"Just about the time you think you can make both ends meet, somebody moves the ends." - Pansy Penner

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Retirement

Your Way to Living Like a Retiree Now

By Leave a Comment

living like a retiree

Many people dream of retiring early. It’s a great dream. However, whether or not you’re on that path, retirement might feel like it’s a far way away. Why wait until then to start living like a retiree? You can enjoy many of the pleasures of retirement life right now. Here’s how.

What Does “Living Like a Retiree” Mean To You?

Before you can start living like a retiree, you need to figure out what that looks like for you. After all, retirement is different for everyone. Maybe you want to live frugally and simply, grow your own food, and read books each afternoon. Or perhaps you want to travel around the world. If you don’t have a vision for what living like a retiree looks like then how can you start implementing that into your life? So, ask yourself: if I could retire right now, what are the things I would most want to do?

Enjoy Some Retirement Activities On Your Vacations

If you’re still in the stage of life where you’re hard at work each day, then perhaps vacations are the only chance you have to start living like a retiree. That’s okay; make the most of them. Use the information you gleaned from the exercise above to start adding those things into your vacation life. For example, if retirement life for you means leisurely hours at home, then skip the big family vacations in favor of staycations now and then.

Incorporate Living Like a Retiree Into Daily Life

You might be surprised to find that there are a lot of things you expect to do in retirement that you actually do have time for now. For example, if gardening and reading are appealing to you, then prioritize those things in your regular life. Don’t wait until later. Maybe you can’t travel around the world right now, but you could spend weekends taking day trips to local museums and historical sites. Or you could take a cooking class from a culture that you love. Brainstorm all of the little ways that your ideal retirement life could show up in your daily life right now.

Take Control of Your Time

Although everyone’s ideas of retirement may differ, there’s one goal that a lot of people have in common: freedom of time. You don’t want to wake up to an alarm anymore. You’re eager to be able to do what you want when you want to. If this is the big dream for you, then it’s worth it to start figuring out how to incorporate more freedom-of-time into your life. Examples of this include:

  • Quitting your “day job” to start your own business; you will be VERY busy but you’ll get to set your own schedule
  • Working with your boss on creating a more flexible schedule, particularly in regards to how often you need to be inside the office
  • Reducing your hours to part-time and living more frugally so that you can enjoy more time of your own

Get creative with finding ways to take control of your time so that you can feel, at least some of the time, like you’re already living like a retiree.

Take Up a Hobby

One of the main differences between living like a retiree and living before retirement is that you tend to think about achieving something specific with all of you pre-retirement activities. For example, you don’t just have a hobby. Instead, you have a side hustle. There are great things about aiming to be extra-successful with everything that you do, especially when you are young and working your way towards a retirement goal. However, you can incorporate the feeling of living like a retiree right now by choosing one or two activities that you do solely for the joy of them. Pick a sport, craft, or area of interest to delve into with no other aim than just purely enjoying it in the moment.

Practice Mindfulness

Speaking of being in the moment, it’s worth it to incorporate mindfulness practice into your life. Obviously, not all retirees meditate. However, the gist is that when you’re older, you do have a different sense of what’s important in life. You know that you’re not granted the future. Therefore, you are more likely to appreciate what is happening right in the moment. That’s a key to a rich life at any age. Learning mindfulness habits now can give you attention to some of the sweetest aspects of life, whether or not you’re close to actual retirement.

Additional Tips for Living Like a Retiree Now

Here are some other ways to start living like a retiree now:

  • Take a sabbatical. Use the time off to live as though you have retired.
  • Volunteer doing something meaningful. Giving back is often a key feature of a good retirement.
  • Connect with people, including people from the past you need to make amends with. Tying up those loose ends makes life better.
  • And while you’re at it, make some new friends. Many people find new social groups in retirement. Meeting a new group now can enliven your life in a fresh way.
  • Always emphasize time over money. If you can afford to take the time to do something, it’s often worth more than the money you might have earned in that same span of time.
  • Do something that is on your bucket list. Stop waiting for retirement to live out your dreams. Live them today.

