Let’s Talk About Retirement

Eric Bayne asked:


Many people, when they retire, don’t have much fun at all. Sure they no longer have to work, which is good. But, other than watching reruns of their favorite TV shows, they’re not really living the retirement life that they envisioned because they just don’t have the money for it.

They’ve never sat down and planned their retirement or figured out how much money they would need at retirement. And to do so is not very difficult. You simply have to imagine and think about your ideal life at retirement and estimate how much money it would take to live at that level. Your retirement expenses will usually fall into the categories like the following:

Required Expenses:

Housing - Estimate your housing cost at the time you plan to retire. If you own a home, this will be your monthly mortgage amount. Don’t forget to include your annual real estate tax amount and housing upkeep costs. If you are renting, add your monthly rental amount. Other fees that might be included in this category are big item home expenses such as stove, refrigerator, water heater, and so on.

Transportation - How do you plan on getting around your town or city? If you plan on owning a car after retirement, estimate your annual car maintenance fee, gasoline costs, and automobile insurance. If you rely on public transportation such as trains or busses, estimate the cost of monthly passes and so on.

Food - Grocery store items. Don’t include dining out in this cost figure. Estimate the amount of money you will spend on a monthly basis for food for your family which should include yourself, your partner, and whoever else will be living with you when you retire.

Health - You have to have some money saved up for medical emergencies that Medicare or your insurance policy is not covering.

Home or rental Insurance - usually a small amount but add it anyway.

Optional Expenses:

Entertainment - everyone needs to relax at some point. Look at your current life style or the life style you would like to have at retirement and add those costs. Things like movies, plays, amusement parks, museums, and so on - all go on the list.

Savings - Just because you’re retired, doesn’t meant that you automatically stop saving. You may have plans on saving for your grand daughter’s schooling or a special trip for yourself and your wife. Include it all.

Travel - For many retirees, retirement is the first chance that they’ve had to do extensive traveling. Maybe you’ve always wanted a trip to Morocco, or India, or Russia. Estimate how much such a trip would cost and add it to the pot.

Hobbies - Some hobbies don’t cost much at all, they simply require your time. But if you have a hobby like collecting rare coins, gambling, or flying airplanes - you’d better have saved yourself a large cache of money if you want to enjoy your passion.

Gifts - You don’t want to stop giving gifts just because you’ve retired. Estimate how much money you will probably need in order to give gifts to friends, family, and loved ones.

Now add up these expenses. Totaling the dollar amounts of these expenses should give you a pretty fair estimate of the type of life you’d like to live when you retire and how much it will cost you. With luck, you’ll be able to have the type of retirement that you’ve always dreamed of.



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Max Ng asked:


If I want to gain financial freedom way before retirement age or latest at the age of retirement, I need to accumulate enough wealth to achieve the lifestyle that I want. This requires planning as gathered from the Rich Dad’s series by Robert Kiyosaki. If I want to be cautious, I feel that I should have two plans.

The first plan is to plan for retirement. The second plan is to plan to retire way before the age of retirement. This is because in case the second plan fails, I still have the first plan to fall back to. In the worst scenario, I will gain financial freedom at the retirement age.

In order to implement the first plan, I need to embark on the journey to research on retirement planning. After studying and reading a lot on retirement planning, I realize that retirement planning should be done as early as possible in my life. Why?

Firstly, I can capitalize more on the compounding interest of investment return. If I invest early in my life, then my investment has more time to grow. This advantage is gone if I have only invested near my retirement age.

For example, let assume the rate of investment return is 5 percent per annum and my retirement age is 60 years old. If I invest at the age of 30 years old, then my investment has 30 years to grow at the compounding interest rate of 5 percent per annum. If I have invested at the age of 55 years old, then my investment has only 5 years to grow at the compounding interest rate of 5 percent per annum. Of course, I will gain more if I have invested at the age of 30 years old.

Secondly, I can afford to make mistakes in my investment and recover from my mistakes. When I learn to invest initially, I will definitely make mistakes here and there. Because I start to learn to invest at a younger age, I have more time to learn and recover from my mistakes. Learning form mistakes is the key to accumulate wealth based on my understanding of the Rich Dad’s series by Robert Kiyosaki.

For example, if I have made a mistake in investment that result in a loss of $10,000 at the age of 30 years old, I still can earn back the money. But if I have made the same mistake at the age of 60 years, I may not be employable to earn back the lost amount.

Even if I decide to hire a financial planner to help me, it is still my responsibility to know enough about investment so that I do not hire the wrong guy. This knowledge cannot be gained through purely reading. Some kind of practical experience is required to understand more about investments to enable one to decide on the proposed solution given by the financial planner.

