Retirement Finances http://www.retirementfinances.com Finances during retirement Mon, 28 Nov 2011 17:33:50 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 What kind of Checking Account is Right for your Retirement? http://www.retirementfinances.com/retirement-budget/what-kind-of-checking-account-is-right-for-your-retirement http://www.retirementfinances.com/retirement-budget/what-kind-of-checking-account-is-right-for-your-retirement#comments Mon, 28 Nov 2011 17:33:50 +0000 admin http://www.retirementfinances.com/?p=2158

In today's local banking environment, which is influenced by global economic demands, financial decisions have never seemed so complicated. In an economy that seems to be on a roller coaster ride without end, each person needs to look at their bank to see if they are getting the services they need. Your first step is to decide what kind of financial services you need. For those seeking simplicity that doesn't sacrifice opportunities to save money and build wealth, choosing the right checking account is an imperative.

What checking account is right for you?

Financial needs and tools vary from person to person as well as from bank to bank. Just as one retirement portfolio doesn't fit every person neither does one type of checking account fit everyone needs; "One size fits all" is not a sound or viable choice in today's economy. Banks understand the need for variety and offer their customers many different choices and varieties of financial tools to choose from. What should you be looking for? Some checking accounts require a minimum balance and in return you receive several free services such as free checks, lower fees on ATM services or more personalized services. With those kinds of checking accounts you need to weigh that value of the services against any loss of potential income from interest that could be earned if you had your money in a different type of account. Consumers will notice that with each reduction in the minimum balance of a service there is a corresponding reduction in services received for free. Your task is to find an account that balances the minimum balance with the services that you want or need. Another item to keep in mind is the cost to you in fees that will be charged if you do not maintain the minimum balance or if you exceed the number of set transactions that you may perform using either on-line or ATM services. It is usually very easy for a financial institution to tell you what you will receive for free; however they tend not to brag about the fees you might incur for straying outside of the account you have. Some banks may provide an unsecured line of credit attached to a checking account to provide a safety net of available reserves to keep you from having checks returned. Although the concept sounds great you need to know up-front what the fees will cost you for this convenience. Is it worth leaving some money in a savings account and being proactive in monitoring your account or using the line of credit and spending beyond your means instead of watching your money more closely? Do you have to pay extra to receive a paper statement? Do they have on-line access so you can keep track of your account between statements? Can you access these services through a smart phone or iPhone? What kind of security do they have for these services? Long gone are the days when you could walk into a bank and set-up a checking account without doing your research. With so many options in today's financial intuitions a smart consumer should take the time to research and "bank shop" before setting up their bank accounts. A small investment in time and research may provide huge dividends and savings to the proactive consumer. Article Source: http://EzineArticles.com/6681909

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In today's local banking environment, which is influenced by global economic demands, financial decisions have never seemed so complicated. In an economy that seems to be on a roller coaster ride without end, each person needs to look at their bank to see if they are getting the services they need. Your first step is to decide what kind of financial services you need. For those seeking simplicity that doesn't sacrifice opportunities to save money and build wealth, choosing the right checking account is an imperative.

What checking account is right for you?

Financial needs and tools vary from person to person as well as from bank to bank. Just as one retirement portfolio doesn't fit every person neither does one type of checking account fit everyone needs; "One size fits all" is not a sound or viable choice in today's economy. Banks understand the need for variety and offer their customers many different choices and varieties of financial tools to choose from. What should you be looking for? Some checking accounts require a minimum balance and in return you receive several free services such as free checks, lower fees on ATM services or more personalized services. With those kinds of checking accounts you need to weigh that value of the services against any loss of potential income from interest that could be earned if you had your money in a different type of account. Consumers will notice that with each reduction in the minimum balance of a service there is a corresponding reduction in services received for free. Your task is to find an account that balances the minimum balance with the services that you want or need. Another item to keep in mind is the cost to you in fees that will be charged if you do not maintain the minimum balance or if you exceed the number of set transactions that you may perform using either on-line or ATM services. It is usually very easy for a financial institution to tell you what you will receive for free; however they tend not to brag about the fees you might incur for straying outside of the account you have. Some banks may provide an unsecured line of credit attached to a checking account to provide a safety net of available reserves to keep you from having checks returned. Although the concept sounds great you need to know up-front what the fees will cost you for this convenience. Is it worth leaving some money in a savings account and being proactive in monitoring your account or using the line of credit and spending beyond your means instead of watching your money more closely? Do you have to pay extra to receive a paper statement? Do they have on-line access so you can keep track of your account between statements? Can you access these services through a smart phone or iPhone? What kind of security do they have for these services? Long gone are the days when you could walk into a bank and set-up a checking account without doing your research. With so many options in today's financial intuitions a smart consumer should take the time to research and "bank shop" before setting up their bank accounts. A small investment in time and research may provide huge dividends and savings to the proactive consumer. Article Source: http://EzineArticles.com/6681909

]]> http://www.retirementfinances.com/retirement-budget/what-kind-of-checking-account-is-right-for-your-retirement/feed 0 7 Types of Retirement Insurance You Don’t Need http://www.retirementfinances.com/retirement-insurance/7-types-of-insurance-you-don%e2%80%99t-need-in-retirement http://www.retirementfinances.com/retirement-insurance/7-types-of-insurance-you-don%e2%80%99t-need-in-retirement#comments Thu, 24 Nov 2011 15:21:33 +0000 Melissa Rubin http://www.retirementfinances.com/?p=730

Retirement insurance safeguards you against catastrophic loss, but it can be expensive – and in some cases downright worthless. There’s no need to spend your retirement income on premiums when you could be putting that into your retirement savings. If you’re already covered by good homeowner’s, automobile, health, disability and life insurance policies, you can do without the following coverages.

