She ended up taking a break from her nascent career to work at retailer JC Penney instead. Ultimately, she secured a license before moving to Missouri. That’s when she decided to walk into the offices of GE Capital to ask for a job, securing a mortgage consultant slot in 1997. “I used to look at … [Read more…]
Ohio-based lender Union Home Mortgage denied sex discrimination claims made by a former employee whose employment was terminated while she was pregnant. The lender acknowledged employment termination but denied any unlawful conduct.
Elizabeth Martin, a former loan officer assistant of UHM, filed suit against the lender alleging sex and/or pregnancy under the Missouri Human Rights Act and Title VII of the Civil Rights Act in the 16th judicial circuit court of Jackson County, Missouri early this year.
Martin claimed that she told her supervisor Robert Hastings, sales manager Josh Carr, and the lender’s human resources department about her pregnancy as early as January 2022 and no later than June 2022.
Martin was a loan officer assistant at UHM from March 1, 2021 until “the unlawful termination” on August 11, 2022, according to the suit. The former loan officer assistant completed her documentation related to her expected absence in July 2022. Her anticipated maternity leave was to begin August 10, 2022.
On August 5, 2022, Martin said she had a conversation with Carr in which she brought up Hastings’ potential departure and her concern about the handling of the loans assigned while she was out on maternity leave.
Carr “assured her that regardless of whether Mr. Hastings remained with UHM, he would be able to place her in a position with UHM at one of the offices in Lee’s Summit, Missouri,” the suit said.
Hastings, a branch manager and loan officer, on Aug. 8 told Martin he was leaving UHM and taking another loan officer assistant with him.
On August 11, Martin informed a HR generalist of her physician’s instructions of bed rest due to her high-risk pregnancy. Martin sent a copy of the doctor’s instructions to Carr by email the same morning, according to the suit.
That day, however, Martin received a call from HR that there are “no open positions within the company” and that her benefits would be terminated at the end of the month.
In its most recent response to Martin’s complaint, UHM acknowledged the former employee’s employment termination but denied that the people responsible for terminating her employment were aware of her pregnancy.
UHM had “legitimate, nondiscriminatory reasons” for its actions regarding Martin.
“Some of UHM’s employees were aware of her pregnancy. UHM denies that the decision makers regarding her termination were aware of her pregnancy, denies that it engaged in any unlawful conduct,” the lender said on August 17.
UHM and attorneys representing the lender and Martin didn’t respond to requests for comment.
Union Home Mortgage was sued by Caliber Home Loans last year for trying to “cripple” its Southeast operation.
Caliber alleged UHM raided more than 50 employees that produced $400 million in mortgages in 2021.
UHM originated $1.75 billion in origination volume in the first six months of 2023, according to data from mortgage software firm Modex. The company had 908 active loan officers as of August, per Modex’s data.
Source: housingwire.com
Preparing for a baby doesn’t have to cost a lot of money. Magazines and TV ads will tell you that you need to spend a fortune in preparation for your little darling’s arrival, but it’s simply not true. When my husband and I were expecting our first child, my husband was working at a small radio station and had a pretty small salary. I was a teaching assistant at our local special education preschool, and my paycheck was also pretty small. Here are some of the things I’ve learned about preparing for a baby when you don’t have a lot of money.
Borrow things. Women love to share maternity and baby items. Don’t buy a lot of things before you publicly announce that you’re expecting, because once you make the big announcement, you’re sure to get offers of gently used maternity clothes, baby clothes, and baby equipment….as well as lots of baby advice. I think it’s a rite of passage for women to pass down their maternity clothes to other pregnant women. Take advantage of it.
Buy used. There are many stores that consign strictly baby and children’s items. Consignment stores are great for stocking up on baby clothes and baby equipment. Since the owners are usually very strict about what they will accept for sale, the items you’ll find in a consignment store are generally in excellent condition.
Garage sales are another great place to pick up baby clothes. You can often find infant clothes in great condition for as little as $1 a piece.
Wait for the gifts. Don’t go out and spend a lot of money on the baby as soon as you find out you’re pregnant. More than likely, you’ll have at least one baby shower, where you’ll receive tons of baby clothes and all the little items you’ll need, like baby nail clippers, towels, a baby bathtub, and much, much more.
It’s also a well known fact that women love shopping for babies. So after your baby is born, you will probably receive even more gifts of baby clothes. So don’t feel like you need to buy a whole wardrobe for baby right away. I recommend stocking up on some comfortable baby pajamas for the weeks following your baby’s birth. When your baby is a month or so old, take stock of what you still need and shop from there.
You don’t need everything. When you visit the baby section in a department store, you might think you need to spend thousands of dollars to buy your baby every last bit of equipment. You don’t. You will need a place for the baby to sleep, a car-seat, some clothes, blankets for swaddling, diapers, and alcohol swabs to care for your baby’s belly button.
Nice additions are a bouncy seat or swing, a sling, a stroller, a diaper bag, some soft baby towels and washcloths, some bibs for dealing with drooling, and burp cloths for dealing with spitting up. A changing table, bottle warmer, wipe warmer, and lots of toys really aren’t necessary at all. Neither is an impeccably decorated nursery. Your baby will quickly outgrow typical nursery decor.
Consider Breastfeeding. This is definitely the least expensive and most convenient way to feed a baby. I was bottle fed as a baby, and my mom bottle fed all of my younger brothers, so I always figured that’s what I’d do too…until I saw the price of formula. After nursing my babies, there’s no way I’d bottle feed a baby. I’m not morally against it or anything, but breastfeeding is terribly convenient. And again…it’s free.
Think about cloth diapering. Cloth diapering is coming back en vogue, and it isn’t what it used to be. Now you can buy all-in-one diapers that are a diaper and cover in one easy-to-change package. Today’s cloth diapers use snaps or velcro in place of pins, so there’s no need to worry about poking baby with a pin. The prints are really cute, too. I used cloth diapers on my second child for a while, and it really wasn’t much extra work. It’s better for the environment, too. Though the initial expense of cloth diapers is greater than disposables, you’ll recoup the cost over time.
If you’re considering cloth diapering, The Diaper Pin is a great place to read diaper reviews and find places to buy cloth diapers. As with anything, don’t go overboard buying diapers at first. Different diapers work well for different babies, and you don’t want to be stuck with a huge stash of diapers that don’t work.
Use a midwife. These days you aren’t limited to having an obstetrician deliver your baby. Seeing a midwife often means a lower bill for your pregnancy and delivery. Most midwives are very sensitive to helping parents achieve the kind of birth experience that they want to have, rather than having a delivery full of medical interventions. If this appeals to you, a midwife might be a good option. Just make sure that your midwife is affiliated with an obstetrician for backup, in case something comes up that needs a physician’s attention.
Skip the circumcision. If you aren’t going to circumcise for religious reasons, consider skipping it all together. The AAP now considers circumcision an elective procedure, so many insurance companies aren’t covering it anymore.
Prepare in advance for maternity leave. As soon as you find out you’re expecting a baby, start saving money for maternity leave. Practice living on one income well in advance of the time your baby is born. This is also good advice if you’re not going to be returning to work at all. You’re more likely to succeed as a one income family if you have practice living on one income before you actually lose your income. It’s hard to learn how to live frugally when you’re not getting enough sleep.
Though it’s hard to be completely prepared when you’re expecting a baby, these are some good ways to minimize the financial impact of your baby’s birth. Do you have other suggestions? I’d love to hear your comments!
Source: getrichslowly.org
The U.S. Department of Housing and Urban Development plans to launch multiple investigations to determine if certain mortgage lenders are denying loans to expectant mothers, new parents, and those on temporary disability.
The move came after a New York Times article exposed the practice, which may violate the Fair Housing Act.
HUD enforces the Fair Housing Act, which prohibits discrimination in lending based on sex, familial status, and disability.
Whether expectant or not, a borrower has the right to a home loan so long as they can demonstrate the ability to afford it, using measures like debt-to-income ratios and the like.
The FHA requires its approved lenders to review a borrower’s income to determine if they can make mortgage payments for the first three years of the loan, though FHA-insured lenders cannot inquire about future maternity leave.
If a borrower happens to be on maternity leave or short-term disability at the time of loan closing, lenders must document the borrower’s intent to return to work and that they qualify for the loan, taking into account any reduction in income due to their leave.
HUD is also reviewing Fannie Mae and Freddie Mac’s underwriting guidelines to determine if they meet Fair Housing Act requirements.
“Denying a mortgage to people just because they’re having a baby is flat wrong,” said Vice President Biden, Chair of the White House Task Force on Middle Class Families, in the release.
“Mothers on maternity leave have jobs, they have income, and they shouldn’t have to lose their deal to close on a house because they had a baby. I applaud HUD for taking action on this practice that could potentially affect untold numbers of families.”
