Want to Retire Early? Be Aware of These 5 Financial Risks.

early retirement

Many people want to take early retirement. If you’ve saved up enough money then why not? Well, first of all, you have to be sure that you’ve saved up enough money. Many people think that they have planned accordingly only to realize that there are a lot of financial downsides to early retirement.

Here are five of the biggest money problems that people tend to face in early retirement:

1. Failing to Plan Properly for Taxes

Did you know that many people are in a higher tax bracket at retirement than for much of their working career? This means that you’re likely to owe more at tax time than you’re accustomed to. Moreover, once you start taking out your 401K money, you’ll have to pay taxes on that.

Therefore, taxes in retirement can be pricey. If you haven’t planned ahead, then you’re going to have to readjust for that reality. If you retire early, then you’ll have to start figuring that out years ahead of your peers.

2. Years and Years of Spending Ahead

That brings us to the next key point. If you retire early then chances are that you’ll have more years of retirement. Therefore, you’ll have to make your retirement income stretch. If you retire at 55 instead of 65, that’s ten less years of earning and ten more years relying on retirement income.

3. Where Will Your Money Come From?

You won’t even be able to access some of your retirement funds, such as your 401K, until you hit a certain age. Therefore, you’ll have to figure out where you’re money is going to come from prior to that. If you haven’t planned in advance, then you can easily find yourself overspending in those early years. If you tap into your savings or refinance your home to cover those costs then you’ll have to find some way to make up for it later.

4. What About Healthcare?

Just because you retire early doesn’t mean that you can access Medicaid early. Therefore, you’re going to have to figure out how to pay for health insurance until you reach regular retirement age. If you’re not working anymore then you can’t count on employer rates. Your health insurance could get very expensive very quickly.

Even though you’ve retired early, you’re old enough that you can’t risk going without healthcare. If anything were to happen, your care costs would be exorbitant. Therefore, you do have to pay out of pocket for health insurance. How are you planning to do that if you’ve retired early?

5. You Don’t Maximize Your Retirement Benefits

If you take early retirement then you may not make as much money post-retirement as you could have. For example, if you have a job that pays a pension, the pension amount might be significantly lower if you retire early. Likewise, if you start access Social Security early (“early” currently means age 62) then you won’t get as much as if you’d waited. So, you start using the money sooner and yet you’re getting less of it than you could have. Waiting to retire could be well worth it.

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Boost Your Savings by Increasing Your Income

While we would all love to put some money aside in our savings for a rainy day, many people find this difficult. This is not because they don’t have the willpower to save, but rather because they simply don’t have enough money leftover each month to put aside in. This can create a problem if unexpected costs arise, or if you need to save up for something.

Fortunately, with today’s suburban lifestyle where most people have ready access to the internet, you can do something about the situation. If you are serious about saving, you can try earning more money online. In this article, we will look at some of the ways you can boost your income and save money with the help of modern technology.

Ideas for Boosting Your Income

So, what can you do to boost your income? Well, these days people go online for all sorts of financial reasons, like getting a loan, arranging commercial vehicle financing, and getting debt advice and budgeting. Another reason why people go online is to make money, and there are plenty of ways in which you can do this.

One of the things you can do to make some extra cash in your spare time is to use the skills you already possess. For instance, if you are a good researcher and enjoy writing, you could offer your services online to individuals and businesses looking for content writers. In today’s digital age, there are plenty who are looking for this type of service so you could make some serious cash. In fact, you could even turn it into a regular part-time or full-time career if it takes off.

If you have technical skills and you enjoy being creative, you may want to offer your services as a web designer in your spare time. Again, because of the age we live in, businesses are always on the lookout for good, affordable, and reliable web designers. If you can offer these qualities and you have the skills (or can learn), this is a great way to make some extra money. As with content writing, you could turn this into a part-time or full-time career, and you could work from a home office.

Finally, if you want to make money as a one-off to help boost your savings, you could sell items you no longer want or use online. Most of us have items that we do not use any longer, from DVDs and books to clothing, kids’ toys, furniture, and more. One man’s junk is another man’s treasure, as they say, so you could sell this online and make some money. At the same time, you can clear your home of clutter.

Get Your Savings Underway

No matter what sort of online job you choose, you can look forward to it as a practical means of generating more savings. You can then benefit from greater peace of mind, as you will some money put aside in case you need it.

5 Ways To Get Cash When You Need It Fast

Unexpected expenses always seem to pop up at the worst times. You may be in between paychecks, or need a lump sum of cash to pay off other bills, and need to make some money fast. Emergency car repairs or medical bills can wipe you out unless you have a way to get cash quickly.

With a bit of ingenuity and effort, there are plenty of ways to get extra funds when you are in a bind. While you may want to avoid scam-ridden deals that you find at many payday loan lenders, there are other options that can get you back in the black faster than you may think.

Sell some of your stuff at a garage sale, talk to a private lender about title loans in Bakersfield or join a research study to make cash fast. Take a look at some of these quick and easy ways to make some money when you really need it.

Garage or Online Sale

Gather all of your unwanted items and set them out for a garage sale. This is a great way to clear out your clutter and purge your home, garage and basement of the things that you no longer need. Barter with buyers for the best price and start collecting money right away.

Go online to a popular auction site like LetGo or eBay and advertise your items for sale. You can have a buyer in just minutes and money in your bank account right away.

Blood or Sperm Donation

There is always a need for blood donations. The Red Cross is always putting on blood drives to help keep their blood banks full and operational. Visit your local blood bank and sign up to donate blood or plasma. You can donate up to once a week. The compensation isn’t much, but it can get you started.

If you donate sperm, the compensation is much higher. In most places, a sperm donation will pay around $200. If you qualify, you can donate as often as you wish. Women have the option to donate their eggs, however, the process can take several weeks and isn’t as quick a solution to money issues.

Title Loan

If you own your own car, boat or RV you might qualify for a title loan. This type of secured loan is easy to get, especially if you have poor or no credit. Your collateral acts as a guarantee on your loan and can get you a larger lump sum in less than 48 hours.

Fill out a simple application, decide what you want to put up as collateral and collect your cash. It’s really that easy. As long as you keep to the payment schedule on your loan, you will retain ownership of your collateral.

Sell An Asset

If you need a larger lump sum, you might consider selling an asset. Selling will often bring you a larger amount than a secured loan. Advertise your asset including items like a vehicle, your boat, recreational vehicles or a piece of valuable art for sale. Take advantage of the online market to reach more potential buyers.

Participate In A Research Study

Private companies and educational institutes are always looking for people to participate in their research studies. Visit your local college websites to view listings of interesting studies that you can be a part of. Research studies can include testing out trial medications, taking part in a behavioral study, or psychological testing.