The do's and dont's of retirement

US-PDGov

By Phillip Bray

You will probably only ever retire once, it therefore makes sense to try and get as many of the financial decisions right as possible.

We help people make great financial decisions about their retirement every day of the week, helping our clients to secure their financial future and allowing them to enjoy everything that retirement holds. We’ve put this experience to good use and come up with some quick do’s and don’ts to help you have a financially successful retirement.

Do

Shop around for the best annuity rate. An FSA survey in 2010 found that only 40 percent of people shopped around for the best annuity rate, that means 60 percent of people probably could have got more income if they had made the effort to look.

Try and get an enhanced annuity. An enhanced annuity will give you a higher income if you have medical problems or lifestyle issues such as smoking. Even relatively minor issues might count.

Think about other options. An annuity is only one option available to turn your pension fund into an income. Think about other options such as income drawdown, a fixed term annuity, an investment linked annuity or even flexible drawdown; an annuity isn’t right for everyone.

Spend your tax free cash wisely. You only get it once, enjoy it, be sensible with it, do whatever you choose, but remember once it’s gone you are no longer working so it will be hard to replace.

Take independent advice. You’ve probably never retired before, whereas most financial advisers have helped hundreds of people retire, take their advice and learn from their experiences.

Work your savings hard. If you have savings then shop around for the best possible interest rate, if you need to start to take an income consider moving to alternative accounts which pay interest out each month, and if you are a non-taxpayer in retirement tell your bank or building society to stop taxing the interest you receive.

Budget carefully. Your income is likely to drop substantially when you retire, make sure that your income will cover your outgoings, if it doesn’t, you will need to change something; spend less, work longer or take more risks with your pension to get a higher income.

Don’t

Buy the first annuity you are offered. Too many people buy the first annuity they see and don’t shop around. This is a massive mistake, probably the biggest you will ever make, always shop around to try and get a better rate, once you have bought an Annuity is can’t be changed, if you make a mistake it can’t be undone.

Take more risk than you need to. If you want a risk free simple solution, that will give you a guaranteed annuity for the rest of your life then an Annuity is probably right for you. Don’t get talked into considering other more risky options which you might regret at a later date.

Don’t use all of your pension fund to buy an annuity. Even if you don’t want, or need the 25 percent tax free lump sum, take it and buy a purchase life annuity (PLA). This type of Annuity is taxed less than a normal Annuity, which will mean you have a higher net income.

Don’t take biased advice. Always see an independent adviser; it’s the only way of knowing they are working on your behalf and able to look at every option.

Confusing time

Retirement can be a confusing time, there are big changes ahead, following our do’s and don’ts should help you avoid some of the biggest pitfalls out there, but beware of others, they are lurking for you around every corner!

About the author: Phillip Bray is a retirement expert and writes for Investment Sense helping people plan their retirement. From the first time they use a pension Annuity calculator to the first payment of their annuity, Phillip's articles will help you make the right decisions.

Financial news: 02/05/2013

• CNN Money: Americans lose 4% of their income to gas costs
• WP: Possibility of federal public WiFi disappoints telecom firms
• CNBC: Fed. policy is losing time as investor risk ↑ & ROA ↓
• MN: Bank earnings are crippled by monetary policy per analyst
• BBC: U.S. DoJ to sue S&P for faulty '07 MBS ratings
• AP: Monday DJIA selling reached .9%, it's worst day of '13
• Commerce Dept.: December factory orders ↑$8.6 bln. or 1.8% 
• Bloomberg: Judge rules Texas-school financing unconstitutional
• Zero Hedge: U.S. debt/GDP to reach 105% by 03/31 per Treasury
• BI: Fast food inheritance has created 30-yr old female billionaire
• Huff Post: Canadian penny goes the way of CDN $1& $2 bills
• NYT: U.K.'s exchequer advocates bank splitting regulation

3 reasons companies should change 401(k) providers

By John Horner

The 401(k) has evolved into one of the most popular retirement accounts in the market today. This type of retirement account is provided by employers as a benefit to their employees. If your company offers a 401(k), there are definitely a lot of providers out there to choose from. In some cases, it may be to your advantage to change to a different 401(k) provider. Here are three reasons that you might want to switch to a different 401(k) company.

High fees

One of the best reasons to switch to a new 401(k) company is due to high fees. All investment companies charge some kinds of fees, as this is how they make their money. While you should come to expect some fees, you don't want to give away too much of your retirement money. Retirement plan providers can charge for a number of different things. For example, they might charge an annual fee just for having an account. Some providers charge so much each time you buy or sell shares in your account. There are all kinds of fees that you could incur, and when a company realizes that it's paying too much, it's time to consider other options.

Limited investment options

Another reason that you might want to consider switching to another 401(k) provider is because it offers very limited investment options. Many 401(k) providers only offer a few mutual funds to put your money into. If you like to have more options, this type of account simply isn't going to cut it. Some brokers offer access to stocks, bonds, mutual funds, exchange-traded funds, and other investment opportunities. If you like to have variety in your investments and your employees appreciate it as well, it is time to switch to a new provider. Some providers keep their investment options in a very limited range, and it can be problematic to investors.

