A solid retirement plan will help keep financial setbacks under control and leave options open to compensate for the crises. You may experience several financial setbacks in retirement and saving for retirement. Pumping every thing you can into tax-sheltered sources will help tame those setbacks and leave options open. You need to ensure you are living on less than you have coming in to offset those unexpected events.
Just as you spend for those things you purchased for entertainment, hobbies and so forth you need to spend for retirement. You have a rough idea how much you need to save each month for retirement. The big money question is. How do you find that money to sock away? Where will it come from if you are already living pay check to pay check.
Spend for retirement: Now comes the hard part. There is one simple principle when saving for any goal. Spend less than you make. As simple as it may sound, it is in most cases the most difficult task to do. Even people who have large incomes find it difficult to make ends meet. The more you earn the more you spend. This is a mind set and we need to train our mind to work in our favor to meet our goals. Include retirement spending in your spending routine. Spend on yourself before other things.
Create a spending plan. A spending plan is simple to set up. It is easiest to set this up on a computer but not necessary. If not using a computer use different sheets of paper for the various categories of expenses you will be setting up. The following is only an example each house hold will have its own version.
Let us start with income: For many of us this is a simple thing to do if our job is the only income we have. For others it could be more complicated. We need to consider other constant sources we know we will be getting. You may be receiving alimony, rental income, monthly dividend, investment proceed. Only include things that are a constant source. The sources may not be the same amount on a monthly basis but there is some income. Write down the average to least amount paid of these sources to your income to come up with your grouse income.
Next consider expenses: This should be broken down into two different lists: the known expenses and the unknown expenses. The know expenses would be things such as utility, mortgage, car payments, cable/satellite fees, telephone, and news paper delivery. If you have your old receipts going back 12 months add these up to get the average expense and use this as your input. Include any expenses that are made from the net income check going to savings, investments or other sources since these are also know sources. This should cover the fixed expenditure list.
Now the more difficult list: If you are not already logging every expense you make in a journal start a journal. In this journal enter each expense you make with an entry of the amount, to whom, reason, date (any other information you may find useful). This journal will prove to be invaluable as we will see for several reasons. Include your known expenses in this journal. Not a single penny expended should escape this journal. Assuming you do not have a journal, enter your estimated varying expenditures. These expenditures would include but not limited to: Gas, oil, car maintenance, grocery, utility, medical, credit cards, clothing, entertainment, car insurance and that cup of coffee you pick up in the morning when going to work. If you don't have a clue of what you spend look at credit card statements, check stubs and any receipts you have lying around.
You now have a record of what you have coming in and what is going out. Total up the lists (this is where a computer would be nice it would be keeping an ongoing total after each entry). Compare the two totals the income should be larger then outgoing. If you have more going out than coming in you should be looking to increase your income. You should also be looking at reducing costs. Remember that expenditure log? The expenditure log will tell you where you can reduce out going expenditures. Add up on a monthly basis all the items you spend money on which was not necessary such as that cup of coffee from Star Bucks, or that gas station. Maybe that sandwich you got from subway or that soda you got out of the vending machine.
How to cut expenses: There are an infinite number of ways to cut expenditures. Start with clipping coupons. Purchase non perishable items by bulk when they go on sale so you don't need to purchase them at retail. Bargain shop where ever you go. Plan your shopping trips so that you can hit several places in one route. Instead of shopping daily make it weekly. You can save by eating breakfast at home with items purchased from the grocery store. Brown bagging your lunch, and bring in your own drinks or drink water. You will be doing two things here. You will find yourself eating healthier and saving money. Pay credit card balances off monthly to prevent finance charges. Some cards also reward with money for purchases made on the card but that is only beneficial if the balance is paid off monthly. You can also find many expense cutting ideas from books or magazines.
How to find the money you don't have. Pay yourself first. Have money deducted from your payroll going into a savings or retirement account. A good starting point is 10% of your income. Increase this amount every year by 1% when getting pay raises. You will not feel the pinch and you will be increasing your savings more than the annual pay raise amount. Money you don't see is money you will not spend. Join an employer retirement account if available. Pre tax money going into this account is a great tax advantage. Put any bonuses or unexpected income into savings. Put your tax return into savings. Review you expenditure plan at least quarterly making the appropriate adjustments.