  • Mortgage life insurance.This policy is designed to pay off your mortgage if you die. The downside is that it’s as much as five times more expensive than comparable term life insurance. Your current life insurance death benefit can also serve the same purpose.
  • Credit card loss protection. Federal law limits your loss to $50 per card without any type of personal protection policy, so there’s no need to spend that $7 to $15 a month. Instead, secure your credit-card numbers and report any lost or stolen cards immediately.
  • Car rental insurance. Check with your agent to see if your automobile policy covers any damages or injuries when you drive a rental car. Some credit card companies offer the same type of protection. This can save you $8 to $11 a day.
  • Flight insurance. This is also known as Accidental Death and Dismemberment (AD&D) insurance. It provides coverage while you are flying on a commercial airline. Your life insurance and health insurance should protect you if you were to die or become injured in a plane crash.
  • Cancer insurance. These high-cost plans – annual premiums range from $200 to $3,000 – pay for cancer expenses. Pass on this since your existing health insurance should already include cancer care.If you have Medicare and want more insurance, a comprehensive Medicare supplement policy is what you need.
  • Involuntary unemployment insurance. This policy makes minimum payments on your credit card or car loan for six to 12 months if you lose your job. At a cost of 70 cents per $100 of your credit card balance, you’d be better off using that money to help fund three to six months of emergency savings.
  • Identity-theft insurance. This reimburses crime victims for the cost of restoring their identity and repairing their credit reports. However, policies can cost $180 a year for up to $25,000 in coverage. A better option: Save your money and keep a close eye on your credit reports.
A life insurance policy, on the other hand, is one of the most valuable ways you can safeguard your retirement savings and invest in your financial future. If you don’t already have a life insurance policy, here are four key reasons to consider one:
  1. Income replacement - Proceeds from a life insurance policy can provide for your loved ones when you’re gone.
  2. Pay off debts - Life insurance death benefits can pay for burial costs, probate costs, credit card debts and medical expenses not covered by health insurance. It can also be used to pay off the mortgage, supplement retirement savings and help pay college tuition.
  3. Estate planning - The proceeds of a life insurance policy can pay estate taxes so that your heirs will not have to liquidate other assets.
  4. Charitable contributions - Designate some of the proceeds from your life insurance policy to go to a favorite charity.
Making sure you spend your money wisely for insurance protection can help you make the most of your retirement budget for years to come.

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Retirement insurance safeguards you against catastrophic loss, but it can be expensive – and in some cases downright worthless. There’s no need to spend your retirement income on premiums when you could be putting that into your retirement savings. If you’re already covered by good homeowner’s, automobile, health, disability and life insurance policies, you can do without the following coverages.

  • Mortgage life insurance.This policy is designed to pay off your mortgage if you die. The downside is that it’s as much as five times more expensive than comparable term life insurance. Your current life insurance death benefit can also serve the same purpose.
  • Credit card loss protection. Federal law limits your loss to $50 per card without any type of personal protection policy, so there’s no need to spend that $7 to $15 a month. Instead, secure your credit-card numbers and report any lost or stolen cards immediately.
  • Car rental insurance. Check with your agent to see if your automobile policy covers any damages or injuries when you drive a rental car. Some credit card companies offer the same type of protection. This can save you $8 to $11 a day.
  • Flight insurance. This is also known as Accidental Death and Dismemberment (AD&D) insurance. It provides coverage while you are flying on a commercial airline. Your life insurance and health insurance should protect you if you were to die or become injured in a plane crash.
  • Cancer insurance. These high-cost plans – annual premiums range from $200 to $3,000 – pay for cancer expenses. Pass on this since your existing health insurance should already include cancer care.If you have Medicare and want more insurance, a comprehensive Medicare supplement policy is what you need.
  • Involuntary unemployment insurance. This policy makes minimum payments on your credit card or car loan for six to 12 months if you lose your job. At a cost of 70 cents per $100 of your credit card balance, you’d be better off using that money to help fund three to six months of emergency savings.
  • Identity-theft insurance. This reimburses crime victims for the cost of restoring their identity and repairing their credit reports. However, policies can cost $180 a year for up to $25,000 in coverage. A better option: Save your money and keep a close eye on your credit reports.
A life insurance policy, on the other hand, is one of the most valuable ways you can safeguard your retirement savings and invest in your financial future. If you don’t already have a life insurance policy, here are four key reasons to consider one:
  1. Income replacement - Proceeds from a life insurance policy can provide for your loved ones when you’re gone.
  2. Pay off debts - Life insurance death benefits can pay for burial costs, probate costs, credit card debts and medical expenses not covered by health insurance. It can also be used to pay off the mortgage, supplement retirement savings and help pay college tuition.
  3. Estate planning - The proceeds of a life insurance policy can pay estate taxes so that your heirs will not have to liquidate other assets.
  4. Charitable contributions - Designate some of the proceeds from your life insurance policy to go to a favorite charity.
Making sure you spend your money wisely for insurance protection can help you make the most of your retirement budget for years to come.

]]> http://www.retirementfinances.com/retirement-insurance/7-types-of-insurance-you-don%e2%80%99t-need-in-retirement/feed 0 Retirement Spending Led to Debt? You have Options. http://www.retirementfinances.com/retirement-spending/retirement-spending-led-to-debt-you-have-options http://www.retirementfinances.com/retirement-spending/retirement-spending-led-to-debt-you-have-options#comments Mon, 21 Nov 2011 18:50:26 +0000 Melissa Rubin http://www.retirementfinances.com/?p=198