Finally, work on what your identity is when it’s not attached to your job. So many people identify who they are as the same thing as what they do for a living. Once you retire, that won’t be the case. If you can get a sense sooner than that about who you are outside of your job, you’ll get the true authentic joy of living like a retiree now.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

How to Retire Well in North Carolina

By Leave a Comment

how to retire well in North Carolina

Getting close to retirement is an exciting time. But you also need to handle some planning if you want to make sure your golden years are comfortable. Often, what it takes to achieve your perfect lifestyle can vary, particularly depending on where you live. If you think that North Carolina is the ideal destination for you, here’s what you need to know to make sure you can retire well in North Carolina.

Join SaverLife.org Today!

Cost of Living

When you are exploring states for retirement, taking a moment to check out the state’s cost of living scores is a great place to start. It lets you estimate how affordable an area is, both in comparison to the national average and to other states.

Assessing the cost of living scores is pretty simple. The national average is always 100. Scores above 100 mean that a state or area costs more than average, while scores under 100 show that a region is cheaper. When comparing two states, the one with higher scores is more expensive.

North Carolina has an overall cost of living score of 96.1. Since that is close to the national average, it’s considered a moderate score.

When it comes to individual categories, the Tar Heel State is mainly near average. Groceries, utilities, and transportation are at 98.0, 99.4, and 94.9, respectively.

One spot where North Carolina is more expensive is healthcare. In that category, the Tar Heel State has a score of 111.8, a sign that health-related costs are markedly above average in the area.

However, a category where North Carolina shine is housing. The housing score is just 87.1, a sign of overall affordability. This is supported by the state’s average home value of $231,166, which is a full $41,280 below the national average of $272,446.

Tax Considerations

Another important aspect of living in a particular state that you want to look at is taxes. How much you’ll owe in taxes impacts your budget, as well as how long your retirement savings will ultimately last. As a result, you want to understand a state’s rates well before you move.

When it comes to income taxes, North Carolina doesn’t use a bracketed system like the federal government. Instead, it has a flat rate of 5.25 percent.

While the Tar Heel State does exempt Social Security from taxes, all other retirement income is potentially taxable. That includes money from 401(k)s, IRAs, and most other federally taxable retirement accounts.

For sales tax, the base rate is 4.75 percent. However, cities, counties, and local municipalities can add to that, bringing the rate up to 6 to 7 percent in most areas, though potentially higher in a few locations.

Property taxes in North Carolina tend to be on the lower side. Additionally, there are a few programs that can reduce the burden for certain households. For example, there is a homestead exemption for elderly, disabled homeowners that may benefit some retirees.

Part-Time Job Opportunities

Many retirees don’t plan to altogether leave the workforce. Instead, they simply transition, snagging a part-time job to help support their golden years, boost their retirement savings, or keep them active.

Often, a state’s unemployment rates can give you some insights into the availability of part-time jobs. When rates are low, opportunities tend to be accessible. When rates are higher, finding a position can be challenging.

Pre-pandemic, North Carolina’s unemployment rate was close to the national average. For example, in February 2020, it was 3.6 percent, which was just a hair above the national average of 3.5 percent.

During the rise of the pandemic, the Tar Heel State hit 13.5 percent (April 2020), which was slightly below the national average of 14.8 percent. North Carolina also recovered faster than some other areas, getting back down to 5.7 percent by February 2021, a moment when the national average was 6.2 percent.

While COVID-19 does make the situation a bit more complex, North Carolina is making positive progress quickly. As a result, part-time jobs are generally available, which is a boon for retirees.

Best Cities for Retirees in North Carolina

The city you pick plays a big role in your retirement, as it impacts your access to amenities, recreation, and more. If you aren’t sure what cities may be right for you, certain options are worth considering.

Asheville could be an excellent choice for anyone who wants an outdoorsy lifestyle. It’s near the Great Smoky Mountains National Park and is near the base of the Blue Ridge Mountains. Plus, it’s got a great foodie culture and a rising art scene, making it ideal for anyone who wants an enriching experience.

