Sell Your Skills Online
Fiverr is a funny, high-energy website where you may make some quick cash with the right idea. Would you pay $5 to have someone promote your business in a leprechaun suit, sing happy birthday from a tropical beach, make a video rant, or overreact?
From real value to sheer craziness, people are making money selling their skills online. What skill could you sell for $5?
Corporate & Government Bonds
For risk-averse investors, government bonds are a great low-risk investment alternative. These bonds have a term of between five and forty years. Government bonds pay interest on a regular basis or make coupon payments at the rate determined by the government of India.
Government bonds have a set maturity date. The primary purpose of government bond issuance is to raise funds for government expenditure. They give steady income and are safe and reliable.
And when it comes to corporate bonds, there are numerous businesses that require additional money. Hence, they issue corporate bonds.
These are comparable to bank deposits, except that the investment is made with a corporate entity, which is less secure than a bank deposit. Corporate bonds offer a high rate of interest but come with additional risk.
Before investing in corporate bonds, it is necessary to ascertain the companys financial strength and credibility. This can be accomplished through the use of credit ratings, analyzing the companys financial report for their cash position & earnings capability.
Top 5 Government Bonds:
Top 5 Corporate Bonds Fund:
Instead of applying for individual bonds be it Government or Corporate bonds, an investor can go for Bond Funds, wherein a Professional Fund Manager manages the risk-reward options and invests your money in order to give you the best option available at the lowest risk.
Shifting The Corpus To Low
Ideally, a bulk of your retirement funds should be in long term investments like equity. They can be either direct or through managed funds.
As you get closer to retirement, shift some of this accumulated pool to low risk, transparent and liquid securities like debt and money market mutual funds or even bank deposits.
Any shifts out of mutual funds, including for monthly withdrawals, will be subject to long term capital gains tax.
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Total Return Investment Approach
A total return approach provides income from your investment portfolio in the form of interest, dividends, and capital gains. This type of portfolio invests in a balanced and diverse mix of stock and bond funds.
In this context, total return means averaging the annual rate of returns income and appreciation over a longer period , rather than focusing on specific annual return rates. The aim is that this total return meets or exceeds your withdrawal rate.
Related to withdrawal rate, a total return approach follows a systematic withdrawal strategy, in which you take out a certain percentage of your investment each year, generally between 3 and 5 percent. However, this approach can deplete a portfolio quickly if you retire and begin to withdraw from your portfolio in a year with a steep market sell-off.
Plan For Health Care Costs
Fidelity Investments estimates that the average 65-year-old couple retiring now will need about $260,000 to pay out-of-pocket health care costs, including deductibles and Medicare premiums, over the rest of their lives. That doesnât include long-term care, which can be a major budget buster.
There are a variety of options to help pay these future medical bills. One tax-friendly way is a health savings account. As long as you have an eligible high-deductible health insurance policy, you can contribute to an HSA either through your employer or on your own .
An HSA offers a triple tax advantage. You contribute money on a pretax basis to the account. Money in the account grows tax-deferred. And withdrawals are tax-free if used to pay medical expenses, either today or when youâre retired.
To make the most of the HSA, contribute as much as you can to the account and pay current medical bills out of pocket. That way, the money in the account has time to grow. Years from now, you can use HSA funds to reimburse yourself for medical bills youâre paying today.
The maximum contribution for 2017 is $3,400 for single coverage and $6,750 for families, plus an extra $1,000 if youâre 55 or older. Your health insurance policy must have a deductible of at least $1,300 for singles and $2,600 for families.
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Variable Annuity With A Guaranteed Income Feature
A variable annuity is a contract issued by an insurance companybut inside the annuity they allow you to pick a portfolio of market-based investments. What the insurance company provides is a lifetime income benefit rider that ensures that, if the investments don’t perform well, you’ll still have retirement income.
Pros: Guaranteed lifetime income that may keep pace with inflation if the market rises. The principal remains available to pass along to heirs.
Cons: May have higher fees than other optionsand the fees in some products can be so high that you are forced to rely on the guarantees, as the investments are unlikely to be able to earn enough to overcome the costs.
Look For National Parks Gigs
You can help people gain an appreciation for the environment with this outdoors opportunity. National parks provide visitors with guides and other helpers during their stays.
You can check out nearby opportunities on sites like Older and Bolder or similar prospects in your country. Teach the next generation to honor the earth, while you commune with nature.
