fbpx

The Free Financial Advisor

You are here: Home / Archives for Personal Finance

Why do Some People Prefer Online Check Writing?

by Leave a Comment

Check writing is a key component of the overall business cycle. Checks make it possible to exchange money with relevant parties without the need of carrying around large amounts of cash. Even in an era where digital payments have become much more common (Venmo, PayPal, etc.), check writing is still incredibly ubiquitous.

This Photo by Unknown Author is licensed under CC BY

If you are the owner of a business, developing an efficient check writing system will be incredibly important. By being able to ensure that all money is distributed to the correct location on time, your business will be able to maintain positive relationships and improve its overall cash flow cycle.

When deciding which check issuing system is right for you, the first thing you’ll need to ask yourself is whether you hope to use a paper check writing system or an online check writing system. As is the case with any component of your business’ operations, these systems will have both pros and cons attached to them. Before making any final decisions, be sure to compare all available options.

In this article, we will discuss why many businesses choose to use an online check writing service. In the modern era, the development of these innovative systems is something that is far from surprising. By understanding both the pros and cons of online check writing, you’ll be able to determine if it makes sense for your business.

Affordability

The most obvious benefit of using an online check writing service is that, especially when compared to many of the alternative options, it is incredibly affordable. By being able to cut out as much overhead as you possibly can, your business will be able to improve its bottom line.

There are quite a few reasons why using an online check writing service can save your business money. Ordinary costs such as paper, ink, and stamps can be immediately eliminated. Additionally, your business will not need to invest in an industrial printer. 

Popularity

Over the past decade or so, online check writing services have taken the business world by storm. According to some estimates, as many as 67 percent of businesspeople have issued or received an online check at some point in time.

While following the crowd may not always be a good thing, it certainly makes sense when it comes to things such as distributing and receiving funds. For example, if both you and your suppliers use the same checking platform, your funds can be quickly transferred with ease. Before making any changes, you may want to consider speaking with the parties you are issuing checks to (suppliers, employees, etc.) and see which systems they personally prefer.

Accessibility

Another benefit of using online check writing services is that these systems can be accessed anywhere in the world. Thanks to the development of cloud technology, your business can carefully monitor all checks and make any changes as needed.

As long as you have an internet connection, you’ll be able to track the status of all outstanding checks and view instantly generated statements with ease. Depending on the nature of your business, you may also want to extend access to additional parties, such as top-level employees. By staying in control of the entire check-writing process, your business will be much less likely to experience any future cash flow issues. 

Security

When it comes to payment processing, one of the most important things for your business to keep in mind is security. Without a system that is entirely secure, your business will quickly find itself experiencing damaged relationships and, potentially, even facing legal issues.

Considering that, according to JP Morgan, roughly 4 in 5 businesses were exposed to fraud in 2018, it is clear that your business needs to be proactive about keeping all of its financial information secure. Online check writing services have reduced rates of fraud and have put systems in place that can restore your financial security when needed. Though you will still need to be vigilant when dealing with any financial information, using these services can certainly give you some much needed peace of mind. 

Customer Service

The importance of customer service—in all aspects of the business world—cannot be overstated. Fortunately, each of the top online check writing services will have plenty of features that allow your business to manage its digital checks with ease.

Unlike most traditional banks, online checking services can be accessed 24/7, allowing you to quickly resolve any developing issues. Not only will they alert you of any potential checking issues, but they will also answer any questions you have as they inevitably emerge. By developing a positive relationship with your digital checking partner, you’ll also be able to improve your relationships with your employees and your suppliers.

Advanced Technology

With each passing year, the digital checking technology available continues to improve. In addition to the proliferation of new security features, digital check writers have been listening to their partners and making major improvements to their online portals.

Having new technology available is undeniably a very valuable thing. Advanced online checking features allow to accelerate the payment process and gain total control of your outstanding payments. Being able to securely sign, view, and manage your checks from a single location can help give your business a lasting competitive advantage.

Professionalism

Successfully running a business is all about developing lasting and fruitful relationships. In order for other businesses to take you seriously, you need to first take yourself seriously. This all begins with establishing a strong sense of professionalism.

By being able to incorporate logos, use custom fonts, and quickly manage your checks, it will become clear to all relevant parties that your business knows exactly what it’s doing. Even if you are somewhat new to the world of business, using an online check writing service demonstrates a sense of professionalism and tech-savviness that every business ought to strive for.

Conclusion

As you can see, there are many reasons countless businesses switch to using digital checking services each year. With each of these benefits readily available, it may be time for your business to begin thinking about the online checking service that’s right for you.

