How to Create a Bare-Bones Retirement Budget that Works

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6 Tips for Retiring on a Bare-Bones Budget

Never allow so-called financial experts frighten you. Always remember, it’s in their interest to convince you to save a lot more than you actually need, then hand in your nest egg for them to manage so each year they are able to skim off 1 or 2 percent of your assets for a profit.

It is possible to retire on much less than some people want you to believe. If perhaps you’re thinking about retiring on a bare-bones budget, take a look at these strategies:

Assess where you stand

The very first thing to do is add up all your assets and debts. Ideally, when you’re thinking of retirement, you have more assets compared to debts. Your mortgage might be paid off or almost so, and you really should no longer have any student loans. This point is not the time to take on new debt. In case your car is getting older and you can manage to pay for another one, go ahead and get it, however, if you must take out a huge loan, it’s better to keep the old car and fix it.

Downsize your housing

Your children are matured. You don’t need to have three or four bedrooms any longer. Many people hang on to the old place unnecessarily, sometimes your children might want to move in after college or need to come back to the house after a divorce. However these are “what ifs,” If your retirement budget is minimal, then take the step and move to a smaller sized place, in a more affordable neighborhood with lesser taxes, less maintenance, and lesser utility bills.

Share and share alike

If you are single, consider sharing a home with a friend or family member. A lot of older houses have mother-in-law suites and some modern construction provides two master bedrooms. Two can live less costly than one and this set up gives you some companionship on top.

Search out free entertainment

If you need to cruise the Mediterranean on a first-class ship, you would probably need 100 percent of your pre-retirement income. But the majority of people don’t do that. Your town or city most likely offers a great deal of entertainment options like free summer concerts, fall festivals, and workout classes for seniors in the winter. Look into your library for free seminars, book clubs, movies, and lectures. Your church, veterans association or political group might offer a lot of worthwhile activities for your leisure, all at a minimal cost.

Stop subsidizing your kids’ lifestyles

Great parents offer their children roots and wings—roots to grasp where home is and wings to take a flight off and practice what has been taught to them. It is usually difficult to say no to your kids. But you have already given them roots. So now it’s time for wings. They should find their own apartment and learn how to live on their own.

Take advantage of senior citizen discounts

Think about joining the AARP for discounts in addition to supplemental medical insurance. Make a trip to town hall and check out real estate tax breaks and other senior citizen special discounts. While you’re there, take a look at free or low-cost programs the town might offer senior citizens such as free transportation, inexpensive meals, and health care services. A lot of municipalities offer programs that are underutilized just because people don’t know about them, and are uncomfortable to ask.

7 Hacks to Improve your Financial Retirement Plan

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7 Hacks to Improve your Financial Retirement Plan

As opposed to the majority of retirement planning and lifestyle books that centers on investing – this new book from Jeff Yeager, ‘America’s favorite cheapskate’ makes the interesting case that you could have a joyful, worry-free retirement by simply spending smart and centering on what you really want.

In interviewing some proud, self-proclaimed “cheapskates” Yeager discovered that they have learned smart spending to the point where they are ready to retire very comfortably—and much earlier—on much less than the income required by the majority of Americans.

These are people that have discovered that the key to financial independence—and an entire life of happiness—has more to do with making the most of whatever you have than it does with actually having the best of everything. Being a “cheapskate,” isn’t about sacrifice nor is it about being greedy, it’s all about finding out what’s extremely important and being smart enough to bypass the rest.

With regards to retirement and retirement planning the advice of smart-spending ought to be comforting and very helpful to all that are thinking about wanting to achieve their retirement dreams.

Those who retire the cheapskate way have something in common:

  • They always live below their means throughout their working years, both as a means of saving cash for retirement and “test driving” their retirement lifestyle
  • Stay away from debt
  • Take responsibility as the CFO (“Chief Frugal Officer”) for their own money and retirement life, and not just take the advice of financial consultants
  • Buy a “forever home,” ideally, when started, they pay it off as fast as possible, and take pleasure in it throughout all stages of their lives, as well as retirement
  • Devote as much time maintaining their health and fitness as they devote making money and stressing about how to pay for healthcare
  • Design their retirement lifestyles and budgets to ensure that most or every bit of their essential expenses are covered by their earnings from Social Security alone
  • Figure out creative methods to leverage their free time, interests/passions as well as their homes to both earn money and save them all the more as soon as they’re retired

Retiring the cheapskate way isn’t just about getting just one type of retirement lifestyle, as readers will discover from the broad selection of people and families profiled in the book. Instead, it’s about mastering some vital money lessons, tips, and tricks—both big and small—that can help practically anyone retire better, earlier, and happier.

