Академический Документы
Профессиональный Документы
Культура Документы
RETIREMENT
Table of Contents
Planning Your Retirement Dream ............................................................................ 2 The Age You Hope to Retire ................................................................................... 2 Figuring Your Retirement Living Costs .................................................................. 2 Saving for Your Retirement ..................................................................................... 2 Experience the Magic of Compound Interest .......................................................... 2 Your Debt Concerns for Retirement ........................................................................ 2 Getting Help and Advice from People In the Know ................................................ 2 Educating Yourself about Formalized Retirement Savings Plans ........................... 2 Summary .................................................................................................................. 2
Note To Reader:
Feel free to share How to Plan for Retirement Report with Friends and Family
leave it all behind and retire in comfort. Perhaps youve fantasized about owning your time, moving to a warmer climate, and chasing a golf ball all morning long. To enjoy a peaceful and comfortable retirement, there are many issues to consider. Saving for your retirement, eliminating your debt, and deciding on the age to quit work are essential to a successful retirement. Estimating your costs to retire, accounting for the instability of Social Security, getting help/advice about retirement, and educating yourself about formalized retirement savings plans are important pieces to the puzzle of planning for a successful retirement.
L ike most working people, you probably dream of the day when youre able to
Where will you be living in your retirement? The cost of living in the location of your residence largely determines what kind of life youll have.
Think about locales you find exciting, fun, or relaxing. Perhaps you have ideas about returning to the town/city where you grew up
countries such as Panama, Costa Rica, Belize, and Mexico due to a low cost of living, pleasant weather, picturesque scenery, amenities, plenty of English-speaking ex-patriot communities, excellent health care in some areas, and more.
Additionally, where you decide to settle down for retirement will largely
1. What will you do in your retirement? Another essential consideration in planning for your retirement is evaluating the types of activities you plan.
Have you dreamed of golfing three times a week?
Maybe you want to spend more time with friends, see the opera, or go
dancing often.
If youve loved mountains all your life, maybe you hope to retire where you
can see beautiful mountain vistas. Perhaps take a short hike when mood strikes you.
Avid readers and lovers of intellectual pursuits might consider being close
clearer idea where you want to live. 2. Will you work in your retirement? Consider whether youre interested in continuing to work, working part-time, or quitting your job without looking back.
For some potential retirees, the idea of giving up their careers is
increasingly uncomfortable as they approach their golden years. 3. Maybe restructuring your life would be a better way to go. Restructuring involves a gradual lessening of the hours you work as opposed to completely quitting your job. Here are some possible options:
At age 65, Sally didnt want to work 40 hours weekly anymore, but she still
enjoyed working. Sally decided to step down her work hours to 75% time 30 hours per week. After 18 months, Sally again reduced her work to 20 hours weekly for the next 3 years. At that time, Sally was ready to stop working completely.
Maybe you would like to resign your position and start up your own
exploring how you feel about your work, whether you want to do some work in retirement, or whether you can walk away from your job and just enjoy life. At any rate, evaluate your feelings about where you want to live, how you want to spend your time, and whether you want to continue working at some level. The closer you get to your retirement, the more insight youll have into what you want to do about that phase of your life. As in all successful ventures, the foundation of a good retirement is planning. ~ Earl Nightingale
Will my Retirement Money last a Lifetime? As seen live on CBS TV Click Here!
retire, how will you pay for it? During the years before you retire, will you be able to save the extra amount monthly youll need to pay for health insurance? If not, you might want to delay your retirement until youre 65 so you can receive Medicare health care coverage.
Social Security compensation will not be available as a possible
padding for your funds if you retire before the minimum retirement age of 62. (See Figuring Your Retirement Costs section.)
Another special circumstance to consider if you decide to retire before full
retirement age is that youll extend the number of years youll live without earning any money. Therefore, it will be necessary to save even more money during the years you do work.
2. If you wait until your full retirement age, 65, 66, or 67 and youve paid into the Social Security system for the minimum number of years, you may receive monthly Social Security payments. The following points assume Social Security remains stable enough to pay out to qualified recipients when you retire.
Although most would agree one cannot live comfortably on Social Security
benefits alone, those funds will still beef up your retirement income.
Also, according to the U.S. Social Security guidelines, you can retire as
Social Security, the higher your monthly allotted amount will be.
An added benefit to waiting until 65 or 66 to retire is that your own
retirement savings will have an opportunity to grow during your additional years of work. Click Here Now and Get Your Free Retirement Calculator
3. If youre planning an active retirement including a lot of travel, you might want to retire at a younger age, say 55 or 60. In order to retire at this age, you have to take into consideration the amount of money that will be lost by drawing from a retirement plan early. 4. Consider maintaining a long-term care insurance policy in case you develop a debilitating illness or condition during your retirement. These policies cover nursing homes past the short time allowed by Medicare.
