Will you be Happy in your Retirement – Odunze Reginald C

According to an article in Yahoo Finance captioned “7 ways to Retire happy” Mandi Woodruff opined that In a new book, “You Can Retire Sooner Than You Think,” Atlanta-based investment advisor Wes Moss, offers an alternative to the traditional line of thinking. Rather than focus on a dollar amount to reach for, Moss decided to figure out what retirees needed to be truly happy in retirement”
“I wanted to go beyond simple income numbers,” Moss says. “I wondered what it really takes to get somebody to a point where they truly feel they have a cushion and they are also enjoying life.”
“In 2012, Moss conducted an online survey of more than 1,200 workers who had either already retired or were fewer than 10 years away from retirement. He asked them questions about what type of cars they drove, where they shopped, how much their homes were worth, and, of course, how much they had saved for retirement. But he also asked about their passion projects, how often they went on vacation, what types of volunteering they enjoyed, whether or not they were satisfied with their lives, and how much time they put into their retirement planning before calling it quits. (Moss did not ask participants about overall debt levels like student loans and credit cards, but did include questions about their mortgage debt).”
What he found was that more money doesn’t equate to more happiness. The happiest retirees didn’t all drive BMWs or take 12 European cruises a year, either.”

Basically what drives a happy retirement depends on an individual, as what makes Mr. A may not make Mr. B happy. These factors will therefore ensure a happy retirement.

1 Save for retirement: saving for retirement is a basic requirement in life especially in Africa where there is no social security. Saving for retirement in Africa is fast becoming important as the modernization has gradually eroded African system of social communism where in most communities; people gather together build houses for old people who do not have children to cater for them. As this has eroded, it becomes increasingly important to start saving for old age.  It is also important to embark on voluntary contribution as the mandatory provision of 18  percent is not quite enough  though I strongly commend the Federal government of Nigeria for increasing to 18 percent.

2 Make s rough estimate of retirement savings needs, the saving need is a strategic issue as most retirees came to the sudden realization that what they are getting as their lump sum is not enough, coupled with their desire to get a house and a car from their lump sum which is barely enough to cater for their immediate needs.

3 Develop a retirement strategy, it is very important to fashion a well defined retirement strategy. Transamerica Center for Retirement Studies (TCRS), noted that in developing a retirement strategy, it is important to do the following “create a plan , In creating a plan, consider lifestyle, living expenses, healthcare needs, government benefits, and other factors, as well as a backup plan in case retirement comes early due to an unforeseen circumstance

4 Know a lot about retirement investment, it is the inability for contributors knowing about investment that often drove them to annuity. Contributors should at one time or the other gets investment advice from their pension fund administrators. They can do this by attending forum organized by the various Pension Fund Administrators to get adequate information on investment strategies

5 Maintain a positive attitude towards life and pension inclusive; according to book of job what people fear most always comes to them. And according to Robert Schuler, in his book , “the power of positive thinking “ he noted that  one of the basic ingredient of success is maintaining a positive outlook to life, believe that you will make and you will make it, believe that you will not , and you will definitely not” Therefore maintaining a positive attitude in all aspect of life is pre requisite for all facets of life and Le Boeuf (1987:21) noted that “your world is a mirror and your mind is a magnet what you perceived in this world is largely a reflection of your own attitudes and beliefs. And life will give you what you attract with your thoughts. Think, act and talk negatively and your world will likely be negative. Think, act and talk with enthusiasm and you will attract positive results.

Happy Married Life: We cannot do without Wes Moss as he is one of the Authority in pension Retirement. In still the same article in Yahoo Finance (op cited)  captioned “7 ways to Retire happy” Mandi Woodruff observed that “Happy retirees are more likely to be married” As common as divorce is in the U.S. today, the overwhelming majority of happy retirees were married (76%) and only 9% were divorced. Less than half of unhappy retirees were married, while one-quarter were divorced, Wes Moss found. This is right on par with what past research has shown about levels of satisfaction in married and unmarried people — over the long term, married couples are much happier. It’s fairly obvious why two may be better than one in this scenario — dual incomes can make a huge difference in a couple’s financial outlook. On the flip side, divorce not only reduces both parties’ income but is also expensive to go through.

