Showing posts with label Retirement. Show all posts
Showing posts with label Retirement. Show all posts

Sunday, 17 March 2013

Heating Up the Bedroom at Any Age

by Alicia Potee

Lots of things get better with age—and these days, metaphors drawing on everything from wine to classic cars are so commonplace as to be cliché. But sex is one thing you won’t usually see topping that list.

It’s a bit of a myth, really—the idea that good sex is reserved for the young. Yet the notion is so pervasive that many older people have given up on a healthy sex life after 50. But the truth is that there’s nothing stopping you from enjoying emotional and physical intimacy long after you’ve reached retirement.

And yes, it can be better than ever. It just might require a little more “maintenance.”

Bringing Balance Back to the Bedroom

Tuesday, 16 October 2012

5 Things Men Fear Most About Aging

It starts with sex and goes downhill from there.


By , Caring.com senior editor
man-looking-up
Worried about getting old? Who isn't -- except perhaps those who are already unmistakably there. Survey after survey shows the elderly are more content with life, less depressed, and less fearful of death than the young.
"I'm a lot more sanguine and comfortable about aging at 76 than I was at 56," says George Vaillant, professor of psychiatry at Harvard Medical School who codirects its Study of Adult Development.

In the meantime, though? Guys in midlife harbor plenty of fears when they peer ahead. (Women have their own, slightly different set of aging fears).

Among men's top fears about getting older:

Thursday, 17 May 2012

Living in the Present

Exodus 16:11-21


When you were a kid, did you ever wish you could see into the future? Most kids wonder what will happen to them as the years pass by and they grow older. Where will they go to school? Will they go to college? What about a career? Will they get married and have a family?

This kind of thinking doesn't end when a person reaches adulthood. Singles wonder whether there's a spouse for them out there somewhere. Parents dream about what their kids will grow up to be. College freshmen wonder about their eventual career path; older workers prepare for-or worry about-their retirement years.

Human nature compels us to look ahead with wonder. Dreams of the future make the drudgery of work today worthwhile. Anticipation of future events gets us up in the morning and forces us to plan for tomorrow. It's what separates a man from his best friend, his dog.

Tuesday, 8 May 2012

Top Five Airborne Threats to Senior Health

Senior citizens have their share of concerns these days, but perhaps the single most important issue they face is health care. With the baby boomer generation reaching retirement age and sweeping changes being proposed for pensions, retirement funding, and health care services, now more than ever senior citizens need to educate themselves on the unique factors affecting their health. One such consideration is indoor air quality (IAQ). Although air quality sometimes takes a back seat to other potential health hazards, experts contend that seniors should be especially concerned about the air they breathe. This article will examine five of the biggest influences on indoor air quality for seniors.

The subjects discussed below are not ranked in order of importance. Some factors will affect seniors more than others depending on the specifics of each individual situation. In fact, smoking is commonly regarded as the number one air quality issue for seniors. The health effects of tobacco smoke are of course well documented. The five concerns below are air quality issues that may be less understood by seniors and the general public. Always contact your regular health care provider if you feel that you are experiencing symptoms from poor IAQ.

Monday, 16 April 2012

Paul Milligan: From Poverty to Prosperity

Successful business entrepreneur and the Director of Charis Bible College's School of Business, Paul Milligan. (Click to enlarge)
Paul Milligan watched his dad, DeLoyd Milligan, work hard to provide and gain financial security and stability for his family. Having been raised during the Great Depression and having served in World War II, his father was determined to give his son the foundation he would need to succeed in life. DeLoyd's motivation stemmed from living a life that was either trying to starve him to death or kill him in war.

Paul’s dad instilled the idea that financial security came from discipline and hard work, two things DeLoyd demonstrated his entire life. He taught Paul that working for a good company, giving more than was expected and retiring with enough money to live comfortably should be his goal in life. Paul became keenly aware of his dad’s need to see him succeed. In fact, by the time he was fourteen, Paul’s dad had helped him land an afterschool job at a Western Auto Store. When Paul graduated Salutatorian of his high school class, his dad was thrilled that Paul was on the right path.



