Are you paying any attention to your retirement savings? Do you have it in cash or an account with a broker? Maybe you have a professional manager who is investing your money as you add to it every month.
Is your account increasing in value every year? If it isn’t why are you letting anyone else invest for you? There is no point having a loser in charge of your money. You must take the time to direct what and where you money is invested. Too many people tell me they don’t know what to do, but if your account has been going down every year you would not do any worse then the “expert”.
I love those professional money managers who tell you about diversification. You know that one. Put some in stocks, some in bonds, some in annuities, and some in a money market account. Did it ever occur to you that the reason they want you to spread it around is because they don’t know where the best place really is and hope that some part will make some money? Did your broker or financial planner brag that he beat the S&P index last year, but you still lost money because it was down 22%? You are better off to have it in the mattress at zero percent than watch it disappear in those monthly statements.
Brokers are not taught to make money or even how to protect your capital. The average broker has 300 accounts and unless you have a very large sum or are an active trader he doesn’t even know who you are. When was the last time you spoke with him? Ask him what his investment strategy is.
In the past 3 years we have seen the general market (S&P500) lose one third of its value as of this date. And the Nasdaq has lost more than 60%. Recently the bond market has collapsed and wiped out all the profits of the previous 4 years. So much for diversification. The mattress looks better all the time.
The single most important thing about investing is not to lose money. I’m not joking. It is the basic rule of all professional traders (and I was one when I was a floor trader on the exchange) not to take big losses. You must make that a rule for yourself. Each week or at least once each month you must review what is happening in your account and weed out any and all weak stocks and mutual funds.
You can be sure your broker will not call you to sell out of a weak position. It is your money and no one has more interest in it than you do. You have to take the time out to do it yourself. Take a time out now and make that call.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
1-888-345-7870; al@mutualfundstrategy.com
Article Source: http://EzineArticles.com/?expert=Al_Thomas
แสดงบทความที่มีป้ายกำกับ Retirement แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Retirement แสดงบทความทั้งหมด
วันพฤหัสบดีที่ 5 กรกฎาคม พ.ศ. 2550
Retirement: Is It A Career Change Option?
Retirement might be the answer when you ask yourself "why do I want to make a career change" and you decide that what you actually want is not so much a career change as to stop what you’ve been doing altogether.
This may be a good choice for some – those who can afford it – but not necessarily the right choice for all. Of course retirement doesn’t have to mean doing nothing at all, in fact with longer life-expectation, that probably isn’t an option for many of us.
For most people considering retirement, or early retirement, the main concern is money. Some of you will have no worries, you’ve planned for it, and you’ve invested your savings and budgeted ahead. But even with the best savings rates, it won’t be like that for the majority, especially with what’s happening to pension funds every day.
However, far from thinking of putting your feet up, you might think about other ways to supplement your investments or pension. But first ask yourself what is your reason and motive for wanting to work, because this will affect whatever decision you make.
Perhaps it's about supplementing your personal pension income, or about companionship? Is it about the need for mental stimulation or to have a sense of purpose? Perhaps you’re concerned that without a job you lose a large part of your identity? You want to protect the value of your savings and investments?
The answer is probably a combination of these factors, so use the career change guidance throughout my web-site to establish your priorities and avoid drifting into something that won’t satisfy you. If you need to get out of the house and make new friends then don’t choose a solitary job working from home.
Of course some people know exactly what they are going to do; it’s all pre-planned or has been worked out with guidance similar to this.
If you’re taking early retirement, why not ask your employer if they could continue to use your skill and knowledge as a consultant - you can do this either as self-employed or as an employee of your own small business.
Running a small business can be one of the most satisfying retirement occupations, and there are thousands of success stories of those who took the plunge at 55-plus. These people have built businesses that provide involvement, fun and income plus creating something of value to pass on to the children or grandchildren.
If you have a skill or specialist knowledge to offer, the drive to do something with it, the time to invest and the health to support your ambition, then you have the basis of a
business that can bring real retirement benefits, allow you to make the most of your investment income, and above all continuing career satisfaction.
You probably haven’t given it much thought but you could build an online business based upon what you know. You’ve amassed a great deal of knowledge from your work experience, your hobbies, passions, or past-times. Take a look at my web-site now; this all comes from my specialist knowledge and a set of tools called Site Build It that removes any need for technical knowledge – you could do it too, and if you like I’ll show you how.
With his background of over 25 years running businesses, and as a Career Coach and Consultant in many sectors, Peter Fisher is well placed to guide job seekers through the steps needed in order to achieve that all important new position.
He has personally coached thousands of individuals to career success.
He writes a distillation of these years of experience with all the essential facts and actions you must complete in order to achieve your own success. He is very clear that you shouldn’t be misled by others into thinking of “acing interviews” or “finessing” your way into a business; the most sustainable and fulfilling roles are gained through understanding your own specific needs and creating your strategy accordingly.
You can learn more about his dynamic and comprehensive approach to career change, with every page dedicated to helping serious career changers if you go to http://www.your-career-change.com/index.html
If you are attracted to the idea of trying an on-line business read this page first http://www.your-career-change.com/Retirement.html
Article Source: http://EzineArticles.com/?expert=Peter_Fisher
This may be a good choice for some – those who can afford it – but not necessarily the right choice for all. Of course retirement doesn’t have to mean doing nothing at all, in fact with longer life-expectation, that probably isn’t an option for many of us.
For most people considering retirement, or early retirement, the main concern is money. Some of you will have no worries, you’ve planned for it, and you’ve invested your savings and budgeted ahead. But even with the best savings rates, it won’t be like that for the majority, especially with what’s happening to pension funds every day.
However, far from thinking of putting your feet up, you might think about other ways to supplement your investments or pension. But first ask yourself what is your reason and motive for wanting to work, because this will affect whatever decision you make.
Perhaps it's about supplementing your personal pension income, or about companionship? Is it about the need for mental stimulation or to have a sense of purpose? Perhaps you’re concerned that without a job you lose a large part of your identity? You want to protect the value of your savings and investments?
The answer is probably a combination of these factors, so use the career change guidance throughout my web-site to establish your priorities and avoid drifting into something that won’t satisfy you. If you need to get out of the house and make new friends then don’t choose a solitary job working from home.
Of course some people know exactly what they are going to do; it’s all pre-planned or has been worked out with guidance similar to this.
If you’re taking early retirement, why not ask your employer if they could continue to use your skill and knowledge as a consultant - you can do this either as self-employed or as an employee of your own small business.
Running a small business can be one of the most satisfying retirement occupations, and there are thousands of success stories of those who took the plunge at 55-plus. These people have built businesses that provide involvement, fun and income plus creating something of value to pass on to the children or grandchildren.
If you have a skill or specialist knowledge to offer, the drive to do something with it, the time to invest and the health to support your ambition, then you have the basis of a
business that can bring real retirement benefits, allow you to make the most of your investment income, and above all continuing career satisfaction.
You probably haven’t given it much thought but you could build an online business based upon what you know. You’ve amassed a great deal of knowledge from your work experience, your hobbies, passions, or past-times. Take a look at my web-site now; this all comes from my specialist knowledge and a set of tools called Site Build It that removes any need for technical knowledge – you could do it too, and if you like I’ll show you how.
With his background of over 25 years running businesses, and as a Career Coach and Consultant in many sectors, Peter Fisher is well placed to guide job seekers through the steps needed in order to achieve that all important new position.
He has personally coached thousands of individuals to career success.
He writes a distillation of these years of experience with all the essential facts and actions you must complete in order to achieve your own success. He is very clear that you shouldn’t be misled by others into thinking of “acing interviews” or “finessing” your way into a business; the most sustainable and fulfilling roles are gained through understanding your own specific needs and creating your strategy accordingly.
You can learn more about his dynamic and comprehensive approach to career change, with every page dedicated to helping serious career changers if you go to http://www.your-career-change.com/index.html
If you are attracted to the idea of trying an on-line business read this page first http://www.your-career-change.com/Retirement.html
Article Source: http://EzineArticles.com/?expert=Peter_Fisher
Investing for Retirement - Not an All or Nothing Play
In 1519, Hernando Cortes, beached on the shores of unexplored Mexico, made a fateful decision: he would burn the ships he and his men arrived in and attempt to overthrow Montezuma and the mighty Aztec empire. The decision was risky. The Aztecs were meant to possess large numbers of brave warriors while Cortes had only a handful of men. If Cortes had the slightest setback there would be no escape. On the other hand, Cortes had no choice. The powerful Governor of Cuba wanted his head. Cortes had defied the Governor time and time again and his best option for getting out of the situation was to win favor with King Charles by conquering a civilization rich in gold and other treasures. Since Cortes' men might get a little antsy if the going got rough and decide they would prefer going home, Cortes decided it would be best to completely align their incentives with his. He did this by burning the ships. Anything but success would now equal death for Cortes and all of his men. Thus began the famous march from Vera Cruz to Tenochtitlan.
Your retirement is not the conquest of New Spain. All or nothing plays, though they can be wildly successful and can lead to conquistador like splendor, are not the kinds of risks you should be taking with your future. Putting all of your savings into a single speculative venture should be reserved for situations when there is truly nothing to lose.
When investing for the future you should take a much longer view of things. You should understand that the economy undergoes boom and bust cycles, fads come and go and sometimes you just plain get unlucky. To combat the vicissitudes of fortune you must diversify your investment holdings.
A lot of people go about their savings in a very simple way: they have their employer take money out of their paycheck and put it in a 401(k) plan. This is a good, tax advantaged way to save. The problem often comes, however, when the employee falls prey to the employer's siren song of re-investing in the company. Perhaps the company has been doing well lately and the employee is bullish on the future success of the company. He or she then goes ahead and contributes 100% of his 401(k) to purchasing company stock. That is a potentially disastrous decision.
Most people's livelihoods are not well diversified. For the most part people rely on their employer for their future well being. Your employer supplies your paycheck, you are counting on your employer for wage increases and you may also be expecting a nice little pension when you retire. That is already a lot of eggs in one basket. Companies fail suddenly, layoffs occur and you do not always have the meteoric rise in your career that you might hope for.
To subject your savings to the fortunes of the company that you already are so dependent upon is something you should do only after careful consideration of all the alternatives. It might be the right thing to do, but you are taking on a lot of risk in doing it.
So if you aren't doubling down on your company's future, what should you be doing with your retirement savings? The answer obviously depends on where you are in your life. When you are younger you can take a few more risks in life. Your portfolio should be weighted towards slightly riskier assets rather than stable, income producing assets. As you get older the mix should change until you reach a point in life where, finally, your portfolio consists of mostly income producing assets.
This is not carte blanche to go on a wild stock-picking adventure with your retirement money while you are young. You should leave that to the pros. There are people who dedicate their lives to learning the art of investing. These people study The Intelligent Investor like it was a bible. They pore over annual reports and study where Warren Buffet went to lunch that day in an attempt to glean a precious new piece of information. If this profile does not sound like you, stay away from stock-picking. Even the pros have a hard time beating the market and they have advantages that you can never hope to have on your side.
Sure you can gamble a little bit of money on that hot stock your cousin told you about, but think of it the same way as putting a pile of money on red at the roulette table: odds are you are going to lose your money, but, hell, you might get lucky and win.
For proper long term planning, concentrate on finding a mutual fund that has a nice track record, low fees and a good rating from a reputable publication like Morningstar. If you want to make a bet on the growth of America, buy an S&P 500 index fund. For a little extra diversity, maybe research an international or emerging markets fund and put some money there. As long as you stay away from French companies, you should be fine.
Seneca Spade learned about the wonders of diversification after losing way too much money on a hand of blackjack. He is an investment specialist and contibuting editor for whatbubble.com. If you would like to post your own comments, have any financial questions answered by an expert for free, or would like to read more on this subject please visit http://www.whatbubble.com, If you wish to re-publish this article, we request you retain all links and copy including this bio.
Article Source: http://EzineArticles.com/?expert=Seneca_Spade
Your retirement is not the conquest of New Spain. All or nothing plays, though they can be wildly successful and can lead to conquistador like splendor, are not the kinds of risks you should be taking with your future. Putting all of your savings into a single speculative venture should be reserved for situations when there is truly nothing to lose.
When investing for the future you should take a much longer view of things. You should understand that the economy undergoes boom and bust cycles, fads come and go and sometimes you just plain get unlucky. To combat the vicissitudes of fortune you must diversify your investment holdings.
A lot of people go about their savings in a very simple way: they have their employer take money out of their paycheck and put it in a 401(k) plan. This is a good, tax advantaged way to save. The problem often comes, however, when the employee falls prey to the employer's siren song of re-investing in the company. Perhaps the company has been doing well lately and the employee is bullish on the future success of the company. He or she then goes ahead and contributes 100% of his 401(k) to purchasing company stock. That is a potentially disastrous decision.
Most people's livelihoods are not well diversified. For the most part people rely on their employer for their future well being. Your employer supplies your paycheck, you are counting on your employer for wage increases and you may also be expecting a nice little pension when you retire. That is already a lot of eggs in one basket. Companies fail suddenly, layoffs occur and you do not always have the meteoric rise in your career that you might hope for.
To subject your savings to the fortunes of the company that you already are so dependent upon is something you should do only after careful consideration of all the alternatives. It might be the right thing to do, but you are taking on a lot of risk in doing it.
