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Understanding Healthcare Costs in Retirement

What to expect to spend on health care in retirement is the big question for future retirees. The reality is there is no simple answer. By understanding estimates of Medicare premiums and other related expenses, as well as some of the ways costs can be reduced, you can start to put some of the pieces of the health care puzzle together. Unpacking Average Healthcare Cost Estimates Several different estimates related to what people can expect to spend on healthcare costs in retirement are out there. One of the most commonly quoted figures is $280,000 from a Fidelity study. Equally staggering is the fact that Fidelity found this number represents a 75 percent increase since they first did a study of retirement health care costs in 2002. The $280,000 figure is based on an average 65-year-old couple. Women can expect to spend $147,000 and men can expect $133,000 on health care…

Are You Ready for Home Ownership?

Maybe you still consider home ownership the fastest path to the “American dream.” Maybe you’re fed up with increasing rent rates and think paying a mortgage every month could actually be cheaper. Maybe you think buying a house is the best way to get enough room for your growing family or your best (furry) friend. There are many wonderful reasons to take on home ownership, but just as many to avoid it … at least for now. Trying to decide whether you’re ready to buy a house? If any of these seven bullets apply to you, you should wait before putting in an offer: You Don’t Have Enough Saved for a Down Payment Technically you can purchase a home with much less than the suggested 20 percent down. But you shouldn’t. Primarily because a down payment of less than 20 percent requires the buyer to also pay private mortgage insurance,…

10 Thoughts About Money From Favorite TV and Movie Dads

For better or for worse, many of our attitudes about money come from our parents. And no matter their financial situation, profession, age, or number of kids, dads around the world have managed to spout the same cliché “dad-isms” about money to their families: “Money doesn’t grow on trees.” “Do you think I’m made of money?” “The barcode isn’t scanning? I think that means it’s free!” “You get what you pay for.” “Dad, I’m broke.” “Hi Broke, I’m Dad!” Of course, the luckiest of us have gotten some real pearls of financial wisdom passed down from our fathers … and maybe the rest of us have gotten a real-life example of what not to do that we carry with us throughout our lives. In honor of Father’s Day, we’ve rounded up 10 thoughts about money from some of our favorite TV and movie dads, and extrapolated ways that you can…

Money Moves to Help Millennials Save

A 2016 survey of 7,000 Americans found that 34 percent have nothing saved. When it comes to money and millennials in particular, though, things get a little confusing. While one study found a small percentage of millennials have already stashed away $100,000, another found 46 percent of young millennials have nothing saved. If you’re in the “no savings” camp, how do you get started when it feels like you don’t have a penny to spare? Set a Small Goal First things first. All savers have to start somewhere and sometime. It is all too easy to quit before you even start. If you are asking yourself how to start saving, congratulate yourself for taking the first step. Then create a small goal that will set you up for early success. If you saved no money last week, set a goal to put aside $5 or $10 this week. Set up…

10 Money Tips for New Grads

If you’re a new grad who’s feeling a little exhilarated, a little worn out and a little terrified about finding a job that pays the bills … take a deep breath. The great thing about this stage of your life is that while you have room to take your time, make mistakes and figure out what you want, you are also young enough to do a few key things right that will set you ahead of the crowd for years to come. Especially when it comes to money. Looking for financial advice after graduation? Here are ten tips to keep in mind: Follow Your Dreams … but Don’t Wait Around for Your Dream Job You’re smart, enthusiastic and ready to change the world – surely an employer will see that and offer you a job that pays well, has lots of vacation time and lets you make big decisions. Right?…

How to Face Off With Debt Before Retirement

As you enter your 50s and 60s, hopefully you find yourself coming face-to-face with retirement. You may also find yourself still in debt. You are not alone. In fact, nearly 70 percent of people over 55 are in debt. To really make the most of your retirement years, it is essential you do whatever you can to ditch your debt now. Still, it can be overwhelming to even know where to begin. Following these tips can help you pay down your debt before retirement. Reconsider Housing No one is saying you have to hole up in the wilderness or live in a tiny house. But what you do need to do is think about where you live and why. Give particular consideration to housing extras like property taxes and homeowners insurance. Typically, housing is the biggest expense in a budget, but people often only think mortgage payments when it comes…

Saving: It’s a State of Mind

You probably hear a lot about saving. There’s saving for a first home, for college, for retirement and, of course, “saving for a rainy day.” All of that socking away of funds we’re being urged to do can seem daunting, especially when statistics show Americans are only putting aside about $3 out of every $100. As with so many things in life, getting your spending and saving in order has a lot to do with attitude, with your mindset about money. One way to help take some of the worry out of it all is to take immediate action about the spending in your life you can control. You’ve heard, of course, about the price difference between stopping for coffee on the way to work and making it at home. And you certainly don’t need us to tell you how much you’d save without a cable bill; if you have…

Teaching Kids About Money

A basic financial life skill is knowing how to live within your means – something that schools don’t teach. The live-now-pay-later lifestyle is alluring, with credit card companies targeting adults of all ages, starting with college students. It’s all too easy for young adults to max out several cards and paying the minimum each month until they’re in so deep they have no choice but to file for bankruptcy. Perhaps if parents can teach their children, starting at a young age, how to successfully manage money, the danger of living beyond their means could be prevented. Here are financial lessons you can teach your children to help them form sound money management skills they can carry into adulthood: Preschool, Ages 3 to 5: Sometimes You Have to Wait Desires of preschool kids are often easily granted and parents don’t think twice about grabbing that coveted toy as they wheel their…

How You Can Stop Living Paycheck to Paycheck

The statistics are sobering: 62 percent of Americans reported having less than $1,000 in savings. A full 20 percent have no savings accounts at all. And 78 percent of full-time workers indicate they are living paycheck to paycheck. Living paycheck to paycheck is a frustrating reality that many Americans feel trapped by, but it doesn’t have to last a lifetime. Analyzing your current financial situation, tracking your spending and taking small steps right now, it is possible to break the paycheck-to-paycheck cycle. Tally Your Debts One of the biggest reasons 71 percent of American workers find themselves trapped in the paycheck to paycheck rut is debt. When a portion of your paycheck is already earmarked for something else, it is hard to get ahead. That is why it is essential to understand how much debt you owe. To tally debt properly, calculate the running balance on every single credit card,…

New Year's Resolutions: Money Edition

Less than half of New Year’s Resolutions last more than six months, even though most of them are designed to be longer-term improvements. Financial resolutions may fare even worse since it seems like there’s always some bill waiting to be paid, some upcharge that’s impossible to avoid, or some unexpected expense. But that doesn’t mean they’re not worth setting – or that they’re impossible to keep. Unlike some financial advice that’s specific only to certain age groups, income levels or life stages, these small financial resolutions are attainable, impactful and nearly universal: Download an Automated Savings App Apps like Acorns and Digit, pull small sums of money from your checking account on a regular basis and save them electronically. You probably aren’t going to get you rich this way, but you get in the habit of saving if you aren’t already. And it’s a great way to start an emergency…

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