Financial Planning For Retirement: For Worry-Free Retirement

Planning can be a tedious activity especially if you are planning for retirement. Many people realize how advantageous financial planning for retirement can be while others find it mysterious.

In fact, most experts say that for people who are only making enough money to make due payments in each month, then it means that they should start contemplating on how they can still make money even if they are already retired.

Surveys show that almost 75% of the American population is earning enough money to pay their monthly bills. 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.

What's more Social Security is not enough guaranteed income for retired people to live on. Actually, it is still a big question if one’s Social Security will still exist when the retirement day comes.

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. Visualize and calculate
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 that compensate 75% of the present amount that he or she is expected to take home.

2. It is important to seek the help of a financial planner or any person competent in financial planning.
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 goals.

About the Author
Henry Clark can show you how to make the most of your retirement years. Visit his website and learn more http://www.push-button-online-income.com/retirement

Retirement Planning For Dummies: What You Forgot To Include In Your Retirement Plans

Everyone knows that the best way to plan for your retirement is to make sure you have a 401K plan or something similar, so you can save enough money to live on in your golden years. Or is it? If you’ve only planned for your financial security, you have missed a huge and important step in your retirement planning.

Consider this: the average retirement age for Americans is 57.5, and life expectancy is 85 or older. This means the average retirement lasts 30 years or more. Sitting around and doing nothing might be relaxing for a while, but do you really want to spend 30 years gathering dust?

The most important thing you can do for your retirement planning doesn’t involve the financial aspect. Of course you need to make sure you’ll have enough money set aside to maintain your lifestyle, but beyond that, you have to fulfill your non-material needs. How are you going to spend your time? How will you remain satisfied and purpose-driven? The answers to these questions are the aspects too many people neglect to include in their retirement planning.
Your first step should be to determine these answers. There are a number of ways you can do this. Here are some tips on discovering what you really want out of your golden years and planning for more than just financial security:

* List everything that you have always wanted to do, but had to put on a back burner because you didn’t have the time. Is there a place you long to visit? A hobby you’ve wanted to pick up? An organization you’ve been thinking about joining?

* Don’t rule anything out because you think you’ll be “too old” for it. They say you’re only as old as you feel – and if you need proof, just look at how many people in their sixties and even seventies are sky diving, bungee jumping, and rock climbing!

* Consider working when you retire. It’s not as bizarre as it sounds – perhaps there is a place you’ve always wanted to work, but couldn’t make a career out of it because it didn’t pay enough. Retirement is the time to try it out and see what you’ve been missing.

* Think of your retirement as a beginning, rather than an ending. Once you leave the “real” workforce, you can start a whole new life of realizing your dreams.

When you decide on the non-financial course of your retirement, it’s a good idea to keep track of your vision. You may want to start a retirement journal and write down your goals. There are many things you can do now to have everything in place for your re-fired life! Find out what it’s going to take to accomplish your goals, and put down as much of the groundwork as possible between now and retirement time.

Also, keep in mind that it’s never too early -–or too late-– to start laying the foundation for your retirement planning. Once you’ve determined your vision for an ideal retirement that includes the realization of your dreams, you can start taking steps to achieve that vision no matter where you are in life.

About the Author
Dr. Cynthia Barnett is a Re-Firement Lifestyle Coach and the author of Prime Time Makeover: How to Make the Rest of Your Life the Best of Your Life. Visit her online at http://www.primetimemakeover.com for a free newsletter, special report, and to purchase the book.

Information Investment Planning Retirement-Achieve Your Retirement Goals

So you’re looking for information on investment for planning your retirement? The truth is, investing is the most important vehicle to help skyrocket you to achieving your financial goals. Without the power of compounding interest, you simply won’t have enough money for your retirement years.

The sad reality is that most people reach their retirement years without nearly enough money to support them and their lifestyle. Therefore, they either have to severely scale back their plans in their later years, or continue working just to make enough to survive.

All of this could have been easily avoided with some simple retirement and investment planning. So which investment vehicles are best to get you to your retirement goals? There really is no right or wrong answer to this question.

The truth is, many investors have made a fortune in many different fields, whether it be real sate investing, stock market, etc. So which is the right one for you? The best way is to pick one you are interested in, and focus on that.

However, the most important part is to pick one avenue of investment and focus on that. Don’t dabble in many fields; focus in on one, and stay with that.

For instance, if you decide to become a real estate investor, don’t also invest some in penny stocks, futures, foreign currency exchange, etc. It will simply eat away at your time you could be spending finding more real estate deals.

Now, here’s by far the most important component no matter which retirement planning investment vehicle you decide to go worth; find someone who’s already successful in that field, and model their success. For any result you want to achieve in the world, there are already people who’ve successfully done it.

Therefore, you could either stumble around, make a million mistakes until you learn how to be successful (like most do) or cut years off your learning curve by learning from others and modeling their success. Also, you might want to consider an investment in a financial retirement planning services company.