So if you aren't doubling down on your company's future, what should you be doing with your retirement savings? The answer obviously depends on where you are in your life. When you are younger you can take a few more risks in life. Your portfolio should be weighted towards slightly riskier assets rather than stable, income producing assets. As you get older the mix should change until you reach a point in life where, finally, your portfolio consists of mostly income producing assets.
This is not carte blanche to go on a wild stock-picking adventure with your retirement money while you are young. You should leave that to the pros. There are people who dedicate their lives to learning the art of investing. These people study The Intelligent Investor like it was a bible. They pore over annual reports and study where Warren Buffet went to lunch that day in an attempt to glean a precious new piece of information. If this profile does not sound like you, stay away from stock-picking. Even the pros have a hard time beating the market and they have advantages that you can never hope to have on your side.
Sure you can gamble a little bit of money on that hot stock your cousin told you about, but think of it the same way as putting a pile of money on red at the roulette table: odds are you are going to lose your money, but, hell, you might get lucky and win.
For proper long term planning, concentrate on finding a mutual fund that has a nice track record, low fees and a good rating from a reputable publication like Morningstar. If you want to make a bet on the growth of America, buy an S&P 500 index fund. For a little extra diversity, maybe research an international or emerging markets fund and put some money there. As long as you stay away from French companies, you should be fine.
Seneca Spade learned about the wonders of diversification after losing way too much money on a hand of blackjack. He is an investment specialist and contibuting editor for whatbubble.com. If you would like to post your own comments, have any financial questions answered by an expert for free, or would like to read more on this subject please visit http://www.whatbubble.com, If you wish to re-publish this article, we request you retain all links and copy including this bio.
Article Source: http://EzineArticles.com/?expert=Seneca_Spade
Does Retirement Fit Into Your Busy Schedule?
Why do you work?
Stop and think about it. Other than the income you derive from the various tasks and responsibilities you perform on the job, are there any other reasons you get up every morning before the birds do, drive your car in rush-hour traffic, get into the office and go to several meetings throughout the day that have yet to change life as we know it, and sit at your desk going through all the things you need to go through that are a part of what’s been called, work?
You’ve been doing this for a long time. You’ve been putting up with office politics, with a lot of grief from your supervisors, peers and direct reports, and then coming home a bit less energized than when you left twelve hours earlier, only to face other issues on the home front. Other than the money, what has been motivating you all these years?
Hopefully, you have been able to derive a measure of satisfaction from doing those things that have tapped your creativity and utilized a good percentage of your talents, capabilities and unique gifts. Hopefully, you have followed your passion over the years and associated yourself with the types of jobs and careers for which you have felt a lot of enthusiasm, and from which you have been able to experience tremendous fulfillment.
If you are reaching retirement age, it may be time for you to look at a retirement calculator, assess your finances, and review all the things that have produced your fulfillment. If you are financially positioned to retire, should you? It seems like a silly question, but there’s more to it than meets the eye. I don’t recommend retirement to anyone.
Retirement implies you are no longer working. You’ve given up the treadmill described above for a villa somewhere off the coast of Spain. Sounds great, doesn’t it?! Then why would I not recommend retirement? The reason is simple: People need to do creative things. They need to be involved and express their talents and capabilities to the fullest. It’s not only a way of feeling useful or deriving an income; it’s more importantly a requirement for sanity and longevity. Numerous studies corroborate this.
Does this mean you shouldn’t retire? Do you have to remain on the treadmill until you die? Not exactly. You can get out of the "rat race" without retiring. Applying a new dimension to the word, retire, it no longer implies that you stop working; rather, you are no longer working for someone else. You can still have that villa, only now you can also be engaged in creating and expressing your talents. For many retirees, it means establishing and marketing their hobbies. For many others, it’s about starting their own consulting business.
The important thing to consider as you approach retirement age is that over the years you have brought a lot to the table and have given of yourself in many, many ways. You can now take those same talents and begin to look at ways you can continue to apply them in a self-employed capacity. The rewards will be great. You’ll be off the treadmill, you’ll stay sane, you’ll live longer, and that villa off the coast of Spain just got a new owner, you.
Copyright © 2005 TopDog Group All rights reserved.
David Richter is a recognized authority in career coaching and job search support. He has spent many years in recruitment, staffing, outplacement, counseling psychology and career management spanning most industries and professions. David founded TopDog Group in response to the needs of job candidates to have a higher quality of career coaching and support available on the Internet. David understands the mechanisms for success. He has formulated specific strategies anyone can use to secure interviews and receive offers. His extensive knowledge and experience sets David apart in this field, allowing him to offer a wealth of information and a vast array of tools, resources and strategies not found anywhere else. He has shown countless job seekers how to differentiate themselves and leverage their potential to the highest possible level, making a real difference in their careers. David holds both a Bachelors and Masters degree in Electrical Engineering and a Masters of Arts degree in Counseling Psychology. David's website address is: http://www.procareercoach.com
Article Source: http://EzineArticles.com/?expert=David_Richter
Stop and think about it. Other than the income you derive from the various tasks and responsibilities you perform on the job, are there any other reasons you get up every morning before the birds do, drive your car in rush-hour traffic, get into the office and go to several meetings throughout the day that have yet to change life as we know it, and sit at your desk going through all the things you need to go through that are a part of what’s been called, work?
You’ve been doing this for a long time. You’ve been putting up with office politics, with a lot of grief from your supervisors, peers and direct reports, and then coming home a bit less energized than when you left twelve hours earlier, only to face other issues on the home front. Other than the money, what has been motivating you all these years?
Hopefully, you have been able to derive a measure of satisfaction from doing those things that have tapped your creativity and utilized a good percentage of your talents, capabilities and unique gifts. Hopefully, you have followed your passion over the years and associated yourself with the types of jobs and careers for which you have felt a lot of enthusiasm, and from which you have been able to experience tremendous fulfillment.
If you are reaching retirement age, it may be time for you to look at a retirement calculator, assess your finances, and review all the things that have produced your fulfillment. If you are financially positioned to retire, should you? It seems like a silly question, but there’s more to it than meets the eye. I don’t recommend retirement to anyone.
Retirement implies you are no longer working. You’ve given up the treadmill described above for a villa somewhere off the coast of Spain. Sounds great, doesn’t it?! Then why would I not recommend retirement? The reason is simple: People need to do creative things. They need to be involved and express their talents and capabilities to the fullest. It’s not only a way of feeling useful or deriving an income; it’s more importantly a requirement for sanity and longevity. Numerous studies corroborate this.
Does this mean you shouldn’t retire? Do you have to remain on the treadmill until you die? Not exactly. You can get out of the "rat race" without retiring. Applying a new dimension to the word, retire, it no longer implies that you stop working; rather, you are no longer working for someone else. You can still have that villa, only now you can also be engaged in creating and expressing your talents. For many retirees, it means establishing and marketing their hobbies. For many others, it’s about starting their own consulting business.
The important thing to consider as you approach retirement age is that over the years you have brought a lot to the table and have given of yourself in many, many ways. You can now take those same talents and begin to look at ways you can continue to apply them in a self-employed capacity. The rewards will be great. You’ll be off the treadmill, you’ll stay sane, you’ll live longer, and that villa off the coast of Spain just got a new owner, you.
Copyright © 2005 TopDog Group All rights reserved.
David Richter is a recognized authority in career coaching and job search support. He has spent many years in recruitment, staffing, outplacement, counseling psychology and career management spanning most industries and professions. David founded TopDog Group in response to the needs of job candidates to have a higher quality of career coaching and support available on the Internet. David understands the mechanisms for success. He has formulated specific strategies anyone can use to secure interviews and receive offers. His extensive knowledge and experience sets David apart in this field, allowing him to offer a wealth of information and a vast array of tools, resources and strategies not found anywhere else. He has shown countless job seekers how to differentiate themselves and leverage their potential to the highest possible level, making a real difference in their careers. David holds both a Bachelors and Masters degree in Electrical Engineering and a Masters of Arts degree in Counseling Psychology. David's website address is: http://www.procareercoach.com
Article Source: http://EzineArticles.com/?expert=David_Richter
Online Retirement Opportunity: Freelance Copywriting
For most of us, the idea of retiring simply on our pension is not a happy prospect.
While we may have always had dreams of a retirement that is worry-free and with a few luxuries thrown in, the stark reality is that our pensions will likely give us only the most basic living conditions, with none of the luxuries we had hoped for.
Whether your retirement is thirty years away, ten years away or is already upon you, the best guarantee of a happy future is to start building a second stream of income now.
For some this will mean creating their own business and marketing some product or service in the hope of making some big profits.
However, many of us don’t have the skills or the time to manage such an ambitious undertaking.
But we do have time to write.
If you have the skills to write a letter or a simple company memo, then you have the skills to make some money by writing.
There are many ways you can turn your words into cash. But the one I am most familiar with is the craft of copywriting.
For over twenty years I have worked as a freelance copywriter, raised a family and continued to make good money, year after year.
Why copywriting? What makes this such an excellent source of a good second income?
A few reasons:
* No special qualifications are needed. A university degree? Not necessary at all.
* It doesn’t matter where you live.
* It doesn’t matter how old or young you are.
* It doesn’t cost an arm and a leg to get started. Just take a really good copywriting course and you’re ready to go. (See link below.)
In other words, freelance copywriting is the ultimate second stream of income, giving you the potential for some good money, but leaving you with the flexibility you need to fit it around your existing obligations.
Start today and you’ll soon be earning that extra income you need to ensure a happy and enjoyable retirement.
To find out more about getting started or developing your skills as a freelance copywriter, read my review of this copywriting course by Michael Masterson.
Nick Usborne is a freelance copywriter, author and speaker. For more articles and resources on making money as a freelance writer, visit his site, http://www.FreelanceWritingSuccess.com.
Article Source: http://EzineArticles.com/?expert=Nick_Usborne
While we may have always had dreams of a retirement that is worry-free and with a few luxuries thrown in, the stark reality is that our pensions will likely give us only the most basic living conditions, with none of the luxuries we had hoped for.
Whether your retirement is thirty years away, ten years away or is already upon you, the best guarantee of a happy future is to start building a second stream of income now.
For some this will mean creating their own business and marketing some product or service in the hope of making some big profits.
However, many of us don’t have the skills or the time to manage such an ambitious undertaking.
But we do have time to write.
If you have the skills to write a letter or a simple company memo, then you have the skills to make some money by writing.
There are many ways you can turn your words into cash. But the one I am most familiar with is the craft of copywriting.
For over twenty years I have worked as a freelance copywriter, raised a family and continued to make good money, year after year.
Why copywriting? What makes this such an excellent source of a good second income?
A few reasons:
* No special qualifications are needed. A university degree? Not necessary at all.
* It doesn’t matter where you live.
* It doesn’t matter how old or young you are.
* It doesn’t cost an arm and a leg to get started. Just take a really good copywriting course and you’re ready to go. (See link below.)
In other words, freelance copywriting is the ultimate second stream of income, giving you the potential for some good money, but leaving you with the flexibility you need to fit it around your existing obligations.
Start today and you’ll soon be earning that extra income you need to ensure a happy and enjoyable retirement.
To find out more about getting started or developing your skills as a freelance copywriter, read my review of this copywriting course by Michael Masterson.
Nick Usborne is a freelance copywriter, author and speaker. For more articles and resources on making money as a freelance writer, visit his site, http://www.FreelanceWritingSuccess.com.
Article Source: http://EzineArticles.com/?expert=Nick_Usborne
Home Equity Loan - A Reverse Mortgage Could Provide a Comfortable Retirement!
While only comprising about 1% of all mortgages, the reverse mortgage has gained in popularity in recent years. Federally insured since the late 1980’s, the reverse mortgage allows owners of paid-off homes to borrow against the equity in their homes in the form of a lump sum, a line of credit, or in the form of monthly payments. The loan is repaid when the owners die or when the home is sold or no longer occupied.
In the early years of its existence, the reverse mortgage was regarded as a “last resort” step to avoid foreclosure, pay medical expenses or keep the home from disrepair. More recently, however, retirees have been finding creative ways to use the equity in their homes to allow their retirement years to be more enjoyable.
The huge growth of the housing market during the last five years has left millions of homeowners with large amounts of equity in their homes. Californians who bought homes in the early 1960’s at modest prices are now retiring; many of them have home equity in the mid-six figures. With that sort of equity, homeowners are using their equity to buy recreational vehicles, boats, luxury vacations, and even second homes. The structure of a reverse mortgage makes it possible for some homeowners to pay cash for a vacation home, while continuing to live in their primary residence for as long as they like, or are able. Once they die, the primary residence would be sold to pay pack the loan, while the second home would become part of their estate.
This has provided a rare opportunity for many couples, who struggled to raise families and pay mortgages during the working years, to enjoy a few luxuries in their retirement years. Couples who could never afford to travel can now dip into their home equity and see Europe or take that cruise that always eluded them.
While this may seem like a win-win situation for all involved, those in the lending industry express caution. For most people, the equity in their home is their single largest asset, and borrowing against it should done only after careful consideration. What if a lengthy hospital stay became necessary? Would the homeowner have sufficient funds to pay for that after buying a second home through a reverse mortgage? What if a husband or wife became incapacitated and required permanent housing in a nursing home? These are things that must be considered before using home equity for a houseboat or RV, and those considering such a move should consider discussing their plans with a financial advisor.
