Important Steps in Preparing for Retirement
January 29, 2008
It is never too early to start thinking about and preparing for retirement. So many times young people think that they have a lifetime to think about retiring and then time gets away from them, leaving them with no retirement plan or options. Here are some items to consider about this very important time in your life.
Review your finances. Knowing where you stand today will help you design a plan for where you are going. If you are in debt up to your eyeballs, then apparently you are not prepared to retire. Right now, set a personal and family budget and include an amount for retirement. In order to maintain your current standard of living after you retire, you will require between 70% and 90% of your current income.
Review your current needs and goals. Knowing what you plan to do can give you some idea of what you will need in terms of money and health. So whether you plan to travel or stay home with the grandkids, start planning now.
Develop a healthy lifestyle. This is the perfect time to quit smoking and start exercising. Losing a few pounds can help many aging folks stay healthier and keep fitter.
Talk to your employer about your retirement plan now. Check to see what you can contribute and if your employer provides matching funds.
Discuss various retirement possibilities with your spouse. Understand each other’s plans and make sure that you have all appropriate legal papers signed.
Review your benefits and social security statement. If you have any questions, call to have them explained. Don’t put this off until later.
Open an IRA. You can check with your bank to see if you are eligible to open an IRA and get help you with the process.
Think about how you want to spend your retirement years. After retirement, you may want to take another job, volunteer, travel, or hobby. The amount of retirement income you’ll need will depend on what you want to do with your time.
These retirement preparation tips are not a guarantee that you’ll be ready for retirement, but they will start you thinking about the subject and how to make it easier. Many people actually start ‘living’ their lives after age 60. Who knows, retirement could be the best, most successful times of your life.
Find your home business idea today at http://realworkathomemombusinessideas.blogspot.com
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How Much Do You Need for Retirement
January 29, 2008
With an increasing number of people scheduled to begin retirement in the next few years, it is important to begin thinking about the subject. Even if you’re not near the age of retirement yet, it’s a good idea to begin thinking about how you plan to fund your retirement as soon as possible. The sooner you begin to plan for retirement the more you can be sure your retirement won’t be plagued by money issues.
So, how much money do you need for retirement? A lot of that answer, of course, depends on what plans you have for retirement. If you plan to travel, want to purchase a RV or you have similar specific plans, you will naturally need more money in order to fund your retirement. Above and beyond those expenses; however, it is important to think about your day to day essential needs.
For example, consider whether you will still owe any debt payments when you choose to retire. Of course, many of use would like to think that we’ll be out of debt by then but in reality you may still owe on a vehicle or credit card or even a house. Be sure to calculate those costs into the amount you need for retirement.
You’ll also need enough money to cover such costs as utilities, auto and home insurance, groceries and other miscellaneous expenses we all must pay on a month to month basis.
Healthcare will be an extremely important aspect of your retirement. Naturally, as we grow older our healthcare needs increase and that means spending more money. If you fail to fund your retirement in a sufficient manner, even one serious health problem could wipe out your retirement fund and you might find yourself facing the rest of your retirement with serious money problems. Just for your healthcare costs alone it’s a good idea to plan on budgeting at least $15,000 per year for every year of your retirement.
You also need to consider whether there will be expenses when you first retire that you’ll still need to cover such as support for aging parents (with life expectancy figures today, it’s definitely a possibility) as well as college education expenses for kids.
In addition, don’t forget miscellaneous costs which may pop up that we tend to forget. These costs include home repair costs, such as replacing a roof, purchasing another vehicle, etc.
After adding up all of the costs you’ll need to cover during retirement, don’t forget to take into consideration the effects of inflation. Figure on costs today rising an average of about 4% a year for every year you have left until retirement and then some.
Finally, don’t forget to give serious thought to how long you may need to fund your retirement. Quite surprisingly, many people tend to underestimate how long they’ll live and as a result run out of money. Don’t let that happen to you. The best rule of thumb is to assume you’ll live to at least age 90 and calculate for that.
