Let’s Talk About Retirement

Eric Bayne asked:


Many people, after having invested much of their money into a safe 401k fund, are ready to begin their retire with no money problems. But how many of them have actually taken the time to take a pen and calculator and begin to compute exactly how much of their monthly expenses that their 401k will actually cover? Many haven’t, and many are shocked when they find out how much of a shortfall they have.

Most people never take the time to map out a long term retirement strategy. For some reason, doing so never seems to rise to that level of importance. Sure they’ll save a little here and there and some may even have a structured savings plan where a certain amount of money is taken out of their paycheck weekly and deposited in a fund. But very few people go through the hard process of putting down in writing such basic facts as what age they plan to retire, how much money they’ll need when they retire, and how much money their fund will provide for them when they retire.

And that’s a big mistake. It’s also why when the big day finally comes, many new retirees will belatedly discover that their 401K and Social Security payments will not even come close to covering their monthly dollar outlays. So, unfortunately, at the age of 65 or whatever age they retired they discover that they have to go back to work - sometimes part time but sometimes full time - in order to make ends meet.

So, why does this scenario happen so often? And is it avoidable? To put it bluntly - it happens because they failed to make themselves a retirement plan. And yes, this situation is avoidable - if you don’t wait too late to start. So let’s start now.

Here’s a practical, easy way to at least begin to create a retirement plan. How much do you currently earn a month? Most experts figure that you’ll need at least 60 to 80% of your pre-retirement gross income to keep you at the same standard of living that you now enjoy. So let’s be conservative and figure that you’ll need 80% to be comfortable. So, if you make $4,000 a month, your retirement fund plus Social Security payments would have to provide you with at least $3,200 a month.

Now ask yourself. How much will your current 401k fund plus Social Security provide for you at retirement. Is it at least 80%? This part may take a bit of work on your part, but there are calculators all over the Internet that can help you to answer this question.

If you discover that your retirement fund as currently constituted will not provide you with this 80% of your pre-retirement gross income, you have one of two hard choices to make. You either make a conscious decision to lower your standard of living when you retire. Or, you make a conscious decision to increase the amount of money that will be in your fund when you retire. You can do this by either taking extra jobs and placing the excess money in your retirement account or by choosing more profitable investments. Whichever decision you choose, at least you won’t be going into your retirement years financially blind.

Now admittedly, this quick and dirty retirement plan analysis does not take into account many factors that a thorough analysis would. For example, we’ve left out factors such as whether your house has been paid off at retirement, whether you’ll still be supporting your children at retirement, and whether you have other substantial debt loads. And it’s more than worthwhile for you to map out a thorough retirement analysis plan as soon as possible. But even a quick and dirty plan such as this is more than most people do and is better than no plan at all which, unfortunately, is what most people have.



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Rob K asked:


What % of my income should be allocated towards investments? I have about 25 years until retirement. Should I find a good mutual fund with a decent return and accumulate more and more of it and buy and hold? I am worried about tax implications if I buy investments and then sell them.

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Counselor asked:


I can leave the money in the Indiana State Teacher’s retirement fund and draw at a higher interest rate. However, when both my wife and I die, no one will get the money. I could transfer the money to an IRA or something similar for a lower interest rate. When we die, our beneficiaries will be able to receive the money. What have others done in this situation?

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Troy asked:


I have an E*Trade savings account getting 3.3% interest, but that is not gaining much. I want to start a retirement account that will have maximum earnings but will allow me to remove funds before the retirement age of 65 without penalties. Thanks in advance for any suggestions.

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pmpinoy65 asked:


My good neighbor just retired and is having a party today! What can I write in her greeting card besides, Congradulations on your retirement ?

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I love sushi asked:


I quit my job to stay home with my daughter. But i may go back to work some day and would like to use my 401K money to continue saving for retirement in the mean time. What is the best option?

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Jamil Estorninos asked:


What could be more pleasing than retiring and enjoying the fruits of your life’s hard labor? Sitting on the beach reading your favorite book, sipping tropical cocktails… Yet, things do not work that easy, do they?

 

We all know that they don’t. Reaping the benefits of your labor is not as easy as one two three. There will be glitches. The waiting is long. And, the outcome will most probably disappoint you. It is so disappointing that you will have to suspend your dream vacation for the time being.

 

The Social Security covers 96% of workers in the United States. And, almost every worker has Social Security as part of their retirement plan. So you are not alone in thinking of retiring, there are several hundreds if not thousands who think like what you do – who will have to wait as you do.