Paul sharing a message in 2004, at a church in Lincoln, England.
(Click to enlarge)
True to his values and work ethic, DeLoyd retired in 1985 after working in sales for over thirty years. Needless to say, in 1988, when Paul announced that he would be quitting his stable and secure job as the Vice President of a large company to start a new business, Global Technical Service, Inc., his dad was thoroughly disappointed. It wasn’t easy for Paul to go against everything his dad had taught him, but he had begun to receive new revelation from God in the area of finances.
Paul married his wife, Patsy, in July, 1974. The couple lived paycheck to paycheck for years, until Paul heard Andrew and some other radio ministers, who began to build his faith for Paul and his wife, Patsy.
(Click to enlarge)
financial freedom. He started seeking God diligently about how He wanted him to manage money. He and Patsy were attending at Baptist church in Arlington, Texas; a church that did not embrace what Paul was learning from Andrew.
Paul remembers being impacted by Andrew’s teaching and became convicted to receive the baptism in the Holy Spirit. “I was very conflicted over this [baptism] at this time, but there was such an anointing on Andrew’s teaching, I knew it was God.” Knowing that his wife would not approve, Paul waited until he was home alone to attempt to receive the baptism. He got down on his knees in his living room and prayed, but nothing seemed to happen. Paul was not sure whether or not he had received the baptism.
Paul and Andrew. The two first met in the late 1980's. (Click to enlarge)That night, however, things changed. “I literally sat, bolt upright in bed, at about 2 a.m., speaking in tongues—scared my poor wife to death,” Paul shared.

Paul continued to gain revelation of God’s will to prosper His people. Over the past 25 years, as he applied what the Lord showed him, he has purchased or started a total of fourteen businesses. “It was in about 1984 that we began to live the plan God had shown us for debt free stewardship and giving according to his Word. We give thanks to God for revealing to us, at a relatively young age, how to be prosperous according to His plan for our lives,” said Paul.
Andrew invited Paul to be part of AWM's Board of Directors in 2002. (Click to enlarge)
The fruit of Paul’s business ventures are a clear indication to others of his revelation of the Word of God. In 1996, Andrew had known Paul for nearly eight years and was familiar with his success. He asked Paul to review the financial state of Andrew Wommack Ministries. Paul agreed and he helped restructure the ministry's accounting system. His efforts helped Andrew establish solid financial systems within the ministry. In 2002, Andrew asked Paul to join the AWM Board of Directors.
After retiring from business, Paul stepped into full-time ministry. Here he ministers to a group of pastors in Viet Nam. (Click to enlarge)In 2004, after 35 years, Paul retired from the business world, and he moved right into full-time ministry. Paul established Lifewalk International in 2003, the mission of which is to deliver teaching about godly stewardship and financial prosperity and to encourage the Body of Christ to produce wealth to establish the Covenant of God on earth. Paul has ministered in 15 countries, and spent extensive time in Kenya establishing a business school. Paul’s work in Kenya has been so successful that the church, with which he works, built a two-story engineered building that will seat 6500 people, a new bible college and several other facilities that bless the community.
Paul's ministry, LifeWalk International, helped build Word of Faith Church in Kiambu, Kenya. (Click to enlarge)In 2011, Paul accepted a position as the Director of Charis Bible College's School of Business in Colorado Springs. “We are blessed with some incredibly talented and committed students and I genuinely love every one that God has sent,” Paul said. He went on to share his vision for the business students, “My vision for the school is a big one. I believe that God has called an army of business people to create wealth to establish his covenant in the earth through giving to ministries like AWM. I see the day that we have many students of the business school operating by God’s principles in the marketplace, producing wealth and returning seed to AWM to continue the incredible work of this ministry. My desire is that Andrew’s teaching LifeWalk also helped Word of Faith build a Bible college next to the church. It can be seen here during the construction phase. The project is now complete. (Click to enlarge)wash over the earth and that multitudes are brought into the Kingdom of God, saved, healed, delivered, restored and prosperous. This vision requires money and producing wealth is what God has called me to do.”
Paul recalled a conversation he had with his dad before he died in 2002: “My dad asked me if I remembered his objection to me quitting my job to start Global. I said, ‘Sure Dad, I remember; you were very disappointed in me at the time.’ He then said he wanted me to know that he was wrong and that what I had accomplished by starting my own company had changed our family forever,” said Paul.