In summary: Identify what sources of income you have and the amount coming in. List all expenditures and subtract that from your income. This is the amount you should be putting in savings. If it does not match or exceed your savings goals you need to seek means of cutting expenditures or increasing you income. Last but not least pay yourself first.
Article Source: http://EzineArticles.com/?expert=Bill_Ingram
Tuesday, September 16, 2008
Retirement Without Tears
Certainly everybody will retire. Retirement is a great idea, but a lot of people who retire aren't ready for retirement. They just quit going to a regular job.
Successful retirement takes planning and most of us don't take the time to think things through and come up with a plan that will let us enjoy our retirement wishes. Successful retirees do the legwork and look for retirement options that will help them ease into a life of leisure and reap the benefits of a lifetime of working.
While most of us want to retire early, it's a fact that most Americans will retire without enough retirement money to live on. Everything costs more now. Insurance, health care, travel expenses as well as fuel and food. If we don't have enough retirement money coming in, social security becomes the primary source of income. We all have to ask "Is social security going to be enough?". Ideally, we'll find some retirement money solutions without going back to work full time. After all, having enough money to retire on is probably second in importance to good health.
Retirement should be a time when we do whatever we want, when we want. Successful retirement requires a plan. Just quitting work won't do. The plan should include options that provide plenty of time for recreation and work prevents boredom and maybe supplement your retirement income. There are a lot of options available from getting a part-time job, starting a business or finding a way to parlay the expertise a lifetime of work has given us into a source of retirement income.
Most people are successful in areas they're interested in and are passionate about. Most of the experts tell us to find something we're passionate about and success will follow. This could be work, a profession, a sport or hobby or just traveling. The problem is just figuring out what to do. Everything takes time to develop and it's easy to get sidetracked by confusion, doubts, or lack of information. Sometimes, procrastination is our greatest enemy when we're starting a new venture.
Some things you might consider include part-time work as a consultant in your profession, writing articles about your experiences and interests, or starting a part-time business. An online business may be a good area to look at for after retirement work. It's fairly easy and you can work as many hours as you want when you want. You may not get rich but it is possible to make a good living.
I like helping people. I've spent my professional life helping other people be successful. I'm looking forward to a successful retirement in a few years and any information that I can get will be helpful. Retirement (to me) means that I'll have to find something else to do.
I have a lot of interests and I've tried a lot of things. I want to share my interests and experiences with people who are looking for something that works and try to provide some resources for people who want to be successful in their retirement.
Article Source: http://EzineArticles.com/?expert=Marshall_C
Successful retirement takes planning and most of us don't take the time to think things through and come up with a plan that will let us enjoy our retirement wishes. Successful retirees do the legwork and look for retirement options that will help them ease into a life of leisure and reap the benefits of a lifetime of working.
While most of us want to retire early, it's a fact that most Americans will retire without enough retirement money to live on. Everything costs more now. Insurance, health care, travel expenses as well as fuel and food. If we don't have enough retirement money coming in, social security becomes the primary source of income. We all have to ask "Is social security going to be enough?". Ideally, we'll find some retirement money solutions without going back to work full time. After all, having enough money to retire on is probably second in importance to good health.
Retirement should be a time when we do whatever we want, when we want. Successful retirement requires a plan. Just quitting work won't do. The plan should include options that provide plenty of time for recreation and work prevents boredom and maybe supplement your retirement income. There are a lot of options available from getting a part-time job, starting a business or finding a way to parlay the expertise a lifetime of work has given us into a source of retirement income.
Most people are successful in areas they're interested in and are passionate about. Most of the experts tell us to find something we're passionate about and success will follow. This could be work, a profession, a sport or hobby or just traveling. The problem is just figuring out what to do. Everything takes time to develop and it's easy to get sidetracked by confusion, doubts, or lack of information. Sometimes, procrastination is our greatest enemy when we're starting a new venture.
Some things you might consider include part-time work as a consultant in your profession, writing articles about your experiences and interests, or starting a part-time business. An online business may be a good area to look at for after retirement work. It's fairly easy and you can work as many hours as you want when you want. You may not get rich but it is possible to make a good living.
