5 Expenses to Consider Before You Move in Retirement

By Tom Sightings

A lot of people decide to retire in place because they like living in familiar surroundings with old friends and family members close by. Others decide to stay put after they realize just how much it costs to move. Before you decide to downsize or move to the latest "best place to retire," you should do at least a back-of-the-envelope calculation about how much a move is really going to cost. Here are the five major expenses to consider:

1. The cost of selling. The major cost of selling your house is the commission to the real estate agent, usually at 5 or 6 percent of the selling price. If you own a typical middle class house worth $300,000, then that commission runs at least $15,000. You can sell your house without an agent, and about 12 percent of Americans do it that way, according to the National Association of Realtors. But that involves some expenses as well, not to mention the time and aggravation. Also, a real estate agent has access to better customers, and will probably net you a higher price. Sellers also typically spend about $3,000 to spruce up their home before they put it on the market. In addition, as a seller you likely have to pay a lawyer, along with various document and recording fees. If you're selling a condo, there may be additional fees from the homeowners' association. So, count on spending about 10 percent of the price of your house in order to sell it.

2. The cost of buying. You typically don't have to pay the real estate broker. But you likely do need a lawyer. And if you're getting a mortgage, you will have points and fees. You have title insurance, inspections and tax levies. And if you're buying a condo you might have a capital fund fee or a transfer fee. These costs can vary widely, so it pays to ask what these are ahead of time. If you're moving long distance, there may also be substantial travel costs in order to research your new location. Even if you do a lot of research online, there's just no substitute for spending some personal time in your new neighborhood checking out public transportation, schools, stores, parks, libraries and sports facilities.

3. The cost of moving. When you were in your 20s, you might have hired a U-Haul, called up some friends and done the work yourself. But you're probably not doing that when you're in your 50s or beyond. So, you'll need to pay a mover. You might need to store some furniture or other items at least temporarily. If there's a period of time between selling your old house and closing on your new one, there might be hotel bills, extra restaurant tabs and charges to board your pet.

4. The cost of re-establishing your home. After you move in, you might need to do some repairs or renovations. You'll likely want to paint the interior of the house, if nothing else. You might also want some new appliances. Then there's the cost of curtains and new rugs. And the living room sofa you thought would fit actually looks atrocious, so you have to buy a new couch. You might want new dishes or a new TV or computer as well.

5. The cost of re-establishing your life. You've spent a fortune to settle into your new home. But now what do you do? First, you have to restock your refrigerator and your pantry, and maybe buy new cleaning supplies. There may be additional charges or deposits to set up your Internet, TV or any other new service. You might want to join a golf, tennis or fitness club, which will probably require a deposit or initiation fee. And if your retirement dream includes a boat, get ready for docking fees and more maintenance, insurance and service fees.

Many of these costs of moving are mandatory. Some are discretionary. It pays to know the score ahead of time. If you're only moving to save one or two thousand dollars a year in property taxes, then you may find it's not worth it. But if you really want to change your life via a major downsize, relocation to a less expensive area of the country or a move to be near grandchildren (who may help out with your move and set up your new computer for you), then don't be scared away by these expenses. Just be prepared.

Tom Sightings is a former publishing executive who was eased into early retirement in his mid-50s. He lives in the New York area and blogs at Sightings at 60, where he covers health, finance, retirement and other concerns of baby boomers who realize that somehow they have grown up.