3 Essential Tips for Starting your Retirement Savings Now

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3 Essential Tips for Starting your Retirement Savings Now

Americans have ended the year feeling quite cheerless regarding their retirement savings. Less than a third of Americans claim they feel great regarding how much they put away during the current year.

The year-end survey, that was carried out online by Harris Poll discovered that while 70% of Americans are saving for retirement, only 21% intend to max out an individual retirement account like a traditional or Roth IRA in 2016.

The possible greater problem, however, is the fact that a lot of people are not likely to do better in the coming year, with only 32% of those who have a workplace retirement account reporting plans to step up contributions in 2017. That’s in spite of potential 3% pay raises — the anticipated average, as outlined by a survey of U.S. companies — and a median income that was up a year ago for the very first time since 2007.

Here are three ways to make 2017 the year of the retirement savings.

  1. Calculate retirement savings needs

You can’t save money for retirement if you don’t have an idea on the amount of money you need for retirement; without running the numbers, you’re most likely to save not enough or too much. Fortunately, this isn’t an exercise that will require math, or even pencil and paper. A web-based retirement calculator can quickly show you the amount of money you should save on a monthly basis based upon factors you put in: your income, age, estimated spending needs and investment return.

  1. Make small increases part of your yearly routine

The most convenient way to save more is just one step at a time; picture this as a whole new ritual: Take just a few minutes on Jan. 1 to increase your retirement contribution by 1%.

Think about this: Nerd Wallet’s math discovered that if a person earning $40,000 and presently saving 5% raises his savings rate 1% annually until he’s saving 15% of income — the normal retirement savings goal — he’ll get $1,053,455 after 40 years.

A number of employers do this for you by rapidly increasing your contribution to a 401(k) plan annually.

  1. Make use of the right retirement accounts

As outlined by the Nerd Wallet’s survey, 55% of Americans that are saving for retirement — and 63% of those ages 18 to 34 — report doing this at least to some extent within a bank savings account.

Those consumers could very well be missing out on the big tax savings of tax-advantaged retirement accounts, including employer matching dollars in workplace plans as well as the chance to invest their money for a greater return and not settle for a bank interest rate of 1% or less.

Retirement savings dollars need to always go into a workplace plan with matching dollars first. As soon as that match is fully captured, investors can look at a Roth or traditional IRA. The difference there depends on taxes. The money in a Roth may well be more valuable. If all retirement account options are maxed out for the year, the final stop for extra dollars is a taxable brokerage account.

 

Overview of South Dakota Retirement Tax Friendliness

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There is absolutely no state income tax in South Dakota. This suggests that Social Security, pensions as well as other forms of retirement earnings are all tax-free. Sales taxes are incredibly low in South Dakota and property taxes are reasonable but are generally offset for low-income seniors.

South Dakota Retirement Taxes

In case you’re thinking about relocation for your retirement and you’re worried about taxes, South Dakota could possibly be a great choice. The state’s tax system is one of the most retiree-friendly in the nation. It has no income tax, comparatively low sales taxes, modest property taxes and no estate or inheritance tax.

Living costs in South Dakota are moderate. As a matter of fact, in most parts of the state, retirees are able to afford the basic cost of living with the normal Social Security earnings alone. However, seniors who are uncomfortable with cold weather might possibly find South Dakota uncomfortable. The average high temperature for the month of January in is 26.4 degrees Fahrenheit.

Is the state tax-friendly for retirees?

Sure. As a matter of fact, South Dakota is one among the most tax-friendly states in the country for retired people. There is absolutely no state income tax in South Dakota. What this means is Social Security, pensions as well as other forms of retirement income are generally tax-free. In addition, sales taxes are extremely low and property taxes are reasonable but can be offset for low-income seniors.

Is Social Security taxable in South Dakota?

Absolutely no, Social Security is not taxed at the state level in South Dakota. As a matter of fact, South Dakota has no income tax in any respect. Meaning it does not tax any kind of income: Social Security, wages, investment income or anything else.

