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Cashology by FNBO
17 minutes | 7 days ago
Will You Be Financially Ready to Retire?
Assessing your desired lifestyleIt seems like a no-brainer, but to reach the finish line and retire how you would like, you have to determine your target amount. According to an FNBO ‘Retirement in America’ study, 69 percent of those who have yet to retire hadn’t calculated how much they needed to do so. In order to know that target amount, you have to take into consideration what your life looks like and how much you want it to adjust. The last thing you want to do is guess, or just improvise until you are too close to retirement to make any adjustment or plan.Typically, you want to save enough to live on 75% to 85% of your pre-retirement income. That varies based on how much you want to adjust in comparison to your pre-retirement lifestyle. Some folks stay very active or have bucket list items they want to check off. Maybe the house becomes a smaller one, health costs change….It all factors in.Barbara goes into a basic formula for calculating necessary retirement savings amounts ( Subtract your projected expenses in retirement from any guaranteed sources of retirement income (Social Security retirement benefit, pension, annuity payments). This is the amount of annual expenses you must fund with savings. Multiply this amount by the number of years you expect to spend in retirement.) How early should we start saving?Simple answer: as soon as you can. A lot of Americans aren’t doing that, however. According to the survey we mentioned earlier, 19 percent of retirees were older than 50 when they started saving for retirement. 16 percent were between 41 and 50.You want to avoid starting that late, but if that’s where you are, an advisor can help. Bottom line, the answer to this is start saving yesterday. Talk about compound interest helping those who save earlier, and use $250 per month as an example amount, comparing totals starting at age 25, 35 and 45. What kind of hurdles does the normal person face when trying to stay on track? Well, this figures into your budget no matter what stage in life, but…DEBT. You’ve got the average household owing over $15k in debt. The interest and principal payments on heavy debt like this will severely hamper your ability to put money away for the future. Every day budgeting helps with this. Another item: the unexpected. Many folks working toward retirement and saving tend to look at the situation in a vacuum. They calculate (or, without an advisor, they guess) and decide, “hey, based on a percentage of my pre-retirement income, I’m going to save this much continuously all the way up until I retire, then this number will be the rock-solid, be-all-end-all yearly number and I am good. What they don’t plan for, however, is health coverage. You want to keep that on your radar. Employer sponsored coverage will stop, and you’ll have an adjustment to plan for there. Medicare helps, but all things considered, you want to look close at what is bound to happen—a shift in health care and healthcare coverage costs. We don’t want you surprised when it comes to that. Also, don’t touch! Your retirement savings is for just that—retirement. Obviously in absolute dire emergencies you can look at using it, but it’s best not to. There could be penalties involved in withdrawing early. Quick Facts“There's never enough time to do all the nothing you want.” – Bill Waterson, Calvin & Hobbes“The best time to start thinking about your retirement is before the boss does.” – Author UnknownOnly 58% of Americans are actively saving for retirement Only 36% of Americans strongly agree or agree that they know how much money they’ll need to retire.The average debt load for Millennials is $30,580, and the average household income is $55,200.A majority of Americans are learning about retirement by word of mouth.
11 minutes | 21 days ago
How to Manage Finances in a Marriage
What’s so hard about managing finances in a marriage? Why is it such a challenge?You’re looking at money from a combined position now.Combined income, spending habits, debt, credit scores, goals,First thing you really need to do is get a picture of your combined financial position.You really need to get everything out on the table.Incomes, savings, retirement savings, debt, credit scores, insurance policies.Get all of your assets and liabilities listed out and see where you stand.This comes first. And it isn’t easy. We’re still very private about money, even with our spouses.In business, they say information is power. And sharing information is sharing power. That’s kind of true in a marriage, too.It takes a lot of trust.Let’s say they get through this first step, they share everything, what comes next?Talk about priorities.And make sure you agree on priorities.Whether it’s paying down debt, saving for a home, buying a new car, planning for children.Everything about marriage has a financial side to it.Eating in or dining out, taking a vacation or going to a concert.Talk it out, as much as possible.And be specific – for example, when it’s okay to use a credit card to make a purchase.You don’t have to agree on everything 100% but it helps to have a common understanding of how you’re going to manage money.Let’s say you agree you’re going to save for a home and pay down student loans. Those are your priorities. And of course to have an emergency savings fund, a savings account that