Despite the potential drawbacks, the use of the reverse mortgage to fund a fun and adventurous retirement seems to be growing. With interest rates still near all-time lows, the trend will almost certainly continue in the near future.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com/ and http://www.HomeEquityHelp.net/
Article Source: http://EzineArticles.com/?expert=Charles_Essmeier
In the early years of its existence, the reverse mortgage was regarded as a “last resort” step to avoid foreclosure, pay medical expenses or keep the home from disrepair. More recently, however, retirees have been finding creative ways to use the equity in their homes to allow their retirement years to be more enjoyable.
The huge growth of the housing market during the last five years has left millions of homeowners with large amounts of equity in their homes. Californians who bought homes in the early 1960’s at modest prices are now retiring; many of them have home equity in the mid-six figures. With that sort of equity, homeowners are using their equity to buy recreational vehicles, boats, luxury vacations, and even second homes. The structure of a reverse mortgage makes it possible for some homeowners to pay cash for a vacation home, while continuing to live in their primary residence for as long as they like, or are able. Once they die, the primary residence would be sold to pay pack the loan, while the second home would become part of their estate.
This has provided a rare opportunity for many couples, who struggled to raise families and pay mortgages during the working years, to enjoy a few luxuries in their retirement years. Couples who could never afford to travel can now dip into their home equity and see Europe or take that cruise that always eluded them.
While this may seem like a win-win situation for all involved, those in the lending industry express caution. For most people, the equity in their home is their single largest asset, and borrowing against it should done only after careful consideration. What if a lengthy hospital stay became necessary? Would the homeowner have sufficient funds to pay for that after buying a second home through a reverse mortgage? What if a husband or wife became incapacitated and required permanent housing in a nursing home? These are things that must be considered before using home equity for a houseboat or RV, and those considering such a move should consider discussing their plans with a financial advisor.
Despite the potential drawbacks, the use of the reverse mortgage to fund a fun and adventurous retirement seems to be growing. With interest rates still near all-time lows, the trend will almost certainly continue in the near future.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com/ and http://www.HomeEquityHelp.net/
Article Source: http://EzineArticles.com/?expert=Charles_Essmeier
MALAYSIA: An Asian Retirement Paradise
Asia's best-kept secret for expatriates, Malaysia has a vibrant mix of foreign and indigenous tribal cultures, creating a veritable melting pot of peoples, traditions and religions.
A sizable enclave of foreigners (Brits, Americans, Australians, and Canadians) live full time or maintain holiday homes in Malaysia, and you'll find that just about everybody speaks English, since its compulsory in local schools.
Not only are three world-class playgrounds (Thailand, Bali, and the Philippines) all within a few hour's travel from Malaysia, but with miles of white sand coastline, tropical islands, and beachfront property galore, it has all the makings of a fairy-tale setting.
Despite being the capital of a developing nation, Kuala Lumpur is a modern cosmopolitan with clean streets and sidewalks and every modern convenience to found in New York or London. Home to the tallest building in the world, there are also FedEx and UPS offices, international banks, English cinemas and bookstores, western-style supermarkets, French and German bakeries, Chinese, Indian, and Italian restaurants, gourmet coffee, Cuban cigars, Internet cafés and some of the best shopping in the world!
One of the few things that lend a "Third-world" feel to the capital are the open-air night market, where local merchants peddle everything from fresh fruit and vegetables, to meat and fish, to exotic animals and traditional handicrafts.
All the major newspapers are available at newsstands, including the Wall Street Journal, USA Today, the Financial Times, the International Herald Tribune and The New York Times. Cable and satellite TV provides access to a wide variety of English-language programming, including CNN, the Discovery Channel, Filmnet and many more.
Despite the local Muslim population not drinking alcohol, Kuala Lumpur has some of the liveliest nightlife in the region and there are more than a fair share of clubs and bars, where tourists, expatriates and locals alike mingle and party. Though the official religion of Malaysia is Islam, great tolerance is shown for other religions, with many beliefs being represented and their adherents practicing openly, including Christians, Hindus, Buddhists, Taoists and Jews (the nearest synagogue is in neighboring Singapore).
Compared with other major Asian cities (Tokyo, Singapore, and Hong Kong, for example), Kuala Lumpur is downright cheap. Even in the over-priced tourist spots you can get a good meal for two for around $20. Outside of these places, a 3-course meal for two with all the trimmings, including drinks, will set you back no more than $10…a doctor's visit $8 to $15 and live-in domestic help $200 a month.
Rental properties are readily available and not overly expensive by American or European standards. The cost of 2-bedroom rental apartments begins at around $225 per month, with 3-bedroom houses starting at $35,000. Naturally, comparable housing in expatriate communities or the luxurious suburban homes that date from British colonial period can set you back considerably more.
Other properties recently on offer include:
A 2-bedroom, 1-bathroom, 725-square-foot apartment with a dining room, a kitchen, ceiling fans, a walk-in closet, and parking, costs $45,215.
A small two-story bungalow with 2 bedrooms, 1 bathroom, a kitchen, a living room, and a dining room going for $35,700.
A penthouse apartment, close to downtown, with a sea-view and a 350-sqare-foot terrace. It comes fully furnished and has 2 bedrooms, 1 bathroom, a kitchen, and a dining room. The asking price? $75,000.
A spacious 3-bedroom, 2-bathroom, 2500-square-foot condominium with a large living room, an elegant dining room, a fully equipped kitchen, and a pantry, for $125,250.
Though there are expensive restaurants and accommodations, there's simply no reason for you to check into a five-star hotel when you can stay in a clean, friendly hotel in the city center for $40 a night where every meal costs less than $5 per person.
CRIME-FREE AND FOREIGNER FRIENDLY
Of course, cheap living shouldn't be the only deciding factor when choosing a new home. As well as being very affordable, Malaysia is safe.The government's real no tolerance policy means street crime is virtually nonexistent.
The Malaysian government, through its "Silver-Haired Program," offers expatriate resident retirees extremely attractive benefits. Outside of nationals of Israel and Yugoslavia (Serbia and Montenegro), the program is open to citizens of most countries. To qualify, you need only be over 50, show you can bring a guaranteed income of about $1300 per month into Malaysia (or open a savings account in Malaysia with $40,000), and have a local sponsor (which can easily be arranged).
Penang, a small island off the northwest coast, has been called the "Pearl of the Orient" and its beaches are a favorite tourist destination. The coastline is also dotted with many small, quiet seaside villages. The tropical rainforests and jungles offer many opportunities for exploring lush mountains, trekking through the jungle, or even taking a riverboat safari. The bountiful sea surrounding Malaysia provides for some of the best scuba diving and fishing anywhere in the world (Malaysia's seas are home to the Black Marlin, tuna, mackerel, sailfish, barracuda and a host of other species).
PRACTICAL BENEFITS
Medical care is good, with excellent hospitals and clinics in all the major towns. Doctors speak English, and the majority gained their qualifications in Western Europe or North America.
Although foreign residents must arrange private health insurance, visiting tourists who have an accident are entitled to free emergency treatment in public hospitals. A consultation with a private doctor in most cases will cost just $8 to $15.
When it comes to banking, management methods and the range of services offered closely follow the British model. Plus, most major world banks have full-service branches in Malaysia.
Many expatriates living here off investment income keep their cash growing tax free in Labuan, an offshore tax haven administered by Malaysia, and then bring into the mainland what's needed for living expenses. Labuan is also perfect for anyone looking for a private, offshore bank account, a tax-free corporation, a trust, or other offshore structures.
Led by Malaysian Airlines, the national carrier, the island is served by many major airlines, linking it the world through its international airports. A good network of modern roads covers the distances between towns, and Malaysian telecommunications are among the best in the world.
If you've ever thought about living overseas, you owe it to yourself to investigate Malaysia.
About The Author
Copyright 2005 by Shannon Roxborough
Shannon Roxborough is an international lifestyle expert with close to 20 years experience. He has helped hundreds of clients with overseas living, retirement and travel matters. Visit his website at: www.TheGlobalLife.net
askinternational@aol.com
Article Source: http://EzineArticles.com/?expert=Shannon_Roxborough
A sizable enclave of foreigners (Brits, Americans, Australians, and Canadians) live full time or maintain holiday homes in Malaysia, and you'll find that just about everybody speaks English, since its compulsory in local schools.
Not only are three world-class playgrounds (Thailand, Bali, and the Philippines) all within a few hour's travel from Malaysia, but with miles of white sand coastline, tropical islands, and beachfront property galore, it has all the makings of a fairy-tale setting.
Despite being the capital of a developing nation, Kuala Lumpur is a modern cosmopolitan with clean streets and sidewalks and every modern convenience to found in New York or London. Home to the tallest building in the world, there are also FedEx and UPS offices, international banks, English cinemas and bookstores, western-style supermarkets, French and German bakeries, Chinese, Indian, and Italian restaurants, gourmet coffee, Cuban cigars, Internet cafés and some of the best shopping in the world!
One of the few things that lend a "Third-world" feel to the capital are the open-air night market, where local merchants peddle everything from fresh fruit and vegetables, to meat and fish, to exotic animals and traditional handicrafts.
All the major newspapers are available at newsstands, including the Wall Street Journal, USA Today, the Financial Times, the International Herald Tribune and The New York Times. Cable and satellite TV provides access to a wide variety of English-language programming, including CNN, the Discovery Channel, Filmnet and many more.
Despite the local Muslim population not drinking alcohol, Kuala Lumpur has some of the liveliest nightlife in the region and there are more than a fair share of clubs and bars, where tourists, expatriates and locals alike mingle and party. Though the official religion of Malaysia is Islam, great tolerance is shown for other religions, with many beliefs being represented and their adherents practicing openly, including Christians, Hindus, Buddhists, Taoists and Jews (the nearest synagogue is in neighboring Singapore).
Compared with other major Asian cities (Tokyo, Singapore, and Hong Kong, for example), Kuala Lumpur is downright cheap. Even in the over-priced tourist spots you can get a good meal for two for around $20. Outside of these places, a 3-course meal for two with all the trimmings, including drinks, will set you back no more than $10…a doctor's visit $8 to $15 and live-in domestic help $200 a month.
Rental properties are readily available and not overly expensive by American or European standards. The cost of 2-bedroom rental apartments begins at around $225 per month, with 3-bedroom houses starting at $35,000. Naturally, comparable housing in expatriate communities or the luxurious suburban homes that date from British colonial period can set you back considerably more.
Other properties recently on offer include:
A 2-bedroom, 1-bathroom, 725-square-foot apartment with a dining room, a kitchen, ceiling fans, a walk-in closet, and parking, costs $45,215.
A small two-story bungalow with 2 bedrooms, 1 bathroom, a kitchen, a living room, and a dining room going for $35,700.
A penthouse apartment, close to downtown, with a sea-view and a 350-sqare-foot terrace. It comes fully furnished and has 2 bedrooms, 1 bathroom, a kitchen, and a dining room. The asking price? $75,000.
A spacious 3-bedroom, 2-bathroom, 2500-square-foot condominium with a large living room, an elegant dining room, a fully equipped kitchen, and a pantry, for $125,250.
Though there are expensive restaurants and accommodations, there's simply no reason for you to check into a five-star hotel when you can stay in a clean, friendly hotel in the city center for $40 a night where every meal costs less than $5 per person.
CRIME-FREE AND FOREIGNER FRIENDLY
Of course, cheap living shouldn't be the only deciding factor when choosing a new home. As well as being very affordable, Malaysia is safe.The government's real no tolerance policy means street crime is virtually nonexistent.
The Malaysian government, through its "Silver-Haired Program," offers expatriate resident retirees extremely attractive benefits. Outside of nationals of Israel and Yugoslavia (Serbia and Montenegro), the program is open to citizens of most countries. To qualify, you need only be over 50, show you can bring a guaranteed income of about $1300 per month into Malaysia (or open a savings account in Malaysia with $40,000), and have a local sponsor (which can easily be arranged).
Penang, a small island off the northwest coast, has been called the "Pearl of the Orient" and its beaches are a favorite tourist destination. The coastline is also dotted with many small, quiet seaside villages. The tropical rainforests and jungles offer many opportunities for exploring lush mountains, trekking through the jungle, or even taking a riverboat safari. The bountiful sea surrounding Malaysia provides for some of the best scuba diving and fishing anywhere in the world (Malaysia's seas are home to the Black Marlin, tuna, mackerel, sailfish, barracuda and a host of other species).
PRACTICAL BENEFITS
Medical care is good, with excellent hospitals and clinics in all the major towns. Doctors speak English, and the majority gained their qualifications in Western Europe or North America.
Although foreign residents must arrange private health insurance, visiting tourists who have an accident are entitled to free emergency treatment in public hospitals. A consultation with a private doctor in most cases will cost just $8 to $15.
When it comes to banking, management methods and the range of services offered closely follow the British model. Plus, most major world banks have full-service branches in Malaysia.
Many expatriates living here off investment income keep their cash growing tax free in Labuan, an offshore tax haven administered by Malaysia, and then bring into the mainland what's needed for living expenses. Labuan is also perfect for anyone looking for a private, offshore bank account, a tax-free corporation, a trust, or other offshore structures.