It’s finally your retirement; a time to relax and do what you want. The perfect time to get in some retirement travel to every corner of the world, visit family and long lost friends, spend time golfing, laughing and cherishing each and every new memory. Along the way, however, all your spending in retirement on trips and “making memories” has led to debt. Debt is a serious issue that is attaching itself to more and more Americans. The boomer generation especially has to worry about debt because their retirement budget and retirement spending won’t go as far as it used to. Debt is usually caused due to credit, medical bills and/or personal loans. Add to that the addition of raising interest rates from institutions like banks and credit card companies and it’s hard to fathom not going into debt in retirement. If your retirement spending has gotten out of control, there are options to help you get out of debt. A lot of spending in retirement abuse comes from the inability to adapt to your new retirement income. If you can realize this is a problem and your debt isn’t too bad quite yet, you might be able to fix the problem yourself. However, do not make the common mistakes many people make when trying to fix their retirement spending debt:
  • Do not just pay the minimum payments on your debt, or on your credit card statements. Using up too much of your allotted credit on your credit cards can damage your credit score. Paying the minimum can actually increase the amount of debt you need to pay off due to the interest accumulating.
  • Beware of the damage relying on friends and family for monetary support can do to your relationships.
  • When looking for help on your debt, be weary of counselors who ask for payments before the work is done. Also, do not trust companies or credit counselors who have high fees and don’t deliver on their promises.
  • Don’t fall into the trap of taking out a new high-interest loan to pay off lower interest rate loans. Having one payment might seem easier at the time, but your payments will be more, as will the total due to the high amount of interest you’re accumulating.
  • Declaring bankruptcy is a last resort. Many times people do not realize a settlement would be a better fit for their financial troubles.
Keep these issues in mind when you are trying to decide what to do to settle your retirement debt. As the last bullet specified, one of the biggest mistake people take is they file for bankruptcy when it is unnecessary.

Bankruptcy vs. Debt Settlement

Bankruptcy is only for those who are in dire situations and can handle the severe long term implications. Retirement spending usually does not get as bad as for people to declare bankruptcy. If your struggles stem from falling behind on minimum payments or have developed financial hardships, debt settlement is the better alternative. Debt settlement is the process of negotiating with your creditors through a debt settlement company to get the credit company to forgive a portion of your debt. Yes, your debt from retirement spending can actually melt away—given the right incentives. The amount you can actually afford in monthly payments is discussed between your credit companies and the debt settlement companies, deciding on an amount based on the total amount you owe. This process works because the debt settlement companies have been working with credit companies for decades and each day help thousands of people get out of retirement debt. Your spend in retirement can be brought down to a reasonable amount. Do not be afraid to enjoy your retirement, but be weary of getting into too much debt. Know there are options for you if you do in fact get into debt, but the best thing is not even come close by working on your retirement budget and knowing your retirement income.

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It’s finally your retirement; a time to relax and do what you want. The perfect time to get in some retirement travel to every corner of the world, visit family and long lost friends, spend time golfing, laughing and cherishing each and every new memory. Along the way, however, all your spending in retirement on trips and “making memories” has led to debt. Debt is a serious issue that is attaching itself to more and more Americans. The boomer generation especially has to worry about debt because their retirement budget and retirement spending won’t go as far as it used to. Debt is usually caused due to credit, medical bills and/or personal loans. Add to that the addition of raising interest rates from institutions like banks and credit card companies and it’s hard to fathom not going into debt in retirement. If your retirement spending has gotten out of control, there are options to help you get out of debt. A lot of spending in retirement abuse comes from the inability to adapt to your new retirement income. If you can realize this is a problem and your debt isn’t too bad quite yet, you might be able to fix the problem yourself. However, do not make the common mistakes many people make when trying to fix their retirement spending debt:
  • Do not just pay the minimum payments on your debt, or on your credit card statements. Using up too much of your allotted credit on your credit cards can damage your credit score. Paying the minimum can actually increase the amount of debt you need to pay off due to the interest accumulating.
  • Beware of the damage relying on friends and family for monetary support can do to your relationships.
  • When looking for help on your debt, be weary of counselors who ask for payments before the work is done. Also, do not trust companies or credit counselors who have high fees and don’t deliver on their promises.
  • Don’t fall into the trap of taking out a new high-interest loan to pay off lower interest rate loans. Having one payment might seem easier at the time, but your payments will be more, as will the total due to the high amount of interest you’re accumulating.
  • Declaring bankruptcy is a last resort. Many times people do not realize a settlement would be a better fit for their financial troubles.
Keep these issues in mind when you are trying to decide what to do to settle your retirement debt. As the last bullet specified, one of the biggest mistake people take is they file for bankruptcy when it is unnecessary.

Bankruptcy vs. Debt Settlement

Bankruptcy is only for those who are in dire situations and can handle the severe long term implications. Retirement spending usually does not get as bad as for people to declare bankruptcy. If your struggles stem from falling behind on minimum payments or have developed financial hardships, debt settlement is the better alternative. Debt settlement is the process of negotiating with your creditors through a debt settlement company to get the credit company to forgive a portion of your debt. Yes, your debt from retirement spending can actually melt away—given the right incentives. The amount you can actually afford in monthly payments is discussed between your credit companies and the debt settlement companies, deciding on an amount based on the total amount you owe. This process works because the debt settlement companies have been working with credit companies for decades and each day help thousands of people get out of retirement debt. Your spend in retirement can be brought down to a reasonable amount. Do not be afraid to enjoy your retirement, but be weary of getting into too much debt. Know there are options for you if you do in fact get into debt, but the best thing is not even come close by working on your retirement budget and knowing your retirement income.

]]> http://www.retirementfinances.com/retirement-spending/retirement-spending-led-to-debt-you-have-options/feed 0 10 Key Sources for Retirement Income http://www.retirementfinances.com/retirement-income/10-key-sources-for-retirement-income http://www.retirementfinances.com/retirement-income/10-key-sources-for-retirement-income#comments Thu, 17 Nov 2011 20:03:19 +0000 Melissa Rubin http://www.retirementfinances.com/?p=1657

While you were still in the workforce, you could count on your paycheck regularly hitting your bank account every two weeks. Now that you’re retired, a reliable source of retirement income isn’t always guaranteed. U.S. News & World Report found that the following are the 10 largest sources for retirement income for retirees today.

