So you’ve been reading these “Know Your Mortgage” posts for a while now (humor me, internet) and you feel pretty confident with your discoveries so far. The mortgage process once was a labyrinth of information, but with the help of these blogs you’ve made the right turns to get out alive (bear with me). However, just when you think you’ve got a firm grasp on a situation the proverbial Minotaur in the labyrinth appears to turn everything on its head. What turned my head askew was the concept of a reverse mortgage. After I’ve learned so much about different types of home loans, you’re telling me they can go backwards now? Just unfair if you ask me, but reverse mortgages are very helpful for those who qualify. So let us venture onward into the world of reverse mortgages.

Alright, What Exactly Do You Mean by “Reverse Mortgage” ?

Well think of how a traditional mortgage works, fixed-rate or adjustable rate, and imagine the process backwards.

So…I Get Paid Money to Not Live In a House?

No, no, no. Okay, that was a bad set up. A reverse mortgage is also known as Home Equity Conversion Mortgage, or HECM, and it has a few requirements in order to qualify. It’s meant for older homeowners who may have troubles paying off a mortgage pre or post retirement. If an applicant is approved for a reverse mortgage, then their remaining payments on the house (if any) are wiped clean by their current equity. The only requirements for this are that the applicant(s) must be 62 or older, have the house their filing on be their primary residence, and they must have enough equity in the house to qualify.

Wait, What’s Equity?

It’s the “E” part of HECM, and it’s the difference between the current value of your home and how much you still owe for the property. You can raise the equity on your home by making home improvements, seeing if your house has risen in value over time, or just paying on your mortgage. If approved for a reverse mortgage, the applicant can get their equity back.

How So?

Well, we’re not there just yet. If you’re interested in a reverse mortgage and you qualify, you must get counseling about it from a government-approved agent beforehand. This is just for him or her to explain how the whole reverse mortgage program works, your responsibilities with it, and an estimate of your loan advances.

Also, there are costs that are paid to get the reverse mortgage set up; a mortgage insurance premium, origination fee, title insurance, a real estate appraisal and more. I can’t give an accurate cost for individual things or a total because I wouldn’t want to mislead, not to mention the prices will vary based on the home and where you live. Regardless, after that’s handled, you can get the money in one of four ways: a monthly payment, one lump sum, a line of credit, or any mix of the three mentioned.

So, You Just Have Like Unlimited Money After That?

No! It’s all coming from the previous equity you’ve built for you property. Remember, you stop paying on the mortgage once you start a reverse mortgage, so amount you owe will still continue to rise on the property. As a result, this will make your equity (possibly) shrink over time. Don’t be swayed though, there are a ton of benefits to a reverse mortgage. As mentioned before there are no more monthly mortgage payments, the house is still yours, and yours to give to your children or whomever in a will. You don’t even have to hit a required credit score or have a certain income bracket, and it’s insured by the federal government too.

When Does the Reverse Mortgage Get…Reverse Paid Off?

Beautifully put. When the loan is “done” (which can mean the house is sold, the owner moves or passes away amongst other things) the amount owed is whatever is cheaper between the home’s value or the current mortgage. From there the amount owed can be re-financed to keep the home, turned over to the lender, or sell the home and cash out the equity.

Sounds Fair Enough. Can I Apply for One Today?

Are you 62 or older?

I Don’t Know. You’re Writing These Questions.

Fair point; lets wrap this up before we get too meta.  As said before, a reverse mortgage can help those who are older, have most or all of their house paid, and need money for other things. As always, post additional questions below if you have more burning questions about reverse mortgages.

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Monday’s are generally my least favorite days of the week. This past Monday was no different. It all started when I woke up. The realization that football season is officially over until August hit me at precisely the same time I realized my rent payment was late. Not a good way to start the day, right? That was only the beginning.

A half hour later, I opened my front door to start my car using my remote starter. Of course the temperature was below freezing and snow was falling (have I mentioned I hate winter?). Oh, and to top it off, my car wouldn’t start. This all happened in a matter of about an hour. To make a long story short, a neighbor helped me jump start my car and I was two hours late to work. After work, I got my car battery checked. To top off what had already been a terrible day, I was told I needed a new battery. AWESOME!

