Retire in Paradise

How You can Avoid Retirement Account Tax Penalites

noreply@blogger.com (Stephan) — Wed, 19 Dec 2007 19:36:00 +0000

There are several retirement accounts with tax implications. 401K accounts, Keogh accounts, Roth IRAs and standard IRAs are some of the most important and widely know retirement accounts.

What is an Individual Retirement Account (IRA)?

An Individual Retirement Account (IRA) is a retirement investment into which you put contributions on which you do not pay taxes until you withdraw the money from the account after you retire. Usually, your tax bracket will be lower after retirement and so you won't have to pay as high a percentage of the money in taxes as you would have if the money had been taxed at the time it was originally earned. When you put money into an IRA, you get a tax deduction. When you take a "distribution" from that IRA later, it counts as taxable income. There are penalties for early withdrawal up to age 59 1/2.

You are required to start taking money out of your IRA no later than at age 70 1/2.

You should check with your accountant or the IRS to see how much you can contribute in the current tax year. How much of this money is tax deductible depends on your Adjusted Gross Income (AGI) and whether you are covered under an employer retirement plan.

There are other variations of the standard IRA, such as the "Simple IRA," a relatively new but popular employer based plan allowing employer contributions and a higher contribution by the taxpayer.

What is a 401K Retirement Account?

A 401K plan is named after a section of the 1978 U.S. Tax code. It is a plan offered by employers which allows you to automatically save a portion of your income for retirement without paying taxes now on the money you are saving. As with the IRA, the idea behind it is you'll be in a lower tax bracket after retirement and therefore will have less tax to pay on the saved money than you would pay now at your higher salaried income rate. You only pay taxes on the money when you withdraw it from the 401K account after retirement.

Usually, the 401K money is automatically deducted from your paycheck by the company's payroll system in much the same way your taxes are withheld.

In its basic configuration, a 401K account is similar to a standard IRA, but in many employers' plans, there is a matching contribution from the employer which provides the real power to the plan. Beware. Many companies invest the 401K plan money heavily in their own company stock. If the company has an unusually bad financial problem, you might find this money in jeopardy as well as your job. The best 401K plans allow you to control the investment vehicles for your money.

Typically, at the time of retirement, a 401K plan is "rolled over" into a standard IRA, from which the retiree then makes withdrawals over time to provide retirement income.

What is a Keogh Retirement Account?

A Keogh retirement account is a tax deferred retirement plan for self employed people. If you are self employed, with a sole proprietorship or a partnership, then this is the plan you may want to consider setting up. Any type of qualified retirement account can be set up to cover self employed individuals. You should also look into 401K plans, and standard and Roth IRAs.

There are advantages and disadvantages to each. One advantage to the Keogh plan is that contributions are deducted from the gross income. Contribution limits are more liberal than those allowed with some other retirement accounts. As with other retirement accounts, tax is deferred until money is withdrawn, usually after retirement. In some cases, lump sum withdrawals may be eligible for 10 year averaging which can provide a tax benefit.

Another IRA type used for self employed sole proprietors is a SEP IRA which has less complex filing administrative paperwork and allows higher contributions.

What is a Roth IRA?

The Roth IRA came into existence in 1998 and is named after the late Senator William V. Roth, Jr. The chief advantage of a Roth IRA is obvious. Although there is no deferral of taxes on the money originally invested in a Roth IRA, as in other IRAs, all income earned by the investments in a Roth account is tax free when it is withdrawn. Another benefit is that you are not required to take distributions beginning at age 70 1/2 as with other accounts, so if you don't need the money to live on, it can continue growing and earning for you tax free. Also, a Roth IRA makes it easier in some cases to take early withdrawals without penalties compared to other retirement accounts.

For many people, the Roth IRA is a wonderful retirement investment account. Some employers offer Roth 401K plans.

There are, however, limitations on who may contribute and under what conditions. Individuals with higher incomes may not be able to use a Roth IRA. Check with your accountant or the IRS for current rules.

You need to plan early and do your homework thoroughly. Review your choices regularly since rules and types of accounts change over time. Don't wait until you are 60 to start planning for your retirement or you'll be sorry.
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Do You Make This Common Mistake in Retirement Planning?

noreply@blogger.com (Stephan) — Wed, 05 Dec 2007 04:41:00 +0000

Most articles about 401(k) plans, traditional IRAs and Roth IRAs focus on rules and regulations. Contribution limitations and income tax issues usually take precedent.

Unfortunately, little attention is given to the matter of control. This refers to one's ability to personally manage the asset on an active and ongoing basis.

For example, when you join a 401(k) plan you are restricted as to the investment choices. Your plan sponsor makes that decision as part of their fiduciary responsibility.

In the past, this was a big concern because plan participants (i.e. the employees who enroll in their company's 401(k) plan) were often given terrible choices.

Sometimes, this was the result of ignorance on the part of the plan sponsor. However, with some publicly held companies it was the desire to encourage employees to invest in the stock of their own company.

Today, federal regulation mandates better investment choices. This means a plan participant is able to choose from a greater variety of investment styles, as well as a cash account that typically replicates a money market fund.

But, this is still insufficient. The ability to design the most appropriate investment plan continues to be severely limited in 401(k) plans when compared to the freedom of choice in IRAs.

It is important to review briefly what has happened over the last 20 years with retirement plans.

Not long ago, it was common for a company to provide employees with a defined benefit plan. This type of plan design guaranteed a stream of income based on length of service and average wages. The income began at what was then considered the normal retirement age of 65.

For many workers, the defined benefit plan, together with social security, ensured a sense of security for their future lifestyle. Obviously, times have changed considerably.

Today very few companies will assume the defined benefit plan liability. In fact, companies have shifted the responsibility for retirement savings to the employee by adopting 401(k) plans.

Some companies will match a portion of the employee's 401(k) contribution up to a maximum amount or percentage. But this doesn't come close to replenishing the void caused by the terminated defined benefit provision.

What is more, the investment opportunities in typical 401(k) plans are expensive due to excessive management fees and brokerage commissions. Even the so-called no load separate accounts have administrative costs that significantly reduce the net return for the average investor.

Most plan participants are oblivious to the costs associated with the administration of their plan. Also, they do not pay enough attention to the allocation of their investment.

A self-directed IRA hosted by a low cost online brokerage firm provides an opportunity to reduce substantially the ongoing costs related to retirement planning.

In addition, the IRA owner can invest in a wide variety of individual stocks, bonds and commodities to create a highly diversified portfolio. The 401(k) participant must take the total package of a bundled investment to include issues that can jeopardize the total return.

This is not to say 401(k) participation should be avoided. Not at all. But it should be coordinated closely with a IRA to enhance the overall strategy for long-term growth.

It's apparent that Congress must continue to provide expanded retirement planning opportunities for the individual employee. The rules will constantly change, but the writing is very much on the wall.

Companies will no longer provide guaranteed future benefits. Factors which contribute to this include the pressure of worldwide competition, the deterioration of union power, the ever increasing cost of health insurance and the peripatetic nature of the workforce.

Therefore, the individual employee needs to understand how to create a balance between the restrictions found in the 401(k) plan and the significant freedom of choice of the IRA.

Both instruments permit the postponement of income tax. Whether the investment principal is pre-tax 401(k) or tax deductible IRA is irrelevant. At some point the tax piper must be paid.

The strength of both systems is in the tax deferment because, in most instances, this will be a long period of time. In fact, many people choose not to withdraw any money at all from retirement accounts until they are forced to by federal regulation.

As stated earlier, rules change frequently. Therefore, it is important to know what restrictions are in place before making any investment choice. But the basic premise doesn't change.

Analyze both the 401(k) plan together with your ability to open a IRA. If your employer offers a matching provision, commit a portion of your pretax dollars to guarantee no less than the matching amount.

Anything over and above this figure should be allocated to a self-directed low cost brokerage IRA. This gives you the opportunity to enhance your total retirement investment.

If your income exceeds the limitation for deducting the cost of your IRA, do not let this to be the sole reason not to open the IRA. Your freedom of choice and long-term tax deferment can far outweigh your lack of deductibility.

In the final analysis, most people make financial decisions based on their level of comfort. Indeed, this frequently leads to less than desirable results.

Stephan Iscoe
Publisher
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Tax Implications of Retirement Accounts

noreply@blogger.com (Stephan) — Wed, 05 Dec 2007 04:38:00 +0000

There are several retirement accounts with tax implications. 401K accounts, Keogh accounts, Roth IRAs and standard IRAs are some of the most important and widely know retirement accounts.

What is an Individual Retirement Account (IRA)?

An Individual Retirement Account (IRA) is a retirement investment into which you put contributions on which you do not pay taxes until you withdraw the money from the account after you retire. Usually, your tax bracket will be lower after retirement and so you won't have to pay as high a percentage of the money in taxes as you would have if the money had been taxed at the time it was originally earned. When you put money into an IRA, you get a tax deduction. When you take a "distribution" from that IRA later, it counts as taxable income. There are penalties for early withdrawal up to age 59 1/2.

You are required to start taking money out of your IRA no later than at age 70 1/2.

You should check with your accountant or the IRS to see how much you can contribute in the current tax year. How much of this money is tax deductible depends on your Adjusted Gross Income (AGI) and whether you are covered under an employer retirement plan.

There are other variations of the standard IRA, such as the "Simple IRA," a relatively new but popular employer based plan allowing employer contributions and a higher contribution by the taxpayer.

What is a 401K Retirement Account?

A 401K plan is named after a section of the 1978 U.S. Tax code. It is a plan offered by employers which allows you to automatically save a portion of your income for retirement without paying taxes now on the money you are saving. As with the IRA, the idea behind it is you'll be in a lower tax bracket after retirement and therefore will have less tax to pay on the saved money than you would pay now at your higher salaried income rate. You only pay taxes on the money when you withdraw it from the 401K account after retirement.

Usually, the 401K money is automatically deducted from your paycheck by the company's payroll system in much the same way your taxes are withheld.

In its basic configuration, a 401K account is similar to a standard IRA, but in many employers' plans, there is a matching contribution from the employer which provides the real power to the plan. Beware. Many companies invest the 401K plan money heavily in their own company stock. If the company has an unusually bad financial problem, you might find this money in jeopardy as well as your job. The best 401K plans allow you to control the investment vehicles for your money.

Typically, at the time of retirement, a 401K plan is "rolled over" into a standard IRA, from which the retiree then makes withdrawals over time to provide retirement income.

What is a Keogh Retirement Account?

A Keogh retirement account is a tax deferred retirement plan for self employed people. If you are self employed, with a sole proprietorship or a partnership, then this is the plan you may want to consider setting up. Any type of qualified retirement account can be set up to cover self employed individuals. You should also look into 401K plans, and standard and Roth IRAs.

There are advantages and disadvantages to each. One advantage to the Keogh plan is that contributions are deducted from the gross income. Contribution limits are more liberal than those allowed with some other retirement accounts. As with other retirement accounts, tax is deferred until money is withdrawn, usually after retirement. In some cases, lump sum withdrawals may be eligible for 10 year averaging which can provide a tax benefit.

Another IRA type used for self employed sole proprietors is a SEP IRA which has less complex filing administrative paperwork and allows higher contributions.

What is a Roth IRA?

The Roth IRA came into existence in 1998 and is named after the late Senator William V. Roth, Jr. The chief advantage of a Roth IRA is obvious. Although there is no deferral of taxes on the money originally invested in a Roth IRA, as in other IRAs, all income earned by the investments in a Roth account is tax free when it is withdrawn. Another benefit is that you are not required to take distributions beginning at age 70 1/2 as with other accounts, so if you don't need the money to live on, it can continue growing and earning for you tax free. Also, a Roth IRA makes it easier in some cases to take early withdrawals without penalties compared to other retirement accounts.

