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Benefits of Letting Your Child Have That Lemonade Stand

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We love inspiring children to be creative and passionate. When it’s warm outside, it’s the ideal time of the year for your child to open a lemonade stand! Lemonade stands are loads of fun and they teach children some important lessons.

Lemonade stands can be as simple or extravagant as you’d like. A common folding table and sign will work, or you can craft a custom shop. All you need do is set up in an area with a good amount of foot traffic and offer your goods to thirsty customers.

Here are the advantages children get out of having their own little business.

It exposes them to success

For many folks, the largest motivator is success. Once they have had a taste of achievement, they’ll want more. It doesn’t matter if they enjoy bringing in sales or creating an awesome product, they’ll increase their desire to succeed.

It puts their imagination to work

Designing and constructing a lemonade stand is a lot of work. Children will need to shop for ingredients, choose their recipe, make signs, and make the stand with plenty of appeal and flair. Then they get to use their ingenuity to come up with imaginative ways to draw in customers.

It helps them understand finance

Regardlss what we end up doing in our life, we have to have basic knowledge of finance. With a lemonade stand, they will learn about economics, such as how to calculate costs, how to figure out their losses or gains, and how to set a price. Moreover, they’ll get a true appreciation of the value of a dollar once they learn how hard it is to get one.

It builds independence and self-confidence

Help you can, let the children do all the work and only help by offering advice. You want them to feel a real sense of ownership with this project. They’ll learn how able they are and how hard work can get them where they want to be in life.

Is Opening a Franchise Worth the Money Invested?

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Hundreds of entrepreneurs take a leap of faith and invest in franchises as a way to get a part of the American dream. The temptation is possessing a proven brand concept and training and marketing support to increase the odds of start-up triumph. But for most, the main question each potential franchisee asks is: “How much money can I make?”

As part of a recent study, 50 franchisees reported on across the US offered annual gross sales figures, many going into the millions. But as part of the study, profit figures were reviewed for a big majority of star franchises. It was discovered that these franchises as a group average over 3 times the net income of the average U.S. franchisee.

For some, the benefit was beginning with a low-cost franchise and knocking the ball out of the park. Others were capable of generating a high return on investment, even at a bigger initial franchise investment. Remember, the franchisees on the list are stars, not just the average ones.

Sadly, numerous new franchise owners begin with improbable financial expectations and never accomplish the level of financial success they had dreamed of. It’s vital to know that depending on one financial figure gives a unrealistic picture of a franchise opportunity.

Keep the following tips in mind if you are a potential franchise business owner looking at opportunities.

Don’t be fooled by big, top-line numbers

As a business owner, your take home income will eventually come out of your business’s net profit or bottom line. While the gross sales/gross revenue of any company (“top line revenue”) may seem remarkable, it is crucial to know the profit margin of the business, the amount of money left over after all business expenses are paid out.

The result is your business bottom line most likely isn’t your bottom line.

What Happened to US Savings Bonds?

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There was a moment when billions of dollars in U.S. savings bonds were given for weddings, graduations, birthdays, or just because. Those days are over. After selling billions of dollars of saving bonds every year, the Treasury is selling less than $50 million right now.

An older style EE Bond

What happened to U.S. Savings bonds? The government messed with the interest rate formula, making them unattractive as an investment by fixing rates for the lifetime of the savings bond. Then in ‘12, the government no longer offered paper savings bonds, eliminating their attractiveness as gifts. Furthermore, the Treasury no longer marketed savings bonds, probably due to the fact that the government was getting a big debt by overspending. They didn’t want to bring attention to the fact that it needed to borrow money.

U.S. Savings bonds have had a long and detailed history, beginning with Series A-D bonds, provided in the depression to offer folks an enticement to save correctly. The Series E bond was started in April of 1941 by as a way of financing World War II. These bonds, offered as an American investment, had an initial 10-year maturity and were offered at a reduction of face value. They had an interest rate of 2.9%. During the war, over $35 billion worth of saving bonds were sold to the public, in amounts as small as $25.

When Series EE bonds were a Great Deal

Saving bonds were introduced in the early ‘80s. This was a period of rising interest rates, making buying them more striking. These saving bonds had a lifetime, fixed base rate that was put in place every six months for all bonds sold during that time.   The bonds had a “floating rate” portion of the interest, which altered every six months to stay with the established rate on Treasury notes.

How to Open a Savings Account for an Infant

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As a grandparent, you can help reduce some of your infant grandchild’s expenses by opening a savings account for her/him. Health care and college are just 2 examples of expenses that you can provide assistance with by consistently adding to the savings account. In addition, when your grandchild is older, you can aid in teaching them the value of saving by letting them help manage the account. Many banks provide savings accounts that are purposely tailored for kids.

