Get great financial advice on debt, savings and loans.

If you are confident that you have enough income and capital to be able to afford to give money away in order to reduce your children’s inheritance tax bill, then there needs to be serious consideration given to which type of trust structure to use. For example, suggests new website, Inheritance Tax Review, you may wish to gift all the money but still receive an income from the investment, or you may want to retain access to the capital should you need it but place all the future growth outside your estate immediately (therefore avoiding having to wait 7 years on this part of the money). You may not want an income but would like the option to start an income in the future or you may like to receive an immediate ‘discount’ in the inheritance tax you’d pay if you were to die within 7 years of setting up the trust.

Since Gordon Brown introduced Chargeable Lifetime Transfer charges to Discretionary Trusts holding over £325,000 it has meant people need to plan their strategy extremely carefully in order to avoid having to pay a 20% tax charge on money going into the trust. One solution would be to use a Bare Trust instead, but this brings up issues regarding the plan being considered as part of the beneficiary’s estate should they get divorced, go bankrupt or even pass away themselves to avoid the money being chargeable against inheritance tax twice!

Therefore we always advise people to seek professional independent financial advice before making any plans regarding their inheritance tax strategy.

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I’ve been doing an inheritance planning review with my financial adviser recently but can’t decide what to do. He believes it is possible to hold my money in an investment which would qualify for Business Property Relief and therefore not be counted in my estate for inheritance tax, assuming I hold it for at least 2 years. I’ve never heard of an inheritance tax solution working quicker than 7 years so this sounded very interesting. The other problem I had was that my existing investments are all in shares where there would be a large capital gains tax charge for moving the money out. However this new plan seems to solve this issue as well. Apparently it would be able to defer any capital gains tax charge and therefore I’d only pay the tax if I were to cash in the new investment. Assuming I keep the new one until I pass away then the tax charge would ‘die with me’ and therefore not have to be paid.

I thought this sounded too good to be true and asked whether the investment is risky and could lose my money. Apparently the plan looks to keep the initial amount safe and then return 3% per year. This isn’t a fantastic return but if it can save my family paying £80,000 in tax then I’d be very interested.

I’ll let you know when I’ve decided!

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If you’re like many Americans, you may expect to enjoy a comfortable retirement, but you probably haven’t taken the actions needed to turn those hopes into reality.

The latest survey showed many Americans’ retirement expectations are like a piece of Swiss cheese-full of holes. For example, many have accumulated only modest retirement savings, underestimating the share of their preretirement income they are likely to need in retirement, and have made no estimate of how much they will need to live comfortably once they retire.

The Retirement Confidence Survey (RCS), begun in 1991, is the country’s most established and comprehensive study of the attitudes and behavior of American workers and retirees toward all aspects of saving, retirement planning and long-term financial security. The survey is sponsored by the Employee Benefit Research Institute and Matthew Greenwald & Associates.

Here are some of the survey results:

• Saving: More than two-thirds (68 percent) of current workers say they and their spouses have accumulated less than $50,000 in retirement savings.

• Health care costs: Nearly six in 10 (58 percent) of current workers say they and their spouses do not expect to receive any health insurance from their employers when they retire. Recent EBRI research showed that individuals age 55 who live to age 90 would need to have accumulated $210,000 (by age 65) to pay for insurance to supplement Medicare and out-of-pocket medical expenses in retirement-far more than all but 10 percent of workers currently have saved for all retirement expenses.

• Longevity: Two-thirds (66 percent) of current workers think they have some chance that they will live until age 90-or spend 25 years in retirement, assuming they retire at age 65. These findings suggest many workers may not be planning and saving enough to finance the full amount of time they expect to spend in retirement, thereby increasing the odds that they will outlive their retirement savings.

• Income replacement: Fourteen percent of current workers said they thought they would need less then 50 percent of their preretirement income to live comfortably in retirement. Another 36 percent expected to need 50 to 70 percent. However, 62 percent of current retirees say their income is 70 percent or more of their preretirement income.

• Planning: Nearly six in 10 current workers (59 percent) said they hope to have a retirement standard of living equal to or higher than their working years. But when current workers were asked if they or their spouse have calculated how much money they will need to retire comfortably, nearly six in 10 (58 percent) said no.