For many people, the Roth IRA is a wonderful retirement investment account. Some employers offer Roth 401K plans.

There are, however, limitations on who may contribute and under what conditions. Individuals with higher incomes may not be able to use a Roth IRA. Check with your accountant or the IRS for current rules.

You need to plan early and do your homework thoroughly. Review your choices regularly since rules and types of accounts change over time. Don't wait until you are 60 to start planning for your retirement or you'll be sorry.

Stephan Iscoe
Publisher
Discover How You Can Afford to Retire Early in Luxury

Stay Connected In Retirement

noreply@blogger.com (Stephan) — Sun, 08 Jul 2007 14:43:00 +0000

by Cynthia Barnett

You’ve probably heard it said about getting ahead in life that “it isn’t what you know, it’s who you know.” While there is a certain amount of truth to that claim, I can assure you there is a great deal of truth in this statement: “Happiness depends on your ability to stay connected in retirement.” Quite simply, numerous studies show that people who withdraw from life and from connections with others are not only miserable in their retirement years, but they tend to die sooner than people you stay connected in retirement.

It is always easy to postpone doing things; and this doesn’t change when we retire. Staying connected is one of the most important things people need to do after retiring. Fortunately, this is not difficult. No matter how shy you are, and no matter how much of a loner you are, you need to stay connected to life, to the world, and to at least one or two other people. We don’t have to become isolated or lonely in retirement. We just need to stay connected.

Here are a few ideas to help you stay connected:

Consistently watch one news broadcast each day at least. This is one way to stay informed about the world and your community. It also gives you topics for conversation with other people. Keeping up with the news also keeps you informed of new developments and the like that can make your life better.

Have a conversation with at least one person who is important to you each day. It really doesn’t matter so much whether the conversation occurs over the telephone or face to face. The important thing is to stay in conversation with someone every day. Whether you discuss world news or childhood memories, the conversation is good for you.

Write a letter (not an e-mail) to someone each week. Take the time to actually connect with someone by taking the time to sit down and write a long letter. Write about what is happening in your life, your family, your thoughts, and your feelings. Not only will the letter brighten someone else’s life, you will probably receive a response that will brighten your life.

Find an exercise buddy. We all need exercise. Whether you choose to walk or engage in some other physical activity for exercise, it will be more fun if you share the experience with a friend. You can discuss many things on a daily walk, or even at a pool or a gym or spa.

Volunteer to help others. There are many people around us who need help with things. There are people whose only contact with others is a conversation with the meals-on-wheels delivery person. There are children who need to be taught or just need to be loved. There are many organizations that rely upon volunteers to carry out their mission. Not only will you stay connected with other people, you will know you have done something to help someone, and that will feel good.

Join a group or club. Regular get-togethers with other people who enjoy the same things you do, are great fun. Whether you play cards, mah jong, dominoes, chess, checkers or bunko; whether you share bird watching experiences or take in a movie or a show together, you are spending time in conversation with people with whom you share interests.

Remain or become active in your church, synagogue or mosque. You can be assured that you share basic beliefs and values with the people you meet there. You will also find ways to help others, teach others, and contribute to a better world.

Learn to do something new. Whether you take computer classes, dancing lessons, or you audit a course at the local college, learning something new keeps your mind sharp, puts you in contact with others who have similar interests, and opens up new possibilities for social, business or educational activities in the future.

Try these tips to become connected and stay connected in retirement. You will be happier, healthier, and you can make a positive impact on the lives of others.

Dr. Cynthia Barnett is a "refired" educator who has reinvented her life, moving from the school house to an entrepreneurial venue. She is the author of "Stop Singing the Blues: 10 Powerful Strategies for Hitting the High Notes in Your Life," and "Seven Secrets of Highly Successful Retirees." She is a retirement lifestyle coach. She was recently interviewed by Time magazine for their article on women in mid-life who have reinvented themselves. She can be reached at 203-855-9714 or http://www.refiredontretire.com.

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Options For What To Act On Now In Your Pre-retirement Years

noreply@blogger.com (Stephan) — Sun, 17 Jun 2007 13:52:00 +0000

by Kim Kirmmse Toth

Let's just say you're 5 or 10 or 15 years or so away from when you think your might retire. Some might call this the "Preretirement" stage. It's the period of time you plan and take a look at what you might want down the road. I truly suggest you really take this to heart!

Naturally, you will come from a different place in your life than your friends will. Let's take a look at some different scenarios and see if you fit into any of them:

*You and your spouse both work at jobs you enjoy and find passion in. These jobs bring meaning to your life and you feel fulfilled.
*You work and your spouse does not or your spouse works and you do not. Both find your contentment in their roles within the relationship.
*One of you finds contentment and satisfaction in your role and the other does not.
*You are single. You love your job and cannot imagine your life without it.
*You are single. You can not wait to retire and finally do something you want to do that makes you happy.

Surely, there are other situations but those are an example of a few. Just suppose you are ten years from the time you would like to retire. Now, you can be flexible here with the word "retire". That can mean you leave your job totally, or begin to phase yourself out or you find another job that you have always wanted and you will LOVE.

Let me ask you some questions now. Just think about them for a bit before you jump to an answer. Give them some time to shift and settle. Your answer is not carved in stone! You are flexible! You can make changes as you need to along the way, to suit you at that time of your life.

1. You have had a very successful career and are well known for your accomplishments. You are used to getting accolades and constant reinforcement about how talented and special you are. You are now retired. You are no longer going to this place everyday where they think you are so wonderful.

*How are you going to handle this?
*Who is going to pat you on the back and let you know how great you are?
*Where are you going to get those positive and uplifting feelings from?

2. You have left your job and are just thrilled about being home more and spending time with your spouse. They, on the other hand, have their own life and they really don't want to rearrange their life to accommodate you.

* Now what are you going to do?
* Do you expect your spouse to change their entire life for you?
* Will the two of you be able to compromise?

3. You cannot wait to leave your job and enjoy your life. Your spouse wants to continue working for many more years.

*Are you going to insist your spouse quit their job to be with you?
*If they do continue working, what are you going to do?

4. You love your job! You are single. You are laid off!
* What are you going to do?
* Do you know what you love? What you have a passion for?

5. You are single. You get to retire and do what you have dreamed of!
* Do you have a plan?
* Do you know how to get what you want?
* How are you going to make this dream come true for you?

Okay. This is just a place to start. This is your "Preretirement" stage so you have lots of time to plan so that you don't get caught in a situation unprepared. Let this be a jumping off place for you. Take your time to mull over what you would like your life to look like. I promise you it will be worth the energy!
So, let me ask you; what are you going to do in those retirement years of yours?

Kim Kirmmse Toth is a certified life coach. She works with baby boomers on the many transitions faced including the non-financial side of retirement planning. She may be contacted at: kim@myretirementbydesign.com or at her website: http://www.myretirementbydesign.com

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Where are the Boomers Going Now?

noreply@blogger.com (Stephan) — Sat, 09 Jun 2007 13:49:00 +0000

by Mark Kanty

Four the past 4 years I have been observing the growing trend for Americans and others, mostly Canadains and Brits, to purchase second homes and to also relocate to Panama. All we have to do is look to the Baby-Boomers to see where the next big growth industries are going to be. Lee Iacocca knew this very well as he led Detroit to major gains first at Ford with the Mustang and again at Chrylser with the mini-van. Well the boomers they are aging and guess where they headed? SOUTH! Just watch as the 2nd home market continues to thrive. But forget about Florida and the southern states. No, these boomers are much more worldly and are looking even further south to places like Panama. Relocation to countries which offer a lower cost of living - lower taxes - retiree incentives and a low stress lifestyle are just beginning to see the arrival of the boomers. What's it going to be like when the peak of the Boomer wave hits in 2012?

In 2nd Home Journal, Ellen Newbury writes, "International Markets Heat Up - Boomers Fuel Second Home Buys Abroad.

Americans are driving the second home market, and redefining it in the process. Baby-boomers continue to expand the market with their increased buying power. And they have begun to turn their attention more seriously to locales outside the U.S.

The move toward international second homes comes is no surprise to the analysts who have tracked boomers for decades. Globalization and the internet have made it easy for these adventuresome Americans to look beyond U.S. borders for investment and recreation. Boomers are being romanced by international hot spots, and they’re looking to invest in the attractive global real estate markets.

The National Association of Realtors® (NAR) confirms the phenomena. “We have seen this trend in Americans buying vacation homes abroad,” says Jeff Hornberger, International Market Development Manager for the NAR.

Hornberger says the NAR expects no slow down in the international second home market in the near future. “The foreign second home market will continue to explode in the coming years. It is not a temporary trend. The most popular destinations for Americans seem to be in Latin America, as this is where the dollar exchange is the best. Especially in Panama where the U.S. dollar is the local currency!

Panama, the third largest country in Latin America, is emerging as a popular second home destination. “The secret is ‘out’ for Panama, and Americans, especially retirees, are expected to move there in droves in coming years,” says Hornberger.

Comprised of 480 miles of terrain linking Costa Rica with Columbia, Panama is arguably the hottest investment opportunity in Central America. Scott Harris has 16 years of real estate experience, and works in sales and marketing for Red Frog Beach in Panama. Harris says, “Panama is one of the hottest international markets and Americans and other foreigners are snapping up property like crazy.”

Jaime Figueroa Navarro is President of Panama All In One, Inc. Navarro says that he has seen the trend in the booming second home market extend into his country. “…we’re experiencing robust growth…many baby boomers are looking to live here as there are many advantages not available stateside…for example, the purchase of a new home or condo comes along with a 20-year homeowner’s tax exemption.”

The local currency is the U.S. dollar, making transactions easier for Americans, as well as removing the component of currency fluctuation and potential investment devaluation.

Navarro feels that now is the time to invest in Panama. He says there are many bargains on the market and the potential returns on investments loom large. “…this is where there is the largest business opportunity for the growing number of investors and promoters. In Panama now, the rule of thumb is, if you build a quality home, it ’s sold…this trend will continue for the foreseeable future.”

Used by permission of Publisher. www.2ndhome.net

Mark has been there and done it! He moved to the warm, stable Republic of Panama. With his wife and two sons he travelled throughout the country and learned how to Safely Invest in Panama Real Estate. Panama City, Bocas del Toro
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Real Estate and Your Retirement

noreply@blogger.com (Stephan) — Sun, 27 May 2007 16:14:00 +0000

by J Harris

Many people are looking for ways to increase their retirement income. For most of these individuals, their homes are the greatest asset. A large section of the aging population has failed to plan effectively in order to have sufficient savings at retirement. They now are looking to their real estate to supplement their retirement income.

Real estate values are very unpredictable, especially now with the decrease in the real estate bubble. Prices are falling in some cities and flattening in others. It will take some planning to get the most from selling your real estate to supplement your retirement.

Be Realistic. To plan effectively, you must be realistic about the price you may get for your home. Real estate is an up and down market, so you should assume a traditional real estate market for valuating your home, with gains in value equal to the inflation rate. At retirement, you will have the same purchasing power you currently have. If gains in real estate values are better than the inflation rate, then you will have more. Just don’t count on it.

Get the Most from Your Real Estate. People used to work hard to pay off their mortgages for homes they planned to raise their children in and retire. Since 1989, the number of people 65 and older with mortgage debt has nearly tripled, adjusting for inflation. Making payments on real estate in retirement years will deplete your savings and retirement income faster than any other expenditure.

