By Hubert Crowell
Retirement may sound like the best thing that could happen to a person, however there are two major factors that determine how successful retirement really is.
Wealth, how much will you need to retire in the style that you are accustom to? I was like most young people when I started out. Not thinking about retirement and trying to earn just enough to support a family. After eight full time jobs during six years and at age 27 with a family, a small house, I started to think about our future. My first goal was to land a stable job with a good company that had benefits.
Wealth should be measured by not only how much money you have, but property, retirement plans, life insurance and investments. I estimated that I would need to have a net worth of at least one million, taking into account inflation, in order to be able to retire at a comfortable life style. With a conservative wife, a good job, and some property purchases, I was able to reach my goal by age 62.
Our saving account was our home, any time we had any extra cash, I made extra payments on the home. I invested the minimum in the company retirement plan and later in life realized that I should have invested more. During the last 10 years I invested the maximum amount into the 401k plans that were offered.
Investment property accounted for about half our net worth. I attended free seminars on property investments and restrained from buying in on the sell pitch at the end. When the opportunity came up, we acquired a few houses and we are now in the process of selling them. Tax savings from rental property throughout the years has helped greatly when the budget was tight.
Giving to church and others has also played an important role in reaching our goal. We have tried to always give more than the 10% often mention in the Bible and have been repaid with fortune from unexpected sources. There is a saying that you cannot out give God, and I have found this to be true. However I must caution that the motivate must never be to expect something in return.
Mental Challenge, is where I have had the most problems. Retirement is a big change in life style and few of us are prepared to make that change.
I had a close friend in North Carolina that told me that the only reason that he kept working after acquiring millions in rental property was to have a reason to get up each morning. He had a job as a service technician and I trained him on many of the products we serviced. He was an entrepreneur always looking for an investment. I was attending a class in Rochester NY with him once when he made several thousand dollars by brokering a deal to supply a shortage of plywood in North Carolina with a surplus from New York. But he needed that job to give him a purpose in life and a reason to get up in the morning.
Volunteer work can fill that need also and I have Volunteered about two days a week, but all the things that I planned to do after retirement seemed to have gotten away from me. It seems that when you are busy working, you make time for the pleasures of life, but when you have all the time you need, you seem to put off a lot of things.
How many people do you know that have retired, only to die of a heart attack or just disappear into their homes?
It is also hard to let go of those hard earned savings and start spending after retirement. My financial adviser once told me that I was putting quite a stress on my retirement funds by drawing out 8% to 10% each year. This may be true, but if I wait until I am too old, I may not be able to enjoy the things that I wanted to do after retirement. It is really hard to find that balance in maintaining the right amount or even knowing what the right amount is.
I have found that I require more income now that I have retired than I expected. But I am thankful that property values have increased and the economy has done so well to supply those needs without reducing my net worth.
It is never too late to plan for retirement, set a goal that takes into account inflation. Stay diversified with property and mutual funds and avoid "get rich quick" schemes. Have plans to deal with the mental challenge of retirement as well as the financial challenge.
About the Author: Hubert Crowell, Cave Explorer
After working in service for 23 years with Eastman Kodak Company as a service person, technical support and training specialist, followed by another 13 years working for other companies in the service field, I have decided to share my ideals on improving the service department. I would like to thank Jack Ingram, my supervisor at Eastman Kodak Company for the encouragement and guidance until his retirement. I would also like to thank Barco Projection Systems and all the great employees that worked with me for the last seven years before I retired.
For complete paper on The Service Department, Please visit my web site at: http://hucosystems.com/
I have started writing as a hobby and plan to write about my life, work, hobbies, religion and many other things of interest to me and maybe others will enjoy also.
For a complete viewing of my articles with photos please visit my article web page at:
http://hubertcrowell.name/
Saturday, December 30, 2006
Friday, December 29, 2006
How to retire rich and live a happy life.
By Alex Best
As many other teenagers, about 25 years ago, I thought about the future. From the very early point of my life I always enjoyed working, but I always wanted to have an option of not having to work. Twenty five years later, I find myself still working and enjoying my work, but I also feel that I am moving closer to my goal. My secrets are as following:
1) Select the type of work that you enjoy.
2) Be the best at what you do.
3) Spend less than you earn.
4) Education yourself about investment.
Select the type of work that you enjoy: This is very important. Most of us have to work for a living, so we might as well do what we like to do best. In my case that means working with computers and technology, while interacting with other smart people. If you are doing the type of work that you like, you might even feel a little guilty getting paid for it (do not worry - take the money). I recall letting my employer know a few years ago, that I would be willing to do the work that they were paying me for free, because it was a lot of fun and I was learning many new things in the process.
