How Much to Save for Health Care in Retirement?
Housing, food and vacations shouldn’t be your only concerns when it comes to Failing to account for health care costs can be financially disastrous; especially when you consider that those costs often increase the longer we live. Although the cost of health care in our retirement years can vary, here are some tips to help you estimate how much you’ll need.
Best Personal Finance Software for Mac
When it comes to computer types, a line was drawn in the sand of public perception long ago. If you’re doing business, you need a PC. When you’re being creative, get a Mac. But in reality, this line blurred a long time ago. Applications for both computers are equally capable. Doing personal finances on a Mac doesn’t mean you have to compromise. Here’s what to look for in the best software to suit your needs.
How to File Your Own Taxes
A big myth about filing your own tax return is that the process is too complex for anyone other than an expert to handle. Although there’s no question that the U.S. tax code is extensive and very specific, the reality is that most taxpayers have simple tax situations and the Internal Revenue Service provides updated instructions annually. With some care and planning, you can file your own taxes with confidence.
What Are Assets?
An asset is any item that you own that increases your net worth, as opposed to a liability that decreases your net worth. Examples of assets include the money in your bank account, property like your house or your car, and personal items like your TV, fine art or appliances. Knowing what assets you have and how much they are worth helps you make better financial decisions.
What Are Cutbacks?
Cutbacks refer to steps taken to reduce the amount of money being spent. If you’re coming up short each month when it comes to paying your costs of living, you probably need to reduce your spending. However, taking the time to budget may reveal some relatively painless ways to do so.
What Are Interest Rates?
Interest rates refer to the amount a lender charges a borrower in return for the privilege of borrowing money. This figure is generally expressed as a percentage of the principal. For example, if the interest rate on a $1,000 loan is 5 percent per year, and you want to pay off the loan in full at the end of a year, you would pay $1050: the $1000 you borrowed, plus $50 in interest. When you put money in a deposit account, you’re essentially “loaning” money to the bank, so the bank pays you interest.
What Are Loans?
Loans refer to when one party gives money to another on the condition that it be paid back, typically with interest, at a certain time in the future. The terms of the loan determine what that interest rate will be, how long the borrower has to repay the money, and sometimes place additional stipulations on the funds including how the proceeds are used.
What Is a 401k?
A 401(k) is a retirement savings account offered by for-profit employers to help their employees save for retirement. A 401(k) offers tax breaks for diligently saving for retirement, according to the Internal Revenue Service, but isn’t the easiest account to withdraw from if you need money before you retire. Using a 401(k) for your retirement savings increases the growth of your nest egg because no matter what type of 401(k) you use, the money grows without being taxed.
What Is a Credit Score?
Your credit score is a three-digit number that represents how well you’ve handled credit in the past and how likely you are to repay future debts. Your credit score is calculated from the information found in your credit report, which includes your trade lines — your loans, credit cards and other debts, inquiries from when you’ve applied for credit in the past, and public records like bankruptcies and collections.
What Is a Line of Credit?
A line of credit is an amount of money that a lender offers to let you use when you need it, and that you will pay back over time with interest. But, you’ll only pay interest on the amount of the line of credit you use.