buffers you against the unexpected.Then it’s time to set specific savings and payment goals.How detailed do we need to get on these goals?Very detailed.Make a budget that identifies all your income sources, savings goals and spending limits.Know how much you’re going to set aside with each paycheck saving for a down payment on a house or paying of a student loan.Be detailed. This can be challenging but making that budget and sticking to it will give you some peace of mind about your finances.And it gives you a way to measure how you’re doing each month.Will this approach work for everyone? And do they have to decide who’s in charge of their money?It gives everyone a starting point. But another important aspect of managing finances in a marriage is defining responsibilities.Who does what?Who pays the bills, who pays for miscellaneous expenses, who manages the accounts.And will there be joint accounts or individual accounts?Don’t leave these things for time to decide. Talk about them. You can always change roles and responsibilities later if you want.That’s a reassuring idea, I think, that it’s not a one-time discussion or decision. It’s ongoing and something that can always be discussed and changed around.Absolutely.Couples should always be talking about their finances and adjusting their goals and budget as needed.Incomes change, goals change. Keep the conversation current. Keep the communication going.And track your progress. Whether it’s once a month or once every three months or so. Sit down together and take a look at how you’re doing.Communication is the key.You’ve got it. Useful info/linksFNBO: https://www.fnbo.com/insights/personal-finance/how-to-manage-finances-in-a-marriage/index.htmlMoney Crashers: https://www.moneycrashers.com/money-management-newly-married-couples/Simple: https://www.simple.com/blog/how-to-manage-money-as-a-couple
11 minutes | 2 months ago
Choosing a Financial Advisor
What is a financial advisor exactly? What do they do? And should you be working with one? Those are some of the questions we’ll be tackling in this episode. Keep in mind, there’s a financial advisor available for every budget and financial situation. You don’t have to have a ton of money to be working with one. Tune in now!
15 minutes | 3 months ago
Understanding, Managing and Improving Your Credit Score
Let’s talk CREDIT SCORES. 💳💲📉 Is the number just pulled out of the sky by banks? Take a listen to this episode of Cashology: Understanding, Managing and Improving Your Credit Score to see what you can do to stay on top of it.
13 minutes | 4 months ago
Holiday Spending & Saving
Put on those holiday sweaters, festive socks, and have some hot chocolate by the fire, because today we're talking about holiday spending and saving.
17 minutes | 5 months ago
Cost of Pet Ownership - Can You Afford a Pet?
Is it expensive to adopt or purchase a pet? Juli asks about all that’s involved with pets and mentions how quickly a home can be taken over by all the crazy accessories. We jump back on task with the expense discussion…tune in now. Some steps to building a budget before bringing home a pet 1. Think about if you want to adopt or purchase a pet and find out costs for each 2. Research food costs 3. What accessories would you like your pet to have 4. What are the medical costs for the first year? Subsequent Years? 5. How can you adjust your current lifestyle to save for an unexpected vet visit?
11 minutes | 5 months ago
In this episode you will learn what the 50/20/30 rule is and why it is important to keep to these percentages. Following this rule helps you stick to your budget and reach your goals. It gets you mentally prepared for the month so you don’t have any surprises in your spending. Tune in now!
18 minutes | 5 months ago
What is Mortgage Refinancing, and When is the Right Time to Buy?
What is Mortgage Refinancing, and When is the Right Time? You’re throwing your money away! (Do we have your attention now?) Well, you could be–if you haven’t looked at refinancing your mortgage in a looooooong time. This episode will walk you through refinancing, and some things to consider or ask your lender when that time comes.
13 minutes | 6 months ago
Money 101 - Emergency Savings
Let’s learn a little something about saving today, shall we?GUESTAdam Heng. TALKING POINTSWhat defines a financial emergency?Why is it important to have these funds set aside?Is there a ‘magic formula’ for what number is necessary?The ‘Extras’QUOTESDo not save what is left after spending, but spend what is left after saving –Warren BuffettHe who buys what he does not need, steals from himself –Swedish ProverbToo many people spend money they haven’t earned, to buy things they don’t want, to impress people that they don’t like. — Will RogersYou must gain control over your money or the lack of it will forever control you. — Dave RamseyIt’s amazing how fast later comes when you ‘buy now.’ –Milton BerleThank you for listening. Don’t forget to subscribe and keep an eye out for more Cashology® coming your way soon. SUBSCRIBE: Cashology on YouTube: https://www.youtube.com/channel/UCQvLFYVGVatKkqsOolBIhrg/?sub_confirmation=1 Connect with FNBO: http://www.youtube.com/c/fnbovideos?sub_confirmation=1! Cashology Facebook Group: https://www.facebook.com/groups/cashologybyfnbo/ Facebook: https://www.facebook.com/fnboTwitter: https://www.twitter.com/fnbo Learn more: https://www.fnbo.com/insights
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