While it probably seems like nothing could brighten up a crappy day like I had, that’s actually not true. In fact, I got a little reminder that made me somewhat forget about everything that happened earlier. Any idea what that reminder could have been? I’ll give you a hint: it’s got something to do with a small chunk of cash coming my way in the near future. I’m talking about my tax refund.

Before you get excited, it’s important to remember that not everyone receives a refund. It all depends on what you claimed on your taxes throughout the year. If you claimed “0” on your taxes, you had more money taken out of your paychecks, which means you’ll get money back in the form of a tax refund. If you claimed “1,” you had a little less taken out of your paychecks, which means you’ll most likely get some money back. If you claimed “2,” you could end up owing money because you had the least amount of money taken out of your paychecks.

For the purpose of this blog, we’re going to pretend that you will receive a tax refund of $1,000. What would you do with that $1,000? It’s a question that many people will have to answer over the next several months. Is the money burning so much of a hole in your pocket that you need to spend it ASAP, or are you fine hiding it away in your savings? I’ll give you some suggestions on what to do with the money below.

Emergency fund

I’m sure the first thing you want to do after receiving a check for $1,000 is not spend it, right? Well, putting some of that money into a savings account to give yourself some leeway in case you run into a financial bind might not be a bad idea. It’s recommended that you have at least six months of funds saved up in case you get laid off or have to take an unexpected and extended leave from work. It’s also nice to have some extra money for when you have car problems, such as a battery that needs to be replaced.

Pay debt

Whether it’s credit card debt or school loans, why not put some (or all) of the money toward getting rid of your debt? The quicker you take care of the debt, the less you’ll have to worry about it in the future. Just think, if you pay it off now, you can use your next tax return for something else.

If you don’t have any credit card debt or school loans to pay off, why not put the money into an account to use strictly for paying car payments, rent, or cable and internet? That way, you won’t be taking money out of your paychecks to pay for those because you can use your tax refund to take care of the bills.

Invest

Do you know that it’s recommended to start saving for your retirement in your 20s? That may come as a surprise to you, but when you think about it, it makes sense. The sooner you start saving, the more money you’ll have when you retire. There are many different ways to begin saving, including IRAs and 401(k)s, so do some research before making your selection.

Needs

Is there anything you or your family really needs? Make sure to take care of the necessities before anything else. Have you been putting off getting a cavity filled because you haven’t had the money? What about getting new brakes on your car? It’s probably better that you take care of these issues before they develop into something worse.

Vacation

Even I can admit that the first four ideas seem boring. Who wants to save money when they can use it to have fun? I’ll give you the OK to do that only if you have an established emergency fund, no debt, an existing retirement fund and zero needs. If you fall into that category, why not take a vacation? As I’ve mentioned on countless other occasions, I’m not a fan of the winter. A nice trip down to Florida to relax on the beach and golf 18 holes sounds like a dream come true to me. If you can swing it (financially and golf speaking), take a vacation.

Wants

If you don’t need anything and don’t want to take a vacation, what do you want? If it were me, I’d consider a new set of golf clubs or season tickets for my favorite sports team. If you aren’t a big sports fan, how about a shopping spree at the mall?

Home improvements

Are you looking to remodel your basement or add on to your house? If so, your tax refund is a good place to start. It probably won’t cover the entire cost if you’re looking to make some major modifications, but it’ll help lessen the blow.

Now that I’ve given you several ideas on how to use your tax refund, what else could you use your refund for? Let us know in the comments section below!

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This guest post comes from the editors of the The Allstate Blog, which helps people prepare for the unpredictability of life.

Increasing numbers of baby boomers are transforming their traditional retirement years with late-in-life employment, or what’s becoming known as an encore career.

There are different reasons to work during retirement: Some people are pursuing personal passions they may have set aside earlier in life—such as teaching, social work or environmental causes—while others are spurred by a layoff or looking to supplement their retirement income.

According to encore career advocate Marci Alboher, more than 9 million people are currently employed in a post-retirement job, and an estimated 31 million more are interested in one.