  • Retirement investing. The survey also found that nearly all Americans expect to fund their retirement income with a 401(k), IRA or retirement mutual funds. However, only 22% of current retirees believe that withdrawals from their retirement accounts are a primary source of retirement income.
  • Pensions. These seem to be pretty much a thing of the past. Today, fewer companies are offering pensions and those just entering the workforce may receive smaller payouts than long-term employees. About 37% of current retirees receive retirement income from a pension.
  • Savings accounts and CDs. The Gallup poll reports that 13% of current retirees use the money in their retirement savings accounts and certificates of deposit to pay for expenses, while 22% of current employees hope to tap into their savings as a source of retirement income. Investment advisors recommend that retirees keep between two and four years’ worth of retirement income outside of the stock market to protect against market downturns.
  • Home equity. Given the state of the real estate market, using your home equity to supplement your retirement income isn’t the best idea. The Gallup survey found that only 20% of today’s retirees plan on using this tactic. If you are in need of additional retirement income, a reverse mortgage can be an option, but proceed with caution.
  • Supplemental retirement income. While only 4% of retirees in the Gallup survey said they currently work part-time, 18% of employees think they will work part time in retirement. To learn more about working in retirement check out RetirementJobSite.com.
  • Inheritance. Expecting a windfall to fund your retirement can be risky at best. Your relative may change his or her beneficiary forms or live longer than expected and need to use those funds. Only 3% of current retirees surveyed said that an inheritance is a source of retirement income.
  • Annuities or insurance. An annuity is a financial product that guarantees you will receive payments for a specified period of time – or even a lifetime. Only 8% of those responding to the Gallup survey note that annuity payments or insurance plans will become a large part of their retirement income. As always, consult your financial advisor before purchasing any insurance or annuity policy to see if it is appropriate for your situation.
  • Rental income. If you own property, you may be looking toward rents to help provide retirement income. Nearly 6% of working Americans expect to receive income from rental properties. Of course, you shouldn’t count on rental income as the main source of your retirement finances, it can help provide a steady stream of retirement income.
Retirement – like any other time in life – is not always easy. But if you plan on several sources of retirement income, you can have a fulfilling life in retirement.

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While you were still in the workforce, you could count on your paycheck regularly hitting your bank account every two weeks. Now that you’re retired, a reliable source of retirement income isn’t always guaranteed. U.S. News & World Report found that the following are the 10 largest sources for retirement income for retirees today.

  • Retirement investing. The survey also found that nearly all Americans expect to fund their retirement income with a 401(k), IRA or retirement mutual funds. However, only 22% of current retirees believe that withdrawals from their retirement accounts are a primary source of retirement income.
  • Pensions. These seem to be pretty much a thing of the past. Today, fewer companies are offering pensions and those just entering the workforce may receive smaller payouts than long-term employees. About 37% of current retirees receive retirement income from a pension.
  • Savings accounts and CDs. The Gallup poll reports that 13% of current retirees use the money in their retirement savings accounts and certificates of deposit to pay for expenses, while 22% of current employees hope to tap into their savings as a source of retirement income. Investment advisors recommend that retirees keep between two and four years’ worth of retirement income outside of the stock market to protect against market downturns.
  • Home equity. Given the state of the real estate market, using your home equity to supplement your retirement income isn’t the best idea. The Gallup survey found that only 20% of today’s retirees plan on using this tactic. If you are in need of additional retirement income, a reverse mortgage can be an option, but proceed with caution.
  • Supplemental retirement income. While only 4% of retirees in the Gallup survey said they currently work part-time, 18% of employees think they will work part time in retirement. To learn more about working in retirement check out RetirementJobSite.com.
  • Inheritance. Expecting a windfall to fund your retirement can be risky at best. Your relative may change his or her beneficiary forms or live longer than expected and need to use those funds. Only 3% of current retirees surveyed said that an inheritance is a source of retirement income.
  • Annuities or insurance. An annuity is a financial product that guarantees you will receive payments for a specified period of time – or even a lifetime. Only 8% of those responding to the Gallup survey note that annuity payments or insurance plans will become a large part of their retirement income. As always, consult your financial advisor before purchasing any insurance or annuity policy to see if it is appropriate for your situation.
  • Rental income. If you own property, you may be looking toward rents to help provide retirement income. Nearly 6% of working Americans expect to receive income from rental properties. Of course, you shouldn’t count on rental income as the main source of your retirement finances, it can help provide a steady stream of retirement income.
Retirement – like any other time in life – is not always easy. But if you plan on several sources of retirement income, you can have a fulfilling life in retirement.

]]> http://www.retirementfinances.com/retirement-income/10-key-sources-for-retirement-income/feed 0 Banks Across the Country Rising Hidden Costs http://www.retirementfinances.com/retirement-budget/retirement-savings/banks-across-the-country-rising-hidden-costs http://www.retirementfinances.com/retirement-budget/retirement-savings/banks-across-the-country-rising-hidden-costs#comments Mon, 14 Nov 2011 18:39:30 +0000 Melissa Rubin http://www.retirementfinances.com/?p=2150

Although Bank of America has been in the news a lot recently for hidden and/or outrageous usage fees, other banks around the country are just as or even more guilty of giving your retirement savings a run for its money with rising hidden fees! Hidden fees are popping up in banks all over the country. Here are just a few of the fees some of the more prominent banks are issuing:

  • Bank of America is issuing a $5 fee for a new debit card - $20 for rush delivery
  • Although Bank of America abandoned their monthly $5 debit card use charge, they increased their cost of a basic MyAccess checking account from $8.95 to $12/month.
  • Citigroup’s monthly checking account charge increased from $8/month to $10/month.
  • U.S. Bankcorp is charging 50 cents per deposit when using your mobile device to deposit funds into an account
  • In December TD Bank is implementing a $15 charge for each incoming domestic payment of cash being wired into their accounts
  • Chase now charges a monthly fee of $12 for its standard checking account where many depositors used to pay no fee at all!
This quiet creep of new charges and higher fees for everything from cash withdrawals at ATMs to wire payments, paper statements and in some cases, even the overdraft charges that lawmakers hoped to ratchet down is causing a lot of outrage from bank customers. What is more, banks are raising minimum account balances and adding other new requirements so that it is harder for customers to qualify for fee waivers.

