Milos asked:


Many people retire after they find themselves financially stable enough to support all their needs. There are also some who consider first how much they have already saved for them to say that they are already ready for retirement. Well, money matters really play a vital role in retirement and to become financially secure after retirement takes time, effort and of course, proper planning.

The concept on financial retirement planning is not something that is fresh or new to the people’s ears. It has been around for more than a decade now, and many successful retirees have considered financial retirement planning at some point in their lives. Now, if you are thinking about retiring from work, but you want to make sure that you will be financially stable when the right time to retire comes, knowing everything that is involved in the planning is definitely one of the best moves you can make.

So to start with your financial retirement planning, simply note that you are dealing not just with money here, but for a better future. Note that and if possible, save as much as you can as early as possible. As what many retirement experts have said, the sooner you start saving, the more time your money has to grow.

Set certain goals that are realistic and make those goals an important part of your financial retirement planning. You can project your possible expenses based on your needs. Consider how much your life after retirement will cost and try calculating everything that is involved. Settle only when you find out that everything is tackled and solved.

You can also consider a 401K plan as a special part of your financial retirement planning. The 401K is after all one of the best and easiest ways for saving after retirement. But before you consider the plan, make sure that you have understood everything that is involved in it, how it works and how you will benefit from it. There are also the IRA retirement plans for you to take. But as mentioned, know first what the plans entail and how they work to support everything you’ll need after retirement.

As you go along the financial retirement planning process, try to look at your asset allocation. It has been maintained that how you divide your portfolio between stocks and bonds will have a big impact on your long term returns. And, speaking of long term returns, several retirement experts have noted how important the decision of paying attention to the stocks and bonds is. According to them, stocks offers the best opportunity for you to achieve high returns over long periods of time, while bonds should not be considered heavily even in retirement for that will increase the inflation level, thus destroying the purchasing powers of the interest payments of your bonds.

Finally, when considering a financial retirement planning, it is best to consider yourself working part-time even after retirement. What you will earn on your part-time job will help increase what you’ve saved for your retirement. It will even keep you socially engaged.



Jamie

Peter Clark asked:


Retiring soon? You need a self managed IRA. Self managed IRAs, or what can be sometimes be called self directed IRAS, are by far the best management vehicle for soon to be retirees, or for that matter anyone who plans to retire in the future, and that’s all of us.

Retiring in the future is going to be a problem for those who want to retire comfortably. As the population ages and the tax base shrinks relative to those needing retirement pensions, pressure on government funds for retirees is going to grow. Those smart enough to recognize the problem need to act now, and a self directed IRA, preferably invested in real estate, is the best way to do it.

How serious is the problem for future retirees? A recent Social Security Administrations trustee report has found that by 2040 social security will not be able to meet full retirement benefits. Scary isn’t it?

An IRA, or an Individual Retirement Account, is a vehicle to direct money into a fund that is set up to provide for your retirement. And anyone serious about their retirement needs to plan and invest wisely for it, right now.

Why would you do that through a self managed IRA? Why not just save up for your retirement?

The answer is all to do with tax. The government has graciously allowed us all substantial tax benefits for planning for our retirement through an Individual Retirement Account.

Why would the government give you tax benefits for planning for your retirement? To encourage people to self fund their own retirement to take pressure off limited future public funds. I won’t go into all the tax benefits that attach to IRAs, except to say that if you’re serious about a comfortable retirement you simply must have your own IRA to help you plan and invest for your retirement. For more details on the tax advantages talk to your financial advisor.

Of course many people already have their own Individual Retirement Account. Problem is that these are set up through the banks and trustees and investment companies, which of course direct your IRA retirement funds into their own products. And the investment returns on these products are not spectacular. You won’t set yourself up with a comfortable pension on 6% or 8% return on investment.

Most IRA custodians only allow investments in a narrow range of investment vehicles like stocks, mutual funds, bonds and CDs.

However those in the know recognize that a self managed IRA is a far better vehicle to maximize returns on your retirement funds. If you rollover your current IRA into a self directed IRA you have full control over how, and where, your future retirement funds are invested, and far more potential to maximize your investment returns. And so to maximise your comfort level in retirement.

A self directed IRA custodian will allow you a much wider range of investments, and these include real estate.

Why would you want to invest your IRA into real estate, particularly in 2008 when the real estate market is in meltdown?

Firstly because real estate is always the best long term wealth creation tool, especially when it’s tax advantaged. It’s solid and less volatile than any other investment, and so allows you to borrow safely. Mortgages over real estate are much easier to obtain than, say, a loan to buy shares. Even in 2008.