10 Fundamental Indicators for Forex Trading Strategies

by Leave a Comment

Developing an effective forex trading strategy requires the ongoing use of both technical and fundamental indicators. Technical indicators rely on the use of hard numbers and patterns in order to predict future price movements. At the same time, fundamental analysis requires paying close attention to events and reports, allowing you to accurately predict which currencies are about to increase in value.

This Photo by Unknown Author is licensed under CC BY-NC-ND

Fundamental analysis is something that is relatively straightforward but will still require careful planning and practice. The value of any given currency will depend on how the currency is performing relative to all others. This means that, in order to become a successful forex trader, you will need to look at the forex market from a big-picture perspective.

According to some estimates, the forex market currently experiences about$5 trillion worth of activity per day. Trading activity increases even further when markets are relatively volatile, as they have been for most of 2019. If you are a trader who is currently overlooking the lucrative forex market, you may be missing out on opportunities to earn some easy money.

In this article, we will discuss ten fundamental indicators that can immediately enhance your overall forex trading strategy. By paying close attention to these indicators, you can stay ahead of the market and increase the probability of earning strong daily returns.

  1. Gross Domestic Product (GDP)

Gross Domestic Product is a metric that attempts to account for all economic activity within a given nation. While the metric itself may not be perfect, it is very useful for understanding just how big a given economy actually is. When GDP is growing—especially when compared to other countries—the nation’s currency will become inherently more valuable. In order for GDP to be useful, you should pay attention to raw GDP as well as how GDP has changed over time.

  1. Retails Sales Reports

Every month, the world’s largest retail companies will release reports detailing their overall performance. When retail is expanding, traders will flock to the forex market and try to get a slice of the action. Retail reports are also useful for gauging the general attitude of consumers and determining whether a near-future recession is likely to occur. 

  1. Crude Oil Prices

Even as our world continues to pursue alternative sources of energy, there is no denying that crude oil is still the backbone of the global economy. Changes in oil prices will have a tremendous impact on global currency values, especially the American Dollar (USD). In order to develop a productive forex trading strategy, pay close attention to the value of crude oil, along with any actions taken by OPEC and other relevant parties.

  1. Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a metric used to evaluate whether ordinary consumer goods are increasing or decreasing in value. The CPI tracks how a “bundle” of common goods and services has changed in price over time. In other words, CPI is a metric used to indirectly estimate inflation and determine the usefulness of a single unit of currency. In the United States, the CPI is regularly reported by the Bureau of Labor Statistics.

  1. Producer Price Index (PPI)

The Producer Price Index (PPI) is very similar to the CPI, but it looks at things from another perspective. Instead of focusing on how the cost of consumption has changed over time, PPI focuses on ongoing changes in the cost of production. Increases in PPI often occur directly before increases in CPI, meaning you can usually use one metric in order to forecast changes to the other. When both CPI and PPI are increasing, the spending power of a given currency can be expected to decrease.

  1. Interest Rates

Interest rates determine how much it costs relevant parties (both banks and individuals) to borrow money. When the Federal Reserve—or any central bank, for that matter—changes interest rates, all global currency markets will be immediately affected. The Federal Reserve has a considerable amount of influence on whether currency markets are expanding or contracting. Because of this, any major decisions being made by the Fed should be directly reflected in your ongoing forex trading strategy.

  1. Unemployment Rate

While, like most metrics, unemployment and employment rates can sometimes be misleading, both figures are still quite useful for understanding the general health of the economy. When the unemployment rate is increasing, a recession may be on the near horizon. It will also be incredibly useful to pay attention to the job reports released by the BLS every month.

  1. Taxes & Tariffs

Taxes and tariffs will both influence just how valuable a given currency can be. When all else is equal, increases in either taxes or tariffs will hinder the spending power of a unit of currency and consequently make that currency inherently less valuable. If a nation is expected to leave a trade union, as the United Kingdom is expected to do by the end of the year, forex traders will typically position themselves away from their corresponding currency (just take a close look at how the Pound has been performing).

  1. Institute of Supply Management (ISM)

The Institute of Supply Management releases a report suggesting whether new orders have been increasing or decreasing. As you might expect, increasing orders sends a signal that economic production is on the rise and that a currency is on the verge of becoming much more valuable. The ISM figure uses 50 as the benchmark for measuring these activities. When the ISM figure drops below 50, a retraction period is likely about to occur. When the ISM report rises above 50, you can expect currency markets to rally.