Thirdly, I can be more aggressive in my investment. That is I can put my money into more risky investments. More risks usually mean better return on investment. But that may not be always true. If I can manage the risks well, I can get better return on risky investment.

For example, I can invest in currency. That is provided that I know how to manage the high risks in currency investment. Even if I have all the necessary risk management in place, there is still a possibility that the investment still goes wrong due to unforeseen circumstances. In which case, I have time to recover from the loss.

Then, I can invest in long-term investments. This is not possible if I invest near retirement age. At near retirement age, I should only be investing in assets that give me cash or near cash, as I will need the money to support my retirement lifestyle. In fact, most of my investments should be converted to the type that can give me regular income near my retirement age.

For example, it maybe impractical for me to invest in a property and hoping that it will appreciate. A property may take quite a number of years to appreciate to a substantial amount. In other words, I should not be looking for investments that give capital appreciation. I should be focusing on investments that give me regular income such as annuity.

Even though that it is good to plan for retirement early, it is important that I have addressed the more urgent needs first. I should have already planned and insured properly so that I will not face a financial disaster due any unexpected accidents or illness or any other events. Also, I should have already set aside an emergency fund equivalent to 3 to 6 months of monthly expenditure. In this way, I should be able to survive till my retirement age to see the fruits of my retirement plan.

* DISCLAIMER *

The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.



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anonymous asked:


Financial planning can be a difficult task especially if you are planning for retirement. Looking into the future and making assumptions on your lifestyle and the amount of income that is ideal for you is something that cannot be assumed correctly. Remember, the future cost of living or economic factors are unknown. The best thing you can do is have a plan based on worst case scenario with high inflation (cost of living) and work upon this factor. Many people realize how advantageous financial planning for retirement can be so they start immediately towards retirement income investing.

From statistics the people that do plan there retirement are usually the top 5% who are able to retire comfortably. This is not because they have more money in the first place, its how they set up there retirement income investing and what they do with there money. The financial plan assists you with financial goals and helps you achieve them. All you need along with a financial plan is a coach to guide you. We can help you with this but you need to determine your financial goals.

Surveys show that almost 75% of the population earn enough money to pay their monthly bills only. This means that they do not have any extra money to put in a bank or in any financial institution that could provide them enough profit after their retirement. Is it time to look at alternatives to building on this retirement income?

What’s more Social Security is not enough guaranteed income for retired people to live on. Actually, it is still a big question if social security will still exist when the retirement day comes. This is a good reason to set-up your own retirement income investing.

Hence, it is extremely important to generate some methods that will provide an individual a reasonable amount of money in the future. This should be done regardless of how much an individual earns, the important thing is to start saving today.

1. Calculate and Analyze

It is important for a person to visualize his or her own situation after retirement. Then, you can calculate how much money is needed to live on after retirement. Furthermore, people need earnings which equate to 70% of the present income.

2. It is important to seek the help of a financial planner or good stock broker who can assist with building your retirement income investing vehicle.

By asking for advice from the experts, you will be able to gain more knowledge know how to proceed for you situation. These people are proficient and knowledgeable in all kinds of financial planning and they can provide the most feasible and workable approach for your individual needs.

3. Get rid of loans, debts, and other financial obligations in as little time as possible.

By simply paying off all debts, loans, and other financial obligations in a shorter period of time, you can realize a substantial amount to invest for that retirement. A good financial planner will know exactly how to direct you so you can meet your retirement income investing goals.

If planning your future is something you have always wanted to do and have never got around to doing it, now is the time. You can take advantage of the time you have to learn all about investing. Stock Market investing has changed many the lives of many people close or nearing retirement have turned there lives around. Learning how to profit from the stock market and building a retirement income investing vehicle can be easy.



retirement

Jeffrey Stoffer CFA, CFP asked:


What is retirement? The definition has evolved over the last half century. How you view retirement can affect how you plan and invest. The current economic situation also comes into play. By viewing retirement as a process, by starting early and planning, it is possible to reconcile your values and priorities with the available resources to create your own definition.

The notion of retirement is actually a fairly recent phenomenon. In the early 20th century people worked until they were no longer able. By mid century there were too many older workers and high unemployment among younger people. Pensions and Social Security were seen as a way to ease older adults out of the workforce, making way for the young.

The early version of “retirement” was not pleasant for many people. They were relegated to a view of life from the porch. Suddenly no longer needed, their self-identity was called into question. The event called retirement was not necessarily something people looked forward to.

