Personal Finance Wellness.

You won't be free until you are financially free!

Taxes

How To Retire Tax- Free.

It was Benjamin Franklin who said that nothing is certain in this world except for death and taxes. Americans are tax in four different ways when you make money, they tax you, you spend money, they tax you, you save money, they tax you, and when you die, they tax you. From sales tax to income tax to property tax to estate tax and every other tax, anywhere you turn, the IRS is waiting for your hard-earned money.

If there were strategies where you can legally reduce or avoid paying taxes during your retirement years. Is that something you would like to know more about, and if possible try to implement them in your retirement planning?

A Growing Tax Problem In The United States.

Taxes take a big chunk of your money as an active worker and also during your retirement if you don’t understand or use tax-free retirement strategies. Any saving and investment strategy must consider the tax impact on it. What is your current tax rate? What will the tax rate be in the future? Will taxes rise and fall during your retirement years?

We now know that with the COVID-19 and the recent economic crisis, millions of Americans are in danger of not having enough money to maintain their standard of living in retirement years. The consequences of these growing economic and savings crises could be severe for both American families and the national economy. Let’s look at the challenges ahead.

This post contains affiliate links. Please please read my Disclaimer for more information.

1. The Shrinking Tax Base – Between 1945 and 1965, when Social Security began, the decline in worker-to-beneficiary ratios went from 41 to 4 workers per beneficiary. And the number continues to decline due to the aging demographics in the United States.

The Social Security program matured in the 1960s, when Americans were consistently having fewer children, living longer, and earning wages at a slower rate than the rate of growth in the number of retirees. As these trends have continued, today there are just 2.9 workers per retiree, and this amount is expected to drop to two workers per retiree by 2030.

The program was stable when there were more than 3 workers per beneficiary. However, future projections indicate that the ratio will continue to fall from two workers to one, at which point the program in its current structure becomes financially unsustainable.

2. Mounting Debt Crises – As of August 31, 2020, federal debt held by the public was $20.83 trillion and intergovernmental holdings were $5.88 trillion, for a total national debt of $26.70 trillion. Guess who is going to pay for this debt? Our future generations. The government borrows most of it through public debt, which it owes to individuals, businesses, and foreign governments who bought Treasury bills, notes, and bonds. Foreign investors hold the largest share of the U.S. national debt. China and Japan top the list, holding more than $1 trillion each in IOUs.

As the tax base for workers per retiree is shrinking, the costs to provide retirement benefits, Medicare, defense, and infrastructure continue to rise. The government will have to choose between cutting down the budget or raising taxes. Many people believe taxes may have to go up in the future. What do you think? That’s why many Americans are looking for strategies to reduce or avoid taxes during their retirement years.

Tax Free Or Tax Advantage Retirement Vehicles.

These are legal tax-free or tax advantage retirement income financial vehicles;

1. Health Savings Account ( HSA) – This is a savings account used in conjunction with a high-deductible health insurance policy that allows users to save money tax-free against medical expenses.

2. Roth IRA – It’s an individual retirement account allowing a person to set aside after-tax income up to a specific amount each year. Both earnings on the account and withdrawals after age 591/2 are tax-free.

3. Roth 401(k)- It’s a type of retirement savings plan. It was authorized by the United States Congress under the Internal Revenue Code, section 402A, and represents a unique combination of features of the Roth IRA and a traditional 401(k) plan.

4. Roth 403(b)- It’s essentially a hybrid combining some features of a traditional 403(b) plan with some features of a Roth IRA. Roth IRA plans are self-established without any employer involvement.

5. Cash Value Life Insurance- It’s a form of permanent life insurance that features a cash value savings component. The policyholder can use the cash value for many purposes, such as a source of loans or cash or to pay policy premiums.

Indexed Universal Life Insurance (IUL 7702A).

It is important that all individuals understand that, by definition, a life insurance policy is a tax-deferred vehicle. It is not a tax-free vehicle. In other words, the cash value within a Universal Life Policy grows without being taxed, but if this money is simply withdrawn, then all the gains realized within the policy (the amount above the total premiums paid) will be taxed and taxed as income, not capital gains.

