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Include Retirement Costs in the Cost of Living

Often when discussing poverty and the cost of living, people refer to the general needs of humans. Most of all, we usually mention food, clothes, shelter, and healthcare. While those four general categories tend to cover the vast majority of what any given human needs, they do not cover everything. Namely, we often fail to mention the need to secure one’s retirement.

For example, if a working man earns enough income to pay for just his current food, clothes, shelter, and healthcare, we cannot truthfully call that man self-sufficiently non-poor, because that man will one day lose his ability to work. He needs to earn enough now to pay for his living expenses later, when he retires.

To accurately measure the cost of living, we must include the cost of maintaining a proper retirement fund.

These retirement costs could come in many forms, just as housing costs can come in many forms (e.g. rent vs. mortgage payments). For example, a person may own a retirement account in a bank or a 401K. In another example, a person may buy some type of retirement insurance, where the person pays a fee to a company during the person’s working life, and the company pays the person for the remainder of their life after retirement. In yet another example, some cultures make it so the younger generation of a family takes care of the older generation of that family; the costs remain essentially the same.

When calculating a general cost of living, we can of course find the basic price for the general costs of securing one’s retirement. In other words, we do not need to worry so much about each specific way to secure one’s retirement. In analogy, we use a general cost of food to calculate the cost of living, we do not worry about the specific store from which any given person may buy their food.

Scott Hughes writes about poverty on his Hunger and Poverty Blog which you can see at the following URL: http://millionsofmouths.com/blog/nfblog/

You can discuss these issues with him and others at the Hunger and Poverty Forums.

Article Source: http://EzineArticles.com/?expert=Scott_Hughes

Is Retirement Just a Convenient Invention?

Retirement is just a convenient invention created years ago as an avenue to clear the work place for new blood. Retirement is a stage of life that could, for some, last anywhere from 5 to as many as 20 years. The sooner you realize that retirement is just an extension of living, the better equipped you will be to plan for this event. Even though retirement is seen as a time to stop working, you might want to continue working well into your retirement years.

Money is important when planning for your retirement but you should also plan for the free time you will have once you retire. Many people say they do not have a lot of money; but the enjoyment they are getting from life is more than worth it.

Baby boomer retirees will place enormous demands on already strained Social Security resources – in fact, some suggest it will begin running cash deficits in 2018. In the future, fewer and fewer workers will receive regular pension checks, and Social Security simply won’t keep pace with inflation, especially health care inflation. After all, the headlines suggest that corporate America is chipping away at its leg of the proverbial retirement stool just as the personal savings rate hits all-time lows and Social Security’s long-term imbalances loom larger.

Since traditional pensions are rapidly disappearing, American workers increasingly need to take responsibility for their own retirement savings, usually through a 401k, an IRA or a similar tax-preferred investment. As a result, fewer retirees will receive the regular monthly pension checks that many employers once paid.

Benefits are based on the age at which the worker retires, and his/her average annual earnings. You also may be entitled to benefits based on the Social Security-covered earnings of your spouse or former spouse. Currently, even when you receive full benefits, Social Security only provides roughly 40 percent of pre-retirement income.

The cost of health care in retirement is large, because people tend to be ill more frequently in later life. Your retirement plans should go well beyond finances because a happy retirement is about much more than money. Even though retirement is seen as a time to stop working, you might want to continue working well into your retirement years.

I hope you will be one of those who can say “Retirement is better than I thought it was going to be”.

Peter Fisher is an expert Author and Publisherof Ready for Retirement? where you will finds tons of Retirement Facts to help you.

Article Source: http://EzineArticles.com/?expert=Peter_Fisher

Three Tips to Help Planning Retirement

Thinking about retirement is not usually on the top of our list of things to do. Then suddenly we reach the point in out life when retirement is close to becoming a reality. At that point, you really need help in planning your retirement. Sure, we think about it from time to time, but never take any action on our thoughts. Don’t let lack of action destroy your retirement, and leave you working well into your seventies. Use these three tips to help plan your retirement and to get started today.