Contact your bank to find out if it has savings accounts especially for children. Make a note of all incentives and benefits that are available and the requirements and minimal balance necessary to open the account.

Call other banks and inquire about their incentives and benefits to open a child’s savings account. Compare your bank’s incentives with the other banks and pick the one that best fits your needs.

Gather the necessary information to open the account. For instance, you need your grandchild’s social security number. If your grandchild doesn’t have a social security number, ask their parents to apply for one as quickly as possible. There are a few financial institutions that let you open an account for your grandchild without it as long as you give it sometime down the line.

Fill out the application and include yourself and/or the parents/guardians if you want them to be on the account. Even though you can visit a bank branch to open the account, many banks let customers fill out the paperwork online. Moreover, you can pick the date that you want your grandchild to gain access to the account on the application. This is very important because if you set it up for college, you want to make sure he or she doesn’t bother the money until then.

The Best Investment Gift for a Grandchild

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Regardless if you have $1 to provide or $10,000, the finest investment gift for a grandchild is to start or give to a 529 savings plan.

“For grandparents who want to help their grandchildren pay for college, these make the most sense. You have a wide range of choices of where and how much you invest, and you can keep control if you want.

More relevantly, your investment increases without tax and qualified withdrawals, for expenses like fees, room/board and tuition aren’t subject to federal or state tax. Some states give a tax deduction if you go with your home-state plan.

In the meantime, saving money in a 529 plan will put little impact on the financial aid. By contrast, if you were to put money into a customary investment account in your grandchild’s name, those amounts would be factored into the expected contribution of the family.

If your grandchild gets a full college scholarship, don’t fret. You can just name another person as the beneficiary. The individual can be of any age and doesn’t have to be a relative.

If you have to cash out, you must pay a penalty, plus state and federal tax on any earnings. This shouldn’t be a deal breaker. The benefits of putting away money in a 529 plan overshadows the possibility that you won’t use the money for college.

There are a few ways to go about giving a contribution to a 529 account. The first is to start a 529 account in your name. You will be the custodian and you can designate your grandchild as the beneficiary. The benefit of doing it this way is control. You can regulate how the money is invested and you can modify the name of the beneficiary at any time.

Think Twice About Early Retirement

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Most workers, even if they like their jobs, get excited at the thought of early retirement. They can swiftly come up with numerous reasons why they would be nuts not to take an early retirement if it was given to them. There are good things about taking an early retirement, but there are a few things you should think carefully about before you choose to end your working career.

The benefits of early retirement are obvious. Not having to work full-time means more time to do things you love more than work. The thought of devoting every day to doing things you love sounds too good to be true. Who would not enjoy hours to garden, read, have lunch/coffee with friends or indulge in a secret hobby. Taking an early retirement brings more time to travel and spend time with friends and loved ones.

You must take time to think with caution all the ways your life will be different due to an early retirement. Think beyond all the pleasures and freedoms you will enjoy and think about your financial situation for a moment. Do you have money in place that will be able to support you if you take early retirement? How will you pay for your home, cars, insurances, and travel desires? It’s much simpler to dream about the kind of life early retirement will bring than it is to pay for that kind of lifestyle. If you have a family, you must also think about the responsibilities you have to take care of and support them.

The foremost thing in deciding about early retirement is not to hurry to the decision. Take your time, consider all your options and understand who you are before making a big life change. If it is right for you, early retirement can bring joy and blessings. However, if you retire too early, you may regret it for the rest of your life.

The Need to Be Flexible in Your Retirement Plan

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When saving for retirement, you’ll want to make a detailed, yet realistic goal. After all, you need to understand how much money you should save. Even if you are young (20s or 30s), having retirement goals are vital, even if later on they may change.

To decide how much money you must save for retirement, there are several important questions that you first must ask yourself:

Where do you want to live? Do you want to relocate?

What type of home or living arrangement do you want?

Are there any hobbies/activities would you like to start?

Do you want to start a small business in retirement?

For these questions, you need to begin thinking about their costs. When doing so, also take into consideration basic living costs, like shelter, food, and transportation. Inflation should be taken into account as well.

A Financial Adviser can get you started

Once you have finished the above steps on how much you need to save for retirement, you will want to increase that amount. You should always save more money than you need. The reason for this is that the simple fact is that there aren’t any guarantees with retirement or an age increase. Your retirement spending plan should take into account flexibility, as there are many occurrences that can come about that call for you to be flexible with your spending.