I like helping people. I've spent my professional life helping other people be successful. I'm looking forward to a successful retirement in a few years and any information that I can get will be helpful. Retirement (to me) means that I'll have to find something else to do.
I have a lot of interests and I've tried a lot of things. I want to share my interests and experiences with people who are looking for something that works and try to provide some resources for people who want to be successful in their retirement.
Article Source: http://EzineArticles.com/?expert=Marshall_C
Six Retirement Secrets to Ensure Success
Retirement simply means removal or withdrawal from service, office, or business; withdrawal into privacy or seclusion. The word "retirement" needs to be demystifyed. In fact, many believe the word "retirement" itself needs to be retired. Hence, how can you plan for a successful, happy transition into the second half of your life? I would like to offer six secrets:
Secret 1: Have Strong Social Support
A study done in New Haven, Connecticut found that men and women who were socially active lived an average of two and a half years longer than those who were not. Other studies have found that social interactions have a significant effect in maintaining mental health, regardless of whether retirees live alone, live with someone other than their spouse, or are childless. Satisfaction in retirement is strongly correlated to the strength and number of your personal connections. It would seem that investing in building and maintaining friendships can reap far greater rewards than investing in stocks and bonds!
Secret 2: Have Something to Wake Up For
Intellectual stimulation, structure, a sense of purpose, feelings of pride and accomplishment - these are key ingredients to a happy retirement. Sure, golf, fishing, tennis, and beachcombing are great, but can you really do them 168 hours a week? Although the answer is "yes" for some, for most of us, there needs to be more.
If your present career doesn't provide you with the emotional and psychological plusses you need, or if you find yourself unable to work, or you're bored with your retirement lifestyle, here are some other options to consider so you'll be leaping out of bed every morning eager to start the day. In addition to volunteering, a volunteer or service vacation is a way to help others while enjoying yourself. Strengthen your spiritual life. For many people, this time of transition provides an opportunity to delve further into religion and/or reconnect with the things that are truly important.
Secret 3: Have a High Level of Activity (Physical and Mental)
This really isn't much of a secret at all. The physical act of exercise actually brings about a shift in mood. Even after something as simple as a 15-minute walk, people experience a more positive affect (feelings or emotions), and feel calmer and more relaxed. As researcher Paddy Ekkekakis noted in a study on exercise and mood, "Walking is inexpensive, familiar, and safe. That's why many have argued that the most effective piece of exercise equipment is a dog." If you're not a natural exercise-lover, increase your chances of consistently exercising by doing activities you enjoy, doing them on a regular basis (first thing in the morning prevents excuses later in the day), and doing them with another person (the guilt factor of letting an exercise buddy down can be a powerful motivator). The three pillars of physical fitness are flexibility, strength-training, and cardiovascular work. These activities can rev up neglected nerve pathways.
"Use it or lose it" applies to both body and mind!
Secret 4: Have a Willingness to Renegotiate Roles
The first two years of retirement are difficult for many, as major changes in roles and togetherness result. If you have a spouse or a significant other, discussing - in advance - your goals, plans, and dreams in retirement may save some angst down the road. For example, do you plan to age in place or relocate? Talking about issues and attempting to resolve or work out differences now may ease the transition. Recognizing that it is good and healthy to have separate as well as shared interests is important as well. If one member of a couple has been the traditional homemaker, that person may want to retire, too, and share (i.e.get rid of!) some of the routine chores. Research shows that most couples are happy in retirement, but talk, talk, talk to help ensure you fall into this category!
Secret 5: Have a Strong Financial Plan
Yes, you knew money was going to have to enter into the retirement discussion at some point! However, some of the studies about money may surprise you - there is both good and bad news. Let's dispense with the bad news first: only about one-third of adults have saved for retirement, and half of retirees rely on Social Security as their primary source of income. The good news? Research points out that it's not the total net worth of a person that helps determine financial satisfaction in retirement, but the knowledge that their savings have occurred in a regular, disciplined way over a period of time.
Realize that for most of us there is no retirement number that is ever going to be "enough," but participating in a forced savings plan during your working years is very critical,investing some money to put you on the path to financial freedom in retirement is a wise move.
