Let’s Talk About Retirement

Brenda Cyr asked:


When it comes to preparing for your retirement, most people do not know where to begin, and so they put it off. Once they realize that retirement is on the horizon, they panic and commence looking for retirement planning tools that will make a plan for them. It is never too early, or too late, to start planning for your retirement, but the sooner you start, the less stress you will have.

A few people employ high-priced firms to prepare a plan for them, and other people might purchase complex software package to assist them to develop a plan. While there is a place for this type of assistance for retirement planning, there are also free tools that you are able to use to get started. Here are three free tools that will aid you in planning for your retirement.

1.Pen and Paper- This is the easiest tool you’ll be able to use, and the one that will create the greatest difference in planning for your retirement. Make a list of your income and expenses, and keeping track of where your money goes comprises the first step of determining how much you will be able to save for retirement. If you create this list, and discover that you have nothing left when you deduct your expenses from your take home income, then it is time to devote some serious thought to your budget. See if you can find several areas to cut back to save some money to invest into your retirement fund.

2.Your Workplace- Most people have forgotten the speech they received from the human resources department when they were hired. The one about benefits, pensions, savings plans and all of that. This is a good time to either pull out your employee handbook, or make an appointment to meet with somebody in the personnel department. You will discover loads of information about what is provided through your work, and how you can become eligible to obtain the maximum benefits once you retire. Many places also offer local investment firms that assist their employees with decisions and provide help for retirement planning. This is like having the best investment advice free.

3.The Internet- There are numerous retirement planning tools available free on the World Wide Web. The AARP internet site provides tools to help you work out how much your retirement plans will cost in real world dollars. CNN Money has free retirement planning tools that can assist you work out investments, income, savings, and retirement goals. There are also several investment and banking web sites that offer free help and tools to help you construct a solid retirement program.

These three tips will help you to begin planning your retirement. Allow some time every week to work on ways to step-up your retirement savings, and to dream about the kind of retirement you would like to have. Use these free retirement planning tools to help you increase your retirement savings so you will be able to have the stress-free retirement you deserve.



MARYLOU

Cecilia Valenzuela asked:


If you have heard that Arizona was a popular state to retire in, you are most certainly correct. Arizona ranks high when it comes to retirement. In fact, Arizona was actually the first state where retirement community living first got its start.

Did you know that it was Del Webb (now considered Pulte Homes) who started the idea of a retirement community?

According to Del Web, they opened their very first retirement community on New Years Day, 1960, in a suburb of Phoenix, known as Sun City, Arizona. The positive response was more than overwhelming. The first retirement community in Arizona paved the way for retired living in the United States. Ever since that day, retirement communities continue to pop up everywhere.

Del Webb is actually now a part of Pulte Homes and are not just known to Arizona, but also in 15 additional states. In Arizona, Del Webb/Pulte has certainly made a name for themselves and are very well known here and are one of the very well known and reputable home builders of Arizona retirement communities.

Whether you prefer the big cities or quieter communities, it really doesn’t matter, because you can certainly find both types of Arizona Retirement Communities here.

Baby-boomers, or snowbirds, as they are sometimes referred to, have flocked to the Phoenix metropolitan area for many years. It should not come as a surprise why this area has been considered a prime retirement choice. There are so many reasons why this area is popular among many. First of all, you have the natural beauty of the Sonoran Desert sun along with well over 300 days a year of sunshine.

Known for its gorgeous sunsets and the many recreational activities, golf is probably one of the most popular reasons that retirees make Arizona their home. There are literally hundreds of courses for the golf fan along with so many other popular activities such as tennis, various sightseeing tours, Native American culture and, of course the Grand Canyon to explore.

Retirees certainly appreciate the fact that they are conveniently close to so many things in Arizona. If the outdoors is what you are looking for, Arizona can certainly provide you an endless list of lakes and rivers which attracts so many anglers to the desert southwest. In addition, you will find just as many mountains that make up Arizona and make it the beautiful state that it is. Even Las Vegas is not that far away from Arizona!