There are three reasons to pay off your real estate mortgage — (1) decrease expenditures in your retirement years, (2) use the mortgage interest rate that you will save to increase your retirement savings, and (3) build more equity, in case you need it as income on which to live later. Paying off your mortgage is a good thing to do, regardless of what the real estate market is doing.

Downsize Your Home. If you are living in a home that is larger than what you need, do not hold on to it for sentimental reasons. Selling the larger home for a smaller one can: (1) give you a smaller mortgage payment than you currently have, or (2) purchase a smaller home outright with no mortgage. It also means less physical upkeep by you, as well as less maintenance and repair costs in the future during retirement. Please keep in mind that there will be selling, moving and new home renovation costs that must be deducted from the sale proceeds.

Sell the Extra Real Estate. If you have a second home or vacation real estate that will not be your retirement residence, you may wish to sell this extra real estate now, putting the sale proceeds into your retirement savings. You can put the mortgage and annual upkeep payments for this property into your retirement savings, too.

Reverse Mortgages. Though these products have been around for some time, we are hearing a lot about them lately. Such mortgages give you 50 percent or more of your home’s value with no mortgage payments, which are collected by the lender at your death or if you sell the real estate.

Beware! Reverse mortgages should be used only as a last-ditch effort at survival. The interest and fees added to your mortgage debt can be very costly. If you must consider a reverse mortgage, here are a few smart tips:

• There are only a few reverse mortgage products now on the market, but others are coming soon. So, wait two or three years to garner more options and possibly better products.

• You must be 62 to qualify for a reverse mortgage loan, but wait as long as possible to take such a loan. The younger you are, the smaller the loan and higher the cost over time.

• Check out all of the products on the market and get independent financial counseling on the best one for you. They may look the same upfront, but the number of years and the loan value differ greatly between products, as well as the costs over time.

• Do not buy into the hype! Mortgage brokers receive a large commission on these products. If you feel you are being pushed in this direction, check out other lenders.

• Plan ahead. If you move and sell your real estate, the lender receives all that is due on the reverse mortgage from the sale proceeds. This could actually leave you in a worse financial state.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Realtor

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Do It Now! Start Planning Your Retirement Strategy

noreply@blogger.com (Stephan) — Mon, 30 Apr 2007 14:27:00 +0000

by Steve Dolan

Financial Planning for Retirement

You've worked hard all your life and one day the big day will arrive - you'll retire. For now it probably still seems a long way into the future, but the reality is that the sooner you get ready for retirement, the more you'll benefit when that day comes. Starting in your 20s or 30s is the best time to start planning financially for your retirement, but most of us are a lot close to retirement before we really get serious about preparing. But if you've ever heard of compounding when it comes to investments, then you’ll know that the more time you give your money to compound, the faster it grows.

The other important thing to remember is that expected lifespans have increased substantially in the law few decades. Not that long ago, someone would retire from work, maybe enjoy their retirement for five years or so, and that was it. It's increasingly common for both men and women to live well into their 80s, with the average expected lifespan hovering around 80 years old. It's very possible tat you'll retire and love another 20 or 30 years afterwards. Yes, you will probably be able to survive with government assistance - but that's all it will be, survival.

Yes, financial planning for retirement takes some effort; it doesn't just happen by itself. You'll need to dedicate time and discipline to preparing your strategy. But it will well and truly be worth it when you reach your golden years. If you've never been taught anything about your finances, this whole concept of preparing a retirement plan can be very daunting. You'll need to spend some time acquiring some knowledge and skills. It's also important that you don't focus so much on retirement that you leave yourself without enough funds to enjoy your life right now. Balancing between present and future needs can be very difficult, but if you decide to succeed, you'll find a way.

The good thing is that there's a huge amount of information available to help you learn about financial planning for retirement. So there's no need to panic. You don't need to become a genius at trading stocks; you only have to know the basics of how it all works. Spend some time searching the Internet for information, and you'll find lots of reputable bodies, including stock exchanges, that provide free information. There are also retirement planning companies that specialize in helping people just like you.

Remember, too, that you don't need to know everything yourself, or even do it all yourself. Plenty of financial planners can help you with your plans and goals, and some will even perform transactions on your behalf. Ask around for referrals from family and friends, and arrange to go and meet planners from a few different firms. This will help you decide which one you feel comfortable dealing with. It's always worthwhile learning at least a little about different sorts of investments, so that you can fully understand the decisions you're making, but a good financial planner will still be able to do any necessary research on your behalf.

Retirement probably still seems a long way off, and it's probably much easier to put off doing some financial planning until tomorrow. But the earlier you get started, even if it's just expanding your financial knowledge, the more you'll benefit in the end. Time has a tendency to disappear much quicker than we expect, so don't suddenly wake up at the last minute and realize you've missed your chance to retire in financial comfort.

Steve Dolan is an avid investor and will be well prepared for his retirement. If you would like to secure your future too click Retirement Investing to find out more

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Discover How You Can Afford to Retire Early in Luxury

Panama for Retirees and Pensioners

noreply@blogger.com (Stephan) — Mon, 23 Apr 2007 15:10:00 +0000

by Roberto Bell

Panama is an ideal retirement location for somebody who would love the idea of having either the Atlantic or the Pacific Ocean on his doorstep. It is a country for those who appreciate nature in all its forms, from sparkling clear waters to intricate coral reefs, from towering mountains and volcanoes to diverse variety of birds and other wildlife.

Panama is very accessible to those who wish to retire there. For pensioners, Panama has the Tourist Pensioner Visa. This Visa allows a retiree to settle indefinitely in Panama without citizenship provided that he annually report to the Panama Immigration Department to prove that he is still receiving pension from the government or a retirement corporation. The monthly pension minimum requirement is $500. And this should be backed by pension statements. The minimum age requirement to be a pensioner in Panama is 55 for women and 60 for men.

When you have a Pensioner Visa, you will have some importation tariff breaks as well as generous discounts. You can have a swinging good time in Panama because you are generally entitled to receive 50% of the recreational and entertainment activities. You will have the means to travel all over Panama because you have public transportation as well as hotel accommodation discounts. Aside from these, you have discounts for medical services and monthly utility bills. This Visa doesn't come with a passport, but it entitles you to get a national identity card to facilitate your financial and official transactions.

Panama is not only for people who expect a monthly pension. Panama also welcomes those retirees who have received a lump sum upon retirement. In this case, retirees who can give proof that they have enough retirement money will be given a Private Income Retiree Visa. Before this type of Visa is approved, money should be deposited with the National bank of Panama and the account returns should give the retiree a minimum monthly income of $750. Unlike the Tourist Pensioner Visa, this type of Visa loses validity every 5 years so a renewal must be undertaken by renewing the bank account deposit. This type of Visa also grants one use of a Panamanian passport though without the benefit of nationality.

As a Private Income Retiree Visa holder, you will get a one-time duty-free exemption privilege when you import household goods. The maximum duty-free import amount is $10,000. And every couple of years, you will have an exemption for importing cars.

One other way by which you can spend the rest of your days in Panama is through the Person of Means Visa which is awarded to people who have a one-year certificate of deposit in any Panama account. The minimum amount of deposit required is $200,000. There is going to be one other renewal on the second year where the deposit also needs to be renewed. Upon the next renewal, the Visa becomes permanent and after five years of being a permanent Person of Means Visa holder, one can apply for nationality.

Smythe Bradley is an expat living in The Republic of Panama. He has published many articles on offshore asset protection in panama, panama visas and residency, as well as many other expat issues.

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Discover How You Can Afford to Retire Early in Luxury

Panama City - What A Great Place To Visit

noreply@blogger.com (Stephan) — Thu, 15 Mar 2007 14:47:00 +0000

For the past two years, I've been promoting Panama City, Panama as a great place to invest in real estate, and have been proved absolutely right. In a stable, tax-efficient environment, prices have been moving steadily upwards.

To aid this promotion, I've personally spent around six weeks in Panama during this period, and wanted to write to give those who perhaps don't know the area a chance to understand what there is to do, where to visit, what it's all like and why tourism and business activities are booming.

Airport - coming from the UK, I flew London-Miami and then a 2.5 hour flight Miami-Tocumen (PTY). Tocumen airport is around a 20 minute taxi ride from the centre of Panama City. For US citizens, direct flights into Tocumen are available from many of the larger cities in the US. These flights tend to get booked very quickly, such is the demand for travelling to Panama City at this time. The flights were always fine, PTY airport is a little old fashioned and slow, but generally it all runs OK.

There is a smaller domestic airport in Panama City, used for local flights within the country. I used this to travel towards Boquete - and will go into this later.

The City itself has a severe shortage of quality hotel space, typically running at around 85% occupancy rate. Room rates for the good hotels are around $100-150 per night. I'd recommend the Radisson Decapolis and Intercontinental Miramar as my two favourites. We are actually developing a condo-hotel product right now to satisfy the ever-growing demand for hotel rooms.

Living expenses are low. Very low. For example, a good meal will be $6-10. A taxi $2. Coffee in a shopping mall $0.65. etc. etc. Even drinking in the most happening bars will see change from $4 for a cocktail.
There are plenty of restaurants offering all sorts of styles of food, with good service and good prices.

There are a couple of big shopping malls, very much in line with a US city in terms of style, shops etc. But, unlike most US malls, they are just so busy. In fact, it's almost tricky to walk around them. The economy is booming to such an extent that the local Panamanians are spending, spending, spending in the malls. We found clothes to be really cheap - for example, t-shirts from $1 etc. Luxury items are not cheap though, so the Rolex watch you've dreamed of will be just as expensive in Panama as anywhere else.

From the City, you have many options for things to do within an hour. You have the Panama Canal/lock (a wonder of engineering), rainforest (we visited the Gamboa resort), a good golf course (we visited Summit Golf Course), beach (we visited Coronado, and will be developing a beach resort there shortly), casinos, boat trips, shopping etc.

We didn't bother renting a car as taxis are so cheap and the driving style is a little manic. Thus, rely on taxis - the only issue is that when it rains, the taxis very quickly become taken.

The Gamboa resort offers the most wonderful wildlife experience, with tours encompassing views of the canal and so many animals - monkeys, caymans, sloths, dragon flys, birds of prey etc. all in their natural habitat. You can stay at the resort, with all the usual luxuries that a luxury hotel can offer. I'd recommend doing so for 1-2 nights.

Coronado, about 45 minutes drive away from Panama City, is a town where the wealthy Panamanians go to retire for the weekend. The combination of year-round sun, beaches and golf provide an irrestible offering. This is an excellent location for a second home. The homes tend to be very large and impressive - we visited several, each with on-site butler/maid service, huge pools etc.

Panama City itself is often compared with Miami. It has a similar look and feel, being right on the water-front and consisting of many modern, tall buildings. It's a much nicer place to be, I have to say, having visited both. Panama is slower, more genuine, lower cost and just feels better. That may change, of course, as it almost tries to reinvent itself to be more Miami-like.

Spanish is the common language, but everyone is now speaking English (well, American English). The schools teach it to all children these days. All business is transacted in English. However, some knowledge of Spanish will help you get around with taxis etc.

Panama has the lowest cost of living and the highest income per person than anywhere else in Central America. Its tourism industry is growing rapidly. Its real estate market is moving upwards. The pensionado programme is incentivising retirees to move to the area. The tax regime incentivises investors to come to the area. Its almost equatorial location provides a wonderful climate, offering year-round sun.

A UK developer has just announced a $700m contract to build close to Panama City, in what will be one of the largest developments ever undertaken in the world - some 2,750 acres. This shows the global confidence being put into Panama, and bodes well for the future of the City/country.

I continue to visit Panama regularly, have some wonderful friends/associates there and have pleasure in advising clients in investing into the local real estate market. I have personally purchased in Panama, and am considering relocating there within the next 24 months - what more can I add?

