You just spent 30 years making reports, fielding phone calls, filing papers, and pacifying your boss at the office. At the end of each day, you find your energy gradually waning as you reach that point wherein you wanted to declare the last part of your work retirement.
Retirement is when an individual feels like withdrawing from their occupation to find some time for their selves and contemplate on how much he or she has earned or saved.
Everybody needs a time to stop working, reflect back upon the past, and enjoy whatever life has to offer with the individuals retirement plan or pension staying close behind.
However, the problem of retirement using the typical pensions plans like that of the Social Security; people should start relying on their own savings than the usual way of planning for retirement. This is because the Social Security is gradually losing more assets than it should be gaining in order to adequately supply the much-needed funds of their members.
In fact, the agency asserts that they are paying more than what they collect and they fear that by the year 2010, 76 million people are estimated to reach their retirement age. They estimated that by that time, with all the assets being utilized at exceptional rate, they might only be paying 72% of the expected retirement compensation of the members.
This goes to show that people should try to rely more on their personal savings and other sources of their retirement plans. This will bring about a more balanced view of all the aspects as far as retirement is concerned.
So what are the alternatives to Social Security? Here is a list of the other retirement schemes that you can start planning by now so that by the time you reach your retirement age, you will not solely rely upon your social security retirement benefits.
These are highly adaptable insurance contracts intended to provide earnings and help you reach financial stability even after you have reached your retirement age.
Saving money is just the beginning. You have to choose ventures that will provide you with greater money over the long period.
Try to look for the lifestyle mutual fund, which puts a portion of your money in diversified stocks and the other portion in bonds, and maintains a solid balance between the two.
Another good choice is the target retirement fund. Its portfolio becomes more conservative as you approach retirement age.
3. 401 (k)
Your employers 401 (k) or 403 (b0 can be great sources of retirement benefits. Here, the company will deduct a portion of your income and invest the amount on mutual funds, usually on your chosen instrument.
4. Emergency account
Try to move your money automatically each month from your checking account into an account earmarked for unexpected expenses. Aim for a sum that will cover three months worth of basics (mortgage, food, utilities, car payments, etc.)
Once you have built this nest egg, you would not have to withdraw from long-term savings if a crisis hits.
There is no secret to building wealth after retirement. You only need to live less than you make and invest the surplus well. When you save money and invest automatically, your retirement would definitely be the best phase in your life where you enjoy relaxation with no financial obligations to worry about.
Book Review: Winning Or Losing The Financial And Retirement Race
Everyone alive today is running in the retirement race of their lives, according to Robert Lamoreaux, author of Winning or Losing the Financial & Retirement Race. As with any race, there are rules to be followed, and times are kept to determine the winners and the also rans. Robert Lmoreaux applies the analogy of running a competitive race to achieving a successful financial status for retirement. The book describes in detail how the reader can finish inside the winners circle upon retirement.
Estate planner Robert Lamoreaux brings thirty-five years of hands on estate planning experience to writing this step by step book of retirement race winning strategies. As with any race, the runner must set some goals, and plan tactics and strategies for reaching them successfully. Since everyone alive today, and is running in the race of a lifetime, we all need to prepare for crossing the finish line with our arms raised in triumph. The book sets out the rules and techniques for finishing the race ahead of the pack.
Robert Lamoreaux (photo left) points out in blunt fashion that everyone is included in the race to retirement simply by virtue of being alive. There is no choice in the matter. At the same time, everyone in the race is at different stages, as the race start has staggered entry times. The book considers the various stages of people’s lives, and the different strategies to be employed to lap the field.
From the very young person, to mid and late career people, to those in retirement now and nearing the end of life, easy to follow instructions are described in detail. From goal setting to practical ideas for living life on a more solid financial foundation, the book provides the framework for victory.
As with any race, the runner must work within the rules, and follow the timing procedures set out by society for the determination of your successful progress. While deliberately avoiding the technical and legal intricacies, the author provides the background and advice for discussions with professional people, in the various fields from accounting to financial planning to law. The book provides the base for further investigation and study of the more specific technical details. By emphasising the important concepts that everyone on the road to retirement must know, the author creates a toolbox that can be applied to anyone at any stage of life, or current financial status.
For me, the power of Winning or Losing the Financial & Retirement Race is its practical step by step approach to achieving financial independence upon retirement. Without sacrificing the good life, a healthy and prosperous retirement is a goal that can be reached without serious painful sacrifices. Solid advice for making good investment decisions, operating a sucessful business, and making wise purchases of the necessities of life are covered in detail.
The author also recognizes that the road won’t be smooth, and the race will often have many hurdles to clear and obstacles to avoid. The book features chapters on health and medical expenses, marriage and family expenditures, as well as planning for funeral expenses and estate planning. By not avoiding potentially painful events of life, the book becomes a much more powerful planning tool for the average person.
I recommend Winning or Losing the Financial & Retirement Race by Robert Lamoreaux as a powerful and honest retirement and estate planning guide. Whether you are twenty or eighty, or any age in between, there is advice suited to you and your personal race to retirement.
Read Winning or Losing the Financial & Retirement Race and be a winner in the retirement race for you and your family. Since you are already entered into the race, you may as well be in it to win it.
Gordon Brown, speaking recently in Scotland, said that there should be a national debate on raising the state pension age, and David Blunkett, Work and Pensions secretary, told the BBC News that a rise in the state pension age should be considered.
The Pension Commission has already suggested that a mixture of higher taxes, larger savings and a higher retirement age could go some way to making sure that people will not be living in poverty in their old age.
Apparently the problem is that people are living longer, and the pensions commission declares that more than 12 million people are not saving enough towards retirement. Since the government, and life insurance firms, didn’t anticipate pensioners living so long, now they are saying that, in order to be able to afford to pay out on their pensions, they will have to work to at least the age of 70.
At first sight this all looks rather bleak, but its not all bad news, because people who work longer, particularly in a job they enjoy, actually live longer. Many people think that if they retire early they will live longer, but researchers have disproved this theory. In fact, those who stop working at 55 have nearly double the death rate of those who continue to work until they reach at least 65!
Baroness Greengross, chief executive of the International Longevity Centre UK, has said Work is a huge part of this equation, and provides mental and physical activity, self-esteem, social interaction and income for many of us is vital for older people to stay mentally and physically active.
So maybe we are all going to have to work for longer, and yet no one wants to be stuck in a job they hate for even more years than they had already anticipated.
Luckily there are some happy alternatives. There’s been quite an increase recently in people wanting to set up an e-commerce business with a view to building it up now, so that it will bring an income during their retirement years.
Usually customers have been planning on setting up an online shop to sell products or services connected with their interests or hobbies. They’re doing this with the intention of using the internet to make money for themselves, and their families, in an enjoyable way, and setting up something they will be able to continue with well into their old age.
These days it is not nearly as expensive or difficult to set up an e-commerce website as it used to be. Getting a site that would let you sell your products or service online can be done quite quickly, and with the minimum of fuss, if you approach a company who has experience in setting up ecommerce websites. You do really need to seek professional help and advice with this though, as its not something a novice can do successfully by themselves.
Making your later years golden could be as simple as expanding your hobby and getting set up to sell related products or services online. With an uncertain future ahead, the security of a little extra income is sure to be very welcome indeed.