Why all the new charges?

Banks are not trying to be the evil corporations some try to make them out to be. Unforutnately, they’re just trying to make a profit in the same kind of range they did before laws were passed that forbade lucrative overdraft charges and lowering debit card swipe fees. Those new laws prohibiting the outrageous fees some banks charged their customers actually makes $12 billion of banks annual income disappear! To make up for the loss banks would need to recoup, on average, between $15-20/month from each despositor, according to an analysis of the interest rate and regulatory changes on checking accounts by Oliver Wyman, a financial consulting firm.

Trying to Fix Fees…

Some policy makers are already fed up. This month, two Democratic senators, Richard J. Durbin of Illinois and Jack Reed of Rhode Island, urged the Consumer Financial Protection Bureau to adopt a more consumer-friendly disclosure form, akin to the nutrition label on food packaging, for all the fees attached to a checking account. “Simply put, consumers have had enough of banks that try to sneak fees past them that are hidden in fine print or imposed with no notice at all,” they wrote. Last year, a Pew Charitable Trusts study found that bank customers could potentially incur 49 different fees on a typical checking account.

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Although Bank of America has been in the news a lot recently for hidden and/or outrageous usage fees, other banks around the country are just as or even more guilty of giving your retirement savings a run for its money with rising hidden fees! Hidden fees are popping up in banks all over the country. Here are just a few of the fees some of the more prominent banks are issuing:

  • Bank of America is issuing a $5 fee for a new debit card - $20 for rush delivery
  • Although Bank of America abandoned their monthly $5 debit card use charge, they increased their cost of a basic MyAccess checking account from $8.95 to $12/month.
  • Citigroup’s monthly checking account charge increased from $8/month to $10/month.
  • U.S. Bankcorp is charging 50 cents per deposit when using your mobile device to deposit funds into an account
  • In December TD Bank is implementing a $15 charge for each incoming domestic payment of cash being wired into their accounts
  • Chase now charges a monthly fee of $12 for its standard checking account where many depositors used to pay no fee at all!
This quiet creep of new charges and higher fees for everything from cash withdrawals at ATMs to wire payments, paper statements and in some cases, even the overdraft charges that lawmakers hoped to ratchet down is causing a lot of outrage from bank customers. What is more, banks are raising minimum account balances and adding other new requirements so that it is harder for customers to qualify for fee waivers.

Why all the new charges?

Banks are not trying to be the evil corporations some try to make them out to be. Unforutnately, they’re just trying to make a profit in the same kind of range they did before laws were passed that forbade lucrative overdraft charges and lowering debit card swipe fees. Those new laws prohibiting the outrageous fees some banks charged their customers actually makes $12 billion of banks annual income disappear! To make up for the loss banks would need to recoup, on average, between $15-20/month from each despositor, according to an analysis of the interest rate and regulatory changes on checking accounts by Oliver Wyman, a financial consulting firm.

Trying to Fix Fees…

Some policy makers are already fed up. This month, two Democratic senators, Richard J. Durbin of Illinois and Jack Reed of Rhode Island, urged the Consumer Financial Protection Bureau to adopt a more consumer-friendly disclosure form, akin to the nutrition label on food packaging, for all the fees attached to a checking account. “Simply put, consumers have had enough of banks that try to sneak fees past them that are hidden in fine print or imposed with no notice at all,” they wrote. Last year, a Pew Charitable Trusts study found that bank customers could potentially incur 49 different fees on a typical checking account.

]]> http://www.retirementfinances.com/retirement-budget/retirement-savings/banks-across-the-country-rising-hidden-costs/feed 0 7 Expenses You Won’t Have in Retirement http://www.retirementfinances.com/retirement-budget/retirement-expenses/7-expenses-you-won%e2%80%99t-have-in-retirement http://www.retirementfinances.com/retirement-budget/retirement-expenses/7-expenses-you-won%e2%80%99t-have-in-retirement#comments Thu, 10 Nov 2011 16:49:24 +0000 Melissa Rubin http://www.retirementfinances.com/?p=146

Retirement spending is always challenging. Figuring out how to deal with the same expenses with your limited retirement income is hard to do. Something many retirees don’t realize, however, is that you do not have the same expenses! Some of the toughest retirement expenses aren’t a part of your retirement spending. Having certain expenses eliminated may help your spending in retirement be towards things you want, like retirement travel, or need, like certain retirement investments. Although there are some studies that show the cost of living for retirees is just the same as a young taxpayer, doing away with certain costs can help you reach your financial retirement goals.

Mortgage Payments

Many people decide to move to warmer climates during their retirement. This is not simply because the burden of a full-time job has been removed, but by this time in life your house mortgage is usually paid off. This constant payment (of 15 or 30 years) does eventually end, and it’s usually right around retirement. No retirement mortgage? Check one retirement expense off the list!

Child Care

Most children are already grown by the time parents decide to go into retirement. Not only are some children grown, but they have children of their own. Retirement spending does not include paying for sitters or daycare… let’s leave the kids to that payment!

Car Payments

As with your house payments, car payments usually end around the time of retirement (if not before). Although you might be one of those who constantly trade in old models for new and have constant car payments, changing this policy in retirement might help with your retirement savings.

