Retirement 101

The Cost of Cremation Compared to a Funeral

Guest Poster — Fri, 21 Oct 2011 14:13:07 +0000

The cost of cremation is one of the reasons that the cremation process has become more widely used in recent years. For example, in Minnesota, cremation has more than doubled in the last 20 years, growing from 18.6% in 1992 to over 46% in 2009.

Some of the reasons that it is less expensive are simple to explain. Many of the people that have the body cremated are looking for a simpler form of burial service. If you work directly with the crematorium, it is more likely to be less expensive than if you are working with a funeral home.

If you do not have the body buried, you will not have to pay for the cost of a much more expensive casket, burial service, and the land used in the cemetery for burial. You will most likely still need to have a container for the cremation itself, but depending on state laws, it can be as simple as a corrugated box, costing as little as $95. Caskets used for burial can range up to $35,000.

Even if you do opt to have the ashes buried, a plot at the columbarium, an area used for burial of remains from cremation, will be much smaller and less expensive.

Many people decide to keep the ashes in an urn after cremation or to scatter the ashes in a special place. A temporary urn, consisting of a plastic box with a clasp, or something similar, is usually provided to the family after cremation from the crematorium. If you want something more permanent to store the ashes in for the family, an urn can cost as little as $65 or as much as $1500 if you want to spend that much.

Another cost associated with the traditional burial that can be avoided is the cost of embalming the body, which can usually run from $700 to $1000. Even if the body is to be viewed before cremation, embalming can be replaced by refrigeration storage.

Many state laws governing the cremation process have been enacted to protect the consumer. It is helpful to familiarize yourself with the laws in your state and to write down your wishes ahead of time for your family. Much of the cost associated with the funeral process itself can be avoided if decisions are not being made at a time of great stress and have already been made by the family members ahead of time.

Low Risk Investments Offering Guaranteed Returns

Guest Poster — Thu, 24 Mar 2011 05:54:04 +0000

If you are somewhat hesitant about investing, you are not alone. Since the market has been slow to recover, many people are interested in pursuing low risk investments offering guaranteed returns. Because people may have limited funds to invest, they may be seeking investments with no or low minimum initial investment requirements, or those with short-term investment commitments. Some of the best solutions to these types of investment needs can be found at a local bank or credit union.

Certificates of Deposit, High-Yield Savings Accounts, Money Market Accounts Certificates are some of the subtitles investors should be researching. Be sure to pay attention to three main areas the amount you plan to invest, the rate your investment amount will yield, and the minimum term of the investment. Typically speaking, the higher the amount you invest for the longer investment term will yield the highest return rate. This is not always true, as many banks can credit unions offer promotional rates and investment options.

Rates change on a daily basis, so once you are satisfied with your findings, get to the bank as soon as possible to transfer money. Moreover, some online banking options allow you to open investment accounts online, allowing for immediate transfer. A paper receipt will usually be mailed within a week confirming your investments rate, amount and duration.

Remember, even if you are interested in investing at your bank or credit union, they may not be offering the best rates. Therefore, it is perfectly acceptable to take your money from one financial institution and transfer it to another. Always make sure before you transfer the bank is a member of the FDIC or the credit union is a member of NCUA. This way, you money is just as safe as if it were deposited in your own bank or credit union.

More information about high yield mutual funds can be retrieved at the author’s website.

Pitfalls of Purchasing Property Abroad – Retirement Tips

Guest Poster — Wed, 23 Mar 2011 18:30:09 +0000

For those who love to travel and need to extend their retirement funds, moving to foreign country is a great way to see the world and live like royalty on a modest budget. When it comes to emigrating to Cyprus, for example, one of the biggest headaches is finding out how to purchase a property in your new country. It can mean dodging some general pitfalls and investing a huge chunk of your hard earned money, but the end result however can make it all worth it.

A post-retirement home is a once in lifetime investment for most of us, so ensuring that you invest your money wisely is extremely important. When it comes to purchasing real estate outside of your country, familiarizing yourself with its many rules can help potential homeowners secure their investment.

Real Estate Fluctuates

As any real estate investor should know, real estate values fluctuate from time to time. And this piece of information can prove to be very useful if you are looking to invest in an overseas property. Sales agents have a way of honey coating even the most depressing situations. Avoid falling for these sales pitch by arming yourself with the right knowledge beforehand. This will help you understand the best time to buy a property, as well as how much harder you can negotiate for a lower price. Keep in mind that this only works when you gives yourself several months, if not years, to pick your prime location.

