Financial Planning For Retirement: For Worry Free Retirement

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By Stanley Emerson

Planning can be a tedious activity especially if you are planning for retirement. Many people realize how advantageous financial planning for retirement can be while others find it mysterious.

In fact, most experts say that for people who are only making enough money to make due payments in each month, then it means that they should start contemplating on how they can still make money even if they are already retired.

Surveys show that almost 75% of the American population is earning enough money to pay their monthly bills. This means that they do not have any extra money to put in a bank or in any financial institution that could provide them enough profit after their retirement.

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What’s more Social Security is not enough guaranteed income for retired people to live on. Actually, it is still a big question if one’s Social Security will still exist when the retirement day comes.

Hence, it is extremely important to generate some methods that will provide an individual a reasonable amount of money in the future. This should be done regardless of how much an individual earns, the important thing is to start saving today.

1. Visualize and calculate

It is important for a person to visualize his or her own situation after retirement. Then, you can calculate how much money is needed to live on after retirement. Furthermore, people need earnings that compensate 75% of the present amount that he or she is expected to take home.

2. It is important to seek the help of a financial planner or any person competent in financial planning.

By asking for advice from the experts, you will be able to gain more knowledge know how to proceed for you situation. These people are proficient and knowledgeable in all kinds of financial planning and they can provide the most feasible and workable approach for your individual needs.

3. Get rid of loans, debts, and other financial obligations in as little time as possible.

By simply paying off all debts, loans, and other financial obligations in a shorter period of time, you can realize a substantial amount to invest for that retirement. A good financial planner will know exactly how to direct you so you can meet your retirement goals.

About the Author: Henry Clark can show you how to make the most of your retirement years. Visit his website and learn more


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The Pros And Cons Of Lottery Winnings

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By Simon Volkov

Lottery winnings can radically alter a person’s life in both positive and negative ways. Many people buy lottery tickets in hopes of winning the jackpot. They dream about winning millions and achieving financial freedom. They long to quit their job, travel the world, buy a mansion, and shower their loved ones with expensive gifts.

While it is true lottery winnings can bring fortune, winning large sums of money can bring unwanted notoriety and fame. Relatives you haven’t seen in years suddenly want to rekindle relationships in hopes of receiving a cash handout. Friends expect lottery winners to pay for dinner, host lavish parties, and buy expensive gifts.

Winning the lottery often brings unwanted scrutiny; especially when winners owe back taxes or have creditor liens or judgments. When a person owes money to creditors or the IRS, outstanding debts must be paid from the lottery winnings. Depending on the amount won, winners may end up with little to no money once previous debts are repaid.

Another problem with jackpot lottery winnings is taxes. Lottery winnings are taxed at both local and federal levels. Depending on the state of residence and amount won, taxes can amount to 50-percent or more. Lottery winners who accept a lump sum cash payment receive less money than those who select annual installments.

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Mega-jackpot lottery winnings are often awarded through annuity payments which extend for 10 to 20 years. A structured settlement is established which provides payments on a monthly, quarterly, semi-annual, or annual basis. By accepting annuities, lottery winners can reduce their tax obligation because funds are taxed when they are received. This option allows individuals to receive more money over the long-term.

Individuals who choose to take lottery winnings as a one-time lump sum payment receive between 50- and 65-percent of the winnings. If a person wins $1 million, they would receive between $500,000 and $650,000, less taxes. The tax rate could further reduce winnings to around $325,000.

Lottery winners who enter into a structured settlement would receive around $40,000 per year against the $1 million jackpot. Depending on their tax rate, winners would receive between $20,000 and $30,000 after taxes. This would provide winners with around $400,000 to $600,000 or nearly double what they would receive when taking the lump sum payment. Actual lottery winning amounts vary depending on the winner’s tax status and state lottery regulations.

One of the most prevailing problems with winning jackpot lotteries is many winners do not possess money management skills. Statistics show the majority of lottery jackpot winners are broke within 2 years. Instead of making smart investments, lottery winners often embark on spending sprees and buy mega-mansions, fancy cars, yachts, expensive jewelry, and a multitude of unnecessary items.

