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Save Money on Legal Fees

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Don’t get me wrong – when you need legal advice, cheaper is not always better. Shopping for an attorney by price alone may not be the best strategy when you are facing important, life-changing events such as a criminal charge, a serious personal injury, or a difficult divorce. Nevertheless,  you can save yourself some money by following a few of these tips.

  1. Don’t assume that the largest law firm in town is the best. Large law firms tend to charge more than small firms and sole practitioners. If your legal needs don’t involve large corporate mergers, international business deals, or complex class action litigation, you may not need to hire a law firm whose billing rate starts at $500 per hour. Look for a smaller local firm that may be able to offer more personalized service while billing at a much more affordable rate.
  2. Sign up for a free consultation. Not all lawyers offer free consultations, but many do, especially those in the personal injury field. If you are in upstate New York and need a Niagara Falls personal injury lawyer, you may want to talk to more than one firm before you choose the one that is right for you. Be sure to ask about their fee schedule and the possible costs that could be involved with your case.  If you’re Virginia, consider ReidGoodwin personal injury lawyers. They’re a solid Richmond based firm and will do a good job for you.
  3. Be wary of slick TV ads. If you are injured by a medical device or product, you have probably seen ads on television for lawyers who handle cases like yours. You may even receive advertisements in the mail from law firms who want your business. Look at the fine print – Usually, the law firms that advertise on TV have to hire local attorneys to handle cases in your state, so why not eliminate the middleman? If you are in Massachusetts, for example, only a Massachusetts attorney may represent you in a Massachusetts court. Find an attorney in your state who has experience in the type of litigation you may need.
  4. Make sure you really need an attorney. Some states allow non-attorneys to handle certain tasks, like title searches and real estate closings. These services may be less expensive through a title company or other authorized provider.
  5. Remember: When you are being billed by the hour, the clock starts ticking as soon as your attorney picks up the phone, or as soon as you walk into his/her office. There is nothing wrong with that, but you have some control over how long your meetings and phone calls will take. Don’t waste your attorney’s time. In a divorce matter, for example, you do not want to pay $250 per hour to make your attorney listen to petty complaints about your spouse. Save that for your friends. Your attorney needs to know facts that are relevant to your case. Try to separate those from petty annoyances that will have no significance to your final outcome.

Write down a list of questions before you talk to your attorney. The less time you spend talking aimlessly while trying to remember what you wanted to ask, the less expensive your visit or phone call will be.

Don’t ask your lawyer to do tasks that you might be able to do. If you need to produce bank statements, for example, you can get them yourself rather than paying your attorney to do it. Ask your attorney if there is anything you can do; if the answer is “no,” then stand back and let him do his job!

My Thoughts On The Market

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Let me start by saying that I have no clue what is going to happen in the stock market in the next 12 to 18 months, what I do know are several of the factors that have a say in what happens.

If you guessed that at least one of those factors has to do with President Trump, then you’re right.

Trade

The big elephant in the room. Honestly, I have no idea how this is going to pan out. Obviously, it behooves both parties to get this rectified as soon as possible, but it makes sense for China to hold out until the 2020 elections.

If they make a deal now, the US has more leverage at the moment and will probably be on the winning side of things.

If they wait until 2020, they have a chance of getting a Democratic president elected, and more than likely, they’ll reverse course on trade.

I think the odds increase that a Democratic president will win because if a trade deal isn’t reached, the market will negatively react and if the market tanks while Trump is president, he’ll be in trouble.

The US also decided to slap tariffs on European goods. This matters because if a deal is made with Europe, that gives the US that much more leverage. They won’t need China as much, and it’s clear that China needs us. We’ll see what happens.

Interest Rates

You may have caught wind of the most recent jobs report. We added over 200,000 jobs last month, which was much stronger than expected.

You’d think that kind of surprise would be good for the market, wouldn’t you? Unfortunately, the strong jobs report signaled a stronger economy than previously forecasted.

A stronger economy gives the FED less of a reason to cut rates this month. Where it stands now, I don’t know what they will do at the next meeting.