Retirement community living can be found throughout the state and not just in Phoenix. Many parts of the “valley of the sun,” as the Phoenix area is ofte called, offers retired living at its best. It just depends on where you would like to live.

Some people prefer Scottsdale over Phoenix, or maybe Tucson. Some people prefer Gold Canyon, a city located about 35 minutes east of Phoenix, which offers many amenities in a quiet atmosphere including enough wildlife to last a lifetime. Some others prefer Flagstaff or the White Mountains, both of which are considerably cooler in the summer months.

Most of these retirement communities that you will find in the desert southwest of Arizona provide such amenities that most active older adults are seeking, such as tennis courts, golf, clubhouses, recreation and fitness centers, as well as organized and regular activities within their specific retired community.

While there may be other reasons not listed here, most people will agree that one of the key reasons why people find their way to retired housing communities in Arizona, is because of the active adult choices they have to choose from. The choices along with the enticing climate, make Arizona retirement communities their first selection of 55 plus areas.

Despite Arizona being a very popular state to retire in, Miami, Florida actually has a higher percentage rate of people living there than Arizona. In fact, according to the Arizona Republic, Phoenix is home to only 12% of the population that is over age 65, compared to 17% in Miami, Florida.

Would you like to know what city is considered to be the most recomended city to retire in? Have you heard of Prescott, Arizona?

Prescott, Arizona has a small town feel to it, which many people prefer. It is located in the cool ponderosa pines in Northern Arizona and is known to many here in Arizona, as the “Mile High” city. Conveniently located 90 miles Northwest of Phoenix, Prescott offers four very mild seasons to both the visitors and residents all-year round.

Prescott has more than 6 golf courses, which is pleasing to many. Prescott is also home to the Prescott National Forest. If you like hiking, you will have well over 450 miles worth of trails to enjoy these gorgeous (and good smelling) ponderosa pines.

Looking for more reasons to choose Arizona for your retirement community? How about healthcare? The healthcare is excellent in Arizona. There are many well known heart hospitals as well as other hospitals, the famous Mayo-Clinic, and a limitless list of clinics, for your healthcare needs.



CHRYSTAL

Tracey Anne asked:


Most of us are familiar with these statistics…

Out of 100 people who starts working at the age of 25, by the age 65:

* 1% are wealthy * 4% have adequate capital stowed away for retirement * 3% are still working * 63% are dependant on Social Security, friends, relatives or charity. * 29% are dead.

More Statistics on “The GOLDEN Years”

Retirement by the Governments own statistics:

* The average savings of a 50 year old in the U.S. is $2500. * 32 Million Americans are currently threatened with bankruptcy. * More than 1,000,000 [1 Million] filed for bankruptcy in the year 2000.

More Statistics…

Out of every 100 people who reach the retirement age of 65:

* 62 retire with less than $25,000 in assets and depend on Social Security or family for their retirement.

* Another 35 retire with less than $100,000, have some form of pension in addition to Social Security and are just making it in their retirement. If either Social Security or their pension went away they would have a very difficult time surviving.

* 2 of the 3 remaining retirees have an adequate pension or retirement account. They have assets of between $100,000 and $750,000. They do appreciate having the additional money they receive from Social Security, but could survive without it.

* The last of these 100 retirees, is the only one who is financially independent. This retiree has assets approaching or exceeding $1,000,000. They do not need the income from Social Security at all.

Which group above will you be in when it is time for you to retire?

Still More Statistics…

“According to recent Governmental statistics, most people are very concerned about their financial security in retirement. Over 70% believe they won’t have enough money put away for retirement. Of those between the ages of 30 and 54, almost 80% feel this way about their future.

One of the factors is the uncertainty of Social Security. In the mid 1970’s, 2/3 of the people surveyed said they were quite confident Social Security would be there for them when they retired.