Led by Malaysian Airlines, the national carrier, the island is served by many major airlines, linking it the world through its international airports. A good network of modern roads covers the distances between towns, and Malaysian telecommunications are among the best in the world.
If you've ever thought about living overseas, you owe it to yourself to investigate Malaysia.
About The Author
Copyright 2005 by Shannon Roxborough
Shannon Roxborough is an international lifestyle expert with close to 20 years experience. He has helped hundreds of clients with overseas living, retirement and travel matters. Visit his website at: www.TheGlobalLife.net
askinternational@aol.com
Article Source: http://EzineArticles.com/?expert=Shannon_Roxborough
Mindfulness and Retirement: Considering Brazil
I have a 17-year-old daughter who is finishing up a year in Vitoria, Brazil. She's been having the time of her life in a gorgeous coastal city with the beaches of her dreams and the cute guys to match. What's not to like?
Tara told us that we could buy a beautiful home ("All marble floors!") on a spectacular beach ("White sand!") in a number of lovely cities ("Amazing architecture!") with friendly neighbors ("Dancing all night with people who don't know you but love you anyway!")
In fact, she helpfully suggested that we could snag one of these properties for a mere $100,000...less than half of the median price for a typical house in our area.
She went on to say that we could buy a house on the coast in Brazil and retire there, with a delightful lifestyle, plenty of great friends, outstanding and inexpensive medical care, and zero chance of boredom or loneliness.
We weren't surprised that she suggested this. After all, she has an ulterior motive--why, SHE could be the one to manage the property until we decide to retire! She would, of course, have to live in beautiful, coastal, hunk-heavy, dance-crazed Brazil in order to do this, but she was willing to make this supreme sacrifice to support our perfect retirement.
How thoughtful. No, really. It sounds fantastic. I'm turning 45 in June, and that's not too early to think about how I want to spend the next few phases of my life. I truly appreciate the suggestion.
The people I admire most are those who continue to reinvent themselves about every decade, and who laugh out loud at the notion of retirement. They're on their fifth or sixth "career" and fully expect to have a couple more, just for fun.
What we really long for in retirement is time to play, and what we don't recognize is that we should be playing on a daily basis. We need to live our lives in a way that connects us to our creativity and joy. Think of it as the Brazilian plan.
How do you picture yourself at age 65? 75? 85? You've got a decent shot at living to be 100.
Howard and Marika Stone have been inspiring people to reinvent themselves as they get older. On their website, 2Young2Retire.com, they share dozens of stories of folks who have done just that. Their intention is to help others "navigate the uncharted waters of longevity" and they do so with great passion and humor.
Whether we're 20 or 70, we can use mindfulness to help us see who we want to be next. The first step? Pay attention to what we consider to be FUN. Focus on what we do that feels like we're playing instead of working. Notice our "guilty pleasures"--those things we do when we think we should be working on something else.
Here's the good news: You can get paid for having fun. You can help your community while you're doing what you can only describe as goofing off. You can learn new skills and demonstrate overlooked talents in a way that helps others while making you laugh. And it's not too early to start thinking about what that might look like.
Retire your idea of retirement and embrace the concept of reinvention. Look at what you're dreaming about doing, and be mindful of how you can start "investing" in your opportunities for greater fun. That's my personal prescription for the not-enough-Social-Security blues.
That, and perhaps finding a lovely house on the coast in Brazil, where I can become fluent in Portuguese and become a painter, or a novelist, or start a school, or build a playground, or design a community garden, or write songs, or dance til dawn, or be the happiest grandmother alive. Or all of the above.
I'll tell my daughter to start looking.
Maya Talisman Frost is a mind masseuse in Portland, Oregon. Through her company, Real-World Mindfulness Training, she teaches fun and effective eyes-wide-open alternatives to meditation. To subscribe, please visit http://www.MassageYourMind.com
Article Source: http://EzineArticles.com/?expert=Maya_Talisman_Frost
Other
Tara told us that we could buy a beautiful home ("All marble floors!") on a spectacular beach ("White sand!") in a number of lovely cities ("Amazing architecture!") with friendly neighbors ("Dancing all night with people who don't know you but love you anyway!")
In fact, she helpfully suggested that we could snag one of these properties for a mere $100,000...less than half of the median price for a typical house in our area.
She went on to say that we could buy a house on the coast in Brazil and retire there, with a delightful lifestyle, plenty of great friends, outstanding and inexpensive medical care, and zero chance of boredom or loneliness.
We weren't surprised that she suggested this. After all, she has an ulterior motive--why, SHE could be the one to manage the property until we decide to retire! She would, of course, have to live in beautiful, coastal, hunk-heavy, dance-crazed Brazil in order to do this, but she was willing to make this supreme sacrifice to support our perfect retirement.
How thoughtful. No, really. It sounds fantastic. I'm turning 45 in June, and that's not too early to think about how I want to spend the next few phases of my life. I truly appreciate the suggestion.
The people I admire most are those who continue to reinvent themselves about every decade, and who laugh out loud at the notion of retirement. They're on their fifth or sixth "career" and fully expect to have a couple more, just for fun.
What we really long for in retirement is time to play, and what we don't recognize is that we should be playing on a daily basis. We need to live our lives in a way that connects us to our creativity and joy. Think of it as the Brazilian plan.
How do you picture yourself at age 65? 75? 85? You've got a decent shot at living to be 100.
Howard and Marika Stone have been inspiring people to reinvent themselves as they get older. On their website, 2Young2Retire.com, they share dozens of stories of folks who have done just that. Their intention is to help others "navigate the uncharted waters of longevity" and they do so with great passion and humor.
Whether we're 20 or 70, we can use mindfulness to help us see who we want to be next. The first step? Pay attention to what we consider to be FUN. Focus on what we do that feels like we're playing instead of working. Notice our "guilty pleasures"--those things we do when we think we should be working on something else.
Here's the good news: You can get paid for having fun. You can help your community while you're doing what you can only describe as goofing off. You can learn new skills and demonstrate overlooked talents in a way that helps others while making you laugh. And it's not too early to start thinking about what that might look like.
Retire your idea of retirement and embrace the concept of reinvention. Look at what you're dreaming about doing, and be mindful of how you can start "investing" in your opportunities for greater fun. That's my personal prescription for the not-enough-Social-Security blues.
That, and perhaps finding a lovely house on the coast in Brazil, where I can become fluent in Portuguese and become a painter, or a novelist, or start a school, or build a playground, or design a community garden, or write songs, or dance til dawn, or be the happiest grandmother alive. Or all of the above.
I'll tell my daughter to start looking.
Maya Talisman Frost is a mind masseuse in Portland, Oregon. Through her company, Real-World Mindfulness Training, she teaches fun and effective eyes-wide-open alternatives to meditation. To subscribe, please visit http://www.MassageYourMind.com
Article Source: http://EzineArticles.com/?expert=Maya_Talisman_Frost
Other
Live Like A King Not A Pauper In Retirement
We all have choices in life, and we know that some choices we make affect not just us but our family and we also know that many choices we make today will affect us for the rest of our life.
You have to make a choice about the quality of life you would like to enjoy in retirement and you have to make that choice today. You then have to make a choice about how you’re going to set about making your decisions come to financial fruition.
Deciding on the quality of life you would like to enjoy is far simpler than answering the commonly asked question “how much money will I need to retire on?” Only you know whether you’d like to spend six months of the year every year of your retirement on a cruise liner or whether you’d be happy to spend every fine day of your retirement in your own back garden.
Only you can determine whether you’ll want to drink fine wine with your evening meal or diet soda!
So while your financial planner might suggest you need to save half your income today to enable you to live as you do today when you come to retire, you on the other hand might be able to tell the financial planner to remove expensive car loan payments and a mortgage from your retirement income for instance.
Indeed, one of the best things you can do today to enable you to have freedom of choice and the sincere chance of a better retirement is to work to pay off all debt – not just credit cards and car loans but household related debt and in particular your mortgage. Just think how much more money you would have left over at the end of the month if it weren’t for that dreaded mortgage!
By massively reducing your outgoings, by paying back all debt, you will need far less to comfortably live on when you finally give up work.
Another point worth bearing in mind is that the most significant asset most of us have as we approach retirement is our home. Therefore if you own your own home outright when you come to retire you can actually release the equity you have worked so hard to accrue to fund your retirement if you had no other or better options. Obviously this solution only suits some people but having this amount of security to fall back on is bound to offer peace of mind. Therefore do all you can to unburden yourself from the shackles of debt before retirement and you’re far more likely to enjoy life fit for a king.
The financial cost of delaying your retirement planning could make the difference between you enjoying a well deserved and comfortable quality of life after work or you having to take part time employment or seriously down-size in retirement.
Indeed, the longer you put off starting a savings plan for retirement the more of your income you will have to save for longer.
Did you know that if a 25 year old and a 35 year old were to start saving for retirement at 55 and the 25 year old invested £300 a month towards retirement, the 35 year old would have to increase his contributions to £803 a month to achieve the same potential returns?
Don’t put off until tomorrow that which you must get done today. To ensure your financial security and physical comfort in retirement take positive action today.
Rhiannon Williamson is the publisher of http://www.shelteroffshore.com/ - the online resource that guides you to a low tax, maximum investment profit lifestyle.
Shelter Offshore features three main channels - offshore investment, property investment abroad and overseas lifestyle.
Rhiannon Williamson is also the author of ‘The Offshore Advantage’ http://www.shelteroffshore.com/index.php/shelter/offshore_advantage/ which teaches readers how to build secure wealth using their secret offshore advantage.
Article Source: http://EzineArticles.com/?expert=Rhiannon_Williamson
You have to make a choice about the quality of life you would like to enjoy in retirement and you have to make that choice today. You then have to make a choice about how you’re going to set about making your decisions come to financial fruition.
Deciding on the quality of life you would like to enjoy is far simpler than answering the commonly asked question “how much money will I need to retire on?” Only you know whether you’d like to spend six months of the year every year of your retirement on a cruise liner or whether you’d be happy to spend every fine day of your retirement in your own back garden.
Only you can determine whether you’ll want to drink fine wine with your evening meal or diet soda!
So while your financial planner might suggest you need to save half your income today to enable you to live as you do today when you come to retire, you on the other hand might be able to tell the financial planner to remove expensive car loan payments and a mortgage from your retirement income for instance.
Indeed, one of the best things you can do today to enable you to have freedom of choice and the sincere chance of a better retirement is to work to pay off all debt – not just credit cards and car loans but household related debt and in particular your mortgage. Just think how much more money you would have left over at the end of the month if it weren’t for that dreaded mortgage!
By massively reducing your outgoings, by paying back all debt, you will need far less to comfortably live on when you finally give up work.
Another point worth bearing in mind is that the most significant asset most of us have as we approach retirement is our home. Therefore if you own your own home outright when you come to retire you can actually release the equity you have worked so hard to accrue to fund your retirement if you had no other or better options. Obviously this solution only suits some people but having this amount of security to fall back on is bound to offer peace of mind. Therefore do all you can to unburden yourself from the shackles of debt before retirement and you’re far more likely to enjoy life fit for a king.
The financial cost of delaying your retirement planning could make the difference between you enjoying a well deserved and comfortable quality of life after work or you having to take part time employment or seriously down-size in retirement.
Indeed, the longer you put off starting a savings plan for retirement the more of your income you will have to save for longer.
Did you know that if a 25 year old and a 35 year old were to start saving for retirement at 55 and the 25 year old invested £300 a month towards retirement, the 35 year old would have to increase his contributions to £803 a month to achieve the same potential returns?
Don’t put off until tomorrow that which you must get done today. To ensure your financial security and physical comfort in retirement take positive action today.
Rhiannon Williamson is the publisher of http://www.shelteroffshore.com/ - the online resource that guides you to a low tax, maximum investment profit lifestyle.
Shelter Offshore features three main channels - offshore investment, property investment abroad and overseas lifestyle.
Rhiannon Williamson is also the author of ‘The Offshore Advantage’ http://www.shelteroffshore.com/index.php/shelter/offshore_advantage/ which teaches readers how to build secure wealth using their secret offshore advantage.
Article Source: http://EzineArticles.com/?expert=Rhiannon_Williamson
You're Eating Your Retirement Money
Ever think about how eating all those fast food meals for lunch are effecting your pocketbook. Let’s do the math. You eat out 5 days a week at an average cost of $5 to $7 a day.
At $5 a day averaging 20 days a month (and some months more), but let’s just go with 20 days x $5 = $100 a month x 12 months, that is $1200 a year. You could use that $1200 for a vacation, or as the title of this article states, start your own retirement fund. You do the math. Let’s say you are currently 30 years of age and you save that $1200 a year x 35 years (retiring at age 65) = $42,000. Now that is just a straight $42,000 not invested in a mutual fund, IRA, or any type of fund that would pay some interest or grow over the years. It is a lot better than it just going down your throat, never to be seen again.
Let’s do the math for $7 x 20 days = $140 a month x 12 months = $1680 x 35 years = $58,800. And if you spend more for lunch just do the math. It is a substantial sum of money going down the tubes (your esophagus to be exact)!
Years ago, when I worked in Corporate America, my co-workers would be mystified by my ability to buy a new dress, suit, coat, shoes, etc. each month. They consistently remarked on how good my wardrobe looked and wanted to know my secret. It was simple. I saved around $100 per month by bringing my lunch from home instead of eating out. I took some of what I saved for clothes and saved the rest. My friends were amazed that such a small change could have such great benefits for them.
