Country star Kris Kristofferson quietly bows out

LOS ANGELES -- Country singer-songwriter Kris Kristofferson has quietly retired from touring after more than 50 years in the music business.

The news, buried in a news release earlier this week, comes a year after the “Me and Bobby McGee” singer played his last gig on the Outlaw Country Cruise in the Caribbean in January 2020.

As the coronavirus pandemic shuttered live music venues last year, Kristofferson’s decision not to return to the road felt natural, his longtime manager Tamara Saviano told Variety on Thursday.

“It was just sort of a slow changing of the guard thing,” Saviano said. “To us on this side of the fence it was an organic, normal, ‘things are changing’ thing. Kris is aging; Kris is 84. It didn’t feel like such big news to us.”

The announcement came in a news release that said a new management company would represent Kristofferson’s business affairs, alongside his son John, after Kristofferson “officially retired in 2020.”

Kristofferson rose to fame in the 1970s in Nashville and wrote classics including “Help Me Make it Through the Night” and “For the Good Times.”

He was also a sought-after actor, winning a Golden Globe for his lead role in the 1976 version of “A Star is Born” opposite Barbra Streisand.

Kristofferson began experiencing debilitating memory loss in his mid-70s which his wife in 2016 said had been diagnosed as a result of Lyme’s Disease, and which had much improved.

-reuters-

NBA: Veteran center Joakim Noah likely to retire -- report

Veteran center Joakim Noah is expected to retire after the Los Angeles Clippers decided to waive him, ESPN reported on Tuesday night.

Noah's agent, Bill Duffy, told ESPN's Adrian Wojnarowski that the 35-year-old big man is "likely headed toward retirement."

The 6-foot-11 center appeared in 672 games (512 starts) across 13 seasons with the Chicago Bulls, New York Knicks, Memphis Grizzlies and Clippers. He averaged 8.8 points and 9.0 rebounds per game to go along with 1.3 blocks per game.

Noah was a two-time All-Star and a three-time selection to the NBA's All-Defensive Team. He was the league's defensive player of the year in the 2013-14 season.

The Bulls drafted Noah in the first round (No. 9 overall) out of Florida in 2007. 

He helped the Bulls reach the playoffs seven times in his nine seasons in Chicago, where he also became deeply involved in charitable efforts through his Noah's Arc Foundation.

-reuters-

NFL: Colts quarterback Luck announces shock retirement

LOS ANGELES -- Injury-plagued Indianapolis Colts quarterback Andrew Luck stunned the NFL on Saturday by announcing his retirement from the sport.

Luck, the number one pick in the 2012 draft, said he had opted to call time on his career after struggling to regain full fitness.

"This is not an easy decision. Honestly, it's the hardest decision of my life. But it is the right decision for me," Luck told reporters after the Colts' pre-season game against the Chicago Bears on Saturday.

"For the last four years or so, I've been in this cycle of injury, pain, rehab, injury, pain, rehab, and it's been unceasing, unrelenting, both in-season and offseason, and I felt stuck in it. The only way I see out is to no longer play football."

The 29-year-old has been battling a left leg injury during the pre-season, which has been described variously as a calf and ankle problem.

Luck's decision comes after a mixed record in recent years. 

He suffered an injury to his throwing shoulder during the 2016 season which required surgery.

His rehabilitation from the injury forced him to miss the entire 2017 season but he put in a stellar performance when he returned last year.

He finished second in the NFL for touchdown passes and led the Colts into the playoffs for the first time since 2014.

His play saw him win the NFL's Comeback Player of the Year award for 2018, and earned him a fourth Pro Bowl selection.

News of Luck's retirement came as he watched from the sidelines as the Colts played the Bears on Saturday. Furious Colts fans appeared to boo the quarterback as he walked down the sideline.

However Luck said he had no doubt he had made the right decision.

"I haven't been able to live the life I want to live," Luck said.

It has "taken the joy out of this game, and after 2016, when I played in pain and was unable to regularly practice, I made a vow to myself that I would not go down that path again," he said.

"I find myself in a similar situation and the only way forward for me is to remove myself from football and this cycle that I've been in."

source: news.abs-cbn.com

Alibaba co-founder Jack Ma announces retirement

SAN FRANCISCO, United States - Alibaba co-founder and chief Jack Ma announced he will leave from the Chinese e-commerce giant Monday to devote his time to philanthropy focused on education.

Ma was an English teacher before starting Alibaba in 1999 and built it into a multibillion-dollar internet colossus.

His own worth has soared along with that of the company, which was valued at $420.8 billion based on its share price at the close of trading on Friday.

Ma told The New York Times that he plans to step down from the company, referring to his retirement as "the beginning of an era" rather than an end.

After being knocked back by US venture capitalists in 1999, cash-strapped Chinese entrepreneur Ma persuaded friends to give him $60,000 to start an e-commerce firm called Alibaba.

As he prepares to leave the company, Ma is among China's super rich. His net worth was estimated at $36.6 billion by Forbes.

Ma will turn 54 years old on Monday, the day he is retiring.

He gave up his university teaching job after discovering the internet.

Seeing an opportunity for small businesses to buy and sell their goods online, he started Alibaba, initially running the company out of his apartment in the eastern city of Hangzhou.

"The first time I used the internet, I touched on the keyboard and I find 'well, this is something I believe, it is something that is going to change the world and change China,'" Ma once told CNN.

Ma has inspired strong devotion among his employees and users, drawing comparisons with late Apple co-founder Steve Jobs -- although he practiced a more open management style.

A devotee of tai chi, he has made references to Chinese martial arts in both business strategy and corporate culture.

Porter Erisman, a former Alibaba employee who made a documentary about the firm, "Crocodile in the Yangtze," said: "What Silicon Valley is known for, he embodies a lot of that with Chinese characteristics -- that spirit of openness, risk-taking, innovation."

Ma graduated from the Hangzhou Teachers College with a major in English-language education, and went on to teach at another university in the city, where Alibaba is still headquartered.