In 1980, of those surveyed, 2/3 commented that they were not confident that Social Security would be there to support them in retirement. They felt that if Social Security was still a functioning service, it probably would not be paying an adequate amount to cover a reasonable standard of living.

So if this is the case… why aren’t people socking away hoards of money so they are not part of the statistics? Well, it seems that saving for retirement is a difficult task to master for the average person.

Some have difficulty saving on a systematic basis. With others, it’s often the case of having good intentions but very poor follow-through. Still others, it’s that they make poor selections with the saving and investment vehicles they choose.”

Clearly, the working-class scenario of toiling away building someone else’s empire for forty years, trying to accumulate wealth (money) so one can retire comfortably, is NOT working. Most people would like to retire with dignity. Wouldn’t you?

Have we shown you enough? Well, here’s a few more facts…

“The rising stock market and escalating property values, while adding general prosperity, hide the brutal fact that for many Baby Boomers-who are now turning 50, retirement may not be a pretty picture.

Over the next 20 years, 76 million of us born between 1946 and 1964 will hit 50. For most, that means facing up to the harsh questions of how, or even if, they will be able to afford to retire.

With meaty employment pension plans gone the way of ancient history, and Social Security increasingly becoming an uncertainty, the lifestyle of retirees is no longer leisure, golfing, fishing and travel. In fact, the lifestyle for many retirees may be continued work and “cans of Spam . . . and not Caviar and Travels.”

The latest Census Statistics show that only 1 out of every 10 Americans today, is financially prepared to retire when they reach the age of 65.

What about the Current Economic Situation?

As we know, the economy is teetering on recession, companies continue to lay off in great numbers. And, you may as well kiss true job security good-bye. It doesn’t seem to exist anymore.

And although you may be one of those that make it to retirement and manage to hang on to your job, according to the Bureau of Labor Statistics, at 65 only 5% have enough money to retire on.

And since the standard route of working a traditional job has failed for 95% of all Americans. Shouldn’t you be seriously RE-evaluating the traditional career job employment scenario and if it is going to get you to and take you through retirement financially sound?

Here’s the real kicker… You and most of the people you know are going to work for at least 30 to 40 years …. at jobs you ****… with bosses you ****… with commutes you ****… with hours that you ****. What a life - failing while you are miserable most of the time. Do you want to do this for the next 40 years?

So What Can You Do About It?

Well, one pro-active move you can make is to avoid common and costly retirement planning mistakes that could seriously jeopardize your future and the lifestyle you dream of for your retirement.

Mistake Number 1: Procrastination Mistake Number 2: Not realizing that you’ll need a specific amount of money to sustain you each month when retired. Mistake Number 3: Relying on the belief you’ll be able to draw FULL Social Security benefits. Mistake Number 4: The under-estimation of your medical costs if you are not in good health. Mistake Number 5: Not setting up your long-term-care insurance early. Mistake number 6: Making the assumption that you can retire early. Mistake Number 7: Getting into the false hope that in retirement you will be in retirement-mode. Mistake Number 8: Failing to seek expert financial and retirement guidance.

Start focusing on these commonly made mistakes and make sure you are not falling into the traps they can create. If you recognize some of them in your portfolio, get them fixed so you are on the right track. You don’t want any of them to affect your retirement planning and live-on income.

Start a pro-active plan NOW! If you want to be able to live financially stable now and into your “golden” retirement years, you need to make changes in the strategies you’re presently using. One other pro-active move you can make is to join the home-business boom. It is the next big trend. CNN reports that a new home based business is started in the United States every 11 seconds.

Why? Well because a new home based business offers a low start-up investment compared to a brick and mortar, or franchise business, low monthly overhead, and you can start part-time while still employed, and create time leverage, residual income, and tax benefits for yourself. Tax expert Sanford Botkin says that a home business can result in tax savings of $3,000 to $9,000 per year.

Follow this trend, however do proceed wisely - you don’t want to get into a situation where you are wasting time or money out of your pocket.