I was certain they would cut, but that was before the jobs number. I think it will benefit us down the road if they don’t. The reasons I think that have been explained before, but I’ll give you a synopsis real quick.

Typically, in the normal business cycle, rates will start [generally] low and consistently rise in tandem with economic expansion. Once the expansion peaks, the FED will cut rates to promote borrowing, which translates into spending.

Here’s the kicker. The prime rate (the rate the FED controls and the rate that affects all other rates) needs to be at a certain level when the FED cuts. If the prime rate isn’t high enough, then the FED won’t be able to cut enough to stimulate the economy.

What does this mean?

The current economic and political environment in the US is like nothing we’ve ever seen before. Our respective parties are at each other’s throats, which doesn’t make cooperation easy.

The unemployment rate is as low as it’s been in 50 years, inflation is crawling, rates are still ridiculously low, and the market is making new highs.

The FEDs impetus for raising or not raising rates is the level of inflation. It’s lower than their 2% target so they took their foot off the gas.

We are at the end of an expansion, which means a recession is most likely on its way, if not in the works already.

If you have less than 15 years until retirement and reallocate your accounts to be a little more conservative than usual. If you have over 15 years until retirement, I wouldn’t make any adjustments (allocate according to risk tolerance, time horizon, and goals).

Keep in mind that if you shift to more conservative and the market continues to rise, you’ll lose out on some gains, but if the market tanks, that conservative tilt should help minimize the damage.

Types of Mutual Fund Fees and How to Reduce Them

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Do you know how much you’re paying for the actively managed mutual funds in your portfolio?

If you’re being honest, the answer is probably something like “not exactly.” That’s because mutual funds don’t always make their fees easy to understand, despite regulations requiring basic transparency from fund managers and issuers.

“My clients often ask me for plain-English explanations of the mutual fund and money management fees they see on their statements,” says San Francisco-based wealth manager Daniella Rand. “I don’t blame them. For those not steeped in money management, it’s a lot to keep track of.”  “I also find that the transparency of customer statements varies widely from firm to firm,” Rand continues.  “That is why The Rand Group has always spent as many hours as it takes to educate clients on what they are paying while making sure they are comfortable.  We’ve had far less questions since migrating our clients to Merrill Lynch, thanks to their #1 ranked statement industry-wide,” says Rand.  

Rand relies exclusively on “best in class” funds and money-managers to build custom portfolios for her clients, and she makes a point of educating prospective clients about the true cost of their existing investments. She’s not alone; many reputable wealth managers prize transparency and see their roles as, at least in part, educational and explanatory.

Want to know more about how your mutual funds make money? Here’s the skinny on calculating and reducing mutual fund fees.

Load Fees

Load fees come in several forms:

  • Front-end loads, taken when investors purchase shares in the fund
  • Back-end loads, taken when investors sell shares in the fund
  • Constant or level loads, taken at regular intervals during the investor’s hold period

Not all funds charge load fees. Funds that don’t charge loads are known as no-load funds; ask your financial advisor which type is suitable for your needs.

Management Fees

All mutual funds charge management fees, which are the most common (and usually largest) component of the expense ratio. The management fee covers the cost of the fund’s management — literally, its managers’ salaries. A given fund’s exact management fee is a function of how actively managed it is; funds that require constant attention carry higher fees than passively managed funds designed to mirror the performance of a benchmark index.

12b-1 Fees

The 12b-1 fee is the most interesting, and most misunderstood, type of fee in the mutual fund universe. This fee covers the cost of marketing the fund to new investors. Although it’s part of the expense ratio, federal regulation requires its inclusion in the fund prospectus; fund managers can’t conceal it by folding it into the management fee.

It’s worth noting that many mutual fund managers see 12b-1 fees as counterproductive or even harmful to investors’ financial interests, although this is far from a universally shared view and many advisors make compelling cases for the fee’s inclusion in the expense ratio. Still, a significant minority of mutual funds don’t charge 12b-1 fees.