Let’s look at how Indexed Universal Life Insurance can help us retire tax advantage or tax-free. Let’s say you are going to borrow money to buy a new house or car. Is the loan you receive from the bank being taxed? No. The house or car may be taxed ( due to state sales tax), but the loan is not taxed. Right?

Loans are not taxed; items are not taxed. So Life insurance companies, in their brilliant ingenuity, created a contractual policy feature that allows the policy owner to have access to tax-free money by using their life insurance cash value as collateral. This feature enables the owner to avoid any tax on the money received because it is just a loan from a financial institution, not a withdrawal.

A policy owner can always take a tax-free withdrawal up to the total premiums paid into the policy, subject to surrender charges because the first money allowed coming out of a life insurance policy is simply a return of the owner’s total premium payments, which have already been taxed prior to being put into the policy.

However, if an individual wants to withdraw money above the total amount of premiums paid ( again, always subject to any surrender charges) then a withdrawal of this gain would be taxed. It would be taxed as income because the policy owner would now be withdrawing money that has not yet been taxed.

How To Access Tax-Free Money During Retirement.

For you to benefit from Indexed Universal Life Insurance as a tax-free retirement financial vehicle, the policy must stay in force until the insured’s death. The reason that policy must stay in force is that if the lapse or cancels for any reason, then all of the gains that have been taken as a tax-free loan will suddenly become taxable. You should sit down with your financial adviser should you want to include any of these products in your tax-free retirement planning.

Why Isn’t Everyone Using This Tax-Free Retirement Vehicle?

Many Americans aren’t using this Indexed Universal Life Insurance strategy for tax-free retirement income because they don’t know about it. And secondly because though this financial product is open to everybody who can qualify for and needs life insurance, it is often best suited for those who earn a relatively large income or for individuals who want to save more each year than what Roth IRA will allow.

During our retirement years, most retirees don’t have the monthly income to take of their living expenses and they would like to reduce or avoid paying too many taxes. If you would like to pay fewer taxes during your retirement years and have much money to spend on other living expenses and medical expenses, then please talk to your financial adviser to take a look at Indexed Universal Life Insurance as a tax-free or tax advantage financial vehicle.

“If you have any feedback about how to retire tax-free that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

 

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Financial planning

How To Get Out Of Debt With A Low Income.

If you ever thought that getting out of debt with a low income was difficult, wait until you try to get out of debt with a low income during this period of the COVID-19 pandemic!

We all know that the COVID-19 pandemic has triggered an unprecedented wave of business closures, placing millions of Americans out of work. It has also exposed a deeper, more structural problem with the United States economy that has been looming just beneath the surface for some time. In the following paragraphs, we will learn more about how to get out of debt with a low income during this difficult period.

Understanding Debt And How To Live Without Debt.

It’s often believed that debt can be used as leverage and that it can get you where you want to go faster than living a debt-free life. That can be true, but living with debt can also get you bankrupt faster than living a debt-free life. Debt has become a way of life in the United States.
Many Americans are now living from paycheck to paycheck as result, a lot of people are also in debt and some are still borrowing more money. Ironically, we live in one of the wealthiest countries in the world, but we always have money problems. We can work hard all our lives but retire poor. We do so much to raise our kids just to see them finish college with a lot of debt.

Debt becomes a way of life. We don’t have much, and we don’t know much. Nobody teaches us how to manage our money in school. Financial issues are not often discussed, and financial products are not always explained. Most people have trouble balancing their checkbooks and reading a financial statement. We use credit cards every day and don’t always understand all the hidden charges. We may be active spenders but passive savers. In my videos, I want to share with you about personal finance as to how a friend would talk to another friend.

This post contains affiliate links. Please please read my Disclaimer for more information.

Debt Management is one of the four pillars of building a solid financial foundation or living a life of financial freedom. We can not live a life of financial freedom if we owe a lot of debt. Most interest rates on our debts are higher than the interest rates on our saving or investment accounts. That’s why it’s advisable to pay off your first before saving and investing.

