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Dealing With Mortgage Debts in Retirement

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Dealing With Mortgage Debts in Retirement

Are you a pre-retiree? Perhaps you’re among those expecting to carry their mortgage payments into retirement. If so, you must be aware of what the advantages and disadvantages are. While you may enjoy tax benefits when you hold a home loan, keep in mind that they may run low upon retirement because the interest portion of the payment goes down every month. 

Are you wondering how outstanding mortgage payments may affect you upon retiring? Here are some things to consider:

  • Tax Benefits. Everyone’s familiar with 30-year mortgage terms. This common type of home loan generally includes principal and interest payments. While the former will proceed to your actual loan amount, the latter will go toward the rate your lender charged you so you can take out the loan. During the early years, most of your payment will go to interest. Over time, though, a larger share will go toward your principal.
  • Deduction in Mortgage Interest.  Many homeowners get to enjoy mortgage interest deductions during tax time. It helps reduce the burden from federal income tax, as the amount you need to pay in mortgage interest is deducted from the gross income. However, the further along you’re toward paying down the mortgage, the less interest you’d be paying. This essentially diminishes the benefit of the deduction. 
  • Deduction in Real Estate Tax. It’s not unusual for mortgage fees to include charges for real estate taxes as well as insurance. An escrow account holds part of your payment to cover these particular items. Your real estate taxes (state and local) may be deducted from your federal income taxes. 

Potential Issues

Holding a mortgage may be great due to its tax benefits. However, that value can nosedive upon your retirement. Here’s how:

  • There’s a chance that you’d be paying off far less interest on your home loan than earlier in life. This can result in a significantly smaller mortgage interest deduction.
  • It’s also highly probable that your income during retirement will not be as much as what you’re earning when you’re still working. If that’s the case, you can expect your income taxes to be lower. Consequently, your mortgage interest, as well as deductions for the real estate tax, may only have little to no value when tax time rolls around.
  • Do you intend to pay your monthly mortgage payments from your retirement account? Whether your source is from IRA or 401(k), there’s a risk that you’d end up with a much higher tax burden. If you have traditional accounts, you’d pay taxes on them as well as your gains as you start your withdrawals. Your income tax rate may be lower during your retirement, though, compared to your working years. 

Besides, not only will you be extracting funds from these accounts to pay off your mortgage debt, but you will also be plucking out money to live on. When your income from these retirement accounts and half of your Social Security benefit is combined, there’s a chance that you’d exceed the income tax threshold. This can result in your Social Security benefit becoming taxable. 

What Can You Do?

If you’d like to keep your home and are halfway through paying off your mortgage debt, it would be advisable to stay put. You’ll enjoy a delightful dip in your monthly expenses once your mortgage payments are cleared off. Of course, you’d still have to spend for your taxes, insurance, and anything required for the upkeep of your property. But if you can find a way to swing the cost, living free of mortgage debt is undoubtedly a nice place to be. 

What if you still have a long way to go before you can completely pay off your mortgage? Well, you certainly can continue to enjoy the tax deductions. However, if you have lower federal income taxes and the benefit of the deduction isn’t really that great, consider selling your home instead. If that’s not an option for you, perhaps you can bring in a renter. This strategy can help cover the mortgage payments and upkeep. 

You should also use online calculators to help you make mortgage decisions. You can use free mortgage amortizing calculators to see how the interest payments will decline over time. You can also use more detailed financial planning software, such as the WealthTrace Planner, to run mortgage scenarios. Using planning software you can figure out if it makes sense to have a 15 year mortgage vs. a 30 year mortgage. You can also calculate if it makes sense to pay the mortgage off early or hold onto it for the tax benefits.

Reverse Mortgage

Do you own your house outright? Perhaps you’re already close to paying your mortgage debt completely. If so, you may put your home’s equity to good use. This way, you can supplement your retirement income. This financial agreement, also known as a reverse mortgage, will allow you to borrow against your home. There are several options to receive payments. You can get them as a single sum, as a monthly income, as a line of credit, or some combination of these. The payments will depend on the value of your home, which will be determined by the lender. 

Of course, you don’t have to pay the loan again. There are a couple of conditions to become eligible, though. You have to be 62 years old or older and need to live there. This type of agreement is not a simple decision to make. In fact, it can be risky for some people. It would be best to find out how this works and what other options are available before you make a move. No matter what you choose, it always pays to proceed with caution and consult with a tax professional to make sure you’re making the right financial decisions.  

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Lifestyle

Best Pranks to Try at Home

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Best Pranks to Try at Home

An incredible prank can be planned in the comfort of one’s own home. You have access to everything from your victim’s room to their favorite goods and even their sleeping body, allowing you to pull a fantastic prank on your classmates and coworkers that you could only dream about. 