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A Low Stress Retirement Is Possible
This is a very important topic to understand if you want to enjoy your Happy Retirement and live a low stress enjoyable retirement. After all, you earned it, but you dont want to lose it.
If you want to take the first step and figure out your income target, call the office at 415-331-9030, or contact us through the website and we will provide you with a tool we call the Spending Plan Analyzer which will help you figure out how much income you want to live on.
The contents herein are the opinion of the speaker and should not be considered as tax or legal advice. This podcast should not be considered a solicitation for investing or advisory services. Strategies mentioned are not a recommendation to implement or purchase those products or strategies. You should contact your own advisers as to the appropriateness for your specific situation.
Things To Consider When Working During Retirement
Once you start making a steady income in retirement, make sure to coordinate it with your Social Security benefits.
If you receive early retirement benefits throughout 2020, the Social Security Administration will deduct $1 for every $2 you make above $18,240.
If you will reach full retirement age in 2020, the Social Security Administration will deduct $1 from your benefits for each $3 you earn above $48,600 until the month you reach full retirement age.
Full retirement age varies depending on your birth year, and certain exceptions and extenuating circumstances will affect these calculations. If you havent yet researched the impact of your income on your retirement benefits, its best to consult the Social Security Administrations guidelines directly.
Earning money in retirement can reduce the financial strain that comes with aging. If your budget is tight, this extra income can cover essentials and medical expenses. If money isnt an issue, you can use the money from your side hustle to go on a vacation or contribute to a grandchilds college education fund. Either way, taking up an encore career is a great way to meet people and have fun which is what life in retirement is all about.
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Try Your Hand At Entrepreneurship
Do you have a really great idea that you havent acted on because you dont know how to fund it? You come up with a project idea and decide how much it will cost you to make it come to life. Post it on Kickstarter and let people who love your idea contribute to it.
Once your project is funded, people can continue to contribute until your fundraising period ends. Make your dream idea a reality on Kickstarter.
When It Comes To Saving For Retirement Maybe You’ve Done Everything Right
When it comes to saving for retirement, maybe you’ve done everything right. You started early, maxed out your 401 plan, invested in a diversified portfolio and avoided costly mistakes, such as cashing out your retirement plan. Fantastic. But now comes the hard part: making sure you don’t outlive your money.
That’s a tall order for today’s retirees. Taxes, unpredictable investment returns, rising health care costs and inflation down the road can significantly erode the value of your nest egg. And perhaps the biggest challenge is that you’ll probably need the money for a long time. A 65-year-old man has a life expectancy of 19.3 years it’s 21.6 years for a 65-year-old woman. If you’re married, there’s a 45% chance that one of you will live to age 90 and a nearly 20% chance that you or your spouse will live to 95.
Fortunately, there are steps you can take to generate extra income and extend the life of your portfolio. Let’s take a look.
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Categorize Your Retirement Income Sources
As you think about the retirement income sources available to you, begin grouping them into income categories such as lifetime, dividend, and interest income. Because of their predictability, many retirees use lifetime income sources to cover essential living expenses. Discretionary and unexpected expenses are generally more flexible than essential expenses, so your investable assets can help cover these costs.
|Severe market drops or prolonged periods of volatility can reduce portfolio value||May not produce income adequate to outpace inflation and rising health care costs||
Limited liquidity and control of assets
Additional costs associated with annuity and insurance products
Fisher Investments Canada Can Help
Planning for retirement is a daunting task and developing a strategy to pay for retirement can be incredibly challenging. Before you retire, you may not be aware of what expenses you can expect to pay or how to structure an income generating portfolio in retirement. Luckily, you do not have to face retirement alone. If you would like guidance or assistance selecting the right asset mix to generate income, Fisher Investments Canada can help. Feel free to reach out and speak with one of our qualified professionals today.
Canada Revenue Agency , as of 06/17/2019. Savings and Pension Plans. https://www.canada.ca/en/services/taxes/savings-and-pension-plans.html.
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Invest In The Post Office Monthly Income Scheme
Under the Post Office Monthly Income Scheme or POMIS, you receive a sum monthly, starting from the date of deposit. If you re-invest a portion of your retirement savings or PPF under this scheme, then you will get an interest rate of 7.3% per annum, payable monthly.