(photo: lindsay.dee.bunny)
Source: thetruthaboutmortgage.com
People are always scratching their heads about where their money goes. I get letters and emails every week bemoaning the fact that although they seem to make a good income, some folks just can’t get to the end of the month before they get to the end of the money. Of the hundreds of people I’ve worked with on Til Debt Do Us Part, only one person actually knew what she was spending. Astounding.
So, do you know what you’re spending every month? If you don’t know where your money is going, how can you ever hope to know what you may be over-spending on?
Unconscious spending is at the crux of the problem for most people who see their circumstances change even slightly:
If you want to be able to cope with life’s little surprises you have to first know exactly where your money is going. Sure, you may have a big emergency fund, but you may need it to last a long time, so that’s no excuse for being complacent.
Giving up the delusion of “there will always be more money” is the fist step I make people take in my book Debt-Free Forever. Before I lead readers through the process of making a budget, I insist that they do a spending analysis. I’ve had more than a few complaints about how much work it is, how hard it is, how boring it is. Kwitcherbitchin! It’s the much over-looked first step. And the knowledge you’ll gain about how you spend your money is worth every minute of the work you’ll have to do.
Don’t even know where to start? Grab your last month’s bank statement(s), credit card statement(s), and line of credit statement(s). Now, break every transaction into one of the following categories:
In the best of all worlds, you’d do this for six months’ worth of your paperwork. Why? Well, a half-year is just about enough time to catch all the things that only pop up periodically. Less than six months will give you some insight, but not clearest picture.
Now add it all up. Are you surprised at the places your money has been going? Which categories brought the biggest surprises? For the couples I work with, it’s the small purchases made regularly, which add up to big money, that bring the wide eyes and gasps. They never imagined that their $10-a-day habit actually added up to so much money.
Once you know where your money’s going, you’re in a much better position to decide how you want to spend it. While it’s all very well and good to say you only plan to spend $400 a month to feed your family of 6, if you’ve been spending two or three times that, your $400 budgeted amount may be nothing more than wishful thinking. When you end up going over, you’ll blame the budget with a song like this: “See, budgets don’t work.”
It wasn’t the budget that didn’t work — it was you. Yup, your unwillingness to do the work to see where the money actually goes meant you were just grabbing numbers out of the air when you came up with that budget, instead of working from a place of knowledge and purpose.
If you’re determined to live a financially stress-free life, the first question you must answer is, “Where’s the money, honey?” Do that, and you’re well on your way to becoming conscious about your money and how you’re using it.
Source: getrichslowly.org
Inside: Learn how much your 80k salary is hourly. Plus find tips to make more money and live the lifestyle you want.
Retirement can be a scary word to those who are not wealthy or afraid of having too much time on their hands.
People in the workforce often don’t know what they will do when their retirement comes around, but it doesn’t have to be that way after all.
For most retirees, there are many reasons they want to work after retirement. And that is 100% okay!
Low stress jobs after retirement make for great part-time careers while still providing enough flexibility to enjoy your personal life. Plus a little extra money is always helpful!
While there is no one “right” answer on which job for you, we compiled a list of 30 great options to consider. All of these jobs offer relatively low stress levels and plenty of opportunities for relaxation and enjoyment.
But before you jump on the first one that comes along, you want to consider which will work best and help ease your transition into the world of retirement.
When you retire, you want to find a job that is low stress and enjoyable. That’s why finding a good retirement job is so important!
After years of hard work, retirement is a time to relax and enjoy life.
However, for some retirees, working part-time or as a side job can provide additional earnings and a sense of purpose. The following jobs are perfect for seniors over 55, or those post-retirement. They have lower stress levels than the average job and offer many opportunities for growth.
Many retirees below starting a second career after retirement would be difficult and are looking for a job that has fewer strings attached. This may be due to the fact that many retirees feel they have reached the pinnacle of their careers and want more time freedom.
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Fortunately, there are many available jobs with increasing demand and most even have lower stress levels than average.
Retirement is a good time to consider additional earnings. This can provide a stream of money for people who want to enjoy life longer and need an additional income. In addition, working can help retirees stay mentally and physically healthy.
The list is composed of jobs that are perfect for seniors over 55, or even post-retirement. They have lower stress levels than the average job and offer many opportunities for growth.
Some retirees prefer to work part time or as a side job; others want to find a full-time position that will keep them busy and engaged in their community. Whatever your preference, know that there are plenty of great options out there!
Retiring means starting a new life, so it is important to consider this change as the beginning of a new life and not the end of an old one.
So go ahead and take the plunge into retirement! It’s a new beginning full of endless possibilities.
There are plenty of good jobs for retirees!
There are many fun retirement jobs that pay a small fortune! And what your personality prefers!
Some people choose to continue working in the same field, but in a more relaxed or part-time capacity. Other people choose to use their retirement to try something new and exciting, such as starting their own business, traveling, or taking up a new hobby.
Now that you’re retired, you may be looking for ways to make some extra money. Luckily, there are plenty of options to make money in retirement available to you!
You could start a business, become a consultant, or tutor students. In addition, you could also look into working from home opportunities or start a blog.
Maybe you want one of the best part time jobs in retirement.
Whatever you choose, make sure you do your research and find something you enjoy so you don’t get bored!
The best fun jobs after retirement include working at a theme park, house sitting permanently on a beach or something crazy you never dreamed yourself to do!
One great way to make some money is by selling your skills and experience. For example, interior decorating is a low-stress field that often requires past experience. Alternatively, you could become a real estate agent. Both of these opportunities allow you to use the skills and knowledge you’ve acquired over the years.
Another great option for retirees is to take advantage of the growing gig economy. There are a host of jobs available through online platforms like Uber or Lyft that don’t require a lot of physical activity or travel time. Plus, they typically offer higher pay rates than traditional employment opportunities.
If you’re looking for something a little more relaxing, consider joining one of the many survey sites out there. These sites reward you with a small amount of money for each survey you complete. It may not be much, but it can add up over time!
Finally, if you’re looking for an easy way to make some money, consider something easy like greeting people. This is a great option because it’s so easy and doesn’t require any special skills or knowledge.
There is no such job that is stress free and high paying. All jobs have their own unique stressors and rewards. It is important to find a job that is rewarding to you and that you find manageable levels of stress.
There are many jobs that are considered “stress free” after retirement.
For example, many seniors are now looking into jobs such as being a consultant or working in customer service. These positions offer a more relaxed work schedule and usually don’t require extensive training.
In addition, the amount of money one earns from a job is directly related to how much work one put into it. If you’re willing to put in the extra effort, you can make significantly more money than those who don’t.
Many seniors are also looking for jobs that don’t involve stress or concern. Proofreading is one such position that meets these qualifications. The job requires native-level English proficiency and an excellent understanding of grammar to succeed. In order to be successful in this field, you have to proofread documents that contain no grammatical errors, punctuation mistakes, or syntactic flubs.
You need to find a job that feeds your soul and doesn’t seem like work.
Plus it is fun to tell others what do you do for a living.
Some people want to use their retirement as a vehicle to start their side hustle and be more relaxed than they were during work hours. This is a great way to spend your retirement! Most cool retirement jobs require little-to-no experience, but some do.
At the end of the day, you must decide if you want to work for yourself and start your own company with a higher earning potential. Or work for someone else with less strings attached and lower pay.
In many cases, you might be stuck working because you didn’t save for retirement, so here are a few jobs that are perfect for seniors over 55 years old, or even after retirement:
Freelance writing can be a good source of income when one has the skills and experience to do so. The best part? You get to set your own hours and take on as much or as little work as you want!
This may not sound like a low-stress job at first, but it’s actually an excellent low-stress job! Being your own boss offers incredible benefits. Best of all, you can do it in a completely stress-free environment by deciding in advance exactly how many hours you want to work.
In fact, my friend over at More Time to Travel does freelance writing for Forbes.
Freelance writing is a great way to make money from home. Be sure to have a strong portfolio and excellent writing skills to land quality freelance writing jobs. Here is a great freelance writing course.
This is perfect for someone who loves people and to discuss their worldly knowledge.
A tour guide is someone who accompanies tourists and provides information about the areas they are visiting. They are usually seniors because no special certifications or degrees are required. However, it can be a fun job for anyone who loves meeting people and has a lot of knowledge about their area. Some tour guide jobs offer tips and the opportunity to travel.
A good tour guide will have a deep knowledge of the areas they are touring and will be able to answer any questions the tourists may have. Plus cash tips are always a perk!
You can house sit for someone you know, or use a site like Mind My House to find paying gigs. Rates vary depending on the city, but typically you can expect to earn $25-50/day as a house sitter.