And what about the current state of the property market? Why would anyone with a self managed IRA want to invest in real estate right now?

Because, like in any market, there are always fantastic opportunities available if you know where to look and how to invest. Not all real estate is a disaster, and there are some very good advizors with spectacular real estate investment opportunities available, even now.

One in particular offering no money down real estate investing opportunities to ordinary IRA and 401(k) investors (and ordinary credit investors) right now. Guaranteed returns and immediate equity, and backed by a solid investment strategy backed by a US public company with an impeccable record in real estate investing.

So if you’ve been thinking about your retirement, either in the short term or the long term, and either have your own IRA or need to set one up, do it. Set up your own self managed IRA or rollover into one, and get started planning and investing for your retirement, no money down, guaranteed.

You’ll be comfortable in your retirement if you do.



Betty

Miodrag Trajkovic asked:


Planning your retirement can be confusing. Unless you are actually retired, you really can’t appreciate what it is like. A lot of myths have sprung u pabout retirement and retirement planning and we will take a look at some of them in this article.

A common myth is that retirement will last for 10 – 20 years. In truth, people are living much longer than previous generations. Not only that but the retired population is more healthy and active. Plus if you retire early which is an increasingly popular trend, then your retirement will be longer than normal. To be on the safe side, it is best to plan for a retirement that will last for 30 years.

Another myth, and one that could hurt your pocketbook, is that living expenses are lower after you retire. In most cases, this is not true. You may still be paying off a mortgage, taking care of your children, grandchildren, or parents. There may be others in your family who will be depending on your income for long after you retire. So it is a good idea to figure your expenses to remain the same and not count on them going down when your retire.

Social security is another topic of confusion and myths abound. Many people belive that social security will be defunct by the time they retire and others believe they will be able to live off of social security alone. Only time will tell if social security will survive through the years, but one thing is almost certain. If you do receive social security benefits, they will amount to much less than your current income.

More myths exist on the subject of taxes. Yu will still have to pay taxes after you retire, even if you live off retirement and social security as long as your income exceeds the limit. If you planned your financial future well, it is possible you will encounter increased taxes after you retire. If your taxes are lower or zero then, then it will be because your income be quite low. So it is best to plan taxes into your retirement planning and know that you will have to pay them long into your retirement.

Any of the myths above can harm you if you believe in them and don’t do your research and learn the truth about planning for retirement. The best thing to do is consult with a financial planner who can guide you through all the technicalities of taxes and savings so you know your retirment plan is on the right track.



Martha

Elijah James asked:


Most people don’t think about how much money they need to save for retirement until they really need it. After all, with the pressures of daily life taking up most of our awareness, who has time to think about it?

The truth is most people drastically underestimate just how much they’ll need to keep themselves going once they do retire from the workforce. What many people seem to forget when they try to work out the amount of money they might require is that the value of money changes over time.

This means that what looks like a really large sum of money to you now sitting in your retirement fund probably won’t buy the same amount of things once you do retire. If you’re close to retirement age already, then this argument won’t hold true for you. However for anyone that still has more than a decade left in the work force, you should consider the change in the value of the dollar as time goes by.

How Much Do I Need To Save For Retirement

Some financial advice firms estimate that you should consider perhaps 50% of your current income per year as a healthy start to give you an annual income figure after retirement. If you think about how much you earn right now, could you imagine living on half this amount for the entire duration of your retirement years?

Of course, you should figure that you won’t have the same types of expenses to pay for once you leave the work force, so your expenses in this area may be reduced. Unfortunately, you may also find that some of your medical bills may be increased as time goes on. This shift in the cost of living after retirement is often where people go wrong in their calculations.

The other issue you should consider is how long you expect to live once you have retired. Most people stop working at 65 but the average life expectancy is well over 80. That’s 15 years you’ll need to survive on only what you have in your retirement savings.

How Do I Increase The Amount of Retirement Savings I Have?

No matter how old you are or how close to retirement you are, there is always plenty of opportunity to increase the amount of savings you have. If you’re still working and earning income, then you can voluntarily increase the amount you contribute to your plan each pay period.

Compounding interest can have a dramatic effect in increasing your savings, so any amount you can put in will increase over time well past the amount you spent simply because interest accumulates on top of interest already paid.

If your retirement is still a long way off, then consider some very carefully chosen investment options to help increase the amount you have available for later years. As you get closer to retirement age the extent of your investment activity should be more conservative to maximize and retain the amount you already have.

So if you’re trying to calculate how much money you need to save for retirement, perhaps consider using an online retirement calculator to give you an estimate of how much you need so you can begin making plans now.



Susan