Are other types of retirement income taxable in South Dakota?

No. Any kind of income from a 401(k), an IRA, a pension or perhaps some other source you can think of are not taxed at the state level. Bear in mind, however, that you might still owe federal taxes on those income sources.

How high are property taxes in South Dakota?

Property tax rates in South Dakota are considerably very high but on the whole the cost of living in South Dakota is reasonably low. As outlined by the National Association of Realtors, the median home sales price in Sioux Falls in 2014 was $162,300. The nationwide median was a lot more than $208,000.

If you have a home in South Dakota you will probably pay around 1.3% of your home value yearly in property taxes. There are actually some programs to help seniors with high property tax bills in South Dakota.

What is the South Dakota homestead exemption?

If you have a home in South Dakota you will probably pay around 1.3% of your property value yearly in property taxes. There are actually a number of programs to help seniors with excessive property tax bills in South Dakota. What is the South Dakota homestead exemption? South Dakota makes it possible for people over the age of 70 with earnings below a particular level to hold up payment of all property taxes until their home is purchased. The property taxes remain owed, and accumulate interest at a rate of 4% yearly; however, they can be paid off with the proceeds of an eventual home sale. The income restrictions are listed below: total income lower than $16,000 annually for single-person households or overall income lower than $20,000 annually for multiple person households.

Furthermore, in a few cities seniors could also apply to have their municipal taxes from the preceding year reduced. It is actually called the Property Tax Reduction from Municipal Taxes. You have to be at the very least 65 years old to apply. You could have income not more than $5,757 (for single householders) or $7,764 (for multiple person households). The decrease runs from 55% to 16% for those who meet these requirements, based on level of income.

How high are sales taxes in South Dakota?

Significantly less, the statewide rate is 4% and almost all major cities collect yet another rate of 2%. But, medical services and prescription drugs are not taxed. Purchases made with food stamps are likewise tax-free.

What other South Dakota taxes should I be worried about?

Not a single one! There is no estate tax in South Dakota and the inheritance tax was repealed fifteen years back. Actually, the only taxes retirees relocating to South Dakota have to take into account are federal taxes on income and the federal estate tax. All these apply irrespective of where you live.

Mail Forwarding for the Serious RVer

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If you’re a consistent traveler or arranging a several-month trip, you might want to get a professional mail forwarding service and work with all the time. This seems a bit strange, given that you’ll have to permanently change your mailing address for to the address of the mail forwarding service. Which means you won’t get mail sent straight to your home any longer (except junk mail).

Usually it takes a couple of months to get every person informed on your new address; however the benefits are worth it. As soon as you’ve got all your bills, correspondence, along with paper mail coming to the new mail forwarding address, life becomes extremely hassle free. No matter where you are, it is possible to simply call, email, or log into the website of your mail service get them to package all your entire mail to be delivered to you as a single package. Put simply, it is possible to deal with the mail on your schedule.

Just in case you’re ready to make the switch, here are a few tips to keep in mind:

Choose the right mail forwarding service.

Whenever you are trying to find a new mail forwarding service, most people would advise you to just use any UPS Store. That is really a bad idea. Imagine if that small shop in the strip mall is out of business? It has happened to friends and other full timers, and they’ve had the hassle of moving the whole thing to another address.

As an alternative, try to find a reputable mail forwarding specialist that has a succession plan in place just in case the owners retire or the company has to move. Additionally, try to find a service which will give you exceptional personal attention by means of phone and email.

Keep it professional.

Although it can be tempting to request a friend to pick up your mail at home and forward it to you, be careful. There are a lot of stories where the friend happens to be “too busy” and important mails are delayed.

Check the fine print.

Just like USPS Mail Forwarding, several services have limits on the things they will forward, there are special complaints from subscribers who paid for the lowest priced mail forwarding service and discovered later that their magazines were getting tossed away.

Know your options.

Ensure the service you make use of will forward your magazines and give you the option to have them throw out junk mail. Ensure that if you receive a surprising 10-lb paperweight in the mail, they’ll inform you before shipping it at your cost. That way you are getting all you want, and not paying to forward stuff you don’t want.

Get a permanent solution.

It is possible to file temporary forwarding orders; however as soon as you experience the comfort of professional and permanent mail forwarding, you will likely become addicted.

Reduce your volume of mail.

