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Can Adding a Pool Increase Your Home Value?

On scorching hot days, there’s nothing like taking a dip in a swimming pool. In some areas of the country, a swimming pool is close to a necessity. In fact, there are 10.6 million swimming pools across the U.S., with 3,000,000 of those in California alone. From in-ground to above-ground, chlorine to saltwater, there are numerous styles, sizes, and prices of swimming pools. And while having a swimming pool just steps from your back door may sound appealing, is it really a good economical choice and does it increase your home’s value? There are a lot of factors to consider before adding a swimming pool, or even before buying a home with an existing swimming pool.

installing a pool at homeinstalling a pool at home

The Cost To Install

While having a pool sounds like a great way to be the life of the party when hosting friends and family during warm months, it can be pricey. And as with most large purchases many people finance the addition. The average cost to build an inground swimming pool is $35,000, with most spending between $28,000 to $55,000 for the initial investment. Of course, the amount of site work, soil type, and additional finishes can greatly impact the cost of a swimming pool. For many, the equivalent of a new car is worth the enjoyment a swimming pool would bring.

The Cost To Maintain

The costs associated with maintaining a swimming vary based on location, size, and type. According to Michelle Sbabo, co-owner of Northwest Arkansas Pool and Spa, homeowners can “expect to spend a minimum of $500 per summer on chemicals and supplies – plus at least a couple of hours a week testing water, adjusting chemicals, brushing, vacuuming, cleaning filters, netting, and emptying skimmer and filter baskets.” Depending on the type of swimming pool, average annual maintenance costs can vary from $375 to over $2,750. When choosing the type of swimming pool, it’s important to inquire with a local pool maintenance company what to reasonably expect in annual maintenance costs.

Read: Tips for Selecting Above-ground Pool Equipment

The Cost To Open and Close A Pool

For some parts of the country, swimming pools can remain open year-round; however, in colder climates, homeowners must close swimming pools to prevent damage from cold weather. According to Sbabo, “Closing a pool will run $200-300 for a standard pool, more with complex equipment and plumbing. Opening a pool is roughly the same cost as closing – unless the pool is extremely green or dirty and requires more time and chemicals to clean up.”

pool at housepool at house

How Your Geographic Location Affects Your Investment

Michelle Sbabo of Northwest Arkansas Pool and Spa also explains that “The contents of source water also affect pool water care. In many parts of the country, for example, the water is very high in calcium and other minerals. This can cause scaling on pool surfaces and inside equipment, and water must be treated appropriately to minimize scale damage. Additionally, weather and environment greatly impact pool care. Pools in areas with a lot of rain or wind may need a greater range of chemicals to address contaminants that enter the pool. And certain plants and trees can cause maintenance issues.”

Read: Tips for Landscaping Around a Pool

How A Swimming Pool Affects Homeowner’s Insurance

Once a swimming pool is on a property, the chance for injury or death increases which is why homeowner’s insurance increases with a pool. According to Zack’s Investment Research, insurance companies typically require an increased liability coverage, sometimes up to half a million dollars, and some even encourage additional umbrella policies. There are ways to keep premiums at a reasonable rate by installing a locking gate around the pool, keeping the pool covered with a safety tarp, adding motion sensors to the pool, and even cameras surrounding the pool.

…But Will A Pool Add To Your Home’s Value?

One of the important things to remember: swimming pools aren’t for everyone. So just by the mere fact that a pool is on the property, there will be a group of potential home buyers that will not be interested. However, the bottom-line answer is: it depends. For some geographic areas (like Southern Florida or California), a swimming pool can certainly increase appeal- and value. However, in areas like Michigan or Northern states, they may have less desirability and the pool could appraise for less than the install price. However, a recent study by LendingTree shows that homes with a pool are valued at 54% higher than those without one.

Tips From The Expert

Michelle Sbabo, co-owner of Northwest Arkansas Pool and Spa offers a few tips for those thinking of adding a pool or buying a home with an existing pool.

  • Most home inspections don’t include the pool. If the buyer is new to pools, it’s a good idea to hire a pool pro to check the equipment and understand any potential expenses.
  • Contact a local pool maintenance company to teach you how to care for a pool. Many new pool owners greatly benefit from a “private pool lesson”.
  • Check into a Home Warranty that covers pool equipment. We have seen major equipment expenses covered by good warranty programs with only a small deductible out of pocket.