I spend on average $2-$5 a week on lunch depending on what I buy. If for example I buy tuna, I can get that not on sale for $2 a can. Mixed with mayo or dressing, which I already have, that makes a week’s lunch on a slice of bread, which again I already have in house, along with the piece of fruit. For those of you who are sticklers out there, tuna = $2; bread = $3; mayo/dressing = $3; that is still under $10 for the week, and at $5 a day for lunch, what you pay for two days of lunch I am getting lunch for a week. To be a bit more exact: remember, the mayo and bread last for more than one week, so the actual cost is even less than $10 per week.
For those of you who are already complaining you don’t have the time to make lunch. Yes you do, after you have cleaned up after dinner, take the time to make up your lunch for the next day. Take some time on Saturday or Sunday to make up your lunch for the week.
So, start eating smart, and in the majority of cases a lot healthier, today, and the biggest PLUS is start saving lots of money for the special things you want and for an even better retirement.
Copyright 2005 DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach. Visit http://www.hbsdigest.com to start today.
Article Source: http://EzineArticles.com/?expert=Sue_And_Chuck_DeFiore
At $5 a day averaging 20 days a month (and some months more), but let’s just go with 20 days x $5 = $100 a month x 12 months, that is $1200 a year. You could use that $1200 for a vacation, or as the title of this article states, start your own retirement fund. You do the math. Let’s say you are currently 30 years of age and you save that $1200 a year x 35 years (retiring at age 65) = $42,000. Now that is just a straight $42,000 not invested in a mutual fund, IRA, or any type of fund that would pay some interest or grow over the years. It is a lot better than it just going down your throat, never to be seen again.
Let’s do the math for $7 x 20 days = $140 a month x 12 months = $1680 x 35 years = $58,800. And if you spend more for lunch just do the math. It is a substantial sum of money going down the tubes (your esophagus to be exact)!
Years ago, when I worked in Corporate America, my co-workers would be mystified by my ability to buy a new dress, suit, coat, shoes, etc. each month. They consistently remarked on how good my wardrobe looked and wanted to know my secret. It was simple. I saved around $100 per month by bringing my lunch from home instead of eating out. I took some of what I saved for clothes and saved the rest. My friends were amazed that such a small change could have such great benefits for them.
I spend on average $2-$5 a week on lunch depending on what I buy. If for example I buy tuna, I can get that not on sale for $2 a can. Mixed with mayo or dressing, which I already have, that makes a week’s lunch on a slice of bread, which again I already have in house, along with the piece of fruit. For those of you who are sticklers out there, tuna = $2; bread = $3; mayo/dressing = $3; that is still under $10 for the week, and at $5 a day for lunch, what you pay for two days of lunch I am getting lunch for a week. To be a bit more exact: remember, the mayo and bread last for more than one week, so the actual cost is even less than $10 per week.
For those of you who are already complaining you don’t have the time to make lunch. Yes you do, after you have cleaned up after dinner, take the time to make up your lunch for the next day. Take some time on Saturday or Sunday to make up your lunch for the week.
So, start eating smart, and in the majority of cases a lot healthier, today, and the biggest PLUS is start saving lots of money for the special things you want and for an even better retirement.
Copyright 2005 DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach. Visit http://www.hbsdigest.com to start today.
Article Source: http://EzineArticles.com/?expert=Sue_And_Chuck_DeFiore
Retirement Plan Considerations Cheat Sheet for Small Business
RETIREMENT PLAN CONSIDERATIONS are something every small business person needs to be thinking about. Do you have a strategic plan? Don't expect to have social security save you.
Topics to consider when developing a retirement plan for yourself and your employees.
ADVISOR:
Independent Advisory Firm
Insurance Brokerage Based
Securities Brokerage Based
PLAN ADMINISTRATOR/SERVICE PROVIDER:
Third Party Administrator
Insurance Company
Mutual Fund Company
Securities Brokerage Company
TRUSTEE OR CUSTODIAN:
Insurance Company
Mutual Fund Company
Securities Brokerage Company
Self-Trustee
TYPE OF PLAN:
IRA
Roth IRA
Simplified Employee Pension Plan - (SEP)
Savings Incentive Match Plan For Employees IRA - (SIMPLE IRA)
Savings Incentive Match Plan For Employees 401 (k) - (SIMPLE 401 (k))
401 (k) Plan
Money Purchase Pension Plan
Profit Sharing Pension Plan
403 (b) Plan
Target Benefit Plan
Defined Benefit Pension Plan
OTHER PLAN CONSIDERATIONS:
Suitability
Plan Features (Including Cost, Establishment and Maintenance)
Plan Contribution Limits
Set Up And Contribution Deadlines
Eligibility Requirements
Investment Options
As a small business person you may eventually sell your business, perhaps for a large sum, but with inflation and cost of living will it be enough? People are living longer, so if you think you will work until age 60 or 70 and then sell your business, you may need enough money to live for another forty or more years. The avearge life expectancy for a 30-40 year old is age 110. That is without considering any new break through miracle drugs, which scientists assure us are definitely on there way.
Currently we see the political tug of war as to what to do about social security. Do you have a plan? Are you willing to take that risk?
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance in the Online Think Tank and solve the problems of the World; www.WorldThinkTank.net/
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
Topics to consider when developing a retirement plan for yourself and your employees.
ADVISOR:
Independent Advisory Firm
Insurance Brokerage Based
Securities Brokerage Based
PLAN ADMINISTRATOR/SERVICE PROVIDER:
Third Party Administrator
Insurance Company
Mutual Fund Company
Securities Brokerage Company
TRUSTEE OR CUSTODIAN:
Insurance Company
Mutual Fund Company
Securities Brokerage Company
Self-Trustee
TYPE OF PLAN:
IRA
Roth IRA
Simplified Employee Pension Plan - (SEP)
Savings Incentive Match Plan For Employees IRA - (SIMPLE IRA)
Savings Incentive Match Plan For Employees 401 (k) - (SIMPLE 401 (k))
401 (k) Plan
Money Purchase Pension Plan
Profit Sharing Pension Plan
403 (b) Plan
Target Benefit Plan
Defined Benefit Pension Plan
OTHER PLAN CONSIDERATIONS:
Suitability
Plan Features (Including Cost, Establishment and Maintenance)
Plan Contribution Limits
Set Up And Contribution Deadlines
Eligibility Requirements
Investment Options
As a small business person you may eventually sell your business, perhaps for a large sum, but with inflation and cost of living will it be enough? People are living longer, so if you think you will work until age 60 or 70 and then sell your business, you may need enough money to live for another forty or more years. The avearge life expectancy for a 30-40 year old is age 110. That is without considering any new break through miracle drugs, which scientists assure us are definitely on there way.
Currently we see the political tug of war as to what to do about social security. Do you have a plan? Are you willing to take that risk?
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance in the Online Think Tank and solve the problems of the World; www.WorldThinkTank.net/
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
When It's Too Late to Save for Retirement
You are 55 years old (or somewhere around there) and your company is going to force you to retire at 65. You have $35,000 saved in your 401K and that’s all. The house will be paid for by then so you will have a place to live. The company pension will pay about $1,000/month and so will Social Security. What will my life style be like at that time?
Let me give you a clue. You are going to need just about as much as you are making now even with the house paid for. If you are lucky you might have health insurance with your pension, but don’t count on it. You hope Uncle Sam will help out. But don’t count on it.
When that savings you have runs out maybe one of your kids will let you and the misses have the spare room. Scary, huh! Maybe one kid lives in Minnesota where you can spend the summer and the other in Florida where the winters will be nice. But don’t count on it.
You might get lucky and buy one of those stocks that skyrocket from $2.00 to $200. Those chances are 1 in 100 and you don’t have enough money to be taking chances. But don’t count on it.
Whatever time you have left between now and retirement you should start managing your assets to have them grow and compound better than in the past. If you continue to do what you have done you are going to have the same results. It is a choice between cat food and filet mignon.
A better portfolio manager is not the answer. Saving more will help, but you need to live today. Having your house paid for is a huge plus. A second job with all that income going to savings makes sense – if you can do it.
One of the better solutions is starting a business you can run from home. The Internet has many offers. My caveat here is never send anyone upfront money. It takes the Avon lady 3 to 5 years before she makes any money. There are many legitimate small businesses like this that can provide a second income, but you must invest both time and effort and be persistent. You must work it every day.
Don’t choose any business that requires a substantial capital investment. If you have a friend or relative that has a home-based business you will want to spend time with him. Even if you don’t use that vehicle you can learn plenty from that person.
You local library has hundreds of books devoted to helping folks start a business. The Internet is a great source. Take time to investigate and don’t take anyone’s word for their pie-in-the-sky story. Always get references and carefully check them. You want to talk to someone who recently started in that business about 6 months ago, another about a year before and a third about 2 years prior. Maybe several of each. Once you make the commitment you must hit the ground running and don’t stop. Either it will work in a few months or it won’t. Hard work is the only way you will find out.
It is not too late provided you start NOW.
Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005
Article Source: http://EzineArticles.com/?expert=Al_Thomas
Let me give you a clue. You are going to need just about as much as you are making now even with the house paid for. If you are lucky you might have health insurance with your pension, but don’t count on it. You hope Uncle Sam will help out. But don’t count on it.
When that savings you have runs out maybe one of your kids will let you and the misses have the spare room. Scary, huh! Maybe one kid lives in Minnesota where you can spend the summer and the other in Florida where the winters will be nice. But don’t count on it.
You might get lucky and buy one of those stocks that skyrocket from $2.00 to $200. Those chances are 1 in 100 and you don’t have enough money to be taking chances. But don’t count on it.
Whatever time you have left between now and retirement you should start managing your assets to have them grow and compound better than in the past. If you continue to do what you have done you are going to have the same results. It is a choice between cat food and filet mignon.
A better portfolio manager is not the answer. Saving more will help, but you need to live today. Having your house paid for is a huge plus. A second job with all that income going to savings makes sense – if you can do it.
One of the better solutions is starting a business you can run from home. The Internet has many offers. My caveat here is never send anyone upfront money. It takes the Avon lady 3 to 5 years before she makes any money. There are many legitimate small businesses like this that can provide a second income, but you must invest both time and effort and be persistent. You must work it every day.
Don’t choose any business that requires a substantial capital investment. If you have a friend or relative that has a home-based business you will want to spend time with him. Even if you don’t use that vehicle you can learn plenty from that person.
You local library has hundreds of books devoted to helping folks start a business. The Internet is a great source. Take time to investigate and don’t take anyone’s word for their pie-in-the-sky story. Always get references and carefully check them. You want to talk to someone who recently started in that business about 6 months ago, another about a year before and a third about 2 years prior. Maybe several of each. Once you make the commitment you must hit the ground running and don’t stop. Either it will work in a few months or it won’t. Hard work is the only way you will find out.
It is not too late provided you start NOW.
Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005
Article Source: http://EzineArticles.com/?expert=Al_Thomas
Can a Microbusiness Help You Enjoy a Better Retirement?
Not having enough money for a comfortable retirement tops the list of financial concerns among aging Americans, according to a recent Gallup Poll. It even outweighs peoples’ worries about having a serious illness or accident.
With statistics showing that Americans can expect to live 20 or more years after reaching retirement age and our longevity continuing to inch upward, these fears could be well founded.
Three out of 10 American workers haven’t saved at all for retirement, and among those who do, many have not saved enough, according to another study. The study showed that three out of 10 workers age 55 or older have saved less than $25,000.
Many of us plan to work past the normal retirement age. But at this rate, we may not have a choice. Some of us in the Baby Boom generation can expect to work beyond age 65, whether we want to or not.
There is an alternative to having to work full-time until we’re in a wheelchair. It’s also a smart choice as we get past age 50 and want to slow down a bit, but still stay active and stimulated. And that’s to gradually make the transition from working full-time as an employee to being in business for ourselves on a contract or per-project basis. By planning ahead, you can gradually turn your job skills into a “microbusiness” while you are still employed.
If you have worked in a specific industry for 10, 15 or more years, you are ideally suited for this type of transition. You can set up a home office in a spare bedroom of your home, get the equipment you need and gradually establish your business.
When the time comes and you want to make the change, you can do it on your own terms – often by negotiating a contract with your existing employers for 50 percent of your time. There are other ways to make the change, such as negotiating with your employer for a reduced work week, or working from home as a “teleworker” for a few days a week.
Still others have begun their private practice by moonlighting – doing a few projects for other clients on the side at night or on weekends in the year leading up to their departure, and building up a clientele that way. Provided such work isn’t prohibited by your full-time employment contract, it’s another smart way to get started.
Enjoy The freedom
Being your own boss means you get to choose how hard you work and how much you are compensated. If you want to earn extra cash for an upcoming trip or purchase, you can work a few extra hours per week or take an extra project. If you want to take four weeks off and visit friends in Florida, simply plan ahead, keep your clients informed, and off you go.
Perhaps that’s why people over 50 are much more likely to be self-employed, according to a study commissioned by the American Association of Retired Persons (AARP). The study showed that 16 percent of people over 50 were self-employed, compared with 10 percent of the general workforce. Plus one-third of self-employed seniors were first-time entrepreneurs who began their business after turning 50 and spending many years working for other people.
