A 401K is a tax-qualified retirement-savings-based contribution plan. The contribution made by an employee is matched by the employer in full or partial capacity for the earnings to accrue on a tax-deferred basis. The earlier you start to contribute on an annual basis, the better will be your savings for retirement. 401K is one of the most popular employer-sponsored retirement savings options. Here are some essential facts about the plan you must know to benefit in the long term. The current contribution limit for a 401K plan is set at $18500 depending on the type of retirement plan taken, but not everyone can meet this criterion. For a SIMPLE 401K plan, the contribution limit is set at $12,500 for 2018. Factors like employer contribution and taxes should be considered before you can come up with a decent percentage to be set aside for this retirement plan. Also, contributions can be made to your 401K account till you plan to stay employed and the employer matches the percentage to maximize the accrued income. There is an early withdrawal penalty of 10% for 401K accounts. To avoid this penalty, the earliest you can access your 401K for retirement distribution is when you turn 59 and a half during employment.

The truth is that most of us decide where we want to spend our retired life a decade or two before we intend to retire. And why not? All our life we get involved in a rat race to achieve fame, money, to climb the corporate ladder, be the best parents, and after years of accomplishing all these things, all you want when you retire is to live in a quaint serene city. A city where you do not have to worry about the chaos, where you can enjoy low taxes and a decent standard of living. You would agree that choosing a place to retire can be quite overwhelming. With so many options to choose from, it is natural to get frustrated when you are not able to narrow down your options. But don’t worry. Read this article to know about the top 5 U.S cities that you can consider living after your retirement. Venice, Florida The elegant Italian Renaissance-inspired architectures, the soothing canals and rivers and the touristy vibe of this offshore city, make it one of the best places to live in after you retire. The city has a laid-back traffic scene, and low cost of living, making it a favorite among the older retirees.

One realizes the significance of a budget after retirement. This is mostly because living on a fixed income can be distressing. Moreover, the need for finances, especially in terms of medical expenses also magnifies. Nevertheless, devising a budget for your retirement years is a good idea as it keeps you from overspending and prepares you for any uncertainties. If you have recently retired or are planning to, then here are some budgeting tips that can help you lead your life self-sufficiently- Make a list of fixed expenses Start designing your budget by recording your annual, quarterly, and monthly expenses. Categorize them into three groups- Essentials that encompass your groceries, utilities, clothing, healthcare, and transportation costs. Additional monthly expenditures like cable TV, newspaper, or magazine subscriptions, gym or meditation memberships and cell phone or internet packages. Non-monthly expenses would include payments for insurance premiums, property taxes or home warranties. To have a definite budget, make a spreadsheet that lucidly mentions all the costs for every month. For example, if you spend $200 on an average on groceries, it will be recorded in the sheet across all the months. On the other hand, during the holiday season, you might have to spend $400 more in the month of December for gifts and other items.

A living will is a legal document that is designed to communicate a person’s desires pertaining to medical treatment if in the future they are no longer capable of choosing for themselves. For example, if a person slips into a state of coma due to an accident or a terminal illness then, a living will offers them a chance to convey their wishes to family members or doctors. Drafting such a document has its own set of pros and cons. To know more, read further. Pros of a living will Relieving family members The primary advantage of a living will is that during challenging situations, you will ease some stress that family members have to undergo. Deciding on behalf of someone’s life can be extremely taxing, as your family might keep wondering if they are making the right choice. Moreover, members of the family might have conflicting views about the end-of-life-care, which can be put to rest with the help of a living will. Sticking to your personal beliefs A living will allows you to stand by your personal beliefs. For instance, if a person is of the opinion that keeping someone alive with the assistance of life support is not right, then they can clearly state so in their living will.

Different people react differently to retirement; some enjoy the bliss of having spare time, whereas others struggle to attribute a meaning to their life post-retirement. If you are planning to retire in the near future and are contemplating moving out of your old neighborhood to someplace cozy and convenient, you can take a look at cohousing communities in your vicinity. Cohousing is an intentional community of private homes which are clustered around a shared space. Cohousing is a growing movement where strangers decide to create a community of their own that is close-knit yet gives you the privacy that every individual desires. Each of the houses in this community are equipped with traditional amenities which include a private kitchen as well. In cohousing, even the outdoor spaces are shared; neighbors can share parking spaces, walkways, gardens, and open spaces. Such a close-knit community might be the exact thing you need after retirement; solitude and friendly neighbors that help you in times of need. So, if cohousing is a viable option for you, here are things you need to know about the same before you search the neighborhood for the right cohousing community. Cohousing is slowly gaining popularity with families and senior citizens.