Don’t Get More Debt when you have a low income.

I know a lot of people might be wondering is it possible, yes it is very possible to live without debt. You can pay it all off and stop borrowing money. Some people get more debt when they have a low income because they spend more money on things they don’t need with money they don’t have.

What Is The True Cost Of Debt?

You’re paying lots of interest to someone else.
This money is not working for you. Here’s is why you need to know the cost of debt;

Rule of 72.

How to use the Rule of 72? Divide 72 by the interest rate of your loan or credit card. The result is the number of years it takes for the debt or investment to double. Let’s take a look at the following interest rates; 18%, 20%, and 24%.

72/18 = 4                              72/20 = 3.6                                 72/24 = 3

Assuming that you have a $10,000 credit card debt, let’s see how long will it take before the borrowed amount doubles!

At 18% interest rate, it will take 4 years for your borrowed amount to double to $20,000.
At 20% interest rate, it will take 31/2 years for your borrowed amount to double to $20,000.
At 24% interest rate, it will take 3 years for your borrowed amount to double to $20,000. This is why it’s good to pay your debt as fast as possible to avoid the double effect.

This is why it’s good to pay your debt as fast as possible to avoid the double effect. Here are the simple ways to manage your debt;

1. Don’t Get More Debt – If you borrow more money, the interest will skyrocket over time which you will not be able to pay.

Always buy used items from thrift stores and classifieds when you need to buy anything, including clothes, furniture, vehicles, and even appliances.

2. Live Below Your Means – Spend less and only buy things with your own money instead of credit.

Make a grocery shopping list as per your budget. Let’s assume you have allocated a certain amount for grocery shopping, then you shouldn’t spend more than this amount. You can buy groceries online to get all the items on your list at a huge discount. This will help you save on grocery shopping. Always use cash, debit cards, and prepared credit cards when shopping for groceries because you don’t have to pay interest rates. You are using your own money.

3. Reduce Your Credit Cards Usage – Many middle-class Americans turn to use their credit cards as a plastic money savior to help purchase necessary items when they have a lot of debt and low income.

4. Make a Budget – Budgeting helps you manage your spending and also helps manage your debt. Use coupons for grocery shopping and for dining out. Reduce gas and parking costs. Save by carpooling, walking, biking, or taking public transport. Avoid ATM fees, checking and saving accounts fees, overdraft charges bounced checks, money orders, the list goes on.

5. Cancel Any Unnecessary Subscriptions – Recurring payments can add up, even if you don’t have any unnecessary expenses. During COVID-19, my family canceled our gym membership because we not going to the gym, so we find alternative ways of exercising like using home gym pieces of equipment.     

Use Debt Snowball Method.

With the debt snowball method, you always put your extra money toward the debt with the smallest balance.

Here’s an example – Assuming that you have a credit card with a $1,000 balance, another with a $3,000 balance, and a third with a $7,500 balance. You make the minimum payments on each card, and any money left over would go toward the card with the $1,000 balance. Once you pay off that card with $1,000 you would put your extra money toward the card with the $3,000 balance.

Mathematically, the debt snowball method isn’t optimal. You would also save more money on interest rates by prioritizing debts with the highest interest rates on credit cards or loans.
Using this method is extremely popular because it works from a psychological perspective. When you prioritize your smallest debt, you get one of your debts eliminated as quickly as possible. That gives you the motivation that you can take care of the rest and be on your way to live a debt-free life.

Take Control Of Your Cash Flow.

Get educated about all aspects of personal finance to take control of your cash flow and reduce or eliminate your debt with a low income. You also have to make money when you can, while you can. If you have multiple sources of income, paying your debt with a low income during this period of the COVID-19 pandemic won’t be a problem.

We spend so many years in school learning how to make a living, but we should also invest our time learning the financial basics to save a fortune for our family and our future! If you don’t re-evaluate your spending habits and determine where your money is going, you will never be able to pay off your debt with a low income during this pandemic.