Being in business for yourself… especially after a lifetime of being an employee for a larger organization… is the next best thing to being financially independent while still earning a living.
You can scale back your hours worked per week to ease into retirement. Or work in bursts of activity to earn extra money for special purchases or travel. And the best part is… it often doesn’t even feel like “work” anymore.
Barnaby Kalan is an award-winning copywriter and direct marketing consultant who also helps people launch and build their businesses. His book Outsourcing Yourself reveals the safest, smartest ways to turn your current job skills into a six-figure income as a self-employed freelancer or consultant.
For details, visit http://www.outsourcing-yourself.com
Article Source: http://EzineArticles.com/?expert=Barnaby_Kalan
With statistics showing that Americans can expect to live 20 or more years after reaching retirement age and our longevity continuing to inch upward, these fears could be well founded.
Three out of 10 American workers haven’t saved at all for retirement, and among those who do, many have not saved enough, according to another study. The study showed that three out of 10 workers age 55 or older have saved less than $25,000.
Many of us plan to work past the normal retirement age. But at this rate, we may not have a choice. Some of us in the Baby Boom generation can expect to work beyond age 65, whether we want to or not.
There is an alternative to having to work full-time until we’re in a wheelchair. It’s also a smart choice as we get past age 50 and want to slow down a bit, but still stay active and stimulated. And that’s to gradually make the transition from working full-time as an employee to being in business for ourselves on a contract or per-project basis. By planning ahead, you can gradually turn your job skills into a “microbusiness” while you are still employed.
If you have worked in a specific industry for 10, 15 or more years, you are ideally suited for this type of transition. You can set up a home office in a spare bedroom of your home, get the equipment you need and gradually establish your business.
When the time comes and you want to make the change, you can do it on your own terms – often by negotiating a contract with your existing employers for 50 percent of your time. There are other ways to make the change, such as negotiating with your employer for a reduced work week, or working from home as a “teleworker” for a few days a week.
Still others have begun their private practice by moonlighting – doing a few projects for other clients on the side at night or on weekends in the year leading up to their departure, and building up a clientele that way. Provided such work isn’t prohibited by your full-time employment contract, it’s another smart way to get started.
Enjoy The freedom
Being your own boss means you get to choose how hard you work and how much you are compensated. If you want to earn extra cash for an upcoming trip or purchase, you can work a few extra hours per week or take an extra project. If you want to take four weeks off and visit friends in Florida, simply plan ahead, keep your clients informed, and off you go.
Perhaps that’s why people over 50 are much more likely to be self-employed, according to a study commissioned by the American Association of Retired Persons (AARP). The study showed that 16 percent of people over 50 were self-employed, compared with 10 percent of the general workforce. Plus one-third of self-employed seniors were first-time entrepreneurs who began their business after turning 50 and spending many years working for other people.
Being in business for yourself… especially after a lifetime of being an employee for a larger organization… is the next best thing to being financially independent while still earning a living.
You can scale back your hours worked per week to ease into retirement. Or work in bursts of activity to earn extra money for special purchases or travel. And the best part is… it often doesn’t even feel like “work” anymore.
Barnaby Kalan is an award-winning copywriter and direct marketing consultant who also helps people launch and build their businesses. His book Outsourcing Yourself reveals the safest, smartest ways to turn your current job skills into a six-figure income as a self-employed freelancer or consultant.
For details, visit http://www.outsourcing-yourself.com
Article Source: http://EzineArticles.com/?expert=Barnaby_Kalan
The Top 10 Ways To Take the Fear Out of Retirement
1. “What do you mean, you hate to travel?”
Have you and your spouse actually sat down and discussed how each of you envisions retirement? If your dreams are completely opposite of your spouse’s, both of you are going to be disappointed. Honestly talk about them before you get the gold watch. Be creative and open to compromise, so both of your dreams can come true.
2. “You mean, you’re here ALL the time, now?”
Spending all this quality time together may seem like a wonderful idea, but remember, you both have daily routines, some of which may have been 30 years in the making. Also, you’re not used to spending 24 hours a day, 7 days a week in each other’s company. Experienced retirees say this is such a big adjustment, they’d recommend pre-retirement counseling along the lines of marriage counseling! Recognize and respect the needs both of you have for space, as well as each other’s routines.
3. Money matters, and so does peace of mind.
If you haven’t already, consult with a financial advisor to discuss how to best manage your assets for the long haul, as people are living longer and longer. Revisit your health and life insurance policies. Update or write your will, and consider a Living Will or Advanced Health Care Directive to help guide your loved ones through a difficult time.
4. Use it or lose it.
It’s not just a cliché. Maintaining some level of regular physical exercise, whether it’s walking, gardening, or golf, can help improve balance, and retain flexibility. If you feel like you need an ejector seat in your Lazy-Boy, start small, but start, before you solidify!
5. Where did I put my keys?
What’s good for the body is good for the mind. Studies have shown that working your mind is key to staying mentally sharp. Experts recommend a daily crossword puzzle, or a game of Scrabble® along with your vitamins and apple a day.
6. Set limits.
“Oh, Mom can do that; she’s retired.” Your time doesn’t become less valuable once you retire – although others may seem to think so. There’s nothing wrong with helping out, so long as you’re not ignoring yourself. Remember to respect your own time and plans; and soon others will, too.
7. Clean out your closets.
As many retirees and empty-nesters downsize into apartments or smaller homes, they realize that they just don’t have the room for everything anymore. Rather than waiting until the last minute and feeling overwhelmed with the size of the job, start now and take small bites. Clean out your closets and put together a bag for the Salvation Army or Goodwill. Give that old table to a college kid, just starting out. Who knows, you might find something worth taking on “Antiques Roadshow!” Plus, your kids will thank you for it.
8. “So, what do you do?”
Ever get the feeling that people stop listening once you tell them you’re retired? One of the hardest parts of retirement life is realizing how your job made you feel appreciated, competent and maybe even powerful. Your talents, skills and gifts didn’t evaporate when you walked out the door on your last day. The first step is recognizing what you got out of the job – it was more than just having a place to go every day. Step 2 is finding new outlets for all you have to offer.
9. Try something new.
Now’s the perfect time to live out that long hidden dream, learn a new skill, take a class or pick up that hobby you dropped because you just didn’t have the time. If anything seems the least bit interesting, learn more about it. Become an expert in something. Learn to cook Indian food. Try Tai Chi. If you don’t like it, try something else!
10. It’s not just about you.
As mentioned above, your talents, skills and gifts don’t have a limited shelf life. Consider using them to give back to the world. Your most valuable asset is your time – and your church, your local volunteer agencies and a whole host of others are waiting in line. Check out www.volunteermatch.org or check your local paper for something that intrigues you – even if it’s completely different than anything else you’ve ever done. It’s never too late to start on your personal legacy.
About The Author
Catherine L. Farrar is a life coach who specializes in people transitioning from a full-time career to full- or part-time retirement. She can be reached at catherine@secondspringcoaching.com, or visit her website at www.secondspringcoaching.com
Article Source: http://EzineArticles.com/?expert=Catherine_L._Farrar
Have you and your spouse actually sat down and discussed how each of you envisions retirement? If your dreams are completely opposite of your spouse’s, both of you are going to be disappointed. Honestly talk about them before you get the gold watch. Be creative and open to compromise, so both of your dreams can come true.
2. “You mean, you’re here ALL the time, now?”
Spending all this quality time together may seem like a wonderful idea, but remember, you both have daily routines, some of which may have been 30 years in the making. Also, you’re not used to spending 24 hours a day, 7 days a week in each other’s company. Experienced retirees say this is such a big adjustment, they’d recommend pre-retirement counseling along the lines of marriage counseling! Recognize and respect the needs both of you have for space, as well as each other’s routines.
3. Money matters, and so does peace of mind.
If you haven’t already, consult with a financial advisor to discuss how to best manage your assets for the long haul, as people are living longer and longer. Revisit your health and life insurance policies. Update or write your will, and consider a Living Will or Advanced Health Care Directive to help guide your loved ones through a difficult time.
4. Use it or lose it.
It’s not just a cliché. Maintaining some level of regular physical exercise, whether it’s walking, gardening, or golf, can help improve balance, and retain flexibility. If you feel like you need an ejector seat in your Lazy-Boy, start small, but start, before you solidify!
5. Where did I put my keys?
What’s good for the body is good for the mind. Studies have shown that working your mind is key to staying mentally sharp. Experts recommend a daily crossword puzzle, or a game of Scrabble® along with your vitamins and apple a day.
6. Set limits.
“Oh, Mom can do that; she’s retired.” Your time doesn’t become less valuable once you retire – although others may seem to think so. There’s nothing wrong with helping out, so long as you’re not ignoring yourself. Remember to respect your own time and plans; and soon others will, too.
7. Clean out your closets.
As many retirees and empty-nesters downsize into apartments or smaller homes, they realize that they just don’t have the room for everything anymore. Rather than waiting until the last minute and feeling overwhelmed with the size of the job, start now and take small bites. Clean out your closets and put together a bag for the Salvation Army or Goodwill. Give that old table to a college kid, just starting out. Who knows, you might find something worth taking on “Antiques Roadshow!” Plus, your kids will thank you for it.
8. “So, what do you do?”
Ever get the feeling that people stop listening once you tell them you’re retired? One of the hardest parts of retirement life is realizing how your job made you feel appreciated, competent and maybe even powerful. Your talents, skills and gifts didn’t evaporate when you walked out the door on your last day. The first step is recognizing what you got out of the job – it was more than just having a place to go every day. Step 2 is finding new outlets for all you have to offer.
9. Try something new.
Now’s the perfect time to live out that long hidden dream, learn a new skill, take a class or pick up that hobby you dropped because you just didn’t have the time. If anything seems the least bit interesting, learn more about it. Become an expert in something. Learn to cook Indian food. Try Tai Chi. If you don’t like it, try something else!
10. It’s not just about you.
As mentioned above, your talents, skills and gifts don’t have a limited shelf life. Consider using them to give back to the world. Your most valuable asset is your time – and your church, your local volunteer agencies and a whole host of others are waiting in line. Check out www.volunteermatch.org or check your local paper for something that intrigues you – even if it’s completely different than anything else you’ve ever done. It’s never too late to start on your personal legacy.
About The Author
Catherine L. Farrar is a life coach who specializes in people transitioning from a full-time career to full- or part-time retirement. She can be reached at catherine@secondspringcoaching.com, or visit her website at www.secondspringcoaching.com
Article Source: http://EzineArticles.com/?expert=Catherine_L._Farrar
Retirement - It's Sooner Than You Think!! (Honestly)
Many people hear "retirement" and think— what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?
Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?
One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement.
Many people are still thinking there might be a thing called Social Security around when they retire. Social Security: as of 2004, the average annual Social Security retirement benefit is approximately $11,000. That is not a lot to live on folks. Plus, we all hear the news periodically that there might not be any Social Security around when we get older and need it.
And as a further WAKE UP call, I found a calculator which estimated (without Social Security):
a couple at 40
bringing in $90k a year (together)
with very modest investments
would need to save an additional $2,690,000.00 ( yes 2 million +) in order to retire at 65-- OR – plan on working an additional 29 years!!
Now before you get overwhelmed and click over to another article—lets put our heads together and simply cover a few very very basic start up basics.
1) Standard Of Living: You need to know at what standard of living you will want to live during retirement.
2) Basic Living Expenses: You will need to calculate the cost of basic living expenses (at that level) i.e. electric bill now of $200 = what in 2030?
3) Hobbies and Leisure Activities: Know what type of hobbies, and leisure activities you will keep busy with and what their cost might be then.
4) Family Visiting / Travel: Realize that more and more children move away when grown. So while they work out of state—YOU may need to do the traveling to see them. Plan for these costs.
5) Convalescent Care (nursing home costs) provincially run about $100/day median. You will need to multiply that times the same 4% inflation rate. Then multiply that times the number of years before you may need it—to approximate how much you may need to afford for your housing when you need assistance. Truth be known—WE need to plan to handle that cost ourselves, rather than think our children will be able to take on that kind of additional cost.
You will need to total yearly amounts. You will need the approximate yearly cost to live (at your desired level) during regular healthy retirement. And, you will need the total yearly amount of costs to live in assisted or full care living facilities ( for each – you and mate).
Multiply each yearly amount by the number of years you might be living in that circumstance. Example: Retire at 65. Live healthy retirement- 15 years (so 15 x yearly cost of healthy living) . Live assisted – 8 years ( so 8 x yearly cost of living in care).
You now have two totals that when added together equal your estimation of the total dollar amount you will need to draw from in order to live after retiring. NOW you are ready to begin planning your investments in such a way that you can achieve that TOTAL number by the time you retire.
Here are some tools to help you now that you are ready to take that first step:
USA Today retirement cost calculator: http://www.calcbuilder.com/cgi-bin/calcs/RET2.cgi/usatoday
Motley Fool’s retirement area: http://www.fool.com/retirement.htm?source=PFinAg
Metlife’s retirement area: http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P1946,00.html
About.com’s HUGE retirement resource area: http://www.retireplan.about.com/
Until next time—all the best,
Kate
About The Author
Kate Hufstetler is a well established Personal Life Coach. Her clients come from both the United States and overseas. She offers coaching services via email and phone consultations. For more information and current highlights please visit: http://www.comedreamwithme.com/start_today.html
Kate@comedreamwithme.com
Article Source: http://EzineArticles.com/?expert=Kate_Hufstetler
Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?