If you prefer a larger city, Charlotte might be your ideal destination. The area is growing quickly but is still reasonably affordable. You can access plenty of amenities and entertainment options without having to break the bank. Plus, there are several professional sports teams, which could make it an even better choice for fans.

For retirees looking for a small town, try Brevard. It’s got a quaint, quiet feel, is highly walkable, and it close to Pisgah National Forest. The city actually mentions promoting “a high quality of life” in their mission, and that driving force shows in everything the area does to support its residence.

How Much Money You Need to Retire Well in North Carolina

Since the Tar Heel State has a moderate cost of living, you can retire well in North Carolina with a middle-of-the-road budget. Generally, if you have access to around $60,537 a year, you should be in pretty good shape. With that, covering your needs shouldn’t be an issue, and you should be able to shoulder some wants, too. That way, you can have a rewarding retirement, ensuring your golden years are just what you envisioned.

Can you think of any other tips or insights that can help someone retire well in North Carolina? Share your thoughts in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Thinking About Retirement Early? Here Are 3 Ways to Save

By Leave a Comment

Social Security used to provide people with a sense of security about retirement, but the growing cost of living and age requirements for pension are concerning younger Americans. One to two generations prior, it was much easier to buy a home and pay it off before you were in old age. Those in their 20s and 30s had a certain security about their future that isn’t as common among today’s working population. That’s why thinking ahead about retirement is such a good idea no matter how old you are. The younger you start, the better off you’ll be.

These three methods of saving for retirement are meant to be conventional rather than traditional. You already likely know about individual retirement accounts (IRAs) and 401ks. So, to help you expand your opportunity to finance your senior years, these are three methods that have even more benefits you can use now.

Start Clipping Coupons

You can save hundreds of dollars a year if you start taking advantage of savings. Look if your favorite stores have apps, which tend to offer exclusive discounts just for using them. Sign up for any rewards clubs, and use browser extensions like Honey to compare prices online before buying. Whatever you save each year, add it up and put it in an account toward retirement. Directly depositing it into your savings and matching whatever you can out of your personal finances is a good annual habit.

Sell Your Life Insurance Policy

You can get a free online estimate to see how much your policy is worth. Reducing costs to free up savings can also result in a generous lump sum payment if you sell your coverage. There are resources that can help you decide whether this is the right choice for you. Life insurance is a versatile tool that many people use to fuel their retirement savings. Many policies also generate a cash value that can become extremely profitable after 20 or 30 years of consistent payments. Selling a life insurance policy can be one of the fastest ways to generate a large sum of money to put toward retirement. In many cases, you have to be near or past retirement age to sell a policy, but you can borrow from a cash value much younger than that.

Use Cash Gifts to Build Savings

Birthday money, Christmas bonuses and any other financial gifts can become investments in your future. It’s okay to split some in half and treat yourself, but think about impulsive buys vs. long-term benefits. In most cases, you’ll get much more out of building a reliable savings account than you will from a spontaneous buy. To stay additionally motivated, you can plan ahead and think about things you’d like to do during your retirement. Envisioning that cross-country European trek can make it easier to put that bonus into savings. A budgeting app can also help you stay on track with your savings. It’s important to strike a balance between spending money and savings to avoid losing motivation; a budgeting app helps you set goals, track progress and stay on track.

Love Desert Life? Here’s How to Retire Well in Nevada

By Leave a Comment

how to retire well in Nevada

When retirement draws near, it’s time to decide where you’ll call home during your golden years. For many retirees, heading to a new state is the best option for achieving their preferred lifestyle. If you are considering heading to Nevada, here is everything you need to know to make sure you can retire well in Nevada.

Cost of Living

When you’re trying to choose a state for your retirement, taking a close look at its cost of living scores is wise. It lets you estimate an area’s affordability in comparison to the national average (which is always 100) and other states.

Overall, Nevada has a cost of living score of 108.8, making it a bit more expensive than the national average. While the Silver State does offer some savings in the utilities arena, giving it a category score of 91.8, every other category score crosses the 100 mark. Groceries come in at 108.3, while transportation and healthcare are 118.2 and 104.0, respectively.