Be the best at what you do. If you decided to do the type of work that you enjoy you might as well be the very best at what you do. Regarding of your current role or position always act like the CEO. Make sure that you spend your time very focused on key value-added activities. Never just go through the motions, be very deliberate about your actions. That type of persistence gets notices and pays off big time in the long run.
Spend less than what you earn. I met people that earned six digit incomes year after year and they were always broke. Do not get me wrong, they owned nice homes and had fancy cars, but they really were not wealthy. They always managed to spend more than they earned. I also had a pleasure of meeting people that did not make a very high income, but they managed to always make saving a priority. If you can get yourself into a habit of spending less than you are earning (and investing the rest), you will find yourself not worrying about your financial future. That’s one of the sure ways to live a happy life. After all, who want to worry about their financial future all the time.
Education your self: We are lucky. Today we can get tons of free and almost free information. We have access to magazines such as Money, SmartMoney, Kiplinger’s Personal Finance, Bottom Line Personal, Forbes, and Forture - most of these cost $10 to $20 per year and are available in your local library. There are tons of blogs and financial websites, and the there are book and audio books. Education yourself using the resources above will help you generate more yield from your savings. After all it takes a lot of work to generate money, and even more work to get your money to work for you.
Good Luck!
As many other teenagers, about 25 years ago, I thought about the future. From the very early point of my life I always enjoyed working, but I always wanted to have an option of not having to work. Twenty five years later, I find myself still working and enjoying my work, but I also feel that I am moving closer to my goal. My secrets are as following:
1) Select the type of work that you enjoy.
2) Be the best at what you do.
3) Spend less than you earn.
4) Education yourself about investment.
Select the type of work that you enjoy: This is very important. Most of us have to work for a living, so we might as well do what we like to do best. In my case that means working with computers and technology, while interacting with other smart people. If you are doing the type of work that you like, you might even feel a little guilty getting paid for it (do not worry - take the money). I recall letting my employer know a few years ago, that I would be willing to do the work that they were paying me for free, because it was a lot of fun and I was learning many new things in the process.
Be the best at what you do. If you decided to do the type of work that you enjoy you might as well be the very best at what you do. Regarding of your current role or position always act like the CEO. Make sure that you spend your time very focused on key value-added activities. Never just go through the motions, be very deliberate about your actions. That type of persistence gets notices and pays off big time in the long run.
Spend less than what you earn. I met people that earned six digit incomes year after year and they were always broke. Do not get me wrong, they owned nice homes and had fancy cars, but they really were not wealthy. They always managed to spend more than they earned. I also had a pleasure of meeting people that did not make a very high income, but they managed to always make saving a priority. If you can get yourself into a habit of spending less than you are earning (and investing the rest), you will find yourself not worrying about your financial future. That’s one of the sure ways to live a happy life. After all, who want to worry about their financial future all the time.
Education your self: We are lucky. Today we can get tons of free and almost free information. We have access to magazines such as Money, SmartMoney, Kiplinger’s Personal Finance, Bottom Line Personal, Forbes, and Forture - most of these cost $10 to $20 per year and are available in your local library. There are tons of blogs and financial websites, and the there are book and audio books. Education yourself using the resources above will help you generate more yield from your savings. After all it takes a lot of work to generate money, and even more work to get your money to work for you.
Good Luck!
Monday, December 25, 2006
Active Adult Hometown Retirement Options by Robert Flournoy
Retiring today isn't the same as it was a generation ago, and the new housing market is changing to reflect that. Today's active adult communities can be found in locations far from traditional areas like Florida and California. They are geared to the rising numbers of retiring boomers who have discovered that they want the advantages of living in 55+ communities, but don't necessarily want to leave the towns where they've lived for years.
Contributing to the popularity of these homes is the desire to be close to family and friends. Another consideration is the high cost of housing in the more popular retirement communities, where costs have skyrocketed due to demand and the shortage of property.
One of the most successful developers in this niche market is Pulte Homes, which now has active adult retirement communities in over seventeen states under the name Del Webb Communities. Each of these developments includes lifestyle directors, professional landscapers, snow removal and homeowners associations. Pulte projects that they will have over one hundred active adult communities by 2008.
Because of their increasing popularity, more home builders are jumping on the bandwagon, developing their own style of 55+ communities for active seniors who tend to have disposable income and expect plenty of amenities. With over 75 million retirees reaching their golden years, it's a market that can be very profitable.
The typical active adult retirement community offers one-story homes that are wheel-chair accessible for future needs while offering all the extras of fine living. Between 400 and 600 homes, most two- or three- bedroom, have distinctive design and curbside appeal. Also typical are spacious clubhouses for parties and meetings, health clubs, swimming pools and a variety of recreational facilities from golf courses to tennis courts.
Developers prefer to fill these new active adult communities with local residents who are familiar with the area and are looking to stay close to family and friends. Although some communities are wary of adding large developments, active adult communities seem to be an exception.