Retirement Savings

You’ve been saving for retirement your entire working life. Now retirement is here. So relax! Your paychecks have been eaten by 401k plans and Roth IRAs for years, now enjoy the money you’ve set aside for yourself and participate in some retirement travel and relaxation!

Life Insurance

Those with cash value policies can get them paid off by the time of retirement. Those with term policies may not need them, or may not be able to afford to keep paying them. In any case, it means the end of the constant monthly/annual payments! This could literally free up thousands of dollars for retirement spending, depending on the plan you had. With the reduction of spending in retirement due to these expenses being abolished, seniors can live a very comfortable life in retirement. Some can simply live off of senior Social Security and their personal retirement savings or investments that have prospered.

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Retirement spending is always challenging. Figuring out how to deal with the same expenses with your limited retirement income is hard to do. Something many retirees don’t realize, however, is that you do not have the same expenses! Some of the toughest retirement expenses aren’t a part of your retirement spending. Having certain expenses eliminated may help your spending in retirement be towards things you want, like retirement travel, or need, like certain retirement investments. Although there are some studies that show the cost of living for retirees is just the same as a young taxpayer, doing away with certain costs can help you reach your financial retirement goals.

Mortgage Payments

Many people decide to move to warmer climates during their retirement. This is not simply because the burden of a full-time job has been removed, but by this time in life your house mortgage is usually paid off. This constant payment (of 15 or 30 years) does eventually end, and it’s usually right around retirement. No retirement mortgage? Check one retirement expense off the list!

Child Care

Most children are already grown by the time parents decide to go into retirement. Not only are some children grown, but they have children of their own. Retirement spending does not include paying for sitters or daycare… let’s leave the kids to that payment!

Car Payments

As with your house payments, car payments usually end around the time of retirement (if not before). Although you might be one of those who constantly trade in old models for new and have constant car payments, changing this policy in retirement might help with your retirement savings.

Retirement Savings

You’ve been saving for retirement your entire working life. Now retirement is here. So relax! Your paychecks have been eaten by 401k plans and Roth IRAs for years, now enjoy the money you’ve set aside for yourself and participate in some retirement travel and relaxation!

Life Insurance

Those with cash value policies can get them paid off by the time of retirement. Those with term policies may not need them, or may not be able to afford to keep paying them. In any case, it means the end of the constant monthly/annual payments! This could literally free up thousands of dollars for retirement spending, depending on the plan you had. With the reduction of spending in retirement due to these expenses being abolished, seniors can live a very comfortable life in retirement. Some can simply live off of senior Social Security and their personal retirement savings or investments that have prospered.

]]> http://www.retirementfinances.com/retirement-budget/retirement-expenses/7-expenses-you-won%e2%80%99t-have-in-retirement/feed 0 Changing Careers and your Retirement Income Strategy as a Senior http://www.retirementfinances.com/retirement-income/supplemental-retirement-income/changing-careers-and-your-retirement-income-strategy-as-a-senior http://www.retirementfinances.com/retirement-income/supplemental-retirement-income/changing-careers-and-your-retirement-income-strategy-as-a-senior#comments Thu, 03 Nov 2011 15:23:21 +0000 Melissa Rubin http://www.retirementfinances.com/?p=1511

Changing careers when you are in your late 20s is one thing, but what about the baby boomers who have had to postpone retirement from lack of retirement investments and retirement savings? Is it possible for seniors to change their source of supplemental retirement income so late in the game? The quick answer is, yes. The choice for many seniors still in the workplace has become either

  • How do I make sure I am indispensible to my company
  • Should I be looking to change careers
Participating in an online education has been the answer to both these questions for the over 2,200 seniors (ages 55 and above) who are taking an online course. The individuals in these programs are focusing in areas of study such as Business, Criminal Justice, Legal Studies, and IT. Kaplan University said they have seen a huge increase in students since 2007. According to the U.S. Bureau of Labor Statistics, by 2015 one in five U.S. workers will be 55 or older, which is an increase of 13% from 2000. So, how do seniors take advantage of changing careers in this economy? Several Kaplan University students gave the following suggestions and success stories of seniors changing careers and/or returning to school to DegreeDriven.com.

Success stories:

  • Karen needs a bachelor’s degree to be promoted by her state government employer and at 59 she is on track to graduate with her bachelor’s of science in criminal justice next fall. She also says that “continually learning on a daily basis keeps the brain young and alive and in proper working order!
  • At 55 Robert retired from engineering to fulfill his long time dream of working in health care. Today, he is in his second year of Kaplan’s bachelor of science in health care management.
  • Inspired by her grandmother’s college education in her 50s, Patricia returned to school and received her bachelor’s degree at 54; one year later she is in the midst of getting her master’s in legal studies.

Tips for changing careers:

  • Make a list of the skills and knowledge acquired from each position you’ve held. Realistically evaluate your transferable skills and compare them directly to the requirements for the career or job you’d like to pursue.
  • Keep your skills current, taking every opportunity to improve and keep up with industry trends. • Seek out people in your newly chosen field to guide you and show you the ropes. Most will be more than happy to help.
  • Be flexible about job options — consider part-time or even volunteer work to get your foot in the door.
  • Remember the mantra, “It’s never too late.” Don’t be put off by naysayers or negative reactions. While it’s scary to change careers, it’s scarier to not live out your dreams.

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Changing careers when you are in your late 20s is one thing, but what about the baby boomers who have had to postpone retirement from lack of retirement investments and retirement savings? Is it possible for seniors to change their source of supplemental retirement income so late in the game? The quick answer is, yes. The choice for many seniors still in the workplace has become either

  • How do I make sure I am indispensible to my company
  • Should I be looking to change careers
Participating in an online education has been the answer to both these questions for the over 2,200 seniors (ages 55 and above) who are taking an online course. The individuals in these programs are focusing in areas of study such as Business, Criminal Justice, Legal Studies, and IT. Kaplan University said they have seen a huge increase in students since 2007. According to the U.S. Bureau of Labor Statistics, by 2015 one in five U.S. workers will be 55 or older, which is an increase of 13% from 2000. So, how do seniors take advantage of changing careers in this economy? Several Kaplan University students gave the following suggestions and success stories of seniors changing careers and/or returning to school to DegreeDriven.com.