Paul and his wife Patsy (center), and their family—forever changed by the Word of God. (Click to enlarge)Through his son, DeLoyd Milligan learned that God wanted him and his family to be financially free, not just financially secure. Paul once had to make a tough decision to go against what his dad had taught him, and trust God. Today he has committed his life to making sure others learn the same principles he learned. From beginnings rooted in poverty, Paul and his dad lived to experience prosperity beyond their wildest expectation.
Through building businesses, through ministry and through his own personal life, Paul has seen the faithfulness of God’s provision. His testimony and teaching continue to inspire and give hope to a generation that Paul hopes will one day change how the world views financial prosperity and stewardship.

http://news.awmi.net/

Friday, 23 March 2012

Finance Tips For Single Women

By Janet Fowler | Investopedia

The way most people live these days is drastically different than in generations past. People are generally waiting until much later in life to marry and have families. Considering this, many women will be single for at least part of their adult lives. Also considering the current rates of divorce, there is a reasonable likelihood that many women will find themselves single again at some stage after marrying. Those time-honored gender roles tend to suggest that most women are not great at putting their own needs first, though when it comes to personal finances, women must consider their own needs and wants in order to secure their financial future.
Budget First and foremost, build yourself a solid budget and stick to it. This is just good sense for absolutely everyone – single, married or divorced. Examine your monthly expenses, remembering to include everything from housing costs, utilities, groceries, car payments, gasoline, insurance and esthetics. Do the same for your income. Subtract your expenses from your income, and see what you've got leftover. You can divide the remainder up based on what you'd like to save and what you'd like to budget toward discretionary spending. Don't forget to factor in money towards repayment of credit card debt, student loans or any other debts you may have. You'll want to get debts paid off as quickly as you can in order to save yourself those pesky interest costs. You should also examine methods for reducing costs, like eating meals at home or reducing the amount you spend on entertainment expenses.
Avoid Giving in to ImpulseIt's probably true that most women love to shop. It can be hard to avoid giving in to impulse when you find a great deal on a pair of cute shoes or a new outfit. It's also important to avoid emotional spending. Learning to avoid unnecessary expenditures can really help to improve your financial situation – especially when you've got other expenses that are more urgent, or when giving in means you have to borrow money on your credit card. Try to spend only what you've allotted to yourself for discretionary spending, or budget for larger items like a big holiday or a car over longer periods of time. If you're unsure if you're being impulsive or giving in to emotional spending, try waiting a day or two before making up your mind about an item you're considering buying. If you've changed your mind or forgotten all about the item before the time period is up, you've made a wise choice in walking away.
Save for Rainy DaysIt's an unfortunate fact of life, but we can all expect things to go wrong on occasion. Keeping some money stashed away for those rainy days will help you to afford those unexpected expenses when they do come up. Think of vehicle or home repairs, or an unexpected illness that could keep you away from work for a long period of time. No one wants to worry about money in times of distress, so having a rainy day fund will help you to get over the hurdles life throws at you. Even if you're only able to set aside $25 a week, it'll add up over time. Get yourself a high-interest savings account to stash away your cash. You can then transfer your savings into other forms of investments with even higher interest rates once you've got a healthy stockpile. Just remember to set realistic expectations for yourself. Don't save more than you can realistically afford, but don't underestimate the importance of saving either.