Active adult retirement communities contribute significantly to local revenue because of the purchasing power of retirees and use fewer resources than many other projects with the same number of homes because most houses are occupied by couples or singles rather than families with children. Residents tend to spend more, volunteer more and they don't overload school districts.
Active adult communities in retirees' home states are becoming increasingly popular for another reason, too. Many people today reach retirement age and don't want to stop working. They may continue to work and be very active, but no longer want to take care of a large yard or have to shovel snow. Community living is the perfect balance, providing spacious living so that they can continue to entertain and invite their families to visit while requiring less upkeep. With hundreds of other retirees in most active adult retirement communities, residents also have plenty of friends to socialize with - and most likely they will know some of them from their hometown.
Contributing to the popularity of these homes is the desire to be close to family and friends. Another consideration is the high cost of housing in the more popular retirement communities, where costs have skyrocketed due to demand and the shortage of property.
One of the most successful developers in this niche market is Pulte Homes, which now has active adult retirement communities in over seventeen states under the name Del Webb Communities. Each of these developments includes lifestyle directors, professional landscapers, snow removal and homeowners associations. Pulte projects that they will have over one hundred active adult communities by 2008.
Because of their increasing popularity, more home builders are jumping on the bandwagon, developing their own style of 55+ communities for active seniors who tend to have disposable income and expect plenty of amenities. With over 75 million retirees reaching their golden years, it's a market that can be very profitable.
The typical active adult retirement community offers one-story homes that are wheel-chair accessible for future needs while offering all the extras of fine living. Between 400 and 600 homes, most two- or three- bedroom, have distinctive design and curbside appeal. Also typical are spacious clubhouses for parties and meetings, health clubs, swimming pools and a variety of recreational facilities from golf courses to tennis courts.
Developers prefer to fill these new active adult communities with local residents who are familiar with the area and are looking to stay close to family and friends. Although some communities are wary of adding large developments, active adult communities seem to be an exception.
Active adult retirement communities contribute significantly to local revenue because of the purchasing power of retirees and use fewer resources than many other projects with the same number of homes because most houses are occupied by couples or singles rather than families with children. Residents tend to spend more, volunteer more and they don't overload school districts.
Active adult communities in retirees' home states are becoming increasingly popular for another reason, too. Many people today reach retirement age and don't want to stop working. They may continue to work and be very active, but no longer want to take care of a large yard or have to shovel snow. Community living is the perfect balance, providing spacious living so that they can continue to entertain and invite their families to visit while requiring less upkeep. With hundreds of other retirees in most active adult retirement communities, residents also have plenty of friends to socialize with - and most likely they will know some of them from their hometown.
Sunday, December 24, 2006
401(k) Retirement Plan by Terry Bytheway
The cornerstone of retirement savings for many people today, the 401(k) plan is a savings vehicle that requires a hands-on approach - which is why we are investing our time and money (intellect = money) in describing its features as fully as possible, so as for you to clearly understand and imbibe them. Ready? If you forgot your multivitamins today please have them before we continue.
Well, ready or not, here we come!
The 401(k) plan makes it easy and convenient for you to save money for retirement. Once you enroll, your contributions are automatically deducted from your paycheck before you even get to see it. This forces a strict savings discipline on you usually an absolute necessity if you're not good at looking to the future. Since you are planning to pass through the retirement stage of your life in style instead of as a pauper (and it's hard to foresee this and save when you receive a full pay-check), this is a real advantage that will help make your retirement as comfortable as possible. If you're using this plan, you may even retire at age 55 and gain full access to your money, penalty-free! This, in part, is a semblance of the sheer beauty of the plan. Aren't we poetic?!
Do remember that your contributions deducted from the paycheck are tax-deferred, thereby decreasing your current income tax. (That news calls for a pat on our back!) However, there is a limit to how much you may contribute to a 401(k). This limit is set by the Congress and set forth in the Internal Revenue Code. Your employer, too, may limit your contributions to a percentage of your salary, depending on how much he really likes you. Additionally, he may also choose to match all or a part of your contribution. (Yes, it's time for you to go through your company's policies regarding the plan if you haven't already!) It's also time to polish those rusty apple polishing skills - pun intended!
Most 401(k) plans provide you with a range of investment options, including stock funds, bond funds, balanced funds, international funds, and company stock. You may decide (on your own) how your contributions are distributed among the plan's offerings by considering your long-term financial objectives, your tolerance for risk, and how close you are to retirement age. We do not advise you to fear risky investments since those are the ones making the greatest amount of money. Others may think differently and suggest that a more conservative allocation strategy is ideal as you get older. Don't pay too much attention to those behind the times financial advisors; they're all ageist!