  1. Index Performance

Though the stock market and the corresponding forex market don’t always move in the same direction, there is no denying that the relationship between these markets is incredibly strong. When markets are moving in a bullish direction, the corresponding currency (such as the USD) will become more useful and demand for that currency can be expected to increase. In the United States, three of the most useful indexes are the S&P 500, the Dow Jones Industrial Average, and the Russell 2000. When these indexes are moving in a positive direction, you will likely see the spending power of the dollar begin to rise.

Conclusion

Traders who consistently earn strong returns rarely do so by accident. Instead, these traders rely on a reliable set of fundamental indicators that make the forex market significantly easier to navigate. With the right set of indicators readily at your disposal, you’ll be able to forecast short-term market movements and open profitable forex positions.

The 4 Main Issues That Are Driving Your Online Customers Crazy

by Leave a Comment

One of the key reasons to start an online business is the ability to cast a wider net. The Internet allows you to reach more people and offer them a convenient shopping experience. While online businesses have their perks, the simplest technology glitch can throw a monkey wrench into the works. For instance, a poor payment processing experience can spell disaster for your entire operation.

Time-consuming

Most people are discouraged by the prospect of having to create an account to buy goods from a website. Accounts are a good option if customers are frequent visitors to the site, there are incentive programs, or they want to keep their credit card and shipping information on file for future purchases. However, when customers don’t shop on a site regularly, then there should be a guest option that allows them to input their credit card number and address on an as-needed basis. This pet peeve doesn’t imply that you should completely reject the possibility of customer accounts because it certainly does offer a degree of convenience for repeat customers. Just don’t mandate it on your site for everyone.

Go mobile.

More than ever, people are always on the go and rely on their smartphones to perform a variety of tasks. That includes online shopping. Consider developing a mobile app so customers can easily navigate your site. Otherwise, a website that doesn’t lend itself to easy viewing through a smartphone screen will result in lost business over the long term.

Outages

Creating the perfect website is a challenge, and you are apt to identify improvements along the way continually. Inevitably, there will be outages that affect your service. Be sure to monitor and address system issues as quickly as possible. Frequent errors during the checkout process are problematic in more ways than one. Customers are likely to give up and search for products from your competitors. Also, repeatedly inputting sensitive account information could look suspicious, and your customers might worry about fraud or duplicate charges.

Inconsistent company names

Be as transparent as possible throughout the purchasing process. Alert the customers upfront if the charges will appear on their statement under another vendor name, so there’s no confusion or unfounded fears about a potential scam. If your site directs them to another page, give advanced warning and explanation.

Whatever online business you’re looking to establish, handling and protecting customer data should always be a priority. Work with reputable payment processing companies that safeguard data and keep transactions secure. Sometimes, you may run into a roadblock with mainstream banks if your business is less traditional like selling vaping products, but you can still set up an e-cigarette merchant account with specialized companies that offer the same protection.

Essentially, if you just put yourself in your customers’ shoes, you’ll understand not only how to build the ideal checkout process, but the total customer experience. The Internet doesn’t have to completely take away the personal touches we take for granted when shopping in brick-and-mortar stores. Try to create a welcoming and inclusive website that not only addresses the customers’ issues, but also anticipates their needs.

Image source: Pexels.

How Does Trade Policy Affect Me?

by

With talks of trade and tariffs filling headlines, I thought it fitting to explain what these terms actually mean and how they affect our economy.

Trade

In its most basic form, trade is the exchange of goods and services. What we’re talking about, however, and why this article is so relevant, is global trade.

The current “trade war” between the U.S. and China is about “unfair” trade (so President Trump says). Now I’m not debating as to whether trade between our two countries is fair or if I agree with his use of tariffs, I’m going to explain why this all matters.

China and the U.S. are complete opposites when it comes to trade. China is a net exporter and the U.S. is a net importer. China exports more than it imports and the U.S. is the reverse of that.

China is able to produce goods at a much lower cost because their cost for labor is so low. The U.S., on the other hand, is more costly to employ workers.

Tariffs

President Trump is utilizing tariffs to do two things. One, he’s trying to keep people employed domestically, instead of companies shipping jobs overseas.

A tariff increases the overall price of a good. By doing this, it gives employers an incentive to keep jobs in the U.S. because the money they save by shipping jobs abroad is reduced or taken away.

Two, he wants to reduce our trade deficit. Remember the U.S. is a net importer. By slapping tariffs on Chinese goods, it encourages U.S. consumers to buy products from U.S. manufacturers. Thus, fewer imports from China.