Building a Better Investment Portfolio

Mutual fund managers are no longer free to set whatever price they wish and expect investors to happily pony up. By and large, today’s wealth management clients are far more sophisticated than that. We’re operating in a fee- and expense-conscious environment, and that’s largely a good thing.

By the same token, wealth management clients shouldn’t automatically assume that lower-cost mutual funds or money managers are superior to more expensive alternatives. Yes, it’s true that fees can reduce investment returns over time, but fees aren’t the only determinant of fund performance. In many cases, it makes sense to pay more for higher-quality instruments poised to grow faster than their fees can keep pace.

Of course, these considerations are best discussed with your financial advisory team. Just as no two fund managers are exactly alike, and no two funds contain precisely the same component mix, no two investors are identical. You owe it to yourself to build a better investment portfolio that works for you and no one else.

How To Cut Your Spending

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Do you know what could really help you reach your financial goals? Answer: If you had more money to work with! Cutting your spending is an integral part of your finances.

I’m not saying you need to cut out the things you love (insert Starbucks coffee, avocado toast, etc.). I’m saying you need to splurge on those things wisely, either by reducing their frequency or cutting out something else.

Let’s figure out ways we can cut our spending.

Track spending

How are you supposed to know what to cut spending on if you don’t know where your money is going?

Go back a few months and look for a “pattern.” Where is all of your money going? Bills, housing, transportation, debt payments, etc. are in their own category. Everything else that’s not considered necessary spending (minus groceries) goes in the discretionary spending category. Everything else that’s not considered necessary spending (minus groceries) goes in the discretionary spending category. Keep in mind, things will change if you’re living in an affordable city like Columbus, Ohio, rather than an expensive place like New York City.

This discretionary spending is what you need to pay attention to.

Grocery spending is necessary, but the amount can vary. Figure out what you typically spend, each month, on groceries and determine if that amount can be lowered. More often than not, it can. Just don’t go hungry.

Budget (and budget alternative)

The classic budget lists the necessary expenses (housing, groceries, debt, utilities, savings, and other bills). You then assign dollar amounts for other “unnecessary” expenses (take-out, clothes, etc.).

The dollar amount is what you’d like to spend on that item/category, and not go over. The purpose of a budget is to come to a total expenditure that’s less than your monthly income.

My approach is similar. I list the necessary expenses (excluding debt payments and savings). Just the things I need to pay (housing, streaming, utilities, insurance, and transportation).

Next is my grocery budget. This is a necessary expense, but I try to keep it relatively low. Between my son and I, the limit is $300 per month. Then I list debt payments and savings.

I calculated how much I needed to pay per month to pay off my debt by a certain date. My savings is automated and partitioned.

I have one savings account for emergencies, one for car repairs, one for holiday spending, and one for vacations. Once a week, money is automatically transferred from my checking to each savings account.

The amount of each transfer is less mathematical and is more about comfort. My retirement savings is done right away at the beginning of the month so I don’t have the chance to spend it away.

Whatever remains is mine to do with as I please.

No spend days

Have one day per week or a few days per month where you don’t spend any money.

I’ve seen some people go as far as having a no spend week! Implement these days at your discretion because obviously, you’ll still want to pay your bills and such.

Another cool idea is to restrict paying for certain items during particular times of the year. For example, you don’t buy any clothes during the month of September, or you don’t have any take-out/restaurant food in April.

Coupons/rewards/etc.

With smartphones, applying coupons to your purchases has never been easier. I use coupons.com. You can save which coupons apply to you and they can be scanned at checkout. From your smartphone!

Also, wherever you do your shopping, make sure you are a member/rewards member. There’s usually a sale for members. Excluding paid memberships (like Costco), being a rewards member is free and can save you money.

By the way, it costs money to shop at Costco, but their goods are very reasonably priced. They make their money on the memberships, and they sell all of their goods at cost. That means they sell a product at whatever price they paid to get it in the store.