1. Be Realistic about Retirement. Most people don’t take the time to sit down and figure out how much money they will need for their retirement. Here is an easy way to plan what you’ll need for retirement. Take the amount of money you are now living on per year, and subtract the amount of money you can save once the kids move out, and you downsize to a smaller home and car. Take that amount and multiply it by how many years you think you will need to live on your savings. The average life expectancy is 80 years.

2. Make a Budget. This will be one of the biggest helpers for planning retirement finances. Take out a sheet of paper and write down all your monthly expenses. Include your utilities, credit cards, groceries, and everything that you spend money on through the month. Make sure that you add a set amount for retirement savings. The next step is to subtract this amount from your take home income. Do you have anything left over? If you do, that is excellent. You can use these savings for a rainy day account.

3. Cut Back on Expenses. You already knew this was coming. You have a budget, and know what you are spending; now it’s time to see where you can cut back so you can put more money into your retirement account. You don’t have to cut out all the luxuries in your life, but you might find that by renting movies more often, rather than taking the family to the theater will let you enjoy more luxuries when you retire.

These three tips will help you get started saving for your retirement. Of course, there are many resources available to help planning for retirement. There are many aspects of retirement to consider as well- your health, your social life, your leisure activities and hobbies. By following these three tips, you will be taking action to help you plan for the best retirement possible.

Are you really ready to retire? Get our free report- How to Supercharge Your Retirement, and make sure you can enjoy the retirement you deserve. Visit http://www.RetirementPlanningHandbook.com today.

Article Source: http://EzineArticles.com/?expert=Brenda_Cyr

Tax Credits for Retirement Savings

It is a well-known fact that Americans are miserable failures when it comes to saving for retirement. Well, the government is offering tax credits to change this for some of us.

Tax Credits for Retirement Savings

Social security is going to be under siege as baby boomers hit retirements. Fortunately, many baby boomers have put away piles of cash in 401ks and IRAs. Regardless, most people fail to do all they can in this regard. In an attempt to motivate us taxpayers to save as much as we can for retirement, Uncle Sam is dangling tax credits before us like the proverbial carrot.

The tax credit in question is the Retirement Savings Contributions Credit. Qualify for it and you may be eligible to take a credit of $1,000 for singles and $2,000 if you’re filing jointly. The credit is eligible for those that make contributions to 401ks and retirement vehicles. The amount of the credit is determined on a sliding scale based on how much you make and contribute.

You can claim the retirement savings tax credit:

1. Individual taxpayers with incomes of $25,000 or less.

2. Individual taxpayers that are head of households and make $37,500 or less.

3. Married couples filing jointly who make $50,000 or less cumulatively.

There are some very minor restrictions regarding who is eligible for the tax credit. First, you have to be older than 18. Second, you can’t be a full time student. Finally, another dependent can’t claim you as a dependent on their tax returns.

Importantly, this tax credit is in addition to other tax advantages you gain from piling money into a retirement account. With a 401k, for instance, you can pound in pre-tax earnings, which cuts down your adjusted gross income for the tax year. Once you figure out your taxes, you can then deduct another $1,000 or so for the tax credit. Put another way, saving for your retirement is a no brainer.

The federal government is practically begging you to put away money for retirement. With this tax credit, there is absolutely no reason to fail to comply.

Richard A. Chapo is with BusinessTaxRecovery.com – providing information on tax and taxes. Visit us to read more tax articles and our new tax credits page.

Article Source: http://EzineArticles.com/?expert=Richard_Chapo

After-Tax Savings For Retirement

Most of us are familiar with 401k, 403b and IRA. These retirement saving programs help you get a tax break today on the money you contribute to each saving program. When you contribute money to these retirement saving programs, you end up reducing your taxable income amount for that particular year. You can withdraw the amount after the age stipulated by the plan and you are taxed according to the prevailing tax rate of the year of withdrawal.