If you wish to discuss the City, travel, tourism or real estate within Panama, please do feel free to ask.

About: Andrew Richardson, Managing Director of www.property4wealth.com and Expert Adviser for The Property Investor magazine and can be contacted via email at andrew.richardson@property4wealth.com
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Discover How You Can Afford to Retire Early in Luxury

What To Do After Retirement

noreply@blogger.com (Stephan) — Tue, 07 Nov 2006 04:56:00 +0000

When some people start reaching retirement age, they don’t want to retire. All their life, they have worked hard, thinking about the day they could retire. However, the actual act of retirement can be a little scary to some people. After all, they have no idea what to do with themselves in retirement. Instead of being fearful of retiring, you should embrace the fact that you have worked hard and now get to rest a bit because of it. Take a look at these things you can plan for after your retirement.

Travel

One of the best things you can do after retirement is travel. Some people spend their whole lives wanting to go to one place or another, but never actually finding the time and finances to do so. When you hit retirement age, most of your major purchases will likely be paid off, so you will have more available cash to spend. In addition, you will have the time to travel. You can travel at any time of year, without worry. You can use this to your advantage and get the best deals in off peak season traveling. Just relax and enjoy yourself!

Hobbies

Another thing you can get into after retirement is a hobby. If you already have a hobby, you can spend more time doing it. If you don’t have a hobby, you can find one. Take some time to think about what you love doing and finding a way to enjoy that even more. You may find others like you that enjoy the same things. You might want to play golf with your other retired friends, or start making model airplanes. Be sure to enjoy your time off from work.

Family

Many people only see their family once or twice a year, at major holidays. However, you can have more time to visit family after retirement. You can take trips to see those who live far away or you can simply plan a once a week visit to see the grandchildren.

Author: Jason Dunn
Jason Dunn is a writer and administrator for Calculator Retirement, a site that specializes in retirement.

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Discover How You Can Afford to Retire Early in Luxury

How to Avoid Ruining Retirement

noreply@blogger.com (Stephan) — Wed, 25 Oct 2006 01:15:00 +0000

Wealth seems to be everyone's dream; the ability to relax a little more, to not stress so much about finances and to enjoy the "good life." So often it is believed that wealth is only attainable by those with large incomes. Those with smaller incomes may not put anything aside, assuming such small savings won't make enough of a difference in the long run. In my experience in the financial services industry, there were several times when I would help an elementary school teacher or janitor with their sizeable 403(b) account. Obviously for them, small savings over time made a big difference. In the same category are those who have large incomes and assume they always will. They constantly spend to the top of their income level and set little or nothing aside for the future. Yes, I also remember helping doctors or attorneys take loans out of their 401(k) accounts. I found that it wasn't so much what you made but everyday decisions that determined long-term success.

When I once asked a janitor of an elementary school how he had accumulated his 1.7 million dollar 403(b) he said, "I just started putting money into it when I first came to work here, a little bit each paycheck." Now, 40 years later as he approached retirement with a steady pension and a large 403(b) account he was financially wealthy. Avoiding financial mistakes is the key for anyone to retire well. This article lists some of those mistakes and ways to steer clear of them.

Waiting Until You're 55

Not starting to save soon enough is number one on our list. Beginning early to save for retirement can make a huge difference in the long run. To illustrate this, let's assume we have two people saving for retirement, we'll give them simple names that correspond with the age they started saving, Mr. 25 and Mr. 45. Mr. 25 puts $3,000 into an IRA each year until he retires at age 65. Assuming he gets an 8% growth rate on average, he amasses $839,343 or almost a million dollars by age 65. If Mr. 45 were to put the same amount aside but start at age 45 instead of 25, he would only have $148,269 saved, definitely not enough to start retirement with. For Mr. 45 to end up with the same amount as Mr. 25 he would have to save almost $17,000 per year until age 65. $17,000 per year for 20 years equals $340,000 cash out of pocket, whereas $3,000 per year for 40 years is only $120,000. Mr. 25 only had to save about one third the amount Mr. 45 did all because he started early. Letting compounding do the work for you allows you more money for other things you want.

1% Is Enough, Right?

Putting aside too small a percentage of income is another mistake people make. It may be difficult when just starting out and times are lean, but you will thank yourself in the long run if you make this a priority. Going back to Mr. 25 again from above, if he would have only put away $1,000 each year, his ending balance would have only been $279,781 in 40 years, again assuming the 8% growth rate. We know how much $3,000 per year would have saved him, but what about $6,000 per year? He would have $1,678,686. Doubling his savings doubles his end result.

I'm a Millionaire!

Not realizing just how much needs to be saved in order to retire is our next mistake. While the 1.6 million in the above example may seem like a lot of money, it won't pay the bills in 40 years. Assuming prices go up by 3% each year, 1.6 million will only have the buying power of a half a million dollars in 40 years when Mr. 25 wants to retire. Assuming Mr. 25 lives to the ripe old age of 90, a 1.6 million dollar account will give him about $2,300 dollars of income each month in real terms. This assumes that he earns 6% on his money after he retires. Does it seem odd that our 1.6 million dollars is now only worth $2,300 dollars per month? Inflation is the culprit. In actuality Mr. 25 will be getting about $9,800 dollars out of his account each month in retirement, but because prices for everything will be so much higher in 40 years it will only be able to buy the same amount that $2,300 dollars buys today. This is what "real terms" means. Mr. 25 will have to determine if $2,300 per month will be enough to live off of in retirement. Most likely it will not be enough unless he really likes ramen noodles.

Do I Get a Checkbook with my 401(k)?

Using Retirement Accounts as income before retirement is becoming a mistake that more and more people are making. This is especially true for those who have employers contribute to their retirement accounts. While it is tempting to assume this is just extra money you can spend, it has terrible long-term effects. Taking as little as $5,000 out of your retirement account at age 30, is like taking out $35,000 in 35 years. If it would have been allowed to stay in the account and grow over 35 years, it would have accumulated to almost $35,000. The other problem is that you will most likely have to pay taxes and a 10% penalty on the money because it is being taken out before age 59 1/2. Now to get $5,000 after the taxes and penalty, you have to take out over $8,000, which would equal over $55,000 lost in 35 years.

I'm Sure my Basket Can Hold All of This

Not Diversifying or putting all your eggs in one basket is another financial blunder. I was a retirement specialist working with 401(k) and 403(b) account owners when the market crashed in 1999 and 2000. How vividly I remember talking with people in their fifties and sixties who in February of 2000 (right before the NASDAQ started falling) wanted to put their entire retirement account into technology. I discussed with them the advantages of diversification especially in such a volatile market. Some listened, but most didn't. The comment I remember the most is, "I don't have enough money to retire so I need it to grow really fast." The result was buying in at an all time high and then either jumping out along the way down or riding the market to the bottom. Those who stayed in for even a year lost more than half of their retirement in a technology fund.

Compare that to those who were diversified across several markets, domestic and international, and several types of investments, equity, fixed-income and short-term. Someone in their fifties, planning on retiring in 10 years would be diversifying if they had about 60% in stocks and the rest in bonds and money markets. This type of portfolio still lost money during that volatile time, but not nearly as much as a technology fund did. Those with a diversified portfolio lost about 5-15% in that same time period that the technology sector lost 50-65%. Trying to earn money for retirement by putting all your eggs in one basket, especially when you are close to retirement, is almost as risky as using the slot machines in Las Vegas. If you are behind in your savings, your best bet is to start contributing the maximum allowed and push back retirement for a few more years.

Won't Uncle Sam Take Care of Me?

Relying solely on Social Security will leave you with little income in retirement. In a message to the public issued by the Social Security and Medicare Board of Trustees in 2005 they stated, "We do not believe the currently projected long run growth rates of Social Security and Medicare are sustainable under current financing." They went on to say that without major changes to Social Security, it will begin to fall short in 2017 and will only be able to fund 74% of benefits by 2041. The suggested solution is to either increase taxes 15% or decrease benefits 13%, neither of which are good for retirement. To continue to live the same lifestyle that you are accustomed to, saving for retirement is essential.

Another Trip to the Doctor?

Not preparing for healthcare in retirement is something that we have recently had to think about. There is a good possibility of Medicare not being able to meet our needs in the future or we may need our own health insurance to carry us until Medicare kicks in. Being prepared to pay for premiums or medical expenses in retirement is becoming a necessity. A 2004 study found that an average retiree spent 22% of their income on healthcare costs. For someone on a $50,000 a year retirement income, this equates to $11,000 per year. Take that over a 25 year retirement and you are up to $275,000 for healthcare costs alone. Long-term care such as nursing homes or in home assistance is another cost that should be prepared for. With less and less employers covering healthcare in retirement, this is another area that is often overlooked when planning for the future.

Avoiding these financial mistakes will determine your quality of life in retirement. The next step is to get started. There are many brokerage firms that will educate you about your options at no cost. They can help you open a retirement account or determine if you are contributing enough to your current retirement account. The can also help you decide on what types of investments are appropriate given your age, timeframe and risk tolerance. The most important thing to remember is that it is never too late to start saving and even a little money set aside makes a big difference in the long run.

About The Author

Emma Snow is a writer who specializes in financial planning. She has worked in the financial industry for over eight years. Currently Emma works on a Finance and Investing site at http://www.finance-investing.com and Investing Partners http://www.investing-partners.com.

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Discover How You Can Afford to Retire Early in Luxury

Retiring In Costa Rica – Why You Should Consider It

noreply@blogger.com (Stephan) — Wed, 26 Jul 2006 23:16:00 +0000

Many people are now seeking to retire in Costa Rica - often called the “Jewel of Central America”, and its popularity is growing.

So, why are more people than ever looking to retire in Costa Rica? The major reasons for retiring to Costa Rica are:

. Close proximity to the US

. Climate

. Natural beauty

. Culture

. High standard of living for a very low cost

Quite simply, social security checks go a lot further in Costa Rica than they do in the US.

Geographical Location

For many people retiring to Costa Rica, one of the major advantages is its geographical proximity to the US.

Costa Rica is only a few hours flying distance to the southern U.S. mainland. Flights from Costa Rica to the US and Europe are frequent - making traveling easy. In addition, the time difference between Costa Rica and most US cities is just a couple of hours.

Cost of Living

Another reason for retiring in Costa Rica is that the cost of living is so much less than in the US.

For example, dining out will cost you around $12, and a maid will cost you just $150 a month. General household items are about 60% cheaper than in the US, and utility bills are also far cheaper.

In fact, you can quite easy live comfortably on a couple of thousand dollars a month.

Tax Status

When retiring to Costa Rica, one of the major advantages for Americans is its tax haven status - Americans retiring in Costa Rica do not pay income taxes on social security received from the U.S.

Cost of Real Estate

When you retire in Costa Rica, you’ll enjoy affordable housing - houses of an equivalent standard to those in the U.S. are available at a far cheaper cost.

While real estate has risen in price over the last few years, you can find small, basic homes from around $80,000 – with a choice of homes to suit your pocket and your lifestyle.

Costa Rican law and its constitution protect private ownership of land - and foreign nationals get the same rights as citizens. Costa Rica has a history of stability and democratic government.

The comfort of a stable political environment - as opposed to other Latin American countries, means retiring in Costa Rica gives you peace of mind, due to your legal rights.

Of course, if you buy a house when retiring in Costa Rica you become part of the real estate boom, that has seen houses bought for $30,000 15 years ago, rise to around $700,000 today.

Healthcare

For many years, Costa Rica has provided healthcare services to visitors from around the world - where they’ve been able to get world class healthcare at a fraction of the cost of that available in the US and Europe.