It allows you to live in new places without having to commit to long-term leases, and it gives you an opportunity to meet new people and explore new neighborhoods. Plus, it’s a great way to make some extra money on the side as well as lowering your monthly expenses!
If this is something you are seriously considering, then check out this book to learn how to housesit from an expert.
Librarians are responsible for organizing and managing library collections, helping patrons find information and materials, and providing instruction on how to use library resources. They typically work regular hours in a library setting, and their work is relatively active.
They also need excellent research skills and the ability to stay up-to-date on new technologies.
However, job prospects are good to work in this quiet environment.
Jobs in customer service usually don’t require a lot of experience or special training, so they can be a great way to ease into retirement. And since most customer service positions are in the service industry, you’ll likely get to meet new people and help them solve problems every day.
They may work in call centers, retail stores, banks, or insurance companies. In some cases, they may also work remotely from their homes. Customer service reps typically need strong communication and problem-solving skills, as well as the ability to stay calm under pressure.
Many people don’t have time for their crafts like they wanted when working full-time and raising kids. So, retirement is a perfect time to become an artisans who make and sell their own products.
You can set your own hours, work from home and sell whatever you like. There are many online marketplaces that cater to craft sellers, so you can find a platform that fits your style and interests. In addition, you can attend craft fairs and other events to sell their work in person.
Make sure to price your items competitively and take the time to create an attractive product listing. Plus ship quickly and provide excellent customer service to keep buyers coming back for more!
It only requires a few hours of work per day, and the pay is decent around $15 an hour.
The job does not require any special skills or training, so it is an ideal way to spend your golden years. Plus you can keep youthful by staying around all of the school-aged children.
This is a form of expression for most retirees or those thinking about retiring.
It can be a low stress job after retirement, as you can do it from the comfort of your own home and set your own schedule. You don’t need any special qualifications or training to start blogging – all you need is a computer, an internet connection, and something to write about.
Blogging is a great way to create fresh, new content on a regular basis for your website. In fact, my friend over at Tuppennys Fireplace uses blogging to drive extra money to their retirement budget each month.
You can sell advertising space on your blog, use affiliate marketing to promote products and services, or even launch your own product or service. The sky’s the limit when it comes to making money from blogging – so if you have something interesting to say, go for it!
Services can range from in-home help to full-time nursing care, and each has its own benefits and drawbacks.
While this may seem odd as a low stress job in retirement, it is a good reminder that you are still youthful in others’ eyes.
These may be simple jobs such as picking up groceries, light cleaning, cooking meals, or companionship during the day. Given the cost of nursing homes and certified nursing assistance, this is an affordable option for families who want extra eyes on their loved ones.
Okay, this is the one I want!
If you are reading this and need a caretaker, I am happy to be the right person for your estate.
A lot of caretaker jobs are in private areas, such as private islands, ski resorts, large estates, and other remote or private areas. This is often because employers need someone they can trust to be on-site full time and take care of things.1) Private Island Caretaker
Caretaker jobs are a great way for retirees to stay engaged and active in their golden years. They can provide a sense of purpose and routine, as well as an opportunity to explore new places and meet new people.
One low-stress job that retirees can consider is becoming an usher at their local theater or sporting area. This job does not require much training and typically pays minimum wage, but it can be a great way to meet people and see new shows and watch sports.
A docent is someone who has expert knowledge about a certain subject and can teach people about it through guided tours and lectures. They are often found in museums, art galleries, and other places where people can learn about the arts.
For many retirees, these are the perfect jobs to get paid for enjoying their hobbies and events they didn’t have time to see when working full-time.
Jobs at Disney parks can be both fun and challenging, with plenty of opportunities to make new friends and help guests have a great time. You’ll need to be able to work hard and stay cheerful under pressure, but the rewards are many.
If you’re interested in working at one of the happiest places on earth, visit the Walt Disney Company website to learn more about current openings and how to apply.
Perfect for the retiree to stay youthful!
When it comes to investments, there are many options to choose from that can fit any personality type.
Crowdfunding was created to help more people invest in various businesses by pooling resources together. This makes it more affordable and less risky for everyone involved.
For many retirees, this is a great way to impact start-up businesses and maybe even have a great ROI on their money.
Tutoring can help students learn in a one-on-one environment, and help them to focus on the material. Tutoring can also help build a student’s confidence, and help them to ask questions they may be too embarrassed to ask in a classroom setting.
It’s a great way to help students who are struggling and give them the support they need to succeed. You also get the satisfaction of knowing that you’re helping young people achieve their goals. Tutoring can be done in person or online, so it’s a flexible job that you can fit around your schedule.
In today’s society, there are plenty of opportunities to help students achieve faster with tutoring. Most tutors are paid at least $30 an hour.
There are many low stress jobs that can be found online and Virtual Assistants are one of those jobs.
A virtual assistant is a professional who provides administrative, technical, or creative assistance to clients from a remote location. Often, virtual assistants work for multiple clients simultaneously, providing a wide range of services including social media management, email management, bookkeeping, and more.
They provide a service to their client through the internet and This is a great way for someone with retirement to start making money fast because most VAs make between $35 and $50 an hour.
Take free training for becoming a virtual assistant!
A personal shopper may work in a store, helping customers find what they need, or they may work remotely for a customer who gives them a list of items to purchase. Either way, personal shoppers usually charge by the hour.
It also pays well, especially if you work for a high-end retailer. And since you’re working with customers one-on-one, this is a great job for someone who enjoys helping others. Perfect for a retiree to get out and about.
They may work with individuals or groups, in both business and personal settings. Personal organizers usually have excellent time management skills, as well as a thorough understanding of the principles of organization.
This type of position is great to keep you moving as well as help others.
They may feed, groom, and exercise the animals, as well as administer medication and vaccinations. They also clean cages and kennels, and may handle adoptions. The work can be physically demanding, but it is also very rewarding to help homeless animals find new homes.
For someone who loves animals, this is a perfect opportunity to make money and help neglected animals.
The work is relatively easy, and there are usually no major deadlines to worry about. Plus, bookstores are typically quiet and calming environments, which can be a nice break from the hustle and bustle of everyday life.
If you’re looking for a relaxed job after retirement, this could be it!
Some people take up photography as a hobby, some as an art form, and some as a profession. The beauty of photography is that it can be whatever you want it to be. There are so many different types of photography, based on your taste and choice you can choose which area to focus on first.
In addition, photography is a great low stress job after retirement!
It can be done freelance to supplement your income or on a full-time basis. There are many opportunities for photographers, and the work is generally enjoyable.
After retirement, there are many low stress jobs that a person can take on. One such option is becoming a life coach.
This job involves helping people work through their problems and achieve their goals.
By becoming a mentor for the next generation, you are able to have a lasting impact and legacy. This allows you to share your wisdom and knowledge while also helping someone else in their career path.
As a life coach, it’s important to be a good listener and have strong communication skills. Additionally, new graduates might be able to offer you fresh perspectives on life that you may not have considered before. It’s easy to become a mentor to coworkers or people in your field; all it takes is some time and effort.
Consulting is a broad term used to describe an area of work. It encompasses a wide range of activities and can be done by anyone with the appropriate skills and experience.
Many retirees choose to focus on the areas they enjoyed at work and avoid stressful parts, becoming consultants in those fields.
Often, retirees are a great resource for companies looking for short-term or project-based work. If you let your network know that you are available for consulting opportunities, they may be more likely to reach out to you when they have a need. Additionally, the average consultant salary is between $50 and $150 per hour, depending on experience level.
Greeters welcome customers, help them find what they need, and provide general information about the store. They may also monitor security cameras and alarms in the store. The position requires little training, and most Walmart greeters are given on-the-job training.
However, greeters must be able to handle stress well, as they are often the first point of contact for customers who are angry or upset. The position also requires being able to work weekends and holidays.
Dog walking is a great job for people who love dogs and want to make a difference in the lives of animals. It is also perfect for retirees who want to stay busy and have flexible hours. The work can be enjoyable and rewarding, and it is a low-stress profession.
Dog walkers are typically paid by how many dogs they are watching at any given time, rather than by the hour. There are specific websites where you can find work as a dog walker like Rover and the average pay is $14 an hour.
A pet sitter is a professional who is hired to take care of pets while their owners are away. Pet sitters typically visit the home of the pet owner to feed, water, and exercise the pet. They may also provide additional services such as grooming and medication administration.
For example, many retirees enjoy pet sitting because it allows them to form close relationships with animals while also providing a service to their community.
Find plenty of pet sitting gigs on Rover.
After retirement, many people are looking for a low stress job that will allow them to travel, get outside, and see new places. Campground jobs are perfect for this because you can work during the day and explore at night.
Camp hosts are people who work at a campground to provide information and assistance to guests.
Campsites allow for some flexibility in terms of location – you may be able to choose the state or national park you’d like to work in, as well as the dates of your stay. Additionally, many camp hosts have a good deal of control over their schedules, which can be a perk.