However, there are after-tax saving programs where you can contribute money after you have paid the income tax. Here you do end up paying taxes for the year you have made the contribution but the money in the account is compounded year after year and you can begin to withdraw the money from the age of 59-1/2.

These after-tax retirement savings are called Roth IRA and the best part is that you are not taxed once you start making the withdrawals. There is also no mandatory withdrawal age limit of 70-1/2 years as there is with the 401k, 403b and other IRA retirement plans.

The benefits are immense with a Roth IRA and you can have a staggering amount of savings by the time you reach 65 years if you make a concerted effort to start saving from an early age. You do not have to make large after-tax contributions to reap benefits in your retirement. Just small monthly after-tax contributions to Roth IRA will ensure that you have a large tax-free savings to live your life comfortably after retirement.

Usually tax experts advice people to save using a combination of 401k or 403b and Roth IRA. This way you end up avoiding some taxes in the present as well in your retirement life while making sure you build a nest egg for your retirement without too much ado.

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Nigeria Stock Market, How To Make Money In Annuities, 401K Tax Penalty

Article Source: http://EzineArticles.com/?expert=Kum_Martin

Saving for Retirement – 7 Retirement Questions You Should Answer for Yourself

Are you concerned about how your life will be when you retire? Whether you have long established plans or you’re just getting started to be serious about retirement, here are seven questions you should answer for yourself.

1. When Do I Plan To Retire?

2. How Much Have I Saved Toward Retirement (401(K), Roth IRA, Passbook, Etc.)?

3. Is My Retirement Income Projected To Be Greater Then, Equal To, or Less Than

My Pre-Retirement Income?

4. Would I Like To Live In My Present Home?

5. Have I Made Any Long-Term Care Arrangements?

6. How Much Social Security Income Do I Expect To Receive?

7. How Do I Feel About Possibly Having To Live On Less Income In Retirement?

My purpose for writing this article is to alert as many people as possible to the financial realities of retirement for most people. There are various studies around that state that the number of people who will retire to fixed incomes that are less than their “working” income is as high as 85-95%. I refer to statistical studies primarily to indicate how pervasive the problem is, but you and I both know that the only person that really matters in studies is YOU. Are you in that 85-95% or not? Another of my objectives is to suggest to those who which to do something positive to move themselves toward financial freedom, some possibilities as to some actions that are available to you.

I am assuming that you have not yet retired, but retirement is finally something you feel deserves more of your attention. When you take a look at how much present income you receive and look at how much is used on necessities or near necessities, the amount remaining is what’s available to enjoy life and set aside for retirement. Now I really encourage you to not get down on yourself too hard if the remainder after expenses is not very large. The truth is most paycheck-to-paycheck employees simply DO NOT EARN ENOUGH income to live the lives they desire and to save for retirement as well.

I submit that you do not have to live on less in retirement. No matter where you are right now financially, you can build and enjoy a retirement lifestyle you desire…IF YOU REALLY WANT TO. Peace.

My name is Harold L. Lowe and I am a “former” retiree who, at age 62, saw my six-figure income position eliminated. I chose to retire and what I discovered was a shocking 50% reduction in my (combined pension and Social Security) income and what I call the “financial reality of retirement” faced by most paycheck-to-paycheck employees. You can get a copy of my Free, eye-opening Report “Financial Planning for Retirement is not Enough!” at my website: http://www.haroldllowe.com

Article Source: http://EzineArticles.com/?expert=Harold_L_Lowe

Retirement Cards

Retirement is a very memorable part of a person’s life and is a time to celebrate all the glorious achievements of the past. It is the time to say goodbye to all those special colleagues and move ahead. Organizations usually give a memento or a souvenir to their retirees as a demonstration of their appreciation for their invaluable services. A retirement card is often attached to these gifts. These cards are usually concise and may only include greetings.

Retirement cards are available in various styles, sizes, and shapes. They can be either very short and precise or elaborate. These cards can be of great help to people who lack the ability of expressing their feelings. They can simply purchase an appropriate retirement card and send it across to the retiree to wish a happy and peaceful retirement.

