Let’s Talk About Retirement

Ty C asked:


On Vanguard it has a General Investing account and a Retirement Investment account. Obviously the latter is for IRAs, but what is the advantages and purpose of the general investing?

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hollyg asked:


I’m going to Florida with my family (mom, little sis and brother). We’re staying with my grandma who lives in a retirement community type thing. They have their own houses but they’re all old people. I’m 17 years old and how can I make this fun?

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Rhiannon Williamson asked:


A growing number of international citizens are contemplating the concept of taking early retirement, escaping the hectic monotony of the daily grind and retiring abroad in a low cost location to make the most of their retirement savings.

If you’d like to live overseas to escape the high costs of living associated with countries such as American and Britain for example, this is a guide to planning your retirement abroad so that you don’t run out of money, you don’t run out of friends and you never lose your adventurous spirit.

When contemplating retirement the majority of us seem pre-programmed to only consider the far reaching financial implications of never bringing in an income again! But the fact of the matter is that there are many more things to consider if planning on retiring abroad, not to mention the fact that many retirees overseas pick up odd jobs and part time positions advising and assisting other expatriates with their lives and businesses anyway!

However, as the financial implications of retirement are uppermost in our minds let’s tackle that subject first: -

By retiring overseas in a low cost country such as Mexico, North Cyprus or Belize for example, retirement money simply goes far further. Taxes on property and income are far lower in many overseas countries, property prices are amazingly affordable in plenty of emerging destinations, and the abundance and quality of fresh produce in many sun-blessed and affordable retreats means that day to day living costs are quite simply reduced.

There are considerations that those moving to less well developed but cheaper countries should bear in mind though - such as affording a decent level of health care cover - but in a country such as Northern Cyprus for example the cost of receiving quality medical treatment is so low that an insurance policy’s excess is usually higher than the amount having to be paid out anyway!

It’s important to research a preferred destination to discover the true cost of living there as well as the likely realities of daily life, and researching all options and alternatives is an absolute must for those planning an overseas retirement before making a firm commitment to retire abroad to any particular affordable haven.

Other than the financial implications there are a number of social considerations that those planning on retiring abroad should think long and hard about. By moving physically away from friends and family, homesickness and longing for familiarity can be intensified which can make it harder to settle in abroad. This feeling of displacement is entirely natural and will be experienced to a lesser or greater extent by all those who move abroad - but it is a feeling that can be overcome by making an effort to meet new friends and establish new bonds with people - which means that sociable types who find it easy to make friends and acquaintances will find it far easier to retire abroad.

Those with a tolerance for alternative cultures and values will also find it easier to settle in an unfamiliar country where things are quite simply ‘done differently’! Those who are resistant to change and who plan on living abroad in an expatriate community where they hope to be surrounded by familiarity will still have to encounter local people and accept local values, therefore such people should really think seriously about whether they can adapt to a totally new way of life. If they feel they cannot then they will be wasting precious resources moving abroad only to discover that they **** it and have to return home!

This brings me on to my final point - having a Plan B! Sometimes people retire abroad and for one reason or another they cannot settle and wish to move on or move ‘back home’, alternatively some unlucky people are forced to return home as a result of a change in circumstances. Therefore it is always important to have at least the rudimentary workings of an exit strategy or a plan B in mind. If possible squirrel away a little money so that if the worst comes to the worst you always have a way out or a way back home - even though statistics show that the majority of those who retire abroad in an affordable and sun kissed location love every minute of their life and never want to change it!



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Nancy Hendrickson asked:


Everyone alive today is running in the retirement race of their lives, according to Robert Lamoreaux, author of Winning or Losing the Financial & Retirement Race. As with any race, there are rules to be followed, and times are kept to determine the winners and the also rans. Robert Lmoreaux applies the analogy of running a competitive race to achieving a successful financial status for retirement. The book describes in detail how the reader can finish inside the winners circle upon retirement.

Estate planner Robert Lamoreaux brings thirty-five years of hands on estate planning experience to writing this step by step book of retirement race winning strategies. As with any race, the runner must set some goals, and plan tactics and strategies for reaching them successfully. Since everyone alive today, and is running in the race of a lifetime, we all need to prepare for crossing the finish line with our arms raised in triumph. The book sets out the rules and techniques for finishing the race ahead of the pack.