Secret 6: Have a Good Attitude
Although there are unpleasant things that happen to us that are beyond our control, we can control the way we respond to them. Practice stopping distorted ways of thinking by replacing negative thoughts with more positive, realistic ones. A little story illustrates the point: Two shoe salesmen were sent to a faraway island to sell shoes. After the first day, both men sent back telegrams. One read: "This place is a disaster. No one wears shoes." The other telegram said: "This place is a gold mine. No one wears shoes."
If you're looking for a happy, successful retirement, put these six not-so-secret secrets into practice, and you'll be well on your way!
Jan Cullinane, co-author, The New Retirement: The Ultimate Guide to the Rest of Your Life (Rodale, 2007). Jan also gives seminars on the non-financial aspect of retirements.
Article Source: http://EzineArticles.com/?expert=Jan_Cullinane
Secret 1: Have Strong Social Support
A study done in New Haven, Connecticut found that men and women who were socially active lived an average of two and a half years longer than those who were not. Other studies have found that social interactions have a significant effect in maintaining mental health, regardless of whether retirees live alone, live with someone other than their spouse, or are childless. Satisfaction in retirement is strongly correlated to the strength and number of your personal connections. It would seem that investing in building and maintaining friendships can reap far greater rewards than investing in stocks and bonds!
Secret 2: Have Something to Wake Up For
Intellectual stimulation, structure, a sense of purpose, feelings of pride and accomplishment - these are key ingredients to a happy retirement. Sure, golf, fishing, tennis, and beachcombing are great, but can you really do them 168 hours a week? Although the answer is "yes" for some, for most of us, there needs to be more.
If your present career doesn't provide you with the emotional and psychological plusses you need, or if you find yourself unable to work, or you're bored with your retirement lifestyle, here are some other options to consider so you'll be leaping out of bed every morning eager to start the day. In addition to volunteering, a volunteer or service vacation is a way to help others while enjoying yourself. Strengthen your spiritual life. For many people, this time of transition provides an opportunity to delve further into religion and/or reconnect with the things that are truly important.
Secret 3: Have a High Level of Activity (Physical and Mental)
This really isn't much of a secret at all. The physical act of exercise actually brings about a shift in mood. Even after something as simple as a 15-minute walk, people experience a more positive affect (feelings or emotions), and feel calmer and more relaxed. As researcher Paddy Ekkekakis noted in a study on exercise and mood, "Walking is inexpensive, familiar, and safe. That's why many have argued that the most effective piece of exercise equipment is a dog." If you're not a natural exercise-lover, increase your chances of consistently exercising by doing activities you enjoy, doing them on a regular basis (first thing in the morning prevents excuses later in the day), and doing them with another person (the guilt factor of letting an exercise buddy down can be a powerful motivator). The three pillars of physical fitness are flexibility, strength-training, and cardiovascular work. These activities can rev up neglected nerve pathways.
"Use it or lose it" applies to both body and mind!
Secret 4: Have a Willingness to Renegotiate Roles
The first two years of retirement are difficult for many, as major changes in roles and togetherness result. If you have a spouse or a significant other, discussing - in advance - your goals, plans, and dreams in retirement may save some angst down the road. For example, do you plan to age in place or relocate? Talking about issues and attempting to resolve or work out differences now may ease the transition. Recognizing that it is good and healthy to have separate as well as shared interests is important as well. If one member of a couple has been the traditional homemaker, that person may want to retire, too, and share (i.e.get rid of!) some of the routine chores. Research shows that most couples are happy in retirement, but talk, talk, talk to help ensure you fall into this category!
Secret 5: Have a Strong Financial Plan
Yes, you knew money was going to have to enter into the retirement discussion at some point! However, some of the studies about money may surprise you - there is both good and bad news. Let's dispense with the bad news first: only about one-third of adults have saved for retirement, and half of retirees rely on Social Security as their primary source of income. The good news? Research points out that it's not the total net worth of a person that helps determine financial satisfaction in retirement, but the knowledge that their savings have occurred in a regular, disciplined way over a period of time.