There are innumerable sites on the Internet that offer greeting cards for various occasions. Many sites offer various quotes, and witty one-liners that can be included in the retirement cards. Friends and colleagues can gift these cards to the retirees. Individuals can purchase retirement cards online from any of these websites. Individuals are required to select a suitable card from the catalog. The cards are divided in to categories that may include regular cards, humorous cards, and cards for a particular profession. Individuals can place an order for the required cards and pay via a debit or credit card. They can also send an electronic card via email. These cards are colorful and animated, and may also include melodious music. Electronic retirement cards are greatly preferred by most people as they are convenient and the sender is assured of prompt delivery. They have a better visual appeal as compared to ordinary cards and can be instantly sent around the world. Besides, a large number of service providers offer these cards for free. Individuals have the freedom of entering the text of their choice, thus giving it a personal touch.

Retirement cards can also be given to the retiree in retirement parties in case the invite specifically mentions not to bring any gifts.

Retirement provides detailed information on Retirement, Retirement Plans, Retirement Communities, Individual Retirement Accounts and more. Retirement is affiliated with Retirement Financial Planning.

Article Source: http://EzineArticles.com/?expert=Kevin_Stith

Retirement Calculator

How financially secured are you for your retirement? To help you find out what it takes to work towards a secure retirement or create your retirement plan, you can make use of retirement calculators. The retirement calculators, which are available as added feature to the many websites covering up retirement issues, are free of charge.

Planning carefully your retirement finances the earliest possible time, could mean better days ahead. Although many of our younger workers of today don’t give so much thought about retirement planning, sooner or later they will come to realize the importance of a secure retirement. And for those who already knew and wanted to prepare for it, retirement calculators can be an additional help to planning investing strategy in order that you will have enough to see you through retirement years. This is why retirement calculators are sometimes called retirement planner.

After you have made your calculations that show you’re on the right track does not mean that’s it! – You’re secure. No, not yet. It is advisable to update your calculations every three to five years since the results from your previous assumptions are likely to change every few years. Just remember that you shouldn’t rely your retirement planning on retirement calculators alone. Everything computed isn’t fixed. Are you ready to secure your golden days? Do your computation now. It’s very easy to find these retirement calculators and it’s just a mouse-click away. Just look it up on the internet and voila, you’re ready to go.

Using these retirement calculators is not very difficult. Most of the websites with this feature often have instructions how to work on them. Note that not all calculators have the same input requirements, so follow the instructions carefully. These are the basic information required to make your calculation:

Current Savings – The total savings you have set aside for your retirement.

Annual Retirement Income – The amount you need to live on once you retire (after taxes). This amount should cover all living expenses for a year and should not be less than 70 % of your current income if you want to maintain your current standard of living.

Annual Yield – It is your expected rate of return. For stocks or mutual funds, consult a prospectus.

Other Income – The amount you’ll enter here can include Social Security, employer-funded pension plans, or other external source of income.

Inflation Rate – This is the average expected annual inflation rate over the period encompassing your remaining working years and retirement years.

Current Age

Current Tax Rate – Enter your current federal tax bracket.

Retirement Age –Know the official retirement age. For those who were born in 1960 or later, 67is the official retirement age.

Retirement Tax Rate – The tax bracket you expect to be in, once you retire.

Withdraw Until Age – The number of years you need your retirement income.

Inflate Contributions – Do you like to increase your investment amounts to account for inflation over the length of the investment period? Clicking on Yes will increment the investment each year by the exact amount of inflation. Selecting No will make each investment an equal amount.

Are Annual Contributions Tax Sheltered – Yes, if your investments are in a tax deferred account such as a 401(k) plan or a retirement IRA. No, if your investments are subject to federal income tax each year.