Regardless of your allocation strategy, it is critical to closely monitor the progress of your 401(k) plan. The plan is required by law to provide you with an annual statement in order to assist you with the management. Many plans will also provide you with quarterly statements, online access, and toll-free numbers offering 24/7 access to your current balance.
Each 401(k) plan also specifies when and how often you can make changes to your investments. While some plans permit you to make daily changes, others allow a limited number of transactions per year. At any rate, you are responsible for checking up on your plan's performance and making allocation changes whenever deemed appropriate. Please make sure you're not smashed on the day you decide to make those changes!
Certain 401(k) plans also allow you to access your savings in case of a financial emergency before reaching the age of eligibility. This access may come through a loan (with interest) or a hardship withdrawal. In case of a hardship withdrawal you will have to pay ordinary income tax on the amount withdrawn and pay a 10% penalty to the government if you don't meet one of the following exceptions: (1) purchasing a principal residence; (2) avoiding eviction from your present residence; (3) paying tuition for yourself, your spouse, children or dependents; (4) funeral expenses for a family member; and (5) medical expenses exceeding 7.5% of your AGI.
Oh and we lied when we said that the 401(k) plan always permits you to make penalty-free withdrawals if you retire at age 55. While it is true that you may make such withdrawals at this particular age, it is also correct that certain 401(k) plans only allow you penalty-free access to your savings at age 59.5 years. Again, it is for you to choose the plan that meets your needs. Just remember that by April 1 following the year in which you turn 70.5 years old or retire (whichever is later), it is obligatory to begin withdrawing from your 401(k). So let's hope you will have so much money coming in that you won't have to withdraw before turning 70.5! Yes, were also finding it a little odd that we have to refer to ages in decimals (who says seventy point five ?!)- But that's how it goes, my friend!
Well, ready or not, here we come!
The 401(k) plan makes it easy and convenient for you to save money for retirement. Once you enroll, your contributions are automatically deducted from your paycheck before you even get to see it. This forces a strict savings discipline on you usually an absolute necessity if you're not good at looking to the future. Since you are planning to pass through the retirement stage of your life in style instead of as a pauper (and it's hard to foresee this and save when you receive a full pay-check), this is a real advantage that will help make your retirement as comfortable as possible. If you're using this plan, you may even retire at age 55 and gain full access to your money, penalty-free! This, in part, is a semblance of the sheer beauty of the plan. Aren't we poetic?!
Do remember that your contributions deducted from the paycheck are tax-deferred, thereby decreasing your current income tax. (That news calls for a pat on our back!) However, there is a limit to how much you may contribute to a 401(k). This limit is set by the Congress and set forth in the Internal Revenue Code. Your employer, too, may limit your contributions to a percentage of your salary, depending on how much he really likes you. Additionally, he may also choose to match all or a part of your contribution. (Yes, it's time for you to go through your company's policies regarding the plan if you haven't already!) It's also time to polish those rusty apple polishing skills - pun intended!
Most 401(k) plans provide you with a range of investment options, including stock funds, bond funds, balanced funds, international funds, and company stock. You may decide (on your own) how your contributions are distributed among the plan's offerings by considering your long-term financial objectives, your tolerance for risk, and how close you are to retirement age. We do not advise you to fear risky investments since those are the ones making the greatest amount of money. Others may think differently and suggest that a more conservative allocation strategy is ideal as you get older. Don't pay too much attention to those behind the times financial advisors; they're all ageist!
Regardless of your allocation strategy, it is critical to closely monitor the progress of your 401(k) plan. The plan is required by law to provide you with an annual statement in order to assist you with the management. Many plans will also provide you with quarterly statements, online access, and toll-free numbers offering 24/7 access to your current balance.
Each 401(k) plan also specifies when and how often you can make changes to your investments. While some plans permit you to make daily changes, others allow a limited number of transactions per year. At any rate, you are responsible for checking up on your plan's performance and making allocation changes whenever deemed appropriate. Please make sure you're not smashed on the day you decide to make those changes!
Certain 401(k) plans also allow you to access your savings in case of a financial emergency before reaching the age of eligibility. This access may come through a loan (with interest) or a hardship withdrawal. In case of a hardship withdrawal you will have to pay ordinary income tax on the amount withdrawn and pay a 10% penalty to the government if you don't meet one of the following exceptions: (1) purchasing a principal residence; (2) avoiding eviction from your present residence; (3) paying tuition for yourself, your spouse, children or dependents; (4) funeral expenses for a family member; and (5) medical expenses exceeding 7.5% of your AGI.