Buy a HomePurchasing a home is a big step for anyone, whether you're doing it on your own or as a couple. Purchasing a home is generally a solid investment that will reward you in the future, especially since renting is essentially the same as giving your money away to someone else. As a single woman, you'll need to ask yourself a number of questions before buying. Can you afford this home on a single income? Is the area safe for a single person to live in? Will you need roommates to help pay the mortgage? What will you do if you marry or have a family? Make a list of what you want and understand what you can afford before you contact a realtor and start looking at what's out there. A condominium or town house can be a great option for single people, especially since they're generally smaller and less expensive than stand-alone houses. Keep in mind that you don't need to commit to living in your first home for the rest of your life. As you further establish yourself financially or as your needs change, you can move on to bigger and better. The important part of buying your first home is establishing yourself in the market and starting to build equity.
Consider Your Retirement PlansEven if retirement seems like eons away, you'll want to start thinking about it as early as possible. Financial security isn't only about achieving your short-term goals; you've got to consider your long-term goals as well. Even if you do intend to marry, you'll need to ensure you can take care of yourself in your retirement because statistically women tend to live longer than men. Build your budget so you can set aside some money. You can use monthly deductions or make yearly lump sum contributions to a retirement savings plan.
Don't be Afraid to InvestSo you've managed to budget and save your money. Now you've got a healthy stockpile of cash to get you through those rainy days. What should you do with all that extra cash? Though investing may seem like a scary thing, have faith in yourself and believe that you can learn the ins and outs of the finance world. You can always enlist the help of an investment manager or finance expert to guide you along the way. One of the biggest benefits of investing is the opportunity to earn extra money on your initial investment, referred to as return on investment. It may take a little courage on your part, but the payoff could be huge. Do some research and only take on as much risk as you feel comfortable with.
Invest in YourselfAlways keep in mind that you've got to enjoy life too, so don't completely give up on spoiling yourself once in a while. Go on a holiday, to a day spa or treat yourself to something truly special once in a while. View it as an investment in yourself and your own happiness. They key is making it a special treat, not an everyday event. You'll want to ensure that you budget for these occasional indulgences as well. Remember, it's not worth going into debt over a pair of shoes or a holiday.
Before You Walk Down the AisleThough it might be an exciting time when you're considering taking the plunge and getting married, don't forget that you really need to have a serious talk with your new partner about money before you get married. Though this may be an awkward discussion to have, you need to know what that person earns, what debts they owe and what their financial plans are for the future. When you make those vows, you're also agreeing to a financial partnership with your beloved. You will need to know that their goals and spending habits are compatible with yours and that you're not marrying someone who will drain you financially, destroying all the hard work you've done to create a financially secure life for yourself.
The Bottom LineLong gone are the days of considering single women to be spinsters. Women are becoming more and more comfortable in taking control of their own finances, shaping their financial futures and turning their goals into realities. There's no doubt that making big financial decisions independently can be a bit frightening, but there are also a lot of perks. You can enjoy complete control of your own financial situation, without someone else's financial interests impacting your own. Whether you're young and never married or newly single, it's never too late to grasp the reigns and take control of your financial destiny.