“If you have any feedback about how to get out of debt with low income that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

How to increase your income

How To Build A Solid Financial Foundation.

It’s ironic that we live in one of the wealthiest countries in the world, but we always have money problems because of the lack of a solid financial foundation. We can work hard all our lives but retire poor. We do so much to raise our kids just to see them finish college with a lot of debt. Debt becomes a way of life.

We all know that the COVID-19 pandemic has triggered an unprecedented wave of business closures, placing millions of Americans out of work. It has also exposed a deeper, more structural problem with the United States economy that has been looming just beneath the surface for some time. Many Americans are living hand-to-mouth and have almost no savings.

Why Should You Build A Solid Financial Foundation?

According to a recent survey from America Debt Statistics, almost half of the families in the United States live paycheck to paycheck. 19 percent of Americans have zero dollars set aside for an emergency. Two out of ten Americans use at least 50% of their income to pay back what they owe. 13% of Americans expected to be in debt for the rest of their lives.

The cost of raising a child in Americans around $250,000 from birth to age 18. Medical costs have increased by 33% in the past 30 years, while income has only grown by 30%. The average consumer debt is $38,000 excluding mortgages. The average American household mortgage is $189,586. Mortgage debt is the biggest debt in America – with $9.44 trillion owed collectively and 80% of Americans have consumer debt.

We don’t have much, and we don’t know much. Nobody teaches us how to manage our money in schools. Financial issues are not often discussed, and financial products are not always explained. Most people have trouble balancing their own checkbook and reading a financial statement. We use credit cards every day and don’t always understand all the hidden charges.

We buy insurance policies and stick them in a file cabinet. We contribute to our 401k or 403b and hope someone will take care of it. We all want to have a comfortable retirement, but few have a plan. We may be active spenders but passive savers. Building a solid financial foundation will help us reduce or eliminate some of the above-mentioned problems and live a life of financial freedom.

This post contains affiliate links. Please please read my Disclaimer for more information.

Four Pillars Of Building A Solid Financial Foundation.

Many Americans want to build a solid financial foundation or live a life of financial freedom, but few of them don’t know how to do it. Like building a house we must start to build it from the ground up. Here are the four pillars of building a solid financial foundation;

1. Protection – You should have the proper protection in the event of disability, health problems, or premature death. People must prepare in case they die too soon and also if they live too long.

2. Debt Management – You should reduce your liability and get out of debt.

3. Emergency Fund – You should set aside 3 to 6 months of your income to deal with sudden changes in your job or business or to pay for unforeseen accidents or repairs.

4. Investment – You should save and invest for the long run or your future.

A strong financial foundation will build a sturdier, more enduring financial house. Otherwise, it won’t remain standing when the storms, tornadoes, and earthquakes strike. Thus, the 4 financial foundation layers will build a solid ground for your financial future.                              

Understanding How Money Works.

Wealthy people tend to spend time learning and understanding how money works. They look for advice and solutions to get better returns for their money. A lot of poor people lack knowledge about personal finance. Some don’t care to understand. Many have no plan and little savings. What savings they have are usually put into accounts with a low rate of return. Their money doesn’t work for them.

Compounding interest works both ways. It can make you, and it can break you. If you owe money, the compound interest on your debt can ruin you. As a result, many people keep paying the bill with high interest. Despite numerous payments, the balance of the bill barely goes down because high interest on the balance continues to compound. Sometimes, it feels as if it’s impossible to pay the balance off.

The Power Of Compounding Interest And The Rule Of 72.

The Rule of 72 is a simplified way to estimate the doubling of an investment’s value, based on a logarithmic formula.

The Rule of 72 can be applied to investments, inflation, or anything that grows, such as GDP or population.

The formula is useful for understanding the effect of compound interest. Here’s how the rule of 72 works:

Assuming that you saving $10,000, At 1% rate of return, it takes 72 years for $10 to turn into $20,000.

At 4% rate of return, it takes 18 years for money to double. It’s a simple formula. Now, instead of your money doubling once over your lifetime, you could experience two or multiple doubles depending on your rate of return.