Varying Legal Procedures

As you are setting sail to lesser known territories, it is wise to keep track of how their legal processes work when it comes to purchasing real estate. Each country uses different guidelines that can make purchasing a home quick and easy or hopelessly complicated. Allot the right amount of time for due legal diligence, so you can ensure that you are truly buying the property from the owner and meeting all legal requirements to own a home in that part of the world. Local attorneys are your greatest asset in these circumstances.

Unsteady Exchange Rates

Other than fluctuating real estate values, you as an investor also need to look into the value of your dollar or euro. As these variables are dependent on a number of factors, they can easily go up or down, which can be the difference between a great purchase when you money is strong, versus reduced buying power for a slumping exchange rate. It is best to set your budget with a good enough buffer to leave room for adjustments and fluctuations. This helps to ensure that no matter the situation, you always have enough money saved in the bank to manage the problem.

Your dream of owning a home outside your country may be at hand, but seeing that each step is taken with careful thought assures you that you will be able to spend the remainder of your days relaxed in your home and not falling prey to a real estate trap.

Why Are More US Retirees Choosing Panama?

Guest Poster — Wed, 16 Mar 2011 22:14:09 +0000

In this article we explore some of the main reasons why Panama continues to attract large numbers of US retirees. The country is often featured on lists setting out the “Top Places To Retire Overseas” and the “Best Retirement Havens” compiled by organizations such as Pathfinder International and International living. Let’s find out why:

The Panamanian government has been rolling out the welcome mat for retirees for several years now. Retirees are not taxed on world income and the retirement incentive program is generously packed with a whole host of benefits and incentives.
The capital, Panama City, is a world-class business and banking hub that’s unrivaled in Central America. This together with its US dollar economy and strong GDP growth rates gives the country a sense of stability. A factor that’s highly prized by both retirees and real estate investors alike.
Panama offers top-quality health-care facilities and affordable private health insurance.
A whole series of infrastructure improvements are currently underway. The airports in both Panama City and David are being expanded and new roads are under construction in key tourism regions such as Boquete and the Azuero Peninsula. And that’s not to mention the expansion of the Panama Canal.
The country offers a wide variety of lifestyle options to choose from. It borders both the Caribbean and the Pacific, but also offers cooler weather in it’s interior mountain regions.
The country has great surf, fantastic deep sea fishing as well as some world-class dive spots.
The property market in Panama is still highly affordable, especially away from the capital city. In fact a study by RevealRealEstate.com indicates that Panama and Nicaragua are the two most affordable options in the region. Property prices in Panama are lower than in Costa Rica and Belize for example. See more on the Panama real estate market here, and details on Nicaragua real estate, here.
Like elsewhere in Central America, it is possible to live a life of luxury and spend far less than you would back at home. Much of this comes down to low labor costs. A full-time maid for example will only set you back around $150 a month.

Why a Roth IRA is better than a Traditional IRA

Guest Poster — Tue, 18 Jan 2011 20:52:06 +0000

Investing for retirement is a very important step toward financial freedom, and eventually, retirement. Some individuals are fortunate enough to have a good pension with a company or government agency they’ve worked with for years. Others are unfortunate enough to rely on social security or never retire. If doesn’t matter if you have an amazing pension or no retirement funds at all, having a tax-advantage investment account is a great move.

What is a Roth IRA?

There are several tax-advantage savings accounts available including the 401k, Roth IRA, and Traditional IRA. A Roth IRA has taxed contributions. This means that any money you put into your Roth IRA now is after-tax money. The benefit comes later with your Roth IRA withdrawal during retirement. You don’t have to pay any taxes on withdrawals, even on the earnings.

A Traditional IRA lets you contribute money tax free now, but you have to pay taxes later on. The benefit to paying taxes later may not come to everyone. It will take a little bit of guess work for your future. If you think you’ll be in a higher tax bracket later, it will benefit you. If you can earn a lot, you’ll have a lot more earnings that go tax free. Then again, there’s always the chance we’ll have to pay more taxes in the future with higher tax brackets for everyone.

For most people, a Roth IRA is a better choice. Either way, if you choose a Roth or Traditional, taking advantage of such tax-advantage accounts is a really good move. You can save a lot of money that you will have ready when you retire. It could be extra money for fun vacations or money you need to support yourself in your later years. Open up an IRA account today and start contributing.