They usually work for minimum wage, but can often receive tips from guests.
Many retirees take on part-time work as adjunct professors. The position offers a high level of flexibility, good pay, and opportunities for professional development. In addition, adjunct professors often have the opportunity to work with students from diverse backgrounds and help them grow academically.
This can be a great way to share your knowledge and expertise with the next generation of students. Contact your local college and see if they have any openings. Adjunct professors typically earn around $3,000 per class taught.
Becoming an author can be a great way to enjoy your retirement years while still earning some extra money on the side. The job doesn’t involve a lot of pressure, and you get to set your own deadlines.
There are a few different ways to get your book published. One option is to work with an agent. However, this may not always be possible, especially if you are writing a non-fiction book. Another option is to self-publish your book. This can be a great way to get your book out there without having to go through a publishing house.
You will finally have time to tell your story from your perspective.
Focus groups are gatherings of people who are brought together to discuss a certain topic. The participants can range from 6 to 12 people, and they are typically held in local hotels or conference centers. During the focus group, the participants will discuss upcoming products, services, trends, and issues.
Focus group participants are typically reimbursed for their time and participation in the discussion. This can be done in a variety of ways but is usually either through cash or gift cards.
Furniture flipping is a great business for those who want to make some extra money with little stress and no formal education needed. You can do it from the comfort of your own home, as long as you have the necessary tools and space. With a bit of hard work, you could be on your way to making some serious cash.
Furniture flippers are people who buy furniture at a low price and resell it for a profit. They usually start as furniture buyers who love hunting for deals at garage sales or estate auctions. This is a low-stress job that’s also profitable.
For many retirees, it may have been a hobby turned profitable.
Delivery driver is a great job for retirees because it keeps them active and socially engaged. It can be difficult to sit at home all day, so this job is perfect for those who want to be out in the world meeting new people.
Delivering food is a great way to make some extra money in your spare time. It’s a low-stress job because you’re only out of the car for deliveries, and many companies offer drivers up to $20 per hour.
I love Doordash because their sign-up process is so easy–you can be up and running in minutes!
Ridesharing is a great way for seniors to make some extra money on the side while still having plenty of time for themselves. It’s very flexible, so they can work as much or as little as they want, and it doesn’t require them to take too much time out of their day.
Both Uber and Lyft require relatively little startup capital, and retirees can often make money driving for these companies.
Just make sure you have the proper auto insurance for ridesharing.
Taxis are in high demand in most cities, so there is always work to be found. In addition, the hours are flexible, so drivers can work as much or as little as they want.
And since driving a taxi is not very demanding physically, it is a good job for those who are no longer able to do strenuous work.
Many people who move to a foreign country find being a taxi driver a highly rewarding and lucrative way to make money.
There is a severe shortage of school bus drivers across the country.
This may not be a low stress job to many, but you can have a long lasting impact on the students. Right now, our students need positive influences in their lives.
What does the job entail? You must have a valid commercial driver’s license (or find someone who will provide the training) and be clear from moving violations in the last 3 years. In addition, you must pass a background check to work with students.
Many districts are desperate for school bus drivers and providing a signing bonus.
Chat moderators are responsible for monitoring chat rooms and helping to ensure that the conversation remains on topic and respectful. They also work to resolve any disputes that may arise.
They work in a variety of settings, from social media to online gaming platforms.
But for the most part, the job is relatively low-stress, thanks to the ability to take breaks and work flexible hours. Chat moderators also often have the opportunity to learn new technologies and hone their customer service skills.
Babysitting and nannying is a great way to make some extra money in your spare time. It’s perfect for people who love kids and have a few hours in the afternoon after school lets out. You can help out your neighbors by babysitting their kids or finding families near you who are looking for a nanny.
They offer a lot of flexibility, they’re relatively low stress, and they often come with a set schedule so you know what you’re doing each week. Plus, you can usually work from home, which is a big perk if you want to stay active in your golden years.
The average babysitter in the United States earns a bit less than $15 per hour, but some earn at least $20 an hour. It is easy to find work.
Event planning can be a very stressful job, but it can also be a very rewarding one. After retirement, many people look for a flexible job that they can do mostly on the weekends and in the evening. Event staff is a great option for those people.
They may work in a variety of industries, including entertainment, hospitality, marketing or nonprofit organizations.
Event staff often have to wear many hats during an event, handling duties such as coordinating with vendors, setting up event spaces, managing attendees, and serving as liaisons between organizers and other staffers.
This may not be the situation for everyone, but great for someone who likes to be in the action.
After retirement, many people feel lost and without a sense of purpose. A research assistant helps others find information and discover problems to solve. They work with teams or individuals to locate the best information possible and help them use it effectively.
Research assistants are in high demand because they help other people find information and solve problems. They work on a variety of tasks, such as conducting research, organizing data, and writing reports. Their skills are in high demand by companies, governments, and individuals who need help conducting research.
The job is relatively low stress and pays between $18 and $22 per hour. It requires patience, communication skills, and a range of computer skills.
A substitute teacher is someone who fills in for a permanent teacher when they are absent. This can be for a variety of reasons, such as paid vacation, maternity leave, or sick leave. It is a great option for retirees because it is one of the most respected and low-stress jobs after retirement.
This is one of the best retirement jobs because you can substitute teach any position within a school.
Substitute teaching can be extremely rewarding, as you are able to help students in need and fill in for teachers who are absent. You may also have the opportunity to work with different age groups and learn new things.
It is now possible to earn around $20 per hour on average as a substitute teacher. In order to become a substitute teacher, you need to have a bachelor’s degree in any academic discipline from an accredited college or university. With the right qualifications, you can enjoy a great deal of flexibility and earning potential while working with children.
You can earn up to $1,000 per month by listing your home on the site.
It’s also a low-stress job since you don’t have to worry about meeting deadlines or dealing with customers. And, since you’re working from home, you can easily take care of any last-minute changes or emergencies.
If you’re interested in becoming an Airbnb host, check out this guide on how to get started.
In this career, you would be reading documents or manuscripts and looking for mistakes in grammar, spelling, punctuation, and syntax. You would then mark the errors with a correction symbol and provide a note to the author about the mistake. Proofreading can be done independently or as part of a team.
It is also important to be able to meet deadlines because many publishers require that manuscripts be returned within a certain timeframe.
They enforce park rules, help visitors enjoy their visit, and provide information about the areas they patrol. Park rangers may also conduct educational programs, research projects, and archaeological surveys.
The growing popularity of outdoor recreational activities will lead to more demand for these workers.
Rangers must be able to hike long distances in difficult terrain, often carrying heavy equipment. They also may need to work extended hours, including weekends and holidays, during peak visitor seasons.
Voiceover artists are people who provide the voice for a character or commercial. They must be able to understand and interpret the script, and then deliver the lines in a way that sounds natural and believable.
Voiceover artists are in high demand for their unique ability to provide a voice for various multimedia productions that requires no formal training. This work can be done from anywhere with a good internet connection, making it an ideal job for retirees or those with flexible hours.
The work is often exciting, and you can set your own hours. However, it can also be demanding and require long hours during busy times.
They must be knowledgeable about the current market conditions and have strong negotiating skills. In order to succeed in this career, you’ll need to be able to work well independently and be comfortable networking with potential clients.
You’ll also need to develop a strong marketing strategy to attract new clients.
They may also instruct athletes on the rules and regulations of a sport. Sports coaches typically have a college degree in physical education, kinesiology, or a related field.
Coaches often work long hours during the season and must be able to handle criticism from players and parents. However, for those who love sports and enjoy working with people, sports coaching can be an enjoyable and low-stress job after retirement.
Being an artist is a great job to have after retirement because it doesn’t require a lot of stress and you’re free to create whatever you like. The only requirement for the job is that you have some artistic ability, which most people do.
Working as an artist can be perfect for people who are looking to have more flexibility with their hours and want to work on the go. There are many different types of artist jobs that one can find, and the best way to find out what’s available is to do some research online or talk to other artists in your area.
Translation is a great option for those who want to use their second or third language skills in a professional setting.
Many retirees find themselves with time on their hands after retirement and may enjoy doing something that they are good at and can be successful at. Speaking another language can lead to many opportunities, including working as a translator or in a translation services company, or becoming a consultant in foreign affairs.
Translators must be able to understand the source material fully and then accurately convert it into the target language.
Interior decorators are in high demand because they have an eye for design and can help people make their homes look beautiful. This is a low-stress career choice that allows retirees to work anywhere, which is why it is becoming increasingly popular.
Interior decorators are often retirees who have a wealth of knowledge and experience in interior design. They must build up a portfolio of their clients’ homes before they can become an interior designer and be able to charge more for their services.