Robert Lamoreaux (photo left) points out in blunt fashion that everyone is included in the race to retirement simply by virtue of being alive. There is no choice in the matter. At the same time, everyone in the race is at different stages, as the race start has staggered entry times. The book considers the various stages of people’s lives, and the different strategies to be employed to lap the field.

From the very young person, to mid and late career people, to those in retirement now and nearing the end of life, easy to follow instructions are described in detail. From goal setting to practical ideas for living life on a more solid financial foundation, the book provides the framework for victory.

As with any race, the runner must work within the rules, and follow the timing procedures set out by society for the determination of your successful progress. While deliberately avoiding the technical and legal intricacies, the author provides the background and advice for discussions with professional people, in the various fields from accounting to financial planning to law. The book provides the base for further investigation and study of the more specific technical details. By emphasising the important concepts that everyone on the road to retirement must know, the author creates a toolbox that can be applied to anyone at any stage of life, or current financial status.

For me, the power of Winning or Losing the Financial & Retirement Race is its practical step by step approach to achieving financial independence upon retirement. Without sacrificing the good life, a healthy and prosperous retirement is a goal that can be reached without serious painful sacrifices. Solid advice for making good investment decisions, operating a sucessful business, and making wise purchases of the necessities of life are covered in detail.

The author also recognizes that the road won’t be smooth, and the race will often have many hurdles to clear and obstacles to avoid. The book features chapters on health and medical expenses, marriage and family expenditures, as well as planning for funeral expenses and estate planning. By not avoiding potentially painful events of life, the book becomes a much more powerful planning tool for the average person.

I recommend Winning or Losing the Financial & Retirement Race by Robert Lamoreaux as a powerful and honest retirement and estate planning guide. Whether you are twenty or eighty, or any age in between, there is advice suited to you and your personal race to retirement.

Read Winning or Losing the Financial & Retirement Race and be a winner in the retirement race for you and your family. Since you are already entered into the race, you may as well be in it to win it.



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Penny asked:


How many of you think that state Teacher Retirement Pension Plans will be worth investing in the long run if you start investing now?

retirement

Bob Bencivenga asked:


Individuals nearing retirement age discuss a great deal about living expenses and the way they are going to maximize their investments so as to possibly live comfortably. As Social Security benefits grow less secure and Medicaid reimburses fewer health care expenses, a savvy retiree must maximize the returns on his savings and with a bit planning it may be straightforward to deal with retirement medical expenses.

The biggest expenditure in retirement is your principal home. Real estate costs are more than anything else, especially after you allow for retirement health care, maintenance, property taxes and school taxes. A few retirees choose to lease a house, and put their down payment into a growth account to supplement their income with retirement earnings. A few choose states which have homestead exemptions, reasonable tax rates or retirement health care benefits, like South Carolina. Living outside the boundaries of incorporated cities and towns can help lower your property and school tax bills. And while we’re on the subject of taxes, a further extremely variable aspect is income tax. A few states have zero state income tax, but may have high living costs. In both the Carolinas, Social Security benefits are exempt from taxes. A particular thing to remember, living near the coast or in a flood plain, will increase your insurance costs.

A fantastic method to capitalize on your investments in retirement is to select a dependable, trustworthy and cheap automobile. Cars survive for a greater period and require a smaller amount of looking after and repairs in the Carolinas and possibly you might think about residing in a city and not having an automobile and instead making use of public transport. If you prefer a city check the additional cost of housing and public transportation against that of having a motor-car.

Geographical areas are not created the same. Contingent on the region, it could cost less or cost a lot for retirement health care. The Carolinas offer top-notch retirement health care and a range of retired medicare facilities. North Carolina is home to four medical universities: Durham, Winston-Salem, Greenville and Chapel Hill. South Carolina possesses a medical college in Charleston, and big hospitals in Columbia and Greenville/Spartanburg.

There are plenty of areas you can capitalize on your money in retirement. Food is a significant outflow. Do you procure produce from a great farm stand where you save a lot? Do you wait for sales and then buy a lot? If you love to eat out, do the groundwork. Costs vary very much by region.