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Jennifer is an accidental house flipper turned Realtor and real estate investor. She is the voice behind the blog, Bachelorette Pad Flip. Over five years, Jennifer paid off $70,000 in student loan debt through real estate investing. She’s passionate about the power of real estate. She’s also passionate about southern cooking, good architecture, and thrift store treasure hunting. She calls Northwest Arkansas home with her cat Smokey, but she has a deep love affair with South Florida.

Source: homes.com

The ABCs of Multifamily Cash Flow

You hear the term all the time. After all, it’s an essential concept for apartment investors because it not only reflects the viability of your investment but also its value. 

But what really is cash flow? How do you compute it, and more importantly, how can you increase the cash flow of your multifamily property?

Cash flow is simply the money that moves in and out of your business. For apartments, the cash coming in is in the form of rent, and the cash flowing out is in the form of expenditures like property taxes and utilities. 

Cash flow – or lack of it — is one of the primary reasons businesses, or real estate investments,  fail. Without sufficient cash flow, you’ll run out of money. That’s why it’s essential that you have sufficient capital to not only purchase an apartment property but also sustain it in the event that cash flow fails to be what you projected – for example, if units turn over more often than you expect or rents decline. 

Here are some ways you can improve the cash flow of your apartment investment:

  • Increase rents. This is perhaps the fastest and easiest way to improve cash flow. Consider repositioning the property – investing some capital to improve the units and then bumping rents.
  • Reduce utility costs. Fix leaky shower heads and faucets, which waste water. Install energy-efficient appliances and lighting fixtures. 
  • Decrease expenses. Renegotiate your property management contract, or put it out to bid at the end of the term. Use free rental property listing sites rather than paying a broker to rent apartments.
  • Encourage residents to stay. Moveouts are expensive, so when tenants renew their leases you’ll save time and money on prepping the unit.
  • Add additional streams of revenue, such as pet deposits and rent, garage rentals, vending machines or valet trash. 

Source: century21.com

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I Live For Home Decor, Here Are 30 Fashion-Girl Approved Items I’m Eyeing – Who What Wear

Back when I was commuting to NYC, I paid attention to my room decor, but not nearly as much as I do now where I’m quite literally in my house 99.9% of the time. I think many can agree with me, as I’ve seen girls all over Instagram taking 2020 as an opportunity to completely refresh their space and make it not just more appealing, but cozy as well. You could say I went down a rabbit-hole of home decor, continuously refreshing the #homedecor page on TikTok and adding to my Pinterest board with mid-century modern inspiration. After creating an idea of what I wanted to add to my space, the product search began. Luckily for you, part of my job includes sharing those findings, so that’s exactly what I’m going to do. 

Ahead, you’ll find 30 decor items that’ll add a special touch to any space you put them in. There’s plenty of fashion-girl approved items to choose from, like unique shaped vases, chic candles, and even pots that will take your house plants to a new level. Most of these items may be small, but they’ll still be sure to leave a big smile on your face as you go throughout your day. 

Source: whowhatwear.com

A great presentation: 6 easy tips for staging your own home

There’s no question that staging your décor is advantageous when you’re trying to sell your home.

The strategic editing and placement of your furnishings can be enormously important to boosting its appeal. In a recent NAR survey, in fact, 77 percent of buyers’ agents agreed staging is important to helping potential buyers envision a given home as their own. Fortunately, conducting your own staging need not be complex; you should be able to mimic professional techniques by following a few easy guidelines:

  • Prioritize by room. The NAR reports you’ll get the most visual impact by staging your living room, primary bedrooms, kitchen and extra bedrooms(s), in that order.
  • De-clutter. Cleaning will be easier after you pack away at least 90 percent of your own décor and personal artifacts. Your goal is to create a minimally decorated space buyers can imagine moving in to.
  • Deep clean. Everything must be groomed, sparkling and odor-free inside and out.
  • Divide and conquer. Plan to remove about half your furniture to give the impression of optimal space. If it’s all unpresentable, use stylish rental pieces or fake “pop-up furniture” for showings. Tip: Wherever possible, move display furniture away from walls (a technique known as “floating”) to create groupings that are tied together visually with area rugs.
  • Accessorize inside and out. Create an atmosphere of airiness, friendliness and cheer by selectively adding new flowers, potted plants, attractive seating and welcome mats outside, perhaps fresh flowers and bowls of fruit inside.
  • Optimize light. Add brighter light bulbs, pull back curtains, clean windows and clean (or perhaps update) light fixtures to add to the overall impression of positivity.

