Tue. Mar 7th, 2023

Serious Considerations for Financial Retirement

Serious Considerations for Financial Retirement there are a few things you should keep in mind when planning for your retirement. First, you should not hold your breath when it comes to social security, being able to cover even a small portion of your retirement if the service even exists in any form of its former self by the time you are facing retirement. The second thing you need to keep in mind is that your needs upon retirement depend on how you live your life now and how you plan to live once you retire. (“March 21, 2022 – Page 3 – LaterLifeNow”)

There are many who live very conservatively now to save up their money for retirement and really celebrate that point. “The problem is that they are basing their retirement living on their current lifestyle, which is not a good comparison.” (“Serious Considerations for Financial Retirement – DAILY DIGITAL HUB”)

The problem is that most Americans are earning just enough money through their jobs to make ends meet. The idea of finding any money to sock away for retirement for most Americans is difficult at best and impossible in some situations. (“Serious Considerations for Financial Retirement – DAILY DIGITAL HUB”)

The first step when it comes to successful financial retirement planning is to map out how much money you are going to need to maintain your current lifestyle upon retirement and go from there. Most estimates are that you will need to bring home on average 75% of your current take home salary to maintain your current lifestyle. The understanding is that you will eliminate many monthly expenses by no longer working, however some find that this simply is not enough so you should be careful when relying on this figure. (“March 21, 2022 – Page 3 – LaterLifeNow”)

You should also plan for inflation when planning your retirement as well. It will take more money in the future to have the same standard of living. You should also consider that our expectations tend to increase over time, and you need to be able to live within the limits of your budget when the time comes. (“Serious Considerations for Financial Retirement – DAILY DIGITAL HUB”)

It will be difficult to take out additional funds once you have reached retirement age. For this reason, it is in your best interest to plan and plan carefully. The more modestly you live today to invest more money for your retirement the better chances you will have to enjoy a better lifestyle upon retirement. (“Serious Considerations for Financial Retirement | Reverse Mortgage United”)

You should also be careful that you do not sacrifice the moment in search of a better retirement. You need to be able to take vacations, save money for the things you want and need, in addition to covering the necessities of today. We are not guaranteed that we will be here for retirement though that is hardly a reason not to invest and save for that day. (“Overripe Banana”)

However, we should never sacrifice the moment and the childhood of our children for the sake of eventual retirement. If you are making considerable progress, you are doing better than a large section of the population and you can have opportunities later to invest greater amounts of money in your retirement. (“Serious Considerations for Financial Retirement – DAILY DIGITAL HUB”)

The problem is that most people do not begin growing concerned over their retirement picture until it is too late to make noteworthy progress. Begin making plans for your financial retirement early to ensure the greatest possible success. Pay off your major debts such as student loans, home loans, doctors’ bills, car notes, and credit cards whenever possible. (“March 21, 2022 – Page 3 – LaterLifeNow”)

These are constant drains on your income that you do not need once you have limited or ‘fixed’ your income. In addition to your 401 (k) or IRA funds you can start your own investment account by having the bank automatically draft a portion of your check each pay period. You can also ‘pay yourself’ an extra bonus by depositing extra funds anytime you get extra money like a bonus check at work or payment for services outside of work. (“March 21, 2022 – Page 3 – LaterLifeNow”) Take every opportunity you must boost your retirement account.

Types Of Retirement Plans

We all know that there is a growing need in this country to take our retirements into our own hands if we want the funds necessary to have any quality of life upon retirement. The problem is that most of us have no idea where to begin when it comes to financial retirement planning or investing. The sad news is that for most of our life’s retirement was taken care of if we put in an honest lifetime of work. (“planning for retirements”) However, the climate has changed and the retirement funds that many of us have labored to pay for most of our lives are slipping away. (“Retirement Planning Programs – EzineArticles”)

The good news is that this need has not gone unnoticed by the powers that be and while they aren’t offering solutions for the funds we’ve already invested or in salvaging what is left of the failing system, they are empowering people to take some control for their personal retirements by offering investment options and strategies that provide tax benefits along the way in order to reward you for your efforts. (“March 21, 2022 – Page 4 – LaterLifeNow”)

The four common types of retirement plans include 401(K) plans, Keough Plans, IRAs (individual retirement accounts), and qualifying pension or profit-sharing plans offered by corporations. In most retirement plans, the contributions to those plans are tax deductible and taxes are not paid on these plans until the funds are received and retirement payment begins. You should be careful of your investments and guard them well as there are often hefty penalties involved when you take funds out of your retirement funds before you retire. (“planning for retirements”)

These of course are not the only types of investments you can make for your golden years, and it never hurts to have more eggs in many baskets. (“Retirement Planning Programs – EzineArticles”) The more the merrier in most cases. My personal preference for investing is real estate. This is an investment that you can see and reach out and touch. “It is also an investment that often gets overlooked when planning for retirement, though when you consider it is an excellent choice.” (“Retirement Planning”)

Property values are much lower today than they will be ten, twenty, or fifty years from now. This means the sooner you buy the property the more it will be worth (in theory) when you retire. The thing to remember is that property investing, like other types of investing, requires some degree of risk. You need to learn as much as you can about the process and discuss your interests with a financial advisor before you make any major decisions concerning your retirement investments. (“Retirement Planning Programs – EzineArticles”)

There are more traditional investment methods you may want to consider as well. Mutual funds and the stock market are great ways to invest your money, build a decent portfolio, and increase your net worth. This type of investing also carries some degree of risk and is not always considered financial retirement planning but more like simple financial planning. (“March 21, 2022 – Page 4 – LaterLifeNow”)

The thing to remember is that it is always good to have a plan. For this reason, I strongly encourage you to engage the services of a good financial planner. They can help you navigate the tricky language that participates in many transactions, set realistic and obtainable retirement goals according to your needs as well as your means, and offer excellent advice and guidance on other investment ventures you may wish to pursue. In other words, a good financial planner can help you plan for your retirement. (“Retirement Planning”)

When it comes to the world of finance, many of us are far from experts. We seek legal advice from attorneys, tax advice from accountants, and medical advice from doctors, yet very few of us go to financial planners when planning our financial retirement. In many ways it makes little sense to approach our futures so carelessly and yet this is not something that our parents and grandparents would have done so there is no precedence for doing so. The problem is that money is such a limited commodity in this world, we are living longer than ever before, and we are enjoying much more mobility in our golden years than in times long past. We now need expert advice and guidance to ensure that we are in the best possible position when the time comes to face our own retirements. (“Retirement Planning Programs – EzineArticles”)

Best Wishes, Coyalita

See Tomorrow: ‘What Are Ira’s?”


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