As stated earlier, inflation should definitely be taken into consideration. The price of goods and services will only keep on rising as you age. Not taking into consideration this rise can make you not have enough retirement money. Online, you can find numerous tools that can help you figure out the approximated inflation rate at your time of retirement. Keep in mind, nonetheless, that these are only approximations. A retirement financial advisor can also give you these numbers, as well as assist you with setting up an accurate retirement plan.

Why Saving for Retirement is Crucial

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Sadly, many folks don’t know the importance of retirement planning. If you are one of these individuals, you need to continue reading on for info that will likely alter your outlook on planning and preparing for your retirement.

The biggest reason you should save for retirement is because it’s your life and livelihood. The amount of money that you put up for retirement will have a huge impact on how your lifestyle. Usually, retirement is the best time to obtain your goals and change your dreams into reality, but you can only do so if you are monetarily ready. If you’re not, you may be anxious about where you will live or where your next meal will come from, as opposed to thinking when is the best time to take a vacation.

Another critical reason you should begin saving for retirement is for your children. Even if you are twenty years old, not married, and no children, you must remember that there may come a time in your life when you have a husband and children. Those who don’t accurately plan and save for retirement put a big burden on their families. As a parent, it is your place to safeguard your children and not cause them to have their own financial difficulties because they have to pay for your retirement expenses.

Saving for retirement can also help guarantee that you’re well cared for. This is vital in terms of health. There a point in everyone’s life when his or her health begins to deteriorate with age. While you may be able to live on your own and care for yourself when you first retirement, there may come a time when you can no longer do so. If that time comes, you should be financially prepared. You should be able to afford the cost of long-term care. The price of long-term care can be high and it should be included in the cost of your retirement. Therefore, you should start saving now for retirement.

How to Find the Best Retirement Plan

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A retirement plan is a necessity if you’re to take pleasure and benefit from the time you’ve decided to retire.

More often than not, folks aren’t bothered about retirement plans. They just pass the time and think that retirement will ultimately take place, with or without retirement plan.

What they don’t realize is that creating a retirement plan is the most critical thing any working individual should deal with. What lies ahead is never too obvious for people who don’t have solid retirement plans.

What Is Retirement Plan?

Retirement plans are types of agreement that give people a nice amount of money by the time they have reached their retirement age. These amounts are enough to recompense their continuous struggle for existence even if they are no longer working or getting the kind of income they used to make before.

In many cases, retirement plans are provided by government, employers, trade unions, or some financial institutions such as insurance companies.

In essence, there are only two major types of retirement plans: defined contribution and defined benefit. These plans are categorized according to how the compensations are resolved.

Defined contribution denotes retirement plans that will give disbursements according to the amount of contributions that the benefactor has paid.

On the other hand, defined benefit refers to a particular type of retirement plan, wherein the disbursements are based on the flat rate as computed from the employee’s membership years and the amount of income received while employed.

Considering these facts, not all retirement plans are considered equal. Therefore, it is best to analyze your status and decide what type of retirement plan will work best for you. You need to think about some important factors to help you with your decision, like lifestyle, dependents, and monthly budget. But one way or another, you should be thinking about your retirement plan now. Don’t wait until retirement to try and deal with this.

How to Get Real Wealth

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Many folks think that the way to true wealth starts with a big money making opportunity. This is just partly true. While a great wealth building opportunity does manifest from time to time, they are few and far between. Many people who get true wealth are those that budget intelligently, work hard, and don’t live as if they were wealthy.

The way to true wealth starts with determination. When you decide to amass wealth, you will be wealthy, even if it doesn’t happen right away. Determination creates will power, hard work, and pinching pennies. However, determination isn’t enough.

The next step on the path to real wealth is having a plan. The possibility of finding that get-rich quick scheme that everyone talks about getting millions from is quite slim. You need to have a plan for a rewarding career path, business, or money-making opportunity. You also need to have a plan for investment. Planning is the best way to get the level of wealth you are seeking.

Real wealth is about budgeting and investing. Don’t spend all the money you earn. Save some until you have enough to invest. This is much easier than it sounds. When you have gotten to a lifestyle that is comfortable but not excessive, stop boosting your lifestyle. Instead, put the money away into a savings account or money market account until you got enough to invest and try to amass real wealth.

You could invest in low risk, high return investments like money market accounts, or you could invest in stocks. Moreover, you could invest in new and up-and-coming companies that seem quite promising. These are sometimes referred to as penny stocks and is one of the top ways to invest your money and accrue real wealth swiftly. Investing the money that you don’t spend is the finest and safest way to get true wealth.