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Bill Neugent, an engineer in McLean, Va., is doing his bit to ease the looming generational financial squeeze as the nation’s 75 million baby boomers begin to retire. He’s working longer.

Mr. Neugent, 62, plans to work full time until he is 65 and then part time for the Mitre Corporation, a federal research contractor that encourages older workers to stay on.

There are, it seems, too few such workers and employers. The average retirement age for men now is 63 and for women 62. But the emphatic conclusion of recent research into retirement policy and labor markets is that working another two or three years would have a surprisingly powerful impact on the retirement living standards of millions of boomers and on the economy.

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Tags: retirement+planning

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Q: I’m a retired widow who will be returning to work full time this summer.

My problem is I don’t have transportation. I want to finance a new car by obtaining a home equity loan. My home is free and clear and valued at $95,000. I don’t like making debt, but it seems to me that now is a good time to do so.

Do you have any information on the best lenders for this type of loan?

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Retirement is the No. 1 goal of investors. Yet, looking at the numbers, it’s clear that many investors are undermining their good intentions with unfortunate actions. Here are nine mistakes to avoid if you want your retirement dreams to become a reality.

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For most homeowners, your mortgage payment is by far your biggest monthly expense. So we think it’s completely justifiable to spend 60 seconds reviewing it. In fact, don’t be surprised if this brief exercise does wonders for your budget. Let’s take a look under the hood and see whether we can find you some savings.

0:60 Find out whether you’re overpaying your mortgage lender
If the amount you borrowed was more than 80% of the appraised value of your home, you’re probably paying PMI, or private mortgage insurance. PMI payments are not trivial. Depending on the size of your down payment and how much your house costs, PMI can effectively increase your interest rate by as much as 1% — potentially adding hundreds of dollars to your monthly payment.

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Many people dream of renovating and upgrading their homes. They are held back because of rising costs of amenities and high interest rates of the mortgage loans. Homeowners can certainly take advantage of their home with a HELOC or home equity line of credit.

Many borrowers have queries regarding a HELOC. The most common question is on the meaning of HELOC, and what sets it apart from a home equity loan. Customers need to be informed that HELOC is the acronym of a Home Equity Line of Credit. It offers a mortgage loan with the option of taking it wholly or a part thereof. This is not the case in a home equity loan.

Customers are also interested in knowing the advantages of HELOC over other loans. The interest rate is normally lower than the interest rate paid on credit cards and other kinds of non-secured debts. The interest rates on credit cards and personal loans are generally non-tax deductible, but the interest paid on HELOC is tax deductible.

Read more at Home Equity Line Of Credit FAQs

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From time to time everyone has had the experience of having a ton of bills and little to no money to pay for them. This is why cash advance loans companies are popping up everywhere and their commercials dominate the air waves. The question remains, are these companies really loan sharks in disguise? Are they victimizing people? These Quick Cash places are legitimate business is there any profit to be made by the business investor.

A cash advance or payday loan business secures the loan with a personal check. Many of these companies also required a great deal of personal information including bank account number, credit card information, social security number, as well as a post dated check. The company requires it’s customers to write a check for the amount of the loan plus their fees. The customers agrees that check can be cashed within 10 to 14 days. Which is your standard payroll time.

Read more at The Legitimacy of Cash Advance Loans

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Often times crisis happen in life, therefore, causing financial hardship for the family such as divorce, loss of income from company downsizing, illness in the family or death. These unfortunate circumstance can upset your financial capability to pay your mortgage, car payment, credit card debt and other financial obligations. Bad credit can happen to anyone.

Filing for bankruptcy can remain on your credit report 10 years. After you file for bankruptcy, it is always best to try and re-establish credit. Once you have re-established your credit, always pay on time. You’re trying to gain the confidence of banks, lenders, credit card companies and financial institutions your willingness to pay on time. Your credit worthiness will be judged by your credit rating.

Read more at Credit Card And Loan Application Approval Resources To Raise Your FICO Score

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Bankruptcy is a choice many consider when faced with unmanageable multiple debts. But finance experts agree that declaring oneself bankrupt should be an indebted individual’s last resort to meet his dues. It may free a person’s mind from the pressure of paying his debts but it can also seriously damage the person’s morale and credit history for a long time. Aside from this, people who declared themselves bankrupt are often met with hostility by the people around them. But as an option to reduce financial burden, bankruptcy is still worth considering.

By filing for and declaring oneself bankrupt, a debtor’s relationship with his creditors is adjusted. Many of his debts are forgiven and he is also allowed to keep some properties labeled as exempt items. However, all of his valuable properties are sold off and the proceeds are distributed among his creditors. As a result, some of his debts can be paid in full or just partly. If most of his valuable properties (i.e. house, car) are named as collateral for any debt such as mortgage or a car loan, the proceeds from the selling of these items are used to pay these specific debts. Only the balance or excess is used to pay off the other debts. In a sense, bankruptcy fulfills two ojectives: it frees the debtor from paying his debts and ensures that all assets are distributed among the his creditors.

Read more at Unwrapping Bankruptcy

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When you receive a credit card, you will want to carefully follow an outlined budget for your entire household. Yes, this is easier said than done, however, if you fail to follow a strict budget and do not carefully plan the expenses of your credit card then you could fall into the same trap that many all over the world have fallen into, and become in serious financial debt. If you use a credit card as it was intended for use, for emergencies or traveling, then you may find it much easier to maintain financial stability. However, if you choose to use a credit card as a personal ATM or for every purchase large or small, you could find yourself in deep trouble. Here are some tips you can use to budget and protect yourself against falling in the large hole of credit card debt.

No matter if a person has a credit card or not, it is a wise suggestion to never spend more than they can afford. The best advice anyone can offer is to use your credit card as if it were cash. This is because no matter how much you charge, you will still have to pay it back with additional fees. Many people have begun to use their credit cards for shopping at the grocery store, in addition to using them to buy things they really could not afford to with cash. This is where many begin the downfall into financial debt, even with all the excellent deals and promotions that appeal to you, with the interest rates the credit card charges you will not be getting those deals and likely end up paying more.

Read more at Credit Card Budgeting

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Managing taxes in retirement can be complex. Thoughtful planning may help reduce the tax burden for you and your heirs.

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Tags: retiree+tax+strategies

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