Ready for a second (or even third) act in your career? Consider these tips in finding a post-retirement job:

Plan in advance. Don’t wait until you retire to start thinking about a job after retirement. Always wanted to teach? Still dreaming about writing the next great American novel? Get a head start now by volunteering in your desired field, attending conferences or taking a community college workshop. Advanced preparation will help you hone your skills and fill in experience gaps on your resume.

Be persistent. For many boomers, finding the right job won’t happen overnight. The average boomer spends 18 months in “career transition” before finding a new job after retirement, says encore career advocate Alboher. You’ll need both patience and persistence to get it right.

Budget for transition. If supplemental income is an important part of your post-retirement career ambitions, then make sure you begin your search while you’re still employed. See what you can do to reduce your expenses now, and find ways to alter your current spending habits in preparation for that transition period.

Prepare for age bias. To combat age bias, stay up-to-date in your desired field and be comfortable using current technology. With the right credentials and training, age bias should be a non-issue. Also, consider job opportunities—such as coaching, tutoring or teaching—where your life experiences will be appreciated.

Choose an in-demand career. Health care is (not surprisingly) a sector where a great deal of hiring will take place. Medical support positions like nursing assistants will be in demand, but Alboher says that newer health care roles like wellness coaches (which don’t require a heavy medical background) will also be hot. Special education, math and science teachers will also be sought after, she says. Taking community college or online coursework now can help you prepare for these in-demand career fields.

What plans do you have for your post-retirement years?

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The following is a guest post by Richard Barrington, Senior Financial Analyst, CFA, at MoneyRates.com.

That kind of title may sound too sensational to be true, but it is a simple fact of today’s banking world: Most people are settling for a quarter (or less) of the income they could be getting from their bank accounts.

Recent years have seen bank rates dwindle to almost nothing, and that makes it especially important that you get the most possible out of your bank accounts. MoneyRates.com regularly studies the market for deposit rates and has found that most bank customers could be earning at least four times the income they are currently getting on their deposits.

The near-disappearance of deposit income

According to Federal Reserve data, just before the Great Recession you could get a 5.07 percent annual interest rate from the average short-term CD. It’s a very different world now. By the end of 2012, the same type of CD was paying an average of just 0.19 percent.

In dollar terms, that near-disappearance of bank rates has had a devastating impact on anyone dependent on interest income. A $100,000 CD that would have yielded more than $5,000 in annual income before the Great Recession would produce just $190 now.

Making the right choices about bank products won’t reverse that dramatic drop in interest income, but it can help you make up for at least some of what’s been lost.

Making the best of today’s interest rates

The fourth-quarter MoneyRates.com America’s Best Rates survey found that savings account rates averaged just 0.17 percent in the last three months of 2012. Since savings account rates were even lower on average at large banks, it’s fair to assume that most of the money in U.S. savings accounts is earning no better than that 0.17 percent. This would produce just $170 in annual income on a $100,000 deposit.

However, that same MoneyRates.com survey found a handful of savings accounts paying 0.75 percent or better. That would produce $750 in annual income. That’s more than four times the amount produced by the average savings account. None of these interest rates may seem spectacular in dollar terms, but at the end of the year, which would you rather have: $170 or $750?

Tips for getting the most out of your bank

How can you find substantially higher bank rates? Here are some tips on how to do so — and also on how to save money by cutting checking account fees:

• Compare rates regularly. There are thousands of FDIC-insured banks out there, so the market for interest rates is changing all the time. Use an informational website like MoneyRates.com to regularly monitor what types of deals are being offered on CD, savings and money market rates, so you can be sure your bank is still competitive.

• Consider an online bank. Because of their more efficient cost structures, online banks are often able to offer customers higher interest rates on their deposits.
• Don’t be afraid to ask for a better deal. Sometimes, just asking can prompt your bank to find special deals that you qualify for, or steer you toward products that are better suited to your situation. In particular, if you have a large amount on deposit at a bank, you should check to see if that qualifies you for special treatment.
• Opt out of overdraft protection. At around $30 a pop, overdraft fees are very expensive. Opting out of overdraft protection will force you to follow more responsible banking habits, and could save you a great deal of money in the long run.
• Find a checking account with no monthly fee. Free checking accounts may be in the minority these days, but they are still out there. Monthly maintenance fees can take a serious bite out of your account balance, so try to find a bank that doesn’t charge them.