One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement.
Many people are still thinking there might be a thing called Social Security around when they retire. Social Security: as of 2004, the average annual Social Security retirement benefit is approximately $11,000. That is not a lot to live on folks. Plus, we all hear the news periodically that there might not be any Social Security around when we get older and need it.
And as a further WAKE UP call, I found a calculator which estimated (without Social Security):
a couple at 40
bringing in $90k a year (together)
with very modest investments
would need to save an additional $2,690,000.00 ( yes 2 million +) in order to retire at 65-- OR – plan on working an additional 29 years!!
Now before you get overwhelmed and click over to another article—lets put our heads together and simply cover a few very very basic start up basics.
1) Standard Of Living: You need to know at what standard of living you will want to live during retirement.
2) Basic Living Expenses: You will need to calculate the cost of basic living expenses (at that level) i.e. electric bill now of $200 = what in 2030?
3) Hobbies and Leisure Activities: Know what type of hobbies, and leisure activities you will keep busy with and what their cost might be then.
4) Family Visiting / Travel: Realize that more and more children move away when grown. So while they work out of state—YOU may need to do the traveling to see them. Plan for these costs.
5) Convalescent Care (nursing home costs) provincially run about $100/day median. You will need to multiply that times the same 4% inflation rate. Then multiply that times the number of years before you may need it—to approximate how much you may need to afford for your housing when you need assistance. Truth be known—WE need to plan to handle that cost ourselves, rather than think our children will be able to take on that kind of additional cost.
You will need to total yearly amounts. You will need the approximate yearly cost to live (at your desired level) during regular healthy retirement. And, you will need the total yearly amount of costs to live in assisted or full care living facilities ( for each – you and mate).
Multiply each yearly amount by the number of years you might be living in that circumstance. Example: Retire at 65. Live healthy retirement- 15 years (so 15 x yearly cost of healthy living) . Live assisted – 8 years ( so 8 x yearly cost of living in care).
You now have two totals that when added together equal your estimation of the total dollar amount you will need to draw from in order to live after retiring. NOW you are ready to begin planning your investments in such a way that you can achieve that TOTAL number by the time you retire.
Here are some tools to help you now that you are ready to take that first step:
USA Today retirement cost calculator: http://www.calcbuilder.com/cgi-bin/calcs/RET2.cgi/usatoday
Motley Fool’s retirement area: http://www.fool.com/retirement.htm?source=PFinAg
Metlife’s retirement area: http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P1946,00.html
About.com’s HUGE retirement resource area: http://www.retireplan.about.com/
Until next time—all the best,
Kate
About The Author
Kate Hufstetler is a well established Personal Life Coach. Her clients come from both the United States and overseas. She offers coaching services via email and phone consultations. For more information and current highlights please visit: http://www.comedreamwithme.com/start_today.html
Kate@comedreamwithme.com
Article Source: http://EzineArticles.com/?expert=Kate_Hufstetler
Build Your Retirement By Investing In Real Estate
Most people buy one or two properties. One is their primary residence and sometimes they have a vacation home. Few people invest in real estate. The main reason is they are not comfortable sticking their neck out in something they are not entirely familiar with. There is so much that needs to be understood and it just seems overwhelming to the majority of people.
Many homeowners pay off their house and retire or keep working their job. Their equity is money sitting their quietly and not doing anything for them. With that money they could invest wisely and be vacationing or playing tennis instead of working. There's nothing wrong with working if you enjoy your job, but how many people do? Your equity can be used to buy other properties, it's called leverage. Call your bank today and talk to them about an equity line of credit. You can set it up before you do any shopping. Remember you are a loyal customer and deserve a good rate so know what other lenders are charging before you talk to them.
Maybe you can do all the leg work and team up with someone you know who will put up the money. You can split the profits how the two or three of you agree upon (IN WRITING). Then you do the homework and find the good deal. They are in every town, city and county all over the country. That's why you see signs and ads everywhere saying "we buy houses".
This is not quick rich schemes. We have documentation of investors making figures such as $25,000 in 30 days. And buying 5 government owned houses totalling approximately $150,000 being worth about $275,000. One of our investors is 85 years old and already has money. He has 4 adult children and a wife. He also belongs to a church which encourages retaining a life estate and leaving everything to them.
Suzie is a licensed real estate broker and certified residential appraiser with twenty years experience. Other professionals have contributed as well. http://www.freewebs.com/realestatenews
Article Source: http://EzineArticles.com/?expert=Suzie_Shannon
Many homeowners pay off their house and retire or keep working their job. Their equity is money sitting their quietly and not doing anything for them. With that money they could invest wisely and be vacationing or playing tennis instead of working. There's nothing wrong with working if you enjoy your job, but how many people do? Your equity can be used to buy other properties, it's called leverage. Call your bank today and talk to them about an equity line of credit. You can set it up before you do any shopping. Remember you are a loyal customer and deserve a good rate so know what other lenders are charging before you talk to them.
Maybe you can do all the leg work and team up with someone you know who will put up the money. You can split the profits how the two or three of you agree upon (IN WRITING). Then you do the homework and find the good deal. They are in every town, city and county all over the country. That's why you see signs and ads everywhere saying "we buy houses".
This is not quick rich schemes. We have documentation of investors making figures such as $25,000 in 30 days. And buying 5 government owned houses totalling approximately $150,000 being worth about $275,000. One of our investors is 85 years old and already has money. He has 4 adult children and a wife. He also belongs to a church which encourages retaining a life estate and leaving everything to them.
Suzie is a licensed real estate broker and certified residential appraiser with twenty years experience. Other professionals have contributed as well. http://www.freewebs.com/realestatenews
Article Source: http://EzineArticles.com/?expert=Suzie_Shannon
New Definition of Retirement
A new definition of retirement is evolving. It’s one that’s focused on continual exploration, learning and growth. Where the old retirement promised no pressure and stress but left you with no personal growth, no stimulating interaction and no sense of achievement, the new retirement promises life meaning, personal fulfillment, and realization of long-held dreams and ‘fun’. It’s a time for discovery not felt since youth. What do you dream about? Is it owning a dream home at the lake? Or maybe starting your own business? How about going back to college or taking tree planting lessons? You might spend time with a loved one, help people who are less fortunate, or travel.
I believe the new word for this stage should be ‘opportunity’! After all, the sky’s the limit for the choices you have during this exciting time.
“In the U.S. alone, more than 10,000 people retire every day. In Canada, the number is over 1,000” (The New Retirement, Richard P. Johnson, Ph.D.). People are living longer with a shift occurring where retirees find new ways to contribute to society. People are also retiring earlier, on average around 57. For some, this means leaving the corporate world so they can enter and exit work projects, pursue education or travel. All of this requires planning!
Men and women entering the retirement phase of their life are the best-educated, wealthiest, healthiest, most accomplished generation in history. Yet, many are confused and highly stressed about what they begin to experience at this time in their life.
Through the use of assessments we can determine where you are now, and where you want to be. Through coaching, you can discover yourself and how to live the life you’ve dreamt of. Retirement is not an ending; it is a new beginning, full of possibilities and purpose.
"Tracey Fieber has been a very perceptive person in hearing the missing parts of what I say and unveiling them to me to perform better in my life," said Janet of New York. "She has helped me with marketing, using my time to it's fullest and structuring it to be used better suggesting specific ways to improve my goals when stumped for solutions. We enjoyed each other even during low times of life. I would recommend her as a proficient coach to help others as she has helped me move to the next level of success and understanding myself.”
Janet is in good company. One of the more than 76 million boomers turns 50 every 7.5 seconds, with every coming year over 4 million men and women will join the ranks of the 50-plus age group, according to AARP figures. "People turning 50 today have half of their adult lives ahead of them," said William Novelli of AARP. "They are beginning to use that milestone to enjoy new-found freedoms, make new choices, and dream new dreams." Not all retirees will want to pursue this new retirement. Those that do will want to discover their success with the help of a coach.
Tracey Fieber, CTACC, is a Life and Retirement Coach, helping professionals 45 - 70 to make their most cherished dreams clear, then bring them to reality by exploring their strengths and their best opportunities.
Tracey is an author and speaker in the fields of life and retirement coaching. Her coaching and teleclasses integrate her background including ten years of financial industry marketing, training and human resources experience together with personal and professional coaching. She is a Graduate of Coach Training Alliance and has taken advanced training in working with adult learners. Tracey travels internationally and offers retirement coaching on a variety of topics. Please visit her blog at http://www.coachingwithtracey.typepad.com or email her at traceyfieber@sasktel.net
“Five Strategies for Creating a Successful Retirement” is a free Teleclass held monthly. To register for this or a variety of Coachville classes, go to http://tinyurl.com/4og36
Article Source: http://EzineArticles.com/?expert=Tracey_Fieber
I believe the new word for this stage should be ‘opportunity’! After all, the sky’s the limit for the choices you have during this exciting time.
“In the U.S. alone, more than 10,000 people retire every day. In Canada, the number is over 1,000” (The New Retirement, Richard P. Johnson, Ph.D.). People are living longer with a shift occurring where retirees find new ways to contribute to society. People are also retiring earlier, on average around 57. For some, this means leaving the corporate world so they can enter and exit work projects, pursue education or travel. All of this requires planning!
Men and women entering the retirement phase of their life are the best-educated, wealthiest, healthiest, most accomplished generation in history. Yet, many are confused and highly stressed about what they begin to experience at this time in their life.
Through the use of assessments we can determine where you are now, and where you want to be. Through coaching, you can discover yourself and how to live the life you’ve dreamt of. Retirement is not an ending; it is a new beginning, full of possibilities and purpose.
"Tracey Fieber has been a very perceptive person in hearing the missing parts of what I say and unveiling them to me to perform better in my life," said Janet of New York. "She has helped me with marketing, using my time to it's fullest and structuring it to be used better suggesting specific ways to improve my goals when stumped for solutions. We enjoyed each other even during low times of life. I would recommend her as a proficient coach to help others as she has helped me move to the next level of success and understanding myself.”
Janet is in good company. One of the more than 76 million boomers turns 50 every 7.5 seconds, with every coming year over 4 million men and women will join the ranks of the 50-plus age group, according to AARP figures. "People turning 50 today have half of their adult lives ahead of them," said William Novelli of AARP. "They are beginning to use that milestone to enjoy new-found freedoms, make new choices, and dream new dreams." Not all retirees will want to pursue this new retirement. Those that do will want to discover their success with the help of a coach.
Tracey Fieber, CTACC, is a Life and Retirement Coach, helping professionals 45 - 70 to make their most cherished dreams clear, then bring them to reality by exploring their strengths and their best opportunities.
Tracey is an author and speaker in the fields of life and retirement coaching. Her coaching and teleclasses integrate her background including ten years of financial industry marketing, training and human resources experience together with personal and professional coaching. She is a Graduate of Coach Training Alliance and has taken advanced training in working with adult learners. Tracey travels internationally and offers retirement coaching on a variety of topics. Please visit her blog at http://www.coachingwithtracey.typepad.com or email her at traceyfieber@sasktel.net
“Five Strategies for Creating a Successful Retirement” is a free Teleclass held monthly. To register for this or a variety of Coachville classes, go to http://tinyurl.com/4og36
Article Source: http://EzineArticles.com/?expert=Tracey_Fieber
Retirement or Financial Freedom?
In the past most people never retired. They died. The average life expectancy was much less than it is these days, and there were no financial planners around to help people save up enough to quit work. As recently as the 1960’s, if you did manage to save up enough money to retire, you’d be lucky to live another 5 or 6 years before you kicked the bucket. This made financial planning for retirement a little easier because you really only needed enough income for a few years.
Nowadays, if you retire, chances are you can live forever. Well, it can seem like forever…especially if you haven’t saved up enough money. It is a daunting task, attempting to set aside enough money to supply an income for 25 or 30 years, in the 15, 10 or 5 years you have before you retire. We say this because most people don’t get really serious about their retirement planning until they hit 50…and realize they had wanted to quit work at 55!
This is the standard model that has been followed since we began living long enough to bother with retirement savings. You set aside enough cash to cover things off at some future distant time. You build the nest egg and then hope it lasts, and the financial planning community is right there to help you. And yet this is not how the most successful people in our community do things at all!
Still, most people are busily trading their time for their money. As an employee, you are limited by how much time you can actually devote to your job, and you are limited by how much time you want to devote to your job. Time you give to your workplace is time you don’t get for yourself. It’s similar for self-employed people such as our selves. The more successful we are as financial advisors, the more ‘in demand’ we become, and the less time we have.
Retirement looks pretty good when you’re an employee, or a self-employed person. You’ll have the money coming in, and the time for yourself. The problem is that it is an awful long way off. Is there another way?
The first time Rick read ‘Rich Dad, Poor Dad’, he just got irritated. After all, this was the book that pointed out how he was locked in the self-employed cycle where success leads to less free time. And he likes his free time. However, author Robert Kiyosaki also proposed ‘an out’. It’s called passive income. Passive income is income you have coming in to the household that you don’t really work for anymore. The key is that it is designed to happen in the near future instead of the distant future.