No, don’t completely surrender your financial future to these companies; however, these experienced companies can certainly give you some advice that will be helpful in helping you map out where you want to be in your retirement years and how to get there. Hopefully this information on investment for planning your retirement will help you achieve your goals, no matter how lofty they may be. Remember, don’t limit yourself in this process; think big, believe you can have it, and it will be yours

About the Author
For more great retirement planning investment advice, check out http://www.online-retirement-planning.com/, and achieve your retirement goals.

Retirement Communities Or Nursing Homes - Post Retirement Planning Beforehand

A proper, beforehand planning is necessary to safeguard self-dignity and to attain a secured after-retirement life. We all admit that.

Life is never the same after-retirement. Some people want to live close to the hard-earned friends or family whereas some people want to live unaided or in Nursing Homes, Retirement Communities, Home Health Care, Retirement Homes, Active Adult Communities, Senior Apartments. Whatever the reason be, some basic calculations are necessary for a better future.
Let us answer two simple and primary questions-

What is my primary consideration in the decision on where to reside?

It may be closeness to family, state retirement benefits, medical reasons, dream location, specific medical care or other reasons.

Which type of care am I searching?

It may be assisted living, nursing homes, retirement community (Active Adult), Residential Care, Home Health Care, CCRC, hospice care or some other types.
Individuals must explain each little question to themselves to live a hustle-free post retirement life. At times, the simplest of the task turns out to be an epic one.
For example, selecting the right nursing home is often a very hectic job as different nursing home specializes in different features.

Some minute details, in general, tend to be of high importance while selecting a nursing home for future, like the distance from a specific location. Apart from taking information on costs and fees, one must also note the types of care offered and types of aid accepted by that particular house. Even climbing stairs may be a bigger problem in future.

Budgeting is one of the most important aspects that need repeated critical assessment. The financial condition is not the same for everyone and one must sensibly figure out the budget on which he or she can comfortable sustain themselves for rest of life. Additional and hidden costs must be clarified beforehand.

One must take care of some seemingly insignificant issues that in future may become critical. It is always better if the home is in an easy-to-visit location for family and friends.
It is always recommended that the nursing homes should consult the family physician before consulting somebody else. The family members should make it sure that the nursing home uses or may use (if necessary) hospitals where the family physician practices.

Direct interactions with the present residents of the nursing home always provide a lot of information about the living standards and other characteristics.
The post retirement life should be self-planned to seize the most out of life, for which you have worked so hard so far.

About the Author
The author is a freelance writer and founder of ‘Revolutionary Visions’, Parent Corporation to the Retirement Care Guide, a user friendly directory (http://www.retirementcareguide.com ). He has spent years in researching and compiling data that retirement planners find hard to collect.

For Those Approaching Retirement Or In Retirement, Additional Income If Needed. Can No Longer Count On Social Security

As many workers approach retirement age they begin to look through their retirement account and are dismayed that what they have managed to save over the years will not come close to what they need to live on in their so-called golden years. The funds they established when they were in their 20’s or 30’s may not have considered the rising costs of housing, food and transportation and may not be sufficient to cover medical expenses, which have gone through the roof in the past few years.

As the initial anxiety subsides, they may realize there is a need for additional funding and with the dire condition of the Social Security fund, it probably cannot be counted on to make up the difference. Finding a higher paying job may be desirable, but probably unlikely, revealing the available option of finding additional sources of income. Many may believe they have worked too hard for too long to have to find a part-time job to help augment their retirement account, but many more are realizing there can be gold in the hills of home business opportunities.

While their retirement account may be lacking, the one thing they have built up over the years is experience, something many companies are eager to have, but lack the resources for full-time consultants. They are in the market for someone who can provide the expertise they may require and starting a part-time home based business offering the experience may help fund the pension plan as well as a new business train their new workers.

Lousy investments and falling real estate prices can strip value from a retirement fund but the experience is never lost. It may take some time to consider what a person is exceptional at doing and adjustments may be needed, depending on the industry seeking the advice, but management and executive experience can typically be translated into any industry with a little research and thought.

One area of concern in many businesses as well as among many young workers is personal development. Learning the proper techniques in areas such as decision making and project planning can be boon to their careers as well as to their business if they own it. Offering expertise in these areas can provide additional income that can be used to supplement the existing retirement account, bringing it closer to what will be needed if retirement becomes necessary.

Home based business experience is not necessary, but being able to work independently and being well organized is. Having the commitment and structure to be successful working a home business may take some personal development as having the commitment to succeed is different than having the needed dedication to meet any obligations made to others.

For those fortunate enough to find a position in which telecommuting is available on a part-time basis will allow additional funding for retirement without losing time away from home. While there will be time spent on your computer, you can still be at home, mostly establishing your own work schedule and hours, without the need to travel and be committed to someone else’s schedule.

Network marketing is a growing field of internet business as a web-based business that cannot be found on the internet is a failure waiting for its time to die. Many avenues of network marketing are just beginning to be realized and finding new ways of getting attention for a site will continue to grow as more sites are vying for the attention of the same potential customers.
High income careers can be built from a part time endeavor that was begun perhaps as a need to help fund a retirement account, but once it is found that high income opportunities do exist in a home based business, it may be possible to transfer the efforts to home.