Interior decorating is a creative line of work that can earn great money, and it’s often a side hustle for people who want to make more money while still having free time. Satisfying customers is another perk of this career!
If you’re looking for a way to make some money after retirement, and enjoy doing hands-on home repair projects, consider working as a handyman. Handyman work can be done on your own schedule, so it’s a great option if you want more flexibility in your life.
Handyman services are becoming more popular because they allow you to set your own rates and work on your own schedule.
This is beneficial for both the worker and the customer, as it allows the worker to charge a fair price for their services and customers can get work done on their time. Additionally, handymen have a variety of skills and can fix many problems around the home, which makes them a valuable asset.
Cuddling has become a popular service in recent years. Companies like Cuddle Comfort offer professional cuddlers that will come to your house and provide you with a compassionate, understanding listening ear as well as some quality cuddle time.
Some people make a living from professional cuddling. These cuddlers can earn approximately $40 per hour for just being themselves and giving bear hugs. This is a growing industry with many people finding comfort and satisfaction in human touch.
To become a mediator, you need to have either legal training or a bachelor’s degree in mediation. This gives you the skills needed to mediate and resolve disputes between two or more parties. Mediators usually have a low-stress job because of their flexibility and freedom to work from anywhere.
Mediators come from a variety of professional backgrounds, but the majority have some form of legal background. More than half of certified mediators work as general mediators, charging $100 to $250 per hour.
A data entry specialist is somebody who enters data into a computer system. This can be a very low stress job, especially if you have basic computer skills and typing speed and accuracy. The work is relatively easy to find and usually does not require any specific qualifications.
Data entry specialists are paid a modest wage for their work, but the pay is reliable and predictable. The job is also relatively easy to find, making it a great option for people who are looking for additional work during retirement or in their spare time.
Being able to type quickly and accurately in order to be successful in this role.
If you have a gift of gab and service, then this might be the perfect industry for you. Especially as a bar back!
The work hours are flexible, the tips are usually good, and you get to meet new people all the time. Plus this type of job is fun, as it’s not high-stress and it allows someone who just retired or wants a job with flexible hours to stay active socially while they make money.
If you’re looking for an alternative after retirement, waiter or waitress work is definitely a good option.
Many families are looking for healthy options for dinner. What is better than a home-cooked meal?
While working as a cook for a restaurant, you may often work long hours in a hot, noisy kitchen. However, cooking for local families on a small scale may be the perfect scenario.
Transcription is a great way to make some money after retirement. You can typically make around $18-$25/hour, depending on your skill level and experience.
The work is relatively low stress, so it’s a great option for those looking for a relaxing way to make some extra income.
Some retirement planners offer training and certification for their employees. The employer might pay for your training and certificate if they feel confident enough in hiring you as an employee after seeing how well you do these tasks.
This may not be the ideal situation for many, but it pays well.
Flipping items for profit is a great way to make some extra cash. You can find deals at garage sales and online, and then turn around and sell them for more.
Be sure to look out for scams, however, as there are many people who try to take advantage of those looking to flip items.
To learn how to flip for a side hustle, check out Flea Market Flippers.
Charity work is a great way to give back to the community and help those in need. There are many charities that need help, and by donating your time or money, you can make a big difference in someone’s life.
It can also be a great way to ease into retirement. Many charities are always in need of volunteers, and you can often find opportunities that fit your schedule. You may also be able to find paid positions with certain charities.
You will have the opportunity to help others and make a real difference in their lives. You may also find new friendships and learn new skills.
It keeps you social and busy, and it lets you help out in your community. Plus, many organizations offer volunteer opportunities tailored to retirees’ skills and interests.
In fact, many volunteer opportunities turn into paid jobs.
Which best jobs for retirees do you want?
When you’re looking for a job that is low stress and matches your skills, it’s important to consider a variety of factors. For example, employers want employees who can work independently and are well-organized. They also want employees who can communicate clearly. You should have a basic understanding of the job duties as well.
If you have specific skills, you may not need these things as much.
However, employers still want employees who can complete tasks without any help from others. There are a variety of ways to find out about such jobs, including using search engines or social media sites like Facebook and LinkedIn.
Also, whoever says you have to wait for retirement?? Find low-stress jobs that pay well without a degree now.
It’s also important to be aware of the pay structure. Often, employers want employees who will be able to work for them on a long-term basis. The pay structure is often predictable and employers know exactly how much work there will be available for each project. This makes it easier for both parties involved.
One way to find a job that is low stress and matches your skills is by using online platforms like Upwork, Freelancer, and Fiverr. These platforms offer many data entry jobs that are perfect for those looking for an easy way to make some money after retirement. In order to take advantage of these jobs, you’ll have to learn how to type fast.
Source: moneybliss.org
When I first started getting into blogging several months ago (keep in mind that last summer I didn’t even know what a blog was….yes, I’m serious), I spoke to another Certified Financial Planner who had been blogging for about a year. He gave me some good tips and told me to have a successful blog that you have to network with other blogs. One of the blogs he told me to check out was Moolanomy. At first, I was like Moo-Law-Uh-What? But then I finally got to check out Pinyo’s blog and I was really impressed. He has tons of great information on personal finance and incorporates very useful and easy to read charts to illustrate his points effectively. Here’s our interview:
I see you’ve read my blog quite thoroughly — I am impressed. As for alternative income streams, I had a few web sites before Moolanomy and knew how much work it takes to run a successful web site. All I can say is the blog has done well beyond my original expectation. Before starting Moolanomy, we relied on part of my wife’s income to cover our expenses and planned savings. To accommodate her maternity leave, I would either have to (1) earn more, (2) spend less, or (3) save less. I certainly didn’t want to save less, and I was sure that we would be spending more after the baby is born. So the only option left was “earn more”. In retrospect, I am glad I started Moolanomy. This year, I believe that alternative income from all of my web businesses will be about 17% of my total income. By the way, my wife is back working so the extra income is really nice, especially in this economy.
As for 529 Plan, it was doing well until the stock market went south. However, I am currently sticking with my original plan to contribute $425 a month to the plan. Once I have a chance to re-evaluate our financial goals, I may be adjusting this number after the new year.
I am a strong believer of diversification, including income diversification. I don’t think I would quit my current job even if my blog income exceeds my salary. As much as I like blogging, it’s based on a technology that’s changing fast. Think about it. Where was blogging 5 years ago and where do you think it will be 5 years from now. Would you risk your career and marketability on something that could disappear tomorrow?
I enjoy the extra income and could probably blog full-time between jobs. However, I think I would soon find another job, or start some sort of business on top of blogging. So no, I don’t see it as full time profession for me.
As mentioned earlier, making money blogging is conceptually “simple”, but it’s not “easy”. If I count all the hours I poured into Moolanomy, I think I am still making just above the minimum wage. However, once you get it going, the income is semi-passive and you’ll eventually recoup your investment. As for three specific tips:
I think creating M-Network was one of the main contributors to my success with Moolanomy. Initially, we did a lot of linking back and forth among each other which really helped build our readers base. We don’t do that as much now, but we are still doing a lot of information sharing and work together on a few initiatives. For example, we recently released a free eBook called Money Saving Tips for the Holidays Guide eBook and we recently just released The 12 Days of Christmas – Personal Finance Style 2008 series. Other than that, the main benefits are the the teaching, ideas, leads, and intels that we offer each other. Also, it’s great to have a group of supportive people that you can bounce your ideas off, or help you get out of tight spots.
Lastly, we are planning to launch a network feature in 2009 that I am really excited about…stay tuned!
Honestly, I have been slacking in this area. I haven’t set a goal for my blog for a while now, especially because I have been more focused on my job and family. I know that I want to keep blogging in 2009 for sure, but I may be slowing down my pace and supplement my content from other contributors. In fact, I just quietly added the Contribute feature to my blog.
I guess, the only SMART goal I have is to have 35% of my total income coming from Moolanomy in 2009.
I think the biggest surprise is that I can actually earn serious income with the blog. But I think the best thing about this experience is the opportunity to meet a lot of people and establishing a few good friendships along the way. Even if I stop blogging now, there would be a few people that stay on my list of friends into the foreseeable future. Additionally, I learned a lot about financial concepts and ideas over the year and a half blogging about finances. I guess you’ll can’t help but learn a few things by writing about a subject every day.
Thanks to Pinyo for taking time to answer my questions. If you haven’t checked out his blog yet, you must. Here are some of my favorite posts from his blog:
Source: goodfinancialcents.com
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.
This week’s episode starts with a discussion about Social Security.