“Recent research has found that when a ‘traditional’ pension is frozen, many workers in the pension are unlikely to get an equal benefit value contributed to their 401(k) plan,” said Jack VanDerhei, a Temple University professor, EBRI fellow, and co-author of the Retirement Confidence Survey. “Each case is different, but it’s clear that people currently working should factor into their retirement planning the long-term trend away from ‘traditional’ defined benefit pensions and toward 401(k)-type plans.”

He added: “We find there are a lot of people who need to be saving more than they are, if they hope to be able to afford a comfortable retirement.”

“Working ‘in retirement’ may be one partial solution,” said Michael Falcon, chief operating officer of the Retirement Group at Merrill Lynch-a sponsor of the EBRI study, as well as its own New Retirement Survey. “Seventy-seven percent of our respondents say that ideally, they would work either full-time, part-time, or cycle back and forth between work and leisure before they quit work completely,” Falcon said. “Working beyond normal retirement can obviously help financially, but Americans also say they are interested in working to stay socially and physically active.”

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Keep Your Banking Information Safe
by Tomas Cullin

It would seem that the computer is becoming a bigger and bigger part of our lives each and every day. There’s good reason for that perception… it’s true. One specific area that is becoming incredibly popular is online banking. Customers love it because it is very convenient and a great time saver. The banks love it because it automates a great many functions for them and cuts down on their overhead.

The number one concern of anyone that deals with online banking should be security. Putting your personal information over the Internet can be risky, there is no denying that. Fraud and identity theft have become huge problems in the modern age. There are any number of hackers and thieves out there in cyberspace just waiting to prey on innocent people. They lurk in the deep spaces of the Internet just waiting for some of your private information that they can steal.

Fortunately for us, the financial institutions of the world are very aware of this problem and are working aggressively to combat it. There was a time when a bank’s chief security concern was whether they would be robbed or not. I think we’ve all seen the old movies about Bonnie & Clyde, John Dillinger and the like…to say nothing of the daring train robberies of the wild west. Now banks face a new and much deadlier challenge than ever before, and instead of wearing a mask and using a gun, the bad guys are now invisible and use keyboards. They can access information from the safety of their homes and apartments. And even at the local coffee shop through wireless connections.

Identity theft has now become so prevalent that thieves are rifling through garbage to attain any information that they can use to steal from their unsuspecting victims. With this said, there are some simple, common sense approaches that will go along way to securing personal bank information.

1. Do not share your passwords with anyone and make sure if you write it done put it in a safe place where only you know where it is.

2. Keep important documents locked in a safe or safety deposit box.

3. Shred documents that you no longer need and use a cross cut shredder.

4. If you bank online, make sure your bank is using a secure, encrypted site (It’s OK to ask what security features they employ). Make sure they use https in the address and you should see the lock symbol in the lower right hand corner of your browser.

5. When using an ATM make sure no one can see the codes you enter.

These are a just a few of the things that can be done to keep banking information secure and to avoid possible crimes against you. While many of these suggestions seem to be glaringly obvious, all to many times they are taken for granted or just plain ignored. It is at these times when the criminals are at their best. Individuals that grow careless and complacent are exactly what criminals look for. Don’t be counted as one of the careless!

You may copy this article and place it on your own website, as long as you do not change it and include this resource box including the live link to the Credit Repair Advice site.

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In life, nothing is permanent in this world. Everything that comes will definitely go. That is why it is best to put our best foot forward and save more for the future. The best thing that you have to start with is to have a retirement plan.

Some wait to long before they decide to plan for their future. This is not a good idea because we can never tell what lies ahead. So, here’s how and when to start retirement planning:

1. The retirement year.

First, decide on what year you would like to retire. It is always best to start something with a goal in hand. This will keep you focused and determined to push it through.

2. Do your homework.

The best way to help you start making your retirement planning is to consult your employer-sponsored 401(k) or IRA, or to any of your retirement schemes and investigate on the objective date of your mutual funds and see if it matches your target date of retirement. If it does, then start funding your nest egg immediately.

3. Backups.

There are many instances where your plan can backfire. So, it is best to have backups.

So, when making a retirement plan, better include a backup that will serve as a fallback in case your nest eggs fails or if something else goes wrong. It is best that you do not depend entirely on your funds because sometimes there are circumstances that are beyond our control.