About the Author
Jim Biscardi is owner of Dynamic Wealth Systems, LLC and writes on a variety of subjects. To learn more about this topic Jim recommends you visit: www.DynamicWealthSystems.com

Balancing Distributions Across Retirement Vehicles Can Add 5-8 ½ Years Or More To Your Retirement Dollars

The greatest retirement fear today is outliving your savings. Maximizing the number of years your retirement savings will last may be as simple as apportioning distributions among tax free and tax deferred retirement savings. Balancing tax rates on distributions against retirement savings growth rates can add 5 to 8 ½ years or more to your retirement, when you have both tax deferred (e.g., 401K) and tax free (e.g., ROTH IRA) retirement savings.

First we assume that both tax deferred and tax free accounts are growing at the same rate. If not, then the asset allocation of the accounts should probably be adjusted. Given that the tax deferred account is taxed upon distribution, we can effectively say that it grows at a slower rate than the tax free account. It would make sense then to take all distributions from the tax deferred account first, until there is nothing left, so as to let the tax free growth continue unmolested as long as possible.

However, under our current tax laws, tax deferred retirement savings are taxed upon distribution, using the same income tax brackets as any other earned income. This is a graduated scale, such that the marginal tax rate increases with income. E.g., the 10,000th dollar earned is taxed at 10% while the 20,000th dollar earned is taxed at 15% and the 70,000th dollar earned is taxed at 20% (married filing joint).

Considering a 3% inflation rate, a static tax table (using federal taxes only), and the desire to take the same net distributions annually, then taking all distributions first from the tax deferred accounts will result in paying higher and higher taxes over time. Paying the higher tax cuts into how long the money will last. The challenge then is to balance the taxes paid on distributions from tax deferred accounts against the growth of the tax free accounts. Selecting the correct amounts can easily make 5 to 8½ years of difference in how long the savings can be played out, as will be shown in the charts below.

In the following scenario, we take nine couples who have each accumulated $1,000,000, spread across tax deferred accounts (e.g., 401K or IRA) and tax free accounts (e.g., ROTH IRA). They need $60,000 per year, in after taxes in distributions, in today’s dollars.
Should the tax deferred money be used up to a specific tax bracket and tax free money used to round out the desired distribution? Does the apportionment of distributions differ depending on the allocation of tax deferred and tax free retirement savings?

The answer depends on the allocation of funds across tax deferred and tax free retirement savings. It also depends on the actual amounts (not covered in this article). The chart below compares these nine couples, showing the significant difference the selection of distribution source makes.

Tax Def Tax Free Distrib Timespan Distrib Timespan
$100,000 $900,000 $0 26.39 years $ 8,500 27.46
$200,000 $800,000 $0 24.89 years $16,500 26.93
$300,000 $700,000 $0 23.53 years $24,500 26.16
$400,000 $600,000 $0 22.23 years $33,000 25.43
$500,000 $500,000 $0 20.96 years $42,000 24.71
$600,000 $400,000 $0 19.79 years $51,000 24.02
$700,000 $300,000 $0 18.68 years $60,000 23.33
$800,000 $200,000 $0 17.61 years $69,000 22.58
$900,000 $100,000 $0 16.59 years $82,000 21.71

With $900,000 in tax deferred accounts and only $100,000 in tax free accounts, a 5-year difference exists depending from which accounts distributions are taken. Limiting distributions from the tax deferred account to only be $82,000 in any given year achieves a 21.71 year lifespan for their retirement dollars, whereas using tax free distributions first only achieves a 16.59 year lifespan – a 5.12 year difference. If the couple only needed $50,000 after tax distributions, the chart would show an 8 ½ year difference (not shown).

If the couple used only tax deferred income until it was exhausted, they would have had 21.54 years for their retirement money – a loss of only 0.17 years against their maximum. The lesson here is to err on the side of taking distributions from tax deferred accounts first. This is also significant as it is far easier to accumulate tax deferred savings. There are more stringent contribution limits to ROTH IRAs and not all companies support ROTH 401Ks. And you have to pay taxes at the very beginning in order to grow your money tax free. Different needs with respect to the available savings can result in over 1-year of difference; it still pays to pay attention. The greater the retirement savings and distribution requirements, the more important the balancing act.

Due to our tax code’s graduated tax brackets, properly apportioning distributions among tax free and tax deferred retirement savings can add 5 to 8 ½ years or more to your retirement. This varies with distribution needs and the amounts saved in differing retirement vehicles.

About the Author
Robert T. Boyer, Ph.D., works with professional advisors to perform comprehensive, collaborative, integrated financial planning. VP of San Diego’s Finest Real Estate, he developed the unique concept of Real Estate Financial Planning (REFP) to fill a void left by the financial planning industry. Including REFP enables the team to development a fully integrated financial plan.