Odunze Reginald is the Lead Consultant, Chareg Consulting, a management and marketing  consultant  a social media and social marketing consultant , you can visit our twitter anchor @regydunze, find us on Facebook @ Reginald odunze and reginaldodunze.com, at google+ @ Reginald Odunze and at Linkedin@reginald odunze.

Is saving or investing more important over time? - By Sheyna Steiner

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Everyone wants to be the genius investor who parlays a small bundle of cash into a fortune. Unfortunately it's pretty difficult to do that.
That's OK because there is a better way for most people. Consistent saving over time is much more likely to pay off than complicated investments or strategies such as timing the market. Risk-the-farm investing strategies have a high probability of failure, but saving always wins.
You can achieve your financial goals by following a basic get-rich-slowly scheme: save a lot and let compound interest do the heavy lifting over time.

The advantage of saving

While saving and investing go together like PB and J, accumulating money through savings is the main mechanism that makes investing work.
"An average saver will do better than a great investor who doesn't save," says David A. Schneider, CFP professional and principal at Schneider Wealth Strategies in New York City.
"Let's say you are in the rare group that can outperform (the market by) 2 percentage points per year -- few can do that. But you can't accumulate as much as someone who was more of an average investor but saved in a disciplined and consistent way," he says.
That's because adding extra savings to your portfolio gives compound interest more money to work on.
The chart below shows 2 investors who begin with $100,000. Investor A adds $10,000 to the pot at the beginning of each year over 20 years and gets a 10% return. Investor B adds nothing and gets a 12% return for 20 years.
Even with the advantage of a higher return, Investor B falls behind Investor A. If B gets the same 10% return over 2 decades, his portfolio grows to about half of A's over that time. In order to earn the higher rate of return, Investor B would need to take on more risk -- which could turn ugly in a market downturn.

Focus on what you can control

There will inevitably be market downturns. But there are ways to make the volatility of the market work in your favor. Continually adding to investments ensures that savers buy at low prices as well as high prices through a process called dollar-cost averaging.
"The only thing that you can control is the amount of capital you invest. Even during periods of low market returns, the frequent addition of investment capital can have a lasting effect," says Bob Stammers, CFA, director of investor education for the CFA Institute.
"Consistently adding capital to your portfolio, as well as the long-term returns earned on that capital, is an excellent way to steadily move toward your overall financial goals," Stammers says.

It takes money to make money

The magic of compound interest is more impressive with a big pile of money.
The "rule of 72" gives savers a quick rule of thumb as to how long it will take their initial investment to double at a given rate of interest. Simply divide 72 by the rate of return you expect to get in order to find out how long it will take your investment to grow twofold. For instance, 72 divided by 6 means it'll take 12 years to double your money.
No matter how large your portfolio, it would take about 7 years for an investment in the stock market to double at the 10% historical rate of return.
No one would turn down a 100% return on his or her money, but doubling $100,000 is better than doubling $100.

Time is short

Regular saving is only half the battle. Investors need time for compounding to work on their money. Compounding occurs when the earnings of an asset are reinvested and then generate their own earnings, creating a snowball effect.
"Time is one of the most precious resources for a successful retirement," says Phillip Christenson, CFA, financial planner and portfolio manager at Phillip James Financial in Plymouth, Minnesota.
The chart below shows how time impacts savings. By saving $5,000 at the beginning of each year for 20 years and earning an 8% return, Saver A ends up with $247,115 after 2 decades. Saver B has other things going on in the first decade and doesn't start saving until he's only 10 years away from retirement. To end up with the same amount as Saver A, he'll have to put away $157,946 over 10 years' time, or about $15,795 each year.
The early saver squirreled away $100,000 over 20 years, and earned $147,115 from compounding earnings. The late saver had to make up for lost time, ponying up $157,946, and earning $89,169 over 10 years, assuming the same 8% rate of return.
If the person with the early start saved $14,000 annually for 20 years, she would end up with $691,921.
Like getting physically fit, getting financially fit takes hard work and the ability to say "no" to temptation.

"Everyone wants the 6-pack abs -- but are they willing to do the work?" says Michael Silver, CFP professional and partner at Baron Silver Stevens Financial Advisors in Boca Raton, Florida. "Everyone wants to retire with a lot of money at some point, but are they willing to save and be disciplined with their spending in order to do that?"

Start early, save hard and let compound interest get to work.