3. Opt for annuities.

When doing a retirement planning, you should take note also of the different retirement planning strategies that will surely make your plan work. One good example of a retirement planning strategy is the annuities.

Basically, annuities are adaptable indemnity bonds that are exclusively patterned to bestow additional wages at the same time assist you accomplish long-term saving goals.

These annuities are the long-term items recommended by most insurance companies, though, there are brokers and other financial establishments that provide this kind of service. They will help you set-up a specific goal and aim for it.

There are two types of annuity: the immediate and the tax-deferred annuity.

In the immediate annuity, you start your retirement planning by giving a hefty amount of money to the insurance company or any financial institution for that matter. After which, your payment scheme will start at once. This type of annuity is usually applicable to those who are already 60 years old and above.

On the other hand, the tax-deferred annuities you may choose whether you will pay the retirement amount instantly or make a monthly disbursement until the time you reach your target date.

This is usually appropriate to those who start their retirement planning early, generally those who are 20 years old at the least.

4. Consider the Modified Endowment Contracts.

Annuities had been heading the limelight for so many years now. Most people would go for annuities, as this is the most popular retirement planning strategy. However, like most plans, it is still vulnerable to problems and crisis. That is why, it is best to make an alternative option when making a retirement planning.

The next best retirement planning strategy is the Modified Endowment Contract or the MEC. This is, basically, one kind of insurance policy.

In reality, MEC is similar to annuity, especially the tax-deferred annuity, in terms of the preliminary premium rates. Though, they differ in terms of tax codes.

In annuity, the tax code appears to be very unfavourable especially when the benefactor dies while the annuity accumulation stage is in full force. This, in turn, makes the deferred wage taxes on development suddenly becomes payable.

In contrast, the MEC resolves this problem by providing the benefactor or the beneficiaries with an insurance rider included in the agreement. The insurance rider is made to hand over the full amount to your recipients absolutely free from any taxes.

Moreover, MECs can give you the suppleness of choosing between the variable and fixed account preferences. This, in turn, will make your retirement planning relatively easier.

Nevertheless, whatever retirement planning strategy you choose, the bottom line is that it is really important to save for your retirement as soon as possible.

Most often than not, people linger on a little longer before they start making their retirement planning. This should not be the case because you can never tell what will happen next.

As they say, life is suspense; you will never know what it can offer you until the end. So, the best time to do retirement planning is now.

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Think about it. Can you remember when you first really thought about the subject of Retirement? Chances are, it was when you were in your 20s and the subject of retirement was so far in the future that you hardly gave it much thought. It was really difficult to think about something forty or more years into the future when there are so many pressures of the moment. Your mindset was probably something along the lines of Ill deal with that later!

By the time you were in your 30s, you may have been married and perhaps had children, a home, family responsibilities, and a career underway. You may have been watching your parents go through the retirement phase of their lives. Chances are, they benefited from having a corporate pension to supplement their Social Security check. You may have assumed that those kinds of perks were standard and you came to expect that you, too, would have such a cushion. From a mindset perspective, you didnt worry much as your expectations pretty much remained intact.

Then, into your 40s, a few new words, like downsizing and outsourcing made their way into your vocabulary. More and more companies changed their benefit plans and eliminated pensions in favor of 401 (k) plans and other programs that were more based on employee contribution. Hopefully, you survived this era with your retirement plan intact, but only a few did. Skepticism and general wariness symbolized your mindset then.

Into your 50s and an outright dynamic change occurred in retirement planning. Gone away were the pension plans of yesteryear and the emphasis became how to grow your tax advantaged savings to build a sizable nest egg for retirement. But, of course, by that time you were probably caught up in credit card debt, had more house and cars and toys than you needed, and it was increasingly difficult to put anything extra away for retirement savings. Denial could be a good term for the mindset of your 50s. You knew you had a problem, but without the cash to do something, you just put any discussion of retirement planning on the back burner.

Now, as you approach your 60s, panic has set in to some extent! Our government surveys tell us that 75% or people reaching age 60 have saved less than $25,000 toward their retirement! Theres a whole lot of political discussion about the Social Security System, but nobody is talking about increasing benefits or lowering the full retirement age. No, quite the opposite is happening.

Now you are approaching what you think is your retirement Red Zone that 10 year period starting 5 years before retirement. Unless you are among the very fortunate that have a sizable nest egg secured, you are faced with working longer into your 60s or 70s before you can retire and you can only hope that your health holds out that long. If you have the energy, you and/or your spouse are considering a second job to help the retirement cause.