http://ph.she.yahoo.com/finance-tips-single-women-184319399.htm

Thursday, 15 March 2012

Pity the Retirement Hoarder

By Joe MontStaff Writer | TheStreet.com

BOSTON (MainStreet) -- Few days pass without some new study or survey reinforcing a dire message that Americans are not saving enough for a comfortable retirement.
For some, that message may actually be detrimental. While true that many -- perhaps most -- are dangerously behind with their savings timeline, even those with a suitable nest egg are prodded continually into saving more. Some run the risk of saving too much, of letting their lives be dictated by compulsive frugality. Think of them as the financial equivalent of hoarders. They're so dead set on accumulation that they find it psychological torture to spend anything.
Some retirees could never spend all of their money, given their frugality, but still worry about running out of money or not having an inheritance to leave their children.
Ted Bovard, principal and financial consultant for Fort Pitt Capital Group in Pittsburgh, says his firm has high net worth clients who fall into this category. Even though they could never spend all of their money, given their frugality, they still worry about running out of money in retirement or not having an inheritance to leave their children.
As an example, one client, despite having a $9 million nest egg, called to seek advice on whether she could afford to buy a new clothes dryer.
"We have clients who have $6 million to $7 million saved and they ask, 'We were thinking about giving money away to this school, or this charity, or the grandkid -- do you think we can do it?' Well, how much money are you thinking of giving away? 'Probably just the gifting limit for the grandkids, maybe $13,000 times three or four.' Well, I think with $7 million you are OK," Bovard says.
"There is nothing wrong with being careful, but you can overdo it, says Peter D'Arruda, president ofCapital Financial Advisory Group in Cary, N.C. "It's like the skinny squirrel who stores a bunch of nuts in a tree over and over again, but doesn't eat them. He just runs off looking for more nuts. Then termites get in there and when squirrel comes back the tree's not there anymore."
D'Arruda uses that fable-like example to explain that the fear of depleting assets doesn't just lead investors to take on an unhealthy degree of risk; they can also err on the side of perceived safety.
The fear of running out of money isn't always without merit, he says, pointing to the "biggest risk of all" -- the eventual need for long-term care. With these needs in mind, he urges clients to create an income stream and hedge against future expenses with various annuity and life insurance policies that include long-term care riders. What he doesn't advocate is relying on so-called "safe" investments -- including cash, CDs and other bank products -- to provide peace of mind.
"CD accounts are not earning anything," D'Arruda says. "I refer to it as losing money safely. Look at inflation right now. You can go to the grocery store now and see how expensive it is, and there are also rising fuel costs and increasingly expensive health care. You need to be keeping up with inflation if you want to make sure you have money for the future."
Bovard sees several reasons for why some people have a hard time accepting that their savings are, in fact, sufficient. Factors include a lifetime of frugality, over-reacting to market fluctuations and the intangibility of wealth that is in investments, not in physical cash, gold or even stock certificates.
"A lot of time, I think I, as their adviser, am the person who can help them relax," he adds. "For the folks we have had longer-term relationships with, they look to you to tell them what they can do and what they can't do. If we tell them they can do it, they are more comfortable."
A challenge, he says, is getting clients to move past an all-encompassing drive to save and accumulate wealth and to focus as well on enjoying the fruit of their labor.
"People ask, 'How much do I need, do I have enough?' We don't really focus so much on the total number. We see how do you want to live and what it's going to cost," Bovard says. "If it is $500,000 a year, your $2 million isn't going to get you very far. If it is $50,000 a year then yes, you are probably going to be in very good shape."
A persistent voice warning that some are saving too much for retirement is Laurence Kotlikoff, an outspoken economics professor at Boston University.