When it comes to housing, Nevada has a score of 118.0. This is mirrored by the average home value. While the national average is $272,446, the Silver State comes in at $338,426, a $65,980 difference.

Tax Considerations

Looking at what you’d have to pay in taxes is also a good idea before you choose a destination for retirement. That way, you can determine how much cash you’ll have to send to cover your taxes, allowing you to estimate how long your savings may last.

In Nevada, there isn’t any income tax. That means you won’t owe anything extra on your Social Security, retirement plan withdrawals, or income from working part-time.

However, the Silver State does have a sales tax. The rates vary a bit between different municipalities, though they typically come in somewhere between 6.85 and 8.375 percent.

Overall, property taxes in Nevada tend to be fairly low. There aren’t senior-specific programs that can reduce property taxes, though there are other exemptions that may help.

Part-Time Job Opportunities

At times, unemployment rates can help you determine the availability of part-time jobs in an area. High unemployment is usually problematic, as there are more people competing for positions, while low unemployment means easier access to jobs, in most cases.

It is important to note that COVID-19 has altered the employment landscape in many areas. Pre-COVID, Nevada had an unemployment rate of 3.7 percent. At the height of the pandemic, it skyrocketed to 29.5 percent, largely due to the economic impact of significantly declining tourism.

Unemployment rates have since recovered a bit, coming back down to 8.1 percent. However, it could still take months or years to reach pre-pandemic levels, depending on how quickly tourism comes back into the equation.

Generally, seniors should expect that finding certain kinds of part-time jobs may be harder in Nevada, at least for a while. However, as time passes, that likely won’t continue to be the case.

Best Cities for Retirees in Nevada

If you’re thinking about retiring in the Silver State, selecting the right city is a must. That way, you can have your preferred lifestyle, making your golden years more enjoyable.

For cost-conscious retirees, Gardnerville might be a great choice. It has a lower tax burden, a plethora of retirement communities, and plenty of amenities.

If you’re hoping for a waterfront retirement, Laughlin is a great choice. It’s right near the Colorado River and next to the California border. It’s a popular town for seniors, so you won’t feel alone here. Plus, there is a reasonable selection of amenities and entertainment opportunities.

For active seniors, Mesquite could be an excellent option. There are golf courses and casinos, as well as plenty of opportunities for outdoor recreation.

If you’d like to be near Las Vegas, try Boulder City. It’s a short drive to Sin City from there. Plus, there are enough amenities to keep you comfortable without having to leave town.

How Much Money You Need to Retire Well in Nevada

With a slightly higher cost of living, it does take a bit more cash to retire well in Nevada. Usually, if you can get access to about $68,968 a year, you should be in decent shape. Covering your needs shouldn’t be an issue, and you’ll be able to pay for some wants, too, ensuring your retirement is comfortable and enjoyable.

Can you think of any other tips or details that might help seniors retire well in Nevada? Share your thoughts in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

 

 

 

How To Retire Well in Montana

By Leave a Comment

how to retire well in Montana

Once you get close to retirement, it’s time for some exciting decisions. For many seniors, settling down in a new state is part of the plan, allowing them to achieve their ideal lifestyle during their golden years. If you have your sights set on Montana or are at least considering it as a contender, here’s what you need to know to retire well in Montana.

Cost of Living

Before you settle on a retirement destination, taking a close look at a state’s cost of living scores is a smart move. It gives you a quick way to gain insights about how expensive or affordable a state is, both in comparison to the national average and to other states.

For simplicity, the national average cost of living score is 100. Scores above that mean a state is more expensive, while scores below 100 means an area costs less than average.

Overall, Montana has a moderate cost of living, with a cumulative score of 99.3. That means, from an expense perspective, heading to Montana has pricing near the national average.

When it comes to category scores, some are a bit below the national average while others are above. Utilities, transportation, and healthcare are all under, with scores of 87.6, 94.4, and 98.5, respectively. Groceries come out a little higher than average, sitting with a score of 100.6.

When it comes to housing, the Treasure State has a score of 104.4, putting the state just a little higher than the national average. As for average home values, Montana comes in at $324,813, which is noticeably above the national home values average of $269,039.