Oh and we lied when we said that the 401(k) plan always permits you to make penalty-free withdrawals if you retire at age 55. While it is true that you may make such withdrawals at this particular age, it is also correct that certain 401(k) plans only allow you penalty-free access to your savings at age 59.5 years. Again, it is for you to choose the plan that meets your needs. Just remember that by April 1 following the year in which you turn 70.5 years old or retire (whichever is later), it is obligatory to begin withdrawing from your 401(k). So let's hope you will have so much money coming in that you won't have to withdraw before turning 70.5! Yes, were also finding it a little odd that we have to refer to ages in decimals (who says seventy point five ?!)- But that's how it goes, my friend!
Thursday, December 21, 2006
The Golden Years: Planning for Retirement
By Randy John
It is easy for an adult to ask a child what they want to do when they grow up. There are limitless possibilities available to them. When you grow older, this question should still be asked, even beyond the work force.
There are several different things that should be considered for you to fully enjoy the later years of your life. If you want to do everything right, you should begin retirement planning now. When you are planning for your retirement, you want to make sure that you have a good
understanding of what you want to do. Whether it is staying at home with the grandkids, or seeing the four corners of the earth, it can make a difference in what you decide to do now. Not only do you want to consider what you want to do, but also what you will need to do if something comes up.
For instance, if you have a health problem when you are older, you will want to make sure that it is taken care of without too many complications because you weren’t prepared. By looking at all of the angles and possibilities for old age, you can be certain to have an easier time when you get to this stage of life.
If you are closer to the age of retirement, planning can become something completely different than what you would consider at a younger age. You want to make sure that those that are close to you understand what your plans are and how they fit into them.
For example, if you are married, you want to make sure that your spouse has some of the same retirement goals that you do, allowing you to prevent misunderstandings in the future. You will want to be open to the possibilities and make sure that those around you also understand what these possibilities are. This will allow you to start on the right foot after your work days are over.
Beyond your personal retirement goals and the goals that you set with friends and family are ways to prepare for the set of years that you will have. You can best do this by understanding financial goals and knowing what you will want or need. This will vary according to what you want to do in that set of years. You should also keep in mind that the economy and value of money is different now then it will be by the time you retire.
Because of this, you may want to consider opening a retirement account, such as a 401K or a retirement plan from your employer. This will allow you to control the value amount of your money over the years towards retirement.
For those that are working towards retirement, it is never too soon to begin your retirement planning. From your personal goals, understandings with others about these goals, and logical steps to take, you can be certain to enjoy this time of your life. By beginning your retirement planning now, you can expect to live out the best of your golden age.
It is easy for an adult to ask a child what they want to do when they grow up. There are limitless possibilities available to them. When you grow older, this question should still be asked, even beyond the work force.
There are several different things that should be considered for you to fully enjoy the later years of your life. If you want to do everything right, you should begin retirement planning now. When you are planning for your retirement, you want to make sure that you have a good
understanding of what you want to do. Whether it is staying at home with the grandkids, or seeing the four corners of the earth, it can make a difference in what you decide to do now. Not only do you want to consider what you want to do, but also what you will need to do if something comes up.
For instance, if you have a health problem when you are older, you will want to make sure that it is taken care of without too many complications because you weren’t prepared. By looking at all of the angles and possibilities for old age, you can be certain to have an easier time when you get to this stage of life.
If you are closer to the age of retirement, planning can become something completely different than what you would consider at a younger age. You want to make sure that those that are close to you understand what your plans are and how they fit into them.
For example, if you are married, you want to make sure that your spouse has some of the same retirement goals that you do, allowing you to prevent misunderstandings in the future. You will want to be open to the possibilities and make sure that those around you also understand what these possibilities are. This will allow you to start on the right foot after your work days are over.
Beyond your personal retirement goals and the goals that you set with friends and family are ways to prepare for the set of years that you will have. You can best do this by understanding financial goals and knowing what you will want or need. This will vary according to what you want to do in that set of years. You should also keep in mind that the economy and value of money is different now then it will be by the time you retire.
Because of this, you may want to consider opening a retirement account, such as a 401K or a retirement plan from your employer. This will allow you to control the value amount of your money over the years towards retirement.
For those that are working towards retirement, it is never too soon to begin your retirement planning. From your personal goals, understandings with others about these goals, and logical steps to take, you can be certain to enjoy this time of your life. By beginning your retirement planning now, you can expect to live out the best of your golden age.
Thursday, December 14, 2006
Blooming Boomers - Women and Retirement
By Carol Gegner
Is your retirement looming off in the not too distant future? Do you have dreams of a life filled with rest and relaxation? Perhaps you envision vacationing year round. Those images sound pretty idyllic, especially if you are currently working long hours and feeling the stress and strain of your job. Working women are continually being stretched in a myriad of directions. That often translates into putting retirement planning and plans for retirement on the back burner of life.
Do you know that Baby Boomers are retiring at the rate of 10,000 every day in the United States! The oldest boomer is now 58 years old; the youngest is 40. They number 76 million in our country. Are you in that number?