When retiring in Costa Rica, most people take out the medical insurance offered by the government’s insurance company - this offers cover at just $900 per year for an adult male, aged between 45 and 50 - and this covers 80% of medical costs!

In fact, the United Nations consistently ranks Costa Rica’s health services the best in Latin America - and in the top 20 worldwide.

When retiring in Costa Rica, it’s nice to know that as you get older, you can enjoy some of the best healthcare around - at a fraction of the cost of the US or Europe.

The Country

Costa Rica is a very small country of around 32,000 square miles - and a population of only 4 million.

Many people retire to Costa Rica for the slower pace of life - and because it’s one of the safest countries in the world. In addition, the infrastructure is first class.

Costa Rica is also a beautiful country with diverse scenery. With stunning sandy beaches, mountains, rolling hills, beautiful lakes and huge volcanoes - Costa Rica is truly a country of beauty and wonder.

Another attraction for many retiring to Costa Rica is the climate. For example, if you want the heat of the beach you can have it. However, if you like a cooler, less humid climate - then you may prefer the "Eternal Spring" of the Central Valley and San José. Here the average year round temperature is in the 80’s during the day – falling to the 60’s or 70’s in the evening.

You Deserve It!

Retiring in Costa Rica offers people a different, less stressful way of life, in a beautiful country - and at a cost that will allow you to get much more for your money.

When you retire, you deserve a quality lifestyle - and that’s what Costa Rica can offer you.

Discover Costa Rica today!

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Panama Real Estate - Why Is Everyone Talking About It?

noreply@blogger.com (Stephan) — Fri, 14 Jul 2006 23:20:00 +0000

Whether you’re a seasoned property investor looking to add a little sparkle to an existing global portfolio or a first-time investor searching for that elusive “win-win” opportunity, it's important to assess opportunities based upon a risk/reward philosophy. Basically, you need an area and development that is going to rise in value but that doesn't carry too much risk - for example, consider avoiding first time developers, do cost per square foot (or meter) comparisons vs. rival developments etc.

With all that in mind, investors in the US and UK are now all talking about Central America, and particularly Panama City (Panama) as the next really hot real estate market.

I've spent a year investigating this, visiting the area, speaking to the appropriate organisations, meeting with developers, comparing developments etc. and I believe these investors are absolutely right to be considering the area. These are some of the reasons why:

The Panama government has been instrumental in kick-starting inward foreign direct investment into the real estate sector. This influx of investment generates its own momentum in terms of capital appreciation. The good news doesn’t end there, however; major infrastructure development is ahead, including: Better roads, creation of new economic zones with tax incentives and special high tech facilities designed to nurture a high-tech economy boom. Significantly, there’s also the widening of the Panama Canal (a stone’s throw from Panama City investment opportunities). A mammoth project, due to run for the next 10 years, spelling very positive news for sustained high rental yields and occupancy rates.

All of these plans illustrate that the Panamanian government are committed to a sustained programme of making their country more desirable, their people more wealthy and their economy more stable. These are all great indicators that the fledgling investment property sector in the country is being built upon solid and sustainable foundations.

Andrew Richardson, Managing Director of www.property4wealth.com and Expert Adviser for The Property Investor magazine and can be contacted via email at andrew.richardson@property4wealth.com
Article Source: The FREE Article Distribution Center

Discover How You Can Afford to Retire Early in Luxury

Preparing To Enjoy Your Retirement

noreply@blogger.com (Stephan) — Mon, 26 Jun 2006 01:46:00 +0000

It's a great idea to get yourself ready for retirement and there is no better time to start than as early as possible. This, of course, helps you plan to have enough funds set aside for the future.

Whilst children set the scene for your cost base in the middle years, there is often enough time to get ready for your retirement if you plan things right around that time, when you might well have some spare cash.

Indeed many individuals have helped their children through college and they don't miss that money anyway, so using it towards their retirement is an ideal solution.

These years may be exactly the time to take other investment actions as time may be available to explore and speculate a little!

It's important to leverage the income you have, by reducing costs associated with mortgages and other loans, as they are often expensive - so this would be a first step to set off on the adventure of becoming financially secure.

The last thing you want is to have loans still set against perhaps the lower income you have at that time. Though also a good time to work on opportunities to make a little more as well!

It's also a great time to enjoy life more - even in the 10 years before you actually retire. It's a time where you need the courage to do some things you might consider putting off - like travel, or even some perhaps more challenging investment strategies.

This is the time to try out new things, with minimal risk to leverage the monies you have.

There are many opportunities around, often to be found on the internet these days, that utilise the best capabilities of the more experienced of us, in our 50's, and can benefit significantly financially.

These are not the here-today, gone-tomorrow merchants, more the experienced opportunities that can be carefully measured in terms of downside.

Definitely worth a look.

And as you take this care of yourself, by being prepared for your future ahead, not only do you keep yourself young by having a mentally stimulating time, but your overall health can get even better too.

Thus ensuring many years of enjoyment for both the individuals in a partnership

At the end of the day, being aware of your money circumstances well ahead of the time, will open up a lot of ideas for you, which, whilst initially seeming to be daunting, might well be just the thing to add spice to your middle years and develop new experiences.

These can combine the challenges of getting your finances right, as well as learning some new skills, that might well be a source of joy for years to come

At this exciting cross-roads of your life, you have choices. Take the time to be really honest with yourself about what you truly want to achieve - what are the hopes and dreams you have and what are you going to do about them.

Find ways to create the resources now, as well as for your future - don't leave all these exciting things until you get to retirement or time and health might catch you out.

Above all, be prepared to stop yourself thinking about it, prevaricating on what might be or what is to come.

Using an old business adage, be prepared, plan your time and at the end of the day...

JDI - Just Do It!

© 2006 Martin Haworth is a coach, writer and entrepreneur. He has a number of projects on the go at any time (in his early 50's!). His current website is at What A Way To Make Money!.com
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Discover How You Can Afford to Retire Early in Luxury

Preparing To Enjoy Your Retirement

noreply@blogger.com (Stephan) — Sun, 09 Apr 2006 02:03:00 +0000

- By: Martin Haworth

It's a great idea to get yourself ready for retirement and there is no better time to start than as early as possible. This, of course, helps you plan to have enough funds set aside for the future.

Whilst children set the scene for your cost base in the middle years, there is often enough time to get ready for your retirement if you plan things right around that time, when you might well have some spare cash.

Indeed many individuals have helped their children through college and they don't miss that money anyway, so using it towards their retirement is an ideal solution.

These years may be exactly the time to take other investment actions as time may be available to explore and speculate a little!

It's important to leverage the income you have, by reducing costs associated with mortgages and other loans, as they are often expensive - so this would be a first step to set off on the adventure of becoming financially secure.

The last thing you want is to have loans still set against perhaps the lower income you have at that time. Though also a good time to work on opportunities to make a little more as well!

It's also a great time to enjoy life more - even in the 10 years before you actually retire. It's a time where you need the courage to do some things you might consider putting off - like travel, or even some perhaps more challenging investment strategies.

This is the time to try out new things, with minimal risk to leverage the monies you have.

There are many opportunities around, often to be found on the internet these days, that utilise the best capabilities of the more experienced of us, in our 50's, and can benefit significantly financially.

These are not the here-today, gone-tomorrow merchants, more the experienced opportunities that can be carefully measured in terms of downside.

Definitely worth a look.

And as you take this care of yourself, by being prepared for your future ahead, not only do you keep yourself young by having a mentally stimulating time, but your overall health can get even better too.

Thus ensuring many years of enjoyment for both the individuals in a partnership

At the end of the day, being aware of your money circumstances well ahead of the time, will open up a lot of ideas for you, which, whilst initially seeming to be daunting, might well be just the thing to add spice to your middle years and develop new experiences.

These can combine the challenges of getting your finances right, as well as learning some new skills, that might well be a source of joy for years to come

At this exciting cross-roads of your life, you have choices. Take the time to be really honest with yourself about what you truly want to achieve - what are the hopes and dreams you have and what are you going to do about them.

Find ways to create the resources now, as well as for your future - don't leave all these exciting things until you get to retirement or time and health might catch you out.

Above all, be prepared to stop yourself thinking about it, prevaricating on what might be or what is to come.

Using an old business adage, be prepared, plan your time and at the end of the day...

JDI - Just Do It!

© 2006 Martin Haworth is a coach, writer and entrepreneur. He has a number of projects on the go at any time (in his early 50's!). His current website is at What A Way To Make Money!.com
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Discover How You Can Afford to Retire Early in Luxury

5 Tips To Keep Marital Bliss Alive After You Retire!

noreply@blogger.com (Stephan) — Thu, 31 Mar 2005 00:04:00 +0000

by Allie Ochs

Let’s face it retirement is a time of great transition for spouses. Ample free time and drastic lifestyle changes can be a burden or a blessing for your marriage. Regardless of whether one or both spouses retire, the secret to a smooth transition is planning before you retire. For example, if one or both of you have been task-driven individuals with their own careers, a 7/24 marriage may not be to your liking. Retiring couples who have lived independent and relatively separate lives may become frustrated and bored being joined at the hip. Others may rejoice in spending more time with each other. The most important step to take prior to retiring is:

1. PLAN AHEAD. Know your personality and design your golden years accordingly. If you are a busy bee needing outside stimulation, plan ahead how you will keep yourself occupied. Get a part-time job, volunteer, write a book, get a pup, complete home renovations, play golf, join an organization or take up a hobby. Know what you will do with your excess time before you get on each other’s nerves.

While retirement is a natural process of live, most retirees experience the same effects as with the loss of a job. No longer needed at work coupled with reduced social contacts many retirees question their identities. Feelings of worthlessness or even depression are common and can harm the quality of your relationship. You owe it to yourself and your spouse to:

2. LIVE WITH A PURPOSE. Shift the focus from yourself to others. Contribute your knowledge and life experience to organizations. Get involved with youth groups helping young people flourish. Socializing with your children and grandchildren will keep you young and alert. Read, cruise the Internet, exercise, learn a new language or skill. Do anything that keeps your brain working and your heart filled with passion.

If only one spouse is retiring, conflict over who does what and how time will be spent, may arise. The at-home spouse may be expected to do more chores including those they never did before. Arguments over time allotted for chores or play may develop. To avoid conflict:

3. EXERCISE MUTUAL RESPECT. As the still-working spouse, don’t penalize your retired partner for having reached the golden years. Respect that your spouse deserves the freedom, time, enjoyment, respect and dignity of retirement. While he or she can be expected to pitch-in more, respect that your spouse needs the freedom to find his or her purposeful life as a retiree. Again, talk about and plan ahead how time will be spent prior to retirement, it will save you many arguments.

Staying busy has proven to be beneficial for all retirees. How to keep busy may vary from one person to the next. Because of diverse expectations it is often difficult to find the right blend of shared hobbies and time alone. Some couples are thrilled to do everything together, while others need and enjoy some time on their own. Allow each other to:

4. BE HAPPY. Retirement should be a happy time. It is about doing the things you couldn’t before. This could be anything from sleeping in to travelling to unknown places. Anything from learning about astrology to helping provide clean water in an undeveloped country. Whenever possible you should support your spouse to live a happy retirement in alignment with his or her personality. Always remember, your partner is just as important as you are.

Many retirees use this time to strengthen their marriage. Previous work distractions and time commitments often lead to stale marriages. Now is the time to create intimacy and secure marital bliss in your sunset years. Get busy and:

5. KEEP THE LOVE GOING. Love is not something that you have, it is something that you do. Now that you have more time, be romantic. Plan for romantic dinners, movies, vacations or picnics. Compliment each other, cherish each other and surprise each other with romantic treats. Take time to talk to each other, communicate your feelings, your fears and your passions. Make love whenever possible, it is a sure way to create intimacy. Remember love has no expiry date and a loving relationship is your ticket to glorious golden years.