50 Great Colleges Still Seeking Fall Students And Offering Tuition Discounts

Last year at about this time I published a list of 50 well-regarded colleges that had reported to the National Association of College Admissions Counseling that they had not filled up their freshman classes, despite the traditional May 1st deadline passing. These schools were thus hungry for students and were offering cash rewards to acceptable applicants.
NACAC’s  new 2014 “College Openings Update” list is out and there are a whopping 470 colleges listed as still urgently seeking either freshman or transfers students. This large and growing list of colleges that are unable to attract enough students is an alarming reminder of how troubled and inefficient the market for higher education is in the U.S. The vast majority of colleges continue to engage in “prestige” pricing, but ultimately are forced to quietly offer deep discounts in an attempt to fill up their classes. Then, when even that doesn’t work, hundreds report that they still can’t find enough “customers.”  Economics 101 tells us that either college admissions officers and their consultants are inept, or more likely, that the supply of schools offering college degrees needs to drastically shrink. But don’t hold your breath waiting for colleges to go bankrupt en masse; history shows that these government subsidized institutions can linger on for years even when their financial statements bleed red ink.
As 18th century British nobleman Baron Rothschild once said, the time to buy is “when there’s blood in the streets.” He was referring to stocks, but the same holds true for those in the market for college bargains.
The table below and the accompanying slide show contains the names of 50 colleges that are lucky enough to have earned a spot in The 2014 Princeton Review Best 378 Colleges guide. Unfortunately, these great schools have also voluntarily placed themselves on NACAC’s list of colleges still in need of freshman and transfer student applicants for the coming term. Unlucky for them, but lucky for anyone with high school teens, looking for a top value school. Virtually all of the private-not-for-profits on our top 50 list offer deep tuition discounts, and not just for those with financial need.
In many cases, excellent liberal arts colleges like Knox College in Illinois, Lawrence University in Wisconsin and Wheaton College in Massachusetts offer tuition discounts to 80% or more of their accepted applicants. Our list of the top 50 is ranked in descending order according to average SAT scores, based on a 1600 tally of average math and critical reading scores. Needy colleges with undergraduate populations lower than 500 were excluded from our list.
Last year our top college was Sarasota’s New College of Florida, an excellent liberal arts and science public school with great weather and a 10 to 1 student to faculty ratio. It remains near the top of our list but from a selectivity standpoint the two top spots belong to Sarah Lawrence College in Bronxville, New York and State University of New York at Binghamton. Sarah Lawrence has a reputation for attracting smart, artsy students, with a serious left of center bias. There are no exams, or required courses and SAT scores are optional. Notable alums include Chicago Mayor Rahm Emanuel, designer Vera Wang and film and tv director J.J. Abrams.
I was surprised to find out that SUNY Binghamton didn’t fill up its Class of 2018. Back when I was growing up on Long Island the smartest kids in my high school knew that outside of Cornell University’s three public colleges, Binghamton and Albany were generally regarded as top notch and acceptances were coveted. That was more than 30 years ago and apparently SUNY Binghamton has been replaced by smaller and more picturesque SUNY Geneseo as the hot New York State public college.
Other excellent public schools looking for freshman include the University of Florida, University of Vermont, Arizona State and City University of New York’s Bernard M. Baruch College. Among the private-not-for profits, Gonzaga still has room as does the University of Iowa and liberal arts mecca Mills College, located in the foothills of Oakland, CA.
While we only included 50 of Princeton Review’s Best Colleges from among NACAC’s needy 470, at least another 20, including NYC’s St. John’s University, Alfred University in upstate New York and Green Mountain College in Vermont are looking for freshman applicants.

Source : Forbes

7 Myths About Life Insurance

Life insurance is kind of like the Rodney Dangerfield of financial planning. As one of most people’s least favorite financial topics, it gets no respect. When people think of a life insurance agent, they think of someone like this guy. Yet, it’s something that almost everyone needs and not having it when you need it can be devastating to your family’s well being. Here are some of the most common and dangerous myths about this often misunderstood product:
1) Your employer-provided life insurance is all you need.
Your employer may provide you with life insurance equal to 1-2 times your annual salary and you may even be able to purchase up to 4-6 times your salary. But there are several problems with that. First, your “salary” doesn’t typically include commissions, bonuses, and second incomes. Second, to replace your income for dependents, you generally need at least 5-8 times your income and some experts even recommend 10-12 times. (You may want to use a calculator like this to determine your specific needs.)
Even if you do have enough insurance through your job, you may lose it when you leave. You may be able to convert your optional insurance to an individual policy or purchase one on your own but either way, it may be much more expensive than purchasing a policy today, especially if your health deteriorates.
Finally, you may actually be able to get a better deal on your own, especially if you’re young and/or in above average health. Even if your employer’s policy is initially cheaper, the cost may go up each year and you may not be able to take it with you when you leave, You can purchase an individual policy that locks in your rate for a period of time or allows you to build cash value if you want to keep the policy your whole life. Only include your employer’s coverage in covering your needs if you can take it with you at affordable rates. Otherwise, consider it a  bonus.
2) Only the breadwinner needs life insurance.
“Imagine if something were to happen to the stay-at-home spouse in your family. The breadwinner may need to hire someone to clean and take care of the kids and that can cost a lot of money. Unless your family would have that extra income to spare, you may need life insurance on both spouses,” advises Marvin Feldman, President and CEO of life insurance non-profit organization, Life Happens. Insurance on the stay-at-home spouse also gives the working parent the opportunity to take time off work and help the family adjust to their loss.
3) Life insurance is really expensive.
A recent study conducted by Life Happens and LIMRA, found that 25% of Americans said they need more life insurance but only 10% planned to purchase it within the next year. The main reason given was cost, with 63% saying that it’s too expensive. However, 80% of them overestimated the cost. 25% thought that a $250k 20-year level term policy for a healthy 30-yr old would cost $1k a year or more when it actually would cost about $150.
4) My health disqualifies me from life insurance.
There are a lot of companies that cover a range of health conditions and some even specialize in high-risk cases. You can also purchase a policy that is not medically underwritten at all. Just be aware that they tend to be more expensive and have lower coverage limits.
5) Everyone should buy term and invest the difference.
While this generally makes sense for most people, a permanent policy can be a better deal if you need life insurance for your entire life. Some examples would be to provide for a special needs child or to cover estate taxes. For a small percentage of the population, the cash value can also be a good investment if you need life insurance, are in a high tax bracket and have maxed out all your other tax-advantaged options.
6) You get a better deal purchasing life insurance online.
“The Internet can be a great place to research life insurance and find an agent but you actually pay the same price whether you purchase a policy online or through a human being,” says Feldman. “What you don’t get online is the personal service that can help you figure out how much you need, which company is likely to give you the best price based on your health situation, and what the terms on the application mean. A web site may not realize that you need coverage for your whole life due to a child with special needs or that your health won’t qualify you for the rates offered by the lowest price company. Most importantly, a commission-motivated agent can help motivate you to actually get the policy as it’s something very easy to procrastinate.”
7)  You’re too young to worry about life insurance.

