The What, When, And How Of Retirement Planning

Comprehensive financial retirement planning is an important task that too few people start and monitor. Inflation, capital market adjustments-prices of stocks, bonds, Treasury bills, and more-and financial need quickly increase or decrease the value of a retirement nest egg. Diversity of investments and monitoring progress toward your financial goal helps avoid catastrophic downturns in your retirement portfolio.

Know Your Minimum Benchmark
The first step in good financial retirement planning is knowing when you have met the minimum amount required to maintain the lifestyle you want. To determine that financial mark, use the following formula to determine your initial retirement income ratio:

(Annual Passive Income) divided by (Annual Expense) equals X.

If X is less than 1, you are not financially ready to retire at the level you’d prefer. Experts recommend additional and continued investment.

If the answer that X represents equals 1, then you have reached your minimum retirement funds threshold. You have exactly the minimum required to maintain the retirement you want-no more, no less. The drawback to an exact ratio is that you have no room for underestimation, inflation, unexpected expenses, or loss of income. To allow a cushion, experts recommend additional capital investment.

If X is greater than 1, you can currently afford to retire. Experts avow that additional or continued retirement planning is optional, so long as the retirement income ratio stays above 1. They advise that you conduct periodic checks to ensure the ratio is level or improving.

Types of Income
When planning for retirement, understand the difference between a linear income and a passive income. A linear income trades time, effort, and expertise for money. When you work, you get paid. A passive income provides funds without the trade. You aren’t actively pursuing a linear income, and income, if any, comes via interest, dividends, and real estate leases, rentals, or sales.

The benefits of passive income are five-fold:

Builds net worth: Income that is generated on behalf of no one else means all income is yours to claim. Unlike linear income, passive income means that very little or no additional effort is required of you. You have already ‘paid your dues’ and are now reaping its benefits.

Financial independence: So long as your portfolio’s net worth stays above or at your retirement income ratio of 1, you are no longer required to lower your standard of living or actively work unless you choose to do so.

Deadline freedom: The alarm clock can retire, too, if you wish it. You don’t have to allow for traffic jams, time cards, or employment-related deadlines. Only travel deadlines might apply; after all, you would still have to get to the airport on time for that flight to the Caribbean you’ve always wanted.

Multiple Income Streams: With passive income, you can pursue other income streams; linear income is limited by the number of hours you are able or allowed to work. Then you have to stop. Passive income is yours to direct, save or spend-not someone Else’s.

Residual Income Stream: Unlike standard passive income, residual income continues to pay you. Dividends pay once without a guarantee that it will be repeated. Residual income returns again and again; it is literally the renewable, green income of financial retirement planning. Some types of residual income include royalties and patents income, network referrals, and network marketing, membership fees, affiliate programs and advertising income.

Financial retirement planning involves long term investment goals and the dedication and determination to reach them. Diversify your assets and your investments to avoid losing everything should one investment vehicle falter or fail. Pursue different types of income and watch your nest egg grow.

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Advantages of Real Estate Investing

Investing in real estate is as advantageous and as attractive as investing in the stock market. I would say it has three times more prospects of making money than any other business. But, But, But… since, it is equally guided by the market forces; you cannot undermine the constant risks involved in the real estate. Let me begin discussing with you the advantages of real estate investments. I found the advantages as most suited and really practical.


Real Estate Investments are Less Risky

As compared to other investments, less of misadventure is involved in a real estate property. I will not get away from the fact that just like any investment you make; you have the risk of losing it. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rate stability; good history of land appreciation, less of inflation and many more. As a rule of thumb, if you have a geographical area where there are plenty of resources available and low stable mortgage rates, you have good reason for investing in the real estate market of such a region. On the contrary, if you have the condo in a place, which is burgeoning under the high inflation, it is far-fetched to even think of investing in its real estate market.

No Need for Huge Starting Capital

A real estate property in Canada can be procured for an initial amount as low as $8,000 to $ 15,000, and the remaining amount can be taken on holding the property as security. This is what you call High Ratio Financing. If you don’t have the idea as to how it works, then let me explain you with the help of an example. Remember that saying… Examples are better than percepts!

