Thursday, January 27, 2011

Ways to Create Wealth With Proper Investment

Financial organization helps us to make better money for the future. The problem with many people is they won't spend time in making a plan about organizing the money that we have. We are either a bit lethargic or have a feeling that planning is not going to make any difference.

Planning the expenditures is very much emotional and it becomes difficult to think rationally about it.The fortune that you make with depends mostly on how you spend your money and not on the money that you earn.

We shall plan our personal and financial life with a systematic plan. When there is no proper plan, we need to face consequences. This gives us a personal strain and tension.

The main reason for the tension is due to inability to make decisions at proper time. Rather than worrying about bad financial situations, we shall plan and change our behavior slightly as per the needs. We shall plan our spending and borrowing into control. This shall be the first priority. With out this we can not save money for the future spending.

Before buying any item, we shall cross check your ability to buy it, Affordability is not about the money or credit card limit that you have today. You shall cross check in terms of long-term investments and find your affordability. It is better to spend money on clearing debts rather sparing money for consumable goods.

In the previous days we used to have full pension plans. The pension money comes to all basic needs and we need not plan any thing separately. Those days are no more available and you need to contribute to 401(K) kind of plans. This is a life time commitment and you need to invest for it to have bright future.

If you are unable to make big contribution for the retirement, it is better to contribute the maximum possible matching amount to get the best advantage. If you are self-employed you shall invest in IRA or Roth IRA to get the retirement benefit. You shall also consider inflation effect on your future income and invest according to that.

Your company may not contribute significantly when they don't make profits. This depends on the company that you are working. You shall know these rules and plan accordingly. We shall invest some portion of our savings in the retirement fund to make our future secure.

By: Narash Addagada
My insurance blog deals with different issues of coverage, premium for the people of age Over 50s Life Insurance. You can find information about Over 50 Life Insurance and it will help you to choose the best policy for you.I welcome your comments on it.

Tuesday, January 11, 2011

Investment After Retirement

So, here it is, the big 'R'. You've spent a lifetime working, setting monies aside for investment after retirement. Now you're here! What to do? Most likely, your investment after retirement will consist of a pension (?), 401(K), or IRA and Social Security. Statistics say that the average savings in a retirement plan is $100,000.

After you've figured out your expenses, down sizing, making changes, you must figure income including a part time job if necessary. Once you have all of the particulars figured out you can give attention to how you are going to manage your investment after retirement.

Two of the main components of investing after retirement is to be conservative and use your funds in a tax advantage way. Too many retirees get foiled into thinking that they can invest in investments that promise high returns usually in a short period of time. Can you say Bernie Madoff? We have heard the saying, "if it's too good to be true, is usually is". We can't let greed be our guide.

Look for investment after retirement that will be relatively stable such as bonds, c.d., money market accounts and annuities. These are not sexy but will keep you safe. Remember, each of them has their own definitions. It's up to you to see what fits your risk tolerance. These should not have risks associated with them.

As far as taxes are concerned when investing after retirement, use funds that have the lowest tax liability. This strategy allows you to maintain your principal balance at as high a level as possible because the more taxes taken out of your withdrawals, the more principal you will have to withdraw to meet your expenses.

First investment after retirement is to withdraw any monies from a non retirement savings account. You've already paid taxes on these funds, so withdrawals will not cost you anything. Once these are depleted, go to your 401(K) or IRA. The best way to do this is to roll these funds into an annuity and start receiving a monthly income. You will enjoy a safe monthly income with guaranteed income while investing after retirement.

Remember, investments after retirement are probably more important to you than ever before. Consult a financial specialist, tax attorney.

By: Ric Dalberri
Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. Ric was also a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S.
Ric is the founder of Retirement USA which provides complete solutions for your lifestyle. Please visit and sign up for the free newsletter.