Most people used to get a giant pack of mail monthly from their mail forwarding service. It would usually run about four inches thick. Then they’d pay out a full day sitting in their Airstream, sorting through all the paper, having to pay bills by check, licking envelopes, and shredding sensitive information.

Go paperless.

Get every single credit card, utility; bank, as well as other recurring relationship to send you an e-bill. Get all your small recurring bills (cell phone, etc) billed automatically to your credit or debit card, to trim down the quantity of bills you get. Save the e-bills on your pc as PDFs in order to refer to them whenever you want to. Make use of online banking to facilitate your bill paying. It’s usually free and convenient to use.

Just say no.

Reducing the number of mail includes easy techniques such as asking to be removed from mailing lists and terminating needless accounts. Preferably you should just get several important pieces of mail weekly, so you can spend almost all of your time taking pleasure in the travel experience.

Consider state of residence.

You don’t need to select a mail forwarding service in your home state. It’s absolutely legal to have your mailing address anywhere you want. However, in case you are going out full time, this is definitely an opportunity to review your state of residency.

Get a physical street address, not a PO Box.

Or else, you might have trouble with banks and drivers licenses later on, thanks to some remaining provisions of the Patriot Act. An address similar to 411 Walnut St #4468 is fine.

In some instances you are going to be required to give a “real” physical address also. In Arizona, it is legal to have your Motor Vehicle Registrar home address on file different from your driver’s license address.

How to Get Your Mail While Living in an RV

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How to Get Your Mail While Living in an RV

Most of us get mail, some of it we want… a few we don’t. Even though you do your entire bill paying online or by means of automatic debit, you’re still sure to get mail. Any time you’re roaming around the country in an RV, it really hard for the mailman to keep track of you on any given day. Hence, how do you get your mail to “follow” you? Actually there are 2 parts to this question. The first is…

Where will my mail be sent to?

Get a relative or a friend to receive your mail and forward to you…

PROS: Is not going to cost anything aside from forwarding postage.

CONS: They would almost instantly grow sick of doing it; they get frustrated at you and might not repackage things appropriately.

Rent a box at the nearby UPS store…

PROS: Simple to setup, personalized service, packages handled carefully.

CONS: Are typically costly, might not be viewed as a legal address.

Make use of a professional mail forwarding service…

PROS: This is exactly what they do and they do it perfectly. Personal, professional service and readily available options, affordable prices and generally regarded as a legal, permanent address.

CONS: Several require club membership (Escapees, etc.)

How can your mail be sent to you and where are you going to pick it up?

There is absolutely no single answer here as everyone has completely different needs when it comes to mail. Do you want it immediately? Do you want it delivered to you weekly? How much are you ready to pay for the service? Are you in the same place for prolonged periods of time or do you travel around all the time?

One more variable is how your mail is going to be sent to you. If it is just a heap of letters, then Priority mail are probably the best options, if you have packages, magazines as well as other heavier items, then UPS or FedEx are generally better. Let’s take a look at where it can be sent…

Have it delivered to the campground you are in…

PROS: Effortless and you can get items of every sizes from any service (USPS, UPS, FedEx, and so on.)

CONS: A lot of campgrounds don’t permit this and if they do, their approach might not guarantee privacy and security.     General delivery…

PROS: Mail is secure in a post office, are typically held up to thirty days, available virtually everywhere.

CONS: Not every post office takes General Delivery; they will not take UPS and FedEx deliveries.                                       Have it delivered to a UPS store…

PROS: Secure and safe, can take delivery of packages and items from all carriers.

CONS: Charges are quite expensive, locations are random and you have to coordinate with them prior to receiving   anything, franchise might close shop.

 

My RV Mail provides the following services and plans are as low as $9 monthly in addition to any postage you use:

  • Physical street address in FL to get packages and FL state benefits
  • Ask for a scan; get a scanned image of your letter.
  • View and forward your mail online option.
  • Destroy all unwanted mail.
  • Limitless weekly mailings
  • Customized mail sorting
  • Hold mail as long as six months
  • Go over mail via phone – open mail if requested.
  • Zero cost Fax Services
  • Totally free email address at MyRVmail.com with your Mail Forwarding Service
  • Choose the frequency of shipments to your current location.
  • Select what mail items you want forwarded, scan, trash or held.
  • You ultimately decide on where and how your mail forwarding is done (First Class, Priority, USPS, FedEx)