Supposing, you buy a condo worth $200,000, then you have to just pay the initial capital amount say 10% of $200,000. The remaining amount (which is 90%) can be financed, against your condo. It means that in a High Ratio financing, the ratio between the debt (here in the example it is 90% Mortgage) and the equity (here in the example it is 10% down payment) is very high. It is also important to calculate high ratio mortgage insurance with the help of Canada Mortgage and Housing Corporation (CMHC). If needed, you can also purchase the condo on 100% mortgage price.

Honing Investment Skills

A real estate investment, especially when you buy a condo for yourself, will be a pleasurable learning experience. It gives you the opportunity to learn and when I went ahead with my first real estate property, I was totally a dump man. Ask me now, and I can tell you everything, from A to Z. Necessity is the mother of all inventions. I had the necessity to buy the property and so I tried with it, and I was successful. I acquired all the knowledge and skills through experience of selling and purchasing the residential property. Thanks to my job. It gave me the experience to become an investor.

Not a time taking Adventure

Real estate investment will not take out all your energies, until you are prepared and foresighted to take the adventure in full swing. You can save hell lot of time, if you are vigilant enough to know the techniques of making a judicious investment in the right time and when there are good market conditions prevailing at that point of time.

You should be prepared to time yourself. Take some time out, and do market research. Initiate small adventures that involve negotiating real estate deals, buying a property, managing it and then selling it off. Calculate the time invested in your real estate negotiation. If the time was less than the optimum time, you have done it right. And if you end up investing more time, then you need to work it out again, and make some real correction for consummating next deals. You have various ways and methodologies, called the Real Estate Strategies that can make it happen for you in the right manner.

Leverage is the Right Way

The concept of leverage in real estate is not a new one. It implies investing a part of your money and borrowing the rest from other sources, like banks, investment companies, finance companies, or other people’s money (OPM). There have been many instances where people have become rich by practically applying OPM Leverage Principal. As I had discussed under the sub head – No Need for Huge Starting Capital, the high ratio financing scheme gives an opportunity of no risk to the lenders, as the property becomes the security. Moreover, in case the lender is interested in selling the property, the net proceeds resulting from the sale of the property should comfortably cover the mortgage amount.

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Real Estate Leads For Realtors

Because real estate prices have dropped quite a bit, the potential commissions that real estate agents and brokers could earn have also dropped. But the drop in commissions can be more than offset by the amount of properties that can be sold. And getting quality real estate leads is one of the keys to making this a reality for real estate professionals. This is because there are so many more properties on the market now than there were before the bubble burst.

The rise in the number of homeowners who are underwater on their mortgages has increased so much that a very large number of them have decided that they cannot afford to stay in their homes. They would rather sell their home and buy a comparable home for a much lower price, and take the loss so that they can improve their cash flow situation by having a lower mortgage payment each month. And since there is no shortage of properties to buy, these people had no problem finding a suitable home for a good price.

And another result of the rise in available properties is that more and more people are becoming first-time homeowners. Since prices on homes are falling, more and more people are able to afford a home for the same amount they are currently paying in rent. So the logical choice for these people is to buy a house rather than continuing to rent.

These factors all lead to one thing – a higher need for real estate agents to help the buying and selling of all of these properties. Therefore, even though prices have fallen, the quantity of available properties, buyers, and sellers has raised which more than makes up for the lower prices in terms of how much a given real estate agent could make in the current real estate market. And as we all know, the more clients a real estate agent has, the more properties they’ll sell and the more money they’ll make.

The problem comes in when a real estate agent has already gone through their current client list. The best way for them to get more clients is to somehow obtain more real estate leads. Not only do they need more leads, they need high quality leads if they are going to be successful in converting a high number of them into clients who actually follow through on buying and/or selling one or more properties.