Poor service

If your 401(k) provider doesn't offer good customer service, it's time to look at another one. Generally, you can tell if your 401(k) is having issues if you get a lot of complaints and comments from your employees. They are usually the best ones to tell you if something is going on. They will be contacting the plan managers when they have questions, when they want to alter their portfolio allocation, and when they need to take out 401(k) loans. If they're having a lot of problems, this can reflect negatively on you as an employer in the long run. It can also hurt your chances of reaching your own goals with your retirement plan if you participate in it. Ideally, you should have a provider that offers great customer service and is always there to help you. Your retirement isn't something to toy with, and you should find someone who cares about it as much as you do.

Your 401(k) is one of the linchpins of a successful employee benefits package. Take the time to get it right even if it means that you're going to have to do a little bit of extra paperwork. Taking a little bit of additional time will be well worth the investment that you make. Just make sure that you do your homework in choosing your next provider.

About the author: Having worked in financial services for more than 14 years, John Horner has been able to provide many useful tips and facts about finances for his readers. John has also contributed to finding the best finance schools for others who would like to get a quality education to get started with their career in finance.

Image attribution: Tax Credits' photostream; CC BY 2.0

Financial news: 02/04/2013

• CNN: Stock supporting trends are reversing per ING strategist
• Option Queen: Markets are "grossly overbought", yet higher still
• MN: Economic data "rigged", U.S. on cusp of double-dip recession
• Bloomberg: Investors poured $64.8 bln into funds in three weeks
• CNBC: FexEx CEO says U.S. corporate tax system needs reform
• Zero Hedge: Federal income tax had its 100th birthday on Sunday
• Reuters: Regulatory pressure to raise banking capital transparency
• BI: Another wave of technological improvement will fuel growth
• Fox Business: The private sector has had no job growth in 10 yrs
• AP: Italy's Berlusconi promises property tax break upon re-election

Top ten list of cities to buy foreclosed homes

US-PDGov

By Allison K. Watkins

Are you looking for a home to buy at low price? If you are looking for such homes, then foreclosed homes would be best for you. You can easily buy a foreclosed home for much less than its original market price. Now if you are thinking that it’s hard to find foreclosed homes that are on sale, let me tell you that according to RealtyTrac’s latest foreclosure report, “Almost 19 percent of all homes have foreclosed in QE3 2012.” Talking about figures, there are 193,059 homes that are in foreclosure sale. To help you out, following is the list of cheapest foreclosed home cities.

1. Dayton, Ohio

Dayton city has the cheapest price of foreclosed homes throughout United States. The average foreclosure sale price in Dayton is $60,154. The foreclosure savings are 52.13 percent at an average. The number of homes listed for foreclosure sale in this city is 650.

2. Toledo, Ohio

Toledo is also listed as one of the cities with the cheapest foreclosed home price in U.S. The average foreclosure home price in this city is slightly higher than Dayton i.e. $64,072. The foreclosure saving in Toledo is 45.91 percent and, the number of homes that are listed in foreclosure sales is 569.

3. Cleveland-Elyria-Mentor, Ohio

Ohio also has the third most cheaply foreclosed home cities throughout U.S. In Cleveland-Elyria-and Mentor, the average foreclosure home price is $75,883. The foreclosure saving is 49.95. Altogether, there are 1406 homes listed for sale.

4. Memphis, Tennessee

Memphis, Tennessee is listed at number 4. The mean foreclosure price in Memphis is $82,186 and, the average foreclosure saving is 47.82 percent. There are 574 houses listed in foreclosure sale.

5. Harrisburg-Carlisle, Pennsylvania

Harrisburg and Carlisle are the two cities, holding the 5^th position in the list of cheapest foreclosed homes in third quarter 2012. The average foreclosure home price in these two cities is $88,681. The foreclosure saving in these cities is almost 47.82 percent and, there are very few houses that are listed on foreclosure sale. Talking about the actual figure, only 92 houses are listed on foreclosure sale.

6. Columbus, Ohio

Another city of Ohio i.e. Columbus is listed at number six for the cheapest foreclosed homes in U.S. The average price of the houses listed in foreclosure sale is $99,846. The savings on foreclosed houses in this city is around 46.79 percent. There are 1,252 houses listed on foreclosure sale.

7. Milwaukee-Waukesha-West Allis, Wisconsin

The three cities of Wisconsin State, Milwaukee-Waukesha and West Allis are on number seven of the cheapest foreclosed homes. The average price of foreclosure sale in these three cities is $111,225. The average foreclosure saving in these three cities is 46.55 percent and, the number of houses listed on foreclosure sale is 952 cumulatively.

