College or Retirement?

College for the kids or retirement for you? Which goal has the highest importance? Or can you possibly save for both? These are a couple of the most frequently asked questions of financial planners.

First off, don't criticize yourself about your money management. It is very difficult to accomplish either one of these goals. The purchasing power, the company pension plans, the increase of education and starting families earlier play a huge part in such difficulties.

And let's face it -your retirement should have an emphasis on your own life. Let your children go to a high-priced four-year private school if you wish, and give them the gift of learning to use their money wisely by paying for it themselves. Look at it from this point of view, if you spend your money on college, then a few years into retirement your savings will be gone. Your social security may not be enough to make ends meet.

Just ask my 90-year-old great aunt how far her $638 Social Security check stretches each month!

The best thing to do for your family is to stay financially strong, and put your retirement first. It may sound selfish, but it is truly the best strategy for your family overall.

If you want to try to save for both, here's some advice. Start while the children are young, and set them up a bank account. Many financial planners recommend that children set aside 25% of their earnings into this bank account. This could be money earned from chores, good grades or even holiday gifts. When the child reaches high school age, then they can start a part-time job and supply that percentage through their earnings. This will not only help save money for college, but it will help teach your children important economic lessons.

So again, pay attention to your future first and your children will appreciate it in the long run. Don't let something like not paying for college get you down. Your children will need you throughout their life far more than your money. The protection of your finances will ensure an independent retirement and leave no burden on future generations.

Retirement Communities

Oftentimes as retirement approaches, many people choose to move into a retirement community as opposed to a private home. There are many things to consider when taking this route in your retirement.

The first step in shopping for a retirement community is taking a good look at what you want...much like a personal inventory. Characteristics such as age, health, marriage, financial status, religious preference, personal interests and hobbies will help define the type and location of retirement communities best suited to an individual's or couple's personalities and capabilities. Don't worry...there are plenty of options when it comes to retirement communities...there is one just for you!

The fees and ongoing costs of a retirement community can vary widely. Some retirement care communities provide unlimited medical and nursing home care as part of the total package. Others include a certain amount or level of care, but charge more if you exceed the limits. Still others are "fee-for-service," with the charges depending on the care needed.

Many communities will require applicants to pass physical and mental checks. Applicants with cancer, strokes or dementia may have their applications rejected. Even facilities that accept people with unhealthy conditions do so on a space-available basis. Therefore, the best idea is to apply while you are still healthy. People who wait until their first health crisis to apply might not get in.

So-called "independent living" retirement communities are designed for seniors who are relatively independent, both physically and socially. The primary perk in this kind of retirement community is maintenance-free living; no house and lawn upkeep, linen service, trash pickup, transportation, and lunch served in a common dining center. These kinds of retirement community homes give seniors the freedom to truly enjoy the "Golden Years". Activities are another big part of independent living communities and often include crafts, exercise classes, live entertainment, movies, parties, outings and overnight bus trips, each adding a new dimension to the senior's experience. Residents generally choose apartments from one of three floor plans.

When looking at a retirement community, find out if it is accredited. The Continuing Care Accreditation Commission is the only accrediting agency for continuing care retirement communities. Ask how medical care is provided. Is assisted living or nursing home care on site or on-call? Scrutinize the agreement and make sure you thoroughly understand it. Also, some retirement communities will let potential applicants spend a night in the retirement community home and take a meal. If you do this, take every opportunity to talk to as many other residents as possible to get a truly unvarnished view.

Enjoy Your Retirement Living

Some people just don't bother to retire until they have no choice. By then, they may be old and tired and sick and they're less likely to enjoy their retirement living. Retirement is a phase of our lives just like any other phase, and we owe it to ourselves to claim the full benefits that it can offer.

Hopefully you've planned for this day for some time now, and you're prepared financially for any changes in debt or income your retirement will bring.

Some people look forward to retirement all of their lives until the day comes, and then they become depressed because they think life is over. If you have grandkids, you should know that life is not over at all.

You'll enjoy your retirement living more if you're busy. You've probably got some kind of project you need to work on, or someone you need to call.

The better you feel about yourself, the more you'll enjoy your retirement. Perhaps you could take a class at the community college on a subject that interests you.

Reach out to others during this time and don't become a hermit. Play with your grandkids, and if you don't have any, play with someone else's.

You may be retiring from your job but you don't have to retire from anything else. This is your time to howl. Don't fall into the trap of "keeping busy". Sure that may help the time to go by faster, but that's not going to bring you any enjoyment. Make sure you're actively engaged in what you're spending your time on. If you're just going through the motions, you're not going to find any real satisfaction. If you're really having a hard time finding something meaningful, consider volunteer work. You will be welcomed with open arms.

Now What???

Most people only plan for their 'working life,' the years including education for a career, setting professional goals, having a family, but retirement demands just as much planning, if not more, than a career. Every stage in a person or couple's lives should be addressed and you should try to gain the optimal satisfaction from each stage.

In most cases, preparation for retirement should not start later than age 59 for a woman and between 62 and 64 for a man. In today's advanced society, people are beginning to live longer, and following retirement at these ideal ages, they may have 20 to 25 vibrant years left...so don't put all that time to waste.

There are countless options for what you want to do with your retirement. It can act as a continuation of your 'old' life; you can work on or finish projects there was never time for before. I can also be perceived as a whole new life-much more enjoyable than the old skin you shed. If you want to do this, you have to set some goals for yourselves:

Do you want to...?

-Obtain a degree you never completed or started before?
-Join a club...from chess to hiking?
-Travel to new countries or even states?
-Learn ballroom dancing with your partner?
-Learn to play an instrument...the guitar or piano?
-Volunteer at a charity organization?
-Become more involved in your church?
-Take an art or ceramics class?
-Start a new business?