Chinese state media have burnished his rags-to-riches story, saying his parents were poorly educated and his father depended on a monthly retirement allowance of just $40 to support the family.

Ma's success was evident after Alibaba's Taobao bested eBay in China, forcing the US auction site to largely withdraw from the country in 2006.

source: news.abs-cbn.com

Galaxy defender Rogers announces retirement

Former U.S. international and Los Angeles Galaxy defender Robbie Rogers, who became the first openly gay male to compete in a major North American professional sport, announced his retirement from professional soccer on Tuesday.

Rogers, who came out as gay on the same day he first retired in 2012 only to sign with his hometown Galaxy three months later, spent 10 years in Major League Soccer where he was a two-times All-Star, winning league championships in 2008 and 2014, the latter with LA.

"I’ll never forget the feeling of returning to the field in my first game back," Rogers, 30, said in a statement released by the Galaxy. "That feeling of acceptance and support pushed me as an athlete and as a person.

 
"Having the opportunity to win an MLS Cup in my hometown, with my hometown club as an openly gay man will be something I will carry with me for the rest of my life."

After beginning his career in Holland with SC Heerenveen in 2006, Rogers moved to MLS's Columbus Crew in 2007. He joined the Galaxy in 2013 after a stint with English club Leeds.

Rogers, who was ruled out for the current MLS season in May due to nerve damage in his left ankle that required surgery, also won 18 caps for the U.S. men's team and was part of the U.S. team at the 2008 Beijing Olympics.

"I will remain deeply connected to this sport and its surrounding community," said Rogers. "I leave the game full of pride of what I have accomplished as a person and a player. I am looking forward to the next chapter of my life."

(Reporting by Frank Pingue in Toronto; Editing by Peter Rutherford)

source: news.abs-cbn.com

Jinkee planning to ask Manny to retire from boxing after loss

Jinkee Pacquiao is planning to convince her husband, Senator Manny Pacquiao, to finally retire from boxing after losing to Australian fighter Jeff Horn.

The two boxers faced off at the Suncorp Stadium in Brisbane on Sunday, which saw Horn winning by unanimous decision.

Judges scored the bout 117-111, 115-113, 115-113, all in favor of Horn, giving the Australian boxer the WBO welterweight title – the first world championship of his young professional career.

In an interview with ABS-CBN News after the match, Jinkee acknowledged that her husband is no longer getting any younger.

“Yun lang siguro ang ipapakiusap namin sa kanya. Mas magiging happy ako at si Mommy D and, of course, 'yung mga anak ko,” she said.

According to Jinkee, she got worried when she saw that Pacquiao already had cuts in the face.

“Doon ako kinabahan na baka mahinto yung fight. ‘Di ba usually kapag ganoon, natatalo 'yung boxer. Hinihinto na nila tapos winner na 'yung kalaban,” she said. “Nung na-headbutt na siya, doon ako natakot kasi ayaw kong nakikita siyang duguan.”

Nonetheless, Jinkee thought the Pacquiao-Horn match was a very close fight.

“Malakas din kasi si Horn. Pero si Manny, pinakita pa rin niya ang kanyang lakas at bilis,” she said.

source: news.abs-cbn.com

Roach may advise Pacquiao to consider retirement

Manny Pacquiao's unanimous decision loss to Jeff Horn, as controversial as it was, might just be a sign that the "Pacman" can no longer juggle his multiple responsibilities as a boxer and as a Senator.

This, according to his own coach, Freddie Roach.

Roach watched from the corner as Pacquiao repeatedly whacked away at the 29-year-old Horn, and believed that the "Pacman" deserved the decision. However, he also saw how the only eight-division world champion in the history of boxing failed to close out the show after a superb ninth round.

"The ninth round was very good," said Roach, referring to Pacquiao's best round of the bout that saw him nearly stop Horn. "I wanted one more like that, and he just didn't have it."

"That was a very, very busy round, very aggressive, very explosive, good combinations. That was the Manny Pacquiao I've been working to see. He had spurts… but not enough," he added.

Horn wound up with a 117-111, 115-113, 115-113 win to claim the WBO welterweight belt, his first world title. Pacquiao, meanwhile, lost for the first time since dropping a unanimous decision to Floyd Mayweather in May 2015.

Pacquiao did not retire after that fight against Mayweather, opting instead to face Timothy Bradley in April 2016 for what should have been his final fight. He was back in the ring later that year, however, beating Jessie Vargas for the WBO belt.

After his prized ward lost the title to the younger Horn, Roach admits that it may be time for Pacquiao to hang up his gloves for good.

"Yes," he said frankly when asked if retirement is now an option for Pacquiao.

"I'm going to watch the tape and talk to Manny about it," he added. "We will have a discussion about that, yes. Being a senator, and being a fighter, it's really hard."

Roach noted that Pacquiao was able to juggle his life as a boxer and a politician better back when he was a congressman, partly because the "Pacman" did not have as many responsibilities back then. His job in the Senate, however, is much more demanding.

"He likes this better than the other one," Roach said. "For me, looking in, I can see he's liking this job now. He's a lot busier in this job than he was before. Now he's a senator… maybe it is over."

If Pacquiao is to continue with his boxing career, that will require more free time, said Roach, and he admits that may not be possible given the demands of the job.

"It's a difficult decision, but it might be one he has to make," said Roach.

Nevertheless, Roach wants it known that he believes Pacquiao should have won. "I had him up three or four points, but I'm not a judge though," he said.

source: news.abs-cbn.com

7 Ways to Use a Reverse Mortgage as a Financial Planning Tool

In the past, the main purpose of a Reverse Mortgage was to help seniors to fulfill cash needs by allowing them to pull the equity in their homes. But today, many seniors are finding that even if they don’t particularly need to fulfill a cash need, they can take advantage of the benefits of a reverse mortgage as a tool to use strategically in retirement planning. Here are 7 ways a reverse mortgage be used as a financial planning tool.

