Retirement Planning Tips for the Self-Employed
For the self-employed, retirement planning can be a bit more complicated than for the rest of the population. They don’t have the benefit of an employer-sponsored plan and an HR department where they’ll find counseling and advice on planning for their retirement years. However, that doesn’t mean the self-employed can’t have a comfortable retirement or that they should work until they drop. With a little bit of planning and creativity, self-employed individuals can save enough for a laid-back retirement full of fun, travel, and well-earned rest. Here are eleven tips to get you started.
Tip #1: Start saving for retirement as much and as early as possible
When we’re young, it’s hard to focus on long-term goals like retirement, and we tend to focus much more on our immediate needs. This includes things like buying a house or a car, taking care of student debt, paying monthly bills, and more. If you’re a passionate entrepreneur running your own business, even things like housing and a car may come second in terms of priorities; you usually focus all of your time and energy on business management and growth, so retirement planning falls way behind.
However, if you want a comfortable retirement, the best time to start saving was yesterday; the next best time is today. At this point, what matters is not how much you save for retirement every month or year (we’ll cover that in a moment). What really matters is to get started.
However, if you want to retire comfortably, you must start saving as much as possible as early as possible. The sooner you start contributing to a retirement account, the more time your money has to grow through compound interest.
Why does this matter?
Most people don’t grasp just how much of an impact starting to save one, two, or three years earlier can have on the size of your nest egg by the time you retire.
Let’s run some simple numbers. Suppose you put $10,000 in a 401(k)when you’re 35. It will grow at a 5-8% interest rate. Taking the lower 5% as interest rate, by the time you reach retirement age, those $10,000 will have grown to $43,219. If you wait one year and deposit the money when you’re 36, after 29 years, your balance will be $41,161 instead. That’s $2,058 less you’ll have at your disposal for waiting just one year. Start saving when you turn 40, and you’ll end up with $33,864. That’s over $9,000 less, even though it’s the same $10,000 you started with.
Now imagine you don’t just save $10,000 in total, but save roughly that amount every year, which is what most people saving for retirement do. If you run the numbers, the difference can be tens of thousands of dollars for waiting a couple of years instead of starting to save right away.
Tip #2: Even if you’re your own boss, pay yourself a salary
Just because you don’t have an employer doesn’t mean you can’t pay yourself a salary. This is especially important if your business is doing well and you’re reinvesting most of the profits back into the company and forget to take some of them out as income. When it comes to retirement planning, you need to know how much you’re making every month so you can budget accordingly and set enough money aside for the future. The best way to ensure this is to pay yourself a salary.
How much should you pay yourself?
The answer to this question depends on several factors. The most important ones are:
- Your current expenses
- How well your business is doing
- The long-term financial goals for your business
- How much money you’ll need to live comfortably once you retire (more on this later).
Tip#3: Choose the right retirement account
When you’re employed by someone else, there’s a good chance your employer will offer you access to a 401(k) retirement account. If they don’t, other options are still available, like an IRA. For the self-employed, the options are a bit more limited, but there are still several retirement accounts you can choose from. The most common four are:
- One-participant 401(k): This is also known as a Solo 401(k), and it’s perfect for self-employed individuals or business owners with no employees. The contribution limit for 2022 is $20,500, but if you’re over 50, you can contribute an additional $6,500 as a catch-up contribution.
- Simplified Employee Pension Individual Retirement Account, or SEP-IRA: This account is another tax-deferred retirement account available to small business owners and the self-employed. The contribution limit in 2022 is the lesser of 25% of your net earnings from self-employment or $61,000.
- Savings Incentive Match Plan for Employees Individual Retirement Account, or SIMPLE IRA: This retirement account is available to small business owners with 100 or fewer employees. The contribution limit in 2022 is $14,000, but if you’re over 50, you can also contribute an additional $3,000 as a catch-up contribution to reach $17,000.
- Keogh plan: This account is also known as a qualified retirement plan, and it’s available to self-employed individuals or unincorporated businesses.
Each of these retirement accounts comes with its pros and cons, so you must do your research to find the best one for your specific situation. They all share one trait: they’re funded with pre-tax dollars, meaning you’ll be able to defer paying taxes on them until you retire.