Use price per unit/item

When you are making a decision about how much of something you need to buy, always use price per unit as your factor. The overall price of something may look less expensive than the bulk item, and it is at the time of purchase, but more often than not, the price per unit is lower for the bulk item.

It’ll cost you more when you check out, but through time, you’ll spend less money.

Quick hacks to cut expenses

  • Negotiate a lower interest rate on your credit cards
  • Balance transfer to 0% introductory APR
  • Personal loan to lower average credit card APR
  • Unplug unused electrical devices
  • Cancel unused subscriptions
  • Reduce entertainment expenses
  • Carpool to work
  • Keep tires properly inflated (better gas mileage)
  • Use LED light bulbs
  • Use a programmable thermostat
  • Lower the temperature on your hot water heater
  • Eat at home more/eat out less
  • Buy generic

Conclusion

Achieving financial success doesn’t have to be difficult and boring, though it does take some discipline. Small rewards are important. Without them, you’ll go crazy!

Cut the fat off of your budget, and you’ll see how much better it feels to make significant progress in your financial life.

How to Save Money on Summer Clothes for the Kids

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Kids grow just as quickly as the seasons change which is why many parents find themselves clothes shopping several times a year. With retail prices continuing to rise, buying comfortable, trendy, items for each of your children can cost you an arm and a leg. As summer is just around the corner, it’s a high probability that you’re wondering how you can shave some of those costs.

There may not be a way to keep your kids the same size for a few months, but you can save money on clothes with these savvy shopping tips below:

Hand Me Downs

Before you head off to the store to shop for kid’s clothes start by clearing out their closets. If you have children of varying ages and sizes, you can give your smaller children clothes previously worn by their older siblings. This would then reduce the number of clothes you need to buy for them.

Clothing Swaps

If you don’t have children of varying ages and sizes, that doesn’t mean you can’t take advantage of hand me downs. Instead, talk with other parents you know and host a clothing swap. This is where everyone would bring their children’s used clothes to your place. Everyone can sift through piles of clothes and grab things that fit their children for the summer.

DIY

If you have the time and resources, making clothes for your kids can save you a lot of money. Of course, you’d need to have a sewing machine, sewing supplies, fabrics, and patterns to put together nice outfits for each of them. If you’d like a little headstart, however, you could also order blank clothing at wholesale prices from vendors like ShirtSpace. Once the clothes arrive you can customize them with decorative prints and designs.

Yard Sales

Want to catch kid’s clothes at a bargain? Then, look no further than your local yard sales. People are constantly purging their homes and now is when they often put out their slightly used items for sale. You can find shorts, t-shirts, tank-tops, and other summer clothing items at a steal of a price. You can find yard sales by driving around your neighborhood, checking at traffic lights for flyers, and checking in the online classifieds.

Alterations

Another method to try when you want to save money on kids clothes is alterations. What some parents find is that their kids grow taller but don’t necessarily get wider. This means that long-sleeve shirts and pants often get a bit too short in the arms and legs. Just a few short alterations and you could turn them into short-sleeve shirts and shorts for the summer.

Flea Markets

Best described as a yard sale on steroids, flea markets are the perfect place to find good deals on summer clothes for kids. There are plenty of vendors with a variety of options to choose from. Whether they’re slightly used products or affordable merchandise purchased at wholesale prices, you can find a few basic outfits to send your kids off to camp with.

Deals and Coupons

Of course, you can’t talk about saving without the old tried and true methods like searching for deals and using coupons. Pay attention to sales papers and advertisements for deals on clothing for children and try to shop during those promotional periods. You should also check online, social media, and in the newspapers for coupons to use online and in stores to lower your purchase prices.

It’s almost summer and your kids will need tons of shorts, shirts, tanks, and other summer wear to get through the season. Though you probably can’t salvage much from the items they wore last year, you can cut back on how much you spend on your next shopping trip. The above suggestions can help you find kid’s summer clothes at a steal of a price. Now, instead of worrying about what they’ll wear this season, you’ll be trying to figuring out how to store everything.

