Business owners often presume that it is best to keep personal finance and business finance separate. They assume it is only practical to compartmentalize financial aspects of their personal life and their business requirements. However, this is not true. It is quite possible that your personal credit might adversely get impact your business. Even if you keep them separated, bad personal finance decisions can affect your business as well. Below are the eight poor personal choices that might have a negative effect on your business: Inability to get business credit: This might happen when your personal credit shows late or non-payments or if you report bankruptcy on your personal credit reports. This type of information may show up easily and can be easily reviewed by business credit sources. In such cases, a financial company that you approach to extent capital to you might question your ability to repay back the debt. This might lead to further rejections in terms of bank loans as well as business credit card applications. High interest on any loans: If someone take a chance on you as well as offers you any kind of business credit, then you will have to pay extremely high interest rates on that credit.

You may or may not have any idea regarding managing your personal budget, but you can do that simply using a personal budget application. For this, you may certainly need a smartphone or tablet; you can become much smarter with your finances. Here are some of the popular personal budget apps that can assist you to manage your finances and make them more secured. Many people refrain from installing such apps by seeing the word ‘budget.’ However, there is nothing much to worry; you can simply track your expenditure to meet your financial goals. You will be able to find several options to maintain your budget, such as an app or a tool that could assist you in maximizing your savings and balancing your expenditure by making proper investments. Digit It seems like smartphones can do everything these days, which even includes savings. ‘Digit’ is a new app that has been endorsed by Google. It automates saving in a new way. Instead of deducting a specific amount every month, this unique personal budget app monitors or operates your spending habits to find out how much money you can afford to spend. Debt Payoff Planner This personal budget app’s working is akin to DebtTracker.

Traditional and Roth IRAs are the widely preferred investment plans as both these plans offer to allow the income to grow tax free by deferring the taxes. The amount deposited in the IRA accounts are levied with no taxes on the dividends or capital gains made through its contributions. Merits of Traditional IRA: Anyone who has an earned income is allowed to contribute with a maximum limit of his annual earned income. An individual is not compelled to any one type of investment and is free to choose from a range of options like stocks, annuities, mutual funds, bonds, etc. The investment grows tax-deferred until retirement at the age of 59.5 which gives an advantage of paying less taxes if the tax bracket is lower ate the time of withdrawal. The contributions can be made right until mid-April of the next financial year to make payments into IRA giving a longer period to add savings to the account. De-merits of Traditional IRA: Once the age of 70.5 years is crossed, one is compelled to take the Required Minimum Distributions (RMDs) failing which heavy penalties will be charged. This plan may not be useful to save tax if already covered by another retirement plan at work based on the income slab and tax rates.

According to the Retirement Readiness Survey by Fidelity, today people are saving and investing better for their age, which has resulted in improving retirement readiness across households in the country. This article examines the how people save for retirement, what the average retirement incomes today are and ways to boost retirement incomes. How people save Most adults get their average retirement income from the following sources: Earnings: 23% of adult Americans have work income, with the median retirement income earned being $25,000 annually, according to the AARP. P.S.: This is the highest amount of any income source. Assets: 63% retirees rely on assets, with the median asset income (householder/spouse is 65 years of age and above and receive asset income) for American households is $1,542. This number was 59% in 2008. Pensions: Only a shocking 32% retirees today have pensions, a number which is expected to decrease further. Social Security: 85% of people aged 65 years and above get Social Security, the average for which in the year 2017 is $1,360 according to a Social Security Administration factsheet. Veteran’s Benefits/ Public Assistance: Around 7% retirees derive income from government sources. Average and median retirement incomes 2017 This data below shows average retirement incomes for 2017 for households of different ages.

What is an individual or a solo 401(k)? Also called as Uni-401(k) plan, an individual 401(k) plan is an Internal Revenue Code (Section 401) approved a qualified plan for retirement which is specifically designed for self-employed or sole-owned businesses. Similar to traditional IRAs, this plan offers cost-effective and tax-efficient investment options along with a few additional benefits. Although any business model which meets the criteria is eligible under this plan, it is most suitable for independent contractors, consultants, real estate agents etc. Initial funding for this plan can be done through rollover funds from traditional IRAs, SEP plans, previous 401(k) plans, profit sharing plans, defined benefit plans, 403(b) plans etc. by setting up new trust account or by transferring all the funds to the current custodian trust account. Benefits of an individual 401(k) plan: Taxes can be reduced on contributions and the earnings can grow by deferring the tax. Assets are tax-free until withdrawal at retirement. As the plans and agreements are customized by self, the administering requirements are fewer and simple compared to that of traditional plans. No complications of filing a Form 5500 unlike the traditional 401(k) plans to be IRS compliant until the plan reaches $250000. Unlike the traditional 401(k) plan, there is no vesting schedule for the business as one would be vested immediately.