So how can you get more real estate leads? There are of course many different ways. These include buying them from an agency that offers them, advertising, subscribing to lead generation websites, developing and keeping current your own real estate website that draws potential

clients to it, and best of all by getting them through your own network. There are undoubtedly other ways of generating real estate leads as well, but these are the most common methods – all of which have proven to work to a certain degree.

One of the easiest ways to get real estate leads is by purchasing them. There are companies whose sole purpose is to find people who want to buy or sell a property. They then sell this information to people who are willing to pay for it. So if you are a real estate agent looking for real estate leads and either don’t have the time to find your own, or simply don’t want to, then this may be a good option for you.

There are two different major ways to do this. You can purchase the real estate leads from a company as a set of data that you will get in the form of a list or spreadsheet. Then you will need to start sifting through them and using the data available to qualify and categorize them yourself. And after that, it’s time to start making calls to find out they are valid leads or not.

The other way of purchasing real estate leads is by subscribing to a real estate lead generator website that will send you much smaller lists of leads on a regular basis. This can be nice because the information is likely to be much more current than buying a single very large list of leads. But this also means that there are fewer to work with so it doesn’t give you as much freedom in terms of choosing who to contact first.

Purchasing real estate leads or subscribing to a lead generation website can also be expensive. This can be a very bad thing since the whole intent of buying leads is to find clients, sell properties, and make commissions, if the leads that you buy don’t turn into commissions. In that case, not only did you not sell any properties (or many properties), but you wasted money on worthless information, and you wasted time contacting worthless leads when you could have been working on finding good real estate leads instead.

Another way to generate real estate leads is by advertising. If you are a real estate agent, broker, or business person, advertising your services may be a good way to generate real estate leads. This type of lead generation is great because rather than you doing the work to find people who want to buy or sell a property, the tables are turned and they come looking for you instead.

In addition to having people try to find you instead of you trying to find them, there is another benefit to advertising to generate real estate leads. The people who are trying to find you are already definitely interested in buying or selling a property. This means that you don’t have to worry about whether they are going to turn out to be qualified leads or not, because they definitely will be.

A similar way to generate real estate leads by advertising which can be even more effective than simply advertising on a billboard or in the paper is by setting up your own real estate website. Websites are surprisingly inexpensive to have hosted, and having one developed for you doesn’t have to be expensive either. And if you learn the basics of website development, you’ll be able to maintain it by yourself after it’s been set up so that you can always keep it current.

The reasons to keep your website current cannot be understated. First, you have to keep it updated with the properties you are trying to sell so that the people who visit your website will have something to look at – and since this list of properties will be changing frequently as your client list grows and changes, you’ll need to change your website often to incorporate the new properties and eliminate the ones that are no longer available.

A second reason for keeping your website updated on a regular basis your page rank will grow higher. Search engines use a number of factors to determine how relevant they are to certain keywords, and where to display them in a list of search results. And one of the biggest things that moves a website toward the top of the list is it’s page rank, which is greatly affected by how active and how current the website is. So the more often you update your website, the higher its page rank will be, the higher it’ll show up in search results related to real estate keywords, and the more visitors you’ll get to your site.

Once you get visitors to your site, you’ll be getting the exposure you want to potential clients for free. They can stay on your site for as long as they want to and look at as few or as many properties as they want to. And you don’t have to do anything in order to help them. In fact there could be thousands of people all on your website at the same time. That is something that you would not likely ever have the opportunity to do in person. This phenomenon is what is known as leverage, and leverage is what can turn a small business into a fortune 500 business in short order when managed correctly.

The best way to do real estate lead generation also happens to be one of the most difficult – at least in the beginning. The method of finding leads is by building a very large network, and using it. This is one of the best ways to get leads because it is one of the most surprisingly effective ways. But unfortunately, it’s also one of the more difficult ways to start, and takes a while to yield significant results.

The first thing you’ll need to do is to start building your network. And it’s not that you just need to start building it, you need to intentionally focus on building your network each end every day, no matter where you are or who you’re talking to. This is because for most people, networking does not come naturally.