In a past interview, Kotlikoff, who co-wrote the book Spend 'Til the End -- The Revolutionary Guide to Raising Your Living Standard, Today and When You Retire (Simon & Schuster, 2008) with Scott Burns, put much of the blame on the retirement calculators companies such as Fidelity, TIAA-CREF, Vanguard, Schwab and T. Rowe Price deploy on their Web sites.
"Financial advisers are giving bad advice using bad financial tools that aren't remotely capable of dealing with the question that they are trying to answer," he said, noting that advisers can profit from their inadequate assessments.
"The bottom line is that if you over-recommend products, you sell more," he said. "If you get compensated, either directly or indirectly, based on your sales, there is an incentive to make recommendations that are, on average, too high."
Kotlikoff, who has crafted his own retirement software tool, ESPlanner, estimates that about 20% of households are likely saving too much for retirement, compared with the 40% he believes are saving dangerously too little.
"I think under-saving is probably a bigger problem, but there is still a risk with over-saving," he said. "You could save like crazy and then you can drop dead when you hit 55. It is not only that you may die young, it is also that you can be induced into much riskier securities than you should be investing in because you think that this is the only way you can make your target. The whole focus is on making a target that is ridiculous to begin with."
Bovard says many retirees who have saved and invested appropriately throughout their life follow a similar pattern of financial realization.
They start out very nervous they don't have enough. That persists for the first seven years or so. Then they start to breathe a sigh of relief and get comfortable with the idea that they can enjoy life and spend down some of their assets. Later, they fully grasp that they have more money than they can ever spend and face regrets over what they wish they had done.
Bovard isn't surprised by the psychology at play among those who resist post-retirement spending.
"You spent 40 to 45 years accumulating this pot of money, and you did it by saving and saving and scrimping," he says.
In response, he tries to work with clients, especially during the early years of retirement, to "bump that expense level up a bit" and factor in the cost of various trips and activities they have expressed an interest in but haven't had the time to do until retirement.
"Sometimes part of our job is not just to be your financial adviser, but also a counselor," Bovard says. "It's all about striking a balance. If there are a couple of things you want to get done, lets figure out how to do them and still feel comfortable whether the markets are up or down or back and forth. While you still have the health and energy and desire, let's make these things you want to do happen."
"If you can't actually do that and relax, why retire? Maybe you are just tired of work, and that's fine, but if the idea is to retire because there are things you want to do and enjoy, then you are going to have to learn to relax a little bit," he adds. "It is a very different thought process for people when they've spent years pumping money in and now they turn around and have to take money out. Psychologically it is a huge transformation and if they are a workaholic, this can be a very difficult transition."
The balancing act between preserving financial security and enjoying your money differs from person to person, Bovard says. It is hardest for those he describes as "worrywarts."
"You have to deal with that personality differently, and they may never be comfortable," he says. "You say that they can afford to do something and they reply, 'Oh, I'd better not.' As soon as you go through the first downturn together -- and if you look at them long enough you are going to go through at least one or two or maybe three -- they are like, 'See, I knew it, I've got to pull back, I knew I shouldn't have gone on that trip.' What I have to say to them is that we've got the money set aside and life is going to move on whether the markets are up or down."
Bovard says having a solid financial plan in place helps investors learn to enjoy life in retirement. It also keeps them from taking on excessive risk in the name of returns.
"It's important to have the ability to stick to that plan through the good the bad and the ugly," he says. "It is not just when things are bad that people go off the reservation. When things are great, people believe they are much less risk averse. 'Oh look, everybody is making tons of money and I'm not making as much.' Well, remember that we have a balanced portfolio because when things are down you get really upset. We'll still get to the same place, we are just going to do it with less bumps."
--Written by Joe Mont in Boston.