 
    You can delay Social Security and pension payouts

Some seniors may financially need to use payouts from Social Security and pensions as soon as they are available. However, with the cash from your reverse mortgage, you will be financially sound enough to wait on receiving those payouts, thus increasing how much you receive.

    You can postpone drawing down retirement assets, giving assets time to grow


This idea follows the same formula as your Social Security and Pension payouts. The longer you can delay in receiving your benefits, the longer they have to grow. With a reverse mortgage, you can afford to wait.



    You can increase your cash flow by eliminating monthly mortgage payments

Every month, a monthly mortgage payment takes a chunk out from your income. But with a reverse mortgage, your existing mortgage is paid off. This leaves you with extra money in your pocket that would have normally gone to paying your existing mortgage.

    You have access to a low cost, non-cancellable, GROWING line of credit

With a reverse mortgage, you have an ever-growing line of credit available to you. It grows with time. This means that the line of credit available to you years from now will be much larger than the line of credit available to you now.

    You can protect your portfolio performance in a down market

In a down market, your portfolio and cash flow may not be at its peak performance. With a reverse mortgage, the incoming funds are able to protect you until the market picks back up again.

    You can have annuity-style payments using your home’s equity

With a reverse mortgage, you are able to choose the option of receiving your funds in annuity-style payments. This is perfect for some types of people who would rather plan their income as a steady flow.

    You can replace cash reserves

Some people have less cash in reserve than they would like. A reverse mortgage gives you the chance to catch up and replace your cash reserves, getting you up to speed financially.

These are just a few examples of how you can use a reverse mortgage as a strategic tool. With the right plan in place, you will be well on your way to a solid retirement.

These are just a few examples of how you can use a reverse mortgage as a strategic tool. With the right plan in place, you will be well on your way to a solid retirement.

source: everythingfinanceblog.com

Want to retire at 60? Here's 5 smart ways to prepare

(Editor's note: Life is full of uncertainties. While you can never really predict life’s twists and turns, you can at least prepare for them by thoughtful planning. For the month of September, we are running a series of articles on various protection basics to help you address your own need for greater insurance planning.)

MANILA - Mention retirement and most of us see hours spent relaxing and enjoying the rewards of our life’s work. Under the most ideal circumstances, you would have saved enough to tide you through this phase of your life. By then, you would have less cares with the children grown and the house paid for and with life becoming become much, much easier.

Unfortunately, your life plans do not always pan out and there is the real threat that despite working during all of your productive years, you can still reach retirement with less than what you need in your bank account.

Even if you have stashed away what you think are sizable funds to see you through, remember that you would probably live for 20 or so years after retirement—long enough for your savings to run out.

Considering that old age is also the time when most of us cope with health concerns, being cash strapped at this time could be particularly difficult. Unfortunately, it is a harsh reality for many senior citizens.

How much you would need to protect you through your retirement years depends largely on a number of factors, such as your lifestyle, income, and expectations, so there is no one right number for everyone. You can, however, take steps to protect yourself financially when you reach your retirement years.

By building up passive income sources, you will be able to generate an income stream to protect you in your senior years. Although there are no hard and fast rules on how much you should have in passive income sources to cover your needs, you would want to be able to cover 70-80 percent of your current expenses from both passive income sources and your retirement savings.

To know how much you should be able to cover, estimate how much you expect to have versus how much you expect to spend. The difference is the amount that your passive income sources and retirement funds should be able to cover.

Let’s look at the numbers. If you’re a 30-year-old earning P50,000 monthly today, plan to retire at age 60 and expect to live up to age 85, you will need to have around P26 million to cover your financial needs. That’s because your P600,000 annual income today will just be worth around P330,000 30 years from now due to inflation (which we conservatively computed at 2 percent per year).

To have the same purchasing power that you currently have 30 years from now, you would need to have at least P1.1 million a year. Multiply that by 25 years, and that’s P26 million.

Don’t be discouraged if the number you come up with turns out to be huge. It should simply serve as a wake-up call for you to think about your retirement years. Simply put, protecting yourself in your senior years means taking appropriate measures early enough, when retirement is still a distant reality.

Here are five ways that you can protect yourself for your sunset years:

1. Start building your nest egg early.

You need to have time to build up your nest egg. The earlier you start, the better for you. Your returns build up over the years, allowing you to have enough to cover your later years. Savings accumulated over the years can grow substantially through capital gains or through the magic of compounding, or both. If you are starting retirement planning late, it simply means that you need to adjust your investment strategy so that you can have better yields, allowing you to make up for lost time. Ideally, you should be putting 10-15 percent of your income into your retirement fund.

2. Invest in a good mix of assets.

The last thing you would like to do is to put your life savings in one asset which suddenly loses its value, wiping out your retirement funds. Allocate your investments across various funds exposed to different kinds of risks—traditional safe havens like money market placements and government bonds, as well as more aggressive and high yielding instruments such as equities and foreign exchange. You may also want to put some money in real estate, art, and businesses.

3. Cover all bases.

Do remember to protect yourself against life’s many other risks which may force you to dip into your retirement savings. For instance, you may wish to purchase health insurance to protect yourself from the financial challenges that health problems can bring. Also look into getting accident or disability insurance, and if needed, fire insurance for your home and auto insurance for your vehicle.

4. Review your retirement plan from time to time.

Depending on your life changes, your retirement needs may grow. It is therefore important to check if you need to recalibrate your pension payments to reflect your needs more accurately. Retirement planning is a lifelong process of constant realignments to ensure that you are adequately protected in your later years.

5. Consult a financial professional.

If you have no time to understand all the different investment choices available to you, one short cut is to put money in various mutual funds or Unitary Investment Trust Funds (UITFs), which are professionally managed, pooled funds invested in various instruments to meet different investment objectives and profiles. To ensure that you are saving enough and investing according to your financial goals, do not hesitate to check with a financial professional, who can guide you through your investment decisions.