Theory vs. Practice

In theory, this sounds like a great plan, but in practice, however, it’s the consumer that pays the price.

When a tariff is used, the exporting country doesn’t see any taxes or penalties. The end result is an increased cost for each product.

For example, if you bought a pair of headphones for $100 and the electronics that make up those headphones are the recipient of a 15% tariff, those same pair of headphones now cost $115.

Now here’s where things get a little more complicated.

China’s Response

China has retaliated with tariffs of their own, but what they’ve also done is manipulate their currency.

You may have seen that in the news a few weeks ago when President Trump labeled them a currency manipulator.

When Trump put tariffs on Chinese goods, China reduced the value of its currency compared to the USD (U.S. Dollar).

This counteracts the effect those tariffs have.

Why It Matters

One, the markets hate uncertainty, so the more this is dragged out, the less likely we are to see an agreement between the two countries. Uncertainty leads to volatility, volatility leads to selling, and selling leads to declines.

Two, through the use of technology and more efficient supply chains, our planet has become very interconnected.

Global trade is a great thing. Each country has its strengths and weaknesses. When countries can focus on their strengths, we can produce more of something for less cost, and then trade with each other. Everyone wins.

Protectionism

This trade war does the opposite. It’s reducing everyone’s willingness to work together by creating a protectionist environment.

A protectionist mentality favors home country and doing business only in your home country. That restricts global trade and the exchange of goods.

The goal here is creating a fair trade agreement that benefits the global economy and (now) minimizes damage to individual economies.

What You Can Do

The most challenging part about this whole situation is we don’t know what’s going to happen. If a deal gets done, the market will like that, but if a deal doesn’t get done, I see a stock market decline in our future.

How do you prepare then? My best advice is the same as the advice I usually give, allocate according to your risk tolerance and time horizon. Those two things should dictate your investment strategy and whether or not you should be concerned with the outcome of this trade war.

Further reading:

Interest Rates and Trade

Why Asset Allocation Matters

Trade, Interest Rates, and Australia

Questions You Need To Ask Yourself

My Thoughts On The Market

 

Please be advised: Everything written in this article is for informational purposes only and should not be taken as investment advice. Opinions are my own and do not reflect the opinions of this publisher or my employer.” 

Inexpensive Fall Activities

by Leave a Comment

With Fall quickly approaching I thought it’s fitting to write an article about the (inexpensive) activities you can partake in that won’t break the bank.

Below you’ll find a large number of fun things you can do when the leaves start to change.

  1. Go for a hike – Depending on where you go, this can be free! If the hike takes place in a state park, there might be a small fee. Regardless, a hike is a great way to spend time, get exercise, and experience nature.
  2. Pick pumpkins – This is an autumn staple! Go to your local pumpkin patch and pick out your favorite pumpkin. Then figure out what design, pattern, or face you’ll carve into it and go to town!
  3. Have a picnic – Ingredients for sandwiches, potato salad, chips, and a dessert item. What else could you need? Through in an item from below (scenic drive) and a nice spot to set up, and you’re good to go! Inexpensive and relaxing.
  4. Apple orchard – Go apple picking! Gives you a great excuse to go outside, walk, and hand-pick some healthy food for yourself. A typical orchard operation will charge you $1.25-$2.00 per pound.
  5. Local festivals – Most of these are free or cheap to attend, with most of the cost coming from the games and events you participate.
  6. Maze – Many of the fall festivals will have a maze. These are typically made from hay bales. Additionally, farms that have pumpkins to be picked sometimes have a corn maze and/or hayrides. I have one of those near me and it was a ton of fun, and cheap too.
  7. Football games – Local high school games are really exciting to watch. They’re inexpensive to go to, they usually have good food, and you get to show off some hometown pride. Added bonus, you could have a promising player on your team or one on a visiting team to watch. I don’t know about you, but watching a special talent is…well..special!
  8. Haunted house – I’m partial to the scary stuff because I’m into things that frighten me, but haunted houses are awesome. Yes, some are quite lame, but when they’re done right, it’s exhilarating!
  9. Sit around the campfire – This is an incredibly relaxing activity. Sitting around a fire with your family and/or friends, roasting marshmallows, and making smores – can’t get much better. Costs nothing more than marshmallows, graham crackers, and chocolate!
  10. Scenic drive – For me, there aren’t many things that can beat a scenic car ride (the previous item does). Especially in the fall. Trees change colors, there’s a slight nip in the air, and it just smells like autumn.
  11. Scary movie marathon – I understand that scary movies aren’t for everyone, but if you have a few and invite people over that bring additional movies, you can make a long and scary evening out of it. If you don’t have scary movies, go to your local library and check some out. It’s free!
  12. Make collages with leaves – This could be a nice, little craft you can do as a family. Especially if you have young kids. They love getting messy and creating with their hands. They can also have a ton of fun jumping in leaf piles before you pick the leaves out for your collage.
  13. Ghost hunting – Seriously. In doing research for this post, this actually came up, and it surprisingly checks out. There are a number of apps available. 

