Retirement Planning - Your Financial Future Is In Your HandsWritten by Kelly Gillis
Retirement planning is for some something they don't think about until they're past time to make most of opportunities available when they were younger. Retirement planners agree that in order to enjoy same lifestyle in retirement that you do now you will need 70-90% of your pre-retirement income. The best part is that it's really never too late to start, or, as old saying goes, "better late than never". Here are some ideas to help you with successful retirement planning at any age.
Most retirement planning specialists will tell you that one of first keys to successful retirement planning is starting early. It's simple, earlier you start saving for your retirement more money you will have due to compounding of dividends and interest. The difference can be startling. If you started saving at age of 40, you'd have to save over three times amount of money that you would have if you had started at age of 25 to have same amount of money at age 55.
Experts agree that you will need three main sources of retirement income, your Social Security, your pension, and your personal savings, (profit sharing, IRA's, or 403 (b) plans). Max out your employer sponsored retirement plans. These are a great way to save for retirement. Along with immediate tax savings these offer, many employers offer incentives such as matching a percentage of contributions. IRA's (individual retirement accounts) are also excellent ways to save for your retirement. This money is put away pre-tax. When you withdraw this money at retirement time you are in a lower tax bracket. The downside of IRA's is that you cannot use this money before a certain age without significant tax penalties.
Thinking Of Co-Signing For A Loan? Read This FirstWritten by Roy Thomsitt
It is quite common for someone, who is having trouble getting credit, to approach a friend or relative to act as a guarantor or co-signatory for a loan. They've seen that new car they would dearly love, but have one problem. For one reason or another they are a credit risk, and cannot get a car loan on their own. It may seem simple when they say that all you have to do is sign. That's it! The trouble is, that is only beginning; at least, if things go wrong, signing for loan is not "all you have to do."
The Reality Of Co-Signing A Loan - What You Should Know
Before you finally co-sign that loan application, there are a few things you ought to know. In reality, it is not just a matter of signing loan application. You will be entering a serious loan transaction, in which you will have responsibilities, just as if you were applying for loan yourself. If your friend does not keep up repayments on that car, or other, loan, lender will seek best way to get money. Their first port of call? You!
If you are asked to co-sign a loan application, here are a few points for you to take into account. Stop and think about them. Ignoring them could lead you to lose a lot of money yourself, and possibly fall out with your friend.
1. Your Friend Is Probably A High Credit Risk
If someone is asking you to co-sign a loan, that means that lender is unwilling to take a risk on them on their own. This means that their past credit performance has been so bad that lender doesn’t believe your friend will pay back loan. Do you want to be fall guy; one who carries risk? You are not a professional lender, and your judgement may be impaired because this is a friend.
2. Impact On Your Credit Report
You have probably worked hard and responsibly to keep your credit report clean. Your friend would benefit from that if you co-sign loan, but did you know that if your friend becomes delinquent with his payments, it could affect your credit report? All your good work down drain because of your trying to help a friend.