With careful planning and discipline, you can protect your future and ensure that your retirement years are blissful and stress-free.

source: www.abs-cbnnews.com

Why China is raising retirement age

BEIJING - China's pension fund will come under tremendous pressure to break even in coming years and as such, the government needs to gradually raise the official retirement age to salvage the finances, a top official said on Tuesday.

Yin Weimin, minister of human resources and social security, said the government will gradually raise the official retirement age, which is as low as 50 for some female workers, but stressed that any policy changes will be phased in over five years.

He did not say when retirement ages will be raised.

Analysts have long warned about China's state pension crisis and the severe funding shortage, with some estimating that the cash shortfall could rise to as high as nearly $11 trillion in the next 20 years.

Yin said the finances were not as dire for the moment, but warned about challenges ahead.

"The pension fund faces tremendous pressure in terms of breaking even in future," he told reporters at a news briefing on the sidelines of the annual meeting of China's parliament.

The fund's income stood at 2.3 trillion yuan ($367.3 billion) in 2014, exceeding its expenditure of 2 trillion yuan for the year, he said.

But in coming years, the proportion of Chinese over the age of 60 will rise to 39 percent of the population, from 15 percent now, Yin said.

That would depress the dependency ratio - the ratio of the number of people younger than 15 or older than 64 to the working age population - to 1.3 from the current 3.04, he said.

And as China's economy slows to an expected 25-year low of around 7 percent this year, Yin cautioned that the country's labour market will also face greater pressure.

Employment fell more year-on-year in January and February compared with the same two-month period a year earlier, he said, but added that he was confident China can still create more than 10 million jobs this year.

Chinese leaders have repeatedly said they will tolerate slower economic growth as part of the reform process so long as employment levels remain healthy.

And some officials have said the Chinese labour market held up last year despite the economic slowdown due to a fast-growing services sector, and brisk job creation in new emerging industries such as the e-commerce sector.

source: www.abs-cbnnews.com

The silent struggle of senior citizens with debt

(The writer is a Reuters contributor. The opinions expressed are his own.)

NEW YORK - When Wanda Simpson reached retirement a couple of years ago, the Cleveland mom had an unwelcome companion: Around $25,000 in debt.

Despite a longtime job as a municipal administrator, Simpson wrestled with a combination of a second mortgage and credit-card bills that she racked up thanks to health problems and a generous tendency to help out family members.

"I was very worried, and there were a lot of sleepless nights," remembers Simpson, 68. "I didn't want to be a burden on my children, or pass away and leave a lot of debt behind."

New data reveal that Wanda Simpson has company - and plenty of it.

Indeed, the percentage of older Americans carrying debt has increased markedly in the past couple of decades. Among families headed by those 55 or older, 65.4 percent are still carrying debt loads, according to the Washington, D.C.-based Employee Benefit Research Institute (EBRI). That is up more than 10 percentage points from 1992, when only 53.8 percent of such families grappled with debt.

"It's a two-fold story of higher prevalence of debt, and an uptick in those with a very high level of debt," says Craig Copeland, EBRI's senior research associate. "Some people are in real trouble."

To wit, 9.2 percent of families headed by older Americans are forking over at least 40 percent of their income to debt payments. That, too, is up, from 8.5 percent three years earlier.

The only bright spot in the data? The average debt balance of families headed by those over 55 has actually decreased since 2010, according to EBRI, from $80,564 to $73,211 in 2013.

Still sound high? It is especially so for those heading into reduced earning years, or retiring completely.

The primary culprit, according to Copeland: rising home prices and the longer-term mortgages that result, often leaving seniors with a monthly nut well into their golden years.

Seniors are even dealing with lingering student debt: 706,000 senior households grappled with a record $18.2 billion in student loans in 2013, according to the U.S. Government Accountability Office.

It's not an easy subject to discuss, since older Americans may be ashamed that they are still dealing with debt after so many years in the workforce. They do not want to feel like a burden on their kids or grandkids, and so keep their financial struggles to themselves.

But financial experts stress that not all debt is automatically bad. A reasonable mortgage locked in at current low rates, in a home where you plan to stay for a long period, can be a very intelligent inflation hedge.

"I always suggest clients consolidate it in the form of good debt, like a mortgage on your primary residence," says Stephen Doucette, a planner with Proctor Financial in Sherborn, Massachusetts. "You are borrowing against an appreciating asset, you don't have to worry about inflation increasing the payment, and the interest is deductible.

As long as this debt is a small portion of your net worth, it is okay to play a little arbitrage, especially considering stock market risk, where a sudden decline could leave older investors very vulnerable.

"A retiree who has debt and a retirement account with equity exposure may not have the staying power he or she thinks. The debt is a fixed amount; the retirement account is variable," says David Haraway, a planner with LPL Financial in Colorado Springs, Colorado.

It is important not to halt 401(k) contributions, or drain all other sources of funds, just because you desire to be totally debt-free. Planner Scot Hansen of Shoreview, Minnesota has witnessed clients do this, and ironically their good intentions end up damaging years of careful planning.

"But this distribution only created more income to be reported, and more taxes to be paid. Plus it depleted their retirement funding source." he says.

Instead, take a measured approach. That's what Wanda Simpson did, slowly chipping away at her debt with the help of the firm Consolidated Credit, while living off her Social Security and pension checks.

The result: She just sent off her final payment.

source: www.abs-cbnnews.com

Philippines seen as one of best retirement havens for Americans

MANILA, Philippines - The Philippines is included in Forbes magazine's list of 20 best foreign retirement havens for Americans.

"For U.S. retirees, the principal appeal of the Philippines is a low cost of living in a tropical environment full of English speakers and outdoor beauty," Forbes said, in a feature titled "20 Best Foreign Retirement Havens For 2015".

Forbes further noted that foreign income is untaxed in the Philippines. Plus Americans can get permanent residency "on a minimal showing of retirement income."

Among the popular locations for American retirees are Tagaytay and Subic.

"Popular locations include Tagaytay, a suburb of Manila, the capital, that is elevated and therefore cooler, and Subic Bay, with an infrastructure from the old U.S. Navy base," Forbes added.

