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The Number of Americans Working in Their 70s is Rising

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Working in their 70s

Most people dream of retiring someday, even if you love your job. Many of us daydream about what it will be like to live out your golden years without financial worry and surrounded by family and friends. However, many Americans are finding themselves working in their 70s (and not because they love their jobs).

Why Are People Working in Their 70s?

Over the past two decades, the percentage of individuals working in their 70s have increased from 10 percent to 15 percent. Because people are living longer, many of them are outliving their Social Security and retirement savings. This forces them to go back to work or continue to be in the workforce longer than previous generations.

The increase in the number of folks working during their golden years can also be attributed to the types of jobs available as well. There are not many labor-intensive jobs on the market right now, making senior citizens able to return to work than in recent history.

“Which matters more [the choice to keep working or the necessity to do so] depends on what your history up until that point has been in the type of work you’re doing,” said Katharine Abraham, an economics professor.

A Perk for Employers

Employers aren’t totally losing out on this situation. As it turns out, older employees are more likely to be happy in the workplace and more skilled overall. They also have stronger problem-solving skills than their younger counterparts.

Individuals working more physically demanding jobs may be looking forward to retirement. Many of those continuing to work those careers in their old age are doing so out of necessity. But, if you prepare for retirement well enough, you won’t have to.

How to Better Prepare for Retirement

Education and preparation are key to not joining the ranks of those working in their 70s. This 10-point list gives you a few things to consider to better prepare for your golden years.

  1. Build up emergency savings immediately. Having emergency savings will keep you from racking up debt as well as give you the ability to begin saving for retirement.
  2. Budget for your retirement. Think about how much money you’ll need to retire, where you’ll live, and what kinds of activities you’ll want to do. Then construct a budget for your golden years.
  3. Consider your health insurance options. Without work, health insurance can be expensive. Some pension plans will include health insurance, but not all will. Find out what your options are early on so you can budget for it.
  4. Educate yourself about how retirement income is taxed. Social security and IRA distributions are taxed. You need to learn about how much money you’ll be paying in taxes to construct a budget correctly.
  5. Draw up an income timeline for retirement. After figuring out your budget, draw up a timeline for your income. How much will you need each year? How long will it be until you retire? What if you outlive the funds you have set up?
  6. Use a retirement calculator to lay out possibilities (and a Social Security calculator). Check out an online retirement calculator and determine different possibilities. You can also figure out what your social security income may be with one of the IRS calculators.
  7. Make an investment plan and read up on the best retirement investments. Maybe even hire someone to help you with these investments. Determine your risk tolerance and figure out what investments will help you later in life.
  8. Consider hiring a retirement planner. Be sure to interview a few. Retirement planners can be great in helping you get set up and manage your money during retirement. Just be sure you get the right planner for your needs.
  9. Learn how to earn more from your 401(K). If you can roll your 401(K) over into an IRA and you’re nearing 60, it may be in your best interest to transfer the funds.
  10. Analyze the different pension distribution options available to you. Any decisions you make with your pensions cannot be changed. Be sure you know all of your options before you choose.

These 10 things can help set you up for a retirement where you actually get to retire. With more and more Americans working well into their 70s, it is important to be proactive in your financial planning for your later years.

Readers, what do you think about the increase of Americans working in their 70s?

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8 Tips for Starting Your First Small Business

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If you’re interested in maximizing your wealth, leaving a legacy for your children, or just seizing more control over how you work on a regular basis, starting a small business may be your best career opportunity. Startups and small businesses are the lifeblood of a strong economy, and are incredible financial opportunities for the entrepreneurs starting them.

However, starting a small business can also be challenging. Roughly half of small businesses fail within the first five years of their founding, and even if you succeed, the life of an entrepreneur is often a stressful and time-consuming one. Fortunately, there are some tips that can help you be successful with your first—and potentially only—business.

Important Tips for First-Time Small Business Owners

Follow these important tips to get your business started with the highest probability of success:

  1. Be ready to fail. Remember, the rate of business failure is high, and even if your business survives for many years, you’ll inevitably fail with one or more smaller components of managing your business. What’s important isn’t whether or not you fail (because you almost certainly will), but how you respond to that failure. Will you learn from it and move on, or admit defeat and dwell in the past?
  2. Choose the right business structure. Many new business owners want to start a sole proprietorship or a partnership because those business structures seem easier. However, it’s typically recommended that you incorporate your business or create an LLC. These business structures serve as separate legal entities, providing you (and any other founding members of your business) with liability protection.
  3. Spend time on your business plan. Your business plan is one of the most valuable documents to your business, and many entrepreneurs either rush through it or neglect it entirely because they see it as superficial and unnecessary. Business plans aren’t just blueprints for how to develop the business; they’re also your opportunity to learn more about your business environment, including your competition and target demographics. The research you do here will follow your business for years.
  4. Expect your idea to evolve. Few entrepreneurs end up with the business they pictured in their mind when they first came up with the idea. Instead, the best businesses are the result of a natural evolution. As you learn more about how to run a business and as the landscape around you changes, your business should change accordingly.
  5. Don’t hire employees right away (unless you have to). Employees are a major expense for your business, and can be a major contributing factor to your success. Take your time when it comes to hiring them; hiring too quickly could leave you with an unqualified candidate or could exhaust your business’s budget prematurely.
  6. Grow at a deliberate pace. Similarly, be careful how you grow your business. If you grow too slowly, you won’t generate enough revenue to sustain your profitability or get you closer to your long-term business goals. But growing too quickly can also be a problem; if you invest too much, too fast into new buildings, new employees, and new products, you run the risk of wasting that money. Instead, strive to grow at a deliberate, steady pace.
  7. Choose cost-effective marketing and advertising strategies. Marketing and advertising can be expensive, but it’s also necessary. These strategies are your best bet for generating more business exposure, and without them, you’ll struggle to get new clients and customers. However, you shouldn’t spend money recklessly; instead, seek the most cost-efficient marketing and advertising strategies you can find. Inbound marketing strategies tend to be effective here, such as content marketing and search engine optimization (SEO).
  8. Work with a mentor. Finally, try to speak with a mentor (or several) if you can, on a regular basis. Mentors are there to guide you, answer your questions, and provide you with insights they wish they’d had when they were first starting out as entrepreneurs. That doesn’t mean you need to do everything they say, but their perspectives can be enormously valuable.

Knowing Your Long-Term Goals

Here’s one bonus tip for you: know your long-term goals. What are you ultimately hoping to get out of this business? How are you going to handle things at the end of your life, or at the end of the business’s life? There are many possible exit strategies to consider, including selling the business to a larger company, retaining your ownership stake but stepping down, passing the company to your children, or appointing someone from within as the new CEO. Determining your bottom-line goals early on can help you build and develop the business in a way that makes this outcome more likely—and more valuable to whoever’s around at the end. You may want to invest in business skills training for you and your employees. When you have a company full of well trained, highly productive, and confident people, it will provide more benefits than just learning skills. Besides, it will help your small business boost the productivity and growth.

Unemployment Rate Drops to Lowest Level in Decades

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Unemployment rate

The United States job market continued to excel in April, adding 263,000 new hires. On top of the huge increase in jobs, the unemployment rate fell to its lowest point since 1969. It is now sitting at just 3.6 percent. That is the lowest level of unemployment the U.S. has seen in a generation.

The Unemployment Rate Has Plummeted Under Trump

The last time unemployment was this low was in December 1969 (at the time, it was 3.5 percent). If this job growth continues, it will be the longest economic expansion in U.S. history. Not to mention, job growth beat all of the Wall Street expectation. It was expected that payroll growth would be around 190,000 and the unemployment rate would be sitting at 3.8 percent at the end of April. Job growth was much larger at 263,000 new hires and only 3.6 percent of Americans are jobless.

Average earnings growth has held pretty steady over the past year, however, at 3.2 percent. The average salary in America sits at $27.77 and the average workweek hovers around 34.4 hours.

While the total unemployment rate is down, a broader gauge of the unemployed (including underemployed and people who have quit looking for work) still sits at 7.3%. That hasn’t changed since February, but it doesn’t have economists worried.

“Leaving aside month-to-month fluctuations, the labor market is still very strong, adding almost double the number of workers needed to keep pace with new entrants to the labor force in any given month,” said Eric Winograd, AllianceBernstein’s senior economist. “Wages may have been slightly tepid this month relative to expectations but are still growing at just about the highest rate this cycle, and the unemployment rate is at multi-generational lows.”

Where Are The Jobs?

Business and professional services saw an increase of 76,000 jobs in April, leading job growth during the month. Construction added another 33,000 jobs during the month (256,000 throughout the past year). As always, the health care field is booming. It added 27,000 jobs in April (404,000 in the past year).

Jobs pertaining to finance rose by 12,000 (mostly real estate, rentals, and leasing). Both manufacturing and social assistance saw increases of 4,000 and 26,000, respectively.

Unsurprisingly, the retail job market saw a loss of 12,000 jobs in April, as many retailers are struggling to keep up with Amazon.

All in all, job growth has been consistent under President Trump. Month-to-month gains have averaged at 205,000 jobs per month.

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Employee Wellness Programs Are Largely Ineffective, Says Study

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Employee workplace programs

Companies have implemented employee wellness programs for years to encourage workers to improve their health. A new study has found that employers may want to take a second look at what they are offering because, by in large, the programs have been ineffective.