Financial Planning For All Ages

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Don’t you hate it when you Google financial planning tips, and it spits out articles that don’t apply to you? This could be because you’re a different age than the article is directed towards or you’re in a different position.

Well, look no further. I’ve created a rough outline of how you can plan, regardless of your age or situation.

But I’ll be honest with you, a lot of this article will link to resources or previous articles that explain these topics in more detail, but I wanted to create a rough outline of how people in different age groups can plan.

Twenties

Ideally, you want to get a budget started, but nobody likes doing that. Instead, give your money a job. Figure out when you would like to have your debt paid off, then do the math to determine how much per month you need to pay.

List that payment plus housing, transportation, food, and other bills. That total tells you how much MUST go out, everything else is extra to do what you please.

In terms of saving for retirement, you have a lot of time to put money away, but if you start sooner, you’ll have to save less later. 10% of your salary is a good goal. If you can’t get there just yet, save what you can, but try to incrementally increase it over time.

Investment allocation here, as well as in your thirties and forties, should primarily be stocks. Not 100%, but definitely the majority of what you own.

Thirties

The financial plan in your thirties is similar to the one in your twenties. Pay down debt and save for retirement. However, at this point, you probably have more assets and you may have some children as well.

With the cost of tuition constantly rising, saving for their future education costs is important. The 529 is the most popular, and probably the best vehicle available to do just that. (Be advised: 529 plans do involve risk so please talk to your financial advisor prior to investing)

With more assets and children, comes more insurance. Make sure your property and belongings are adequately protected. Additionally, if your children depend on your income for support, life insurance and disability insurance are a must!

Fourties

Same story, different decade. Pay down (off) debt, save for retirement, and make sure you have adequate insurance. (Honestly, the save more, pay down debt, and have insurance is a great catch-all financial plan).

At this point, however, your retirement plans should become more detailed and concrete. Through your twenties and thirties, retirement planning essentially was just saving for retirement.

Now you should think about where you live and what you’ll do. You should also calculate if you’re on track and increase your savings if you’re behind.

Fifties

Hopefully, by the end of this decade, your debt will be mostly paid off, you have a good idea of what retirement will look like, and you’ve determined what needs to be done (if anything) for you to hit your target number.

As you age through your fifties, you should start thinking about adjusting your investment allocation. You don’t have as much time to gain back what you lose during a down market.

Reallocating to a 60/40 or 50/50 (stocks/bonds), depending upon your risk appetite, is a good way to reduce your risk and still participate in a bull market.

Sixties

Where you are at this stage in life depends on a few factors. Have you saved enough to live comfortably in retirement? Do you enjoy what you do? Are you healthy? Plans for Social Security?

If you haven’t saved enough, then you’ll probably have to work a little longer so you can save more. If you like what you do, then why not continue if you are able? If you don’t, consider a career change or (if you’ve saved enough) volunteering for a cause that’s meaningful to you.

If you are healthy, I recommend staying active and social as long as you can. Activity and a healthy social life are two of the three important variables for a fulfilling retirement.

Social Security and when to receive it is a huge decision. Obviously, I’m going to recommend waiting as long as you can so you receive a higher monthly benefit, but there are other things to consider.

Are you healthy? What’s your family history like? Do you have adequate savings/retirement income from other sources?

Health and family history help determine longevity. Poor health and/or poor family history may give you a reason to start receiving earlier.

There are calculators out the web (like this one here) that can help you discern what’s the best strategy for you. That’s to say, how do you optimize your Social Security and other retirement income so you receive the most possible?

Seventies

We’re living longer, healthier lives now, and down the road, the retirement age will probably make its way into the seventies.

If you have to work for the income, you’re not alone. As of 2017, the percentage of the population that are 70 or older and still working was 19%. Up from 11% in 1994. (Source)

My recommendation. Develop an income strategy that will a) afford you to live a somewhat comfortable lifestyle (obviously, cutbacks are necessary if money is tight) and b) help your savings last as long as possible.

There are a variety of calculators out there to help figure this out.