Another advantage is the number on non-stop flights between Manila and the U.S., although the average flight length is 15 hours which may be too far for most Americans.

Although there may be concerns about political stability and security in some of the countries on the list, Forbes noted that these are usually in isolated areas.

"A few countries still have areas with unrest or crime, but they’re easy to stay away from. Examples include cities in Mexico on the border with the U.S. and a far-flung province in the Philippines fighting Moslem rebels," it said.

Aside from the Philippines, two other Asian countries made it to the list, including Thailand and Malaysia.

The Forbes list of retirement havens also includes Canada, Australia, Chile, Ireland, France, Colombia and Costa Rica.

source: www.abs-cbnnews.com

Planning for Retirement? Consider Pre-paying Your Mortgage

As you look ahead to retirement, you face a number of decisions for your changing financial future. This includes deciding whether to move to a new city for your retirement years, changing your lifestyle to live on your retirement income and potentially pre-paying your mortgage.

Some retirees may have already paid off their mortgage years ago, but others have continued with this monthly expense. There are benefits to pre-paying mortgages and here are a few reasons why this is worth exploring.

An individual decision

First, the decision to pre-pay your mortgage is an individual decision with numerous factors affecting this.

Jeff Warnkin, a financial adviser at, JL Smith Group in Avon, Ohio, says even though there’s no right answer for a retiree, he prefers his clients to pay off their mortgage.

Why? He said, “I’m in favor of paying off the mortgage, as long as it doesn’t come at the expense of funding your 401(k), Roth IRA and things of that nature.”

Still, he added, it’s not only an individual decision but also one that should be from a bigger plan. Warnkin said, “Ideally, I’d like to see the last payment coincide with the date you retire. A fair number, 50 percent of our retirees, achieve that. But, as life unfolds, sometimes people have to take a home equity line, or help a child with a down payment on a house, medical issues, and sometimes they arrive at or near retirement with a mortgage.”

For some retirees, paying off their mortgage just prior to entering retirement may be the best option for them.

Emily Sanders, managing director at United Capital in Atlanta, said, “In general, if client has the liquidity to pay off the mortgage – a lump sum from their job, retirement funds that are available but not heavily taxed – we would encourage them that to pay off a mortgage to enter retirement as close to debt free as possible.”

Realize a good return

Similar to paying off any debt, by cutting down your mortgage payment, you’ll receive a guaranteed return. On the high end, the return will be your mortgage’s rate (if you don’t itemize your mortgage and don’t deduct mortgage interest on your tax return), such as 5 percent to 7 percent.

On the other hand, if you deduct mortgage interest, then the rate of return will vary from the itemized deductions exceeding the standard deduction. The amount of interest you pay will decline every year because the principal portion of mortgage payments increases each year.

Enjoy tax savings

Along with receiving a return, you’ll also undergo fewer expenses in retirement. This means less income will be needed. And this will also bring fewer taxes thanks to U.S. taxation system as well as fewer taxes on your Social Security benefits.

In essence, you’re cutting your retirement expenses in many different ways.

Review opportunity costs

While the aforementioned reasons all sound promising as you consider whether to pre pay your mortgage, one cost you can’t ignore is opportunity costs.

How will this affect your savings?

Let’s say that instead of paying off your mortgage, you made an investment that would return more than your mortgage rate. As for your retirement account, by adding to it, it offers tax advantages that would go away if that money went to your mortgage.

Regardless, the end goal for most retirees is live financially independent. And when you’re paying off debt, this ideal doesn’t happen. In fact, according to Securian Financial Group, just 29 percent of retirees are debt-free.

With a mortgage, the lower the interest rate, the easier it is to manage debt. And because many mortgage rates are low, you make take your time paying it off; however, if you’d like to enjoy your retirement years, after you’ve spent some money from your retirement accounts, then paying off the mortgage could be a good strategy.

This could also cause you to review this decision not only as a financial one but an emotion one.

John Gajkowski, co-founder of Money Managers Financial Group in Chicago, said when he discusses paying off the mortgage with clients, he addresses this combined decision. He said of his clients, “Some people, even though they can afford to pay a mortgage, emotionally they want to get out from underneath it. They want to be free and clear. We have to figure out what is more important, emotional or financial.”

Pre-paying your mortgage is an important decision and a personal one. Ask yourself some of the aforementioned questions. If you still have financial concerns, meet with a financial professional who can help answer your questions and move you toward a retirement that doesn’t include paying a mortgage.

source: totalmortgage.com

Working at a BPO? Here's why you should start saving now

MANILA, Philippines – Employees of business process outsourcing (BPO) firms in the country should consider saving for their future and planning for retirement as early as now, an expert on financial planning said.

Joyce Tankeh, a financial planner at Sun Life-AIM, said savvy BPO employees who are in their 20s and 30s tend to spend more because of their hefty paychecks.

Fresh college graduates can get paid a monthly salary of P20,000 at BPO firms.

“A lot of them are in their 20s, 30s, and not a lot of BPO companies really prepare for their employees’ retirement. So it’s a concern also. If they could just sit down and do their pencil pushing and reflect on the benefits that they get from their companies,” Tankeh told ANC’s “On The Money.”

Tankeh said the path to financial freedom for BPO employees begins at setting specific goals.

“They have to know what their goals are. The short-term, medium and long-term goals. It’s not just the physical goals. Let’s say if you like to travel next year, it’s doing something about it on a regular basis and not being impulsive,” she said.

Tankeh highlighted the importance of saving up for short-term goals, which include an out of town or out of the country trip and buying a gadget worth P30,000.

“It’s no joke saving up for a P30,000 gadget knowing that a lot of people only get to save P1,000 a month. It’s really something you need to plan on,” she said.

A medium-term goal includes buying that dream house or dream car while a long-term goal is retirement.

“Let’s say if you’re 25, how can you retire by 40? How can it be realistic?” she said. “That’s a common thing. I have a lot of clients who are in their 20s who say they want to retire in their 40s.”