However, if you expect to reach a higher income bracket as time passes, choosing a Roth IRA or a Roth 401(k) may be wiser. These accounts are funded with after-tax dollars, meaning you won’t get the tax break now but will when you retire and start withdrawing from the account.
After making your decision, though, the most important thing is to start contributing to one of these accounts as soon as possible.
Tip #4: Estimate how much you need to save for a comfortable lifestyle during retirement
When you start saving for retirement, what matters most is that you start early and save as much as possible without disrupting your short-term plans and lifestyle. But, eventually, you’ll want to begin crafting a real retirement plan. That means:
- Setting clear and ambitious yet achievable long-term goals and breaking them into smaller, more manageable ones.
- Drafting a clear strategy that’ll serve as a roadmap to achieve those goals
- Acting on that strategy and sticking to it as closely as possible
- Performing annual controls to see how far you have come, what you’ve accomplished, where you fell short, and what needs to change in the following year to get back on track or reach an even more ambitious goal.
When it comes to setting goals, these need to be specific and measurable. Therefore, you’ll have to define what you expect your retirement to be like so you can estimate how much income you’ll need to pay for that lifestyle without outliving your savings.
This estimate doesn’t have to be perfectly accurate, but rather an assessment that will help you see a ball-park figure of how much you should be saving every month from your income to enjoy the retirement you want.
Tip #5: Invest in a diversified mix of assets
When most people think about retirement, they picture themselves sitting on a beach sipping cocktails or playing golf. But to make that dream a reality, you need to have enough money to cover your living expenses for 20, 30, or even 40 years.
The previous tip was about determining how much your living expenses add up to. However, once you run the numbers, you’ll likely find that your current income isn’t enough to save the amount you need every month. If that’s the case, don’t despair. You can dramatically lower the money you’ll need to set aside every month if you manage to increase the return on your savings, even if only by a little.
This means investing your savings, not just leaving them to grow in a savings account. Regarding investing, stocks and bonds are the two most common asset classes. But there are also other options like real estate, mutual funds, exchange-traded funds (ETFs), and even NFTs and crypto trading. The key is to invest in a diversified mix of assets to minimize the risk of losing money while still giving yourself the chance to earn a higher return.
For example, let’s suppose you invest the same $10,000 as before when you’re 35, and you manage to get an average of 6% growth instead of 5%. In that case, instead of $43,219, you’ll have $57,435 when you retire. That’s a difference of over $14,000 for that extra 1% return, without saving a cent more than what you were saving in the first place!
Tip #6: Secure a minimum level of income
No matter how much money you have saved for retirement, it’s crucial to have a plan in place to ensure you’ll have a minimum income level every month. There are several ways to do this, but the most common is to purchase an annuity.
An annuity is a contract between you and an insurance company. In exchange for a lump-sum payment, the insurance company agrees to make regular payments to you for a set period of time or the rest of your life. There are different types of annuities, and you can customize contracts to your heart’s content by adding contract riders.
Annuities are a way to protect your nest egg and to make sure you have a minimum level of income every month, but they’re not without their drawbacks. For one, annuities are complex financial products, and it can be challenging to understand all the different features and benefits. Additionally, annuities come with fees and commissions that can eat into your investment returns, which is something you need to watch out for.
In any case, what matters most is that you set up a safety net you can fall back on in retirement, so you don’t have to worry about running out of money or outliving your savings.
Tip #7: Live a healthy lifestyle
No list of tips about preparing for old age would be complete without this important piece of advice. One of the best ways to reduce your medical expenses in retirement is to live a healthy lifestyle when you’re young. This means eating healthy food, exercising regularly, and getting regular check-ups. Of course, this isn’t always easy, but it’s worth it in the long run.
A healthy lifestyle will help you avoid costly medical bills down the road and help you feel better and enjoy your retirement more. After all, what’s the point of saving for retirement if you can’t enjoy it?
So make sure to take care of yourself now, and you’ll be thankful later.
The bottom line
There’s no one-size-fits-all answer regarding retirement planning, especially if you’re self-employed. However, following these tips should give you a good start. Remember to invest in a mix of assets, secure a minimum income level, and live a healthy lifestyle. And most importantly, don’t wait until the last minute to start planning and saving for your golden years.
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The Benefits of Standing Desks for Office Workers
Standing desks have become increasingly popular in recent years, and for good reason.