Well, you are not alone! There are millions of Baby Boomers who are about to turn 62 and hit retirement age. Many, many of them have the same savings deficit that you do. Our society is changing and it is doing so very rapidly. You can differentiate yourself from the masses by actually doing something about your retirement savings shortfall. And, you can start doing it today!

The age of the Internet has provided us with an amazing communication tool. You can now take advantage of the Internet, at a very modest cost, to provide some needed extra cash for your retirement plan. All it takes is an investment of time on your part!

You see, during your life, you have accumulated a lot of knowledge on certain topics. That knowledge and your experiences make you quite unique. If you can refine, codify, and package your specific knowledge, there is a way to earn income by sharing that information. You see, there are millions of people performing searches on the Internet everyday trying to find information on a wild array of topics. You can bet that there are lots of searches every day on the topic that you know so much about!

There are mechanisms in place on the Internet to help you share your knowledge and information with others and, in return, establish a steady source of income to supplement your retirement. You DO NOT have to spend a lot of money to accomplish this. Many people are doing this every day!

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Jonathan Clements writes the very popular “Getting Going” column for the WSJ that covers all sorts of personal finance issues including retirement, financial planning, saving, investments, and spending patterns among many others. It’s a basic “how to” column on managing your finances. He is a most practical and sensible writer and widely read.
He doesn’t venture into the health and fitness arena that often but when he does he brings his normal no nonsense approach to the issues and is direct and blunt about the realities of how your lifestyle, fitness level and health will affect your finances in retirement. Essentially, he saying that those that exercise and maintain good health are going to have a longer retirement and need to plan their retirement savings accordingly.

However, those that don’t practice good health routines may not live as long but their retirement may be just as costly because of their additional health and long term care costs.

Money quote:
“Yes, if your family history and your own health suggest you will live to a ripe old age, you should save enough to carry yourself through 25 or 30 years of retirement, and maybe more.
But if you are overweight, never exercise or smoke a pack a day, you could still need a fair amount saved for retirement. True, your retirement may be relatively short.

But it could prove mighty expensive. There’s an increased risk you will suffer a debilitating illness or struggle with your mobility, and thus you may get hit with long-term-care costs — possibly the biggest expense that retirees face.”

This article is sponsored by: http://www.getfitsource.com

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Most experts on the subject believe that the Social Security system will be bankrupt in about 15 years. However, some new studies have offered a ray of hope. They seem to indicate that the assumption that the boomer generation will retire at 65 or 67 and sit back to collect their social security checks is incorrect.

They believe a sufficient percentage some estimates are as high as 80% – will continue to work in some capacity or another, relieving much of the pressure on the system.

This is probably the only ray of hope for many who have visited financial planners or bought personal finance software to see how much they need for retirement. These usually show you need a million or more dollars to retire with your current lifestyle. But again, they dont take continuing earnings into account.

Many in the baby boomer generation plan to retire at around 65, but then start a second career, doing something they enjoy. Most dont want to continue on in their present jobs or move to low paying work at fast food restaurants or supermarkets.

Rather they would rather make their accumulated knowledge work and, if possible, also give something back to society at the same time.

Health experts say this trend will be beneficial in that by staying involved, those past retirement age will stay healthier and will be happier with their life.

So it seems that several trends are converging. Those in their 60s, 70s and early eighties are healthier than ever. Because of their increased longevity and the shortfall in their retirement savings, they need to continue to earn. And many companies who once looked on older workers with distain, now seem to realize the value they can contribute to the company and to society in general.

There is speculation that colleges and universities may allow retirees to earn fast track degrees, taking into account their prior education and work experience. Also some states are already loosening license requirements for teachers to allow those with degrees in fields other than education to become teachers with little if any further training.

Another way to continue to earn in retirement is by making wise investment choices now.

Buy rental properties, learn how to manage money effectively or start your own business now in your part time so that you have something up and running by the time you retire.

The internet has opened up new ways to earn, be it drop shipping, affiliate marketing or selling goods on Bay.

If you always wanted to be an author or if you can write software programs, it is simple to self publish and sell electronic goods through services such as Clickbank.