How Effective Are Employee Wellness Programs?

The study was published in the Tuesday edition of JAMA. It took a look at 33,000 workers employed by BJ’s Wholesale, a wholesale retailer, which offers a wellness program for its employees.

What researchers found was that, although employees learned more about exercise and watched their weight, there were no significant health benefits seen. Blood pressure, blood sugar, and other health measures remained about the same across the board. There was also no real change in health care costs, which is the main goal of employee wellness programs.

“These findings may temper expectations about the financial return on investment that wellness programs can deliver in the short term,” the study concluded.

Are Wellness Programs a Waste?

Currently, more than 82 percent of companies that have 200 employees or more, offer some sort of wellness program or health program. These may include “Stop Smoking” programs or weight management programs as well.

Typically, these programs are offered with some sort of financial perk as well. For instance, some companies will offer a gift card for jumping on the wagon to lose weight. Others might discount your health insurance.

Executives are establishing these wellness programs to cut down on the overall cost in health care. However, if they are looking for a way to save these employee wellness programs aren’t the way to go. “Wellness is this multibillion-dollar industry where there has been a really weak evidence base of what these programs do,” Dr. Katherine Baicker, one of the study’s authors, said.

However, that isn’t to say they aren’t doing any good. Employee wellness programs do seem to encourage workers to make positive changes where their health is concerned. Down the road, employers may see overall lower medical expenses. Dr. Zirui Song, another author of the study, notes that wellness programs are still a fairly new concept.

Successful Wellness Programs

Workplace wellness programs will differ from company to company. Some employers have been able to establish better, more effective programs than others. Depending on what employers are looking to accomplish, they can be extremely successful.

If the employer is solely looking for savings on health care spending, it is not clear that wellness programs will be beneficial. On the other hand, if they are looking to encourage their employees to be happier and healthier, these wellness programs can be great.

Readers, does your workplace offer a wellness program? Do you take part in it? 

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January Jobs Report Shows Growth Despite The Shutdown

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January jobs report

The January jobs report was released on Friday and, despite the government shutdown, there was growth in the job market once again. This marks 100 months of consecutive growth. President Trump took to Twitter to celebrate the latest Trumponomics triumph.

The Job Market Post-Government Shutdown

Although there were another 304,000 jobs added to the market in January the employment rate went up slightly. There is no doubt this is due to the fact that many government workers were forced to file for unemployment or assistance during this time.

That being said, many people were pleasantly surprised by the post-shutdown jobs report. It showed the economy added 304,000 jobs during the first month of the year. The number 304,000 does not reflect any jobs impacted by the shutdown because the Labor Department knew those individuals would be paid eventually and, therefore, were reported as gainfully employed.

What Did The January Jobs Report Say?

The unemployment rate was up due to government workers not able to collect a paycheck. However, it only increased by 0.01 percent from December. There is speculation that the unemployment rate should have actually been higher (4.1 percent).

Another note to take away from the January jobs report is the number of people taking on part-time jobs increased. This was likely due to people being out of work during the shutdown. The Labor Department reported that 490,000 more people were working part-time in January but were searching for full-time work. So, there is still plenty left to be desired where the United States job market is concerned.

Despite the continued growth in the job market, the government shutdown did have a real impact on 800,000 workers in the U.S. Some people were unable to pay bills or put food on their table. Not to mention, the unemployment rate is on the rise again (largely due to the shutdown). And, if no agreement is made soon, it will happen again.

Readers, what do you think about the possibility of another shutdown? What do you think the long-term impact may be?

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The Easiest Freelance Jobs Anyone Can Start Doing Today

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easiest freelance jobs

The current global economic turmoil, coupled with an ever-increasing strain on a limited job market, has compelled individuals to look for unconventional sources of making money. The freelance industry, which was mainly occupied by artists and designers until the turn of the century, now includes people from all kinds of educational backgrounds. The amazing outreach of social media has also allowed the younger generation to transform these platforms into money-making avenues. Whether you are a college student looking for some part-time job opportunities or a retiree in search of easy lines of work, there’s something for everyone in the freelance market.

Are freelance jobs stable?

One of the most commonly asked questions about freelance jobs is whether or not the flow of income will be secure all the time. While a certain avenue of freelance work may stop yielding results after some time, the same can be said of any corporate. However, the beauty of the freelance market is that there is no rigidity in designation and the type of work you are to do. You can easily switch from one kind of work to a more favorable one. The enormity of the market can best be expressed by the fact that 34% of the labor market is predicted to switch to freelance by 2020.