The bottom line is that millions of Americans have the opportunity to quadruple their savings account income. Will you be one of those who takes advantage of that opportunity?

Original Article: How millions could quadruple their income

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Is there anything better than free money? I don’t think so, either. Since we all know money doesn’t grow on trees and can be difficult to accumulate over time, you’re probably wondering how you could come across such a wonderful thing, right?

The answer could be as simple as putting a little bit of each paycheck toward a retirement fund, such as a 401(k). If it’s as easy as that, why do so few people take advantage of maximizing their 401(k)?

Well, as someone who graduated from college in 2011, I understand saving money can be difficult. Many people have student loans they have to begin paying off soon after graduation. Others have a difficult time finding a job, while the ones that find jobs may not make enough money to put toward retirement. Also, as someone who’s only 25, isn’t it a little early to think about retiring?

The answer is a resounding “NO!” The earlier you start saving, the better off you’ll be in the long run. The difference between beginning to save money in your mid 20s compared to your mid 40s could cost you a whole lot of dough.

You have two options here: You can wait to start saving or you can start putting a little bit away at a time. When you think of your retirement years, do you want to be forced to find work or do as you please? Besides working the occasional part-time job or volunteering, I’d bet most of us would prefer to spend their retirement relaxing and enjoying life as opposed to continuing to work just to support yourself. To avoid the latter, below is a list of steps for you to follow to help maximize your 401(k).

Contribute, contribute, contribute

I can’t stress this enough. As obvious as it sounds, many eligible employees don’t participate in their 401(k) plans. Is it really that hard to get the application from your company’s Human Resources Department? I didn’t think so. Fill out the paperwork and start contributing today!

Still not convinced? What if I told you the money you contribute comes out of your paycheck before taxes are taken out? It’s true!

Decide on a rate

New employees may be automatically signed up for a retirement account, depending on the company. When this happens, 3% is the most common amount contributed to the 401 (k). However, by only putting 3% of your salary toward your 401(k), you may not be contributing enough to live the lifestyle you want. According to U.S. News, you should save an additional 1% whenever you receive a raise. The goal is to eventually get to the point where you’re saving 20% of your pay.

Take advantage of employer match

This is the free money I referenced earlier. If your employer matches a portion of your contributions, it’s essential to put in the required amount to get the full benefit. This is also why it’s so imperative to start saving at an early age. If you don’t believe me, here’s all you need to know: According to Forbes, if you begin saving $75 twice a month at the age of 25, and the money grows at a 10% rate, you’ll have $876,000 saved up by the time you reach 65. On the other hand, if you wait until 45 to begin saving the same amount, you’ll only have $113,000 saved up. The time difference will cost you nearly three quarters of a million dollars!

Hands off

Don’t touch it! You shouldn’t treat this as a secondary savings account that you can dip into to help pay your mortgage or car payment. Until you are 59 ½, you’ll end up paying huge penalties if you decide to take money out of your 401(k). If for some reason you MUST withdraw money early, you’ll end up paying somewhere close to a 10% fee in addition to any income tax that is applicable. The general rule is to leave the account alone, aside from making contributions.

Ok, maybe there’s ONE exception. If you switch jobs, this is the time to do something with the money. However, instead of cashing out, transfer it to an Individual Retirement Account (IRA). From there, you’ll need to decide if you want to a Roth or traditional IRA.

Reduce fees

“Pick the lowest-cost investment in your 401(k) plan that also matches your risk tolerance,” recommends Carolyn McClanahan, a certified financial planner for Life Planning Partners in Jacksonville, Fla. If you invest in options with higher fees, you won’t be able to save up nearly as much over the course of your career.

Now do you understand what I’m talking about when I refer to free money? It’s out there and available! It’s up to you to take advantage of it.