At 8% rate of return, it takes half the time, 9 years for money to double. What if your money doubled four or five times in your life? Let’s look at the rule of 72 this way. At 29 years old, if you had $10,000 earning a 4% rate of return, your money would double in 18 years. You would have $20,000 at age 47.

If you earned 8% rate of return, your money would double in only 9 years. At age 38 you would have $20,000. Let’s double it one more time in 9 more years you would have $40,000 at age 47 and one more 9 years $80,000 at age 56. Now you can see the power of the rule of 72 and compounding interest. The more rate of return you earn your money doubles faster.

If you earned 6% on a $10,000 investment, after 36 years, you’ll have $80,000. That’s three doubles in your working lifetime.

If you double your return from 6% to 12% you double every 6 years. Your money could double 7 times in your lifetime. At age 65 you will have $640,000.

The difference between $10,000 at 4% versus 12% is $600,000. $600,000 is equal to 20 years salary of someone who earns $30,000 annually. The Rule of 72 unveils the powerful impact of compounding interest on money. It also reveals 2 types of people. People who don’t understand how money works- end up working for money. And people who understand how money works-they let money work for them.

Be Your Own Money Manager And Control Your Future.

You won’t be free until you are financially free. You can be free from the burden of debt, just start with a simply written budget. Look at your bank accounts, add it all up and see where your money is going. Look at the reality of your situation, and don’t be afraid to make changes. Financial concepts and solutions may not be the most exciting subject, but with discipline and patience, you can learn and understand the fundamentals. And you can build a good financial foundation. Financial independence is not a dream. It is a priority. Take control of your future.

“If you have any feedback about how to build a solid financial foundation that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

Financial foundation

The Significance Of Having An Emergency Fund.

According to a brand new survey from Bankrate.com, just 37% of Americans have enough savings to pay for a $500 or $1,000 emergency. And a growing percentage of Americans have no emergency savings whatsoever!

An emergency fund is a financial safety net for future mishaps and unexpected expenses. We need an emergency fund to help us take care of unforeseen circumstances like a health emergency, disability, or job loss, and so on so that they can lead to a lack of revenue.

How Can You Build Your Emergency Fund?

Most financial advisors recommend that we need to save some money aside in a liquid account for the rainy days. And that you can start by saving three to six months of monthly payments for an emergency fund which you can easily access should you have an unforeseen circumstance.

I know you might be wondering how and where can I start saving my emergency fund! Here are a few ideas to help you start building your emergency fund on a daily, weekly, and monthly basis. It’s always a good idea to set a goal and then you can come up with the amount that you want to save regularly later.

1. Look For Easy Places To Cut Or Manage Your Expenses – Make sure you understand the concept of needs and wants and apply it to your spending habits. An emergency fund is one of the pillars of building a financial foundation for our families and our future. Our priority would be to spend more on needs and spend less on wants.

2. Set A Timetable For Your Emergency Fund Savings – The goal is to have at least three to six months of your monthly payments, but you can break it down by setting your saving target and then the amount every week or month. Expect that it will take a while to build a large emergency fund savings, but it starts with you being disciplined and consistent.

3. Open A Separate Account For Emergency Fund – It’s often said the first step is always the hardest. If you combined your emergency fund with your regular savings account, you will be tempted to spend it. It’s advisable to open a separate liquid account where you can easily withdraw money during an emergency situation.

4. Automate Your Emergency Fund Savings – In order to ensure that you really stick to your timetable and build your emergency fund, set up a direct deposit so that a set amount of money from your paycheck is sent directly into your emergency fund account by-weekly or every month. That way, you don’t have to remember to move it yourself each time.

5. You Can Save Your Tax Refund And Company Bonus – Many Americans use their company bonus every year to purchase a lot of liabilities instead of assets. Saving your tax refund is an easy way to boost your emergency fund. During tax season we have the option to have our refund deposited directly into your emergency account.

This post contains affiliate links. Please please read my Disclaimer for more information.