Tax Considerations

Looking at the tax implications of choosing a particular state for retirement is another crucial step before finalizing your destination. The amount you need to hand over in taxes impacts your overall budget and may determine how long your retirement savings will last.

Montana does have a state income tax. Like the federal system, the Treasure State has brackets, ranging from 1 to 6.9 percent.

While some states don’t tax certain kinds of retirement income, Montana taxes nearly all of it. Many pensions, annuities, 401(k) distributions, IRA withdrawals, and any other retirement income that is taxable on the federal level are taxable in the Treasure State. Even Social Security isn’t guaranteed to be tax-free.

However, there are certain income tax exemptions that may reduce your tax burden. Lower-income retirees may be able to exempt all or part of their retirement income, making the state a bit more affordable.

Now, one benefit of heading to Montana is that the state doesn’t have any sales tax. That means, when you shop, you won’t pay anything beyond the product or service sticker price at checkout.

When it comes to property taxes, the Treasure State is a bit on the lower end. Additionally, the Montana Elderly Homeowner Credit can reduce the impact of that burden. If you’re at least 62 years old, have a household income below $45,000, have lived in the state for nine months minimum, and have owned a home for at least six months, you may be eligible for a $1,000 refundable tax credit to offset the effect of your property taxes a bit.

Part-Time Job Opportunities

If you’re hoping to have a part-time job to help your retirement savings last longer, exploring a state’s unemployment rate is a good idea. It can help you estimate whether jobs are generally available before you move.

Traditionally, Montana has a low unemployment rate. While it did reach 11.9 percent during April 2020 at the height of the pandemic’s onset, the state recovered fairly quickly. Plus, that rate was well below the national average during that month, which came in at 14.8 percent.

As of December 2020, Montana was back down to 4.2 percent. In comparison, the national average for that month was 6.7 percent, a full percentage 2.5 points higher.

Overall, there’s a good chance that part-time jobs are reasonably available in Montana. However, the kind of work you’re after does play a role, as some industries will have more opportunities than others. If you want to make sure you can find something, do a little research in advance. Often, by looking at existing vacancies, you can get some insights into demand in various fields, allowing you to plan more effectively.

Best Cities for Retirees in Montana

If you’re looking for an active retirement, you may want to head to Missoula. It is near plenty of opportunities for outdoor recreation, has golf courses, and it’s reasonably walkable. Plus, you have solid access to medical facilities and other larger city amenities, which can be a boon.

For retirees looking for a slower pace, Whitefish is a great choice. The city itself maintains a small-town feel, making it relaxing. However, you still have access to everything you need, including outdoor recreation, medical facilities, and more.

When it comes to tax-friendliness, Livingston is the winner in Montana. That could make it the best option for budget-conscious retirees. However, Livingston also has plenty to offer, including access to critical amenities, outdoor recreational opportunities, and more.

How Much Money You Need to Retire Well in Montana

Since the Treasure State has a middle-of-the-road cost of living, you can retire well in Montana with a moderate amount of savings. If you have access to approximately $68,588 a year – either purely through retirement accounts or by supplementing your savings with a part-time job – you should be in decent shape. Along with covering your needs, handling some wants should be in the cards, ensuring your golden years are both comfortable and fulfilling.

Retirement Apps You Can Use

AppFees and MinimumBest for:
Betterment0.25% per year
no account minimum
Saving for retirement
Ellevest$1-$9 per month
no account minimum
Retirement especially for women
Personal CapitalFreePlanning retirement

Did you retire well in Montana? Do you have any tips or insights that could help others achieve their goal of having a great retirement in Montana? Share your thoughts in the comments below.

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Retire Like a Boss by Following These Retireees Lead

By Leave a Comment

Retire Like A Boss

Do you want to have a fabulous life after retirement? That might look a little bit different to each individual. However, there are some general guidelines that you can follow to retire like a boss. Follow the lead of these nine retirees who have inspiring stories and helpful advice.