Does anyone have any other tips for maximizing your 401(k)? Let us know in the comments section below!

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Ah, the life of a retiree. How nice it must be to sleep in until it’s time to eat lunch and then head to the beach to relax for yet another stress-free day. Before you know it, it’s time for dinner and to possibly catch the sunset, before settling in and watching the game until you fall asleep. The next day, you wake up and repeat.

Sounds great, right? Oh wait, you mean people don’t all share the same idea of what makes for a good retirement?

In the past couple days, I’ve talked about how some retired people enjoy volunteering, while others find part-time work. The thought of doing any activity other than something relaxing seems crazy to me. However, the truth seems to be retired people like to stay busy. With that, I give you another list: top physical activities for retirees. Check it out!

Golf

In my opinion, there’s nothing better than a round of golf (or two). If you’re looking to get a little workout in, ditch the cart and opt to walk. On a course that measures 6,700 yards, you’ll walk 3.8 miles if you’re a perfect golfer that manages to hit the ball dead straight every shot. Since we both know that isn’t even possible, consider the time you spend walking in the woods, down wrong fairways and searching on the edge of the water for wayward shots. All the extra walking can add up to an additional 1,800 yards, making your 18-hole excursion a five-mile plus exercise.

Walk

It doesn’t just have to be on the golf course. The next time you need to run up to the grocery store for an item or two, leave the car at home. This will help you save money on gas in the long run, while also providing you with some easy exercise. If you’re like me and would prefer to spend your retirement on the beach, don’t just sit around all day. Get up and go for a walk along the beach.

Bike

I don’t exercise often, but when I do, I don’t mind going for a bike ride. There’s just something about it that seems relaxing. You can go as fast or as slow as you want. If you’re in a hurry, you can get up to the store in a shorter period of time on a bike than you can walking.

Swim

While you’re hanging out at the beach, jump in the water and go for a swim. Using a variety of different techniques, swimming can work out nearly all the muscles in the body. The benefits of swimming include core strength, cardiovascular fitness and endurance. If you’re uncomfortable swimming at the beach, you could look into purchasing a pool for your home.

Recreational Leagues

Many local gyms offer competitive leagues for people of all ages and skill levels. Possibilities include sports such as basketball, racquetball and tennis, among many others. Depending on how serious the league, teams may have practice times throughout the week, which could provide you with even more physical activity. If you’re a former athlete looking to keep your competitive fire burning while also maintaining your physical fitness, a recreational league is a good place to start.

Yard Work

Save some money and do yard work yourself. I’ve never been one that’s into doing yard work (just ask my dad) but again, everyone’s different. Instead of hiring someone to mow the lawn, rake leaves, or shovel your driveway, do it yourself! This will keep money in your pocket AND allow you to get out and get some fresh air.

Another type of yard work that can keep you in shape is gardening. That’s right, I said gardening. If you don’t know what I’m talking about, give it a try and find out.

Yoga

I’ve never personally tried it, but from what I’ve been told, it’s no joke. According to the American Yoga Association, the term “Yoga” means to join or yoke together, bringing the body and mind together into one harmonious experience. To break it down, Yoga combines exercise, breathing and meditation, forming one heck of a workout (or so I hear). There are many different types of Yoga, with gyms offering different classes for people interested in the type of exercise.

If finding a part-time job or volunteering in your retirement years doesn’t sound appealing, try out some of the physical activities I outlined above. They’ll help keep you active and in shape!

Does anyone out there have any other physical activities they recommend for retired people? Let us know in the comments section below!

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Can you imagine how boring it would be to hang out at the beach for three or four days a week and golf the other days? Before you say anything, I was being sarcastic because there isn’t much I’d rather do than play a round of golf or hang out in the sun and enjoy the cool ocean breeze. However, for new retirees that are used to waking up day after day and being productive in their previous career, the transition from consistently working to not working is tough to make.

Sounds crazy, doesn’t it? The truth of the matter is some people experience a type of depression after retirement. It’s hard for me to imagine that I’d ever get too upset about not working, although I suppose anything’s possible. I’m the type of person that likes to be constantly doing something. I can only take so many naps or watch so much TV before I go crazy. This got me to thinking about life after retiring and how I would keep myself busy. If it rains, I wouldn’t be able to golf or go to the beach. What else would I possibly do with my time?