It was not until the 80’s that people started to look upon retirement as something more than idleness without purpose. The notion of the “golden years” came into being. Retirement was to be a time when people could count on Social Security and a pension for a life of travel, sunsets in faraway lands, and cocktails with umbrellas on a tropical beach. This view seems the equivalent of going out to eat with nothing but desserts on the menu. How could life get any better than that?

Have you fallen into the trap of seeing retirement as an event, where suddenly your life will transform for the better? Retirement beckons as a time of change and new opportunity, particularly if you have been unhappy in your job. You may find yourself working too hard and, without realizing it, sacrificing joy in the present for some imagined future that you hope will be better (I confess, I fell for this one.)

The idyllic, golden years view of retirement, may not be your ideal retirement; and pensions are becoming a thing of the past. Not to mention changes that may occur with Social Security in the coming years. If we have not spent considerable time thinking about and planning for the transition to retirement, it could be an event filled with disillusionment. Our idealistic and fanciful expectations may clash with a very different set of economic realities.

So how do we begin to figure out what retirement is, or should be? I found the following exercise enlightening, and I suggest you try it: write down your ideal day, from start to finish. What is really important to you? Look to those activities that bring you joy and satisfaction. What are the things you want to do more of or could not see yourself living without? Your menu for the future starts here, with what you value most.

I want to emphasize the focus on what you actually see yourself doing - what you want to be doing - in retirement, because we are a nation of “doers.” We don’t just sit around on a beach. We multi-task, we get stuff done. We are also concerned that we will have to work longer than the previous generation. But we are good at it. And how we define ourselves is tightly interwoven with what we do.

The menu of choices available to us is wide. I am willing to bet there are a number of you who have dreamed of starting a small business. Or you have a hobby that you would like to share with young people. There are so many ways to contribute to our communities that can provide a sense of meaning and purpose, as well as potential income. We have the opportunity to make choices about what we do in ways our forefathers never did. Few of us will inhabit a rocking chair on the front porch, unless it is by choice.

And what about economic reality? Now is a bad time to ask that question, but if you have been investing for a number of years you know that markets have their ups and downs. The present time is our cold, slap-in-the-face reminder that we need to pay attention to our investments. It is a reminder that our retirement funds are important and we should be careful stewards of these nest eggs. The bottom line is that by starting early with planning and investing there will be more time for your vision and your economic situation to converge, more time to make decisions that bring you closer to your definition of a well-lived retirement.

The definition of retirement is changing. Clinging to past assumptions or pre-conceived ideas will only hinder us from creating a future that reflects our values. If we see retirement as a process, it becomes clear we need to focus our attention on that process now. This does not mean that we sacrifice the joy and meaning of the here and now. Our futures may unfold in wonderful ways we haven’t even thought of. We can take charge of the future by creating our own unique vision. We can accomplish this by taking steps now, and consistently along the way. The result will be a sense of comfort that we are creating a retirement based upon our choices and values.



retirement

Robert Valentine asked:


Will most baby boomers truly retire? The old mainstays of golf, grandkids and travel haven’t been enough to satisfy many retirees from previous generations. With the great amounts of energy and success that exist within the baby boomer generation, retirement isn’t likely to sustain their attention much longer than it did their parents’.

If the current generation of retirees is any indication, baby boomers and younger workers alike have a thing or two to learn from their older counterparts. In August 2005, Putnam Investments performed a retirement survey called “Working in Retirement.” Most of the retirees surveyed returned to work after an average of only 18 months of retirement. Of those who returned, 32% cited financial need, while 68% did so voluntarily.

The return to work may signal a problem that most retirees don’t anticipate: having something fulfilling to do. The keyword is fulfilling, and it’s the driving force behind a return to work. Of course, the added income and the potential health insurance benefits don”t hurt either. The phenomenon has become so recognized that In areas with large and increasing populations of retirees, like Arizona, many employers are catering to the retired crowd. Certain companies offer specific work opportunities crafted for retired people. In Tempe, Ariz., Wells Fargo has a special processing center that hires mostly retirees, whom they have nicknamed “Silver Bullets.”

The Putnam study didn’t focus just on work after retirement. It also emphasized several key reminders for younger workers. Even though the current generation of retirees is relatively financially stable, they still have concerns about running out of money, and they’re worried younger people will do the same. They emphasized starting retirement savings early, developing a retirement plan and saving as much as you can both through your workplace program and on your own.

Retirement could be the beginning of many great years. Working with a financial professional and having the proper plan in place is a key part of retirement. You should also keep an eye on healthcare costs and stay informed on issues that will effect your retirement. You should always be focused on your plan and be aware of some common pitfalls. That way, you can be prepared to make the best years of your life as good as they can possibly be.