Source: century21.com

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Buying A Second Home? 8 Things To Consider

Buying a second home is a major expense. You might have several reasons for wanting to buy a second house. Perhaps, you’re buying a second home for vacations or weekend getaways. Or, it might be that you want to use it as a rental property for rental income. However, there are things to consider before buying a second home.

The benefits of buying a second home

If you’re buying a second home for rental income, you’ll benefit from many perks, especially tax advantages.

For example, you will be able to deduct interest, property taxes, homeowners insurance and other expenses against the property’s income.

Even if the value of the property declines, you will still be able to deduct depreciation from your taxes.

While these benefits are great, the mortgage requirements for a second home are much stricter than for a mortgage on your primary residence. So, make sure you can afford it.

8 Things To Consider When Buying A Second Home

1. Financing options: When you bought your first home, you had available to you what’s called an FHA loan – a government loan program.

FHA loans are an appealing and favorite choice among first time home buyers due to their relatively low down payment requirement.

FHA loans require a 3.5% down payment and a relatively low credit score of 580. However, FHA loans are not available to second home buyers.

That is because FHA requires the home to be the borrower’s primary residence. So, if you’re thinking of buying a second home, you will need to either use a conventional loan or financing it with your own cash.

2. A larger down payment: If you’re using a conventional loan for your second home, you will need to come up with a larger down payment.

Lenders for a conventional loan usually requires a 20% down payment of the home purchase price.

But for a second home which will be used as a rental property or vacation home, expect lenders to ask for 30% or even 35%.

3. A higher credit score. For an FHA loan, you only need a credit score of 580 to qualify. But for a conventional loan on a second home, you will need much higher credit score — usually 750 or higher.

4. Expect a Higher Interest Rate: Lenders will likely charge you a higher interest rate on your second home than your primary residence.

The reason is because they see a second home — be it a vacation home or a rental property — as riskier. They feel that you are more likely to default on a mortgage on your second home than on your primary residence.

5. Do your research: Just as you did your homework when you bought your place to live in, buying a second home is no different.

In fact, you’ll need to spend more time researching rental property. That means researching the neighborhood you will want to invest in, knowing the zoning laws for a particular area, the sales price for the homes in the area.

You will need to know if the area has adequate public transportation, schools, grocery shopping, etc,– things that potential tenants will need.

6. Be prepared to be a landlord: if you’re buying a second home to rent, be prepared to be a landlord.

And be prepared to deal with all of the headaches that come with being a landlord. Do you have sufficient time? Can you deal with problems?

Owning a rental property and being a landlord is time consuming. It is also hard hard work and you have to do your due diligence.

You can hire a property manager to run the property for you. But if that is not feasible, you’ll have to do it yourself.

That means, screening new tenants, collecting rent, dealing with delinquent tenants, fixing problems in the property, such as a broken pipe.

So before buying a second home, make sure you have sufficient time and make sure you can deal with the day-to-day headaches that come with being a landlord.

7. Do you have a stable income? Dealing with a second mortgage on your second home is doable.

While you may be able to afford upfront costs, if you don’t have a stable income, you may have to think twice about whether it is a good idea.

Plus, you still have to consider the additional expenses of owning a second home such as insurance, property taxes, maintenance, repairs, property management fees, etc.

8. Are you out of credit card debt? If you have paid off outstanding and high interest credit card debts, then purchasing a second home may make sense.

But if you’re still struggling to pay your debt, you may need to put buying a second home on hold. 

The bottom line

If you’re thinking about buying a second home, whether it is for investment or vacation, be prepared to save some money, budget for expenses, and come up with a bigger down payment.

More importantly, spend as much time, if not more, researching for the home just as you did when your purchased your primary home.

Speak with the Right Financial Advisor

  • If you have questions about your finances, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
  • Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

Source: growthrapidly.com

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8 Safe Investments for People Who Hate Risking Their Money

Think back to what the stock market looked like to you in March 2020, aka, the apocalypse. Did it look like:

A.) The biggest bargain sale you’ve ever seen in your lifetime? 

or

B.) A burning pit of money that was about to incinerate your life’s savings?

If you answered “B,” you probably have a low risk tolerance. You worry more about losing money than missing out on the opportunity to make more of it.

Being cautious about how you invest your money is a good thing. But if you’re so risk-averse that you avoid investing altogether, you’re putting your money at greater risk than you think.