You Don’t Have To Borrow Money Or Use Your Credit Card For Emergency Fund.

Many Americans borrow money or use their credit cards for emergency funds. If you don’t have money in an emergency fund account when disaster strikes, you’ll need to come up with some funds to take care of emergency circumstances.

This could mean selling some of your assets at a loss during times of economic trouble or loss of a job. Not having an emergency fund can force you to accept high-interest rate loans for car repairs or house renovation. Putting a certain percentage of your pay in a liquid account consistently will help you avoid the above-mentioned situation.

 

How Much Should I Save For Emergency Fund?

There’s no perfect amount for you to save for emergency funds, but banks and financial advisors recommend that three to six months your monthly payments or monthly expenses are the best goal when you start and you can increase it when your income or cash flow increases.

Remember that every family’s financial situation is not the same, so the right amount will depend on your family’s financial circumstances. Let’s assume you lose your job, for instance, you could use the money to pay for necessities while looking for a new job, or your emergency funds could supplement your unemployment benefits.

Why Do I Need An Emergency Fund?

Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or take out high-interest loans for expensive home repairs.

It should be used during periods of unemployment, medical emergencies, paying for home repairs due to natural disasters, emergency veterinarian bills, and unforeseen vehicle repairs. Without cash on hand to cover unexpected bills, families often end up opting for costly strategies, such as running up credit card balances.

Unexpected Events Can Occur At Any Time.

With the total death toll from coronavirus in the United States now at over one hundred and ninety- two thousand at the time of my writing and with tens of millions of Americans unemployed, it’s no surprise that many people are facing shortfalls when it comes to purchasing food and necessities for their families during the coronavirus pandemic period.

It’s time to act now and take the advice of banks and financial advisors and start saving money for an emergency fund because every family needs to have it now. We don’t know for sure how long this pandemic is going last or when the next one might come, but if we are better informed and prepared, then we will not face the economic devastation that we are seeing today in our country.

“If you have any feedback about the significance of having an emergency fund that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

preparing for retirement

How Prepared Are You For Retirement? – We Will Find Out!

When getting ready for retirement, the best people wish to be sure they have the cash to shuttle and revel in life. However, while that’s essential, indulging your hobbies and pleasant your desires is never the most effective thing you should worry about doing together with your retirement backup egg.

In reality, some of your largest charges may additionally turn upright through the hardest years of retirement, and they may additionally no longer be non-compulsory.

What Are The Toughest Retirement Years?

For many individuals, they are the years wherein they commence to journey serious fitness issues. Unfortunately, a new analysis from Edward Jones revealed earlier Americans live an average of years in bad health.

This decade of your lifestyle is probably going to be not just bodily complex, but additionally financially difficult as well. It’s because should you launch to journey health concerns, your consumption of clinical capabilities often raises. You may also accept greater doctor visits, medical institution stays, and decree medication to pay for. And opposite to customary perception, these charges don’t seem to be totally lined by Medicare.

Basically, you should expect co-pays, deductibles, premiums, and out-of-pocket expenses, you may be taking a look at spending six figures on medical functions during the common retirement. It’s always good to plan early for retirement when we have the means.

What Are The Challenges That We Face As We Age?

As if that accomplishment is rarely horrifying adequate, these complicated years commonly make it unimaginable to continue to reside independently. As many as 70% of older Americans require some type of careful affliction, either in a nursing domestic atmosphere or from home healthcare aids, during the route of their retirement.

The prices linked to this can also be astronomical, topping hundreds of dollars a year in some instances. If you journey a typical year of poor fitness and need nursing home care for the majority of that point, the price tag might come close to thousands of dollars none of which is lined through Medicare, in most circumstances. Some people shop for retirement planning financial products while they were still young and actively working in order to have a comfortable stress free retirement.

This post contains affiliate links. Please please read my Disclaimer for more information.

Healthy Life Style Is Beneficial To Our Retirement Years.