No one expects the baby boomer generation to be content with life in retirement, which is why planning post-retirement activities, both work and play, is so important. And it’s just as important for younger workers to plan for such activities too. No matter your age, informing your financial professional of your desire to work and your hobbies and interests will make your retirement plan that much more complete.



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Robert Valentine asked:


It’s hard to call Lee Iacocca a failure. In fact, it’s nearly impossible.

The man who led Chrysler back from the brink of failure, and later helped raise millions of dollars to revitalize the Statue of Liberty, admitted years ago he had failed at something: retirement.

In a Fortune article in 1996, Iacocca shocked the nation by saying, “You plan everything in life, and then the roof caves in on you because you haven’t done enough thinking about who you are and what you should do with the rest of your life.”

If this sounds familiar, you aren’t alone. Most Americans are avoiding the talk of life after retirement, and even more are putting off the financial aspects of retirement planning. Even of those who realize having a plan is essential, many don’t bother to decide what they’ll devote their precious time to later in life. This is becoming a common problem that could be prevented with a little help.

Most financial professionals are interested in your life’s details a great deal. They want to help you retire in comfort, and in order to formulate a complete retirement plan, they need to know what your plans, goals, and aspirations are during your golden years. In short, they need to know exactly what Lee Iacocca didn’t. They’re just as committed to helping you reach your goals, both personal and financial, as you are.

When workers were asked about the most helpful tool for saving for retirement in the 2005 Retirement Confidence Survey, the largest percentage of workers surveyed (27%), said they believed advice from a financial professional was the most helpful. If those surveyed felt confident in their retirement plan, it was probably because they have a much more realistic outlook on the task of planning.

According to Investment News, Roper Public Affairs recently conducted an in-depth survey of future retirees for American Express Financial Advisors, Inc. The results were not only somewhat disturbing, but also very telling of the benefits of the help a financial professional can add to someone’s life.

Of the almost 1,400 adults surveyed, those who currently had help from a financial professional were not only more realistic in the amount they believed they needed to save for retirement, but had more saved, than those without help.

The survey asked men and women between the ages of 40 and 64, who made at least $75,000 a year, a series of questions. People who didn’t use the help of a financial professional, were 63% more likely to say they were “uncertain” about retirement. Their financial estimates of post-retirement income were also off the mark.

On average, those who didn’t have the help of a professional, overestimated the amount they’d need later in life, and also had a great deal less saved up. It’s not hard to see how the combination of those two factors can lead to a great deal of stress in an already stressful world.

One of the more serious results of the study came from the responses of those surveyed regarding working during retirement. No one expects the baby boomer generation to go quietly into the night. In fact, more baby boomers are expected to continue working than any other previous generation. But working while you are retired should be a choice, not a necessity.

Of those without professional advice, 22% said they expected they would be forced to work after retirement, rather than choose to work. Only 9% of those with professional help said they would be forced into work.

It’s no secret why people trust financial professionals when it comes time to figure out the future. Planning for retirement is more than just crunching numbers. To be certain you’ll achieve your goals during your golden years, you need more than just financial help. That’s why more and more people are turning to financial professionals for advice on both life and retirement planning. A professional will help you decide your financial and lifestyle priorities and find a plan that will help you live out your retirement in comfort. Working after retirement should be a choice, not a necessity, and a financial professional can make it possible.



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Martin Lukac asked:


The IRS understands that you need to save for retirement. Often your nest egg builds faster if you don’t have to pay taxes on retirement savings until you are ready to retire and withdraw your money. The idea is that you will be in a lower tax bracket once you retire. The money is taxed as it is withdrawn.

Retirement accounts through your employer, such as 401(k)s and company sponsored IRAs, give you added benefits. Your contributions to your account are made in pretax dollars, which means that you are saving more than if you only contributed after-tax dollars. Because you deduct your contributions from your gross income, you are paying less in taxes.

There are other accounts, such as Roth IRAs, that allow you to contribute after-tax dollars. Your earnings grow tax free because you’ve already paid the taxes on your contribution. When you withdraw the money, you don’t have to pay any taxes.

There are several tax-advantaged retirement plans to help you save for your future.

Individual Retirement Accounts

Individual Retirement Accounts (IRAs) give you a great way to build tax-deferred savings for your retirement. An IRA is not an investment, it is an account. Within the account is a mixture of the investments that you want - stocks, CDs, mutual funds, cash and bonds. You can have any mixture of investments you want, and everything except options and other derivatives.

