Social security is the term used for federal program (OA SDI) in the United Sates. It began to make headway in1935. The prime motivation of this federal system is to provide financial support to its nation’s workers in retirement. Such an existence of a social security system is left concealed among most of the country’s workers and elderly citizens. It is an outrageous fact that only 1% of the US citizens were acquainted with the social security available as per the AARP survey conducted by financial advisors last year. The fact of the matter is that if one does not understand this basic amenity, he cannot secure the advantage of its benefits. Here are the five things everyone should know about social security: • Educate yourself: Educating yourself about social security will help you make the best decisions regarding your retirement. Working with a qualified planner who takes a holistic retirement planning approach that includes tax planning, risk management, and health care into consideration will also help to ensure you enjoy your stress-free retirement. So, work with an experienced retirement planner. • Disability payments: In case you develop physical or mental impairment and want to wind up your job; you still may be qualified for disability payments.

There’s more to retirement planning than just funding your 401(k) or IRA. One of the chief reasons why people engage a financial planner is to know if, and when, they can retire. Just the thought of retirement can cause anxiety and many feel overwhelmed and unprepared. Listed below are some retirement planning mistakes that one should avoid. Not having a plan According to a survey, currently close to 48% of the working American population hasn’t calculated the amount of money they need to save for retirement. The truth is once you have a goal, actions to achieve the goal materialize. It isn’t just enough to fund your 401k and leave the rest one needs to have calculated retirement goals, have a step-by-step action plan and indulge in a bit of personal finance planning for their own sake. Calculating figures wrong One needs to have a ballpark figure as to how much they’ll need in retirement. Higher assumptions make the goal appear unattainable, lower assumptions could lead to a difficult financial situation later. The general thumb rule is that one needs at least 80% of their current annual income in retirement bear in mind that in the first few years of retirement one will spend more on lifestyle (travel, entertainment, eating out) while in the later years, health costs will escalate.

Getting the right retirement calculator will help solve many future issues related to income and planning. There are a number of things such as health care, house, day-to-day living, which requires substantial amount of money to sustain one’s living during the old age. If you have calculated your retirement income well, then you are sure to get many things in place and enjoy a fulfilled retirement life. This is the reason why retirement calculators are so important. Apart from knowing the importance of these retirement calculators, it is equally vital to find the best retirement calculators. With a number of options both online and off-line, it is always best to compare various choices and pick the best retirement calculator that suits your retirement needs. Different criteria for choosing a retirement calculator Price of the calculator should not be that big a problem as there are many online calculators that are available for free. If you already know of a platform for calculating the retirement income, then you should decide on how much time do you want to invest in getting the results. If you’re looking to get simple answer such as whether you’re on right track or not, then you should opt for low fidelity retirement calculators.

Do you find yourself at a loss when you’re buying something? Are you lost when trying to startup your own business – freelance or full-time? Well, what you may need is a consultant. Why do you need a consultant? Well, for starters, they know what they are talking about. They don’t advertise for the sake of advertising and most they have knowledge, experience and the license to give you relevant information. Consultancy isn’t limited to products or buying things. You can get a consultant if you’re not sure how to pay your taxes on time. If are looking for a way to not pay taxes or avoid them and need someone to guide you, a tax consultant may be of help to you. There are consultants in every field imaginable. There’s endless options for you. If you’re planning to startup your brand new business idea, a consultant can guide you about what to watch out for. Hiring one can save lots of time, money and energy. How to spot a bad consultant Depending on who you approach, after verifying their credentials and work, you’ll need to trust your gut. But more importantly, everyone is human and prone to making errors.

Target date funds are all about setting a date, and forgetting all about it until retirement. New to the concept, and looking for some great investment firms to help you out with your plans? What makes a great target fund is that it doesn’t impede the retirement investment plan during its fund allocation processes. Growing your fund for retirement doesn’t have to be hard. Approach the right firms with the right intentions. Here are a few great choices if you are looking to invest in target-date funds. Vanguard Target Retirement 2050 Fund What makes Vanguard great is that it’s an ideal mutual bond firm. It’s similar to your own personal investments, and easy track of it. It works like a mutual fund company and is majority owned by its investors, hence the low fund fees. Their target date funds range in five-year increments (from 2020 to 2060) and they invest in only four indexes. The Total Stock Market, Total Bond Market, Total International Stock Market and finally, The Total International Bond. What makes it even more secure is that the plan is designed to create greater investment returns. If you’re planning on buckling up and building your nest egg for your retirement years, then this one might be the best option for you.

2017 has arrived with a new administration in the country, and many of us are aware of changes in financial policies. Market conditions may fluctuate and inflation could be affected. But these changes should not affect your money management strategy. If you haven’t set a lump sum aside for investment, now is a good time to start. If you are not averse to taking risks, there are many investment options on the table. Take a look at these, and evaluate which of them best suits your needs. Before following any of these options, take advice from a certified financial adviser. Mutual Funds Mutual funds can yield great returns. If you are uncertain of how best to invest, utilize the services of a professional fund manager. Your investment will appreciate over time, and give good returns if the market is positive.You can start with a small amount, and then add as you proceed, aiming for higher returns. But remember, take the well-researched advice of your fund manager on board. Certificate Of Deposits If you want to take absolutely no risks with your money, then CDs are the best option. You can use this scheme from any bank or financial institution. You can invest in short or long term schemes, depending on your needs.