Unluckily, if you happen to journey serious fitness issues, you frequently can not effectively select no longer to pay for the clinical care you want — discovering a means to cowl these costs is simple. And activity back to work is essentially certainly not a choice, each on account of your serious fitness considerations and because of the truth they are likely to come up after on your lifestyles afterward, you could have been out of the personnel for a long time.

Our health is the greatest wealth we will ever have. Without our health, our vitality, our best energy, every part of our lives has the opportunity to suffer. When we are young we spend so much time worrying about our careers and money, but we should also spend much time taking care of our health and plan for our retirement.

How Can We Prevent Some Of These Retirement Challenges?

Health is an investment and could be considered as an investment that might affect our retirement. When we are young, we can’t just rely on short-term healthy diets, the number on the scale, good night sleep, a one-week or a two-week vacation, or a day off from work to create a longer, healthier life.

Most Americans don’t think about healthy living while they are young but rather focused on their careers and money. If you are certainly one of them, you could find yourself in acute straits right through a decade of negative fitness as you be concerned about both your clinical considerations and your economic ones when you approach your retirement years. In case you don’t wish to agonize about cash at the same time that your fitness is failing, it would be essential to planning for these difficult retirement years.

In case you haven’t yet larboard the team of workers, which you can try this through because of the seeming charge of medical services back environment retirement reductions desires. If you are eligible to put money into a fitness rate reductions anecdote, accomplishing so can also support you construct a backup-egg appropriate for your approaching scientific needs towards your personal retirement health goals.

How To Adjust To Retirement Life Style.

When you are already retired and never yet in poor fitness, that you would be able to additionally seize steps now to make sure you are in a position if this destiny befalls you sooner or later. Make sure to keep a secure abandonment price so that you will have discount rates to assist you late in your lifestyle. Get standard medical care to try to stay as suit as which you could as long as possible, and explore your assurance alternate options carefully all over Medicare start acceptance to get the appropriate coverage.

Demography these accomplishments may also no longer seem to be enjoyable, and you can achieve that you just grow to be with beneath years when your fitness is poor, but for the reason that a decade of physical difficulties is normal, you superior be prepared for it.

When And How We Should Prepare For Retirement.

I think getting prepared for retirement also depends on when you start planning for it. When preparing for retirement, most people want to make sure they have the money to travel and enjoy life. While that’s important, indulging your hobbies and fulfilling your dreams isn’t the only thing you need to worry about doing with your retirement nest egg. I think thinking in advance and acting on those thoughts is key to being ready when the future becomes the present. The younger you are, the more distant your retirement and the greater your ability to compound your returns over time. The window of time is your greatest advantage. That being said, retirement shouldn’t be the worst period of our lives especially when you have a solid retirement plan.

“If you have any feedback about how prepared are you for retirement? – we will find out that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.

About Patrick

Hello there, welcome to my personal finance wellness website. Personal finance has been a passion of mine dating back to my time in China as an international student at Hebei University of Science and Technology and also when I worked as a sales manager for a Chinese pharmaceutical company after graduating from University.Patrick's Photo.

I immigrated to the United States ten years ago to start a new life in one of the greatest countries in the world and the land of opportunities. While in the United States, my fascination with entrepreneurship and finance continues to grow. I started reading books like, Think And Grow Rich, The Richest Man In Babylon, and Rich Dad Poor Dad.

After then, I became more interested in knowing more about money and personal finance and wanted to share the information with my friends, family, and my community to help many people who are working hard but are still struggling financially. I’m a Life and Health licensed Insurance Agent who has been working for World Financial Group and World System Builder for almost three years now. I presently help families and clients in MD, VA, KY, and CT.

My Childhood Story About Personal Finance.

I’m an American who was born in Cameroon to a family of six children, four boys, and two girls. I’m second to the last child. I came from a humble background where my parents were very successful farmers who grew cocoa beans and palm trees as a primary source of income. My parents were living in our little hometown or village in the southwest region of Cameroon.