The disadvantage of home-grown pranks, on the other hand, is the same intimacy that provides such an advantage. You have to live with your family, and they are aware of your sleeping arrangements. Avoid playing practical jokes unless you are prepared to face the repercussions.

Remember to use discount codes for any online purchases you make if you need more materials for your pranks!  

Nicolas Cage Toilet Seat

Nicolas Cage memes are simple to come by these days, thanks to the internet’s abundance of them. Known for films such as Moonstruck, Leaving Las Vegas, and Face/Off, the Academy Award-winning actor has been a popular target for Internet trolls due to his frightening gaze and occasional overacting. 

Print a picture of him at his most, well, exuberant — and station him in the restroom to greet everyone who needs to go to the washroom! 

No Suds?!

Certain things in life must be anticipated. Imagine that you are in the shower, and your soap is creating a lather before your eyes. 

When you cover a bar of soap with transparent nail polish, on the other hand, your victim can scrub with this covered bar for hours without seeing a single bubble appear on the surface. This is one of the most entertaining pranks to play at home because of the sheer amount of uncertainty it may cause. In order to ensure that no one is late for work or school, make sure that there is a spare bar of soap.

Toilet Paper Prank

What could be more annoying than spinning the toilet paper roll constantly in search of its end? 

Adding a little hairspray to the toilet paper roll will make it even more difficult for them to complete the exercise before losing their cool. The toilet paper will be able to roll and roll, but they won’t be able to get the loose edge free before losing their temper.

Wakey wakey! 

Adjusting the clocks forward a few hours after your victim has gone asleep can cause them to wake up a few hours sooner. 

You can make an attempt to deceive a single person or an entire family at the same time. Keep in mind that the victims may get extremely irritated because of the interrupted sleep, so proceed with caution if you decide to attempt this prank on them.

Wait, who’s that? 

Change the images in the frames in your house or the photos on the staff gallery wall at your place of work to reflect your personal style. 

Substitute images of celebrities, politicians, and historical figures with the portraits of well-known people. Is it possible that you were not aware that Dwayne “The Rock” Johnson was a distant relative of your father?

Insect on the Lamp Prank

Decorate your home with paper cutouts of cockroach-like insects that you may place under the lampshades. In actuality, there is no insect under the bulb, but the shadow that is formed will give the idea that there is. Installing a bug or two in a ceiling light cover or a lampshade will allow you to exit the room without disturbing anybody else.

Anyone who happens to come upon this will surely freak out.

The Uncontrollable Remote

Want to toy with someone’s beloved television or computer without causing them permanent harm? Sensors, sensors, and even more sensors, my sweetheart. 

Cover the laser sensor on the underside of their remote or mouse with thin adhesive tape, which will (for the time being) prevent the signal from reaching their device. Put it out in plain sight and wait for the uproar to begin. If the remote is black and you don’t have any black tape on hand, you may color it in with a sharpie.

Misspelling Macro

Never, ever ask a coworker to unlock your iPhone for you because they will make you appear to be the worst speller on the planet when you try to type a text or email on your phone. 

Go to Settings, select General, then Keyboard. You can add a new shortcut. Get creative! You can try to replace the words ‘are’ with ‘our’ or ‘laugh’ with ‘loaf’. The list of conceivable sins is nearly limitless.  

Make this prank a reality against your most detail-oriented sibling.  *evil laugh*

Prank Call

Prank calling has been one of the most famous pranks that ever existed. Be sure not to miss out on the fun and try it out. 

Ownage Pranks’ prank call app can help you prank your family! There are over 100 pre-recorded pranks for various situations in this app. It encrypts your personal information so that only the people on the other end of the phone would be completely horrified.

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Lifestyle

Creating High-Quality Photo Prints: 5 Tips to Help You

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Creating High-Quality Photo Prints

Everyone wants to take a photo print with beautiful colors but to have a good print too. Why do some of your images turn blurry after they have been printed? As you wonder, remember that this can be so frustrating when it happens. 

If you don’t want to be a victim of this problem, learn seven amazing ways of how to have a quality photo print on canvas.

1. Choosing the Right Printing Paper

Any paper does not just create a photo print. Papers are different, and they have different qualities as well. For example, plain paper absorbs ink. Do you know what that means? It washes out the colors and destroys the unique details of the print, which reduces the sharpness of the print. Recommended printing papers are Matte paper, Luster paper, Glossy paper, and Metallic paper. The right printing paper is very important when printing.