Life insurance actually makes the most sense when you’re young since the premiums are less expensive and you have fewer assets to pass on to heirs. The longer you wait, the more expensive it will tend to be and the more likely you are to develop a medical condition that makes it much more expensive. Of course, the biggest problem with procrastinating life insurance is that by the time you need it, it’s too late to get it.
Every person’s situation is unique. Some people don’t even need insurance at all. Whatever decision you make when it comes to life insurance, just be sure it’s an informed one. After all, if something does happen to you, you don’t get to come back and relive the day like Bill Murray did in Groundhog Day.
Erik Carter, JD, CFP® is a senior resident financial planner at Financial Finesse, the leading provider of unbiased financial education for employers nationwide, delivered by on-staff CERTIFIED FINANCIAL PLANNER™ professionals. He is also available for speaking opportunities on personal finance issues. To inquire, please email ffpress@financialfinesse.com

A Walk Through of Financial Planning Process.
As an adult, almost every decision you make, mostly has to do with money: your diet plan, your education & career goals, a family vacation & etc, all involve financial planning component to it. Hence financial planning is important to your life; success or fail to plan your financial will impact your life related to money, whether you chase after money (if you are in debt) or you make the money work for you (if you invest your money to increase your net worth).
Many people don't plan to fail but they fail to plan; either they don't know the correct financial planning process or they are chartered procrastinators who have thousands of excuses not to get started their financial planning process. Don't let the procrastination to be your obstacle to get started your financial planning to secure for tomorrow. The bottom line for everyone to plan their financial successfully is to know the process of financial planning and know how to get started; here are six areas of financial planning that we will review together. Please note that these areas are all interrelated. What affects one area impacts the others as well.
1. Goal Settings
In your financial planning process, you can always get started with your financial goals setting. You should make your goals realistic so that they will be achievable. In order to set a realistic goal, you need to know your financial situation and the project future financial ability. Takes out all the important documents such as mortgage agreement, bank account fixed deposit, car loan contract & etc; based on all these information, compile a list of your current debts and assets. And from there, estimate the timeline when you will paid off these debts and make a projection of your future incomes. You set your goals based on these results at a realistic and achievable level.
2. Risk Management
Common method of risk management is using insurance to protect your assets from a loss that you couldn't afford on your own. Insurance is a financial product that will give you a piece of mind. The insurance company will try to make you whole if you suffer a loss. Insurance coverage for assets, disabilities, sickness and even life is an important element that you should include in your financial planning process to minimize the potential risk of loss.
3. Tax Planning
Are you taking advantage of all tax benefits Uncle Sam has to offer? Although Uncle Sam has always has his hand in your wallet because he wants his fair share, but he also offer tax benefits for you, so you need to know how to take advantage of these benefits. The goal of tax planning is to help you minimize your federal income tax liability as much as you are allowed by tax law while saving for retirement.
4. Retirement Planning
When you are at age 25, retirement will seem so far away. At 25, you will think 60 are old, but when reach 60, you think 85 are old. Retirement planning should begin with your first job. So you need to figure out how much to save from now so that you will reach you goals of retirement later. There is never too early to start planning for your retirement.
5. Investment Planning
In your financial planning process, you should think of how to increase your asset net worth and achieve your financial goals with what you have right now. Investing is a tool you can use to achieve your financial goals that you set for yourself. All investments come with certain risks; you need to understand how much risk you should be taking with your investment to achieve your goals.
6. Estate Planning
Life journey will end one day, but many people try to avoid thinking about. The fact is no one will get out of this world alive, so you might as well plan for it. There is a need to protect your assets from Uncle Sam and to have things get in order for your loving family that you will left behind later.
In Summary
Financial planning is important to your life; success or fail to plan your financial will impact your life related to money. The six areas of financial planning that we just reviewed are all interrelated. Hat affects one area impacts the other areas as well, you should be aware of these areas and ho they impact your financial strategies.
Personal Financial Planning – Your Road To Financial Security