Joe Kenny writes for SelectLoans.co.uk, a UK comparison site, visit us today for information on all loan topics including secured loans and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/
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Strategic Thinking For Business Owners For Successful Retirement
January 29, 2008
Small business owners know that running a small business requires constant attention. And small business owners, especially entrepreneurs, tend to work “in their business” rather than work “on their business.” And that is one reason why it should be no surprise that too many entrepreneurs and small business owners put their own financial planning squarely at the bottom of their “TO DO” lists. In fact, a survey conducted by Harris Interactive for ShareBuilder indicated that 47% of small business owners are not confident that they are prepared for retirement.
Using a strategic thinking approach to the subject of financial planning and retirement, there is a recognition and confirmation that small business owners and entrepreneurs have tremendous opportunities to remedy the lack of preparation for retirement, which incorporates the role of an exit strategy and succession plan. The small business owner has the opportunity to use strategic thinking in developing a well thought out retirement plan that includes strategies related to a company employee retirement plan; investments beyond re-investing in the business; diversified investments; an exit strategy and a succession plan. There are far too many business owners that are not considering the future of his or her business. Another fact from the survey by ShareBuilder shows that 60% of the business owners surveyed have NO PLANS to sell their business to help fund their retirement – but for other owners, such a sale can be a crucial part of a successful retirement plan.
Business owners need to develop a strategic plan for their retirement, especially when they make the commitment to count on selling their business to help fund their retirement. This means preparing a well-thought out exit strategy and succession plan. An article entitled, “Strategic Actions For A Strategically Structured Succession Planning For Company Leadership” can be found at (http://ezinearticles.com/?Strategic-Actions-For-A-Strategically-Structured-Succession-Planning-For-Company-Leadership&id=503696).
Your Strategic Thinking Business Coach has developed a list of actions to consider when developing your strategic retirement plan as a business owner.
1. Commit to making your retirement planning for you and your business a priority with a specific timeline.
2. Develop and define a clear and focused vision for you and your business in your retirement.
3. Develop a list of retirement goals that fit into your defined retirement vision.
4. Gather the necessary financial information for your business and any existing retirement plan information for your business.
5. Recruit and engage the professional services of a certified, experienced, respected and trusted financial adviser and planner.
6. Seek advice from other key advisers as part of your team for the development of your plan. This would include legal counsel, accounting and business coaching.
7. Develop the specifics of the retirement plan(s) for the company employees and for yourself. Review the draft plans with your team of advisers. Adopt the plans when you are satisfied they will meet your vision and goals and then present the plan(s) as appropriate (excluding the personal and confidential parts for yourself) to the company employees.
8. Implement the plan(s).
9. Monitor the plan(s) and make adjustments as required.
10. Continue working “on your business” and building more value.
Small business owners and entrepreneurs have some extraordinary opportunities to plan their retirement. And I would suggest that those great attributes of creativity, strategic thinking and planning and discipline that helped the owner build their business will help them create a strategic retirement plan that will get them to their vision.
Your Strategic Thinking Business Coach encourages you to fully realize the benefits of business coaching to strategically and effectively grown and mange your business. If you would like to learn more about how a strategic thinking business coach can facilitate and guide you in that endeavor, please contact Glenn Ebersole today through his website at www.businesscoach4u.com or by email at jgecoach@aol.com
Glenn Ebersole, Jr. is a multi-faceted professional, who is recognized as a visionary, guide and facilitator in the fields of business coaching, marketing, public relations, management, strategic planning and engineering. Glenn is the Founder and Chief Executive of two Lancaster, PA based consulting practices: The Renaissance Group, a creative marketing, public relations, strategic planning and business development consulting firm and J. G. Ebersole Associates, an independent professional engineering, marketing, and management consulting firm. He is a Certified Facilitator and serves as a business coach and a strategic planning facilitator and consultant to a diverse list of clients. Glenn is also the author of a monthly newsletter, “Glenn’s Guiding Lines – Thoughts From Your Strategic Thinking Business Coach” and has published more than 275 articles on business.