2. Choose the Right Print Size

Apart from choosing the right printing paper, another thing should be considered in choosing the right print size. When you instruct your PC to print a photo of any size, it will comply. To be bright and sharp, you need enough pixels in your image file at the desired print size for the printed-out photo. Many factors are responsible for good print quality. You need at least 200 dots per inch (dpi) for acceptable image quality and 300 dpi at least for perfect print quality. 

3 Calibrate Your Monitor

Images are made up of so many elements, including colors. Colors can make a photo print look attractive as well as awkward if not properly applied. Often, the colors of images look great on your monitor but turn out to be different when printed out. 

It would be best to use monitor calibration software to regulate the colors on your monitor screen to your prints. There are lots of monitor calibration software that are free. Go for them and use them to adjust colors to look good on prints.

4. Verify the Print Settings

When all is set and you’re ready to print a photo, check all the necessary settings properly. You might think that’s conspicuous, but you’d be surprised how often you get cruddy prints because some of these settings have loops.

Also, ensure that the ink won’t absorb properly, and your photo won’t look good. What’s the right paper type and ink typeset in the print settings? Be sure those settings match exactly what’s on the Box. It’s not so bad if you set the printer for high-end paper and good ink when printing on clear paper, but you don’t want the printer to think you’re using plain paper settings when outputting to high-quality photo paper.

5. Maintain Your Printer

Take good care of your printer. Inkjet printers have choosy print nozzles that occasionally hamper and need to be cleaned. At least, you should run your printer’s print head cleaning. Printing once a week is also a good idea. It keeps the nozzle from gumming up, even if it’s intended just for photos. 

Conclusion

Conclusively, following these steps will undoubtedly lead you to your desired end point. Don’t forget that quality is as important as all other factors when you intend to create amazing canvas prints. 

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Lifestyle

How To Create the Ultimate Cat-friendly Room

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How To Create the Ultimate Cat-friendly Room

Adopting a cat can be incredibly fulfilling and a lot of fun, but it’s important to be prepared for all of your cat’s needs. That includes making sure that your space is safe for your cat, and that they have plenty of options for recreation and entertainment, even when you aren’t at home.

Anyone who keeps plants or a garden will need to be cautious that all of their plants are pet safe, since many houseplants and flowers can be toxic. If you have a cat you’re looking to splurge on or you’re considering adopting, keep reading to learn more about how to create the ultimate cat-friendly room in your house.

How can you keep your home cat-safe?

The ideal time to take steps to keep your house safe for your cat before you adopt. Inspecting your home to identify anything harmful that may be within your cat’s reach is a good first step. Trash bins should have lids that are firmly locked to prevent your pet from getting into them. Keep in mind that cats are famously good climbers, so putting things on high shelves may not be enough to keep your cat away.

Furniture damage from scratching can also be a problem, which is why it’s important to provide your cat with other ways to satisfy the urge. A scratching post is one option, though some companies even offer rugs that are cat-proof. Plastic covers can also be helpful if a particular chair or couch is a common target, though your goal should be to eliminate destructive behaviors.

If you like keeping houseplants in your home, it’s essential that you take the time to learn which plants and flowers are toxic for cats. Luckily, a quick search for “house plants safe for cats” will show that there are a number of options available for anyone with a furry friend and a green thumb. Some options for cat owners include a butterfly palm, echeveria rose succulent, or a Boston fern.

What toys and supplies should you buy for your cat?

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Every cat is different, so you may need to engage in some trial and error until you find the right supplies for your pet. However, there are a number of essentials that almost every cat owner has on hand. You’ll need basics like food and water dishes, a litter box, and a cat carrier. You will also want to buy a collar that has all your cat’s information on it. Your vet is likely to be able to provide recommendations for what type of cat food would be best, though you may have to adjust based on your pet’s dietary needs.

Finding toys your pet enjoys is important too, as your cat will need plenty of stimulation and opportunities to exercise if you want them to stay healthy and happy. Cat beds and cat homes are also a worthwhile investment, as having a comfortable place to relax is an important part of helping your furry friend feel comfortable in their new environment. You may want to look into Cardboard Cat Homes if your pet likes to have their own space to relax. A cardboard house offers easy assembly and fits easily into almost any corner of your home.

Keeping a cat safe, healthy, and entertained can be a lot of work. Luckily, there are a number of resources available both on and offline that can help you with your cat. You’ll want to ensure your entire house is pet-friendly, which includes getting rid of any toxic houseplants and addressing hazards that are within your cat’s reach. For many owners, it’s worthwhile to set aside a room to turn into a recreational space for their cats, with plenty of toys and a place for them to rest. There’s no doubt your cat will be thrilled if you put in the effort to create the perfect space for your pet to enjoy as they start their new life at home with you.

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