Culled from Bankrate.com

Are You Too Broke to Ask for Financial Advice? -Eric McWhinnie

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Source: Thinkstock

Nobody cares about your money as much as you, but that doesn’t necessarily mean you shouldn’t receive help managing it. Whether it’s how much money you’re currently spending or how much you’ll need for the future, we all have biases that work against our best interests. A financial advisor can provide a much-needed perspective. The trick is believing you have enough money to seek advice.
Nearly have of Americans think they need a significant nest egg to justify working with a financial advisor. According to a new survey from TIAA-CREF, 45% of respondents say they need at least $50,000 in savings to merit that meeting. Of those who have never received professional financial advice, 63% list “I don’t have enough money to invest” as a reason. Contrary to the adage of men not stopping to ask for directions, men are more likely to ask for financial advice and less likely to say they don’t have enough money to do so.
“Everyone can benefit from financial advice because we all have something we’re working toward — paying off student loans, purchasing a new home, or making sure our loved ones are taken care of when we’re gone,” said Kathie Andrade, EVP and President, Individual Advisory Services at TIAA-CREF, in a press release. “No matter where you are in your savings journey, you don’t have to go it alone. The sooner you engage an advisor, the more likely you are to meet your goals. And an advisor can help you stay on track and adjust when needed. Plan for the future you want.”
Receiving advice from a qualified, trusted financial advisor has several benefits. The survey also finds respondents who meet with an advisor are more confident in their retirement savings plan than those who have not (78% vs 43%). More importantly, they take action to better secure their financial future. In fact, 37% say they changed their asset allocation, 36% increased their savings amount, 32% monitored their savings more frequently, 29% decreased their spending, and 28% established a plan for paying off loans or managing debt.
“Getting financial advice often leads to positive actions — increasing the amount of retirement savings, establishing an emergency fund or developing a plan for paying off debt,” Andrade said. “It’s never too early — or too late, for that matter — to consult with an advisor and put a financial plan in place.”
While respondents indicate life events like receiving an inheritance, selling a home, losing household income or a loved one, or divorce may prompt them to seek financial advice, reaching an arbitrary nest-egg amount of $50,000 should not be included. A separate survey from GOBankingRates finds 62% of Americans have less than $1,000 in savings, with people age 35 to 54 the most likely to have a savings balance of $0. If you wait until you reach $50,000 or some other ill-conceived milestone, you could miss out on years and even decades of valuable financial advice.

Culled from money cheatsheet

America’s 20 richest people have more money than these 152 million people -Quentin Fottrell

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This statistic might even make the 1% feel humbled.
America’s 20 wealthiest people — a group that could fit in one Gulfstream G650 jet — are now worth $732 billion, which means they have more wealth than the 152 million people who make up the least wealthy 50% of U.S. households, according to a report released Wednesday by the Institute for Policy Studies. What’s more, the “Forbes 400” wealthiest individuals in the U.S. now have a net worth of $2.34 trillion.
“There is a growing concentration of wealth in fewer and fewer hands,” says Josh Hoxie, who heads up the Project on Opportunity and Taxation at the institute.
The report’s co-authors — Hoxie and Chuck Collins, a senior scholar at the Institute for Policy Studies, a Washington, D.C.-based think tank that focuses on economics, national security and human rights — propose several ways to close the gap between America’s ultra-wealthy and, well, everyone else. These policies include closing offshore tax havens and loopholes for the ultra-wealthy in the tax code that the wealthy exploit to hide their wealth. One of the biggest billionaire loopholes is the Grantor Retained Annuity Trust, which enable very wealthy families to pay little if any estate and gift tax on estates worth billions of dollars, Hoxie says. “There’s no reason why it should be used as a tax evasion mechanism,” he says. “It’s an unintended result of our tax code.” He also proposes a direct tax on wealth to generate trillions of dollars in new revenue.
Read: The Filthy-Rich 50: Meet the richest person in each U.S. state
A 1% tax on the wealthiest 1% of Americans would raise $2.6 trillion over 10 years, more than the federal government now spends on education and environmental protection combined, the report says, and a 1% tax exclusively on the Forbes 400 would raise $234 billion, which is more than the government spends on both its Head Start program, which provides early childhood education to over 800,000 low-income children, and the Women, Infant, and Children (WIC) program that provides nutrition assistance to over half of all infants born in the U.S.
“Interest in addressing inequality has increased in recent years, but Congress hasn’t introduced a wealth tax yet,” Hoxie says. (The report used data from the Forbes 400, the U.S. Federal Reserve Survey of Consumer Finance and the U.S. Census.)
The middle class is still recovering from the Great Recession. The net worth of American families — that is, the difference between the values of their assets, including homes and investments, and liabilities — hovers at around $81,400, still a long way off the $135,700 in 2007, according to a report released last January by the nonprofit think tank Pew Research Center in Washington, D.C.
Meanwhile, the 2015 Forbes Billionaires List names 1,826 billionaires with an aggregate net worth of $7.05 trillion, with 400 new billionaires joining the elite club this year, which increased their collective net worth by nearly $2 trillion in two years.
On the upside, some 700 million people globally managed to step out of poverty between 2001 and 2011, according to Pew.
Don’t miss: 10 things the middle class won’t tell you