With the new administration in power, concerns about inflation and interest rates matter. You might be concerned about the financial policies of the new government. Despite this uncertainty, many experts suggest that investors and small banks have actually made a profit. Leaving the political scenario aside, you would be wise to invest if you have money to spare, whatever the financial season. A good investment will start small, with an eye on returns. Here are a few options you can use to make the best of your money. As always, when it comes to money, start with researching and comparing schemes. Here are few good guidelines regarding investment: Pay Off Existing Debts: Settle debts so that you’re not paying interest to lenders. Once you’re debt-free, you can start putting money towards investments. The first step you can take to make money, is to pay off your debts. Start An Emergency Savings Fund: An emergency fund is to cover unexpected financial shortfalls. This fund needs to be accessible, liquid or short term, so you can easily use it if disaster strikes. The money in this fund should be enough to meet your expenses for six months. This will ensure that you and your family are secure in case of emergency.

If you’re nearing retirement, or planning for the future ahead, saving up for your retirement is always a smart move. These are many finance savings instruments in the investment market these days. Income fund plans are one of the most beneficial, especially in terms of long term goals. Saving for your retirement doesn’t need to be a chore; in fact, it can be pretty easy if you take the right steps. If you’re looking for a couple of good income fund plans, read right on. These five popular income fund plans are categorized on total returns, return consistency, capital preservation, and low expenses. First Trust Morningstar Dividend Leaders Index (FDL) With a 20.27 percent 3 year annualized total return and a 3.22 percent 12-month yield, this one of the popular ETF plans. It ranks within the top twenty-two of the U.S. News Best Fit List. First Trust Morningstar Dividend Leaders Index usually invests 90 percent of its total assets in common stocks that comprise the index, which is tracked by the FDL. iShares Dow Jones Select Dividend Index (DVY) This plan offers a 3-year annualized total return of 21.06%. DVY helps track the iShares Dow Jones Select Dividend Index which comprises of the 100 highest yielding stocks in the Dow Jones U.S.

Ask someone for advice about managing your personal finances. Start reading personal finance columns or blogs. You will keep hearing a common refrain: Invest and build funds for your future now. You cash reserves are vital in an emergency. They provide a safety net against volatile investments. One bad decision could wipe out profits and your capital. Just putting money aside in savings accounts won’t help you live a comfortable lifestyle in the future. Inflation will reduce the value of your dollars.Invest now. Investments, how to begin. Review your finances, and create a budget. Start thinking about investing those spare funds in your future. Start Young: When you get your first steady job, don’t be tempted to spend all your income. Create a budget before you start investing. When you start saving at a young age, your money has more time to grow. Compounding earnings, and a longer time frame to ride out losses, give stronger returns on capital. It is better to start investing when you’re 23, rather than 33. The closer you get to retirement age, the less your capacity to face risks. Look At The Long Term: Trading in stocks has the potential to give you quick returns, but comes with its own set of risks.

Let’s say you’re creating an investment portfolio, and have diversified investments. The earnings on your investments each year add to your wealth. You can take out these earnings as extra funds to use as you please. It is your money, after all. However, if you put these earnings to work, you could increase your wealth over a few decades. Compounding Your Earnings The formula for calculating your earnings through compound interest is: A = P (1 + r/n)^ (nt) Where: A = the future value of the investment P = the principal, or the original amount invested r = the annual interest rate in decimals n = compounding frequency (the number of times that interest compounds per year) t = the term or the number of years the money is invested Albert Einstein is said to have described this formula as the greatest mathematical discovery of all time. This illustrates the power of compounding. What Compounding Can Do For You Compounding is when your earnings are reinvested and the interest becomes principal. Suppose you invested $1000 at 6% and it earns you $60. You then put this back in your investment and now the total principal is $1060. The next interest calculation will be on this amount, increasing your earnings ($63.60).

Tax is a part of money contributed to the state revenue, levied by the government on an employee’s/citizen’s income or imposed on the purchase of goods. Tax returns are the reports used to calculate the income tax or other taxes. They are usually filed with the IRS or state or local tax collection agency. The IRS or other taxing authority has a standard form prescribed for all the tax payers to fill in. At times you are prone to make mistakes while filling out your tax returns but this can cause major financial losses as well as excessive paperwork. Therefore, it is of utmost significance that you meticulously deal with the tax returns. These are the 4 things that you should know about tax return, that can help you avoid major mistakes. Fill in the right status of your situation If you are the sole breadwinner of a household, a widower with a dependent child, or a senior, then it can considerably help you get some tax incentives. So, always make sure that you are aware about the exemptions provided to people belong to specific categories, and get the details right. Married couples may pay less tax if they submit separate tax forms rather than jointly.