Tankeh said setting goals are important in saving up, but it has to be backed up by a plan. She said goals should be accompanied by a clear plan on how to reduce expenses.

“Knowing expenses is important because it’s useless to have goals then not translating how you are going to push through with it. What’s the game plan?” she said.

Tankeh said failing to save up could be a result of bad habits like excessive credit card use and unnecessary personal loans.

She said the transition to becoming a saver from a spender requires a change in mindset, focusing on specific goals and being firm on reaching them.

“It’s telling them, are you really serious in making sure that you are getting what you want at a certain period of time? Then we work together, that’s where [a financial planner] comes in,” she said.

source: www.abs-cbnnews.com

Want to retire in 12 years? Follow these saving tips

MANILA, Philippines – Retirement is possible in 12 years for a young professional who is following the ideal formula of saving and investing, a financial planning expert said.

Joe Ferreria, president of MoneyDoctors Inc. said any person can plan finances by doing personal financial diagnostics in five steps -- calculating savings potential,
calculating personal liquidity, calculating personal liquidity ratio, calculating expenses, and expense audit.

He said it is ideal to save 30% of income into a product that yields an average of 12% interest a year.

An employee can calculate savings potential by getting a percentage of monthly income, multiply that by 12 months, then multiply the product by 5 years.

“Compare how much you have versus what you aspire for. So therefore you will know that if the amount you have in the bank is greater than your potential to save, you’re doing very well. If it’s not, therefore you need to do a little bit more work in saving money,” Ferreria said on ANC’s “On The Money.”

Calculating personal liquidity comes from annual job income and annual income from investment.

The goal is for funds to generate income equal to your own.

For example, if annual income from your job is P200,000, and annual income from investment is only P100,000, this only equals 50% of the active income.

The passive income should equal the active income.

“You can continue to work, but you can slow down a little bit and enjoy your life,” said Ferreria.

The personal liquidity ratio, meanwhile, is the percentage of assets you should have in cash, which ideally is the figure acquired by adding 10 to a person’s age.

“If you’re 70 years old, plus 10, 80% should be cash assets because as you grow older, you don’t need more real estate but more cash flow,” Ferreria said.

For expenses, Ferreria noted that it should be divided into three categories: survival, lifestyle, and work-related.

He said it is important to stay within 10% of income for lifestyle and work expenses and within 50% for survival expenses.

“I admire the Chinese for their thrift and one of the things I’ve noticed with them is that to save on expenses, they will live above their stores, and you will see that even if their income has grown exponentially, they still live above their stores. It takes a long while before they move to a better house. They allow the income to go far ahead while the expense, they keep it at a very simple ratio over income,” he said.

To slow down the outflow of cash, Ferreria advises to cut back on expenses and divide the expenses into a weekly basis.

He added that amortizations should not be serviced with more than 15% of income.

“You add up all of your assets. For example it comes up to about P500,000. Six months later you add all your assets again, if it gets to P600,000 from P500,000, it means that you have started to succeed. If it did not, then you need to be more honest with yourself,” he said.

After sorting out the diagnostics and with enough savings, employees can begin investing.

Ferreria said one month of expenses should be placed into disbursement account, another month of expenses into time deposit for unforeseen circumstances, and 30% of income into a fixed income mutual fund yielding 8 to 12%.

“You can’t go wrong if you stay with the top 3 banks. On a regular basis, whatever is in excess of your income, you just put it there,” said Ferreria. -- With a report from Melissa Gecolea, ANC

source: www.abs-cbnnews.com

Don't Count on Home Equity to Fund Retirement

Many people are counting on the equity they have built in their home to help fund their retirement years. But folks who are living without quite enough saved for retirement should be realistic about what that equity can provide. Here are a few reasons to be cautious about relying on home equity to provide for you financially in retirement:

Your spouse will still need a place to live. Some people assume they can use the proceeds of their house if they ever need to check themselves into a nursing home. But you can't sell your home for long-term care expenses when your significant other still needs a place to stay. Don't assume you will be living by yourself by the time long-term care is needed or that your spouse will need it at the same time. Plus, the equity in your home may not even be enough to cover the cost of a nursing home.

The value of your home equity could change. Estimating how much equity you will have in your home if you ever need the money is just a guess. You might refinance in the future, and extend the date you will be totally debt free. House prices also tend to go up and down without warning. Plus, you'll never know how much it will cost you to extract equity from your home if you ever need the cash.


Commissions and taxes will siphon off a big chunk of the value. The standard arrangement is asking the seller to pay the buy and sell realtors 6 percent of the final selling price. Then you have to contend with the possible capital gains taxes. Sure, $250,000 (or $500,000 for couples) of the gains can escape tax free, but inflation will make these seemingly large numbers much smaller in a few decades when you actually need to sell. You might also want to put the house on the market well before you actually need the cash. If you wait until the last minute you may have to sell the property at fire-sale prices because you are in a hurry.

Reverse mortgages can be very costly. Reverse mortgages allow you to continue to live in your home for the rest of your life while also getting some money, but you'll get far less than what your house is worth. The fees and interest rates for this type of loan are often rather high. Plus, if your circumstances change and you want or need to move, the loan becomes due. You may find years after taking out a reverse mortgage that you want to move out. If you don't live there for whatever reason, you'll need to start paying back that loan, which can be a huge strain on your budget.

Downsizing will net you less cash than you probably think. Many people hope to downsize and use the left over equity to supplement their nest egg. This is a great strategy because not only will you get some equity, but the cost of upkeep at your smaller place is likely to be permanently reduced as well. But be realistic about how much money you'll gain from this maneuver. There are extra costs every time you move, so factor that into your calculations in addition to the commissions and taxes.

Home equity can certainly be tapped in case of emergencies in retirement, but often works best as a last resort. No matter what, you'll always need a place to live.

source: dailyfinance.com

5 Counterintuitive Financial Tips That Work

Russell Holcombe, a certified financial planner based in Atlanta, says he's tired of constantly warning clients against making bad money choices. Part of the problem, he says, is that popular financial advice is often wrong. That's why he finds himself urging people to rethink purchasing houses that would max out their budgets, or putting so much money into retirement accounts that they're unprepared for emergencies.