Carefully choosing your recreation will also make the most of your money. A number of towns in the Carolinas have barbeque and water festivals and free street music to name a few and the Carolinas have a number of recreational zones and free parks and gardens having a range of activities. Maybe rather than visiting the country club you use public links instead. Maybe rather than visiting a prime time movie, you see the matinee. And frankly, do you actually require 397 TV channels?

The main thing is you’re in control to capitalize on your money in retirement. Find a place that makes sense for you, and have a ball!

To get a FREE REPORT on "Affordable Best Places In The Carolinas", to help find a great place to live in, while enjoying the best affordable retirement health care , visit: http://www.PlacesOfValue.com/page/best_places.php



retirement

Julia S asked:


I would love for our class to produce an original gift for our teacher who is retiring after 20+ years teaching. All I can think of are hastily drawn pupils and teachers which are then stuck into a scrap book!!!! Any new ideas would be much appreciated. Thanks

ALLYSON

Paul Hata asked:


We all know that there is a growing need in this country to take our retirements into our own hands if we want the funds necessary to have any quality of life upon retirement. The problem is that most of us have no idea where to begin when it comes to financial retirement planning or investing.

The sad news is that for most of our lives retirement was something that was taken care of if we put in an honest lifetime of work. However, the climate has changed and the retirement funds that many of us have labored to pay for the vast majority of our lives are slipping away.

The good news is that this need has not gone unnoticed by the powers that be and while they aren’t offering solutions for the funds we’ve already invested or in salvaging what is left of the failing system, they are empowering people to take some control for their personal retirements by offering investment options and strategies that provide tax benefits along the way in order to reward you for your efforts.

The four common types of retirement plans include 401(K) plans, Keough Plans, IRAs (individual retirement accounts), and qualifying pension or profit sharing plans offered by corporations.

In most retirement plans, the contributions to those plans are tax deductible and taxes aren’t paid on these plans until the funds are received and retirement payment begins. You should be careful of your investments and guard them well as there are often hefty penalties involved when you take funds out of your retirement funds before you actually retire.

These of course are not the only types of investments you can make for your golden years and it never hurts to have more eggs in many baskets. The more the merrier in most cases. My personal preference for investing is real estate.

This is an investment that you can actually see and reach out and touch. It is also an investment that often gets overlooked when planning for retirement, though when you consider it is an excellent choice. Property values are much lower today than they will be ten, twenty, or fifty years from now.

This means the sooner you buy the property the more it will be worth (in theory) when you retire. The thing to remember is that property investing, like other types of investing, requires some degree of risk. You need to learn as much as you can about the process and discuss your interest with a financial advisor before you make any major decisions concerning your retirement investments.

There are more traditional investment methods you may want to consider as well. Mutual funds and the stock market are great ways to invest your money, build a decent portfolio, and increase your net worth. This type of investing also carries some degree of risk and isn’t always considered financial retirement planning but more along the lines of simple financial planning.

The thing to remember is that it is always good to have a plan. For this reason, I strongly encourage you to engage the services of a good financial planner. He or she can help you navigate the tricky language that is involved in many transactions, set realistic and obtainable retirement goals according to your needs as well as your means, and offer excellent advice and guidance on other investment ventures you may wish to pursue. In other words, a good financial planner can help you plan for your retirement.

When it comes to the world of finance, many of us are far from experts. We seek legal advice from attorneys, tax advice from accountants, and medical advice from doctors yet very few of us go to financial planners when planning our financial retirement.

In many ways it makes little sense to approach our futures so carelessly and yet this is not something that our parents and grandparents would have done so there is no precedence for doing so.

The problem is that money is such a limited commodity in this world, we are living longer than ever before, and we are enjoying much more mobility in our golden years than in times long past. We now need expert advice and guidance in order to insure that we are in the best possible position when the time comes to face our own retirements.



BRYCE

Yukitee asked:


When people are young, the word retirement is not something of much concern. It is 20 or even 30 years away and a lot can happen during that time. It is something that slips in and out that is given little thought.