Culled from Moneywatch

Shipping mania: rushing to deliver millions of holiday gifts-By Scott Mayerowitz

Inside the massive UPS sorting facility enabling online shoppers to spread Christmas cheer

LOUISVILLE, Ky. (AP) -- The humming is constant; a low-pitched drone from 155 miles of conveyer belts racing packages in every direction. Boxes shift from one belt to another and bump into a metal wall. Thud. Thud. Thud. In the background, trucks beep and jet engines roar.

Forget jingling bells and ho-ho-hos, these are now the sounds of the holidays.

As more gift-givers shop online, there are more packages to ship. Online sales now account for 10 percent of all shopping and 15 percent during the holidays, according to research firm Forrester. That leaves FedEx and UPS with a combined 947 million packages to deliver between Black Friday and Christmas Eve — up 8 percent from last holiday season's forecasts.

For UPS, the key to getting all those last-second orders delivered on time is Worldport, a massive sorting facility located between the Louisville airport's two main runways. On a typical night, 1.6 million packages pass through. Just before Christmas, there can be 4 million, peaking on Monday night.

(UPS plans to deliver about 36 million packages on Tuesday, its busiest day of the year, up from 35 million last year. That includes all of Worldport's shipments plus those traveling by truck.)
Standing next to the runways just after midnight, jet headlights can be seen lined up miles away. Every 60 seconds another plane lands on one of the two parallel runways and pulls up to the facility — the size of 90 football fields — to unload its goods.

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If everything goes right, the packages are just touched twice by humans: first when pulled out of large aircraft shipping containers and then again at the end of their journey through the conveyors and into a new bin and another jet.
The past two years have been rough for express shippers.
In 2013, they underestimated American's growing fervor for online shopping. Throw in bad weather, and deliveries backed up. Some gifts didn't arrive in time for Christmas. UPS and Fedex spent heavily last year to ensure better performance, but still had some major hiccups. Staples, Toys 'R Us, Best Buy, Crate & Barrel, J.C. Penney and Kohl's were among the retailers who missed delivery to at least one part of the country, according to industry tracking firm StellaService.
To prevent similar mishaps, UPS and FedEx have been working with major retailers to hone their forecasts and have scheduled their extra holiday workers to better meet the shipping spikes right after Thanksgiving and the weekend before Christmas. Some third-party tracking services have signaled a few issues with 2015 deliveries but UPS spokesman Mike Mangeot said last week that more than 96 percent of packages are being delivered on time in December and that UPS expects packages to arrive by Christmas.
"In many cases customers are receiving the packages earlier than promised as we are advancing deliveries to make sure the network remains ready for any spikes as last-minute Christmas shipping approaches," says Mangeot.

View gallery

In this Nov. 20, 2015 photo, a UPS worker pulls a container full of packages across a floor embedde …

At first glance, Kentucky doesn't seem like the epicenter of holiday shipping.
After all, Louisville isn't the geographic center of the U.S. And this city of 600,000 people is hardly the largest in the country. Best known for its wooden baseball bats and being home to the Kentucky Derby, the city does, however, have relatively good weather and a geography that is perfect for shipping. (FedEx has a similar operation in Memphis, Tennessee.)
"It's just an ideal location for us," says Gary Kelley, manager of the UPS next day shipping division at Worldport. "We are within two hours (flying time) of 75 percent of the population and within four hours of 95 percent."
And when you are rushing packages overnight, that proximity to the country's largest cities matters.
A plane from Seattle might be carrying overnight packages bound for New York, Miami or Chicago. It will stop in Kentucky. All the boxes and envelopes are unloaded, likely by college students pulling the ultimate all-nighter — they make up 70 percent of the employees here.

