Three Challenges to a Successful Early Retirement

3 challenges of early retirement

If your goal is retiring early, there are three main challenges you should know about. How you handle these challenges will determine whether you successfully retire early – or whether you try and fail. To enjoy a “successful” early retirement, you need to stash away enough cash so that you don’t run out of money before you die. And trust me, it really is all about math. Here are the three challenges you’ll face as you try to escape the rat race as quickly as you…
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Annuity vs. Annuitization

Annuity vs Annuitization

What Is an Annuity? An annuity is a financial product. It’s one possible way people can invest money. Technically, an annuity represents a contract made between the insurance company and the person who bought the annuity. When you purchase an annuity, you can make a one-time payment for it. In exchange, the insurance company promises to provide some sort of benefit. Usually, that’s some type of income, long-term care, or growth of assets. Annuities Are (Usually) a Ripoff The definition of an annuity can make…
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Is $1,000,000 Enough to Retire On?

Is one million dollars enough to retire?

Understanding how much you need for your retirement isn’t easy. It may feel like all you know is that it’s a big number. And with so many variables in play, it seems simpler to just pick a large sum that feels like a substantial amount of money. Because of this, many people assume they need $1,000,000 to retire. If they hit that number, they’re golden. But is a million bucks enough for your retirement savings goal? It might make sense to aim for this sized…
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Dear Early Retirees, Don’t Forget to Plan for Taxes

Incorporate taxes into your retirement planning.

Have you ever heard of a group called the “Mustachians?’ This collection of frugal warriors is absolutely obsessed with saving huge sums of money so they can retire early. And in case you’re wondering, today’s post was inspired by a few things I read in the Mustachians in Practice Facebook group. I like the early retirement movement and it’s adopters. However, it really grinds my gears when Mustachians know just enough about finance to be dangerous – that is, they know some important financial concepts and just glaze over the rest. The…
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The Salesman IS NOT Your Friend

At the risk of throwing salespeople everywhere under the bus, I’m going to share a few stories that might change the way you think about how these professionals are compensated. Let’s start at the beginning. Recently, I asked my life insurance agent for an increase in my disability insurance policy. (You can learn more about a disability policy here.) His response? It will be a lot of work for a small benefit. At first, this response baffled me. Obviously, applying for more disability insurance wouldn’t…
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Define Disability Insurance: Protect Your Income

define disability insurance

Before I define disability insurance, let me set the scene for you: Joe Danger, CPA earns $100,000 a year working at a Big Four accounting firm. In his free time, Joe likes to practice juggling chainsaws. During a recent chainsaw-juggling performance at the Del Mar Fair, Joe injures his hands. Without any working digits, Joe is no longer able to use the number pad on his keyboard. He can’t work – and he’s not entitled to his salary! Pretty unfortunate for Mr. Danger, right? But he’s…
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Should I Cosign My Spouse’s Refinanced Student Loan?

Should I co-sign on a loan?

The following is a post by attorney Adam S. Minsky, who focuses his practice in student loan law. Please be advised that this post is not legal advice and does not constitute the creation of an attorney-client relationship. Attorney Minsky is licensed to practice law in Massachusetts and New York. Cosigning may, at first glance, seem like a fairly straightforward, no-risk way of helping a loved one secure a student loan or a refinancing. Having a solid cosigner may result in better loan terms or a…
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The Smart Way to Save Money On Auto Insurance

How to Save Money on Auto Insurance

Do you wish you could save money on your regular bills? Are you tired of overpaying for important components of your financial plan, but not sure what to do? If so, I’ve got some simple advice that can help you save hundreds of dollars in one budget category: your auto insurance policy. Every year, thousands of people make a specific mistake with their coverage that costs them big time. These people are literally taking hundreds of dollars every year and lighting it on fire. Want…
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