Then we pivot to this week’s money question from Amy, who wrote, “Hi, Nerds. I love your podcast and I wanted to get your take on a question I have. I am in my late 30s and I am just starting to think about investing for retirement. I have a decent amount of money in a savings account that I can use to invest. I’ve done a fair amount of research into investing, and index funds come up a lot as a smart option. My question is, aren’t ETFs an even better choice given that they’re more tax efficient? I plan to buy and hold and don’t expect to do much with my investments until I retire. Please help me figure out if ETFs end up costing investors less than index funds do when the time comes to sell them.”
Check out this episode on either of these platforms:
Figuring out how much money we will need to live comfortably in retirement is a notoriously imprecise exercise. To make planning for our future selves a little easier, a team of Nerds created a Social Security benefit calculator, which generates an estimate of your Social Security benefit as a monthly and yearly figure. This number can help you figure out how much money you’ll need to have in other retirement savings accounts like IRAs to reach your retirement goals.
This number, while a useful data point, is still just an estimate. Your actual Social Security amount could be different depending on your income history and the age at which you retire. For example, today, you may plan to retire at age 62, the current earliest age of eligibility for Social Security. In reality, you may end up working until the full retirement age of 70. Delaying Social Security withdrawals for those eight years will significantly increase your retirement benefit.
Saving for retirement can feel like a never-ending chore, especially when you won’t see the fruit of your (literal) labors for several years. To entice us to save, the government offers tax breaks on certain types of retirement accounts, namely 401(k)s and IRAs. With traditional 401(k)s and IRAs, you get your tax break up front so that retirement contributions reduce your taxable income. Roth 401(k)s and IRAs, on the other hand, delay the tax benefit until retirement when you can make withdrawals tax-free.
Contained within those retirement accounts are the actual investments: stocks, bonds, mutual funds, index funds, ETFs or options. ETFs and index funds are popular options because of their relative low cost and promise of high returns. Generally speaking, ETFs have less tax liability than index funds. It’s possible to owe capital gains taxes on your profits on index funds without even selling a single share.
Understand how accounts are taxed. Roth IRAs, 401(k)s, and other retirement accounts are taxed more favorably than brokerage accounts.
Consider different investment options. Once you have your retirement account, you have a number of choices like target-date funds or mutual funds.
Investments have their tax differences, too. ETFs are more tax efficient than index funds, but the difference is fairly small and it’s not typically a major factor in retirement accounts.
More about tax-efficient investing on NerdWallet:
Sean Pyles: Choosing the right investments for your retirement accounts can be a head-spinning endeavor. Do you continually tweak your investment mix or just let things ride?
Liz Weston: And how do you choose between retirement accounts like 401(k)s and Roth IRAs?
Sean Pyles: Well, this episode we will help a listener sort out their retirement investment decisions.
Welcome to the NerdWallet Smart Money podcast, where you send us your money questions and we answer them with the help of our genius Nerds. I’m Sean Pyles.
Liz Weston: And I’m Liz Weston.
Sean Pyles: OK. We’ll get to the part where we ask our listeners to send us their money questions in a bit. But first, Liz, welcome back.
Liz Weston: Hey, it’s great to be back. Thank you.
Sean Pyles: So Liz, you had a little eat, pray, love journey through Europe, spent a lot of time in France. Do you have any profound money lessons for us now that you’re back?
Liz Weston: Well, this is the biggest one, don’t wait until retirement to travel and do the stuff that you want to do. I’ve been taking paid and unpaid leaves multiple times in my career and they are so worth doing if you can swing it.
Sean Pyles: That sounds lovely. Well, I am glad that you’re back. And listeners, just so you know what’s up on our end too, my other co-host, Sara Rathner is about to head off on her own spiritual journey called maternity leave. So Liz will be back in the hosting seat with me over the next few months. All right. And now we are at the part where we ask our listeners for their money questions. So to keep it short and sweet, listeners, we know that you have burning money questions and it is our job to answer them. So send your money questions our way.
Liz Weston: Maybe you want some advice about how to make the expensive summer travel season more budget friendly, or you’re wondering about how to pay for a bathroom remodel or maybe your question is even less specific. Whatever you’re wondering about, please send us your questions. Leave us a voicemail or text us on the Nerd hotline at 901-730-6373, or you can email us at [email protected].
Sean Pyles: This episode, my other co-host, Sara and I answer a listener’s question about how to choose the most tax efficient investments for their retirement account. But first, to kick off this episode, Liz and I are talking about another big part of retirement planning, Social Security benefits, specifically understanding how much you might get.
Liz Weston: It’s easy to underestimate how important Social Security is going to be to your retirement planning, but it is huge. Every thousand dollars in monthly income that you get from Social Security is $300,000 that you don’t have to save.
Sean Pyles: Wow.
Liz Weston: Yeah, and not only is that income guaranteed for life, but it’s inflation adjusted, so your buying power isn’t eroded over time and you don’t have to make a bunch of decisions about how to invest the money, it just comes to you. So one of our Nerds, Tina Orem, has created a calculator to help you estimate your benefit. Welcome to the podcast, Tina.
Tina Orem: It’s great to be back. Hi.
Liz Weston: Tina, right about now, a lot of our audience is thinking, “Huh, I’ll never see a dime from Social Security.”
Sean Pyles: Yeah. Well, we’ve been hearing for years that Social Security is going broke.
Tina Orem: Yeah. So in March, the Social Security Administration actually released a statistical analysis and it basically said that that part of Social Security, the so-called trust fund, is going to run out of money in 2034. And at that point, the estimate is that the taxes you and I pay on our earnings, basically a part of it, will still be enough to pay something like 80% of promised benefits. So, I mean, 80% isn’t nothing.
Liz Weston: Yes, and Social Security is the most popular federal program ever. I can’t imagine any politician who wants to get reelected allowing people who are getting benefits to have those benefits cut. So the program may change, but it is highly doubtful that it’ll go away.
Sean Pyles: Yeah. And also just to beat back the cynicism among my fellow millennials and my Gen Z brethren, I think the whole “Social Security is going to run out of money, so why should we even try” defeatism could be a self-fulfilling prophecy. So if folks in my generation really want this benefit, make your voice heard and ensure that it’s there for you. The battle is not over, folks. So anyway, Tina, let’s hear about this calculator that you devised.
Tina Orem: Sure, yeah. We put this calculator together because we know a lot of people wonder what they’re going to get from Social Security and when they’re going to get it. And I think that’s a reasonable thing to wonder, especially when you’re thinking about your retirement savings and those bigger questions of, how much money will I need every month and where’s that money going to come from? So this calculator is intended to help consumers with that. And I want to be sure to give a shout-out to our engineering team, the product team, our editors, we all helped produce this calculator. And I’m saying that not just to be sure to acknowledge and credit the people who worked on this, but I also want to tell people that this calculator is made by a team of people, and we vetted it and tested it and we put a lot of thought into how to make it useful and easy for consumers.
Liz Weston: Awesome. So what do people need to know about using the calculator?
Tina Orem: Okay, a few things. So the first thing I want to say is that the calculator is easy to use. You just enter your date of birth, you enter the age of which you want to start taking Social Security retirement benefits, your annual income this year, and then an estimate of your annual salary increases going forward. So that’s it. The second thing I’ll say is that this is an estimate, we don’t have access to the last 35 years of your personal income and earnings history. So that’s what the Social Security Administration uses to calculate your exact, to-the-penny benefit. So we make an estimate of your previous earnings based on what you tell us you earned this year. So the catch is, if you were out of the workforce for several years, or maybe you had income and it fluctuated a ton, or you were in a line of work where they may not have withheld Social Security taxes from your paychecks, your benefits are much harder to estimate with this tool.
But if you had a fairly steady paycheck and Social Security tax has been coming out of those checks, this tool should give you what we think is a pretty good estimate of the size of your monthly Social Security retirement benefit check at various points in time. And I say various points because there are three in particular that are of particular interest when it comes to Social Security: There’s the age at which you want to retire, there is what Social Security Administration calls your full retirement age, which I’ll get to in a second, and then age 70.
Sean Pyles: OK. So this might be a good time to remind folks of how Social Security benefits are actually calculated. Tina, can you give us a super quick, simple explanation of this very complicated matter?
Tina Orem: Yes, because it turns out the formula for calculating Social Security benefits is actually pretty complex. But simply put, how much Social Security tax you pay into the system over time influences the size of your eventual retirement checks. That’s the first thing to know. The second thing is that when you decide to start taking Social Security retirement benefits has a really big effect on the size of your check. And there’s one key age to that I want to point out, and that is what I said, the full retirement age. So that’s the age at which you’re entitled to 100% of your Social Security retirement benefit. And the Social Security Administration decides what your exact full retirement age is, and that’s based on when you were born. So for most people, it’s sometime between age 66 and 67.
Liz Weston: I’m guessing for most of our listeners who are born in 1960 and after it’s going to be age 67. You can start Social Security as early as 62, but you’re essentially settling for a permanently reduced check, and why would you do that?
