Future Planning

How is home equity calculated? Basically, it’s your home’s current value, minus the amount you owe on it. The equation would look something like this:  The current value of your home: $200,000  – Remaining mortgage balance: $125,000  = Home Equity: $  75,000  But, building home equity takes time. Each month, a portion of your mortgage payment goes toward the loan principal. You build equity as your principal decreases, which usually occurs over many years. If you want to speed up the process so you can build equity faster, here are four things you can do.  Make a Larger Down Payment The…

Every January, it’s the same deal: You resolve to save more money, pay off your debts, and get your financial situation in order. Then February comes along, and you’re back to your old habits. If you’ve broken New Year’s resolutions in the past, you’re not alone. The vast majority of people give up on their resolutions within the first month of the year.  But this year can be different. With a few adjustments to your thinking and a few small hacks, you can make sure that your resolutions actually stick.   Start Small  If you usually start the year off with a big goal, only…

While retirement may seem like a lifetime away for many, making smart investing decisions early is the best move to ensure you can retire comfortably down the road. There are several retirement accounts to consider, such as Roth IRAs and 403(b) accounts, but one of the most popular options for many is a 401(k) plan. Since most employers offer an easy-to-set-up, low-risk employee 401(k) plan with matching contributions, taking advantage of this option is a no-brainer.  Your company’s HR specialist can help you understand the specifics of your company’s 401(k) offerings, but it’s a good idea to have a basic understanding of how 401(k) plans work and how they can benefit you. After you…

Whether you are close to retirement age, or just kicking off your dream job, having a solid retirement plan is essential to a financially secure retirement. Let’s check out a few key strategies to get you started.  Invest a Consistent Amount Each Month. With this strategy, you can automatically contribute to your IRA or other retirement accounts with every paycheck (up to the maximum annual contribution).  Plan for Retirement Adjustments. It is important that you plan to adjust your income after retirement. While some of your retirement income will probably be a fixed amount each month, you will also have some retirement accounts that will pay different amounts based on market performance. If possible,…

The moment you walk through the front door, hear the ring. You fumble the smartphone out of your pocket and answer it eagerly, talking to the job interviewer that you just saw an hour ago. They happily give you the good news as you barely hold back the scream of joy. You landed your first job and will start work on Monday. When you go to bed, you start thinking about all the things you want to do with your new salary.  Time to Think About Retirement  Initially, you might spend most of your time imagining the luxurious lifestyle your new income will bring, but you should eventually push those fantasies aside to consider a retirement fund. It doesn’t sound that exciting, especially if you are…