Do Safe Investments Actually Exist?

When you think about the risks of investing, you probably think about losing principal, i.e., the original amount you invested. If you keep your money in a bank account, there’s virtually no chance of that happening because deposits of up to $250,000 are FDIC insured. 

But consider that the average savings account pays just 0.05% APY, while in 2019, inflation was about 2.3%.

So while you’re not at risk of losing principal, you still face purchasing power risk, which is the risk that your money loses value. Your money needs to earn enough to keep up with inflation to avoid losing purchasing power. If inflation continues at 2.3%, buying $100 worth of groceries will cost you $102.30 a year from now. If you’re saving over decades toward retirement, you’ll be able to buy a whole lot less groceries in your golden years.

There’s also the risk of missed opportunity. By playing it too safe, you’re unlikely to earn the returns you need to grow into a sufficient nest egg.

Though there’s no such thing as a risk-free investment, there are plenty of safe ways to invest your money.

8 Low-Risk Investments for People Who Hate Losing Money

Here are eight options that are good for conservative investors. (Spoiler: Gold, bitcoin and penny stocks did not make our list.

1. CDs

If you have cash you won’t need for a while, investing in a CD, or certificate of deposit, is a good way to earn more interest than you’d get with a regular bank account.

You get a fixed interest rate as long as you don’t withdraw your money before the maturity date. Typically, the longer the duration, the higher the interest rate. 

Since they’re FDIC insured, CDs are among the safest investments in existence. But low risk translates to low rewards. Those low interest rates for borrowers translate to lower APYs for money we save at a bank. Even for five-year CDs, the best APYs are just over 1%.

You also risk losing your interest and even some principal if you need to withdraw money early.

2. Money Market Funds

Not to be confused with money market accounts, money market funds are actually mutual funds that invest in low-risk, short-term debts, such as CDs and U.S. Treasurys. (More on those shortly.)

The returns are often on par with CD interest rates. One advantage: It’s a liquid investment, which means you can cash out at any time. But because they aren’t FDIC insured, they can technically lose principal, though they’re considered extraordinarily safe.

3. Treasury Inflation Protected Securities (TIPS)

The U.S. government finances its debt by issuing Treasurys. When you buy Treasurys, you’re investing in bonds backed by the “full faith and credit of the U.S. government.” Unless the federal government defaults on its debt for the first time in history, investors get paid.

The price of that safety: pathetically low yields that often don’t keep up with inflation.

TIPS offer built-in inflation protection — as the name “Treasury Inflation Protected Securities” implies. Available in five-, 10- and 30-year increments, their principal is adjusted based on changes to the Consumer Price Index. The twice-a-year interest payments are adjusted accordingly, as well.

If your principal is $1,000 and the CPI showed inflation of 3%, your new principal is $1,030, and your interest payment is based on the adjusted amount. 

On the flip side, if there’s deflation, your principal is adjusted downward.

4. Municipal Bonds

Municipal bonds, or “munis,” are bonds issued by a state or local government. They’re popular with retirees because the income they generate is tax-free at the federal level. Sometimes when you buy muni bonds in your state, the state doesn’t tax them either.

There are two basic types of munis: General obligation bonds, which are issued for general public works projects, and revenue bonds, which are backed by specific projects, like a hospital or toll road.

General obligation bonds have the lowest risk because the issuing government pledges to raise taxes if necessary to make sure bondholders get paid. With revenue bonds, bondholders get paid from the income generated by the project, so there’s a higher risk of default.

5. Investment-Grade Bonds

Bonds issued by corporations are inherently riskier than bonds issued by governments, because even a stable corporation is at higher risk of defaulting on its debt. But you can mitigate the risks by choosing investment-grade bonds, which are issued by corporations with good to excellent credit ratings.

Because investment-grade bonds are low risk, the yields are low compared to higher-risk “junk bonds.” That’s because corporations with low credit ratings have to pay investors more to compensate them for the extra risk.

6. Target-Date Funds

When you compare bonds vs. stocks, bonds are generally safer, while stocks offer more growth. That’s why as a general rule, your retirement portfolio starts out mostly invested in stocks and then gradually allocates more to bonds.

Target-date funds make that reallocation automatic. They’re commonly found in 401(k)s, IRAs and 529 plans. You choose the date that’s closest to the year you plan to retire or send your child to college. Then the fund gradually shifts more toward safer investments, like bonds and money market funds as that date gets nearer.