© 2005 Allie Ochs

About The Author

Allie Ochs is a speaker, relationship coach and author of: Are You Fit To Love? Her book has received the honorable mention at the USA 2004 Best Book Awards. She has appeared on TV, Radio and is published in numerous magazines and newsletters. Visit her website www.fit2love.com and take the Fit 2 Love test. allie@fit2love.com
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Discover How You Can Afford to Retire Early in Luxury

How To Purchase An Annuity

noreply@blogger.com (Stephan) — Mon, 07 Feb 2005 03:47:00 +0000

by: Jakob Jelling

An annuity is a contract with an insurance company to make periodic payments for retirement income and sometimes other purposes.

There are basically two types of annuities.

Fixed Annuities

A fixed annuity earns a guaranteed interest rate over a specific period of time. When this period of time expires a new interest rate is set for the next period of time. Is important to note that a fixed annuity is not backed by the Federal Deposit Insurance Corporation (FDIC).

Variable Annuities

Variable annuities offer a much greater range of investment funding options than fixed annuities. Because their performance depends on the investment options your principal and return are not guaranteed. Some variable annuities offer a fixed accounts alternative that guarantees principal and interest a lot like fixed annuities. You can then divide your funds between the low-risk option as well as high-risk options such as stocks.

Purchasing Annuities

There are two ways to purchase annuities. You can either pay the premium using one lump sum or you can make ongoing contributions to what is called a flexible payment annuity. With a flexible payment annuity you can contribute money pretty much any time you want. Another benefit of variable annuities is that they allow you to transfer money from one account to the other without having to pay taxes on any earnings you make as a result of the transfer. The disadvantage of variable annuities is that you will most likely pay higher fees than you would with a fixed annuity.

If you are wanting to save money for retirement a fixed tax deferred annuity may be the best option for you. With a tax-deferred annuity you don't pay taxes until you make a withdrawal or begin receiving annuity income. This can allow you to accumulate a greater amount of money over an extended period of time. You should think carefully though before putting money into a tax-deferred annuity. If the money is needed before age 59 and you withdrawal the money the IRS may apply heavy penalties. In addition the insurer may also impose its own withdrawal penalties which are often cause surrender fees.

You can also purchase what is called an immediate annuity. When you purchase an immediate annuity you make a one-time payment and distributions usually begin within 30 days. Immediate annuities can be fixed or variable. Because an immediate annuity can provide stable income payments guaranteed for a selected period of time, this is a good option if you need a financial vehicle that can provide guaranteed income for life.

Before purchasing an annuity is important to speak with a professional financial adviser so you have an understanding of the various tax consequences of an annuity as well as the expenses which may be associated with the contract.

About The Author

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

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Discover How You Can Afford to Retire Early in Luxury

At Home In Your Overseas Home

noreply@blogger.com (Stephan) — Sun, 23 Jan 2005 18:34:00 +0000

by: Jakob Jelling

Homeownership, in any form, is a big step for most people. In fact, it's often one of the biggest financial decisions of our lives. Despite that, sometimes a homeowner in one country will want to buy a second home in another country, whether for a vacation home or future retirement. Usually they make this decision after realizing they visit the same country every chance they get, but sometimes it's because they have relatives or friends nearby too.

Anyone considering buying a second home overseas will of course want to make sure they're comfortable with the cultural and language differences they're bound to encounter. If you're used to visiting the area regularly, you will no doubt already be familiar with some of these. To be sure, you may want to rent a home in that area first, maybe even for a few years in a row, before purchasing your own home.

When you're certain you want to buy, be sure to enlist the help of real estate and legal professionals in your chosen country. This is a good idea of course even in your home country! When shopping, you will want to be as thorough as you would when shopping for your main home. Inspections, neighborhood comparisons, and location considerations are just as important. You may want to talk with other homeowners in the area to ask about home construction quality, security issues, etc. You will need to make suitable financing arrangements too, and consider current interest and exchange rates where needed. Don't forget possible tax implications in your home country as well.

Finally, be sure to think about arrangements for someone to look after your second home when you're away. It will need to be checked and maintained regularly, just as your main home.

About The Author

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
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Discover How You Can Afford to Retire Early in Luxury

Australia's Fraser Island – Escape Forever

noreply@blogger.com (Stephan) — Tue, 11 Jan 2005 02:54:00 +0000

by: Glenn Murray

For all its conveniences, modern living leaves a lot to be desired. We spend our days enduring the ever-increasing pressures of work, the city’s oppressive unfriendliness, the daily commuter grind and the aggressive reality of impatient road-ragers.

Is something missing?

Unfortunately, work is a reality for most of us. So too is city and suburban living, dreary weather, pollution, traffic… But it doesn’t have to be all there is to life. Try something that puts you in touch with who you really are. Try something elemental. Try something that soothes your soul.

Try Fraser Island.

Fraser Island isn’t just an island paradise. It’s a unique and luxurious combination of Australia’s rich natural heritage, its earthy roots, its wholesome majesty, and its refreshingly simple essentials. It’s a chance to touch the fine sands, to drift in the temperate water, to bask in the sun that seems all yours… It’s your chance to partake of a life that most Australians have forgotten.

Spend a week on and in turquoise waters, a week without shoes with the sand between your toes, a week fishing and perhaps living off your catch. Your perspective can’t help but change.

It’s not a mere fleeting appreciation. It’s something you take with you.

Fraser can help remind you that you’re not your job. How important are the forms and the filing, the meetings and memorandums? You can learn a lot about yourself when you take away all the things that don’t matter.

And really… is there any better way to experience this epiphany than in paradise?

Fraser Island certainly is a paradise, no matter which way you look at it. At the southern end of the Great Barrier Reef, and a short boat ride from Hervey Bay in South-East Queensland, Fraser is 124 km from tip to toe and 16 km across the middle. At 163,000 hectares, it’s the world’s biggest sand island.

Of course, that doesn’t mean it’s all just sand. Not by a long shot! The whole island is laced with crystal clear fresh water streams, and deep midnight blue fresh water lakes. In fact, with over 40 fresh water lakes – it’s home to half of the world’s known ‘perched’ lakes. It also boasts a dazzling diversity of plants and animals (including Australia’s purest strain of dingo), and an amazing variety of spectacular landscapes, from 120 km of non-stop tropical beach to dense and towering rainforest, weathered headland to ochre gorge, inspiring cliffs to wandering dunes, eerie mangroves to wind-blown salt pans.

What’s more, you have your choice of accommodation, so you can choose your own level of ‘communion with nature’. From 4½ star luxury resorts to rental retreats to motels and units, right through to the good ‘ole campsite. Whether you’re a sucker for a bit of pampering, or you’re perfectly at home with a tent and a campfire on the beach, Fraser is a great provider.

And great accommodation is just the start… The island boasts average temperatures of 29°c in summer and 22°c in winter, so it’s no surprise that outdoor activities feature prominently on the agenda. Adrenalin addicts and dedicated sunbathers alike will appreciate the vast range available. From sunrise to sunset (and beyond), there’s always something for everyone. The only problem is choosing! Fishing, 4-wheel-driving, eating, sailing, bird-watching, bush-walking, swimming, eating, whale & dolphin-watching, shipwreck exploration, eating, beauty therapy, massage, lazing in the sun, eating, beach volleyball, tennis, cricket, eating, canoeing, sailboarding, snorkelling, eating… And needless to say, a few quiet drinks might make their way onto the agenda as well…

With so much to offer, it’s no surprise that the Fraser Island was originally known as K’gari – or ‘Paradise’ – by local Aboriginal peoples.

Fraser Island certainly is “paradise for everyone”!

Four Wheel Driving

Being a sand island, the only mode of land transport is 4WD. Of course, for many visitors, that’s the main attraction. 4WD enthusiasts from all around the world visit Fraser Island to pit themselves and their vehicles against the rugged terrain found all over the island. From the hard-packed seashore to the shifting dune to the forests of the interior, Fraser Island is the ideal 4WD location.

Don’t be scared though – it’s not all about extreme driving for experts! Whether you’re an novice, or you just prefer a more leisured pace of life, you’ll find a much more sedate satisfaction in one of the many organised 4WD tours offered around the island. Or if you just want to get out on your own, you can hire a 4WD for a day, and indulge in a bit of quiet exploring.

No matter which option you choose, though, there are a few ‘ground rules’ you should observe. Remember the dangers of driving on the beach. The further you adventure from the shoreline, the softer the sand. The softer the sand, the more likely you are to get into trouble. Generally speaking, keep your speed down, and remember you’re in a World Heritage listed environment… so be careful.

Fishing

No island holiday would be complete without a lazy day or two spent fishing. Beach fishing is the big drawcard for Fraser Island. And with 150 km of ocean beach to choose from, why wouldn’t it be? Middle Rocks, Sandy Cape, Waddy Point, and Seventy Five Mile Beach are just a few of the choice locations available for you to finally get the better of ‘the one that got away’.

The famed ‘tailor run’ occurs on the eastern (ocean) side of the island between July and October each year. In the angling world, this time – known as ‘tailor season’ – is a much anticipated event, with huge schools of big fish working the beaches. But if you can’t make it between late winter and early spring, rest assured, tailor season is just one date to mark in your calendar. The western side of Fraser has been known to reward the odd angler with a fine bag of bream, whiting and flathead.

Angler’s Advice

Pick the fish you’re after, and take advantage of the handy hints below to make the most of your fishing trip.

Fish: Tailor
Bait: Pilchard, 3 hook gang, lure
Timing: Late July to October
Location: Eastern Beaches

Fish: Dart
Bait: Pippies or worms
Timing: All year
Location: Eastern Beaches

Fish: Bream
Bait: Flesh strips, mullet gut, fowl gut, pippies
Timing: May to September
Location: Rocky outcrops on east coast or creeks on the west

Fish: Whiting
Bait: Worms, yabbies, pippies, prawns
Timing: All year
Location: Low tide on the east, creeks on the west

Fish: Flathead
Bait: Live baits, pilchards, lures
Timing: All year
Location: Rocky outcrops on east coast or creeks on the west

Fish: Jewfish
Bait: Whole mullet, tailor fillets, beach worms
Timing: May to September at night on the full moon, low or high tide
Location: Deep gutters and rocky outcrops

Of course, many more varieties are there for the taking, including mackerel, tuna, and reef fish. And if you’re not indisposed to a bit of sea fishing, you can book a berth on one of the larger boats launched to take advantage of the red emperor, coral trout, maori cod and parrot to be found off the Continental Shelf and local reefs.

Water Sports

As you’d expect, Fraser Island plays host to a vast array of water sports. Whether you’re after a lazy drifting afternoon – cocktail in hand, or an invigorating workout, there’s a water sport for you. All fitness levels (and energy levels!) are catered for.

Ease yourself into the aqua-life with a refreshing dip at one of the most beautiful beaches in the world. Surrounded by pure white sandy beaches, the clear blue waters of Lake McKenzie are without doubt amongst the most idyllic to be found. Alternatively, exercise your imagination with a visit to the ghostly shipwreck of the “Maheno”, then submerge yourself in the crystal clear waters of Eli Creek.

Fraser Island sits on a huge reservoir of fresh water, and is home to numerous spectacular fresh water lakes, including some perched high above sea level. You have your choice of over 40 lakes… Lake Wabby, Champagne Pools, Basin Lake… to name but a few. Clearly, Fraser Island is amply equipped to pamper even the fussiest fresh water connoisseur.