Financial planning is two steps away from achieving financial security. The next step is adhering to the plan. This is the basic formula in personal financial planning. But when do you need to start your planning?
Your Plan
Sound financial management is not in anybody's agenda. When problems crop up, people look towards planning as a way out of their financial problem. In instances when they've occurred huge credit card debts, they realize to see the folly of their careless spending.
Talk to any retired worker and listen to what they have to say. The unlucky ones will tell you that they regret ignoring the advice to get a retirement plan or an insurance policy. Had they heeded the advices of well-meaning friends they wouldn't be in dire financial straits in their old age. They lacked the will to get on with their personal financial planning when they were younger and employed.
The lucky retirees will tell you how they endured living with a budget and saving towards a future. They were fortunate because they found expert advice when they started to take interest in financial planning. The thought of being old and penniless one day bolstered their resolve to follow the plan conscientiously.
Planning Your Finances
Mapping out your financial plan starts with assessing your resources and liabilities. Include your regular expenses to get by from one month to the next. Review the list and look for areas where you can minimize spending and the money saved added up to the monthly contribution towards your financial goal--paying off credit card debts, investments, or savings.
Your financial plan should be manageable and realistic. Do not slash a huge chunk from regular expenses just to shorten your time plan of 6 months to three months. This will backfire and you'll find yourself dipping your fingers into the funds intended for other purposes, or you'll be discouraged at some point to continue with your financial plan.
Make your planning simple, doable, and realistic. A fool-proof plan never assumes that you and your family can live on a drastically cut budget. The plan should have a timescale that will allow you save money and still have enough left-over for some minor financial setbacks. The cardinal rule to achieve your financial goals is never to touch the money that's intended for your future security.
Getting Professional Help
Having qualms about your ability to cope with financial plan? Get professional help. A professional financial planner can devise a financial plan that suited to your needs and lifestyle and introduce avenues for investment, savings, and spending.
He will be constantly monitoring how you are doing concerning the financial plan drawn up. He'll be able to give advice when you think that the going is getting rough. Expect some difficult times when you're investing for the future.
It may cost to get professional help but unless you can do it on your own live by the financial goals, go ahead. Whether you get professional help or not, the success of your personal finance aims will hinge on your determination to make it work.
Tip For Financial Planning.

The following tips will help get you in gear to start your financial planning. Once you have made financial planning part of your routine, it won’t seem so difficult. But getting your financial planning started can be the most difficult thing. These tips will help motivate you to make financial planning one of your main goals.
Financial Planning Tip #1 Pay off Debt
One of the biggest factors fighting against financial planning is debt, especially credit card debt. If something starts off as a small debt it turns into a big one simply because you were not paying off the debt. Financial planning means you have a plan and paying off debt should be the first goal of your plan.
Financial Planning Tip #2 Invest
Another financial planning tip is to invest. Financial planning means you are saving for the future in many cases, so you will want to take money you earn today and invest in the stock market, in bonds, IRAs, 4019k) or a mixture of all of the above. Saving your money with the help of financial planning will help money grow all on its own.
Financial Planning Tip #3 Spend Less than You Earn
This is tough for people to understand and often times what they resist most when they begin financial planning. This is because Americans always want what is bigger and better. Regardless, financial planning is more important than consumerism. Make spending less than you earn part of your financial planning.
Financial Planning Tip #4 Budget
A great financial planning tip is budgeting. You won’t be able to save unless you know what you spend. Make budgeting part of your financial planning and you will realize saving is not so hard.