Health insurance has become a necessity, more than a precaution today owing to a number of health complications people face on a regular basis. AARP Insurance provides healthcare and Medicare with supplement plans for the elderly through its non-profit organization. Exclusive member benefits include professional consultation with experts who will guide you through the various steps when you are eligible for Medicare, and AARP Medicare supplement plans 2017. However, here are a few things you should know before browsing for AARP Medicare plans: AARP Medicare supplement plans have maintained a stable rate of 2.9% increase annually for the past four years. Members will have the added benefit of switching from one AARP supplement plan to the other and can also avail discounts on plans offered in more than 36 states. Retirees who have enrolled into AARP Medicare and supplement insurance plans after the age of 65 as per the specifications of AARP, massive enrollment discounts of 30% are offered which will keep decreasing by 3% after that every year. Cost and benefits of AARP plans have to be evaluated to understand the which Medicare and AARP Medicare supplement plans 2017 are best suited for you. AARP open enrollment happens once a year which is why asking the right questions will help compare plans and choose from the best available at low cost or even no cost.

You are required to pay significant fees when you go for an annual dental check-up. Add in all your family members, and the amount multiplies quickly. Dental insurance helps you get high-quality dental care at much-reduced costs. Choosing the right dental insurance for your needs Dental insurance from a reputable provider will cover everything from routine tests to complex dental problems. Rather than avoiding a visit to the dentist because you can’t afford it, invest in dental insurance. It will not only save you money but offer peace of mind as well. Which scheme won’t hurt your pocket? The first concern that deserves your consideration is your monthly budget. There are two types of dental insurance plans- DHMO (Dental Health Maintenance Organization) and PPO ( Preferred Provider Organization ). It is crucial to understand the differences to make an informed decision. With a PPO, you can select any dentist with no hesitation. You will only have to contribute a co-payment for the process. But the cheaper alternative, the DHMO, you will have to select a primary dentist from the given list. For a particular treatment, you would have to get a referral from your primary provider. So, with the PPO you have more freedom to use the service, but the premium is also higher than the DHMO.

A retirement plan is a monetary flow after your retirement from the service. This can be set up via employers, government plans, banks and private investment interests. All of these plans currently do exist in US and are approved by the fair law and regulations passed by the Department of Labor in the constituency of the country. Retirement plan can also be called as a pension plan, which, when planned properly, ensures you an easy, steady flow of money from you have contributed to various types of savings for your future. It is, in the end, an investment plan to be precise. Investments can be made through more than one way, could be stock market, private pension fund, corporate pension funds etc. Corporate pension funds Most companies offer corporate pension funds to their employees as part employee welfare. As an employee contributes a certain percentage of his or her payout for pension fund, some of the employers also contribute. They usually match the dollar that is being put into the savings by employees. The funds are availed upon retirement, which acts as a steady income for your livelihood. The plan is to start doing this kind of savings from beginning of your tenure so that by end of the couple of decades of working, you would have a steady income when you retire.

Are you looking for a better yield on your savings? Better investment rate for your earnings compared to a revenue market or savings account? A certificate of deposit is what will need to earn benefits for your investment over a short period of time. So, what is a certificate of deposit (CD)? A certificate of deposit (CD) is a record issued by the commercial banks where your investment is awarded with fixed interest rates that is determined ahead of time and a fixed maturity date. CDs are the most reliable investment that a person can make. Common types of CDs that you can choose from Traditional CD: If you opt for this CD, you would receive a fixed rate of interest until your savings account is matured. Once the investment period is completed you can either withdraw the money or invest it again in another CD. Bump-Up CD This CD gives you a chance to raise the interest rate and allows you to take advantage on the rising taxes. Most of the institutions offer this type of certificate of deposit at least once during term of CD. Liquid CD The advantage of this type of CD is that it allows you to withdraw a part of your deposit without paying a penalty.

An Individual Retirement Account (IRA) seems like an ordinary bank account that helps you save but what makes IRA reliable is that investing money in it is a simple and tax-effective way to plan your income after retirement and it is very easy to open one. Once you open an IRA, you can invest the money in the account in any number of ways. E.g.: Stocks, mutual funds, bonds, cash etc. and you can trade it as often as you like. What are the other advantages of having an IRA? IRA provides you with the liberty of choosing the bank or brokerage and take decisions regarding your investments. What more? Based on the eligibility, you get to decide how and when you would get a tariff break. Additionally, you can contribute or invest in multiple plans available. What are the best IRA plans available? With so many retirement income planning options to choose from IRA, you might find yourself in a pretty competitive field. Of the many, the following are the three most popular IRA plans that have lower fees and provide better service irrespective of you being a fresher or an experienced trader – Roth IRA, Traditional IRA and Rollover IRA.

Selecting a person who will be in charge of your money can be quite a challenging task, which is why you need to understand the different types of financial advisors and their specializations. Financial planning is imperative to build a nice comfortable retirement nest egg so that you will not have to worry about making rent and payments for utilities in your golden years. Different types of financial planners will provide both general and specific services. Here are five financial planners who are adept in analyzing your portfolio and utilizing financial planning tools to help build you that nest egg. Stockbrokers: Stockbrokers are registered representatives who have a good knowledge of the different investment products available in the market. These financial planners qualify after taking the series 6 & 7 exams and register with the Financial Industry Regulatory Authority, to obtain their license to practice as a broker. Stockbrokers will not advise you on the best financial planning tools rather they will use these tools to sell you different products to invest in and earn their commission, while you make a profit to be saved for retirement. Investment advisors: Individual advisors or investment agencies will advise the best possible course of action to be taken on certain financial products, mostly securities.