All-in-all, autumn is my favorite time of year. I love the weather, the leaves changing, and all of the fun things you can do. I recommend doing at least one of these activities in the next few months!

How Can College Students Spend Their Money Responsibly

by Leave a Comment

Money management is tough no matter how old you are. However, it’s particularly challenging when you are in college. This is because you either have no income at all, or you make a small amount of money with a part-time job. However, the expenses are many- lodging, tuition fees, textbooks, transportation, etc. This is why it’s important that college students learn how to spend their money responsibly, especially in light of the many reasons why you should save money.

The following are some of the points that you can keep in mind to save money as a college student:

  1. Set a Budget

Spending money without a budget is like driving a car without the headlights on- you don’t know where you are going. You may think that you only need to record the “big” transactions like the tuition fees, dorm rent, etc. but the truth is that every small expense including the can of coke that you consume more than a few times every other day can add up and affect your finances.

Maintaining a budget isn’t that hard. All you have to do is create three records- earnings (allowance from parents, income from a part-time job or freelance gigs, etc.), fixed expenses (college fees, Internet service, etc), and flexible expenses (food, transportation, etc) and then figure out how much you are saving every month. You can also use any of the popular mobile apps for budgeting viz. Mint, PocketGuard, Mvelopes, etc.

  1. Don’t Skimp on Insurance

College students usually have so many expenses already that insurance may seem like a luxury that they can easily avoid. However, nothing could be further from the truth. This is because the students need insurance just as much as salaried professionals and business owners. For instance, you can benefit from an affordable health insurance plan as it’s cheaper at a young age. In the same way, you can get renters insurance if you are living somewhere as a tenant for protection against thefts, floods, earthquakes, etc. Just make sure that you know what does renters insurance cover before you sign on the dotted line.

  1. Pay Credit Card Bills on Time

Credit cards can be extremely useful to college students. However, they can also lead to a massive debt if used carelessly. For instance, if you have become fond of making “minimum payments”, then you will be surprised to know that these can increase your debt too. This is because these payments only prevent fines and penalties for not clearing your balance but the remaining amount (balance-minimum payment) is carried over to the next month still. This amount collects interest i.e. debt.

If you don’t want to waste money, then it’s better to control your spending habits and reduce debt. If you already have debt, then you can learn how to overcome credit card debt online or by approaching a credit expert.

  1. Save on Books

College textbooks can be rather expensive. Thus, it’s better to buy used books that can be easily obtained at up to 50% or lower prices of the new ones. Besides, there are various platforms where you can buy and sell used books including the following:

  • BetterWorldBooks
  • PaperbackSwap
  • Thriftbooks
  • Abe Books
  1. Shop Online

Shopping online is convenient and easy. However, it can also help you save a lot of money. For starters, you get to compare the prices of the same product under several brands and pick the one that gives you a bang for your buck. You can also take advantage of promotional offers, discounts, cashback, etc. to save additional money on top of the existing discounted prices. There are even dedicated platforms like coupons.com where you can find coupons for various ecommerce stores and service providers.

Student life doesn’t have to be stressful. You may often find yourself short on cash, but it doesn’t mean that you can’t get on top of your finances. Just apply the information above and you are sure to notice a spositive impact on your personal finance.

How to Retire at 50: 5 Steps for Success

by Leave a Comment

Retirement can seem like a long way away.

So far away, in fact, that it’s easy to ignore altogether.

This might explain why the average American has a paltry $96,000 saved for retirement.

That, of course, isn’t going to go far. Unfortunately, at the current rate, the possibility of ever retiring seems unrealistic! It’s a shocking realization. After all, nobody wants to work longer and harder than they have to.

Of course, it’s in everyone’s interest to retire as early as possible. Nicely, it’s absolutely possible.

It just takes the right know-how. With a few lifestyle changes and sensible decision-making, you can bring your retirement date forward by decades. Sound good? Want to learn how to do it?