Sean Pyles: This was one of the most interesting parts of the calculator as I was playing around with it is seeing just how much you can get monthly or annually by delaying your retirement even a year or seven years or something like that. You can get thousands of dollars more per year just by holding off the age at which you received these benefits.
Liz Weston: Oh yeah, it’s huge. And there’s been a lot of research done over the past few decades showing that most people are better off waiting. And that’s sometimes a hard message to get through: Like people want to grab the money when they’ve got it, but you really do get more than sufficient payoff if you wait.
Sean Pyles: And another cool thing with this calculator is that you see the Social Security break even age, which is the point at which the amount of benefits you receive having waited a few to start getting your benefits begins to outpace the amount you would’ve gotten if you’ve started getting them at an earlier age.
Liz Weston: Yeah.
Sean Pyles: All right. Well, Tina, what should folks do with the information they get from this calculator?
Tina Orem: Well, I think one good use of this information is to get an idea of what’s really going to be available to you when you want to retire. So for example, if you’ve used our retirement calculator and you have an idea of how much money you’ll need per month during retirement to live the life that you want to live, then knowing what portion of that is going to come from Social Security can help you get a tighter handle on how much you need to save for retirement.
Another thing the calculator I think will get you thinking about is when you want to retire. So if you know that you’re going to get a bigger monthly check by waiting to start taking benefits, would waiting work for you? How long is too long? When will it be no longer worth it or affordable to wait? So that information can help you get on the same page with your partner and with yourself frankly about when you’re really going to retire.
Sean Pyles: And where can people get more information around Social Security benefits?
Tina Orem: Yes. Well, NerdWallet does have a ton of helpful content about Social Security on the site, everything from how it works and different types of benefits that come from the Social Security Administration and what happens to your retirement benefits in certain situations and ways to maximize your benefits. And of course, you can always take a look at the Social Security Administration’s website or visit a local Social Security office.
Liz Weston: And we should mention that if you do have a more complicated situation, you can see your actual Social Security estimated benefits on its website by creating a my Social Security account. Probably a good thing to do anyway just to secure that and make sure that nobody else can get your information, but it’s a way to see what Social Security’s estimates are based on your actual earnings history.
Sean Pyles: All right. Well, Tina, thank you so much for talking with us and for building this super cool calculator.
Tina Orem: Yeah, my pleasure. I hope it helps people.
Sean Pyles: And with that, let’s get onto my money question conversation with Sara.
This episode’s money question comes from Amy. Here it is, as read by Smart Money producer, Rosalie Murphy.
Rosalie Murphy: Hi, Nerds. I love your podcast and I wanted to get your take on a question I have. I am in my late 30s and I am just starting to think about investing for retirement. I have a decent amount of money in a savings account that I can use to invest. I’ve done a fair amount of research into investing and index funds come up a lot as a smart option. My question is, aren’t ETFs an even better choice given that they’re more tax efficient? I plan to buy and hold and don’t expect to do much with my investments until I retire. Please help me figure out if ETFs end up costing investors less than index funds do when the time comes to sell them. Thank you, Amy L.
Sara Rathner: To help us answer Amy’s question on this episode of the podcast, we’re joined by investing nerd, Alana Benson. Welcome back to Smart Money, Alana.
Alana Benson: Thanks for having me.
Sean Pyles: Alana, it’s always so good to have you on because we have so many investing questions and our listeners do, too. But before we get into them, a quick disclaimer that we are not about to give any investment advice, we are not ever going to give you investment advice or tell you what to do with your money. This is for general educational and entertainment purposes. Okay, let’s talk about some different investment vehicles that people can use to invest or save for retirement. 401(k)s and Roth IRAs are pretty common, but what about straight-up brokerage accounts or robo-advisor accounts?
Alana Benson: So I just want to start off by clarifying some language for our listeners. First of all, saving does not equal investing. Saving can mean putting money into a savings account. It can mean stashing your money under your mattress. We do not necessarily say that that’s a good idea, or it can mean putting it into a high yield saving account. But investing means putting your money into a specific investment account, which is different than a bank account, and then purchasing investments from there. So a lot of people use that language interchangeably, just like to clarify, maybe we say saving for retirement, but really we mean investing for retirement.
Sean Pyles: Yeah. And one key important difference is that when you do have an investment account like a 401(k), you have to make sure that the money you’re putting into there is being invested because some people will make this really tragic mistake where they’ll put money into these accounts for many years and it will not have been invested, and then they’re not actually growing their money through investments and compound interest and all of that good stuff.
Alana Benson: Absolutely. That is a devastating mistake.
Sara Rathner: Yeah, the money defaults to essentially being held in cash in a money market account, same thing almost. So you should just be aware that what the money sits in when you put it in first before you tell it where to go is essentially cash. Once you tell the money where to go in terms of picking investments and you set up that automatic transfer of money from your paycheck into those investments, that’s when you can sit back and hope that the market works your way over the next 30 plus years, which it may or may not do, as we know.
Alana Benson: Yeah, and I think it’s really important as well to talk about where you invest, which means your account type, so a 401(k) or a Roth IRA. The actual account type is just as important as what you actually invest in from that account, which is stocks or bonds or mutual funds. So understanding the difference between an account, which is not actually an investment. So if someone says they’re investing in a Roth IRA, the Roth IRA is not the investment that’s going to make the money, it’s just the account type where those investments live. So they might be investing in stocks or mutual funds from their Roth IRA.
Sean Pyles: One thing we should probably clarify, as well, is that we talk a lot about Roth IRAs and 401(k)s because those are tax-advantaged accounts and we’ll get into what that means more in a little bit, but using a brokerage account or a robo-advisor account for retirement savings is not very common. People typically don’t use that as their primary investment vehicle, correct?
Alana Benson: That depends. I think if it’s someone who has a 401(k) available to them, then that’s going to be something that if you have an employer that offers that, that’s great. And 401(k)s tend to have much higher contribution limits, so you can actually put more money in. But if you don’t have an employer that offers that, or if you are self-employed, then you may be looking for other options.
Sara Rathner: So Sean mentioned 401(k)s and Roth IRAs, which are two different kinds of investment accounts that are often used for retirement savings. Is there a general order of account types for investing that financial advisors recommend?
Alana Benson: So typically the idea is to start with a 401(k) if you have one. 401(k)s are great, we talk about them a lot on this podcast. You often get an employer match through them, which equates to free money. So the idea is that you start with a 401(k). You contribute enough to get your employer match and then you consider pausing on that or put as much in that as you want if you don’t want to make this complicated. But if you’re OK with a couple complications, once you get your match, then consider IRAs. Traditional IRAs, Roth IRAs, they both have different tax advantages, but the reason that you would move from a 401(k) to an IRA is because the tax advantage for IRAs is really strong.
So you get your match with a 401(k), then move to an IRA once you can max that out, then move back to a 401(k) and you could max out that 401(k). I like to think of it almost like a waterfall with buckets. So if water is pouring into the first bucket, you fill up that first bucket and then once it starts overflowing, it can start filling up the next bucket. So don’t feel stressed out if you can’t necessarily do all those things right away, but the first bucket is getting that match. If you can contribute enough to get your match, that’s awesome, then the overflow goes into an IRA once you can max that out, then into maxing out your 401(k).
Sean Pyles: And what about folks who maybe don’t have access to a 401(k) through an employer? Can you talk about how solo 401(k)s and SEP IRAs might fit in?
Alana Benson: Yeah. So solo 401(k)s are great, they’re designed for business owners with no employees. SEP IRAs are another option. Folks who are self-employed are really going to need to look at their specific circumstance, whether they have employees or if they don’t and figure out what retirement accounts are going to work best for them. That may be a conversation to have with a financial advisor just because those things can get a little complicated. But a really important thing is that once you figure out where, again, that type of account that you want to invest in, maybe the order in which you want to have your money flow through those investment accounts, then you can figure out how you want to invest. So we have the where, which is the account type, the what, which is the actual investments, and then the how, which is, “do you want to choose your investments by yourself and manage them by yourself or do you want to not worry about that?”
So, if you don’t want to worry about it, you don’t want to think about it or stress about it, you can have a robo-advisor do it for you, which is a pretty low-cost way. These are online algorithms that basically take your risk tolerance, your age, other personal factors into account, and then they build and manage a portfolio for you for a fairly modest fee, which is great. That makes it super easy. You can automate it, have money taken out of your bank account, and then you don’t have to worry about it. You could also work with a traditional financial advisor, but that will cost more. And then if you want to do it yourself, you know, there’s all kinds of research. You can do stock investing, you can use mutual funds or index funds. There’s lots of options and we have lots of information on how to do that on nerdwallet.com, but that’s really how of how you do this.