Some companies offer early retirement to its employees. Even if the age of retirement is officially at 65, there are some who are not yet willing to leave and would rather work some more instead of enjoying the other pleasures that life has to offer.

A job or a profession to some is what makes the person a member of the community. It makes the person feel important for the years of service given and the number of accomplishments one has achieved. These are things that some people hold on to which makes retirement hard to accept.

The psychological impact makes it hard for someone who has lived in a fast paced world to adjust to a life that is at a more leisurely pace. Some forms of leisure after working for so long can be done by spending more time with family and friends, playing golf or cruising around the world.

Another reason is perhaps the person who is still employed is just waiting for the right moment or package that the company will give out to its employees. Such issues are whether or not the retirement package that is being offered is higher than the projected earnings if one stays employed or if the retirement fund can be used immediately once it has been given.

Some people can get more just waiting for the normal retirement age than accepting the company’s early retirement plan. Instead of saving, one might end up forfeiting and miss out on opportunities to make additional contributions to the plan.

People who don’t want to retire yet are also concerned if the offer given by the company includes post-retirement medical insurance. This is because Medicare doesn’t start until one has reached the age of 65 and the cost of getting private insurance is expensive.

There are risks in deciding to stay if a retirement offer is on the table. Business may not be doing well prompting the company to lay off workers or even have the position one has eliminated due to redundancy.

The most important reason that makes some employees still stay is that regardless of age, one strongly believes that one can still do more being at the job.



CLIFF

George Dowhan asked:


If you are going to retire to Thailand and if you are over 50 years of age you should obtain a Retirement Visa. It’s that simple.

If you don’t then you will be doing a “visa run” every month like thousands or tens of thousands of other foreigners. For those of you not acquainted to the term visa run it is a trip outside of the country to get your passport stamped. It is time consuming, costly if you have to do it every month and just a nuisance.

When I first considered retiring to Thailand I read about the visa runs and I wondered what I could do to avoid doing that. Well all you have to do is to get yourself a Retirement Visa. It normally takes 4-6 weeks to obtain from the time your completed application and fee is sent to the Royal Thai Embassy or Thai Consulate.

The requirements include a criminal check where you will probably have to pay a small fee to get the local police to check you out and then issue a form. The other requirements include a medical certificate from your physician saying that you do not have Aids, TB and a few other communicable diseases. Along with my application I submitted a letter from my bank stating that I had considerably more than the amount required by the Royal Thai Governement which if I remember correctly was 400,000 baht or about $11,000 U.S.

When it come time to submit your application it will be in the form of an original and and 3 copies which have to be notarized and a fee of approximately $120. payable to the Royal Thai Embassy. It is all mailed to them by courier with a prepaid return envelope.

If things go well you will get your passport returned to you within 4-6 weeks with the Retirement Visa inside. It takes a page and looks like it was stamped on the paper.

After that you are required to go to the Immigration office every 3 months and fill out a form showing your current address and phone number. It takes about 10 minutes and they attach part of the completed form into your passport and then you are all set for another 90 days. Much better than a visa run.

Now I have read that the age requirement is 50 and I have also read that the age requirement is 55 for the Retirement Visa. As far as I know and I have a retirement visa and I applied when I was 54. So I believe the age requiement to be age 50.

The total cost of my retirement visa was about $300 Canadian. That includes the fee to the Royal Thai Government, fee for criminal check, fee for notarizing the forms, prepaid courier to Royal Thai embassy, prepaid courier for return courier from Royal Thai embassy, and gas for 2 trips to the police station, gas to the lawyer, gas for trips to bank, and miscellaneous. But when you look back after you have the retirement visa the fee you realize is well worth it.

Things to Remember:

After you have your Retirement Visa and should you decide to leave the country you must obtain either a re-entry permit (single entry or multiple entry). I believe that the single entry permit cost me 1,000 baht or about $25 U.S. If you leave and do not obtain a re-entry permit then say good-bye to your retirement visa. You will have to re-apply for a new retirement visa.

The retirement visa is self-renewing. So long as you leave the country once a year and go to Immigration faithfully every 90 days it appears that the visa will last forever. By leaving the country this may only involve a trip to Myanmar by bus or car and getting your visa stamped during a short day trip and then returning to Thailand.