The maximum limit for investment is Rs. 4.5 lakh for single accounts and Rs. 9 lakh for joint accounts. The maturity period of the Post Office Monthly Income Scheme is five years. So, if you invest Rs. 4.5 lakh under this monthly income scheme for 5 years, you are sure to get a monthly income of Rs. 2,737.
Delay Social Security Benefits
You might not think of Social Security as an inflation fighter, but for many people it will be their only stream of income with an automatic cost-of-living adjustment. The COLA was only 0.3% for 2017, but itâs projected to be 2.2% in 2018.
More than 45% of people take Social Security retirement benefits as early as they can, at age 62. For those who have taken early retirement, perhaps because of poor health, this often makes sense. But grabbing benefits early comes at a steep cost. If you claim Social Security at 62, your benefit will be reduced by as much as 30% compared with delaying until full retirement age . And if youâre patient and have other sources of income, you get a generous bonus for waiting until age 70 to claim benefits: For every year you wait to take Social Security beyond full retirement age until age 70, your benefit increases by 8%. Even better, future COLAs will be based on that bigger benefit.
KIP TIP: Spouses should coordinate their claiming strategies to maximize the survivor benefit. A married couple is likely to maximize lifetime income from Social Security if the higher earner delays taking Social Security until age 70, so no matter who dies first, the survivor gets the largest possible benefit .
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Become An Event Planner
Everybody loves a party. If youre the extrovert who always goes the extra mile for the dinner party, birthday celebration, or World Cup Final get-together, then share the love through party planning.
Find a niche that youre particularly good at and that you love and start letting people know youre available. You can keep it casual for some extra money on the side or scale it up to a business if you change your mind.
The 2021 Rrsp Contribution & Deduction Limit
Theres a limit to how much you can contribute to your RRSP and it changes each year. For the 2021 tax year, you can contribute up to 18% of the earned income you reported for last years taxes , or $27,830 whichever is less.
Fortunately, youre able to beef up your 2021 contributions even after the calendar turns. The deadline to contribute to your RRSP for the 2021 tax year is March 1, 2022.
Remember, even if you miss the deadline, unused RRSP room carries forward and adds up. If you havent maxed out your account in previous years, you should have a considerable amount of space available to you.
Caregiving And Child Care
Caring for a child or someone who is sick or impaired is one of the most rewarding things youll do, and for those who seek more interpersonal interaction in their work, caregiving can be the ideal fit.
One thing to keep in mind in any post-retirement career caregiving, consulting, teaching or otherwise is that your relationship to your coworkers may be different from what youre used to.
If youre trying to get a job where someone else hires you, theres a good chance that that person is going to be younger than you, says Vernon, who says hes gotten used to being by far the oldest person on the Stanford Centers research staff.
Its a new world, he says. Youve got to be open to working with people of all ages.
How to Make Money Caregiving
- Start an at-home daycare: If you have friends and neighbors with young children, offer daycare services. Just make sure to check any licensing or insurance requirements.
- Become a nanny: While there are no formal requirements for this job, its a good idea to get certified in CPR and first aid and enroll in infant care and water safety classes.
- Do after-school pickups: Some busy parents need someone to pick up their children from school and watch them for a few hours. This is a great option if you want flexible hours.
- Care for a sick or impaired adult: Offer to provide caregiving services, such as cooking, cleaning and transportation, for an older adult to relieve their primary family caregiver.
Resources for Caregivers
Income Sources During Retirement
Pulling large sums of money from your savings account or taking significant distributions from your retirement accounts may not be the best way to ensure youll have a consistent stream of income in the years to come. Instead, consider systematic withdrawals. Systematic withdrawals basically mean calculating your needs for cash flow and only taking that amount out while the rest continues to compound not too little, not too much, but just enough. Note that traditional retirement accounts, such as a 401s or IRAs, have required minimum distributions that you must take starting at age 72 and these increase after the first five or six years.
Immediate annuities are sold by insurance companies and, as the name implies, payments can start almost immediately and are available in monthly, quarterly or annual increments. The payment amount is generally fixed for the entirety of the contract, but variable and inflation-adjusted annuities are available as well. Annuities can be continuous for the entire lifespan of the annuitant or last for an agreed upon fixed term.
Certificates of Deposit
Dividend Paying Stocks
Direct Real Estate Investments
Source: St. Louis Fed
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