Next, the packages go onto conveyers where red lasers scan labels and then the system automatically sorts the boxes and directs them to new shipping containers. UPS has 38,000 such containers and they typically hold about 400 packages. Workers load them back up and then drag the heavy containers across a floor of rollers back onto various planes that head out around the globe.

Up to 416,000 packages can be processed each hour.

Typically, it only takes 13 minutes for a package to travel the web of belts and chutes. In a five hour period, 130 planes have landed, unloaded, reloaded and returned to the skies. In another part of the complex, 300 trucks do a similar dance.

The only thing faster: Americans purchasing a new round of goods online.

Culled from AP in yahoo finance

10 money action steps to take before 2016- By Kimberly Palmer

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As the end of the year approaches, it's a good time to take stock of the financial moves you've already made -- and have yet to make -- before the year changes. Many financial deadlines pop up on Dec. 31, which means now is the time to prepare to squeeze in last-minute savings or ramp up retirement goals.
Max out your 401(k).
If you already have a 401(k) account set up through your workplace, you'll want to check to see if you are close to reaching the maximum contribution of $18,000 for the year in order to get the biggest tax benefit. (If you are age 50 or over, you can contribute an additional $6,000, also with a deadline of Dec. 31.) For those with Roth IRAs, the annual maximum is $5,500, plus an additional $1,000 for those age 50 and over, and you have until April 15 to make your contributions.
Consider a conversion.
If your income is lower than normal this year because of an employment gap, for example, then it can be a great time to convert money from a traditional IRA to a Roth IRA. That's because you'll pay less in taxes during a year when your income, and therefore your tax rate, is lower than usual. The deadline for Roth conversions is Dec. 31.
Check your insurance needs.
If you have expanded your family, changed jobs or purchased new assets, then it might be time to look over your insurance documents to make sure you're fully covered. You might need to increase your coverage to ensure your home and family is protected in case of an emergency. While there's no hard-and-fast Dec. 31 deadline for this one, the end of the year is a good reminder that insurance needs should be reviewed at least once a year.
Rebalance your investments.
Rebalancing your investments to make sure you have the right mix of diversified stocks and bonds for your age and situation is something that should take place once or twice a year at a minimum. If you've lost money in a taxable account amid the recent market volatility and want to count it as a tax write-off, then you'll want to be sure to sell the losing stock by Dec. 31.
Look backward, too.
Examining your credit card and bank statements from the previous year can help you locate expenses to trim for the coming year. Perhaps you can cut down on certain recurring expenses, such as cable, the gym or takeout. An online tool like Mint.com can help you find areas to trim.
Open a college savings account.
If you're already maxing out retirement savings and you have children, then you can put money into their 529 college savings accounts. You can contribute up to $14,000 a year (or combine up to five years in advance for a total of $70,000); the deadline for each year's contributions is Dec. 31.
Review beneficiaries.
Just as with insurance needs, beneficiaries listed on work benefits often need to be updated, especially if your family situation has changed. It's easy to forget to make updates after getting married, divorced or having children. You want to review those documents at least once a year to make sure the correct names are listed.
Take advantage of tax credits.
Deductible expenses and tax credits typically come with a Dec. 31 deadline, including those for investments in energy-efficient home improvements or certain school expenses. Make sure you retain receipts and keep them organized so when tax time rolls around in a few months, you're ready.
Make donations.
If you donate money to charity and you want those gifts to count toward the 2015 tax year, you'll want to make them by Dec. 31. As with tax credits and deductions, take care to track and retail all receipts. That goes for non-cash gifts, too, such as clothing or book donations.
Check up on your health.
If you have put money into a health care flexible spending account, now is a good time to make sure you're on track to spend all the money in the account. Eligible expenses include contacts, prescription drugs and doctor's visit copays. The deadline for making purchases is usually Dec. 31 or March 15, depending on your company's policy.

Culled from US News