So thats it. Fairly simple but what I learned is that you should not believe everything you read on the internet about the retirement visa. For example I have seen on a number of ocassions the age requirement being shown as 55. There are other things that I noticed and which we pass on to our clients when we advise them about the process and get into the details.

The Immigration office in Chiang Mai is located very near to the airport. For the routine visits every 90 days go to the buidling on the left side as you drive in. For re-entry permit go to the buidling on the right hand side. They have a small restaurant and a area where photocopies can be made and photos taken more towards the back of their property.

Staying on the Visa topic note that citizens from 57 countries can enter Thailand without charge for 30 days without a visa. These countries include U.S.A., U.K., Australia, South Africa, Ireland, New Zealand, Canada as well as most European countries.

Your passport must be valid for 6 months beyond your planned departure.

A tourist visa is good for 60 days and can be gotten through a Thai Embassy or consulate in your country. This can be done by mail. The cost is $25. Once issued, the visa must be used (started) within 90 days of the date issued. The visa is invalid upon departure from Thailand even if the visitor hasn’t stayed 60 days.

There are other types of visa but generally they don’t apply to visiting Thailand for a holiday.

Overstaying your visa is a serious matter and should not be taken lightly. On the one hand, you can clear up an overstay when you leave Thailand by paying your fine at the airport- 200 Baht per day with a maxiumum of 20,000 Baht.

On the other hand, you can be subject to arrest even if the police stop you for something else. Being arrested is fairly common and it is extremely unpleasant.

In addition to fines and detention, it is possible to be deported and black listed. That could mean that you can never return to Thailand.

The Thai Government realizes that seniors make great visitors. That they have the money and that they can stay longer. Unfortunately in my opinion they do not realize that seniors particularly men want someone to share their lives with and at times come here for the affordability, climate and also for the Thai ladies who are seeking marriage minded men.

If the Thai Government wanted to encourage seniors to spend more money and more seniors to come here to Thailand to retire then they should change the home ownership laws. From what I understand foreigners can own condo’s but not houses. So what happens is that the farang (foreigner) comes here and meets a lady and they develop a long lasting relationship. The farang decides to buy a house and has to put it in her name. Being a smart and cautious farang he has to figure out a way around the existing home ownership laws just in case the Thai lady gives him the boot. So they put the house in her name and she signs a long term lease allowing him to stay there for almost nothing. It works and most farang-Thai couples do it this way. But is this necessary? Come on now do you want farangs to come here to retire or not?

What I think is a great deal is that of coming here for medical treatment. This can be major dental work, a hair transplant, a heart operation, or liposcution or ****** enhancement for the females. The costs here are so much less and the treatments performed by qualified physicians that it is a good idea to come here for a vacation and get this medical treatment performed and then return home with money in your pocket from what it would have cost you back home for the medical treatment. As I write on another page in the website, I wish I had known about this sooner as I would have taken advantage of this and had 3-4 Free Vacations to Thailand by now.

If there is something that is particularly annoying to me it is the quality of the health care back home. In my case that is Canada. I can remember when a trip to the doctor involved a short wait and you were treated promptly and effectively. Now I find that you make an appointment, wait an hour to two hours after your scheduled appointment time to see the doctor who is always behind schedule because they want to maximize their earnings and then they get you to keep coming back when they don’t have the slightest clue what ails you or how to treat you. When a specialist needs to be seen it takes 1-2 months wait and then you find out how incompetant your physician really was when the specialist diagnoses the problems and prescribes the treatment after seeing you for only 10 minutes.

It might sound like I am a complainer. Well I can be at times. And if we don’t complain when we have reason things will not get better on their own.

So there you have it information about the Retirement Visa, some details about other Visa’s, and some whinning about health care and about property ownership laws here in Thailand for home buying farangs. Well no place is perfect and there are a few things that irritate me and which I cannot understand but so is life.

I do urge anyone coming here to retire to obtain a Retirement Visa. We can help you with the process whether you want to apply when you are back home or apply after you decide to make this home.

If you need any information about living in, retiring to, vacationing in Thailand or Chiang Mai just check our website at:

http://www.retire-on-550-month.com



FORREST