7. Total Market ETFs

While having a small percentage of your money in super low-risk investments like CDs,

money market funds and Treasurys is OK, there really is no avoiding the stock market if

you want your money to grow.

If you’re playing day trader, the stock market is a risky place. But when you’re committed to investing in stocks for the long haul, you’re way less exposed to risk. While downturns can cause you to lose money in the short term, the stock market historically ticks upward over time.

A total stock market exchange-traded fund will invest you in hundreds or thousands of companies. Usually, they reflect the makeup of a major stock index, like the Wilshire 5000. If the stock market is up 5%, you’d expect your investment to be up by roughly the same amount. Same goes for if the market drops 5%.

By investing in a huge range of companies, you get an instantly diversified portfolio, which is far less risky than picking your own stocks.

8. Dividend Stocks

If you opt to invest in individual companies, sticking with dividend-paying stock is a smart move. When a company’s board of directors votes to approve a dividend, they’re redistributing part of the profit back to investors.

Dividends are commonly offered by companies that are stable and have a track record of earning a profit. Younger companies are less likely to offer a dividend because they need to reinvest their profits. They have more growth potential, but they’re also a higher risk because they’re less-established.

The best part: Many companies allow shareholders to automatically reinvest their dividends, which means even more compound returns.

Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to [email protected]

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Source: thepennyhoarder.com

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Why Refinance Rates Are Higher Than Purchase Loan Rates

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Understanding Long-Term Care Insurance

  • Health Insurance

A lot of us don’t like to think about this, but inevitably there will come a time where we will all need help taking care of ourselves. So how can we start preparing for this financially?

Find the Right Health Insurance for You!

Attention: Still Open During the Financial Crisis…

Tip: Act now to see if you qualify for lower rates!

Compare free personalized quotes from the nation’s top providers.

Many people opt to purchase long-term care insurance in advance as a way to prepare for their golden years. Long-term care insurance includes services relating to day-to-day activities such as help with taking baths, getting dressed and getting around the house. Most long-term care insurance policies will front the fees for this type of care if you are suffering from a chronic illness, injury or disability, like Alzheimer’s disease, for example. 

If this is something you think you’ll need later on, it’s crucial that you don’t wait until you’re sick to apply. If you apply for long-term care insurance after becoming ill or disabled, you will not qualify. Most people apply around the ages of 50-60 years old. 

In this article, we will discuss long-term care insurance, how it works and why you might consider getting it.   

How long-term care insurance works

The process of applying for long-term care insurance is pretty straight forward. Generally, you will have to fill out an application and then you’ll have to answer a series of questions about your health. During this point in the process, you may or may not have to submit medical records or other documents proving the status of your health. 

With most long-term care policies, you will get to choose between different plans depending on the amount of coverage you want. 

Many long-term care policies will deem you eligible for benefits once you are unable to do certain activities on your own. These activities are called “activities of daily living” or ADLs:

  • Bathing
  • Incontinence assistance
  • Dressing
  • Eating
  • Getting off and/or on the toilet
  • Getting in and out of a bed or other furniture

In most cases, you must be incapable of performing at least two of these activities on your own in order to qualify for long-term care. When it’s time for you to start receiving care, you will need to file a claim. Your insurer will review your application, records and make contact with your doctor to find out more about your condition. In some cases, the insurer will send a nurse to evaluate you before your claim gets approved. 

It’s very common for insurers to require an “elimination period” before they start reimbursing you for your care. What this means is that after you have been approved for benefits and started receiving regular care, you will need to pay out of pocket for your treatments for a period of anywhere from 30-90 days. After this period, you will get reimbursed for your out-of-pocket expenses and from there.

Who should consider long-term care insurance

Unfortunately, the statistics are against our odds when it comes to whether or not we will eventually need some type of long-term care. Approximately half of people in the U.S. at the age of 65 will eventually acquire a disability where they will need to receive long-term care insurance.  Of course, the problem is, long-term care can be really expensive. Unless you have insurance, you’ll be paying for your long-term care completely out-of-pocket should you ever need it.

Your standard health insurance plan, including Medicare, will not cover your long-term care. The benefits of buying long-term care insurance are that:

  • You can hold on to your savings: Many uninsured seniors have to dip into their savings account in order to pay for their long-term care. Because it’s not cheap, many of them drain their life savings just to be able to pay for it.
  • You’ll be able to choose from a larger variety of options: Being insured gives you the benefit of being able to choose the quality of care that you prefer. Just like with anything else, you get what you pay for when it comes to healthcare. Medicaid offers some help with long-term care, but you’ll end up in a government-funded nursing home. 