Here are a few such freelance opportunities that you can tap into:

Online tutorials: an assured way to earn

This is the era of self-taught MUAs and home-cooks turned Gordon Ramsey. Skill sets that were previously limited to a handful of people can now be passed on to anybody willing to learn. Online tutorials are an excellent way to make money as well as come into the limelight. You can either set up a channel or website that offers paid subscriptions, or start with free-for-all videos and then once you have generated enough public interest, make its viewership limited. You will, however, need to be a well-known name in that line of work or wait for your big break.

Become a YouTuber

It isn’t that hard to become a celebrity in 2018. Yet again, thanks to the advent of social media platforms like YouTube, anything that catches the public eye, no matter how outlandish it might seem, can catapult you into overnight stardom. You will need to begin by setting up a channel on YouTube and find your own niche category of videos that might attract your target audience. The trick is to focus on the subscriber count, which can only be enhanced the right way by being regular with your uploads and by producing quality content time and again.

Pet care is a growing market

To pet-owners, their little furry babies are no less than actual human babies. This means that they are willing to splurge to ensure that their pets are being taken care of and pampered in their absence. Pet babysitters are becoming quite sought-after and due to their shortage, they are being offered some hefty amounts. The pet-care professional will need to be comfortable and adept at taking care of all kinds of animal. More importantly, they should know how to resolve a crisis as quickly and as safely as possible. Usually, college students are the ones who volunteer for the role.

Freelance reporting can provide valuable experience

Reports of big media outlets being compromised to push a certain political agenda have led ethical journalists to form their own collectives and news agencies. These outlets are constantly on the lookout for freelance reporters, who are willing to work out of a contract. If you have a good command over the language or are qualified to be a photographer or videographer, this is the best avenue for you to freelance in. The money offered might not be too impressive at first, but they serve as excellent substitutes for conventional internships or work experience.

Become the campus ambassador for a brand

Brands that have products meant for the young adult demographic often look for students to become their ambassador or representative in their respective campus. These students are meant to promote the brand and its products amongst their peers and keep a lookout for opportunities where the brand can sponsor or set up events in the campus. In case such an event is set up, it is the duty of the campus representative to manage and coordinate the event with the help of company personnel and resources. The workload for the role is not too taxing, and the income is adequate.

Participate in paid surveys

Survey websites are constantly looking for new participants with fresh perspectives to take their surveys. Whether you are hired as a participant or a trained surveyor, depends on your qualifications and experience. The surveys span a diverse range of topics, and you will only be offered those that fall within your areas of knowledge. The more surveys you take, the easier does the website feed picks up on your topics of interest and, thus, curates the results to match those. Frequent participation also helps unlock surveys that are reserved for regulars and these are the ones with the best pay. There are many online sites as well where you can sign up and start earning from day one.

Write and sell books on Amazon

Have an idea for a guaranteed bestseller that you would like to make a profit off? You no longer need to cater to the whims and fancies of publishers, because Amazon allows you to sell books. Of course, the organization will get a commissioned percentage from the profits of every copy of the book you sell but the rest is yours. This allows aspiring writers to break free from the dependency on publishers and sell their books independently. All you need to do is strategically market and advertise the book so that you can sell the maximum number of copies.

Becoming a recruiter is easy and pays well

A recruiter or a headhunter is the person who shortlists candidates and prospective employees for a client, based on their connections and experience in the industry. Despite virtual job-listing platforms having grown abundantly in the past decade, employers still prefer to hire their employees after a certain level of assurance, because the online pool is too large to weed out unsuitable fits. This is the perfect freelancing avenue for retirees because of their years of experience working in a specific field that gives them an eye for individuals who have the potential to be good employees.

Data entry jobs are usually work-from-home

MNCs and corporate usually have a lot of paperwork to take care of on a daily basis. Since this work doesn’t exactly fit into their job description, it is mostly delegated to interns or work-from-home freelancers. The pay is moderate and the job is pretty self-descriptive and very easy. Moreover, there are no daily targets or performance bonuses to factor in, unlike marketing jobs, so you can do the job at your own pace. The work for data entry job basically involves archiving daily figures and official data, and in some cases, digitizing them and keeping them updated.

Even consultants can freelance

Engineers, CAs, lawyers- these are all people who are indispensable to the working of any corporation, which is why they are usually always in such high demand. If you are qualified and have the relevant experience to become a consultant, you can always do so as a side gig, besides your regular job. Most employee contracts usually do not prohibit them from working a second job, so it should not be a legal problem. Even retirees can opt for such a job. The pay is extremely high and the workload depends on the project for which you are being consulted.

Concluding Remarks

All forecasts for the future of the freelance industry are favorable, due to an aversion amongst millennials to work 9-5 jobs and technological backing of freelance-based opportunities. No matter your area of expertise, an investment in this domain will definitely be fruitful.