Make sure to do something that you're passionate about. You are finally free to be yourself. You might have followed in your parents' footsteps when you were younger. Now you are ripe, and know exactly what interests you and don't need to follow other people's dreams.

Associate with other people your age who have similar interests as you and your spouse. Start a small group that meets weekly for lunch or Bible study. You've got plenty of time, so have a few set appointments that you want to attend...an aerobics class twice a week and a sewing class. This will give you something to look forward to and will probably give you some 'homework' to occupy your time during the week. The best part is...you don't have to worry about getting a grade on that work!

Money-Saving Tips for a Smoother Retirement

Everyone is looking for ways to save a few bucks...here are a few ways to save when it comes to retirement.

Review your life insurance needs. The main reason to buy life insurance is to provide income for anyone who is dependent on you such as children or a spouse. If your kids are grown or you are divorced, you may want to reconsider making payments. You can also think about how much coverage you need.

Drive your car longer. Hold onto your car even after you have paid it off. There seems to be a desire to buy a new car for three or four years after you pay the loan off. Don't give in! Drive the car for at least three or four years after the loan is paid off, but continue to make the monthly payments (which you have in your budget), to yourself. For instance, if your loan payment is $350 monthly, place that money into a savings account. That money will add up, especially if you keep it invested.

The average interest rate for a credit card today is 15 percent. If you are running a credit card balance and paying a high interest rate, cutting your rate, or getting the balance down will really save you some money. That money you can use to pay off your mortgage or invest for retirement.

Try to raise your Home and Car Insurance deductibles. You can reduce your annual premiums by 20 percent or so if you boost the deductibles. If you happen to have a low deductible and make a lot of claims, chances are pretty good your insurer will either boost your premium cost at your next renewal, to "get back" the money they paid out to you, or, even worse, they can choose to cancel your coverage. The bottom line is that you only want to make insurance claims for big-ticket problems. So boost those $250 and $500 deductibles to at least $1,000. If you have an old car, you should also look into whether you still need collision coverage. There's no need to pay for it if your car's market value - what your insurer would pay you should your car gets totaled - doesn't amount to much minus the deductible.

Hobbies for Newly Retired

Did you collect trains, Barbie dolls, or baseball cards when you were younger? Did you enjoy playing football, riding horses, or building model cars? While growing up it seems like people are always asking you about your hobbies. Well, hobbies are not just for kids!

What kinds of activities have you always wished you'd participated in, but just didn't have the time or opportunity? Think you might want to try your hand at writing? You don't have to be a master wordsmith - write out stories for your family or your memoirs. Your children will enjoy these tales for years to come!

Ever wanted to draw or try your hand at watercolor? Develop the artist within at your local craft shop. They often offer fun beginner classes for all ages.

Walking is a great hobby and a way to get your exercise in for the day. Grab a friend and persuade him or her to join you. If the weather is bad, head to the local shopping mall. Most malls allow walkers to use their building. If you take up this hobby, just make sure that you invest in a good pair of walking shoes to support your feet and ankles.

Worry no longer about maintaining your mental capabilities - grab a good book and start a book club with your friends. (Oprah would be proud!) This provides a great social and mental workout! Most communities have a public library that offers book clubs if you don't want to start your own.

Volunteering is another great way to spend your extra time. This will allow you to help others out and make you feel good about doing something to improve one's life. Check with a local hospital, library, school or senior citizens home. They are always looking for volunteers to help out.

Gardening allows you to reap the benefits of the great outdoors, stay close to home and keep you fit! Tending to flowers and vegetables also relaxes you. The reaching and bending improves your flexibility. No wonder so many folks declare that there's no better way to spend one's time than in a garden!

Scrapbooking is all the rage these days. This is a hobby that the whole family can enjoy. Take those photographs that you have in boxes and turn them into a beautiful presentation. While going through pictures you'll think of stories to tell that will live on for generations to come.

Whatever you decide to try, always believe in yourself and in your abilities. Many of the world's most success individuals gained their success after retirement age. There's no stopping you! Enjoy every new day!

How to Afford a Second Home

Today, many Americans have the dream of having a home away from home. Last year, thanks to the aging baby boomers and tax code changes, second home sales made up almost a quarter of the residential real estate market.

The big question is "How can I afford a second home?" Downsizing is popular right now for baby boomers. With a pocket full of cash equity, many are selling their larger homes and purchasing a smaller home and a vacation house or investing in rental property. In 2004, almost 1/3 of residential property buyers who financed were using money from the sale of a primary residence, according to a survey by the National Association of Realtors.

Today the larger down payments and higher interest rates have been erased thanks to competition. Some lenders may still charge a little because of the risk in a home that is not constantly monitored by the owner. Of course, when financing a second home, you must make enough income to cover both of your principal residence and your vacation house.

Listed below are some tips for financing a second home:

* Identify your primary goal. Why do you want a second home?

* Apply for financing in the town where you are looking to buy. Bankers may give better terms because of the market.

* Caution: You will be paying two of everything! Budget wisely!

* Don't hurt yourself financially. Remember the reason you are purchasing a second home is for relaxation. You do not need money troubles to stress you out.

* Carefully check out Internet loan sites.

Many people will purchase a vacation home together with family or friends. A big issue here would be the availability of the house. There are many ways to divide the time up, so don't let that be a big influence on whether to purchase your dream home. The important thing is to make sure you put everything on paper. Make contracts to cover the finances, maintenance and even how the house will be shared. Set up a calendar and mark everyone's vacation time down, therefore you won't have surprise visitors.

With a little extra planning, your dream of a home away from home can become reality!