Realize that for most of us there is no retirement number that is ever going to be "enough," but participating in a forced savings plan during your working years is very critical,investing some money to put you on the path to financial freedom in retirement is a wise move.
Secret 6: Have a Good Attitude
Although there are unpleasant things that happen to us that are beyond our control, we can control the way we respond to them. Practice stopping distorted ways of thinking by replacing negative thoughts with more positive, realistic ones. A little story illustrates the point: Two shoe salesmen were sent to a faraway island to sell shoes. After the first day, both men sent back telegrams. One read: "This place is a disaster. No one wears shoes." The other telegram said: "This place is a gold mine. No one wears shoes."
If you're looking for a happy, successful retirement, put these six not-so-secret secrets into practice, and you'll be well on your way!
Jan Cullinane, co-author, The New Retirement: The Ultimate Guide to the Rest of Your Life (Rodale, 2007). Jan also gives seminars on the non-financial aspect of retirements.
Article Source: http://EzineArticles.com/?expert=Jan_Cullinane
Retirement Investment Tips Before And After You Retire
Retirement shouldn't be considered the end of a person's life. There are plenty of things someone can do after retirement. Things like taking a course in something of interest, being active in your community or maybe learning a new skill. Staying active helps sharpen your mental development and gives a sense of importance.
Most people find out that money is very much a necessity after retirement as it is used for paying bills and other expenses instead of using it for the things you planed for after retirement. You shouldn't be waiting around for retirement benefits to kick in, instead here are some tips you can use to keep it growing.
1. Don't wait until retirement to start saving. You could start saving at an early age by creating a detailed plan. Some insurance companies and financial institutions have good rates which, in the long run, might possibly even double the money that you have invested, if its in for a couple of years.
2. Bonds is another form of investment you could use. Bonds mature over a period of time and usually have a good growth percentage.
3. Since business tend to grow in profit earnings on a quarterly basis and sometimes acquisitions and other type of deals increase the values of shares in a company, stocks are also a good option to look into.
4. A lot of folks purchase real estate as a form of investment. Unlike automobiles that depreciate in value the moment it is driven off the lot, the price of properties tend to go up ( most of the time ). There are other options you could do with a property such as holding it for a few years and selling it for a higher profit, you could also flip the property.
5. You could always start your own business if you are up for the challenge. It could be into a working related field, something you have a certain level of experience in.
6. You could get a IRA ( investment retirement account ). There are several types available that come with earning promises and are also good tax advantages.
There are many ways to invest a little in the begining to get a good sound return later. The idea is to look into the many options available either through your own research or the help of a financial advisor, you can start taking charge of your financial future. It's really up to you to decide.
Article Source: http://EzineArticles.com/?expert=Emmanuel_St_Cyr
Most people find out that money is very much a necessity after retirement as it is used for paying bills and other expenses instead of using it for the things you planed for after retirement. You shouldn't be waiting around for retirement benefits to kick in, instead here are some tips you can use to keep it growing.
1. Don't wait until retirement to start saving. You could start saving at an early age by creating a detailed plan. Some insurance companies and financial institutions have good rates which, in the long run, might possibly even double the money that you have invested, if its in for a couple of years.
2. Bonds is another form of investment you could use. Bonds mature over a period of time and usually have a good growth percentage.
3. Since business tend to grow in profit earnings on a quarterly basis and sometimes acquisitions and other type of deals increase the values of shares in a company, stocks are also a good option to look into.
4. A lot of folks purchase real estate as a form of investment. Unlike automobiles that depreciate in value the moment it is driven off the lot, the price of properties tend to go up ( most of the time ). There are other options you could do with a property such as holding it for a few years and selling it for a higher profit, you could also flip the property.
5. You could always start your own business if you are up for the challenge. It could be into a working related field, something you have a certain level of experience in.
6. You could get a IRA ( investment retirement account ). There are several types available that come with earning promises and are also good tax advantages.
There are many ways to invest a little in the begining to get a good sound return later. The idea is to look into the many options available either through your own research or the help of a financial advisor, you can start taking charge of your financial future. It's really up to you to decide.
Article Source: http://EzineArticles.com/?expert=Emmanuel_St_Cyr
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