While finding a part-time job is a possibility, volunteering is another option to help achieve that feeling of accomplishment. With that, I give you my list of top volunteer activities for retirees. Take a look!

Tour Guide

If you’re passionate about something located close to your home such as a museum or a stadium, you could give tours. Such places often offer training programs to give volunteers the necessary information to lead a successful tour.

Humane Societies

If leading people on informational tours isn’t for you, maybe you’re interested in animals? If so, humane societies and animal rescue shelters always need volunteers. Possible volunteer opportunities include caring for an animal until a permanent owner is found. Working at a humane society is the perfect volunteer opportunity for someone who loves animals but doesn’t want the obligation of caring for one of their own.

Golf Ranger

Depending on the course, some courses offer monetary compensation for rangers, while others only offer free golf. Check with your local course to see if they offer any volunteer jobs for rangers. Job tasks include checking receipts and making sure groups keep up the pace of play.

Soup Kitchen

If you enjoy putting a smile on someone’s face, contact a local soup kitchen. Many soup kitchens offer four- or five-hour volunteer shifts, although you are generally free to pick and choose the days you want to volunteer. Between cooking, picking up donations and serving food, there are plenty of different options available.

Red Cross

I plan to move to a climate that is warm year round after I retire. I realize that there’s the possibility of natural disasters such as tornadoes and hurricanes in warm states such as Florida, a state I’d consider retiring in. When those natural disasters occur, there’s always a need for volunteers. Whether it’s rebuilding houses or providing food and shelter for families affected by major disasters, the opportunities are endless.

Parks and Recreation Department

Are you an environmentalist? Do you like planting trees or keeping parks clean? If any of those qualities apply to you, check out your local parks and recreation department to see what you can do to help. You may be able to help set up a neighborhood recycling program or plant gardens at nearby parks and schools.

Homeless Shelters

There are many different available options when it comes to homeless shelters. You could start by donating clothes, blankets and food supplies. If you’re looking to work directly with people, you could ask about serving food, reading bedtime stories to children and helping residents find their first apartments.

There are plenty of volunteer options available for retirees. Whether you like helping, guiding, or building, if you look hard enough, you’ll find something that suits what you’re looking for.

Are there any retired people out there that volunteer in their spare time? If so, what type of volunteer work do you do? Let us know in the comments section below!

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What do you think of when you hear the word retirement? For me, many things come to mind, all of which make me happy. I picture myself living in a climate that’s warm all year round and playing unlimited amounts of golf. The only work I have to worry about is making more putts and straightening out my hook.

Ahhh, what a life it will be. I’ll have all the time in the world to hang out at the beach, attend sporting events and relax. OK, enough staring out the window and daydreaming about something that’s so far ahead in my future that I can hardly imagine it.

Even though retirement is a long way down the line for me, one thing’s for certain: I won’t want another job. Or will I? According to an article published by The New York Times, 7.2 million Americans aged 65 and older are working, a number that has doubled in 15 years. In some instances, it’s a case of a person loving their job, while others work because they don’t feel financially secure with their retirement funds. No matter the reasoning, the main point is that when people retire, they aren’t necessarily done working.

The thought of working after retiring is laughable to me. After working for 25, 30 or 35 years, why would I want to continue working when I’ve already worked for a large portion of my life? As tough as it is for me to believe, people get bored in retirement. While I had heard of this crazy notion, I didn’t actually believe it was possible until it happened to my dad. He retired in his early 50s, only to begin working again a few weeks later. It seems like he works more now that he’s “retired” than he did before.

I don’t see a similar scenario playing out for me. However, if for some reason I do become sick of golfing and hanging out at the beach, what would I do with all my free time? I suppose I’d go in the direction of finding a part-time job. What types of part-time jobs are available for retirees? Glad you asked! Take a look.