Individuals who invest lottery winnings can double or triple their winnings. Instead of siphoning money on frivolous items, lottery winners should develop a solid investment plan. A variety of investment products are available and include real estate, real estate stock, stocks and bonds, and cash flow notes.

Individuals who have dreamed of starting their own business can use lottery winnings to build a solid foundation. However, before becoming an entrepreneur business owner, it is crucial to develop a solid business plan.

Lottery winners should contribute a minimum of 10-percent of their winnings into financial products such as high interest savings accounts, money market accounts, savings bonds, or certificates of deposit. It is best to consult with a financial planner to develop a strong investment portfolio and protect winnings from excessive taxation.

Lottery winnings can provide financial freedom to those who implement solid investment strategies. Those who win large amounts of money should organize a financial team consisting of a lawyer, tax accountant, and financial planner. Don’t become a lottery statistic. Learn how to invest and allow your monetary windfall to generate more money!

About the Author: Real estate investor, Simon Volkov share insights about investing

lottery winnings

and establishing financial plans to maximize winnings. His article library provides information and resources about real estate investments, financial investments, and strategies to minimize taxation at



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Federal Reserve Ruling On Overdraft Fees 3 Key Points

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By Larry Donaldson

Overdraft fees. The words strike fear and loathing into the hearts of bank customers everywhere Also called overdraft charges or NSF fees, they result whenever you make a charge, write a check or withdraw money from a checking account that has too low of a balance to cover the pending withdrawal.

Of course, in the old days of banking, when you didn’t have enough money in your account to cover a charge, your bank simply rejected it while you were still at the merchant. But, today we live in the era of overdraft protection programs. These cleverly-named programs protect the customer from being embarrassed at a store, restaurant, or gas pump for having too low of a balance to cover a charge.

At the same time, for over a decade these programs have also done a great job of “protecting” the profits of banks: to the tune of $25-$30 billion per year in the U.S. alone. In theory, these programs protect bank customers. But, the way they are operated by banks means that in reality they are slanted toward benefitting the banks.

A few years ago, the Fed (United States Federal Reserve) caught onto the scheme. A November 2009 Fed ruling was put into effect in the summer of 2010 to help protect consumers against overdraft protection programs. Here are the 3 key points on the Federal Reserve ruling on overdraft fees:

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1. The ruling affects the way in which banks can sign people up for overdraft protection programs:

Before the ruling took effect, new bank customers signing up for a checking account had to effectively raise their hand and say, “I do NOT want to enroll in your overdraft protection program.” This opt-out strategy meant that most customers – who sometimes were not even adequately made aware that they were even being automatically enrolled in the programs – just allowed themselves to be enrolled.

The trouble is, most customers do not realize that they can be in situations whereby, for example, in a single day of shopping they could make 5, 6, 7 or more charges against a too-low-balance checking account and incur $200 or more in overdraft charges in a single day.

The new Fed ruling forces banks to offer the programs instead as opt-in programs, meaning the customer has to actively show interest in and sign up for the program in order to enroll.

2. Under the new ruling, you cannot be discriminated against if you choose not to join their overdraft protection program:

The new Fed ruling offers other protections, as well. Specifically, a bank is prohibited from penalizing you in any way if you choose not to opt in to the said overdraft protection program.

3. The ruling does not limit banks from charging you overdraft fees:

Despite the needed and very important advances that this Fed ruling represents to bank customers everywhere, it unfortunately does not save a customer who does choose to enroll in the programs a single dime in overdraft fees. Meaning: those customers who want overdraft protection but not all of the crazy fees are back to square one.

Take these 3 key points regarding the Federal Reserve ruling on overdraft fees into account. Then, consider switching banks to one that will never charge you an overdraft fee, even if you overdraw your account.

About the Author: Find a list of no-overdraft-fee banks in your area at:

No Overdraft Fee Banks



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