Sean Pyles: I want to go back to a term that we’ve mentioned a couple of times so far, and that’s tax-advantaged. Alana, can you explain how that pertains to 401(k)s, Roths and the like, and why it’s such a big deal?
Alana Benson: So tax-advantaged is just a fancy word for, “you get a nice tax benefit,” which is a good thing, you should be excited about any kind of tax benefit because most likely it will equate to more money in your pocket. So traditional 401(k)s and IRAs, you can say, “Hey, I contributed this amount of money,” and so you’ll get a nice tax break up front. But Roth accounts, so either a Roth 401(k) or a Roth IRA, they don’t offer an upfront tax deduction, but you get to take your money out tax-free in retirement. So you put it in after you’ve already paid taxes on it, and then that money grows tax-free for many, many years. So a lot of people find Roth accounts more attractive for that delayed benefit, but it will depend on you and your individual tax circumstance. But again, this is why you might move from a 401(k) if it’s a traditional one to an Roth IRA, it’s because of that really healthy tax benefit.
Sara Rathner: OK. So in contrast to tax-advantaged investment accounts like certain kinds of retirement accounts, there are also taxable brokerage accounts too, and those are either offered by traditional brokerages or banks or robo-advisors and they don’t have this special tax treatment, right? How are they taxed?
Alana Benson: Again, we just want to clarify some terms and I’m really, really glad you asked this question because these things can often get conflated, which is why I’m so adamant about what, the where and the how. Robo-advisors may be able to be tax-advantaged if you use them in the right account. So again, robo-advisors, that’s how your investments are going to be managed. Many robo-advisors offer retirement accounts like IRAs, but not 401(k)s since those are offered through your employer. But if you open a taxable account through a robo-advisor, yes, it won’t have those tax benefits, but if you open a Roth IRA and you’re having it managed by a robo-advisor, then you will be able to get the tax benefits.
Sara Rathner: So again, it’s not about who is furnishing the account, but it’s about the type of account that you have.
Alana Benson: Exactly, and that’s why it’s so important to pay attention to your account. A lot of people, they might start up with a robo-advisor, don’t have the background information and the robo-advisor maybe would put them into a taxable brokerage account, but maybe they’d prefer to be in a retirement account. So it’s important to have that background even heading into something like investing with a robo-advisor so you know exactly what you’re getting yourself into.
Sara Rathner: Right. So all that being said, let’s go back to how these accounts are taxed. If you’re looking at a taxable brokerage account for investing purposes, what sorts of taxes do you need to just be aware of when you’re making investment decisions?
Alana Benson: Yes, this is the joy of long-term versus short-term capital gains taxes, which are taxes, so we aren’t huge fans of them. But if you are investing and you are making money, there will come a day where you need to pay taxes on the profits that you make from selling your investment. So you hold an investment for a long time, hopefully you make a bunch of money off of it, that money you might need to pay some form of capital gains tax. If you’ve held onto an investment for more than a year, you’re going to pay what’s called long-term capital gains tax, and that tax rate can be 0%, 15% or 20% depending on a couple factors like your taxable income and your filing status.
In contrast to that, if you hold onto an investment for one year or less, you’ll have to pay short-term capital gains, which are taxed at your ordinary income tax rate or your tax bracket. And the end takeaway of all of this is that long-term capital gains are likely more advantageous for you. And so, if you can hold onto investments for longer than a year, you’ll be taxed at a better rate.
Sara Rathner: Good thing to keep in mind for anybody who is thinking about the taxation of their investments, and Amy and their question mentioned a concern about the tax efficiency of their retirement investments. So it sounds like in their case, the 401(k) and Roth strategy combined could be an option for them. But let’s turn to different investment options within all of these different kinds of investment accounts that we’ve talked about so far. How feasible or common is investing in an ETF or exchange-traded fund or an index fund through your 401(k)? And maybe we should also start by defining those terms for our listeners who might be unfamiliar with them.
Alana Benson: I think that’s a great idea. ETFs are funds, so funds are basically baskets of investments. It’s a whole bunch of stocks all stuffed into one investment that you buy all at once versus buying a single individual stock. Exchange-traded funds are a type of funds as are index funds or index mutual funds. And a couple different things are important here. So whether or not you’re actually able to pick your own investments as specifically as exchange-traded funds or index funds is going to depend on your specific 401(k) plan, so that’s something that you’ll need to ask your 401(k) provider about.
But a lot of 401(k)s will actually set you up with what’s called a target-date fund. Target-date funds are really interesting because they automatically adjust your allocation over time. So if you start investing when you’re 20, your target-date fund will likely have a riskier group of investments held within it. And as you get closer to your target date of retirement, which is why they’re called that, your allocation will shift to be more conservative over time, and that’ll just happen in the background. That’s what most 401(k)s are made up of. So going in and changing what you’re investing in a 401(k) is pretty rare. You’ll likely just be in the investment in a target-date fund that is selected for you by your 401(k) provider.
Sean Pyles: Well, just to get to the core of our listener’s question and ask it straight out, are exchange-traded funds or ETFs a better “choice” for retirement investing versus index funds since ETFs are more tax efficient?
Alana Benson: Yes. So ETFs technically are more tax efficient than index funds just because of how they’re structured. When you sell an ETF, you’re typically selling it to another investor who’s buying it and the cash is coming directly from them and then you have to pay capital gains taxes. But it’s a little bit different with an index fund. And the long story short is that you could potentially owe capital gains taxes without actually selling a share because of how they’re structured. That being said, this happens a lot less frequently with index funds and ETFs than it does with other types of mutual funds. And from a tax perspective, ETFs generally have the upper hand over index fund, that’s true, but it’s a pretty minute difference and you probably will not have a huge tax bill just because you invested in an index fund versus an ETF. So if you have the option, maybe go with an ETF. If you don’t, I really don’t think you should be too stressed out about it.
Sean Pyles: OK. But in general, if you are investing for retirement through a retirement account like a Roth IRA or 401(k), the ETF versus index fund question probably isn’t that big of a concern since you most likely are not actively buying and selling stocks within these accounts, right?
Alana Benson: I’d say that’s true. And I think also to get to the listener’s question is that she’s talking about potentially doing this through a 401(k). Again, I’d stress like it’s fairly unlikely that you can actually do that unless your 401(k) provider allows you to do that. So the time that you’d run into this question is if you were investing, like you said, through a Roth IRA where you have to pick your investments yourself. Again, unless you are using a robo-advisor, in which the robo-advisor would pick investments for you. And most of the time robo-advisors invest you in a handful of ETFs and index funds as well. So you’ll be in the same investments no matter what.
Sara Rathner: So it sounds like what’s worth losing sleep over isn’t necessarily these decisions that don’t have massive differences between them, but more so just getting started on investing for retirement in the first place whenever you’re able to and consistently setting money aside for retirement over time and just letting those investments hopefully grow.
Alana Benson: Exactly.
Sara Rathner: So everybody save for retirement if you can. Anyway, Alana, is there anything else folks should keep in mind when deciding where and how to invest for retirement?
Alana Benson: I think you really said it. Keep in mind that the importance of account types should not be understated. So don’t just open a standard brokerage account if you think you could benefit from the tax advantages of something like a Roth IRA. Really make sure you know what type of account you want to get into and then start worrying about what types of investments you want to get into.
Sean Pyles: Well, Alana, thank you for joining us.
Alana Benson: Thank you for having me.
Sean Pyles: And now let’s get on to our takeaway tips. Sara, will you please kick us off?
Sara Rathner: Of course. First, understand how accounts are taxed. Roth IRAs, 401(k)s and other retirement accounts are taxed more favorably than brokerage accounts.
Sean Pyles: Next up, consider different investment options. Once you have your retirement account, you have a number of choices like target-date funds or a mutual funds.
Sara Rathner: And finally, investments have their tax differences too. ETFs are more tax efficient than index funds, but the difference is fairly small and it’s not typically a major factor in retirement accounts.
Sean Pyles: And that is all we have for this episode. Do you have a money question of your own? Turn to the nerds and call or text us your questions at 901-730-6373. That’s 901-730-NERD. You can also email us at [email protected] Visit nerdwallet.com/podcast for more info on this episode. And remember to follow, rate and review us wherever you’re getting this podcast.
Sara Rathner: And here’s our brief disclaimer. We are not financial or investment advisors. This Nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean Pyles: This episode was produced by myself with help from Liz Weston. We had fact-checking help from Pamela de la Fuente, Kaely Monahan mixed our audio, Jae Bratton wrote our show notes and a big thank you to the folks on the NerdWallet copy desk for all their help. And with that said, until next time, turn to the Nerds.
Source: nerdwallet.com
Show Summary Jon & Amy Nolen have built a 100+ rental unit portfolio while raising a family & staying best friends. On todayâs show, Jon reveals how he was able to…
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