1. Retire With Integrity like Bill Watterson

Bill Watterson was the cartoonist behind the Calvin and Hobbes series. He loved the series but over time he grew exhausted of the daily deadlines. Moreover, he was tired of his cartoon’s syndication. So, he retired. He could have gone for a lot longer making money off of Calvin and Hobbes. Instead, he decided to do what he felt was right in his heart. If you think that it might be time to return, even if you’re at the peak of your career, then go ahead and do what’s right for you!

2. Retire To Do Something New Like Michael Jordan

Do a quick Google search on celebrities who retired early and you’ll find lots of lists of actors and athletes who retired young. But you know what most of them have in common? They retired from one thing in order to do something else. Sometimes they didn’t like the fame so they quit for a more “normal” job. Sometimes they were just done with one thing and ready to try another. Michael Jordan’s second career in baseball after his basketball stardom is just one example. Retire from a job, but not from working altogether. You can continue to make money doing something new that you love.

3. Retire Even If No One Thinks You Should Like Benjamin Franklin

Did you know that Benjamin Franklin was an early retiree? In fact, retirement wasn’t even really a thing in his day and age. He might have been the first person we know of to retire. He was in his early forties, he was tired of the hard work of running a printing press, and he was ready to move on to other things like politics and inventing. So he retired. It doesn’t matter if no one around you is doing it. If you’ve set yourself up to retire, go for it.

4. Get Into Investing Like Warren Buffett

Warren Buffett had other opportunities to continue working managing hedge funds, etc. but he decided to go ahead and retire. Of course, he didn’t stop working; but he turned his attention to investments. Hopefully, you’re already investing your money wisely in order to be able to retire early. But either way, retirement is a perfect time to start exploring more opportunities for allowing the money you earned to continue making more money for you as the years go on.

5. Cash In On Your Knowledge Like Mark Cuban

Mark Cuban also made a lot of his money through investments and stock trades after early retirement. But what got him into doing that was that people started asking him for his advice about trading tech stocks. He had built up unique knowledge during his career. So have you. How can you cash in on your knowledge after retiring to keep making the money that lets you retire like a boss?

6. Spend Time with Family Like Patrick Pichette

When Patrick Pichette retired from his position as Google’s CFO, it wasn’t to chase a bigger paycheck. It wasn’t to begin inventing things or trying a new career. Instead, he simply wanted to focus on spending time with his family. What are the things that you really value most in your life? Chances are your family, friends, and other loved ones are at the top of the list. If you get the opportunity to retire, then take that opportunity to spend time with the people that you love.

7. Adopt an Abundance Mindset Like Sam Dogen

Sam Dogen of Financial Samurai is one of many bloggers who retired early and now makes a living sharing how they did it with others. His advice, found in his own CNBC articles and elsewhere, includes embracing an abundance mindset. He says that frugal living is smart but you can’t retire early with millions in the bank if you’re making your decisions from a scarcity mindset. Instead, you have to truly believe that there’s plenty out there and that you’re deserving of your portion of the proverbial pie. If you can do this then you can set yourself up to retire like a boss.

8. Remember You’ll Be There When You Retire, Says Carl Jensen

One of the things that Carl Jensen realized quickly after early retirement was that retiring didn’t solve his problems. You are still going to be the same person after retirement as you were before retirement. And since you won’t have work to distract you, you’re going to have to deal with yourself. Therefore it’s important to do the personal work in your life as well as the business side of things. Work on your relationships, your health, your interests, your psychological wellbeing.

9. Get On The Same Page as Your Partner Like Brandon of Mad Fientist

Brandon of Mad Fientist realized that he wanted to retire early. So, he talked to his wife. She didn’t want to retire early and chose to keep working. However, they had a lot of conversations to get clear about what this would look like for both of them. They outlined their individual and share priorities. They figured out how to make retirement work not just for Brandon but for their whole family. Make sure you include your partner in your retirement decisions if you want to retire like a boss.

1o. Retirement Apps you can use

AppFees and MinimumBest for:
Betterment0.25% per year
no account minimum
Saving for retirement
Ellevest$1-$9 per month
no account minimum
Retirement especially for women
Personal CapitalFreePlanning retirement

Read More:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.