For something a little more strenuous, why not hire paddle ski or canoe and paddle yourself up Dundonga Creek. It’s generally a 1 hour round trip, so by the time you return, you’ll be ready to settle back into some more relaxed pastimes.

Whale and Dolphin Watching

Every year from August to October, you can book a berth on a whale watch cruise. Enjoy a fantastic half day of sun, salt, and ocean breezes while keeping your eyes peeled for Fraser’s famous migrating humpbacks.

The annual humpback migration is truly an awesome spectacle. Family pods take a well earned rest in the waters west of Fraser Island after travelling 5000 km from the icy waters of the Antarctic. The sight of a 15 tonne (that’s the weight of 11 elephants!) adult female humpback rearing out of the ocean is absolutely awe-inspiring.

And don’t worry… if your holiday doesn’t coincide with the migration, you can still catch a cruise questing for dolphins, dugongs, turtles and the odd Indo Pacific Humpback.

Speak to your hotel or resort for information about organising a whale or dolphin watching cruise. Alternatively, contact Kingfisher Bay Resort and ask about their tours.

Tips & Reminders
Access to Fraser Island is via vehicular barge or catamaran
4WDs only on Fraser Island (there are no paved roads except in resorts)
Don’t feed or pet the dingoes (or any other animals)
No domestic animals allowed
Most activities on the island can be enjoyed individually or as part of a booked tour group
You’ll need permits to 4WD or camp
4WDs can be hired on the mainland or on the island
Don’t leave food unattended
All but the hardest sand can be unpredictable and perilous for a 4WD
High and low tide gutters around dawn or dusk are best for fishing
If four wheel driving, take a good map and a tyre pressure gauge

For further information about all aspects of Fraser Island, including accommodation, hire guides, and barge booking details and timetables, see http://www.boxatrix.com/.

How Much?
Accommodation - Prices vary from approximately $4 per night if you’re camping right up to $850 per night for the VIP room at the 4½ star luxury of Kingfisher Bay Resort.
Permits - A 4WD vehicle permit will cost you $31.85. Camping permits are $4 per person per night or $16 per family per night. Children under 5 are free. To purchase a permit or obtain detailed information, call the Queensland National Parks and Wildlife Service at Rainbow Beach on (07) 5486 3160.
Vehicular Barge Access - Barges operate daily from Hervey Bay and Rainbow Beach. Tickets start at $82.20 return per vehicle per driver. Extra vehicle passengers will cost $5.50 each. Several barges operate with different destinations on the island. Most require bookings.
4WD Hire - Rates start at around $90 per day for a Suzuki Sierra, up to $130 per day for a Landrover Defender (depending on the duration of hire).
Flights to Queensland - Qantas offers return flights to Hervey Bay via Brisbane from $407 departing Sydney, and from $527 departing Melbourne.

About The Author:

Glenn Murray heads advertising copywriting studio Divine Write. He can be contacted on Sydney +612 4334 6222 or at glenn@divinewrite.com. Visit http://www.divinewrite.com for further details or more FREE articles.
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Discover How You Can Afford to Retire Early in Luxury

Living and Retiring in Bolivia

noreply@blogger.com (Stephan) — Thu, 06 Jan 2005 02:20:00 +0000

by: Shannon Roxborough

A beautiful and inexpensive place without a tourist in sight. Sound like a dream? It's not. This slice of paradise does exist. Nestled high in the Andes Mountains of South America, Bolivia is a little-known retreat exotically spiced with a unique Latin and Native American flavor. Bolivia has a lot to offer…a very low cost of living, unspoiled natural environment, friendly people and a range of climates to suit virtually every taste.

Property prices are among the lowest in Latin America and it has the potential to become the world's next great expatriate haven. Bolivia has long been a favorite destination of adventure travelers, yet few mainstream American and European tourists make it to this secretive outpost. Why? Well, perhaps it's because Bolivia isn't a destination you stumble across by accident. Shrouded by great mountain ranges, it lies hidden between Brazil, Chile, Argentina, Peru and Paraguay.

The country's most famous visitors were Butch Cassidy and the Sundance Kid, the American outlaws who fled to South America in the early 1900s - they are said to have had their last stand with the Bolivian army and are buried here. As recent as the 1980s, wise old men in towns throughout the Bolivian highlands could be heard gossiping about the fate of two of America's most notorious outlaws. In Bolivia, myths come thick and fast, and one legend has it that the Incas have an underground network of secret passageways on an island located in Lake Titicaca, which is praised by visitors as being one of the deepest blue and most beautiful bodies of water in the world.

Leave your worries at home

Bolivia is one of those countries that seduce you through sheer personality. The colorful bustle of its markets and street vendors, the liveliness of its nightlife, and the charm and friendliness of its people, make it one of the most livable places in Latin America. Bolivia has a bit of something for everyone: charming old-world colonial towns with great restaurants, museums, and nightlife, as well as slow-paced cozy developments in rural areas near indigenous villages, where hunting, gathering and fishing are a way of life.

The climate is another plus. Temperatures in Bolivia range from the mid 60s to the low 80s, with the average being in the mid 70s. Even the hottest days are always tempered by cooling breezes.

Bolivia is a republic with a presidential system of government. Its fully democratic, American style system retains the respect of individual rights and freedoms.

Bolivia enjoys a remarkably low crime rate, with violent crime being virtually unknown and theft not commonplace.

Americans, Canadians, Australians and most Europeans don't need a visa to spend up to 90 days as a tourist in Bolivia and nonresidents may buy property. Live the good life on less than $9,000 a year. Besides the fact that there's no such thing as a rat race in Bolivia, its biggest asset is its cost of living. You can stay in a clean, friendly hotel in the city center for $8 a night (or US$125 per month) where every meal costs less than $3. Groceries are up to 70% cheaper than in the United States or Europe. A routine trip to a good English-speaking doctor will set you back no more than $20. You can take in an American movie for only $2 or get a taxi across town for as little as 80 cents. And you're certainly not going to have high utility bills: Electricity and heating costs average $15 a month.

Cheap Real Estate

To give you an example of the costs, here are some properties on offer right now:

A 4-bedroom, 2-bathroom, 2500-square-foot home in an affluent neighborhood with a large garden, a garage, an alarm system, and every modern convenience, for $75,000.

A 2-bedroom, 1-bathroom, 800-square-foot apartment with a dining room, a kitchen, central heating, a balcony, and parking, costs $15,000.

Rentals are downright cheap by First World standards. Apartments begin at around $75 per month for something small, with houses starting at the $200 mark.

You could certainly rent a nice two-bedroom apartment in one of the best parts of town for $175 to $350 a month. And you can lease a luxury three-bedroom suburban home would rent for between $275 and $400 per month; homes with private swimming pools start at around $500 monthly.

Recently, I helped a client find a lot to build on for less than $5000, with good shopping, a lake and the airport all in walking distance.

These deals and many more make little-known Bolivia worth investigating.

About The Author
Copyright 2005 by Shannon Roxborough

Shannon Roxborough is an international lifestyle expert with close to 20 years experience. He has helped hundreds of clients with overseas living, retirement and travel matters. Visit his website at: www.TheGlobalLife.net askinternational@aol.com
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Discover How You Can Afford to Retire Early in Luxury

Retirement – It's Sooner Than You Think!! (honestly)

noreply@blogger.com (Stephan) — Sat, 01 Jan 2005 15:11:00 +0000

by: Kate Hufstetler

Many people hear "retirement" and think— what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?

Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?

One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement.

Many people are still thinking there might be a thing called Social Security around when they retire. Social Security: as of 2004, the average annual Social Security retirement benefit is approximately $11,000. That is not a lot to live on folks. Plus, we all hear the news periodically that there might not be any Social Security around when we get older and need it.

And as a further WAKE UP call, I found a calculator which estimated (without Social Security):
a couple at 40
bringing in $90k a year (together)
with very modest investments

would need to save an additional $2,690,000.00 ( yes 2 million +) in order to retire at 65-- OR – plan on working an additional 29 years!!

Now before you get overwhelmed and click over to another article—lets put our heads together and simply cover a few very very basic start up basics.

1) Standard Of Living: You need to know at what standard of living you will want to live during retirement.

2) Basic Living Expenses: You will need to calculate the cost of basic living expenses (at that level) i.e. electric bill now of $200 = what in 2030?

3) Hobbies and Leisure Activities: Know what type of hobbies, and leisure activities you will keep busy with and what their cost might be then.

4) Family Visiting / Travel: Realize that more and more children move away when grown. So while they work out of state—YOU may need to do the traveling to see them. Plan for these costs.

5) Convalescent Care (nursing home costs) provincially run about $100/day median. You will need to multiply that times the same 4% inflation rate. Then multiply that times the number of years before you may need it—to approximate how much you may need to afford for your housing when you need assistance. Truth be known—WE need to plan to handle that cost ourselves, rather than think our children will be able to take on that kind of additional cost.

You will need to total yearly amounts. You will need the approximate yearly cost to live (at your desired level) during regular healthy retirement. And, you will need the total yearly amount of costs to live in assisted or full care living facilities ( for each – you and mate).

Multiply each yearly amount by the number of years you might be living in that circumstance. Example: Retire at 65. Live healthy retirement- 15 years (so 15 x yearly cost of healthy living) . Live assisted – 8 years ( so 8 x yearly cost of living in care).

You now have two totals that when added together equal your estimation of the total dollar amount you will need to draw from in order to live after retiring. NOW you are ready to begin planning your investments in such a way that you can achieve that TOTAL number by the time you retire.

Here are some tools to help you now that you are ready to take that first step:

USA Today retirement cost calculator: http://www.calcbuilder.com/cgi-bin/calcs/RET2.cgi/usatoday

Motley Fool’s retirement area http://www.fool.com/retirement.htm?source=PFinAg

Metlife’s retirement area http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P1946,00.html

About.com’s HUGE retirement resource area: http://www.retireplan.about.com/

Until next time—all the best,

Kate

About The Author

Kate Hufstetler is a well established Personal Life Coach. Her clients come from both the United States and overseas. She offers coaching services via email and phone consultations. For more information and current highlights please visit: http://www.comedreamwithme.com/start_today.html
Kate@comedreamwithme.com

Discover How You Can Afford to Retire Early in Luxury

An Asian Retirement Paradise

noreply@blogger.com (Stephan) — Sun, 26 Dec 2004 14:58:00 +0000

MALAYSIA: An Asian Retirement Paradise
by: Shannon Roxborough

Asia's best-kept secret for expatriates, Malaysia has a vibrant mix of foreign and indigenous tribal cultures, creating a veritable melting pot of peoples, traditions and religions.

A sizable enclave of foreigners (Brits, Americans, Australians, and Canadians) live full time or maintain holiday homes in Malaysia, and you'll find that just about everybody speaks English, since its compulsory in local schools.

Not only are three world-class playgrounds (Thailand, Bali, and the Philippines) all within a few hour's travel from Malaysia, but with miles of white sand coastline, tropical islands, and beachfront property galore, it has all the makings of a fairy-tale setting.

Despite being the capital of a developing nation, Kuala Lumpur is a modern cosmopolitan with clean streets and sidewalks and every modern convenience to found in New York or London. Home to the tallest building in the world, there are also FedEx and UPS offices, international banks, English cinemas and bookstores, western-style supermarkets, French and German bakeries, Chinese, Indian, and Italian restaurants, gourmet coffee, Cuban cigars, Internet cafés and some of the best shopping in the world!

One of the few things that lend a "Third-world" feel to the capital are the open-air night market, where local merchants peddle everything from fresh fruit and vegetables, to meat and fish, to exotic animals and traditional handicrafts.