In this article, I’ll discuss the benefits of standing desks for office workers.
The Dangers of Prolonged Sitting
Sitting for extended periods can be harmful to your health.
Prolonged sitting has been linked to various health problems, including obesity, cardiovascular disease, and type 2 diabetes.
It can also increase the risk of certain types of cancer, such as colon and endometrial cancer.
The Benefits of Standing Desks
Standing desks offer a range of benefits that can improve the health of office workers.
This is not to say that you have to stand the entire day — but forcing oneself to stand several times during the workday will significantly improve your health.
One of the most significant benefits of standing desks is that they can improve posture. Sitting for long periods can lead to slouching, which can cause neck and back pain.
By standing at a desk, you can maintain a more upright posture, which can reduce the risk of neck and back pain.
Tips for a Good Posture
- Stand with your feet hip-width apart.
- Ensure your feet are flat on the floor and your shoulders are relaxed.
- Keep your head straight, eyes looking forward, and chin parallel to the floor.
- Keep your arms loosely at your sides, with your elbows bent at 90 degrees.
- Take regular breaks to move around, stretch, and relax your back, neck, and shoulders.
Increased energy levels
Standing desks can also increase energy levels, helping you to stay alert and focused throughout the day.
It’s because standing desks can improve blood circulation, which helps to deliver more oxygen and nutrients to the brain.
Standing desks can also improve mood, helping to reduce stress and increase feelings of well-being.
Having a good mood in the office can have a significant impact on the productivity and overall morale of the workplace.
A good mood has been linked to improved performance, higher levels of engagement, and even better physical health for office workers.
Increased Focus and Productivity
Standing desks have also been shown to increase focus and productivity. When we sit for long periods, our bodies tend to become sluggish, and our minds start to wander.
It can lead to a decrease in focus and productivity.
In contrast, standing desks keep us alert and focused, as they require us to maintain an upright position for a while — and maintain a constant state of movement.
Here are some tips to maximize your productivity while at a standing desk:
- Listen to Music.
- Take Breaks.
- Use a Footrest.
- Keep it Clean.
Reduced Risk of Health Problems
Another benefit of standing desks is the reduced risk of health problems. Sitting for long periods has been linked to a range of health problems, including obesity, heart disease, and diabetes.
By using a standing desk, office workers can reduce their risk of these problems and maintain a healthy weight.
Additionally, standing desks have been shown to reduce the risk of certain types of cancer, including colon cancer and breast cancer.
Promotes Weight Loss
Weight loss is a benefit (from bestdesksgeek dot com) of standing desks that often goes unnoticed. Standing desks offer a great way to burn extra calories while working.
Studies suggest that standing at a desk can burn up to 50-110 extra calories per hour compared to sitting. This can add up over time and contribute to weight loss.
Finally, standing desks can also help improve the quality of sleep. Sitting for long periods has been linked to poor sleep quality, as it can cause discomfort and stress.
On the other hand, standing desks promote good posture and reduce stress, which can lead to better sleep quality.
Additionally, standing desks have been shown to reduce the risk of sleep disorders, such as sleep apnea.
Cost-Benefit Analysis of Implementing Standing Desks in the Workplace
While the benefits of standing desks are numerous, they do come with a cost.
Below is a cost-benefit analysis of standing desks:
Cost of Implementation
While the benefits of standing desks are numerous, they do come with a cost.
The cost of implementation can vary depending on the type of standing desk you choose and the number of employees you need to accommodate.
It’s important to consider the cost of the desks themselves, as well as the cost of any necessary modifications to the work environment, such as electrical and plumbing upgrades.
Return on Investment (ROI)
Despite the upfront cost of implementing standing desks in the workplace, the return on investment can be substantial. Improved employee health, increased productivity, and reduced absenteeism can all lead to improved bottom-line performance.
How Incorrect Posture Can Lead To Health Issues While Using a Standing Desk?
If you work at a standing desk, it’s important to be aware of the potential health risks associated with incorrect posture.
Poor posture can lead to several health issues, including musculoskeletal problems, headaches, and fatigue.
One of the most common problems associated with incorrect posture is a pain in the neck, shoulders, and back.
This is often caused by slouching or hunching over, which puts unnecessary strain on the spine. Poor posture can also lead to tension headaches and migraines.