As a young boy, I didn’t have the opportunity to grow up with my siblings and my biological parents. The reason being that my mother’s younger sister had just one child who happens to be a girl, so she pleaded with my mother to send one of her sons to live with her daughter so that she can have the feeling of having a younger brother. My mother loved her younger sister so much and wanted to please her and help with her dream of having a big happy family.

If you are familiar with African culture, you will realize that Africans like a big family, but my mother’s younger sister wasn’t happy because she had just one child. So parents decided that I was the child that will be given to my mother’s younger sister who was a high school teacher in a big city called Kumba. At three years old I started living with my mother’s younger sister who became my foster mother.

My new foster parents were teachers and God-loving people who were Christians. They came from a generation where their parents weren’t educated, so their parents wanted them to be more educated than them. They were told by their parents that, the only way to be successful in life is to go to school, work hard, and get good grades. When you do that and graduate with your degrees you will be able to have a good-paying job with the government or private companies. My sister and I were told the same thing and we had to do the same thing that my foster mom and her husband were told to do by their parents.

Considering the above mentioned, by now you should have noticed that we didn’t have a typical childhood where you might have your dreams or where your parents will ask you what do you want to be in the future. Questions like that weren’t part of our family discussions, but things like how are your scores in math, history, physics, and the list goes on.

I Was Very Passionate About Science And Technology.

During my primary school years my foster parents found out that I was a kind of hands-on guy and was interested in fixing toys, so they decided that I will go to a technical college for my secondary and high school education. So I went to Government Technical High School where I studied Electrical Technology for seven years. And after my high school graduation, I went to China as an international student where I did my BSc at Hebei University of Science and Technology. It was in China where I started thinking differently from my family values and beliefs.

That’s when I realized that my parents never talked about money, financial education, and entrepreneurship, and these things were not taught in schools either. My parents thought that money was evil and they didn’t like to know more or talk about it. We ended up with a lot of family members who were educated, but broke and couldn’t even make ends meet.

My old ways of thinking changed when I was living overseas as a foreign student. I started learning from the Chinese students how to save money and spend less and when I started working for a Chinese pharmaceutical company as a sales manager, I had the opportunity to travel to other Asia countries like Malaysia, Japan, and Singapore.

The more I travel, the more I got to know more about other cultures and also understood the disparity in every country between the middle class and the top five percent and how much these people know about money, personal finance, and entrepreneurship.

After living in the United States for over ten years, I’ve seen a lot of people struggling with money problems because they don’t understand how money works and lack personal financial literacy, I decided to make a difference in people’s lives. In 2018 I joined a campaign for financial literacy, since then I have been educating middle-class and low-income immigrant families on how to manage their finances. I used to do walk-in workshops in family homes and kitchen tables, but with COVID 19, we have to have our workshops on zoom every weekend.

Making A Difference In People’s Lives.

My story is like the story of many immigrant families all over North America who came from the Middle East, Europe, Asia, and Africa and had to start all over in a new environment and sometimes struggled to understand the language, financial concepts, basic finance, and financial products.

As someone who was born in Africa, lived in Asia for over seven years, and experience for the past tens years here I thought it was a good thing for me to create a platform where people can share information and answer questions about basic financial concepts, understanding of some financial products and also do personal finance workshop.

We spend so many years in school learning how to make a living, but we should also invest our time learning the financial basics to save a fortune. I used to live from paycheck to paycheck, but after I learned more about personal finance and basic financial concepts my financial situation has changed and I have helped a lot of families in my community move from financial insecurity to financial independence. I’m very passionate about what I do and I love it.

I love helping people and what I do allows me to meet a lot of people from different communities around this beautiful country. Hopefully, we cross paths in the real world someday and we can make it a better place together.

Be Part Of Personal Finance Wellness.

Wherever you are in your understanding of how money works and personal finance and money journey, I want you to know that you have what it takes to make your financial dreams a reality. And the journey to financial freedom will be the greatest adventure of your life. Please just take the first step and together through this platform we will change people’s lives.

If you ever need a hand or have any questions, feel free to leave them below and I will be more than happy to help you out.

All the best,

Patrick
Founder of Personal Finance Wellness.

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.