If you are like most people, you are probably somewhat shy and don’t make it a point to intentionally meet and talk to new people on a regular basis. But if you want to build a network, you’ll have to do exactly that. This is something that can come as a challenge to say the least, both emotionally and technically, but it is well worth the effort in the long run.

It can be emotionally difficult because a large part of building a large network is dealing with rejection. And if you want to build a large network quickly, you’ll have to deal with a lot of rejection each and every day. Too many people, being rejected is taken personally and it ends up wearing them down so that they eventually give up before they gain the benefits that building a large network provides. But if you can learn how to not take rejection personally, you’ll succeed where so many others have given up and failed as a result.

And networking to generate real estate leads can be done almost anywhere. When you need to put some gas in your car, park on the other side of the pump from someone who’s already there and try to strike up a conversation where you’ll be able to tell them that you’re in the real estate business and can help them or anyone else they know who may be looking to buy or sell. And if you’re really serious about it, you may want to only get $10 or some other small amount of gas at a time so that you’ll need to go to the gas station more often and have more opportunities to network.

You can also build your network by meeting new people at any other place. You could talk to someone at the grocery store, library, church, waiting in line at the bank, or anywhere you are around other people for more than a few minutes at a time and starting a conversation wouldn’t be too awkward. It can be done anywhere, with just about anyone, at almost any time. And the more dedicated you are to it, the faster you’ll be able to grow your network and the better off you’ll be in the long run.

Some of the best ways to network are by talking to the people you already know. These are people who are already in your network, and you can use them to help you grow your network even larger. The most obvious way is to simply ask them if they are interested in buying or selling a property in the near future, and to keep you in mind if they are.

But another way to help you grow your network is to ask them who they know that may be interested in buying or selling a property. You are basically asking them for real estate leads using different words. You could ask them for the names and numbers of people who they know who may be interested in buying or selling a property, or you could ask them to give your contact information to the people they have in mind when you ask them that question.

It’s a great idea to have business cards with your contact information made up when you’re networking. That way you won’t have to rely on people’s memories which are definitely not the most reliable things when compared to something they can simply read from a card. Cards on the other hand make it so that the person you are giving your contact information to doesn’t have to rely on their memory, and it puts forth a more professional image as well which can only benefit you.

Real estate values have taken a dive and one of the results has led to there being many, many more properties on the market now compared to before the economy took a dive in 2008. This means that even though the prices are lower, the higher quantity of properties on the market make it possible to buy and sell more of them and make more money in commissions as a result which will more than make up for the decreased individual property values.

I order to sell more properties you must have more clients. And to get more clients, you need to have more real estate leads. These real estate leads can be generated in a variety of different ways, all of which can be useful to real estate professionals. Having reliable leads will definitely result in more clients, more sales, and more money made in commissions. Purchasing them, advertising for them, or getting them from your network is all great ways go get leads that all have their own strengths and weaknesses. Pick the one that will work best for you, and you’ll be on your way to making more money through real estate in less time that you think.

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Why Early Retirement Planning Is Important?

An often overlooked but essential way to ensure a good future for a worker is to consider early retirement planning in advance. There are important data about pensions, social security benefits, and other that the worker must know in depth. The worker should never set this information aside to find out how it all works the day before retiring. In fact, the wisest thing for a worker to do is to start considering the possibility of saving money for future use, which many people are doing nowadays when they get a fixed salary.

Early Retirement Planning Essentials

One of the most important things to consider when you plan your retirement is timing. In order to be able to satisfy your future needs after you retire, you need to make a proper use of time, work out a habit of saving, and make sure you embark on the right businesses. If things work out as desired, the amount invested is supposed to grow larger through time. Unluckily, some people who were able to get a greater amount of income, have a short period of time to make investments; that is why, even though your income is small, you should plan your early retirement.

How to Develop an Early Retirement Plan

There are four aspects that need to be considered if you want to work out a great retirement plan. If you want to make sure that the amount you spent on this was worth it, you must follow each one of the instructions illustrated in each step. First, there is the time when you have just started your career and do not have extra money to invest every month. However, even if the amount seems minimal to you, you have to invest it, so that the quantity increases. A wise thing to do for a young worker who has no money to spare is to turn to a bank offering mutual funds with no annual fees.