Sporting Events

This one is right up my alley. If I had to spend time away from the golf course and beach, I’d prefer to be at a sports venue. Many sports teams hire seasonal workers to do jobs such as usher spectators to their seats or help out at the concession stands. Spending a day at the ballpark doesn’t sound like too bad of a job, right?

Tutor

If you were a retired teacher, the transition to becoming a tutor would be nearly seamless. You could help individuals who are struggling in whatever subject you specialize in (math, English, science) and get them on the right track. You could start your own program or get in touch with local schools to get your foot in the door.

Retail

If you’re looking to make some quick cash during the holiday season, head to your local retail store. Most are in need of part-time workers during the holiday rush. The best part about this job? It’ll only last a short period of time before you can head back to the golf course.

Online Juror

Most of us do what we can to get out of jury duty. However, if you’re interested in shows like “Law and Order,” maybe this is for you. All that’s needed is a computer with Internet access. Online companies like eJury.com and OnlineVerdict.com pay people to give verdicts on mock trials that lawyers and other jury consultants are working on.

Freelance

If you love to write or take pictures, you could do so AND earn some cash! With many newspapers making personnel cuts due to a changing readership, companies are always looking for ways to save money. It’s cheaper for them to pay a freelancer than it is to hire someone on salary. For more information, contact a local newspaper or magazine company and see what positions are available.

Telemarketing

If you have the patience to deal with people and spend the majority of your time on the phone, there are plenty of telemarketing jobs available for retired people.

Golf Course Ranger

If I had to choose one dream retirement job, it would probably be this. You get to spend all your time at the golf course, driving around golf carts and making sure groups are keeping up their pace of play. Some courses have one ranger watch over the first tee to ensure every golfer has paid. Other courses have rangers drive around the course to make sure everything is running smoothly. Another great perk (along with being at the course all day) is free golf!

Pet Sitting

Do you love animals? If so, pet sitting could be for you. Responsibilities are as simple as making sure the pet is fed and let out (if necessary). Maybe throw in a couple walks around the block (depending on the animal), and you’re good to go. You could work through a pet sitting company or on your own.

Community Service

Community centers and churches usually have part-time jobs available for retired people. The tasks could be as simple as data entry or keeping records on file. A few hours organizing information, and you’re day is complete.

Phased Retirement

If you want to keep your current job, but at a reduced role, you could look into a phased retirement. This allows you to stay with your current employer but decrease the amount of hours you work, allowing you a more flexible schedule. This route lets you to make the transition from working to retirement over a period of time.

Maybe taking up a part-time job after retiring isn’t such a bad idea after all. No matter your opinion, it’s good to know there are part-time options available for retirees.

Who out there is retired that still works elsewhere? Why did you make the decision to get another job? Let us know in the comments section below!

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My son, unfortunately, doesn’t have good hair genes. I’ve always envied babies that are born with hair, because my son was bald for months and months. When it finally did grow, it became pretty long in the back, but barely grew on top. This resulted in a baby mullet, which is one of the worst hairstyles known to mankind. After seeing a very unattractive mullet on a man at the grocery store, I decided it was time to cut my son’s hair. My boyfriend’s mom, the ever-thrifty paragon of personal finance and bargain shopping, repeatedly offered to cut it to save us the cost of the haircut. Yes, she’s got a certain talent with an electric razor, but I just wasn’t ready to sacrifice my baby’s precious curls to an amateur. Sometimes, you need a professional.

Most women I know wouldn’t trust their hair to an amateur. If you’re just doing a little bang-trim, you can probably handle that on your own; other times, you need someone with experience. It’s the same way with your money. If your budget needs a little snip here and there, it doesn’t make sense to pay a lot of money to manage your finances. If your finances need a complete makeover, however, a good financial planner can be your best stylist. Let’s take a look at what financial planners do, and when you should consider hiring one.

Most people associate financial planners with investments and the stock market and all that confusing money mumbo-jumbo. If you’re looking for investment help, there are investment advisors who will determine where to put your dollars. If you’re looking for other financial help, however, fee-only financial planners can give you good money-management advice. If you hire the right type of financial planner, they’ll advise you on savings, retirement accounts, mortgages, insurance and much more, according to Sensible Money. Basically, financial planners will gather your personal and financial information and use it to make recommendations for your situation.

