Category Archives: Money matters

Things to Know About Retirement Planning

Although most people will spend at least 20 years retired, many have not planned for retirement. For example, many of those with access to retirement plans through their jobs don’t even contribute. Planning for retirement should involve diverse retirement funding options.

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Goals

When you begin your retirement planning Wyckoff NJ, consider your retirement goals. For example, do you plan to travel, will you have outstanding debt and at what age do you plan to retire. Then, consider how long you have to work to fund these goals.

Saving Options

Your employer’s retirement plan, such as a 401(k) or IRA should be used to save for retirement because you receive tax deductions for contributing. Those who are self-employed can contribute to a solo 401(k). In addition, many employers match contributions up to a certain percentage, which gives you free money. If you contribute to an IRA as well, you may receive a tax credit of up to $1,000. Roth IRA contributions are made post-tax, but all your retirement withdrawals, including interest and dividends earned, are tax free.

Plan for Increased Costs

Inflation will have a significant impact on your retirement. Each year, your money is worth less and less, and even a low inflation rate of 3% may have a 25% reduction on your money’s value within 10 years. Your medical expenses may be higher because these costs increase every year, and you may be responsible for paying taxes on your withdrawals. 

Deadlines

After 50 years of age, you should become aware of the rules and deadlines associated with Medicare, Retirement account and Social Security. For example, you can make additional contributions to your 401(k) accounts without tax penalties at the age of 50, and if you stop working at 55, you may be able to draw from your 401(k) accounts without paying early withdrawal penalties and taxes.

You are responsible for your retirement income. Consider creating a detailed, diverse plan that will allow you to live your retired life well.

Where Money and the Law Meet

Businesses large and small often share one thing in common. Many companies use banking services as part of their operation. These services include handling payments from customers, accounts payable and investing or loan servicing. These relationships have been a cornerstone of the capitalist system throughout history.

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During business operations problems arise because of conflict with customers, suppliers or taxing authorities. Sometimes these conflicts take the form of litigation between parties and the legal system gets involved. At times, a financial expert witness is employed to help sort out the difficulties. These issues typically arise over three areas of business operations.

Customer Business Conflicts

Disagreements over what was promised at the time a transaction took place are common. Many of these are settled before involving the legal system. If the amount of money in question is quite large though, litigation may ensue.  Conversely, if a customer refuses to pay for goods or services for some reason the business may have to resort to legal means to recover their rightful payments.

Supplier Business Conflicts

Timely payments or quality issues make up these problems. Suppliers often ship goods to a business and invoice the business for payment within 30 days. Disruptions in business operations may interfere with a company’s ability to conduct transactions with customers and adequately profit to pay for the goods supplied in a timely manner. Alternatively, if a supplier delivers goods that do not meet quality standards specified by the business, payment conflicts may emerge.

Taxing Authority Business Conflicts

Payment of taxes to a government authority is part of the cost of doing business. Generally, conflicts that occur here are over the way a business calculates its taxable income. Complex tax legislation and accounting practices used by businesses often result in these kinds of problems. These are the kinds of issues most commonly requiring outside assistance from experts.

The business world is in some ways a reflection of the web of relationships in other human affairs. Conflicts arising over money are very much like the conflicts that occur in these relationships. Fortunately, a system of laws and tools for sorting out and solving these problems exists and is available for parties engaged in commerce

3 Simple Steps To Take Today Towards Financial Freedom

No matter your financial situation right now, financial freedom is possible. You don’t have to struggle or feel controlled by your money. Here are 3 simple steps you can take today to get in control of your finances.

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1. Set Goals

Writing down what you want and when you want to achieve it is an important step to making dreams a reality. Setting financial goals can help you feel more in control of your finances. They can help guide your financial plan and give you simple, actionable steps to take each day to move you closer to your goals. Once you know what your goals are, you may want to consider financial planning Souderton PA to help you reach them.

2. Automize Savings

Make saving money something you don’t have to think about. Set up a way to save money automatically every month. This can be by setting up an automatic transfer from your checking account to a savings or investment account. If you receive a paycheck via direct deposit, check to see if you can split the deposit into multiple accounts. That way every payday a portion of your paycheck goes directly into your savings account.

3. Transfer Debt

If you are working to pay down high-interest debt, such as credit card debt, see if a lower-interest option is available. It may seem counter-intuitive, but opening up a new credit card account can help save hundreds of dollars in interest. Many credit cards will offer 0% APR on balance transfers within a certain period of opening. Take advantage of the offer to transfer your debt to the new card. Then create a plan to pay off the remaining balance before the 0% APR offer expires.

Taking small steps consistently can have a significant impact on your finances and improve your feelings of control. Financial freedom is possible if you are willing to work towards it every day.