Second, as time goes by, you get a bigger salary and you are able to put some money either into brokerages that offer discounts, or into other good investments, which could yield profit. Of course, the more money you can earn the more chances you have to lose it, which is an important reason to watch carefully where you are going to put your money. Third, in order to avoid bitter times in the future, do not owe money to anyone. Pay all your debts as soon as the income reaches the desired level. Finally, you are free to make other investments in several other businesses as soon as you get rid of the debts. If you follow these guidelines carefully, you will not have harsh times after your early retirement.

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Retirement Planning With Stocks & Mutual Funds

Retirement planning doesn’t have to be a daunting task. In addition to a pension, social security and a 401k, the happiest retirees secure investments long before they retire and reap the benefits for that Bahamas cruise later on.

Stocks and mutual funds aren’t just terms for Wall Street brokers anymore. They’re assets to anyone with a desire for more money. Why not benefit as the economy benefits and share in the wealth? That’s what “capitalism” is all about.

A stock is a share in the ownership of a company. For the company, a stock is a fundraising loan that they needn’t repay, but will typically yield greater income for both the company and its shareholders in the end. As an owner, you are entitled to your share of the company’s wealth.

You won’t be able to control how the company is run per say, but the good news is that you will have a claim to assets and limited liability (meaning that you’re not personally responsible if the company can’t repay its debts).

Stocks can be daunting since there’s always the risk that the company won’t be profitable and you’ll lose your investment. When retirement planning, the AARP recommends investing for the long haul in companies that are likely to succeed (instead of trying to “time” the market) and invest small in many different stocks to minimize risk and maximize returns.

A mutual fund is a lower-risk investment. Investors pool their money and allow professionals to select stocks for them. While stocks may generate a larger return, mutual funds are better for retirement planning because of their low risk and maintenance.

Mutual funds spread your investment dollars around and gives you the expertise of a money manager to ensure the success of at least some of your investments.

Mutual funds are constantly being bought and sold, so you can easily sell your shares for money. Many people choose the automatic investment option, which takes a certain amount of money out of each paycheck to invest. When the market’s down, more shares are bought to increase your ownership and when the market’s up, less shares are bought at the higher price.

So how will you make money off your stocks and mutual funds? One way is through appreciation, meaning that the fund will be worth more than what you paid for it as the market changes and you’ll be able to resell, making a small profit.

Another way is through dividends, which works like interest that is distributed among shareholders annually or sometimes quarterly. A third way is through capital gain distributions, which is the portion of the shared company profit that you can receive annually or monthly.

Retirement planning investments shouldn’t be touched until retirement however, since this money will be included in your taxable income.

You may be wondering, “Where can I get started on investing in my retirement plan?” For information, check the US Securities and Exchange Commission website to find what questions to ask before you get started with your retirement planning investments.

The local library will also have many resources for eager investors. To jump right in, make an appointment with your local bank.

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How To Find The Best Retirement Planning Service

When it comes to planning your retirement and securing your future, the wisest choice is to consult a professional retirement planning services company. Many men and women who decide to plan their golden years without professional consulting advice end up regretting not having been thoroughly educated on the many aspects that retirement living entails.

Do not be one of these people. Your golden years and financial security is too important to simply “wing it” when it comes to a long-term plan.

What exactly is a retirement planning service?

By choosing the right company for your needs, you will find that a proper team of consultants should provide you at least 20 years combined experience with investment management and financial planning experience.

The organization should make you feel comfortable while offering a long-term approach to your financial needs, as well as other aspects of retirement such as strategizing your career, unplanned life events, and of course helping you live the life that you would like to live for the entirety of your senior years.

What can a qualified retirement planning service do for you?

Let’s face it, there is a bewildering and monumental array of choices to make in terms of planning out the next 30 years of your life. This can be especially stressful when we live in times where the economy is often uncertain. What you need is a crystal clear path to you and your family’s financial security during this most precious time of your life.