Make sure you do your research. You are looking for an income generating system that allows you to build substantial supplemental income, PASSIVELY; where you don’t have to give up your life, or your spare time to run it successfully.

You don’t want to be adding a lot of additional work hours to your day, otherwise, you might as well start commuting to a second job site.

Start now… remember, procrastination is mistake #1… That way when you do decide to retire, unlike the income earned at a job, which stops when the work stops, the residual income from your home based business will continue to pay you long after the work is completed. Leaving you to enjoy your retirement free and to the fullest.



JEANIE

Lucesco asked:


Buying a home, even with the downturn in the market, is still the most successful way to invest money. But I don’t make enough money to both save for much of a down payment and still put much money aside for retirement. So how do I choose where to put what money I don’t need to live on?

IMOGENE

Kristen A asked:


We are married in our 40’s with a baby. I am stay at home mom and my husband was laid off. We have two homes and no debt aside from mortgages. Should we use our home equity or cash in retirement to make ends meet until we have another income?

TERRA

Miodrag Trajkovic asked:


Approximately one third of your life will be spent in retirement. It is important to plan ahead to be able to provide for yourself and enjoy this time of your life. Retirement is never too difficult to handle. However, many still have the misconception that retirement is a burden and a very difficult situation.

Before you enter your retirement age, it is best that you plan. Starting your retirement planning early will give you less stress and less trouble. It is better to start early with a minimum amount than starting it late and be overwhelmed with the amount that you have to save.

Make an accurate assessment on what you already have. It is better that you assess with the exact figures rather than making estimates. Retirement planning does not only rely on finances but also on many factors such as, health, emotional aspects, retirement location and safety. It is better to consider these factors to help you sustain for yourself without depending on your children.

Planning is not only a one-time event. It is a continuous process and may vary depending on many circumstances. Make sure that you are ready for any circumstances that might affect your retirement plan so that you will be ready for necessary adjustments.

You may want to consider hiring a financial adviser to help you ease the complexities of retirement planning. Before you hire the services of a retirement planning consultant, determine first the areas where you need assistance. Is it the retirement plan itself or the methods you need to implement the retirement plan.

There are a lot of retirement planning consultants and you should choose the ones that are experienced and competent enough to do the job for you. You may seek the advice of your friends and families and they may refer you to persons who know the best retirement planning consultants.

You can do some selection process by interviewing the candidates about their background and experience. Make sure that you know the cost of the services they offer. Always remember that there is a tendency that they are selling their services and you should not believe whatever they say. It is still best to ask other people who have hired them to check their expertise.

Once you have made your final pick, determine if the person you hired is registered. You may contact your state securities to get this information. You have to make sure that the person is free from any illegal activities and could be trusted.

Retirement planning takes a lot of accountability. No matter how competent the retirement planning consultant could be, your planning still depends on your responsibility. If you become responsible with yourself, retirement planning is never a tough job. Make the little sacrifices now and reap the fruits when you retire. Retirement is a time to enjoy and relax and not to burden you.



BRANDEN

poet1b asked:


Right now, boomers are preparing for retirement. Most are earning in their peak years or near their peak income levels. They are pumping more money than ever into the market to pay for their retirements.

The ratio of people pulling money out of the market to fund their retirements in comparison with the people putting money into the market to save for their future retirements is better than it will be for at least the next three generations, most likely more.

In the next five to fifteen years, the ratio of people paying into the market to save for their retirements in comparison to the people taking out of the market to pay for their retirements is going to change drastically. The draw on the market will increases drastically over the savings rate to finance retirement. This will be a historical first for the stock market.