The boomers have had a huge impact in our country. The first wave of baby boomers filled up our schools in the 50’s. They changed campus politics in the 60’s with their protests, marches and sit-ins. They were entering the work force in the 70’s and 80’s. The 90’s brought changes to the workplace such as flextime and family leave time. Now boomers are entering the retirement phase of life. They are living longer, retiring earlier and their focus is on lifestyle, not age. Imagine the impact they will have on retirement!
Boomers are redefining retirement as a new career life transition. However, most aren’t prepared for managing that transition. More time is spent on planning a vacation than on the next thirty years beyond retirement! Yes, many have been preparing financially with contributions to their 401K’s, Roth IRA’s, etc. However, retirement is more than finances.
There is the human side of retirement. For retirement to be truly successful people need to embrace the idea of life planning. How can we workers replace the function that work has played in our lives? One of the benefits of work is remuneration. We get paid for what we do. It gives us a sense of financial security.
But work provides us with more benefits than just remuneration. It helps us with the following: time management, socialization, a sense of purpose and status. Let’s take a closer look at those benefits.
Work gives structure to our life by managing our time. At times, it over manages our time and leaves little time for fun. Through our work we have agendas and schedules to follow. We know where we are supposed to be and what we are supposed to do. It keeps us organized.
At work we socialize with our co-workers and clients. We form and develop relationships that give us a sense of connection and belonging. We spend our time interacting and communicating with others to get the work done. We have a sense of camaraderie.
Many of us receive the benefit of status from our work. Our sense of personal worth and identity are derived from work. We experience a clear picture of who we are and what we do. We get recognition for what we do.
Work provides us with a sense of purpose. That purpose gives meaning to our lives because we are helping others in some way. We receive some qualitative measure of satisfaction in our life.
How will the functions of work be replaced when you retire? How will you get fulfilled? Those above mentioned benefits of work are just one aspect of what life planning is all about. There are fourteen other factors to consider when preparing for retirement. For example, how will you define who you are when you aren’t working? How adaptable are you to making changes in your life? How well do you rely your own internal sense for guidance and direction? These are important questions to consider when thinking about what retirement means to you.
Retirement is a complicated process that requires planning and introspection. It’s not just about the money. There are important social, mental and physical implications as well.
Many of you won’t follow the traditional model of retirement. Some will continue working full time at something you truly enjoy while others will work part time because you need the money. Perhaps you will start your own business or volunteer your time to worthy causes. As a Blooming Baby Boomer you probably won’t spend the next thirty years sitting and watching life pass you by. This is the age of a new retirement.
Is it time for you to give some attention to your future retirement? Vacationing year round may not be the solution that puts genuine meaning in the next phase your life. Don’t short change the next thirty years of your life. You’ll want to continue blooming!
Is your retirement looming off in the not too distant future? Do you have dreams of a life filled with rest and relaxation? Perhaps you envision vacationing year round. Those images sound pretty idyllic, especially if you are currently working long hours and feeling the stress and strain of your job. Working women are continually being stretched in a myriad of directions. That often translates into putting retirement planning and plans for retirement on the back burner of life.
Do you know that Baby Boomers are retiring at the rate of 10,000 every day in the United States! The oldest boomer is now 58 years old; the youngest is 40. They number 76 million in our country. Are you in that number?
The boomers have had a huge impact in our country. The first wave of baby boomers filled up our schools in the 50’s. They changed campus politics in the 60’s with their protests, marches and sit-ins. They were entering the work force in the 70’s and 80’s. The 90’s brought changes to the workplace such as flextime and family leave time. Now boomers are entering the retirement phase of life. They are living longer, retiring earlier and their focus is on lifestyle, not age. Imagine the impact they will have on retirement!
Boomers are redefining retirement as a new career life transition. However, most aren’t prepared for managing that transition. More time is spent on planning a vacation than on the next thirty years beyond retirement! Yes, many have been preparing financially with contributions to their 401K’s, Roth IRA’s, etc. However, retirement is more than finances.
There is the human side of retirement. For retirement to be truly successful people need to embrace the idea of life planning. How can we workers replace the function that work has played in our lives? One of the benefits of work is remuneration. We get paid for what we do. It gives us a sense of financial security.
But work provides us with more benefits than just remuneration. It helps us with the following: time management, socialization, a sense of purpose and status. Let’s take a closer look at those benefits.
Work gives structure to our life by managing our time. At times, it over manages our time and leaves little time for fun. Through our work we have agendas and schedules to follow. We know where we are supposed to be and what we are supposed to do. It keeps us organized.
At work we socialize with our co-workers and clients. We form and develop relationships that give us a sense of connection and belonging. We spend our time interacting and communicating with others to get the work done. We have a sense of camaraderie.