Conclusion

Financial planning is tough. As I said in the beginning, not many like to budget, so it’s important to give your money a job. $100 goes towards emergency savings, $1,000 to retirement, and $250 for debt repayment.

Do this, along with several of the other items I listed (as well as the ones linked below) and you’ll do just fine.

Helpful articles and resources:

How to Choose the Best Divorce Lawyer for Your Needs

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Going through a divorce can be one of the worst experiences a person can have. It isn’t pleasant to separate from someone you loved.

Unfortunately, divorce has become a common experience. 40% to 50% of couples in the United States end their relationships with divorce.

When you go through this process, you need to have someone on your side. You can find divorce lawyers everywhere, so how do you know who to pick?

Below are five tips you can use to find the best divorce lawyer.

1. Know What You Want

Before you settle on a lawyer, figure out what you want during this process. Do you want someone who is going to be supportive during the process, or are you just looking for someone to do the work?

You can find a lot of different personalities, so make sure you talk with your candidates to see if they are a good match for you. The last thing you want is to go through the process with someone you are uncomfortable with.

2. Ask for Referrals

You aren’t the only one who has gone through a divorce. You can probably find someone who has been through the process and worked with a divorce lawyer.

A referral is one of the best ways to figure out if someone is worth hiring. You can learn the good and bad of working with a particular lawyer, and what the process with them is like.

3. Consider How Many Assets You Have

Are you wondering if you will pay more if you have a lot of assets? Unfortunately, this is true. When you are dealing with a more complicated divorce, you are going to run up more bills.

Because of this, you need to be careful when you retain a high asset divorce lawyer.

Make sure you find someone that doesn’t go through unneeded motions that run up your costs. You may end up paying much more money than you need to.

4. Read All the Fine Print

Someone may sound like a great fit when you talk to them. But when you go to sign the contract for a retainer, there might be new details in the fine print.

Before you commit to a lawyer, read through any contracts all the way through. This way, there are no surprises that cost you more money.

5. Figure out How Hands on They Are

Every hour your lawyer spends on your case can cost you money. Because of this, some lawyers will suggest you handle some things yourself so you can save money.

Figure out what steps of the process you are willing to take on yourself. If you want to save money, you can hire someone that is more hands off.

But if you aren’t worried about the cost, you can hire someone more hands on to deal with the entire process.

Make Sure You Hire the Best Divorce Lawyer

Divorces usually aren’t a fun process. You need to make sure you find the best divorce lawyer so you can minimize headaches and get through everything without problems.

Make sure you do your research so you can find the right choice.

Do you need to get your finances prepared for the process? Head over to our blog to read our finance tips so you can get things ready.

How to Seek Funds When Bank Says NO to You

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Source

If you are a small business owner whose bank loan application just got rejected, don’t lose heart because you’ll eventually find a way to grow your business. Before you delve into the solution, look through various reasons why bank did not approve your application.

There are many reasons why banks are reluctant to lend to smaller businesses. These include:

  • Unconvincing business plan – many new businesses lack a detailed business plan to support their loan application which gives the impression that you haven’t given your business idea proper thought and research.
  • Little or no record of success – banks want to see a history of strong market position and financial statements which is something new or smaller businesses cannot offer.
  • Lack of collateral – collateral acts as security on the loan and if you don’t have any, the bank has no assets to sell to recover the loan amount.
  • Cash flow problems – due to limited revenues in comparison to costs, small businesses often have cash flow problems, so they’re likely to default on interest payments.

Source

Even if you are able to secure a bank loan, the interest rates offered to small businesses tend to be significantly higher than those for larger businesses as it is a riskier investment for the bank – this is evident in the graph above.

Since there are alternative finance options available, you don’t need to get disappointed.

  1. SBA Loans

Getting an SBA loan is an excellent funding option for small businesses. These loans are provided under a program initiated by the Small Business Administration.