Or you could just do something youve always wanted, like baking breading or making shoes. If youre good at whatever you choose, you should have little trouble finding a clientele.

But if you are depressed because you have to continue to work after 65, dont. Youll have a lot of company and youll will also be healthier and happier for it.

For more advice on retirement planning and personal finance, visit http://www.credit-yourself.com/financial-planning.html

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Mr. Lamoreaux is a knowledgeable estate planner with more than 35 years of experience in the financial field. He offers his wisdom in a simple manner that lay people can easily understand. As more and more Americans begin to look toward retirement they realize they must have a plan.

Mr. Lamoreaux offers his expertise in developing that plan. Facing retirement is exciting and yet frightening. Life after retirement isnt always what weve envisioned usually due to lack of planning.

Whatever your vision of retirement might be, your goal must be to have enough assets to enable you to live the lifestyle you want. Only after youve acquired that amount of money through efforts and investments can you retire.

Mr. Lamoreaux simply defines such terms as net worth, cash flow, and budget. He offers advice on selecting a professional to assist you. He defines money as a tool that helps you accomplish your goals and dreams. He explains that debt is a hindrance regardless of what the ads may say. Topics such as Medical Power of Attorney, Guardians, Hospice and prescriptions are just a few of the important subjects you will learn about as you read this book.

This book is well written in a logical and concise manner. The print is a nice size for tired eyes. There is space at the end of each chapter to record notes. Robert Lamoreaux is knowledgeable and experienced in financial matters, and having raised fourteen children, he understands the need for budgeting.

Im glad I read this book and intend to share it with others. This should be required reading for those fresh out of college for retirement age comes faster than we expect. I highly recommend Winning or Losing: The Financial & Retirement Race to all adults. You will be facing retirement in the future. You need to be prepared.

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This is a question that I come across quite often when researching and discussing retirement planning and options. Despite the constant news coverage of impending doom in regards to Social Security many Americans are still counting on their social security payments to support them through their retirement. The sad fact is that it simply isn’t possible because the money isn’t there. Sadder still is the fact that even if the money were there, it is doubtful that it would be enough to get the average American through their twilight years.

Americans are living longer than they have in decades past. In addition to longer lives we are leading more active lives. Gone are the days when retirees sat at home reading newspapers and mowing the lawn every other afternoon. Today’s retirees are traveling, taking classes, learning to dance, and trying new things that they didn’t have the opportunity to experience while setting aside funds for the future and going about the business of raising their own families. Now they are taking the time to do all these great things and these wonderful activities and pastimes require funds in order to enjoy.

This is the number one reason you should begin as early as possible not only setting aside funds for your retirement but making active plans on methods by which you can invest those funds in order to maximize the potential of limited funds. This is the time that it is best to take your plans, goals, and concerns to a financial planner and see what advice he or she can give you on setting specific goals, better defining your plans, and making the most of your investment means while establishing a realistic investment strategy that will not leave you feeling strapped for cash month after month.

We often overlook the important role that a good financial planner and good planning play in our financial futures. The same could be said of our financial retirements. We need to take every opportunity that is available to us in order to maximize our money. A good financial advisor will know of funds and strategies that we have never heard of. It makes sense to go to an expert when it concerns our family’s future. We see experts when it comes to matters of law, health, and taxes-why on earth shouldn’t we see an expert for our finances?

Why is it so important to have a plan? The long and short answer to this question is so that you won’t end up needing a job in order to put food on your table once you’ve reached retirement age. The sad truth is that many of our retired citizens are finding themselves strapped for cash financially and barely able to make ends meet. If they are fortunate enough to have homes that are paid for, they often find the property taxes are a little more than they can handle without some sort of assistance. Medications are expensive despite government programs to keep costs down for our elderly, and then there are those who are simply living longer than their original retirement plans had accounted for. Combine all these factors with the fact that the cost of living has gone through unprecedented increases over the last two decades and you have some very real reasons to make plans for your future retirement.

It is best to begin making these plans as early as possible. It is not impossible to recover, however, if you begin the process a little later. The problem is that you will need to make some extra investments along the way in order to make up for lost time. The sooner you begin making plans for your financial retirement the healthier your retirement options will be. The best way to go about this is to define your retirement goals, make plans, and then take your goals and plans to a financial advisor and get his or her input. Investing smarter is much wiser than investing harder.

PPPPP

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