Many of us receive the benefit of status from our work. Our sense of personal worth and identity are derived from work. We experience a clear picture of who we are and what we do. We get recognition for what we do.
Work provides us with a sense of purpose. That purpose gives meaning to our lives because we are helping others in some way. We receive some qualitative measure of satisfaction in our life.
How will the functions of work be replaced when you retire? How will you get fulfilled? Those above mentioned benefits of work are just one aspect of what life planning is all about. There are fourteen other factors to consider when preparing for retirement. For example, how will you define who you are when you aren’t working? How adaptable are you to making changes in your life? How well do you rely your own internal sense for guidance and direction? These are important questions to consider when thinking about what retirement means to you.
Retirement is a complicated process that requires planning and introspection. It’s not just about the money. There are important social, mental and physical implications as well.
Many of you won’t follow the traditional model of retirement. Some will continue working full time at something you truly enjoy while others will work part time because you need the money. Perhaps you will start your own business or volunteer your time to worthy causes. As a Blooming Baby Boomer you probably won’t spend the next thirty years sitting and watching life pass you by. This is the age of a new retirement.
Is it time for you to give some attention to your future retirement? Vacationing year round may not be the solution that puts genuine meaning in the next phase your life. Don’t short change the next thirty years of your life. You’ll want to continue blooming!
Monday, November 27, 2006
Building a retirement fund
by Chris Rohrer
Are you worried about what you are going to do for retirement? Have you even begun to save money for when you retire? These are questions most people say no to, because they have yet to look into their retirement.
In today's world your retirement fund is going to be what will support you the rest of you life after you work, and sadly younger adults will no longer be able to get social security. They will have to either have money saved, or have some type of money in a fund or stock market.
I have been doing a lot of research on loan programs, and forex trading looking for other ways to help build my retirement fund. I have come to find that loaning money, and allowing others to trade it for you, and make your money work for you is one of the best ways to help start building a nest egg.
The hard part for most people is they don't know when they should start saving money for retirement. I would suggest starting as early as you can so your money has time to mature, and grow so when the time does come for retirement you have plenty of it ready to go.
The longer you wait the harder its only going to be for you come retirement. So look into loan programs, and other ways to build income for retirement. Keep and eye out for something that will make your money work for you so you don't have to.
For more information about making money, and building a nest egg visit E
Are you worried about what you are going to do for retirement? Have you even begun to save money for when you retire? These are questions most people say no to, because they have yet to look into their retirement.
In today's world your retirement fund is going to be what will support you the rest of you life after you work, and sadly younger adults will no longer be able to get social security. They will have to either have money saved, or have some type of money in a fund or stock market.
I have been doing a lot of research on loan programs, and forex trading looking for other ways to help build my retirement fund. I have come to find that loaning money, and allowing others to trade it for you, and make your money work for you is one of the best ways to help start building a nest egg.
The hard part for most people is they don't know when they should start saving money for retirement. I would suggest starting as early as you can so your money has time to mature, and grow so when the time does come for retirement you have plenty of it ready to go.
The longer you wait the harder its only going to be for you come retirement. So look into loan programs, and other ways to build income for retirement. Keep and eye out for something that will make your money work for you so you don't have to.
For more information about making money, and building a nest egg visit E
Sunday, November 26, 2006
Preparing Your Retirement With Senior Life Insurance
by Skyjoe
Determining what type and amount of life insurance is right for you require some careful thought and it sometimes seems a secret decoder ring. In addition to term life, whole life, senior life insurance and universal life polices, these days, there are a number of derivative insurance products, many of which are marketed by a aggressive salespeople. These products usually are based on the three major kinds of insurance, but they are complex. They usually have been designed to fit extremely specialized situations and do not make sense for most consumers.
Life insurance and related annuity products frequently are used to provide funding for retirement plans and other types of plans, due to the tax advantages they can offer. Some of these plans also may be funded with other products, such as mutual funds, certificates of deposit, stocks and bonds, cash held in bank accounts, etc.
For example, a senior life insurance policy accumulates a sum of money for retirement while providing a death benefit. When you retire, the policy will pay you an income, such as $10 per $1,000 of the senior life insurance for your lifetime or for a specific period. Once the cash value in the policy becomes greater than the face amount, that cash amount becomes the death benefit.
When you retire, you can use a senior life insurance in several ways. You can borrow cash values or annuitize payment plans. Both methods will allow you to use money for retirement, but each has distinct pros and cons.
If you have accumulated cash value in a senior life insurance policy when you retire, you can begin withdrawing the money on a tax-free basis. On the other hand, money that you withdraw from qualified retirement plans, such as IRAS will be taxed as income.
Borrowing money allows you to avoid income taxes. This is the good news, however, if you borrow all of your cash value and the policy terminates, you will be hit with capital gains tax on any amount in excess of the premiums you paid, for money you spent years ago. That is the bad news. This kind of capital gains tax can be a nasty surprise at age 80 or 85, when most people are busy worrying about health coverage or estate taxes.