The right retirement consulting firm will take stock of your investments, future plans, retirement portfolio, your children’s needs, unexpected health care possibilities, projected cost of living, etc.

They will combine all of this data and analyze a complete and written financial guide for your retirement years that will make practical sense, as well as lead you to living the life you deserve, without worrying about money.

What are the most important items that I should look for when considering a retirement planning service?

Most companies that offer retirement guidance are very good at what they do, however there is a small list of specific planning services that should be offered. Below are a few of those items:

1. At the top of the list is financial planning. The company you choose should have a solid background with clients when it comes to providing maximum investment returns, expert advice on your taxes, college expenses (your children), insurance, and estate planning.

2. Next you want to be sure that the retirement planning service you hire is going to help you with mid career planning. Remember, you may have 10 to 20 years left in the workplace and making the right investment and financial decisions is of utmost importance. In fact, poor career planning into your retirement years could result in disastrous consequences.

Such important examples of mid career planning would be to determine disability needs, choosing a proper debt reduction strategy (if needed), making smart investments, and if you have children, selecting a money-saving college plan.

3. The third most important retirement planning service that should be offered by the company of your choice would be dealing with investment advice, proper allocation of your assets, and most importantly, evaluating and getting the most out of your employee benefits from the company you work for.

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Retirement Planning Education & Programs To Be Retirement Planning Specialist

Increasing demands of patrons gives birth to developing education fields and criteria that carry effective advancement for further as certain needs keeps pace up. With developing retirement planning requirement of prospects it came as a flourishing field to stand as a Retirement Planning Specialist. This position beholds the well planned, trained and experienced stage of standing as Retirement planning professional to offer the finest of professional services for well executed services for utmost client contentment.

Nowadays influence of getting security for retirement is getting upgrade as people are more aware and well approaching for the services present online. Retirement planning education and programs offers the finest of development education to become a retirement planning specialist. Let us discuss the better approach for retirement planning education, retirement planning training, retirement planning programs or education retirement plan.

On initiating there are three levels introduced for the execution for the finest retirement planning program via professional retirement planning specialist programs:

1. Real World Application

2. Depth of content

3. Ongoing Support

All these 3 levels comprises the finest of retirement planning programs that helps in flourishing the in depth knowledge for the same. The minute study and training programs for these elements mentioned above includes:


It mainly targets for: Identification and capitalizing all retirement planning opportunities

Education Retirement plan includes:

1. Retirement planning procedure

2. Accumulation phase

3. Transition Phase

4. Retirement Phase


Main target on building retirement income planner experts with effective approach

The retirement planning education for this includes:

1. Employer sponsored retirement plans

2. Non qualified executive compensation plans

3. Social security & Medicare

4. Individual retirement arrangement practices

5. Pre retirement withdrawals & distribution

6. Post retirement withdrawals and retirement services


The main focus of this element is: Providing access for general retirement planning concerned matters that are encounters by professionals while dealing with clients. That fabricates a live example for better understanding for situation handling and be more reliable service provider for prospects.

Retirement planning training for support includes:

1.Retirement planning advisor guide

The entire procedure of retirement planning education when procured via professional finest education program enables all above training and added benefits. Become a successful retirement planning specialist via dedicated and systematically executed procedural education that results to flourishing career prospects and pacing development for providing quality services.

Retirement planning programs mainly aim professionals in quest of profoundly awareness of complete know how for procedural and systematic client handling. All details concerning retention and well management of client for retirement planning related issues.

The entire procedure of retirement planning program comprises a well structured approach that aims the main concern of relevance at all three major elements. These three elements are key features of study of retirement planning education. All comprising together forms a retirement planning cycle featuring: accumulation, transition and distribution.

Get the professional expertise in the entire procedure of acquiring client, convincing them, procedural handling and retention via customized dedicated specialist retirement planning education programs. Be an effective service provider professional I the field procured and get the finest hold to become the preferred retirement planning specialist.

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