"I had a certain level of exhaustion from having to protect people from a bad decision-making process," he says. Through his work with clients, he says he realized that their ability to recover from negative financial events depended more on how they had structured their lifestyle than on any investment strategy. That's why in his book, "You Should Only Have to Get Rich Once," he offers counterintuitive advice that's centered more on life decisions than stock market ones.

Holcombe offers these five under-the-radar strategies to help you avoid what he calls "financial suicide":

Buy a smaller house. "During the housing boom of '04 and '05, you would hear people go out with real estate agents who said, 'Your income lets you buy an $800,000 house,' " Holcombe recalls. Most people would go ahead and buy a house at the highest end of what they could afford, while just a fraction would hold back and say, "We're only going to buy a house based on one income," Holcombe says. The people who made that choice ended up coming out ahead during the turbulent economy, when many people lost jobs, he adds.

Don't save for retirement. Okay, save for retirement, but don't tie up so much of your savings in post-tax retirement accounts like 401(k)s that you can't weather financial storms when they hit, Holcombe advises. "The ability to survive is based on the ability to adapt," Holcombe says, and tying up money in certain types of restrictive savings accounts, such as retirement and college savings accounts, means you have less flexibility to invest in other things or pay bills.

Many people end up paying fees and penalties when they have to withdraw from retirement accounts early, Holcombe points out. So yes, save for retirement, but don't forget to prioritize shorter-term savings accounts, too. If you're an entrepreneur, you might want to consider investing in your business instead of your retirement account, he adds.

Forget about stocks. "For financial advisers, all roads lead to stocks," Holcombe says, adding that such a one-track mindset is a problem. "For the people that I know who are successful and endure financial traumas, the market is irrelevant to them. It's not the reason for their success, it's a tool," he adds. So while investing in stocks might be part of a larger financial strategy, Holcombe recommends against getting too preoccupied with investment strategy.

Instead, focus on a "perpetual income stream." Holcombe says everyone should consider how they can build their own "perpetual income stream," which consistently pays out cash over time. A doctor might buy a medical building that generates rent, a writer might generate royalties off of a book, a retiree might invest in a dividend-paying portfolio. "Perpetual income streams are the holy grail in business, from Comcast to Netflix. Everybody is trying to move to that model because they get paid whether you tune in or not. Some people have the talent to create them and some don't," he says. "There's no one size fits all," he adds.

Holcombe urges people to avoid traditional investments that generate income, like annuities, because he says "they are super expensive and you can't change your mind."

Calculate your "lifestyle cash flow." When people try to get on top of their money, Holcombe says they often start tracking all of their expenditures, from gas to food, or their net worth. He calls such calculations "totally meaningless." Instead, he says, people should focus on the expenses that can't be changed quickly, including a mortgage or debt payments. "It shows how quickly you can adapt to a traumatic event [like a job loss]," he says. He uses the term "lifestyle cash flow" to describe the cash flow required each year to pay the bills.

As long as you're earning enough money to cover those expenses, then you can feel relatively financially secure, Holcombe says, adding, "If you're spending money on something that's not making you happy, then kill it quickly."

source: dailyfinance.com

Who says you can only retire at 65?

MANILA, Philippines - Retiring at an early age is perhaps every working man’s dream.

Under Philippine laws, the compulsory retirement age is 65, but some companies have set the clock to age 60. Instead of waiting until you are 65, or 60 depending on the company you work for, why not shave several years off and retire at the age of 55 or 50?

At this time, you still have the strength and the wits to give your wildest dreams a chase. If you wait until 65, you might already have incurred a couple of health conditions that may hinder you from fully enjoying the fruits of your labor.

Exactly how much money will you need to put away?

There are a number of retirement calculators online to help you arrive at your magic number. But if you want to keep things simple, you may just do the following: Multiply 80 percent of your pre-retirement income to the number of years you expect to live after 50. This is the common advise found in most personal finance books, and a good rule of thumb to get you started.

Now that you’ve got your magic number, you will need to do some serious planning matched by strong willpower to get to your goal of retiring by 50. Here are some ideas that may help you along:

Save now! Saving up for retirement is one of the easiest things to put off because it seems so far away. But given your “Retire by 50” deadline, you’ll be more motivated to get a move on. Besides, saving now means you will enjoy the full benefits of compounding interest.

Follow your money trail. There are two ways for you to save: you either cut back on your expenses or pump up your earnings.

The first, though seemingly simple, requires a strong sense of discipline and some good old fashioned common sense thinking. Think twice, for example, about incurring recurring expenses. If you become a member of a fitness club, you are not only enrolling yourself in a bunch of Zumba or yoga classes, you are also buying into a whole new lifestyle. You’ll need to dress a certain way, get a health juice after your workout, and pay for parking. That’s quite an investment so think hard before you commit.

Earning more, on the other hand, requires creativity, ingenuity, and a whole lot of hard work. Apart from doing weekend work using your skills and talent, consider introducing a product or service that addresses a personal concern. This is exactly how the mompreneur phenomenon came about.

Women started making products that answered their own concerns because traditional manufacturers weren’t making them such as clothes for breastfeeding mothers, and special detergent for baby clothes. A lot of fortunes have been made this way.

Invest time to make more money. If you want to make your money work hard for you, you have got to know the ins and outs of investment. Read books on personal finance. Scour the internet for credible and helpful sites. You might find the language hard to understand at first, but in time, you will be able to have a good grasp of the industry.

Check out and sign up for money workshops — and make sure you get your money’s worth by asking the resource speakers all your burning questions. It may also be a good idea to seek the services of a financial advisor who can give more critical insights.

Analyze different retirement plans. There are several financial products available in the market that can be tailored as a retirement plan, with a menu of benefits thrown in including life insurance and hospitalization coverage.