8
The age you select to retire is important: the longer you wait to retire, the more your savings will accrue and the larger your Social Security payments will be. However, if your goal is to enjoy an active lifestyle, your health and age will become a large determining factor. Retirement itself is the best gift. No gold watch could ever top it. ~Abigail Charleson
like.
Take into account that you wont need clothes for work so your clothing
Fuel needs for your vehicle or dollars to take public transportation will
lessen since you wont be traveling to and from work five days a week.
Keep in mind that your home may be paid off by then or you may be living
in a different home.
Depending on your age now, add another 25% to 50% to the total to allow
for increases in living expenses by the time you reach retirement age. This final figure represents your monthly retirement costs.
To project the total amount of funds youll need during retirement, use your
final monthly figure and multiply it by 12 (months) and then by the number of years you hope to live in retirement. 2. Can you count on Social Security monies during your retirement? As mentioned earlier, most people require more money than the amount that Social Security provides.
According to the latest statistics, 10,000 baby boomers a day are turning 65
out of money.
Its difficult to pinpoint exactly when the system will be unable to cover all
the recipients that qualify to receive Social Security benefits. The latest estimate of when Social Security will deplete is 2040, according to MSNBC.
10
Whatever the case, the safest way to approach your retirement is to assume
your retirement and theres Social Security money there for you when the time comes, consider it a welcome and pleasant addition to your alreadyaccumulated retirement funds. Click Here Now and Get Your Free Retirement Calculator
Estimating possible costs in your retirement and considering the impact of Social Security are wise things to do. Keep your estimated costs in a folder and re-figure them every five years or so. Thinking proactively will truly pay off when it comes to planning for your retirement. Life begins at retirement. ~Author Unknown
mental block that you dont have to start saving yet. Regardless of your age, save, save, save and do it now!
Even if you bank just $20 a week for the first couple of years, establishing
the savings habit is the most salient feature of planning for your golden years.
If you havent yet started saving for your retirement, strengthen your
consistently placing money in the bank for your retirement, youll be amazed at the amount of money you can accumulate for your retirement. 2. Make every effort to increase your retirement savings. Another facet to planning for retirement is gradually increasing the amount you save. This
12
save based on the amount of money you earn. In other words, when you get a pay raise or your net pay totals more than usual, place half or more of the new amount into the bank, along with the amount you normally save.
Another way to bump up your savings is: after you pay off other bills, apply
those dollars toward your retirement. Consider this example: A year ago, Randy purchased a couple of rooms of furniture. The furniture store was running a deal where he could take twelve months to pay off the furniture interest-free. Randys total payment was $300 per month.
Upon paying the final furniture payment, Randy will have an extra $300
monthly. Now, Randy can bank that $300 monthly into his retirement savings.
Because regular savings and money market accounts are established
using money youve already paid taxes on, when you withdraw from those accounts, the money is tax-free. 3. Never doubt the power of consistently saving money, no matter how small you might think it is. Interest income will generate even more money for your future. If your finances are already strained, think about specific ways to bring in money now to save for your future. Look to the following ideas for inspiration:
Buy and sell items on eBay. Believe it or not, people are making big money
engaging in this type of buy and re-sell activity. Whatever youre interested in - small collectible figurines, tools, purses, or shoes - you may just have
enough knowledge to earn some extra money buying and selling for your golden years.
If youve always wanted to start your own flea market business, why not
do it now? You might enjoy setting up your wares at local flea markets to make additional money.
Buy secondhand instead of new to stretch your dollars. Bank the difference
between what you would have paid for something new and what you did pay for something secondhand.
Some experts report now is the time to buy silver and gold and hold onto it.
If you decide to engage in such speculation, educate yourself about the products youre considering.
Think creatively about conserving your dollars. If you have a yard, plant a
retirement funds.
If you love to write, consider taking part in publishing your articles or
books on websites where they can be sold for use on reading devices such as the Kindle or Barnes and Nobles Nook. Even Amazon has a self14
publishing department where writers can publish their books to be sold online.
Starting Age 21
# of Years 10
Interest Rate 4%
$50
31 41 51 55
10 10 4 10
4% 4% 4% 4%
Scenario B: Youre 55 and youve accumulated $400,000 through your savings, stocks, bonds, and other investments. Now, you want to invest it in accounts that will pay you 4% interest. Youll continue to add $6,000 yearly to the principal. At age 60, just 5 years later, youll have $520,459. As retirement looms, you decide to increase your payments to $12,000 yearly. The money in the account continues to earn 4%. Five years later when youre 65, youll have $700,813.00, including $210,813 of interest compounded over those 10 years.