Fatigue is another common problem caused by incorrect posture. When you stand for long periods, it’s important to maintain good posture to avoid fatiguing your muscles.
If you slouch or hunch over, you’ll likely start to feel tired more quickly.
Incorrect posture can also cause problems with circulation. When you stand, your blood flow should be directed downwards towards your feet.
However, if you slouch or hunch over, your blood flow can be restricted, leading to dizziness, lightheadedness, and even fainting.
Are standing desks more comfortable than traditional seated desks?
Yes, standing desks are more comfortable than traditional seated desks. Standing desks offer several comfort benefits, including reduced risk of pressure injuries and improved focus and motivation.
How often should I use my standing desk?
It’s also important to use your standing desk regularly to get the most benefit from it.
Is a mat necessary when using a standing desk?
No, a mat is not hundred percent necessary, but for standing for long periods — it provides a non-slip surface for added safety.
Standing desks offer a range of benefits for office workers, including improved posture, increased focus and productivity, reduced risk of health problems, increased energy levels, and better sleep quality.
With so many benefits, it is no wonder that standing desks are becoming a popular choice for office workers around the world.
In this article, I’ve discussed the benefits of standing desks for office workers.
What benefits have you seen from your standing desk? Let us know!
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What is a Divorce from Bed and Board?
If you are considering filing for a divorce from bed and board, it is important to understand what it entails. Commonly known as a “legal separation,” this type of dissolution of a marriage involves much more than just the two parties not living together anymore; instead, it may include property division and child custody rights, among other things.
In some cases, obtaining a bed and board divorce can even be difficult to obtain in certain states due to the laws related to separations. Regardless of your motive behind wanting or needing one, knowing all that goes into such an arrangement can help you make informed decisions regarding your future.
Overview of divorce from bed and board
A divorce from bed and board is a type of divorce that involves two parties legally separating but never actually getting divorced. It’s not uncommon for couples who want to pursue divorce proceedings to first consider this option, as it allows them to maintain the legal benefits of being married without having to endure the heartache and stress associated with an actual divorce.
What are the benefits of divorce from bed and board?
The main benefit of divorce from bed and board is that it allows couples to divide assets, establish custody rights, and make arrangements pertaining to support payments in a way that’s agreeable to both parties. This means they can move on with their lives while still enjoying many of the benefits of marriage, including being able to file jointly for taxes and having access to health insurance.
Are there downsides to divorce from bed and board?
Though divorce, from bed and board, may seem like the perfect solution for some couples, it is important to understand that it can be difficult or even impossible to obtain in certain states due to the legal definition of divorce. Additionally, some couples may find themselves stuck in a limbo-like situation if they remain legally married but live separately.
Couples should also be aware that divorce from bed and board does not dissolve a marriage — meaning the two parties are still technically married and can’t remarry without getting an actual divorce.
Filing for divorce from bed and board is a serious decision that should not be taken lightly. It’s important to consult a lawyer experienced in family law before deciding if this option is right for you. With the right guidance, you can decide what’s best for your situation and move forward with confidence.
What are the grounds for a divorce from bed and board?
In order to file for divorce from bed and board, you must have a valid reason, such as:
- Adultery – Adultery is one of the most valid grounds for divorce from bed and board. It is voluntary sexual intercourse between two married people, one of whom is not the other’s legal spouse. But in many states — the judges don’t care either way.
- Abandonment – Abandonment involves one spouse leaving the marital home without any intention to return or provide support for at least one year.
- Cruelty – Cruelty can be defined as any physical or mental abuse suffered by either spouse.
- Separation – Separation occurs when spouses have lived apart for at least a year due to disagreements or other factors.
- Habitual Intemperance – Habitual intemperance is the excessive use of drugs or alcohol by one spouse.
- Excessive Spending – This involves one spouse spending money in a way that is detrimental to the other spouse’s financial interests.
Understanding divorce from bed and board can help you make an informed decision when considering your legal options. Before making any decisions, it’s important to consult a lawyer to ensure this is the right choice for you. With the right guidance, you can move forward with confidence.
What are the consequences of a divorce from bed and board?
The consequences of divorce from bed and board depend on the agreement reached between the two parties. Additionally, they may have difficulty remarrying in the future without obtaining an actual divorce.