 

In this article, you will not have to wait that long. The point here is simple: You Will Need a Retirement Benefits Attorney.

 

As member of Social Security, you should know how the program works and how much money you should receive when you retire. Your age and earnings can influence your benefits. Sometimes, the formula is beyond anyone’s comprehension that you will need to consult with a Social Security representative, or let your lawyer do it for you – hassle free.

 

For the basics, you can only qualify for retirement benefits when you work and pay Social Security taxes. By paying, you earn the so-called credits.

 

Now, the number of credits that you will need to get retirement benefits depends on when you were born. For example, if you were born in 1929 onwards, you need 40 credits or an equivalent of 10 years of work.

 

As to the how much, the benefit payment will depend on how much you earned during your working years. This one is simple, the rule of the thumb is, the higher your earnings, the higher your benefits will be.

 

Payment will also be influenced by your age when you decide to retire. If you decide to avail of the early retirement, which is at age 62, you will get less than if you decide to wait until 65 to 67 depending on what year you were born.

 

Deciding when to retire is a personal decision. But, asking for an advice especially from those who specialized on retirement matters wouldn’t do any harm. It is strongly recommended that you speak with one.

 

Take for instance on which is the best month to retire and claim benefits. In certain cases, a retirement month of your choice could mean higher amount of payment. Experts say that one will need 70-80 percent of your pre-retirement income to have a comfortable life after retirement.

 

You have to know about many aspects of retirement. From the concept of “delayed retirement” to retirement benefits of widows and widowers alike, benefits for the family, benefits for a divorce spouse to appeals, in case you do not agree with the SSA’s computation – which is most probably what is going happen.

 

This is the reason why you need assistance of someone who can facilitate or even fast track things for you. From application to hearings to appeal, as already intimidated, you will need a Retirement Benefits attorney.

 

Who knows, you could be sipping cocktails by the beach sooner than you expect.

 

Our Los Angeles Social Security lawyers are well adept on issues relating to retirement benefits. For reliable advice and representation, log on to our website and feel free to use our live chat services.

 

 



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Been here before asked:


I’m currently 21 years old. I was told a while back about a plan to start saving when you’re 25 (or about that) and save one million dollars by the time you retire. What age are you supposed to start? How much are you supposed to save? Should I be saving for retirement already at 21?

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lalala asked:


i’m nto sure what to write in a retirement card for my teacher…suggestions?

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Shawn Mitchell asked:


So you’re looking for some retirement planning and employee benefit tips? First of all, keep in mind that employee benefits should be one of the biggest things you look at when choosing which company to work for. Quite simply, there are few things in your life more important than your retirement planning, because you will be living without any income coming in, or at least a much reduced one.

Of course, with people living longer and longer today, this leaves about 30 to 40 years you will need to support yourself with a much lower income than you were getting by with earlier. This makes retirement planning essential to live the kind of lifestyle you’ve always wanted to live when you retire.

Most people never take the time to plan out their retirement, and find themselves in a financial crisis when they are ready to stop work. As a result, many, many people end up working long beyond the time they wanted to retire at. Don’t let this happen to you; by doing some simple planning, you can easily avoid this outcome and have all the money you need to retire on, and then some.

Of course, don’t be bashful in this retirement planning and employee benefit process; your retirement years should be one of the most awesome times in your life, because you’ll have time to do things you weren’t able to do what you are working. Therefore, think of anything you want to do during this time, and write it out. This will serve as your guide in your retirement planning process.

So what you look for when choosing the right company for you and finding the right retirement planning and employee benefit package? As I said before, your employee benefit package should be one of the biggest things you look for. First of all, do they have an IRA?

This should be one of the biggest things to look for. An IRA, otherwise known as a pension fund, is one of the best ways to plan for your retirement, because it allows you to contribute money from your own salary and your employer will match it often times.

This way you are receiving more money into your retirement account than simply a portion of your salary. When looking for an IRA, try to find a company that offers a self-directed IRA

The main reason you want a self-directed IRAs because it will allow you to choose which investment you want for your IRA for your own situation. Relying on other people such as your company to do this for you could be financial *******. Quite simply, most people simply throw their money away to a fund manager or their company, and allow them to do what’s best for them in their retirement planning process.

Unfortunately, using these methods will not make you rich. The only way to make yourself wealthy is to become financially educated and learn to pick up on investing and spot your own investment opportunities. Follow these retirement planning and employee benefit tips and you’ll be able to find the right company for you and live the retirement lifestyle you’ve always wanted to.



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