Be careful about the rate of return you assume when figuring out how much money you can take out. Overzealous agents sometimes will show illustrations that lead to a big retirement benefit. You have to remember that illustrations are based on the assumption that the company will continue to credit the cash value of the policy at a certain rate. However, many people lost a lot of money on these investments in the 1980s, when the interest rates fell and policies were not performing the way consumers expected.
Determining what type and amount of life insurance is right for you require some careful thought and it sometimes seems a secret decoder ring. In addition to term life, whole life, senior life insurance and universal life polices, these days, there are a number of derivative insurance products, many of which are marketed by a aggressive salespeople. These products usually are based on the three major kinds of insurance, but they are complex. They usually have been designed to fit extremely specialized situations and do not make sense for most consumers.
Life insurance and related annuity products frequently are used to provide funding for retirement plans and other types of plans, due to the tax advantages they can offer. Some of these plans also may be funded with other products, such as mutual funds, certificates of deposit, stocks and bonds, cash held in bank accounts, etc.
For example, a senior life insurance policy accumulates a sum of money for retirement while providing a death benefit. When you retire, the policy will pay you an income, such as $10 per $1,000 of the senior life insurance for your lifetime or for a specific period. Once the cash value in the policy becomes greater than the face amount, that cash amount becomes the death benefit.
When you retire, you can use a senior life insurance in several ways. You can borrow cash values or annuitize payment plans. Both methods will allow you to use money for retirement, but each has distinct pros and cons.
If you have accumulated cash value in a senior life insurance policy when you retire, you can begin withdrawing the money on a tax-free basis. On the other hand, money that you withdraw from qualified retirement plans, such as IRAS will be taxed as income.
Borrowing money allows you to avoid income taxes. This is the good news, however, if you borrow all of your cash value and the policy terminates, you will be hit with capital gains tax on any amount in excess of the premiums you paid, for money you spent years ago. That is the bad news. This kind of capital gains tax can be a nasty surprise at age 80 or 85, when most people are busy worrying about health coverage or estate taxes.
Be careful about the rate of return you assume when figuring out how much money you can take out. Overzealous agents sometimes will show illustrations that lead to a big retirement benefit. You have to remember that illustrations are based on the assumption that the company will continue to credit the cash value of the policy at a certain rate. However, many people lost a lot of money on these investments in the 1980s, when the interest rates fell and policies were not performing the way consumers expected.
Thursday, November 23, 2006
Retirement FAQ: Answers To Common Questions About Retirement
by Randy Yingger
* Why are 401k plans so popular?
401(k) plans are popular because they let an employee allocate a certain amount of his or her salary to a retirement plan. This retirement nest egg is usually tax-free until the retired person begins to take money out of it after retirement.
The employee can also decide the amount he or she wants to contribute from each paycheck to their 401(k) plan. If times are rough, they can reduce the amount and then increase it later on. In difficult times they also take a loan against their 401(k) plan.
* What does it mean to be vested in a retirement plan?
Being vested in a retirement plan means that you have full access to your contributions. For example, in a 401(k) plan, you can take everything that you have contributed to that plan. If you have a retirement plan wherein you have contributed a certain percentage of the contributions, you can take that percentage with you if you leave that employer before you retire.
* How does a retirement plan affect Social Security when I retire?
Some Social Security plans assume a person has contributed to 401(k) plan while he or she was working. If this is not the case, the person may not get the best possible benefits during his or her retirement.
There are many who do not take into consideration their Social Security when they do their retirement planning. As Social Security is amended, different laws will require different kinds of planning. With a well-thought-out retirement plan, you can combine a private retirement plan with your social security benefits.
* Should I take early retirement?
Early retirement sounds great for many people. They can finally have all their time to themselves. You could go fishing, take vacations, spend some time with the family, and everything else you ever dreamt of doing.
But this is only a viable plan for those who have the resources to sustain their needs. So to answer the question, maybe. Early retirement is an option for those who can afford it, but the average employee doesn't have the right retirement plan until they are in their early fifties.
But if you have enough resources to meet your needs after retirement, then why not retire early? An early retirement is a great reward for those long years of hard work.
* How can I make the transition into retirement?
Moving from an active career into retirement can be a tough move for anybody. While at the start it might be considered fun, many have found it to be boring in the long run.
To make the transition into retirement, you have to prepare yourself for the extra time you will have. Plan your finances, as well. Make sure that you have enough to sustain you in the years ahead.
Take a look into your lifestyle. If you are alone, you may need to move into a retirement community where in you can have a lot of company. Loneliness is one of the hardest things about retiring. Plan your retirement very well; know what you want to do for the rest of your life.
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