What Happens When You Can't Pay Your Taxes?

By Amy Fontinelle | Investopedia

When it comes to taxes, you're supposed to pay them gradually throughout the year so that in April you either don't owe very much or are entitled to a refund of overpaid taxes. But sometimes your life situation changes or an unusual one-time event takes place during the year and when you prepare your annual return, you get an ugly surprise - you owe hundreds or thousands of dollars that you not only didn't see coming, but that you simply don't have. While this isn't a good situation to be in, it's not the end of the world - there are a number of ways to resolve it. Here are your options.
Borrow Money to Pay Your TaxesFor a convenience fee of about 2% to 4%, you can charge your tax liability to your credit card. You could also apply for a debt consolidation loan from a bank or credit union.
If you choose one of these options, you'll have made good with the government, but you'll be shifting your debt to an expensive source. Unless you have a credit card with a very low annual percentage rate (APR) or are able to secure a personal loan at a very low interest rate, you might be making your situation worse. For example, if you owed $5,000 in taxes, the convenience fee to charge this amount to your credit card would amount to $100 to $200. If you had to carry that $5,100 balance on your card for a year at, say, 20% APR, that would add another $1,020 to your bill, bringing the total you owed to $6,120. This is a rough, simplified example of how the math would work, but you get the idea.
Request a Payment ExtensionFiling a six-month tax extension using Form 4868 won't help. This extension only gives you more time to file your paperwork; it doesn't give you more time to pay what you owe. Filing your return on time can help minimize the penalty and interest charges the Internal Revenue Service (IRS) will assess on your late payment, however. The IRS's late payment fees are 0.5% to 1% per month up to a maximum of 25%; the late filing penalty is 5% per month up to a maximum of 25%. Simply filing your return on time can save you a substantial amount in penalties.
If you believe you have a legitimate case, you can try filing Form 1127 to request a six-month payment extension. Along with this form, you'll have to submit a statement of all your current assets and liabilities and an itemized statement of all the money you've received and spent in the last three months. The IRS rarely grants payment extensions, and only if you can demonstrate undue hardship. If you just bought a 60" flat-screen TV last month because you had no idea you were going to owe $5,000 in taxes, you're not going to qualify for a hardship extension.
If you think it will take you more than a few months to pay your tax liability, consider applying for an installment agreement. You can apply online at IRS.gov or by mail using Form 9465-FS. An installment agreement can prevent the IRS from taking enforced collection action. You'll still owe penalties and interest, but your monthly payments let the IRS know that you intend to make good on what you owe.
Borrow from YourselfIf you have an emergency fund, this might be a good time to dip into those savings. It's true that another emergency could come up and then you'll have to charge that emergency to a credit card, but if nothing bad happens, you can use your emergency fund as an interest-free loan to yourself to pay off your tax bill and then start replenishing your fund with each paycheck.
If you own a home and you have enough equity, another way to borrow from yourself is with a home equity loan line of credit (HELOC). These loans have relatively low interest rates compared to credit cards and personal loans, and the interest can be tax deductible. The downside is that your house serves as collateral. Defaulting on a home equity loan or HELOC is like defaulting on your mortgage - it can cause you to lose your house. However, borrowing money this way could turn the large lump sum you owe the IRS into a manageable monthly payment to a mortgage lender.
A third option is to borrow from a retirement account like a 401(k) or IRA. However, because retirement accounts have tax advantages, withdrawing money from them can trigger a tax liability if you don't follow protocol. Borrowing against your retirement nest egg can also interfere with your retirement savings plan.
Pay as Much as You Can, as Soon as You CanUnfortunately, the IRS is going to charge you interest and penalties on the amount you pay late. Similar to charging what you owe to a credit card, these additional expenses are going to make it harder to pay what you owe. However, if there weren't any penalties, everyone would pay late.
The more you're able to pay on time, the smaller the balance on which you'll be assessed interest and penalties. The IRS will eventually send you a bill called Notice of Tax Due and Demand for Payment, but you don't have to wait to get the bill to make additional payments. Pay what you can when you file your return, then send in whatever additional payment you can afford each payday using Form 1040-V.
The Bottom LineWhatever you do, don't ignore the problem. The government could find you guilty of tax evasion and has the authority to forcibly seize your assets if you don't try to make good on your income tax liability. The IRS can freeze your bank accounts, garnish your wages, seize physical assets, like your car, and place a lien on any assets you own, like your house. Go ahead and file your return and pay what you can, then work with the IRS, perhaps with the assistance of a tax professional, to formulate a plan for paying the balance of your tax bill over time.

8 Potential Money Pitfalls for Retirees


Money Traps Facing the Older Set

By Kerri Fivecoat-Campbell | MainStreet  
For many Americans, retiring means entering a new realm of financial realities, from learning to live on a pension or Social Security checks to downsizing to a smaller home. Unfortunately, while retirement can be a great time to enjoy the later years of life, there are several pitfalls to watch out for to guarantee your money lasts.

To help you on your journey through retirement, we examine eight potential financial traps to be aware of. While there are benefits to some of the financial products and offers we discuss, retirees must learn how to use them properly.