All the major newspapers are available at newsstands, including the Wall Street Journal, USA Today, the Financial Times, the International Herald Tribune and The New York Times. Cable and satellite TV provides access to a wide variety of English-language programming, including CNN, the Discovery Channel, Filmnet and many more.

Despite the local Muslim population not drinking alcohol, Kuala Lumpur has some of the liveliest nightlife in the region and there are more than a fair share of clubs and bars, where tourists, expatriates and locals alike mingle and party. Though the official religion of Malaysia is Islam, great tolerance is shown for other religions, with many beliefs being represented and their adherents practicing openly, including Christians, Hindus, Buddhists, Taoists and Jews (the nearest synagogue is in neighboring Singapore).

Compared with other major Asian cities (Tokyo, Singapore, and Hong Kong, for example), Kuala Lumpur is downright cheap. Even in the over-priced tourist spots you can get a good meal for two for around $20. Outside of these places, a 3-course meal for two with all the trimmings, including drinks, will set you back no more than $10…a doctor's visit $8 to $15 and live-in domestic help $200 a month.

Rental properties are readily available and not overly expensive by American or European standards. The cost of 2-bedroom rental apartments begins at around $225 per month, with 3-bedroom houses starting at $35,000. Naturally, comparable housing in expatriate communities or the luxurious suburban homes that date from British colonial period can set you back considerably more.

Other properties recently on offer include:

A 2-bedroom, 1-bathroom, 725-square-foot apartment with a dining room, a kitchen, ceiling fans, a walk-in closet, and parking, costs $45,215.

A small two-story bungalow with 2 bedrooms, 1 bathroom, a kitchen, a living room, and a dining room going for $35,700.

A penthouse apartment, close to downtown, with a sea-view and a 350-sqare-foot terrace. It comes fully furnished and has 2 bedrooms, 1 bathroom, a kitchen, and a dining room. The asking price? $75,000.

A spacious 3-bedroom, 2-bathroom, 2500-square-foot condominium with a large living room, an elegant dining room, a fully equipped kitchen, and a pantry, for $125,250.

Though there are expensive restaurants and accommodations, there's simply no reason for you to check into a five-star hotel when you can stay in a clean, friendly hotel in the city center for $40 a night where every meal costs less than $5 per person.

CRIME-FREE AND FOREIGNER FRIENDLY

Of course, cheap living shouldn't be the only deciding factor when choosing a new home. As well as being very affordable, Malaysia is safe.The government's real no tolerance policy means street crime is virtually nonexistent.

The Malaysian government, through its "Silver-Haired Program," offers expatriate resident retirees extremely attractive benefits. Outside of nationals of Israel and Yugoslavia (Serbia and Montenegro), the program is open to citizens of most countries. To qualify, you need only be over 50, show you can bring a guaranteed income of about $1300 per month into Malaysia (or open a savings account in Malaysia with $40,000), and have a local sponsor (which can easily be arranged).

Penang, a small island off the northwest coast, has been called the "Pearl of the Orient" and its beaches are a favorite tourist destination. The coastline is also dotted with many small, quiet seaside villages. The tropical rainforests and jungles offer many opportunities for exploring lush mountains, trekking through the jungle, or even taking a riverboat safari. The bountiful sea surrounding Malaysia provides for some of the best scuba diving and fishing anywhere in the world (Malaysia's seas are home to the Black Marlin, tuna, mackerel, sailfish, barracuda and a host of other species).

PRACTICAL BENEFITS

Medical care is good, with excellent hospitals and clinics in all the major towns. Doctors speak English, and the majority gained their qualifications in Western Europe or North America.

Although foreign residents must arrange private health insurance, visiting tourists who have an accident are entitled to free emergency treatment in public hospitals. A consultation with a private doctor in most cases will cost just $8 to $15.

When it comes to banking, management methods and the range of services offered closely follow the British model. Plus, most major world banks have full-service branches in Malaysia.

Many expatriates living here off investment income keep their cash growing tax free in Labuan, an offshore tax haven administered by Malaysia, and then bring into the mainland what's needed for living expenses. Labuan is also perfect for anyone looking for a private, offshore bank account, a tax-free corporation, a trust, or other offshore structures.

Led by Malaysian Airlines, the national carrier, the island is served by many major airlines, linking it the world through its international airports. A good network of modern roads covers the distances between towns, and Malaysian telecommunications are among the best in the world.

If you've ever thought about living overseas, you owe it to yourself to investigate Malaysia.

About The Author
Copyright 2005 by Shannon Roxborough

Shannon Roxborough is an international lifestyle expert with close to 20 years experience. He has helped hundreds of clients with overseas living, retirement and travel matters. Visit his website at: www.TheGlobalLife.net askinternational@aol.com
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Discover How You Can Afford to Retire Early in Luxury

You Deserve To Retire Early

noreply@blogger.com (Stephan) — Thu, 23 Dec 2004 23:51:00 +0000

by: Vishy Narayanan

The fact is that most people continue to work for a living, because they don’t have the means to live without that income. Do not get me wrong. You may enjoy doing what you do. If you do not have to worry about making a living out of this, could you do better, on your own terms?

Perhaps work fewer hours and spend more time with your family? Perhaps choose to take a few days to travel, without worrying about needing to ask for permission. Maybe spend a little time helping out your favorite charity?

There are a great many people who would not go to work, if they did not have to earn a living. Total Financial Freedom is about having that choice. If you quit your job, the organization will not shut down. They will find a replacement to do your job. They will continue their business. However, if you quit working for yourself, nobody will replace you. You owe it to yourself and the ones near and dear to you. When you have the choice, you may still continue to work. The big difference is in knowing that you have a choice.

Sometimes, we get so busy with our work and lives that we forget the potential within. You may be able make a huge difference in your community. You may be able to touch a lot of lives in a way that only you can. If you had the choice, you could explore this possibility. As I have already stated, your net worth is directly in line with the number of lives that you have positively affected.

I could be totally boxed in my profession of software engineering, management etc. I love that side of me. I had to take the time to write this book. I know that this book is going to make a difference in many lives. Why do I know that? I know that, because I firmly believe that I have something to offer. I know that, because I started this work with the steadfast desire to write a book that will have such impact. Above all, I know so, because I prayed that I be the instrument to deliver such a powerful message.

You have a purpose in life. You have tremendous potential. Don’t let the power of a paycheck hold you back from becoming all that you can be. You deserve to retire early, so that you may spend your time fulfilling your dreams.

Do you need a Million dollars to retire? Not necessarily. You may choose to retire a lot sooner than that. No, I am not asking you to shrink your dreams. You may still go on to gain wealth far beyond a Million dollars. That is entirely possible. But, when you have made it possible to replace your current income from some other means, you can retire and pursue your dreams full time.

Get out of that bondage. Have the choice. Then do what you choose to. Retire early and enjoy your life.
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This is an excerpt from a book titled Totally Financially Free by Vishy Narayanan http://totallyfinanciallyfree.com/specials. You are free to use this article in your publication as long as it is not modified and this resource box is included

About The Author

Vishy Narayanan is the author of the now famous book Totally Financially Free. His philosophy is to help others help themselves to a life of wealth and abundance.
vishy@totallyfinanciallyfree.com

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Discover How You Can Afford to Retire Early in Luxury

Bahamas: Guide to Permits, Residency and More

noreply@blogger.com (Stephan) — Sun, 19 Dec 2004 22:58:00 +0000

Bahamas Real Estate Guide to Permits, Residency and More
by: Ester Napoli

White sand beaches, clear blue waters, tax breaks, real estate and property; the Bahamas never looked so good. And yes, I said real estate. Bahamian real estate is hotter than ever.

In 1993, the International Persons Landholding Act was put into motion to encourage foreigners to purchase a second home in The Bahamas. And it couldn’t be simpler. If a foreigner buys a single family dwelling or vacant land to be used in the construction of such a dwelling, then he no longer needs to obtain a permit from the Government prior to the purchase. He only needs to register the acquisition later with the Investments Board. Permanent residents of the Bahamas and foreigners who inherit property in the Bahamas don’t have to obtain a permit before acquiring land but must register afterward.

However, there are cases where a permit will be needed for Bahamas real estate. First, if the property is undeveloped land and of five acres in size or larger. Secondly, if the property is not a private residence, or it is not intended for development as such, a permit is needed.

In dealing with mortgages, the act is not meant to be a road block. In fact, it provides that licensed banks, trust, and insurance companies who acquire an interest in or take possession of property under a court order must register that acquisition. An acquisition by way of foreclosure under a mortgage or of land acquired by an authorized foreign state will not require a permit but must be registered.

With leases, foreigners are not required to obtain permits, register leases, or letting agreements unless they are for trade or business purposes and the term can exceed 21 years.

Not only has the government made owning a second home easy for foreigners, they have also included a condition so that a foreigner no longer pays a double rate of stamp duty; he now pays the same single rate as a Bahamian.

The stamp duty is a tax that is payable on the delivery of all real property based on the value as follows: Stamp duty starts at 2% for real estate valued under $20,000 US, but increases to 10% for real estate over $250,000 US. Payment of this tax is usually shared equally between the seller and the buyer. There is also a 1% stamp duty on mortgages paid by the borrower. The usual practice in the Bahamas is for the tax to be shared equally between buyer and seller unless otherwise agreed upon.

If you are entering the Bahamas, you must fill out an embarkation-disembarkation card which is usually provided by your travel agent, the airline, or the ship you are traveling on. A visa and passport is not required of you if you are a Canadian citizen or subject of the United Kingdom unless the stay exceeds three weeks. U.S. citizens on regularly scheduled airlines, pre-cleared for return at U.S Customs and Immigration at Nassau International Airport also do not require a visa (though proof of citizenship is required).

You are allowed a maximum stay of eight months with proper documents which includes a return ticket and evidence of financial support. If you would like to stay longer, then you have to apply for temporary residency to the Director of Immigration. If, however, you would like to make the Bahamas your permanent residence by way of Bahamas property investment, then you will have to apply for permanent residency. If you plan on working in the Bahamas, a work permit must be applied for separately.

There are different levels of residency. The first is permanent residence which requires a purchase of a residence of more than $500,000, subject to a $10,000 one-time payment. Another level of residence is that of a homeowner where no minimum purchase is required, however, your card must be renewed every year for a fee of $1000. And the last level of residence is an annual residence where, again, no minimum purchase is required but you must renew every year for a fee of $1000.

Owning Bahamas real estate sounds spectacularly easy and that’s because it is. But there are some things to keep in mind when making an investment of this size. Here are a few guidelines to help you out when buying Bahamas property:

Think location: Depending where you buy, prices will vary. On the main islands such as New Providence and Grand Bahama, prices are more than double the prices in Florida. If you’re looking for an investment property, these would be good choices. If you’re looking into buying a quiet retreat, consider something on the family islands as they are less expensive.

Have a look: Once you have decided where you would like to buy a property, the next step is to have a look at more than one property so you can get an overall picture of the market.

Take a second look: It’s a good idea to get a certified professional to look over the property just in case there are hidden surprises!

So whether you’re making an investment or buying a vacation home, the Bahamas will welcome you with open arms. All you have to do is make your ticket to paradise!

About The Author

Ester Napoli: They say if you want to be happy, you have to do something you are passionate about. One of my passions is traveling and the one place I fell in love with was the Bahamas; the white sand, clear waters, friendly environment. It is paradise on earth. I enjoy all aspects of the Bahamas; the culture, the history, the countless sports and activities to keep you busy, and of course, the fabulous weather. email Ester info@gloriousbahamas.com

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Discover How You Can Afford to Retire Early in Luxury