To find out more about the benefits & rewards of effectively working with a strategic thinking business coach, please contact Glenn Ebersole through his web site at http://www.businesscoach4u.com or jgecoach@aol.com
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Retirement Can Be the Best Years of Your Life
January 29, 2008
Millions of people reach retirement age every year. Sadly — too many of them simply do not know how to really enjoy themselves. Most people who retire are so used to getting up and going to work everyday that they simply fade into the hum drum lifestyle and lose out on all the is out there for them to enjoy. Retirement should be the best time of your life. Retirement should also be a time to save money rather than spend it all.
If you do not have the money to buy a big fancy motor home and travel around the country that is ok. You may not desire to travel, but most retirees seek to get out and try some new adventures when they retire. The biggest problem is that they do not know where to go or how to get there in a means they can afford. The average retired person joins the traditional clubs and travels to the RV places to see others who are seeking some fun and enjoyment. There are better ways to really enjoy the retirement life if you really want to get all that is available to you.
Before you buy that big expensive motor home you should research your options. The gas prices appear to be heading up and the rates for staying in RV parks are increasing every year. Then there is the trouble with insurance and maintenance with these big rigs. So, why not consider a comfortable car and travel that way. You would be surprised at how economically you could travel, and actually enjoy your retirement days more.
Retirement Is No Time for Stress
If you are worried that you won’t find enough to do if you are not staying in the RV parks you need to think again. There are so many events around that you could travel to. Take advantage of the local community information centers. You can usually contact chamber of commerce offices all over the US and find out about the events they have scheduled. There are so many wonderful and FREE events to attend. It is time to enjoy your retirement and get away from the stress.
For more information on Retirement try visiting Retirement-Life-Today.Com, a website that specializes in providing helpful tips, advice and retirement resources to include Retirement ideas.
Article Source: http://EzineArticles.com/?expert=Tom_Turner
Medicare, Social Security and Retirement
January 29, 2008
Everything keeps changing, how do I keep up? Why is there so many choices? This is common question and concerns of most seniors today. The cost of health and prescriptions is higher today for seniors, averaging over $500.00 a month.
With fixed incomes, and comfortable retirements slipping away. Retirement is re defining itself. The days of a lifetime pension and 401ks are being wiped out. You must think and live different than our Mothers and Fathers did before us. The nest egg is under attack with high health rates, limited 401k’s and lack of pension plans from former employment. Some day Social Security may not be available. What are we to do?
Washington State - 12/29/2005 - Medicare, Social Security and Retirement Today a person coming to retirement must study and understand their future goals. A plan must be in place. Some may have to work part time to assist their retirement funds, and some maybe able to live from rare pension plans and investments. Education is the key. Classes, Seminars and home study is available and necessary.
Here are a few items to cover:
- How do the changes for 2006 affect me?
- What do you need to understand about the new Medicare plans.
- How do I plan for retirement.
- Can you plan on your pension?
Business Subjects That affect Retirement:
- How do I manage my portfolio.
- What investment should you consider?
- What do you need to know about Social Security and Medicare.
There is a few sites provided for you to understand Social Security, Medicare and Retirement better, at http://www.medicare-search-online.com , http://www.socailsecuritydata.com and http://www.retirementonlinefind.com . You can also email ssn@nwcustomwebs.com with any of your questions.
Rangerrob of the Northwest.
A Northwest Outdoor Redneck, supporting friends and Family to enjoy the outdoor together. View Hunting, Fishing, Flyfishing, Kiting, Boating and much more at http://www.rangerrob.com.
Feel free to visit his web services at http://www.nwcustomwebs.com.
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Include Retirement Costs in the Cost of Living
January 29, 2008
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.
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Is Retirement Just a Convenient Invention?
January 29, 2008
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.
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Three Tips to Help Planning Retirement
January 29, 2008
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.
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Tax Credits for Retirement Savings
January 29, 2008
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.
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After-Tax Savings For Retirement
January 29, 2008
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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