Success stories:

  • Karen needs a bachelor’s degree to be promoted by her state government employer and at 59 she is on track to graduate with her bachelor’s of science in criminal justice next fall. She also says that “continually learning on a daily basis keeps the brain young and alive and in proper working order!
  • At 55 Robert retired from engineering to fulfill his long time dream of working in health care. Today, he is in his second year of Kaplan’s bachelor of science in health care management.
  • Inspired by her grandmother’s college education in her 50s, Patricia returned to school and received her bachelor’s degree at 54; one year later she is in the midst of getting her master’s in legal studies.

Tips for changing careers:

  • Make a list of the skills and knowledge acquired from each position you’ve held. Realistically evaluate your transferable skills and compare them directly to the requirements for the career or job you’d like to pursue.
  • Keep your skills current, taking every opportunity to improve and keep up with industry trends. • Seek out people in your newly chosen field to guide you and show you the ropes. Most will be more than happy to help.
  • Be flexible about job options — consider part-time or even volunteer work to get your foot in the door.
  • Remember the mantra, “It’s never too late.” Don’t be put off by naysayers or negative reactions. While it’s scary to change careers, it’s scarier to not live out your dreams.

]]> http://www.retirementfinances.com/retirement-income/supplemental-retirement-income/changing-careers-and-your-retirement-income-strategy-as-a-senior/feed 0 5 Ways You’re Sabotaging your Retirement Finances http://www.retirementfinances.com/retirement-budget/5-ways-youre-sabotaging-your-retirement-finances http://www.retirementfinances.com/retirement-budget/5-ways-youre-sabotaging-your-retirement-finances#comments Tue, 01 Nov 2011 14:50:08 +0000 Melissa Rubin http://www.retirementfinances.com/?p=2145

For the past 30-50 years we've been saving for retirement. We’ve read the countless articles telling us how we’re not putting enough into our retirement savings, how our retirement portfolio isn’t diversified enough, and how we’ll never have enough money to participate in retirement travel. With all the news of the recession and decreased senior social security it’s easy to get bogged down in the logistics of retirement savings. However, while navigating the pit-falls of retirement, you might in fact be unknowingly sabotaging your own retirement plan. Take a look at these 5 areas of a retirement plan that U.S. News & World Report put together and make sure you’re not sabotaging your own retirement! Not negotiating better pay upon hiring. In this economy, it's easy to be grateful for even having a job. But you are definitely short changing yourself if you don't negotiate for higher pay once an employer presents a job offer. A higher starting salary sets you up for bigger paychecks down the line because most raises are calculated as a percentage of your current pay. The worst an employer can say is no. Working less than 35 years. Working less than the typical 35 years before retirement could be seriously eating into your senior social security checks. Your retirement checks are based on the 35 highest years’ salary you’ve received since you’ve been working. If you’ve worked less than 35 years, then however many years you didn’t work are averaged in as $0 when your retirement checks are being calculated. Allowing lifestyle inflation to take over. As your paychecks grow, most likely so does your spending. When you make more money it’s easier to enjoy the finer things in life. We’re not saying you need to hoard your money, but when you make more, put more into the bank for retirement savings.  Still buy that condo on the beach, but not at the expense of your retirement lifestyle. Withdrawing money from retirement investments when they’re doing well. If you have stocks for retirement that did well last year, good for you! This does not mean you need to increase the percentage you take out. Keep that money in your retirement investments! Mindset of “there’s always tomorrow…”. If you consistently put off saving until future years you will not have enough saved to retire well. For most people, retiring comfortably takes years of diligent savings. The earlier you start saving, the more time your money has to accumulate interest and growth.

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For the past 30-50 years we've been saving for retirement. We’ve read the countless articles telling us how we’re not putting enough into our retirement savings, how our retirement portfolio isn’t diversified enough, and how we’ll never have enough money to participate in retirement travel. With all the news of the recession and decreased senior social security it’s easy to get bogged down in the logistics of retirement savings. However, while navigating the pit-falls of retirement, you might in fact be unknowingly sabotaging your own retirement plan. Take a look at these 5 areas of a retirement plan that U.S. News & World Report put together and make sure you’re not sabotaging your own retirement! Not negotiating better pay upon hiring. In this economy, it's easy to be grateful for even having a job. But you are definitely short changing yourself if you don't negotiate for higher pay once an employer presents a job offer. A higher starting salary sets you up for bigger paychecks down the line because most raises are calculated as a percentage of your current pay. The worst an employer can say is no. Working less than 35 years. Working less than the typical 35 years before retirement could be seriously eating into your senior social security checks. Your retirement checks are based on the 35 highest years’ salary you’ve received since you’ve been working. If you’ve worked less than 35 years, then however many years you didn’t work are averaged in as $0 when your retirement checks are being calculated. Allowing lifestyle inflation to take over. As your paychecks grow, most likely so does your spending. When you make more money it’s easier to enjoy the finer things in life. We’re not saying you need to hoard your money, but when you make more, put more into the bank for retirement savings.  Still buy that condo on the beach, but not at the expense of your retirement lifestyle. Withdrawing money from retirement investments when they’re doing well. If you have stocks for retirement that did well last year, good for you! This does not mean you need to increase the percentage you take out. Keep that money in your retirement investments! Mindset of “there’s always tomorrow…”. If you consistently put off saving until future years you will not have enough saved to retire well. For most people, retiring comfortably takes years of diligent savings. The earlier you start saving, the more time your money has to accumulate interest and growth.