Overall, this type of divorce can be a viable option for couples who are looking to divorce but wish to maintain some of the benefits of marriage. It is important to understand all of the legal implications before making any decisions, so it’s always best to consult an experienced family law attorney. With the right guidance, you can make informed decisions that are in your best interests.
How can a divorce attorney help you with this?
A divorce attorney can provide invaluable assistance, especially in cases where you’re going through a divorce from bed and board (garrettandwalker dot com, same title). They will advise you on the best course of action and ensure that all legal requirements are met. They will also work with you to create a divorce agreement and represent your interests in court if needed.
With the right guidance, you can make informed decisions that are in your best interests. If this is the right option for you, a divorce lawyer can help you to understand all the legal aspects. With a divorce attorney by your side, you can move forward with confidence.
Divorce from bed and board is a viable option for couples who wish to divorce but remain married. It can provide some of the benefits of marriage without many disadvantages. Before making any decisions, it’s important to understand all of the legal implications and consult an experienced lawyer. With the right legal guidance, you can make informed decisions that are in your best interests.
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The Top 7 AI Podcasts You Need To Hear Now
With artificial intelligence now being used to write everything from college homework to Congressional speeches, it’s more important than ever to stay on top of the latest advances in machine learning, natural language processing, and all things AI.
We’ve brought together a list of seven of the top podcasts that track and explain the newest developments. They look behind the scenes at the technology behind the platforms, and they discuss how artificial intelligence is already upending business, marketing, data analysis, and more.
The TWIML AI Podcast
The TWIML AI Podcast used to be known as This Week in Machine Learning & Artificial Intelligence. The new name is shorter and snappier, but the content is just as deep and complex. Hosted by Sam Charrington, the podcast has produced more than 630 weekly episodes featuring interviews with a host of guests — usually technicians and scientists—working in the field of AI. The subjects of the discussions are often fairly complex. If you want to understand the human thinking behind artificial thinking, the show is essential listening.
The Bad AI Show
If interviews with Stanford professors aren’t your thing, try the Bad AI Show. Hosted by Joel Comm and Travis Wright of the Bad Crypto Podcast. The pair take a fun, laidback approach to new technology, explaining clearly — and wittily — the latest developments in artificial intelligence and its practical effects. Think of the TWIML AI podcast as a Stanford lecture and the Bad AI Show as the lounge next door. It’s a fun, relaxed chat with smart people about AI topics that get everyone thinking. The show is released as both an audio and video version.
The AI Podcast
One of the biggest challenges that a discussion of AI generates is how the new technology will be applied in the real world. Noah Kravitz’s The AI Podcast has already generated almost 200 answers. Each episode features an interview with experts using artificial intelligence to further their work. They’ve included a wildlife biologist tracking endangered rhinos, an astrophysicist analyzing starlight, and language learners grappling with Arabic pronunciation and even the delivery of sports highlights.
As you listen to those interviews with people applying AI to such a broad range of fields, it’s worth asking about the effectiveness of AI in solving those problems and whether they couldn’t be solved in an easier way. Claims for the benefits of artificial intelligence will grow, so make sure you’re also listening to Kyle Polich’s Data Skeptic. The podcast has already produced more than 470 episodes with interviews that take down the hype and take a realistic view of what AI can and can’t do.
The AI in Business Podcast
One area where both the hype and the expectation will be highest is in business applications of artificial intelligence. Each week, on the AI in Business Podcast, Daniel Faggella, the CEO of Emerj Artificial Intelligence Research, interviews AI executives from leading firms and startups to explore how business is adapting AI and exploring the opportunities the new technology offers.
The Marketing AI Show
Business is a broad topic. The Marketing AI Show tries to narrow things down with a focus specifically on the way marketers are using artificial intelligence to improve sales. The podcast is created by the Marketing AI Institute and the Marketing AI Conference (MAICON), and it’s essential listening for anyone wondering how the new technology can help their business identify leads and improve conversions.
Eye on AI
Finally, Eye on A.I. takes a broader, more journalistic approach to the developments of artificial intelligence. Out every two weeks and hosted by New York Times correspondent Craig S. Smith, each episode features an interview with a leader pushing AI into new ground. Episodes have discussed AI in supply chain optimization and finance but they’ve also delved behind the scenes to look at issues surrounding privacy and the future of AI itself.
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