How to buy long-term care insurance

If you’ve recently started thinking about shopping for long term-care insurance, you’ll want to keep a few things in mind:

  • Do you mind being insured on a policy with an elimination period?
  • Can you afford all of the costs including living adjustments?
  • Are you interested in a policy that covers both you and your spouse, otherwise known as “shared care”?

There are a few different ways to go about getting long-term care benefits. You can either buy a policy from an insurance broker, an individual insurance company, or in some cases, your employer. Obtaining long-term care insurance through your employer is probably going to be cheaper than getting it as an individual. Ask your employer if it’s included in your benefits. 

Many people also opt to shop for hybrid benefits insurance policies. This is when a long-term care policy is packaged in with a standard life insurance policy. This is becoming a lot more common in the world of insurance. Keep in mind that the approval process may be slightly different for a hybrid insurance policy than of that of a stand-alone long-term care insurance policy. Make sure to ask about the requirements before you apply. 

Best long-term care insurance packages

There are not very many long-term care insurance companies that exist as there once was. It’s hard to wrap our heads around purchasing something that we don’t yet need. However, here are a few examples of companies that offer competitive long-term care packages:

  • Mutual of Omaha: This company offers benefits of anywhere between $1,500 and $10,000. While the main disadvantage of this company’s packages is that they do not cover doctor’s charges, transportation, personal expense, lab charges, or prescriptions, you CAN choose to receive cash benefits instead of reimbursements. This company also offers discounts for things like good health and marital status. This company’s insurance policies offer a wide range of options and add-ons so you can make sure that all your bases are covered.
  • Transamerica: This company’s long-term policy, TransCare III, is good if you don’t want to hassle with an elimination period. If you live in California, this may not be the best choice for you because California’s rates are a lot higher than the rates in other states. Your maximum daily benefit can be up to $500 with this program, with a total of anywhere between $18,250-$1,095,000. 
  • MassMutual: Popular for their SignatureCare 500 policy which comes in both base and comprehensive packages, is a long-term care and life insurance hybrid. This is very appealing to many seniors wanting to kill two birds with one stone. This company also has a 6-year period as one of their term options, which is pretty high.
  • Nationwide: This program sets itself apart from many other programs available because it allows you to have informal caregivers like family, friends, or neighbors. You will receive your entire cash benefit every month and it is up to you to disperse the funds as you would like. Currently, this company does not have their pricing available online, so you will need to speak with an agent to discuss prices.

Source: pocketyourdollars.com

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8 Surprising Things No One Tells You About Retirement

Surprised retiree
cheapbooks / Shutterstock.com

Most of us spend decades working and dreaming of a day when we can retire. But when we finally arrive at our post-work destination, it’s not unusual to find ourselves in a world of surprises.

Knowing what to expect in advance can help you prepare for — and adjust to — life in your golden years. The following are some key things no one tells you about before you retire.

Housing will remain your biggest expense

Senior couple at home
Monkey Business Images / Shutterstock.com

Many retirees dream of paying off their mortgage so they will be free to spend money on travel and other activities. But the reality is that housing likely will remain the biggest expense in your budget for as long as you live.

U.S. households led by someone age 65 or older spent an average of $17,472 on housing in 2019, as we detail in “Here’s How Much Retiree Households Spend in a Year.” That is easily more than these households spent in any other expense category.

Work will not end — it will simply change

older worker
michaeljung / Shutterstock.com

You will probably work in retirement — and not just because you have to. More than 70% of people say they want to work during retirement, according to the findings of “Work in Retirement: Myths and Motivations,” a joint study by Merrill Lynch and Age Wave.

As you age, chances are good that the nature of work will change, though. The study found that 3 in 5 retirees plan to launch a new line of work that differs from what they have done in the past. Working retirees also are three times more likely than pre-retirees to own their own business.

If you’ve never volunteered before, you won’t start in retirement

Senior volunteer
Rawpixel.com / Shutterstock.com

About 90% of Americans say they would like to do volunteer service for someone or some cause that needs their help, but just 25% actually do so, according to the Stanford Center on Longevity.

When asked why they don’t follow through on the wish to help, Americans most commonly cite a lack of free time. Yet, retirees — with plenty of time on their hands — do not volunteer at rates that are any higher than those of workers.