Lenders (usually banks), are encouraged to provide loans to smaller businesses at reasonably low interest rates for any business purpose, ranging from $5,000-$5,000,000. SBA itself does not lend money – it provides a guarantee to pay up to 80% of the amount, in case the borrower defaults.

  1. Venture capitalists

If you have a business idea that has growth potential, you can seek out venture capitalists, willing to invest in your business. These are investors who fund risky business ventures in return for an equity share in the company. Not only do they bring in money but also their expertise, which can be very useful for a small business with little experience of the industry.

  1. Partner financing

If you do not mind partnering with another business in your industry or with one that sells related products, partner financing is a viable option. It is beneficial for both parties – the partner provides funds in return for either a share of your sales or special rights of your product or its distribution.

If your partner is a larger business, you can receive other benefits from the collaboration such as, reaching out to their customers to expand your own market.

  1. Crowd funding

If you require a small loan for a creative project such as, a documentary or book launch, there are several crowd funding sites where you can put up your case and ask the general public for contributions.

Small amounts of funding from a large number of people adds up to be massive, helping you achieve your goals. You can offer free samples of your products as a token of appreciation in return.

  1. Home equity loan

Seeking a business loan by using their home as collateral is also an option utilized by many business owners. Once they are able to offer personal guarantee, they secure sufficient funds for their business. However, the option is risky as you put your home on the line, in case of a default.

The bottom line

To sum up, there are many options for smaller businesses to raise capital so they do not just have to rely on banks anymore. Look into the different financing options available in the market and choose the one that best suits your needs.

Retirement, It’s More Than Money

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When it comes to retirement, most people think about money. Don’t get me wrong, the financials are important, but it’s not the only thing to consider.

Sure, a well-funded retirement gives you utility and flexibility, but that only goes so far. You have to think about what you’re going to do, where you’re going to live, and how those golden years will be spent.

In this article, we’re going to dive into the non-finance side of retirement.

Where will you live?

One of the most important considerations is where you’re going to live, and there are many factors to take into account.

Are you/do you need to downsize?

If your children are out of the house, downsizing may cross your mind. The time and energy needed to maintain a house are significant. Moving to a smaller place could be a good move.

You’d spend less time cleaning, and you would use less energy keeping your home at its desired temperature.

Move to another state?

There are many states around the country that are go-to destinations for retirees. Do you know why? Generally speaking, the climate is better (no snow or cold winters to deal with), and there are no state income taxes.

Moving to a different state is a big move, so you need to consider all factors as to whether it’s the right move for you.

Things to consider:

  1. Taxes
  2. Climate
  3. Activities
  4. Family

Another Country?

There are several countries around the world with the cost of living metrics much lower than the United States.

Here’s an article by U.S. World News that lists the most desired countries for retirees. Some of the factors include the cost of living, climate, and health care.

What will you do?

Are you going to work, volunteer, or play golf? A lot of people say that when they retired, they were busier than when they were working.

What you do in retirement will play a significant role as to how fulfilling your retirement is. It can also play a role when deciding where you want to live.

If you want to spend as much time as you can with your grandkids, then you’ll probably want to stay close to them.

Whatever you decide to do, you have to make sure it fulfills four things.

  1. The activity has to make you use your mind. You need to stay sharp.
  2. The activity needs to create a community, of sorts, around you. Having a network of people you talk to and hang with is important.
  3. The activity needs to keep you active.
  4. The activity needs to give you a sense of purpose. Checking those first three things is awesome! That’s a great start! I would recommend you do something that benefits others. Whether it’s your community or people in need.

The most important factor in retirement, for current retirees, is their health. Keeping active, social, and mentally stimulated is essential for a long and happy retirement.

Conclusion

When we talk about retirement, finances play a very important part, but it absolutely should not be the only thing you think about.

What you do, where you do it, and who you do it with are all incredibly important details to keep in mind.

If you’d like to learn more about anything I talked about, I’ve linked to several resources below.

Should I Downsize?

When Should You Retire?

Income During Retirement

Retiring Out Of State

Retiring Abroad

What You Need To Know About Retirement Savings