Employees can no longer plan for their future based on the promise of Social Security and pension plans. As corporate America has switched to “defined contribution” retirement plans, the American worker is on his own for saving for retirement.

“Defined contribution” plans specify the maximum amount an employee can contribute to a plan, but they do not guarantee any amount of payout. A “defined benefit” means that the company’s plan guarantees a specific payout. In general, the burden of funding your retirement is no longer with an employer, but with you.

The Traditional IRA

The traditional IRA is the most popular form of an IRA. Anyone under the age of 70 ½, with earned income, can open and invest in a traditional IRA. There are limits to how much you can contribute to your IRA each year.

If you don’t have a retirement plan at work, you will be rewarded for making contributions to an IRA. You can deduct your IRA contributions from your gross income for tax purposes. It lowers your Adjusted Gross Income, which means you are taxed at a lower amount of income. You earnings in an IRA will grow tax-deferred until you withdraw them at retirement.

Even if you are covered by a retirement plan at work, you can contribute to an IRA. The contributions are not tax deductible, but the earnings still grow tax-deferred.

You can begin withdrawing money, called taking distributions, beginning at age 59 ½ if the account has been open for at least five years. If you opened the account at age 55, you will have to wait until you are 60 to take distributions. You are required to begin taking minimum distributions by April 1 of the year after you turn 70 ½.

The disadvantage of IRAs falls here. The distributions are taxed as ordinary income.

Since IRAs are set up for your retirement and withdrawals before the age 59 ½ are taxed as ordinary income and charged with an IRS penalty of 10%. There are some exceptions. You may be able to withdraw money penalty-free before the age of 59 ½ to buy your first home, pay for higher education or extraordinary medical costs, or because of disability or death.

You can take a penalty-free loan from your IRA, but you have to start to repay the money within 60 days or pay taxes and a 10 % IRS penalty.

Roth IRA

Contributions to a Roth IRA are not tax deductible, you use after-tax money. The earnings will still grow tax free. Unlike a traditional IRA, you may withdraw your contributions at any time without penalty. You aren’t required to take distributions until you want to.

The limits of how much you can contribute to your Roth IRA are similar to traditional IRAs. As long as you have earned income that is equal to the amount of your contribution and you meet the income restrictions, you can open a Roth IRA. You are allowed to have a Roth IRA even if you already have a traditional IRA and a 401(k).

The biggest advantage to the Roth IRA is that your withdrawals are tax free. If you are a smart investor and manage your account successfully, this could really pay off for you. You can open either a traditional IRA or a Roth IRA through any brokerage firm, bank, credit union or mutual fund company.

You can either start a Roth IRA by opening a new account and funding it with new money or convert assets from a traditional IRA to a Roth. If you convert a traditional IRA to a Roth you will have to pay the taxes on the money before it goes into the Roth. You have to know how you will pay the tax on the earnings from the IRA. The money is taxed as ordinary income. You don’t necessarily want to use money from within the IRA to pay the taxes; you will sacrifice your investment potential by doing so. You can convert your IRA to a Roth IRA a piece at a time, giving you the ability to pay the taxes gradually.

Self-directed IRA

If you set an IRA with a brokerage it is considered a “self-directed” IRA. You decide how the money will be invested, in stocks, bonds, mutual funds, certificates of deposit or even in real estate.

Any brokerage can help you open a self-directed IRA. Brokerage websites have plenty of information on the necessary steps. You can either fund your IRA with new money or roll over a company-sponsored retirement plan into it. Make sure if you roll over your retirement plan that they send the check directly to the brokerage. If you receive the money in your name, you could be taxed and penalized by the IRS. The brokerage will give you all of the necessary details.

SEP-IRA (Simplified Employee Pension)

A SEP-IRA is a company sponsored IRA that can be opened by the smallest of businesses and the sole proprietor. With this plan, an employer can contribute to his or her own retirement plus to an employee’s existing IRA. The employee IRAs are owned and controlled by the employee. The employer is simply making contributions to the financial institution that maintains the IRA.

SEP-IRAs are subject to the same taxes and withdrawals penalties as are traditional IRAs. The employer receives a tax deduction for all contributions made. These IRAs are flexible. The employer doesn’t have to contribute on a regular schedule, every year.

SIMPLE IRA (Savings Incentive Match Plan for Employees)

Small businesses up to 100 or fewer employees who make at least $5,000 each can set up this company sponsored plan. This can be set up at a company designated financial institution or at any institution chosen by the employee. The SIMPLE is a savings incentive match plan. The employer matches or non-elective contributions to the employees plan.



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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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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.



retirement

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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