Hope for your financial life and beyond

Should I Retire Early? – 9 Questions to Help You Decide

What do the numbers 61, 65 and 73 have in common? You might guess they are the home run records set during various Major League Baseball seasons by Roger Maris (1961), Mark McGwire (1999) and Barry Bonds (2001) respectively. However, for our purposes here those numbers represent peoples ages. Specifically, the age they may be looking at to mark the beginning of their retirement. In fact, we could also put in numbers like 55, 50 or even younger as even people at those ages are asking could I or should I retire early.

couple in retirementLet’s just get this out of the way right at the beginning – clearly a person can retire at any age they choose. However, to receive full financial benefits from the Social Security Agency will require a person to work until a certain age (based on when they were born). For example, I was born after 1960, so full retirement age for me isn’t until age 67 according to the Social Security website.

I could begin to receive benefits as early as age 62. However, those benefits would come to me at a reduced rate. The calculation used by Social Security is based on the number of months once I retire until full retirement age is reached. In my case that would be 60 months if I retired at age 62.

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Is the Bible Really Clear About Paying Taxes?

“Render therefore to Caesar the things that are Caesar’s, and to God the things that are God’s.” – Matthew 22:21

taxes in the bibleLike you, my tax paperwork is due to be filed by April 15th. There is no doubt that doing the tax return is no fun to fill out every year. It has become a much easier task though since my wife became a CPA.

Talking about taxes sets our blood to a boil. We despise the fact that we work so hard only to see so much money taken from each paycheck. “Isn’t there a way to avoid it?” we ask.

That question should raise alarm bells for everyone. While certain maneuvers with money are legal, many others are not. If we are not careful, that question can lead us down a path of handling our money in a way that we might regret one day.

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8 Questions to Ask When Setting Up A Family Inheritance

It’s hard enough to deal with the topic of our own death let alone what will happen to our possessions once we pass away. Setting up a family inheritance can get complex and technical. That’s why most people don’t deal with it.

family inheritanceThe aftermath of what we do could lead to a potential mess as this 2012 article from Fox News demonstrates:

“Heirs of a wealthy New York art dealer were left a $65 million sculpture [named “Canyon”]…The bequest comes with a $29 million tax bill, but since the piece includes a stuffed eagle, it can’t be sold…federal law makes it a crime to possess, transport, sell or otherwise convey a bald eagle, whether it is alive or, as in this case, stuffed…The venerable auction house Christie’s placed the value of “Canyon” at zero. The IRS initially put it at $15 million, then jumped the figure to $65 million…”

Most of us will never deal with numbers that large. But it’s no wonder we get confused with our heirs, the courts and the IRS all to think about. It all seems like a big tangled mess.

So what should we do?

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5 Ways to Reduce Your Medical Expenses in a Car Accident

Getting involved in a car accident is something no one wants to experience. Yet most will at some point. A 2020 report by Esurance found that 77% of all drivers have had at least one accident and that the average person files a car insurance claim every 17.9 years. So if you start driving by age 16, you are estimated to have 3-4 accidents over the course of your lifetime.

To give it even more weight, here is the reality – many accidents are ones we have no control over. You may be a very cautious and try to drive as safe as possible. But you can only control your car.  You can’t control the other drivers or the deer running across the road.

According to another survey, in 43% of car accidents, at least one driver or passenger sustains injuries. And these injuries may entail expensive medical bills. That’s why it’s imperative car owners get car and accident insurance. Otherwise, those medical bills and potential lawsuits could bankrupt you. 

So if you are looking for ways to lessen a medical bill from an accident, let this article be your car accident injury guide to help you cut down on the cost as much as possible. 

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Top Tips for Freelancing Success

Have you ever thought about freelance work as a side hustle to earn extra income or as your main way of making a living? Many people do, for either of those reasons, including myself at one point in my life.

There are a number of benefits to being a freelancer. One of the most attractive draws is that it provides flexibility for your life and your career. Turns out many people love the ability to set their own schedule, be selective of the jobs they take (ones that bring them meaning and purpose) and in some cases, do freelancing from home. 

Nonetheless, freelancing can also be a lot of hard work. As a freelancer, you work alone and are responsible for every aspect of your work. This makes it harder in some respects than a conventional salaried job. 

To that end, this guide has been created to outline a few ways you will be able to achieve success in your freelancing career. 

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Here’s What a 529 College Savings Plan Covers

It’s no secret the cost of college has and continues to skyrocket. It makes it very difficult to go to college debt free. This is especially true if you do not start saving early enough. If you can start saving though, you have some options. A 529 college savings plan is one of the smartest investments you can make for your child’s future success.

college savings planA 529 college savings plan is a state-administered plan. The IRS does not tax withdrawals, as long as they are made for qualifying educational expenses. As an added bonus, a 529 plan can be used for a beneficiary’s tuition expenses for elementary through high school, in addition to college, graduate school or trade school.