Milos Pesic is a successful webmaster and owner of popular and comprehensive Retirement information site. For more articles and resources on Retirement related topics, Retirement Plans, Retirement Communities, Individual Retirement Accounts and more visit his site at:

=>http://retirement.need-to-know.com

Article Source: http://EzineArticles.com/?expert=Milos_Pesic

Military Retirement

Retirement benefits are extremely important. It is solely the best gratification one could ever have after so many years of working hard.

In the military, people who work for the government and for their respective community should likewise be entitled to receive the benefits that are due for them.

Basically, military retirement is available in three remuneration plans. These plans were authorized by the Congress, which are entitled for every military personnel who have rendered the needed services to the government and to the whole country as well.

Military retirement plans are unique on its basic concept inclusive of the service dates, in which the amount of retirement benefits will be based from.

These military retirement benefits involve the “primary service dates” that provides the DIEMS or the “Date of Initial Entry into Military Service” and the service date as stipulated in the Title 10, Section 1405 of the United States Code.

For a complete understanding of the benefits in military retirement, here is a list of the three remuneration plans.

1. DIEMS before September 8, 1980

For military personnel whose DIEMS is before September 8, 1980, the military retirement benefit is based on the product of the military personnel’s monthly income and the 2 ½% of the concerned personnel’s years of service.

This plan is known as the present military retirement plan.

2. DIEMS between September 8, 1980 and July 31, 1986

Any military personnel whose service dates falls between September 8, 1980 and July 31, 1986, the expected retirement pay is the product of the 2 ½ % of the personnel’s years of service and the average of a personnel’s “highest 36 months” of the basic take-home pay based on the days of active duty.

This military retirement plan is known as the “High 36/50 Percent Plan.”

3. DIEMS on or after August 1, 1986

Any military personnel whose DIEMS is on or after August 1, 1986, the amount of the expected retirement benefit is the product of 2 ½% of the personnel’s years of service, but less than 1% for every year of service that is below 30 years, and the average of the personnel’s maximum income on a 36-month remuneration.

This plan is called “High 36/40 Percent Plan.”

Indeed, any of these three plans will definitely give the military people enough financial aid by the time they retired from service.

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Article Source: http://EzineArticles.com/?expert=Alan_Lim

Investing for Senior Citizen Retirement

Senior citizen retirement could be an extended way off for you or it may represent something in the near future. Regardless of that amount of time, you without a doubt, need to begin saving up for it at once. Even so, preserving cash for retirement Is not what it used to be with the cost of living and the un-stableness of government social security.

Lets begin by having a look at the senior citizen retirement plan provided from your company. At one time, these programs were very well-grounded. Nonetheless, after scandals such as Enron and all that came after, folks aren’t as protected in their corporate retirement plans any longer. Whenever you decide not to commit in the company’s senior citizen retirement plan, you do possess other alternatives.

Initially, you could put money in stock markets, bond markets, mutual fund markets, CDs, or money market accounts for your retirement. You don’t need to express to anyone that your payoffs on these investment funds will be utilised for senior citizen retirement. Simply allow the money to mature over time, and once reliable investments achieve their maturity, reinvest them and proceed to allow the revenue to grow.

You may also begin an Individual Retirement Account (IRA). IRAs are very fashionable since the revenue isn’t assessed until you take out your cash. You might as well be capable of deducting your IRA contributions from your taxations that you owe. An individual senior citizen retirement account can be started at most financial institutions.

A different common type of senior citizen retirement vehicle is the 401-k plan. 401(ks) are commonly provided via employers, though you might be able to begin a 401-k plan) on your own. You had better talk with a retirement planner or accountant to assist you with this.

Whatever retirement investment you decide on, just be sure you decide on one! Once more, don’t rely on social security, corporate senior citizen retirement plans, or even an inheritance that might or might not materialize! Attend to your financial future from investments done today.

JD Stratis is a contributor to Equity Cash North Americas premiere program for protecting your hard-earned equity and creating Cash Flow with ZERO risk to your equity!

Article Source: http://EzineArticles.com/?expert=JD_Stratis

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