rental space at some point.

 

Thank you Alyssa Foster for sharing your expertise with Leisure freak readers.

Author Bio:
Alyssa Foster is an author who works as a blog writer and consultant for Homegrown Moving Company Colorado. She enjoys long conversations over coffee and outdoor activities when she needs a break from the digital world.  

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. 

 

Waiting to Retire Taking the Most Dangerous Risk

Early Retirement Lifestyle, Living in the Moment, Passion, Retire Early,

Are you waiting to Retire Taking the Most Dangerous Risk?

“The Most Dangerous risk of all – The risk of spending your life not doing what you want on the bet you can buy yourself the freedom to do it later”.

That was the tagline on a digital poster that my early retired friend had sent me. It really stuck with me. The quote came from a book called The Monk and the Riddle: The Art of Creating a Life While Making a Living. By Randy Komisar. The book is a guide for breaking away from work that isn’t your passion, and moving on to work that you are meant to do that has greater meaning.

“If your life were to end suddenly and unexpectedly tomorrow, would you be able to say you’ve been doing what you truly care about today?”

Many of the quotes from the book do resonate with me. They can truly be motivational about early retirement. Retire from work or a career that is no longer floating your boat to do what you are passionate about. If you have been reading from this Leisure Freak site, that is exactly what I preach. I constantly rant about retiring early and often and why it’s such an awesome lifestyle to live.

Why having the financial freedom to retire early to pursue leisure and happiness, including whatever opportunities you may be interested in and passionate about is a life well lived. Why would anyone spend any more of their lives in sacrifice just to make a living? You may retire from something but true retirement happiness is all about what you retire to. Life is short. It would be a waste of life spending your precious time in a position that no longer aligns with your talents, spirit and passion. Especially once you have reached financial freedom through savings and/or pension eligibility.

 

“The most dangerous risk of all is the risk of spending your life not doing what you want on the bet that you can buy yourself the freedom to do it later”.

Most people take this risk every day of their lives. They take this risk while in their careers by avoiding the risk of lost comfort, seniority and security. What everyone should fear most is the risk of never experiencing anything else.

I was one of these people. I stayed well beyond my passion for my career in order to secure a retirement package. A package that in the end was far less than initially promised. Fortunately it was only a decade of my life during the last 10 tears of my career.  It was bearable because it was all part of a plan. I still feel it was worth the sacrifice.

I do not advocate everyone who feels that they are not in a place where they feel it aligns with their passions should just quit and walk away. It takes planning and knowing what your real happiness is and what your passionately lived life is going to be.

When do you know that you are Waiting to Retire Taking the Most Dangerous Risk?

You know when. Its when you have reached a point of financial freedom and you hear that little voice in your head. It’s when you have the nagging feeling that you are meant to do something else. Doing something that is rewarding and with greater meaning. Hearing that voice say that it’s time to focus your time on your true passions and live being in your zone.

“The Deferred Life Plan also dictates that we divorce who we are and what we care about from what we do in that first step…we hope and suppose that when we get [to the second step], we will be able to resurrect our passions on our own terms. If we get there.”

This quote had me really take a look at how I got to my early retirement. I am certainly guilty of living the deferred life plan. I did what I had to in Step 1 so that if I made it I could then live a life that I wanted to in Step 2. It is the plan that everyone knows and if you have a plan it does work. However we do risk leaving the planet before reaching our goal and freedom. I am very proud that I was able to follow the plan and not spend another day longer postponing my earned freedom. Living with purpose, happiness, and a passion focused life. My passion has been successfully resurrected. Once the little voice was heard, I made the leap and have never regretted it for a minute.

Value Time over Money

“Marrying our values and passions to the energy we invest in work…increases the significance of each moment. Consider your budget of time in terms of how much you are willing to allocate to acquiring things versus how much you are willing to devote to people, relationships, family, health, personal growth, and the other essential components of a high-quality life.”

This quote from the book is totally aligned with my Leisure Freak Retire Early and Often philosophy. My valuing time over money. Living a more fulfilling life spending my time doing things that are rewarding. Doing what I am truly interested in and passionate about.

Happiness isn’t about buying and owning stuff.  Happiness is found as mentioned in the quote: People, relationships, family, health, and personal growth. I will also add the following. Happiness is also having the financial freedom and courage to pursue your dreams and passions.

Are you waiting to retire taking the most dangerous risk or have you made the leap to live a passionate and happiness focused life?