Keep reading to discover exactly how to retire at 50!

1. Save More Earlier

Nobody retires at 50 by living paycheque to paycheque.

If you’re forever spending everything you earn, then you can never expect to retire at a reasonable time. The only way to do it is by being rigorous and regular with your saving.

The trick? Start as early as possible and invest what you save.

You have to make your money work for you. Sticking it straight into a typical saving account is good for nobody. Having cash is okay, but interest rates are at an all-time low at the moment.

Combine that with rising inflation and your money can end up depreciating in value over time.

Saving larger amounts earlier, and investing it all, helps you leverage the power of compounding. This is when money grows exponentially over time via interest. The earlier you start investing, the better. It gives you more time for compounding to take effect.

2. Live With Frugality

The more you save, the better.

Even relatively minor additions to monthly savings can make a dramatic difference in the long run.

For example, imagine investing an initial $1,000 and adding $100 per month for 30 years. An annual return of 8% interest will provide over $146,000 by the end. You’ve contributed $37,000 in total, but almost quadrupled your money thanks to compounding.

Amazing, right?

However, imagine the same setup, but this time you invested $200 every month. Now, you’d come away with almost $282,000. That’s an enormous jump for an extra hundred bucks a month.

As you can see, it’s in your interest to put more aside every month.

That takes sacrifice. Get into the habit of cutting back elsewhere so you can reach your monthly savings goals. For an extra hundred bucks, that might just mean cutting out your morning Starbucks coffee!

Oh, and want to know how much you’d get for saving $200 every month for 50 years (with an initial $1,000 investment)? A whopping $1.42 million. It’s a clear example of how starting earlier is in your interest.

3. Invest Aggressively, Earlier

The key to attaining these numbers is in investing.

We mentioned that earlier too. However, it’s worth digging into deeper. After all, investing is a total mystery to almost everyone out there. That’s one reason why not many people do it! Investing feels risky; in tricky times, it’s understandable to want to stockpile money instead.

However, investing should be for everyone. There are different ways to do it. Some are riskier than others. The trick is finding your risk tolerance and investing accordingly.

In truth, though, younger people can afford to invest more aggressively. What does that mean? It means investing larger sums in riskier assets (in other words, it means investing in stocks over bonds).

Market fluctuations are normal. They’re going to rise and fall. Over time, any falls will correct themselves and, like a pendulum, swing back into the positive. At a younger age, you’ve got more time to weather market downturns.

Want to retire by 50? Invest in riskier assets when you’re young. Then, as you get older, begin to reallocate your investments into ‘safer’ asset classes, such as bonds.

4. Reduce Your Taxes

Taxes are anathema to early retirement plans.

Of course, they serve a vital societal function. However, there’s no point paying more than is necessary. Many people do this unknowingly. All the while, their retirement date gets pushed ever further backward.

Imagine meeting your savings goals. Years go by and you start feeling great about your retirement account. You congratulate yourself on your achievement. You go to withdraw your money, only to be landed with an unexpected tax bill that slashes the total by 30%.

It’s more than possible; it’s in your absolute interest to take sensible tax-reducing savings decisions.

Two accounts of particular note are your 401(k) and a Roth IRA. Both accounts provide means of sheltering your finances from undue tax obligations. The tax-savings can extend to thousands of dollars.

Be sure to look into them in more detail and leverage them in your bid to retire at 50.

5. Plan Ahead

Is everything about financial planning a mystery to you?

We don’t blame you! Investments, savings, and budgeting can get confusing.

Speaking with a retirement planning advisor may be a good idea. Sure, you’ll pay for the service; it’s always worth having a clear understanding of how much they charge.

That said, finding a reputable and ethical, financial advisor to help you plan for retirement can make a big difference. They can support you in setting goals and reaching them. How? By making solid recommendations based on expertise and knowledge, suggesting sensible investment allocations, and preparing you for market downturns.

For total newbies fixed on retiring at 50, this can be a sensible approach.

Final Thoughts on How to Retire at 50

There you have it: 5 essential steps that help explain how to retire at 50 years old!

People are struggling to save for retirement. As it stands, the majority of Americans will struggle to retire at all! They won’t have enough saved up to cover themselves and provide any quality of life. However, that doesn’t have to be the case.

In reality, anyone can retire on time. Even better, taking early retirement is possible too! It just takes the right approach and know-how.

Hopefully, this post has highlighted the key steps in making it happen.

Want more articles like this one? Head to the Getting Finances Done section of our blog now!