JERI

K_Seeks4Answers asked:


Does anyone know exactly how much money the government takes from early withdrawl of your retirment funds, I’m in my 40’s. I need the cash but want to roll some over too. Let’s say I took out 35-60K, Is there any way to get around all the penalty’s, Most of this money I get will be for paying debts/creditors, so is there anyway to pay them with out being penalized? Is there a better way to take your retirement funds?
Great advise from all so far.
Retirement was funded from employer, no contributions on my part. It is actually going to be approx. 160K. But I only want to take 30-60K, sorry if that was mis-leading.
I don’t own a house, so that will not work. And have not found employment yet, so investing with another company won’t work either. I feel the only way to get out of debt and not rely on the government is to take my funds until I find work again. Your right my luck has ran out, at least for the time being, and don’t I know it!

MEAGAN

Rodney G asked:


I am interested in using my retirement funds to purchase a new beach property while prices are down and I believe that within 10 years that investment will be much better than stocks bonds etc.
I was told by another person not on this forum that the funds could be transferred into a “profit sharing plan” and from there could be invested in whatever manner the manager sees fit. The plan would be a corporation and as long as the manager (me) did not use the property for other personal things and any rents were paid directly to the plan that this would be a qualified investment> any thoughts?

GROVER

Claysphere Rivera asked:


It is a settled fact, as certain as death, that most American’s are not saving much for their retirement. This is due, conceivably, to a lot of factors but mostly because they lack proper discernment and awareness about different kinds of retirement benefits that the state and federal government have waged.

Added on this score, retirement planning has rarely been actively pursued in the American context. Most individuals never give retirement planning serious considerations.

The scenario laid above has different sets of parameters and intricacies that need to be explained in another set. However, this article focus on retirement benefits as provided for under the federally governed Social Security retirement benefits program.

Commencing with the wise details of the basic points regarding retirement benefits, it is necessary, above anything else that you confer with well adept counselors to help you hurdle with your specific situation. To be precise, you need the aid of a qualified social security attorney.

Noting, these experienced representatives can help you in all concerns relating to your pursuit of retirement benefits. They are capable of easing your way into retirement.

To start with, a must know is the constitutive retirement benefits qualification. When you have been working and paying for Social Security taxes, you may earn corresponding credits. These credits can work toward Social Security benefits.

To get the retirement benefits, you will need certain number of credits. Correspondingly, the number of credits needed to qualify for retirement benefit depends on your age. No retirement benefits can be paid until you acquired sufficient number of credits.

In reference to the retirement benefits amount, it all depends on how much one has earned during his/her working career. Higher earnings will have higher benefits. Conversely, lower lifetime earnings often result in relatively lower benefits.

Another important concern with this benefit is the requirement as to age. The Social Security law was recently changed, gradually increasing the full retirement age to 67, in view of the longer life expectancy. To reap the retirement benefits, one must attain the full retirement age.

However, there are specific cases of early retirement that are permissible. The pitfall of the latter instance is the permanent deduction of retirement benefits.

Enough for the personal qualification, the Social Security retirement benefits also provides some financial assistance for family members of a qualified retiree. The family members who may qualify for this benefit are limited to the following groups:

• The spouse aged 62 or older, or those younger than 62 but are taking care of a child covered in the retiree’s record and who is under 16 years old or disabled;

• a former spouse aged 62 or older (as well as a divorced spouse) and unmarried;

• children up to age 18, or up to 19 if they are still full-time students who have not yet graduated from high school and disabled children, irrespective of their ages

The benefit that each of the group related above are limited. The total benefits that the eligible family members should receive must not be more than the determined limits. A necessary reduction will be made if later found that the total benefits exceeded the set limits.

These were the condensed matters regarding Social Security retirement benefits.

To have a full view of the entire coverage of this area of Social Security benefit program, the effective assistance of a Social Security attorney should be employed. Having them to help you in this respect could give you a resolute and systematic approach in your retirement, which makes it a lot less laborious.

The longest of journeys in your Social Security retirement benefit claim start with a single step, that is, by securing the assistance of a competent and vigorous attorney.

Our expert Los Angeles attorneys have the expertise in providing professional legal advice and representations to retirement benefits claimants. For more details, log on to our website and fill out our free case evaluation form.



TAMMI