Here's what you should know.

Credit Cards

Retirees who do decide to carry a credit card should pay them in full every month, says Peter Macaluso, vice president of FMI Retirement Services.

“I always like it when someone loans me money at no charge and that is what happens when you pay off your credit card at the end of the month,” he says.

Macaluso adds that if you don’t pay the credit cards off every month, you risk getting into a high-interest form of debt, which might make it difficult to meet the payments you will owe. He also advises that if you’re already in credit card debt, consider taking out a personal loan with a lower percentage rate and getting out of debt as fast as possible.

Long-Term Care Insurance

Long-term care insurance can actually be a big benefit to retirees with assets.

“Many retirees have adequate or more than adequate coverage for automobile accidents and house fires,” says Certified Financial Planner Joel J. Ohman. “Yet the likelihood of getting in a car wreck is around one in 240, having a fire in the house is one in 1,200, and needing long-term care is one in two.”

Macaluso also says that retirees can consider reducing the amount of assets they have and defering payments for long-term care until they need them. “Long-term care insurance can be a great option, but it is only in very specific situations. For people with very little assets it will be a very hit-or-miss type of insurance,” he says.

[Related: 10 Bad Money Habits and How to Break Them]

Reverse Mortgages

Reverse mortgages can be a great product for many retirees who need or want a lump sum payout or additional monthly income based on the equity in their home. These loans allow retirees to use the equity in their home and payment is not due until they die. The industry is highly regulated and counseling is a requirement for legitimate reverse mortgages before a loan can be granted.

AARP’s website lists some of the concerns of taking on a reverse mortgage, including the fees involved and the possibility of taking the mortgage too early. The Department of Housing and Urban Development also has resources to ensure retirees are fully informed and going with a legitimate source when investigating a reverse mortgage.

Annuities

While many of these are legitimate legal products that allow some benefits in the form of tax deferment and death benefits, the financial experts we spoke to don’t like them.

“They often sound very good, but come chock-full of hidden fees,” says Elle Kaplan, CEO and founding partner Lexion Capital Management LLC. “Retirees are best served by a fee-only investment adviser, who is only in one business - investment advice.”

Life Insurance

Macaluso says a life insurance policy can be good, but retirees must be aware the cost versus the cash value.

Macaluso gives an example of a 71-year-old employee contemplating retirement any day. The life insurance policy cost more than $8,000 per year and the death benefit was only $50,000. The Cash Surrender Value was less than the annual premium payment.

“This person was essentially paying into a product that was guaranteeing him a severely negative return,” Macaluso says. “Not everyone at this business was in the same position, but this was an example where this was an extremely bad investment for this person.”

Phone Scams

“People will contact gullible people or seniors in order to have them send money or give personal information,” Macaluso says. “If they contact you, never give personal information. If you feel it might be legitimate, contact the institution they say they are calling you from.”

Catherine Gordon, a chartered financial analyst who helps oversee Vanguard's Institutional Asset Management group, advises that retirees take advantage of the tools available to help them evaluate the multitude of opportunities that may come their way. Three very useful sources are the Risk Meter and Scam Meter tools sponsored by FINRA, the largest independent securities regulator in the United States, and the Securities and Exchange Commission’s Ask Questions brochure.


[Related: What Retirees Wish They'd Done Differently]

Reverse Pension Plans

If you hear the words "reverse pension plan," a red flag should appear in your mind, Macaluso says.

“One of the most egregious forms of deceit is reverse pension plans,” Macaluso explains. “These are just flat-out scams. Anything where you pay $50 to get $50,000 is a scam. We were recently asked by a few individuals about these and we told them to run away as quickly as you can.”

Shady Salespeople

If someone approaches you to sell you the “next best thing” or a “sure thing,” be skeptical of the salesperson's intentions, say our experts.

“You can avoid a world of hurt by first asking, ‘How are you paid?'” Kaplan says. “If you are not given a clear explanation, it is a big red flag.”