And among people who did not volunteer during their working years, just one-third finally begin volunteering during retirement.

Retirement can be especially lonely for single men

Sad senior man
YAKOBCHUK VIACHESLAV / Shutterstock.com

In some ways, retirement is more challenging for women. Because they live longer than men, they will have to stretch the funds from their nest eggs over a longer period. To make matters worse, women generally start with less in retirement savings than men do.

But women who are single have one big advantage over their male counterparts: They are less likely to be lonely.

Just 48% of retired men who live alone say they are very satisfied with the number of friends they have, according to an analysis of Pew Research Center survey findings.

However, a robust 71% of women who live alone are satisfied with the number of friends they have.

Health issues likely will catch you by surprise

Lisa F. Young / Shutterstock.com

Slightly more than one-third of retirees say health problems have put a damper on their retirement years, according to a survey from the Nationwide Retirement Institute. And 75% of those folks say their health problems emerged sooner in life than they expected.

To make matters worse, about one-quarter say health-related expenses keep them from living the retirement of their dreams. Such sobering numbers underscore why many people planning for retirement would benefit from opening a health savings account and stashing as much cash as possible into that HSA.

As you grow older, you will feel younger

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Everyone has heard the cliche: “You’re only as old as you feel.”

If that is true, here is some good news for retirees: Paradoxically, the older people get, the younger they are likely to feel, according to “Growing Old in America: Expectations vs. Reality,” a paper from the Pew Research Center.

For example, among people ages 18-29, about half say they feel their age, one-quarter feel older than their age and another one-quarter feel younger.

However, among those 65 and older, 60% say they feel younger than their age and 32% say they feel exactly their age. Just a scant 3% say they feel older than their age.

Your early golden years might not gleam as you had hoped

Unhappy senior woman
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Nearly one-third of recent retirees — 28% — say life is worse in retirement than it was during their working years, according to the Nationwide Retirement Institute survey.

What is the source of this gloom and doom? Money — or lack thereof.

Among those who lament post-work life, 78% cite a lack of income and 76% cite a high cost of living as the top factors in giving them the blues during their golden years.

The message to future retirees is obvious: Save early, save often and keep saving. For more tips, check out “9 Ways to Rescue Your Retirement in 2020.”

Initial disappointment will give way to later satisfaction

Happy senior couple
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If you are among those disappointed with retirement, take heart: As with so many things, retirement is what you make it. You can take steps to boost your overall satisfaction with life during your golden years.

For example, researchers at the University of Exeter in the United Kingdom found that people who volunteer are less likely to be depressed and more likely to be satisfied with life. There is even evidence that volunteers live longer.

So, if retirement has got you down, stop gazing at your navel and start looking outward at ways to help others.

A lot of other research has found that a happy marriage and spending time with close family and friends can greatly boost retirement satisfaction.

Even if you don’t take steps to make yourself happy, you might just end up feeling joyous anyway. The Pew Research Center found that 45% of adults 75 and older believe life has turned out better than they expected.

Just 5% say it has turned out worse.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

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Simple, Achievable New Year’s Resolutions That Will Make You Richer

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Losing weight, exercising more, spending less, paying down debt: all common New Year’s resolutions many make, but few stick to.

Changing the habits of a lifetime isn’t easy. But using a few simple tools makes it a lot more likely.

In this week’s “Money!” podcast, we’re going to explore some wealth-creating New Year’s resolutions, and more importantly, we’re going to talk about some ways to get on track and stay there. Who knows? This could be the year you finally build that emergency fund, plan for a successful retirement, destroy that debt or otherwise make yourself wealthier. And just maybe you’ll find that by doing it right, you’ll gain without pain!

As usual, my co-host will be financial journalist Miranda Marquit.

Sit back, relax and listen to this week’s “Money!” podcast:

Not familiar with podcasts?

A podcast is basically a radio show you can listen to anytime, either by downloading it to your smartphone or other device, or by listening online.

They’re totally free. They can be any length (ours are typically about a half-hour), feature any number of people and cover any topic you can possibly think of. You can listen at home, in the car, while jogging or, if you’re like me, when riding your bike.

You can listen to our latest podcasts here or download them to your phone from any number of places, including Apple, Spotify, RadioPublic, Stitcher and RSS.

If you haven’t listened to a podcast yet, give it a try, then subscribe to ours. You’ll be glad you did!

Show notes

Want more information? Check out these resources:

About me

I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

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