How to Plan for Retirement

Majority of people assume that retirement planning is only meant for people who reach old age or are close to retirement. However, this is a false notion. This planning can also be done in your youth. In fact, it is advisable to begin planning for retirement at the earliest, so that you save sufficient money for your golden years.

Of course, it goes without saying that proper care should be taken when planning your retirement. It is not something that can be done in a jiffy. You have take everything into account, like long term financial plans, expenses in the future, healthcare, accommodation, taxes and so on. Basically retirement planning involves taking into consideration everything you will need when you grow old and are no longer working.

So, to help you out, here are some steps that will show you how to plan for retirement.

The first thing that you have to do is gauge your present financial situation. This means weighing your monthly expenses, income and savings. In addition, try and figure out how much money you will need to lead a good standard of life after retiring. This will allow you see how much you need to save in order to have that standard of living.

Then jot down all things you would like to have, experience and own during your retirement. This would include things like vacations, finances, assets, home, hobbies etc. This will help you plan out your retirement so that you can own as well as experience these things without feeling the financial crunch. Do not forget to take into account health care as well as emergency situations.

Health is important in retirement. While you may have all the money to take care of your health needs, you still need to take steps to ensure you have a healthy retirement. This means making lifestyle changes and quitting smoking and drinking while concentrating on eating healthy and exercising regularly.

In case you are an employee of an organization, find out from the HR department all the retirement policies and plans that the organization has. Find out which are the best plans and policies and invest in them. You can also invest in mutual funds and term insurance

At the same time, get rid of all your financial liabilities. These could include student loans, car loans, and mortgages. Your plan should be to save as much money as possible for your retirement. Also, try to find different sources of fixed income so that your retirement income is supplement. You can do this by renting out your second home or even investing in a commercial property.

With these tips, you should be able to plan your retirement without any hiccups.

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Source of Income When You Retire

A retirement pension planning always assures you a good and luxurious life, even though you are not earning. With retirement and employee pension plans you do not retire, rather you get a leisure period to enjoy the life to the last moment! You must go through this stuff to understand why people are more interested in early planning for retirement.

First of all you get independence. You don't have to be dependent on others. In-fact in our society, we often see that a retired person is assumed a luggage by other family members and retired persons are often denied their basic requirement for living a luxurious life.Second point may be summed up as "the sky-rocketing prices often tend to dump even the well salaried person".

Due to inflation and frequent changes in economic policies every working and retired person experience trouble in living a smooth life.

Current Market analysis and survey report reveals that only 30% of earning community have invested for a retirement plan. For the remaining 70% people life may become really tough without retirement investment planning.

So you might have got a horrible portrait of people who have not invested for secure future.While insuring a retirement plan you must look for various factors too. These factors may be summed as the total return on saving, Whether disability pension plan is offered or not and whether there are defined investment plans or not.

Happy Retirement investment!

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How Much Money Do I Really Need to Retire?

No matter how old you are, retirement planning probably seems like something that you know you should be doing but just can't wrap your head around at this point. However, the question of how much money you will need to retire is certainly one that has occurred to you, even if you have never tried to figure out the answer.

Here is a quick way to estimate what you will need to save in order to retire comfortably: 

Calculate your current living expenses. You will need approximately 65 to 70% of that amount each year during retirement. This could change depending on the lifestyle you hope to have - will you travel extensively? Do you have health problems that may worsen, resulting in rising medical costs? Consider these in your estimation. 

Do you intend to continue working? Even a part-time job as a senior can help you defer some of the costs of retirement. 

Look at your financial picture to determine how much money will come from guaranteed sources such as social security or pensions. As many people have experienced in the current economic situation, "guaranteed" is a relative term. However, this is useful for planning purposes. 

Account for inflation. 

Estimate how long you will be retired. This may require consulting with your physician or a life expectancy calculator. Although it isn't a very fun thing to think about, a realistic estimate will ensure that you have funds to take care of yourself as you age. 

Make a plan. Based on your age and these calculations, you can establish savings targets for each month or year. Keep track of your progress and adjust the plan as necessary. 

Rule of Fifteen. Sound like too much to handle? Not to worry. If you are a young investor, the general rule of thumb is that you should be aiming to save 15% of your income each year. That amount does not have to come exclusively from your post-tax dollars, but can be a combination of your contributions to a 401(k) along with those of your employers and other savings accounts.

If you follow these suggestions consistently, and get good advice from a financial consultant, this gives you the best chance to ensure that you are not overlooking any major factors in your plan and that you are on the right track to enjoyable retirement years.

A Woman's Retirement Reality-What She Really Must Know

Note: This article is directed towards working class women, and explains what they can do to empower themselves to ensure a retirement lifestyle they can enjoy. 

Sure, a life of leisure filled with family and friends, shopping and travel, is preferable to being left financially stranded in retirement, but it requires proper planning. You will see that even when accustomed to a high level of income, and/or a high standard of living, many women are eventually left to fend for themselves.

Consider this piece to be a financial re-orientation for women relative to their ability to retire. This article will discuss what she knows to be true, as well as what she can do to empower herself to ensure a retirement lifestyle she can enjoy…

I believe this should be viewed as required reading for all women, and those who love them. Regardless of your marital status, you, your spouse, your partner, or your significant other, should embrace a strategy today to ensure a safe plan for retirement.

Unfortunately, what you are about to read happens far too often and, as a woman, you owe it to yourself to invest a few minutes of your time, and learn what you can do to ensure that this all-too-typical story doesn’t happen to you. I am willing to bet that this story can change everything for you. You deserve a much happier retirement than that portrayed in this story, and you have the ability to make better decisions, jointly or alone — and place yourself on a course towards a safe plan for retirement.

Women really do face greater retirement challenges than they may know, and are in danger of living out their retirement years unprepared — these are facts. Without proper planning, women may find themselves as members of the working poor, or even worse. In order to prevent such dire circumstances, men and women must change their planning strategies before it is too late. My hope is that you may be enlightened by taking to heart the real-life economic outcomes discussed in the story “Lifetime Income for Women: Her First Job at 55”.

As you are already well aware, women and men are different in terms of money. They make different decisions for different reasons, and women usually outlive their husbands and often end up facing the world alone, without ample retirement savings or income. On a regular basis, women are forced to endure the effects of bad financial decisions made years ago, and many times, those decisions were made by a spouse.

Everyone has different expectations of retirement, meaning there will be various levels of “hoped for” comfort. These expectations are not necessarily based upon a couple’s level of education, or whether or not they had a career with higher or above average income. Keep in mind that folks who make more money may tend to spend more, and may take on more financial risk. Thus, they find themselves or leave their spouse, in even worse shape. They end up with greater debt and greater monthly maintenance costs than those who earned less and lived more moderately. Often, it is presumed that others are in better shape, but; a) it doesn’t matter, b) they probably are not, and c) you must take care of yourself anyway, especially since men often die before women do.

What should you do?

After reading this brief story –and getting a dose of retirement realities pertaining specifically to women — take action and get organized in an effort to get a snapshot of your current financial position. After that, you can assess your needs and wants, and your ability to live with the ups and downs of the fluctuating economy with an insurance advisor you trust.

Take the time to find out what you need to do to reposition assets, ensuring that your retirement income needs are met. Make an appointment, review your situation together, and view an income plan analysis to see where things stand for you.

You will learn that there is something that can be done to secure your future. Women and men alike have only one shot at astute preparation and execution of a safe plan for retirement…