The rules change however, when a withdrawal is made that the IRS doesn’t consider a qualifying expense. 529 college saving plans are federally taxed, even though they are administered at the state level. If you want to use the plan to pay for a non-qualifying expense, the withdrawal will incur a 10% penalty and receive the federal tax.

That’s why you should be absolutely sure which withdrawals qualify. So here is a brief guide to assist in your decision-making on whether this type of plan is right for you. 

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Beyond the Retirement Plan: 3 Things to Do Before You Stop Working

Have you started thinking about your retirement plan? For most, the retirement plan consists of saving enough money to cover their life expenses after they stop working. More than likely, the retirement plan revolves around socking money away in investment accounts such as a 401(k), traditional or Roth IRA, a savings account, or real estate. Some may even horde cash in a savings account or CD.

retirement plan

In one sense, the retirement plan is about the money. But it’s not JUST about the money.

Other concerns abound besides having enough money to pay for housing, food, and other expenses. The money side is important but other issues can impact if have a fulfilling retirement. Addressing these ahead of time will make a big difference in how comfortable you feel and your family feels.

So before you start planning your retirement party, make sure you’ve addressed these important issues.

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High Risk Investing: When I Turned One Thousand Dollars Into…

I marvel at how Wall Street creates wealth. This even happens sometimes through high risk investing. An investor purchases a few 100 shares in a small company that hits it’s stride or a start-up that goes supernova and they become a millionaire inside a decade.

high risk investing

That’s not normal. For most investors it takes multiple decades of steady, solid investing to create significant wealth. But it does happen from time to time, as we all have seen.

That’s why the latest opportunities or fads like cryptocurrency and NFTs attract us. It’s why we get caught up in new companies and try to buy in on the opening day of trading. IPOs (initial public offerings) tend to be extremely volatile. That is why investors are better off waiting for several months before they decide to purchase shares.

What if you could purchase shares in a company before it went public though? That would be an extreme level of high risk investing. You are essentially putting money into a company that might not even make it to market. That strategy is more like speculating than investing.

But would you do that given the opportunity? Put money on the line with a chance to hit it big or lose it all? I did once and here’s that story.

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How to Develop a Purposeful Plan for Giving Away Money

If you have found your way to this article, you most likely have a generous heart and enjoy giving away money to a favorite cause. But have you ever thought about how you give away money? Do you give purposefully or haphazardly as opportunities pass in front of you?

giving away moneyDeveloping a purposeful plan for giving away money might seem silly. You may want to give wherever and to whomever you like without feeling held back by a plan. There is great freedom in that philosophy. However, as I’ve found out over the years, there are also great dangers.

Putting together a purposeful plan for giving away money is a fundamental exercise you should go through. In short, it will help you have success with your finances.

Everyone who gets serious about their finances tries hard to make a monthly budget work. We make a plan to pay for the kid’s college. And we work tirelessly in order to support ourselves in retirement.

So why do we ignore this area of our finances where a lot of money could also pass through our fingers?

The fact is we shouldn’t ignore it. Here’s how to get purposeful with your giving.

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How Much Should You Save for Retirement?

Retirement is something every working person needs to think about, no matter how young they are. The simple reality is that, at some point in your life, you are going to have no income. You’re going to need a retirement fund for your basic needs. But how much money will you need?

Calculating how much you will need to save for retirement is difficult for a number of reasons. It is impossible to know just how prices will rise over the decades. Inflation is a real issue that can eat away at the spending power of your money. 

Additionally, you may need to buy technology that has not even been invented yet. Or you might end up supporting a family member or a child who isn’t able to get a job for whatever reason. And finally, you may have unanticipated large medical needs as you head later into life. All of these things make it a challenge to know exactly how much to save for retirement. 

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Secret Advice For Teenagers Who Love to Spend Money

You know who you are – a teenager who loves to spend money like it’s going out of style. You spend money faster than it takes a Snapchat to disappear. Money comes into your hand one minute and flows out like water the next.

spend moneyAnd you like it that way!

If that’s you, I have some special advice today. It’s unusual, maybe even secret advice. I’m pretty sure you’ve never heard any adult say this to you before. In fact, your parents may hate me for saying this because it might go against how they have instructed you to handle money. So I’m actually running a big risk here.

But before I reveal this big secret about spending your money, you have to promise me something.

The promise I’m asking you to make is to read this entire post. You are going to love what I have to say about spending money,  but you can’t take it as stand alone advice without understanding the bigger picture. As they say, the devil is in the details. So I’m asking for five minutes of your time to help you avoid a huge potential failure when spending money.

Ready for the big, secret advice? OK, here goes…

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