Starting Age 55 60
# of Years 5 5
Interest Rate 4% 4%
$500 $1,000
16
Get started early saving for your retirement. Then, increase your savings at every possible opportunity. If youve already started saving for your retirement, pat yourself on the back as youll accumulate extra dollars over the years thanks to accruing interest. When times are tough, think creatively to find ways to earn money for retirement. The challenge of retirement is how to spend time without spending money. ~Author Unknown
of your debt. 2. Eliminate your debt. Endeavor to pay off all your creditors. Approach this goal with optimism and confidence.
Regardless of how close you are to retirement, its wise to owe as few
creditors as possible.
After all, establishing wise financial habits now will enable you in the long
18
Plus, the dollars you save in not paying finance charges every month can
largely fund your retirement, should you decide to bank it for yourself instead.
Train yourself to live on your earnings, rather than engaging in overflow
spending (spending more than you earn). 3. Strive to pay off your home mortgage before you retire. The advantages here are obvious: no house payment means you wont have to pay out the money monthly to live in your home.
Your property taxes, homeowners insurance, and cost of upkeep on the
home will be your main house costs during retirement if you pay off your mortgage beforehand.
If youre married and cant foresee paying off your mortgage before
retirement, it might be wise to obtain and maintain a life insurance policy on each of you. The goal is to have a policy to provide the surviving spouse enough money to pay off the mortgage if the other spouse passes away. Make plans for a debt-free retirement so you can live without worry in your golden years. Discovering strategies now to eliminate your debt will be one more step toward achieving the fun and relaxing retirement you seek. Im not just retiring from the company; Im also retiring from my stress, my commute, my alarm clock, and my iron. ~Hartman Jule
Try to get as much information as you can from friends and family about their experiences planning for and reaching retirement. A trusted tax professional and financial planner or broker can provide you with much-needed professional insights about how to achieve your money management goals. 1. Gather information about retiring by interviewing friends and family. Talk with people you know who have recently retired.
Inquire if you can informally interview them about how they prepared for
their retirement. Can they offer you any tips on successful retirement?
Ask if theres anything they didnt do to prepare, that they would suggest
you do.
2. Establish a relationship with a tax professional. If you already have a relationship with a tax accountant, take advantage of it.
Ask him what he would recommend you do to prepare for your retirement. A tax accountant you know and trust can be one of the best resources you
have to guide your financial planning. 3. Hire a financial planner or stockbroker to help you prepare for your retirement. If you dont already have a financial planner or stockbroker, consider looking for such a professional to aid you in your quest to build your retirement dollars.
20
you, check his credentials online or request them from his office to review in advance.
Look for stockbrokers by firm and then by name at the website of the
any complaints lodged against him or if hes ever been charged with crimes related to his work.
Use caution when making decisions about placing money into stocks and
bonds.
Particularly in a volatile economy, use balance and great deliberation in
Its nice to get out of the rat race, but you have to learn to get along with less cheese. ~ Gene Perret
free. You pay no taxes on this money until you withdraw it, which will hopefully be many years later when youre in a lower tax bracket.
Many companies will contribute an additional percentage of your own
earnings. If you can swing it financially, max out a 401(K) savings plan as
22
you are basically receiving free money from your employer for your retirement years. 2. Look in to traditional Individual Retirement Accounts (IRAs) to fund your retirement years. IRAs are great vehicles for retirement savings, as you dont pay taxes on funds deposited into the account. You will pay taxes at the time the money is withdrawn.
Another type of IRA to consider is the Roth IRA. A Roth IRA allows
you to save a certain percentage of your earnings, as in the traditional IRA. Although you do have to pay taxes on any monies you invest in a Roth IRA, the good news is that when you withdraw the funds, they are taxfree. Set a goal to educate yourself about various ways to save for your retirement. Meet with your Human Resources representatives to inquire about types of retirement savings opportunities available for you at work. You may also want to find out the difference between 401(K) plans, Individual Retirement Accounts (IRA), and Roth IRAs to determine your best options to save for your future.
Dont simply retire from something; have something to retire to. ~ Harry Emerson Fosdick
Summary
No matter what your age, with adequate preparation, your retirement can give you the opportunity to enjoy the life youve always wanted. If you havent yet begun retirement planning, its time to begin your journey! Its never too early to plan for the future that you so richly deserve. Waiting until your retirement party is too late to start planning your retirement portfolio. ~ Richard Wastcoat in the Telegraph
Note To Reader: Feel free to share How to Plan for Retirement Report with Friends and Family
24