In most cases, you won’t need a financial planner for managing your day-to-day finances. When there are big changes in your life, a financial planner can help you make the necessary changes to your finances. Here are some instances in which you might consider hiring a financial advisor:

—   You got married and/or had kids
It can be stressful to blend two financial lives. Add kids to the mix, and you’ll find yourself swirling down a pit of financial confusion. A financial planner can help you address issues of insurance, assets, money management, and more.

You’re getting divorced
A planner can help devise an equitable settlement that makes long-term financial sense.

—   You’re planning for retirement

Investments are a big part of retirement saving. A financial planner can help you decide how to invest, along with the best ways to withdraw funds upon retirement.

—   You’re facing a financial crisis
Nobody wants to be in this position. But whether the crisis is caused by job loss, illness, legal problems or any other misfortune, you don’t have to face it alone.

—   You’re buying or selling a home
Any sort of home-sale transaction can be really scary. Consulting a planner for advice can provide you with recommendations and information on everything from your loan to the tax implications of becoming a homeowner.

—   You’ve received a financial windfall
This is one financial problem I wish I had. If you’ve come into some unexpected money, a financial planner can manage your larger nest egg and figure out the best ways to invest.

—   You’ve lost a spouse
The death of a loved one is often followed by hurried financial decisions. A financial planner will be able to look at the situation with a calm and critical eye, and offer you advice that will benefit you in the long run.

If you’re going through any sort of major financial change, or trying to plan for the future, hiring a financial planner can certainly be money well spent. You can find even more reasons to hire a financial planner at Plan for Your Health. If you think you’re ready to hire a financial planner, you can begin your search at the National Association of Personal Financial Advisors (NAPFA), a professional association of fee-only financial advisors. Take your time and do the necessary research to find the right planner for you. Getting professional advice on your finances can have big rewards.

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This is a guest post by Nickel, the founder and editor-in-chief of the FiveCentNickel.com. He’s a thirty-something family man who has been writing about personal finance since 2005.

I’ve tackled this general topic in the past, but I recently ran across an article on Time Moneyland talking about about the financial impact of packing your lunch instead of eating out. Back when I first wrote about this, I mused that if I could save just $3.50/workday ($70/month) and invested it at an 8% annual return, I’d have just shy of $100k in 30 years.

Based on a recent survey, however, the author argues that the potential savings are even larger. Apparently the typical workday lunch costs between $7-$13 (so let’s just call it $10). Thus, if you eat out daily you’re spending around $2500/year. And even if you eat out just three times per week, you’re still looking at around $1500/year.

Of course, they neglected to back out the costs associated with brown bagging it when they wrote their title (How to Save $2500 a Year on Lunch!), but still. They make a good point. While there are a great many people that are already cutting these sorts of corners to make ends meet, there are an awful lot of people who are blowing through their money on a daily basis.

Sure, these aren’t huge expenses, but they add up over time. And when money’s tight, you may end up trading off such expenditures against valuable opportunities to secure your future. The author of the Time article makes the point that the savings could go a long way toward getting you to earning your employer’s full 401(k) match.

Let’s take it a step further… Let’s assume that you’re already doing the right thing and contributing to your 401(k) at least enough to get your employer’s matching funds. But what about an IRA? Are you funding one of those, too? In many cases, the answer is “no”. Why? Because money is tight.

But if you ditch that $10 daily lunch and brown bag is for $3 instead, you’re saving $7/day. That’s $35/week or $1750/year. Stash those savings in Roth IRA for the next 30 years at a relatively conservative 6% annual return and you’ll have just shy of $150k in tax free IRA distributions waiting for you at the end of the rainbow.

Yes, in the interest of simplicity, I’m ignoring the effects of inflation. But inflation cuts both ways. The value of the dollars at the end will be lower than they are today, but the amount you’re stashing on an annual basis will likely be increasing (e.g., following a 3% price increase you’ll save $7.21 instead of $7 by packing your lunch).

Original Article:

Funding an IRA with Your Lunch Money

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