In 2008, the Personal Equity and Retirement Account (PERA) was signed into law. A voluntary retirement account, PERA contributions are invested in “eligible/qualified” investment instruments including shares of stock in mutual funds, annuity contracts, insurance pension products, shares of stock or other securities listed and traded in the local stock exchange, exchange-traded bond, and government securities.

PERA contributors enjoy tax exemption privileges from the earnings of all PERA investments. However, PERA only accepts a maximum contribution of P100,000 (for Filipinos living in the country) and P200,000 (for overseas Filipinos). Go over the details of these plans with a critical eye before deciding which one is right for you.

An investment portfolio with a good mix of stocks, bonds, and other assets is ideal. Real estate, especially those that generate rental income, is another option worth looking into as time is on your side.

If you prefer the stock market, make sure you stay in the game. Don’t be tempted to pull out when you take a hit. Be patient, be discriminating, and you’ll reap the rewards soon enough. Be on your toes always. Analyze the risks and growth rates of your investment portfolio on a regular basis.

When you’re younger, you might go for higher risk investments with a better rate of return. After all, you would still have time to recover should the market play tricks on you. As the years wear on, however, you would have to take on a more conservative tack. You wouldn’t want to risk your money as your retirement date nears.

Put together, these strategies would help you achieve your goal of retiring at 50. Even if you don’t reach your magic number by your deadline, don’t get frustrated. Saving for retirement never hurt anybody—and you’ll still be ahead of everybody else!

source: www.abs-cbnnews.com

5 Golden Rules For Investing In Annuity

Regardless of your age, your retirement is something that should never be too far away from your thoughts. But as you begin to reach a ‘certain age’, the importance that your pension holds and the role it will play in your future becomes a much more real prospect.

The earlier you start a pension fund, the greater the rewards. But, the tick-tocking of retirement draws closer, people begin to look at making investments to help bolster their pension pot. One concept many people consider is finding an annuity payment. This pays a guaranteed income for life, but is subject to varying interest rates.

To Risk Or Not To Risk?

Knowing what options are available to you will help put you in great stead when it comes to making the most of your hard earned cash. With this in mind, it is always worth seeking the expert of advice of a specialist financial advisor. Using their experience and expertise, they will be able to guide you in finding the right financial retirement plan.

The recent low level of annuity interest rates has seen many people lose out on their investments. This means the amount of guaranteed income paid that can be purchased from a pension fund is at its lowest ever level. This only emphasises the need for investors to consider their options in even more detail.

So if you’re considering investing through annuity, what things must you consider?

Golden Rule #1

Ensure that you have other sources of income or capital to fall back on. Do not put all your eggs in one basket. In today’s climate, there is no guarantee that annuity rates will improve should your decision be deferred so it’s important be stable should your future income fall in value.

Golden Rule #2

Make sure you understand the risks that are involved with your chosen annuity investment. Investments can come with a number of possible outcomes and inconsistent variables so be sure that you fully understand your investment and its consequences

Golden Rule #3

Make sure you have considered all options available to you. The beauty of retirement is that it can be what you make it and, depending on your income, there are a number of options you can opt for.

Golden Rule #4

A risk is a risk for a reason. Many people facing retirement face what is called a ’risk paradox’ between option of guaranteed annuity no longer proving a just investment due to rising inflation. Not only that, your personal circumstances may change, opening up a number of possibilities for you to consider.

Golden Rule #5

Acquire the services of a retirement specialist financial advisor. With their experience and expertise in retirement planning and the options available to you, they will be able to offer guidance on how to invest your money. They will take the time to understand you, your financial situation and your retirement plans before suggesting the most beneficial and secure route.

Make The Most Of Your Retirement

By following these golden rules, you will be able to make the most of your pension pot, giving you the options to plan the retirement you deserve.

source: everythingfinanceblog.com

4 Tips For Effective Savings

When you set about devising a personal finance strategy, you may find yourself considering anything from how to maximize your income to how to start planning for retirement as early as possible. The fact is, “personal finance” is a very broad term that covers different things for different people. However, there is one thing that ought to be at the top of everybody’s list, as it dictates the way your entire financial life is run: maximizing savings. Whether you are working your first job and concentrating on each month’s rent, or leading a successful career already, finding ways to save money can help you to be more economically stable, which in turn makes your life far less stressful. With that in mind, here are four miscellaneous tips for maximizing savings that can help you no matter what your financial situation.

1. Eliminate Debt

Eliminating debt altogether is a tall order, but even chipping away at it can leave you far more financially flexible. One great concept to consider as you devise ways to tackle your existing debts is the “debt snowball” idea, which many consider the quickest way to eliminate multiple debts. The concept is actually fairly simple: figure out an amount that you can put toward paying off debts each month, and as you begin to eliminate debts, keep that amount the same. This way, once your smallest debt is eliminated, the money that would have gone toward paying it “snowballs” into the funds for your other debts.

2. Conserve Water & Electricity

Let’s face it: most of us waste at least some water and electricity, and cutting back on this waste is one of the simplest and most effective ways of saving money in a home environment. Little things like turning off the sink while you brush your teeth, taking shorter showers, and turning off lights and other electronics when not in use can drastically reduce your water and electricity bills. Not only is this an environmentally responsible practice, but it can result in significant savings each month.

3. Invest For Stability

Instead of investing money in high-risk stocks and bonds, consider making a few financial investments simply for the sake of stability. For example, you might choose to invest in gold at BullionVault.com, so that some of your money can be tied up in gold. This keeps that wealth from being subjected to potential drops in currency value that can occur in difficult economies. You won’t make significant financial gains investing in gold, but you can protect your existing assets.

4. Shop Online

If you haven’t yet begun shopping online, now is the time to do so. You can purchase just about any product you could think of on the Internet, and in most cases you can find better prices than you would in stores. Occasionally shipping costs can even out this price difference, but when you need to go shopping it is always worth checking online – over time, it may result in major savings.


source: lifeandmyfinances.com