Since reading his books we have begun to change our financial plan. Instead of continuing to organize our finances around future income for a distant ‘retirement’, we are re-orienting things toward near-future passive income and ‘financial freedom’. We have been doing this by purchasing income-producing real estate and by looking to start internet businesses.
The success of our new ‘passive income’ plan remains to be seen, but it is interesting to note how changing our end result from retirement to financial freedom has completely altered the path we’re taking. These two goals are NOT the same. When you build a retirement nest egg you are looking to draw an income from it at some future time. When you are looking to attain financial freedom, you are looking to purchase or create assets which provide you with ‘passive’ income right away.
Should everybody be changing their financial plan? Of course not. For one thing, many people hate the idea of being landlords, and many others don’t have the stomach for business, let alone the technology business. Retirement planning is still needed. RRSP’s, mutual funds, and other longer term savings programs still have their place. There will always be employees and self-employed people who rather like what they do and are quite okay working until their retirement age.
All the same, if you are wondering if there might be a better way to ensure your future financial wellbeing ‘sooner’, perhaps you should pick up a copy of ‘Rich Dad, Poor Dad’… and get irritated. Either way, it will probably turn out better for you than it did in the past.
In the past most people never retired. They died.
About The Author
Rick Hoogendoorn has been in the financial services business since 1991. Cheri Crause is a certified financial planner in Victoria, BC.
www.chericrause.com
rick.hoogendoorn@shaw.ca
Article Source: http://EzineArticles.com/?expert=Rick_Hoogendoorn
Nowadays, if you retire, chances are you can live forever. Well, it can seem like forever…especially if you haven’t saved up enough money. It is a daunting task, attempting to set aside enough money to supply an income for 25 or 30 years, in the 15, 10 or 5 years you have before you retire. We say this because most people don’t get really serious about their retirement planning until they hit 50…and realize they had wanted to quit work at 55!
This is the standard model that has been followed since we began living long enough to bother with retirement savings. You set aside enough cash to cover things off at some future distant time. You build the nest egg and then hope it lasts, and the financial planning community is right there to help you. And yet this is not how the most successful people in our community do things at all!
Still, most people are busily trading their time for their money. As an employee, you are limited by how much time you can actually devote to your job, and you are limited by how much time you want to devote to your job. Time you give to your workplace is time you don’t get for yourself. It’s similar for self-employed people such as our selves. The more successful we are as financial advisors, the more ‘in demand’ we become, and the less time we have.
Retirement looks pretty good when you’re an employee, or a self-employed person. You’ll have the money coming in, and the time for yourself. The problem is that it is an awful long way off. Is there another way?
The first time Rick read ‘Rich Dad, Poor Dad’, he just got irritated. After all, this was the book that pointed out how he was locked in the self-employed cycle where success leads to less free time. And he likes his free time. However, author Robert Kiyosaki also proposed ‘an out’. It’s called passive income. Passive income is income you have coming in to the household that you don’t really work for anymore. The key is that it is designed to happen in the near future instead of the distant future.
Since reading his books we have begun to change our financial plan. Instead of continuing to organize our finances around future income for a distant ‘retirement’, we are re-orienting things toward near-future passive income and ‘financial freedom’. We have been doing this by purchasing income-producing real estate and by looking to start internet businesses.
The success of our new ‘passive income’ plan remains to be seen, but it is interesting to note how changing our end result from retirement to financial freedom has completely altered the path we’re taking. These two goals are NOT the same. When you build a retirement nest egg you are looking to draw an income from it at some future time. When you are looking to attain financial freedom, you are looking to purchase or create assets which provide you with ‘passive’ income right away.
Should everybody be changing their financial plan? Of course not. For one thing, many people hate the idea of being landlords, and many others don’t have the stomach for business, let alone the technology business. Retirement planning is still needed. RRSP’s, mutual funds, and other longer term savings programs still have their place. There will always be employees and self-employed people who rather like what they do and are quite okay working until their retirement age.
All the same, if you are wondering if there might be a better way to ensure your future financial wellbeing ‘sooner’, perhaps you should pick up a copy of ‘Rich Dad, Poor Dad’… and get irritated. Either way, it will probably turn out better for you than it did in the past.
In the past most people never retired. They died.
About The Author
Rick Hoogendoorn has been in the financial services business since 1991. Cheri Crause is a certified financial planner in Victoria, BC.
www.chericrause.com
rick.hoogendoorn@shaw.ca
Article Source: http://EzineArticles.com/?expert=Rick_Hoogendoorn
Retirement is Never Urgent Until
If you’re like many people, your retirement savings have not been growing consistently over the years. We’re not referring to the wild fluctuations in the stock market, but rather the fluctuations in our short-term needs. Every once in a while, it just seems like a good idea to yank ALL those retirement savings out and pay for something.
You might need to pay for a down payment. You might need to pay off some credit card debt that’s nagging at you. You might want to ‘bugger off to Europe’ as Rick did some years ago. You know it’s not a good idea financially, but you do it anyway. Retirement savings are not designed to bail us out when we need this kind of short-term cash infusion but if it’s there…
As financial advisors, we have our ideals. Ideally, you should put retirement funds away and ‘leave it there’. Ideally you should never touch it at all, even when you retire! Why? Because it is the ‘earnings’ from the nest egg that you should be using, never the principal. As we heard one person suggest recently, your principal is like your ‘goose’, and you never kill the goose, because then you’re eliminating all those future ‘golden eggs’ (interest/earnings) it will lay.
As financial advisors, one way we try to prevent people from yanking out their retirement savings is by ensuring there are other ‘short-term’ funds available for emergencies. These are meant to act as a buffer zone against the yankers. It helps, but it doesn’t always work.
One problem is that a distant retirement will never be more urgent than the current cash demands you have. It’s impossible. How can long-term demands be more urgent than a current crisis? So what stops you from yanking out those retirement funds? Their convictions? Simple arithmetic? A more viable alternative?
When a client is bent on yanking out their retirement savings to pay off, for example, some credit card debt, telling them how much they’re going to lose in retirement income in 25 years time doesn’t seem to work. Even telling them how much the tax bill is going to be next year can pale in comparison to the relief the person is seeking from the anxiety over their current debt crisis.
So, the question is how can we provide ‘relief’ and still keep the retirement funds intact? Look at a debt consolidation loan? Review the person’s cash flow and create a debt repayment program? Maybe this will work for a minority of people. In the real world, when people are looking for relief, however, they are looking for relief NOW!!! The easiest way is to yank to retirement funds and be done with it.
So, in the moment, when you are in a cash crunch and seemingly have no other place to go, you will yank your retirement savings. Unless you have anticipated the problem and ‘pre-decided’ that under no circumstances will you access your retirement savings. In this way, you will do a pre-emptive strike on bad financial moves. Further, you will be cognizant of putting yourself into situations where you might risk those long term savings.
The alternative is to invest long-term, make progress, encounter a short-term cash crunch, yank out your retirement funds, survive the problem, invest long-term again, make progress, encounter yet another short-term cash crunch, yank out your retirement funds to get relief…
If you’re locked into an investment cycle like this, your retirement savings have not been growing consistently over the years, and it’s not just the market.
About The Author
Rick Hoogendoorn has been in the financial services business since 1991. Cheri Crause is a certified financial planner in Victoria, BC.
www.chericrause.com
rick.hoogendoorn@shaw.ca
Article Source: http://EzineArticles.com/?expert=Rick_Hoogendoorn
You might need to pay for a down payment. You might need to pay off some credit card debt that’s nagging at you. You might want to ‘bugger off to Europe’ as Rick did some years ago. You know it’s not a good idea financially, but you do it anyway. Retirement savings are not designed to bail us out when we need this kind of short-term cash infusion but if it’s there…
As financial advisors, we have our ideals. Ideally, you should put retirement funds away and ‘leave it there’. Ideally you should never touch it at all, even when you retire! Why? Because it is the ‘earnings’ from the nest egg that you should be using, never the principal. As we heard one person suggest recently, your principal is like your ‘goose’, and you never kill the goose, because then you’re eliminating all those future ‘golden eggs’ (interest/earnings) it will lay.
As financial advisors, one way we try to prevent people from yanking out their retirement savings is by ensuring there are other ‘short-term’ funds available for emergencies. These are meant to act as a buffer zone against the yankers. It helps, but it doesn’t always work.
One problem is that a distant retirement will never be more urgent than the current cash demands you have. It’s impossible. How can long-term demands be more urgent than a current crisis? So what stops you from yanking out those retirement funds? Their convictions? Simple arithmetic? A more viable alternative?
When a client is bent on yanking out their retirement savings to pay off, for example, some credit card debt, telling them how much they’re going to lose in retirement income in 25 years time doesn’t seem to work. Even telling them how much the tax bill is going to be next year can pale in comparison to the relief the person is seeking from the anxiety over their current debt crisis.
So, the question is how can we provide ‘relief’ and still keep the retirement funds intact? Look at a debt consolidation loan? Review the person’s cash flow and create a debt repayment program? Maybe this will work for a minority of people. In the real world, when people are looking for relief, however, they are looking for relief NOW!!! The easiest way is to yank to retirement funds and be done with it.
So, in the moment, when you are in a cash crunch and seemingly have no other place to go, you will yank your retirement savings. Unless you have anticipated the problem and ‘pre-decided’ that under no circumstances will you access your retirement savings. In this way, you will do a pre-emptive strike on bad financial moves. Further, you will be cognizant of putting yourself into situations where you might risk those long term savings.
The alternative is to invest long-term, make progress, encounter a short-term cash crunch, yank out your retirement funds, survive the problem, invest long-term again, make progress, encounter yet another short-term cash crunch, yank out your retirement funds to get relief…
If you’re locked into an investment cycle like this, your retirement savings have not been growing consistently over the years, and it’s not just the market.
About The Author
Rick Hoogendoorn has been in the financial services business since 1991. Cheri Crause is a certified financial planner in Victoria, BC.
www.chericrause.com
rick.hoogendoorn@shaw.ca
Article Source: http://EzineArticles.com/?expert=Rick_Hoogendoorn
What Age Should I Start Saving For Retirement?
Ask this question to 100 people and you will receive 100 very different answers. The fact of the matter is there is no right age to start. But don’t fret (did I just say fret?) knowledge is power!
To borrow a line from Star Wars, “Use the force Luke.” The force I’m speaking of is compound interest. Since our main objective is to find an ideal age to begin saving, you have to understand the difference between simple and compound interest. Simple interest can be figured by taking an initial investment that earns interest annually for a period of (let’s say) two years. After the first year you have your original investment plus the interest. In the second year you have the initial investment plus the interest for the second year, the interest from the first year is not added. What you’re lacking is that you don’t earn interest on the interest you already earned. It’s not compounded. Can you see where I’m going with this? With compound interest you take that initial investment and earn interest in the first year, then in the second year you add the initial investment plus the interest from the first year and earn interest on the whole amount.
Now that you know the difference, let’s see how two people use the force!
Person A starts saving at the age of 25. They start out with a zero balance and contribute $200 monthly until retirement (65). Assuming an average annual rate of return of 12%, Person A can retire with $2,061,941.74. Wow! Millionaire status achieved, two-fold.
Person B starts saving at the age of 40. Because person B is further in life, we’ll assume this person started with an initial investment of $10,000 and contributes twice as much, $400 per month, with the same 12% average annual rate of return. Person B will retire at the same age (65) with $886,803.53. Hey, that’s not fair! No, that’s compound interest at it’s finest. J
So, what are you waiting for? Put your pizza and cheeseburger money to better use and start saving! Your love handles will thank you for it!
About The Author
Brian Weiss is owner operator of www.InvestmentRunner.com a specialty search engine with free investors software, spread sheets, investors dictionary, and financial weblog.
admin@investmentrunner.com
Article Source: http://EzineArticles.com/?expert=Brian_Weiss
To borrow a line from Star Wars, “Use the force Luke.” The force I’m speaking of is compound interest. Since our main objective is to find an ideal age to begin saving, you have to understand the difference between simple and compound interest. Simple interest can be figured by taking an initial investment that earns interest annually for a period of (let’s say) two years. After the first year you have your original investment plus the interest. In the second year you have the initial investment plus the interest for the second year, the interest from the first year is not added. What you’re lacking is that you don’t earn interest on the interest you already earned. It’s not compounded. Can you see where I’m going with this? With compound interest you take that initial investment and earn interest in the first year, then in the second year you add the initial investment plus the interest from the first year and earn interest on the whole amount.
Now that you know the difference, let’s see how two people use the force!
Person A starts saving at the age of 25. They start out with a zero balance and contribute $200 monthly until retirement (65). Assuming an average annual rate of return of 12%, Person A can retire with $2,061,941.74. Wow! Millionaire status achieved, two-fold.
Person B starts saving at the age of 40. Because person B is further in life, we’ll assume this person started with an initial investment of $10,000 and contributes twice as much, $400 per month, with the same 12% average annual rate of return. Person B will retire at the same age (65) with $886,803.53. Hey, that’s not fair! No, that’s compound interest at it’s finest. J
So, what are you waiting for? Put your pizza and cheeseburger money to better use and start saving! Your love handles will thank you for it!
About The Author
Brian Weiss is owner operator of www.InvestmentRunner.com a specialty search engine with free investors software, spread sheets, investors dictionary, and financial weblog.
admin@investmentrunner.com
Article Source: http://EzineArticles.com/?expert=Brian_Weiss
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