]]> http://www.retirementfinances.com/retirement-budget/5-ways-youre-sabotaging-your-retirement-finances/feed 0 How to Set your Retirement Saving Priorities http://www.retirementfinances.com/blogs/how-to-set-your-retirement-saving-priorities http://www.retirementfinances.com/blogs/how-to-set-your-retirement-saving-priorities#comments Fri, 21 Oct 2011 20:40:48 +0000 Melissa Rubin http://www.retirementfinances.com/?p=1999

Understanding how your retirement budget works is essential to beginning any retirement savings or family investments plan. You budget your money so your savings can grow, but do you know what you’re actually saving for? Understanding you won’t be able to reach the goals of every financial dream can be a real buzz kill. Knowing how to prioritize your savings and investments into something that makes sense for your entire family is a skill not all families possess. Let us help put you on the right track…

  1. Focus on the goals that matter
  2. Be prepared for conflicts
  3. Put time on your side (if your younger, older, have money in stocks, 401(k) plans, etc.)
  4. Choose carefully from your list of goals – choose ones that will make you feel financially secure, happy or fulfilled
  5. Include your spouse in the goal-setting process
  6. Start now
  7. Try to defer or reduce large retirement expenses you might have – keep your savings goals in mind with all your spending
  8. Don’t sweat the small stuff
  9. Be prepared for change

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Understanding how your retirement budget works is essential to beginning any retirement savings or family investments plan. You budget your money so your savings can grow, but do you know what you’re actually saving for? Understanding you won’t be able to reach the goals of every financial dream can be a real buzz kill. Knowing how to prioritize your savings and investments into something that makes sense for your entire family is a skill not all families possess. Let us help put you on the right track…

  1. Focus on the goals that matter
  2. Be prepared for conflicts
  3. Put time on your side (if your younger, older, have money in stocks, 401(k) plans, etc.)
  4. Choose carefully from your list of goals – choose ones that will make you feel financially secure, happy or fulfilled
  5. Include your spouse in the goal-setting process
  6. Start now
  7. Try to defer or reduce large retirement expenses you might have – keep your savings goals in mind with all your spending
  8. Don’t sweat the small stuff
  9. Be prepared for change

]]> http://www.retirementfinances.com/blogs/how-to-set-your-retirement-saving-priorities/feed 0 Retirement Savings: Is there a right way to save? http://www.retirementfinances.com/retirement-budget/retirement-savings/retirement-savings-is-there-a-right-way-to-save http://www.retirementfinances.com/retirement-budget/retirement-savings/retirement-savings-is-there-a-right-way-to-save#comments Thu, 20 Oct 2011 15:55:22 +0000 Melissa Rubin http://www.retirementfinances.com/?p=2139

Working America has been putting money into retirement savings since they signed their first 401k. Whether it be in retirement investing strategies with retirement stocks and bonds, or throwing $100 from every paycheck in a shoebox under a bed, the smart American knows they need to save for retirement. There are many ways individuals go about preparing their retirement savings. Some individuals want to create a retirement budget suitable to their current lifestyle; others want to incorporate retirement travel, or are focused on saving for health insurance costs. Senior social security will only go so far. Unfortunately, there is no “right” way to accomplish the “perfect” amount of retirement savings. There are, however, multiple paths you can take, which will be discussed below. Ways of Optimizing Retirement Savings There are many different steps one may take to make the most out of their retirement savings. The following is just a short list of the possibilities:

  • Diversifying their retirement portfolio
  • Investing in Roth IRAs
  • Purchasing annuities
  • Hiring a professional financial advisor
All of these investment strategies can positively affect your retirement savings… they can also cost you a pretty penny if you’re not careful. Different strategies work best for different kinds of people. For example, if you are diversifying your portfolio but are not known for the risks you take, you might want to stay closer to retirement bonds, as they are more stable in the long run and have less risk. However, if you are close to retirement and want a turnaround quickly, investing in stocks and bonds might be more affable to your needs and lifestyle. Something to be careful about is when you hire a professional financial advisor. The biggest mistake many seniors use is hiring a friend, or taking the word of a friend in their hiring process. Just because an advisor works for your friend does not mean they’ll work for you. Research different advisors and find out how they get paid; those who work on commission tend to be more focused on finding profitable investments.

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Working America has been putting money into retirement savings since they signed their first 401k. Whether it be in retirement investing strategies with retirement stocks and bonds, or throwing $100 from every paycheck in a shoebox under a bed, the smart American knows they need to save for retirement. There are many ways individuals go about preparing their retirement savings. Some individuals want to create a retirement budget suitable to their current lifestyle; others want to incorporate retirement travel, or are focused on saving for health insurance costs. Senior social security will only go so far. Unfortunately, there is no “right” way to accomplish the “perfect” amount of retirement savings. There are, however, multiple paths you can take, which will be discussed below. Ways of Optimizing Retirement Savings There are many different steps one may take to make the most out of their retirement savings. The following is just a short list of the possibilities:

  • Diversifying their retirement portfolio
  • Investing in Roth IRAs
  • Purchasing annuities
  • Hiring a professional financial advisor
All of these investment strategies can positively affect your retirement savings… they can also cost you a pretty penny if you’re not careful. Different strategies work best for different kinds of people. For example, if you are diversifying your portfolio but are not known for the risks you take, you might want to stay closer to retirement bonds, as they are more stable in the long run and have less risk. However, if you are close to retirement and want a turnaround quickly, investing in stocks and bonds might be more affable to your needs and lifestyle. Something to be careful about is when you hire a professional financial advisor. The biggest mistake many seniors use is hiring a friend, or taking the word of a friend in their hiring process. Just because an advisor works for your friend does not mean they’ll work for you. Research different advisors and find out how they get paid; those who work on commission tend to be more focused on finding profitable investments.

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