8. Atlanta-Sandy Springs-Marietta, Georgia

Atlanta-Sandy and Springs-Marietta are listed at 8^th, as the cheapest cities on the list of foreclosed homes. On an average, the foreclosure sale price in these two cities is $113,358 and, the foreclosure saving in these cities is 45.64 percent. There are 10,286 homes up for foreclosure sale.
  
9. Springfield, Massachusetts

Springfield city of Massachusetts State is listed at 9^th. The mean foreclosure sale price in Springfield is $115,409. The foreclosure saving is 45.99 percent and, the number of houses listed on sale is 246.

10. Chicago-Naperville-Joliet, IL-IN-WI

Chicago, Illinois, Naperville, Indiana State and Joliet, Wisconsin are listed at number ten as the most cheaply foreclosed home cities in United States. On an average, the foreclosure sale price in all three cities of three different states is $139,650. The foreclosure saving is around 48.32 percent and the number of houses listed on sale is 9,262, collectively.

Author Bio: This article is written by Allison K Watkins a mortgage professional. She writes informative articles that help people get mortgage loans -especially people with bad credit. You can read more of herarticles on the site Badcreditwhiz.com (Link: http://blog.badcreditwhiz.com). You can also contact her at allisonkwatkins@gmail.com or by following her tweets @allisonkwatkins (Link: https://www.twitter.com/AllisonKWatkins).

The best way to legally 'steal' money from the real estate industry

By Tiffany Olson

Didn’t your daddy ever tell you, “There’s no such thing as a free lunch.”? He was absolutely correct. He also probably paid for way too many people’s lunches. Nothing is free. This is true. Practically speaking, however, this means very little. We already know someone is going to pay for lunch. The question is “Who?”

In an ideal world, the person paying for the lunch would be the same as the person eating the lunch. But as you already know, this is not the case. Fortunately for you, I am not going to waste the next five minutes of your valuable time discussing the societal dilemmas facing the modern world or philosophizing about the source of my lunch. What I am going to do is help you pay for a few less lunches - approximately 1,600 fewer lunches, to be more specific.

Free lunches and MLS databases?

Let’s talk about the real estate industry. In the past, this industry has effectively been hide-and-seek meets risk management. With the emergence of the internet, and more recently, the advent of public access to MLS databases, the hide-and-seek aspect has all but disappeared. What does this mean? In pre-internet times, you and the buyer/seller of your home were paying the real estate agent to help connect the two of you. There are only so many people looking to buy/sell, and you had no legitimately effective way of finding them, so you paid an agent to do it for you. And of course, there were the contractual technicalities to consider; an agent would take care of that as well. But nowadays, you can quite easily find buyers and sellers yourself via the internet. So effectively, you and your transactional counterpart are paying 6 percent of the transaction price to a third party for the sole reason that you don’t trust each other.

The numbers

Think about it. If the average home costs $275,000 (it does), you and the buyer/seller are paying $8,250 each, a combined $16,500 as a penalty for not trusting each other. If you trusted each other, you could simply browse your local MLS listings, meet each other online, have the bank draw up a basic contract, sign it, shake hands, transfer the money, and call it a day. You wouldn’t have to worry about an airtight contract, safety clauses, exhaustive house inspection, or any of the other annoying little things you pay eight grand for your agent to worry about.

Final thoughts

Am I suggesting you ditch your agents, lawyers, etc. and just wing it with your fellow man. 100% NO! What a dumb suggestion. Have you even met people? They’re literally just the worst. In all seriousness…no, I am not suggesting that. I am merely pointing out the absurdity of the fact that we pay that steep of a penalty for not trusting each other. I’m also hinting at the idea that, should you find an alternative way for either A) obtaining a level of character assurance on your associated buyer/seller or B) legally safeguarding yourself against unsavory action on the part of your associated buyer/seller, you could tell your real estate agents to take a hike and save yourself eight grand. And who doesn’t want an extra 8 G’s?

Tiffany Olson loves to write, read, play jump rope and watch the sun set. During the day you can find her hunched over the keyboard, writing away about many various topics. One of the most exciting being Redding MLS listings. Sounds exciting, right?!

Financial news: 02/01/2013

• CNN: PIMCO's managing director advises against U.S. equity
• News Max: U.S. economy to continue shrinking per economist
• MW: High probability of market crash exists per Marc Faber
• CNBC: Late retirement a reality for 18.5% over 65 yrs
• BI: Regulators refuse to prosecute early trades despite leaks
• NYT: Poor prospects drop law school apps. to 30-yr low
• Bloomberg: California's S&P rating ↑ for first time since '06
• BEA: Dec. personal incomes rose ↑ 2.6%, spending ↑ .2%
• Morningstar via NASDAQ: Inflation reliably indicates recession 
• Fox: Presidential jobs advisory council to cease existing
• ZH: Short selling of Italian oil services firm temporarily banned
• Reuters: Deutsche Bank shares ↑ even with big Q4, '12 loss
• BBC: German retails sales fell .6% in 2012