Retirement Concepts
Retirement Concepts are something that each and everyone of us will face someday. So why not embrace them and plan appropriately? It is particularly important if you are 55 or younger. That is because of all the hullabaloo circulating right now regarding the solvency of the Social Security Administration. Some government figureheads say that there is enough money to pay benefits through 2041. On the other hand, their critics point out that benefits could be in jeopardy as early as 2016 or so. In any event, one must realize that financial security during retirement is one's own responsibility and to think otherwise would be quite obtuse. So let's talk retirement concepts. Do You Have Enough?Right about now you are wondering if you have saved enough to enjoy your retirement? Can you play catch up with your savings? How much will you need to live on and enjoy a comfortable retirement? What if you outlive your savings? Or worse, what if you get sick or become disabled? How much can you withdraw every year and be certain of not running out of funds. So many questions...so little time!There is a generally accepted rule of thumb that you will need approximately 70% of your pre-retirement income in order to keep the same standard of living during your retirement years. As part of your retirement planning, you need to add up all the sources of income that you anticipate receiving after you retire. That would include social security payments of course (assuming that they are still around), any pension you may have or 401(k) that you have contributed to. It also includes your IRA's and any securities you may have accumulated outside of a retirement account. Finally, do not forget your savings account, your piggy bank, and any possible recurring or residual income that you may have been fortunate enough to establish before the big event. The more sources you have, the better off you will be in arriving at the magic 70% figure that was mentioned earlier. Another rule of thumb you need to know relates to how much you can withdraw? Financial guru's will tell you that you can safely withdraw up to 4% of your nest egg in order to fund a 30 year retirement. Additionally, after the first year, you could increase the withdrawl rate by 1-2 points if we happen to be in a bull market. Conversely, you would lower the withdrawl by 1-2 points if we are in a bear market. You're Short! Now What?You have added it all up and low & behold you come up short! Now what? Well for one thing, I wouldn't be so quick to leave on that cruise around the world that you were planning on so dearly. It is not too late to re-think your current lifestyle and the lifestyle that you were anticipating on enjoying during retirement. Maybe you will have to delay retiring? Maybe you need to downsize your house? Maybe even move to a less expensive part of the country? Maybe, just maybe, a new career is in the cards for you. How about that home business you have always dreamed of starting. Certainly you have a lifetime of experience in something. Why not share your knowledge with others and pick up some income along the way. Take a look at this link to see if it makes sense for you.
Whatever you decide, I have put together some Retirement Concepts that should help you to reach your goals. If you find that you need to make adjustments, the concepts here before you and elsewhere throughout this site will help to dispense with much of the headache. Along the way, do not forget about the prospect of a legacy for your family and your church or some other charity. The following list is by no means complete or fully explored. It is merely intended to start you thinking about the more popular Retirement Concepts. Each one will have a small explanation. The site visitor is advised to check back often for future updates which will delve further upon each idea especially the area on Estate Planning that is so often overlooked. Click on the following links and we will see you on the inside.
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