Retirement Is Coming Sooner Than You Think |
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| By Barry Waxller. |
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| keywords: retire retirement plan planning ira roth 401k pension insurance finance financial | ||||
| The first baby boomer has claimed social security benefits,
which should be an eye opener for all of us. Specifically,
the issue is retirement planning. Few of us do enough of it
as the following facts and tidbits reveal. It's easy to procrastinate so set up a "painless" payroll deduction for saving. Open an IRA. IRAs are easy to get, easy to contribute to and easy to save with. Most Americans can set up an IRA - whether it's a traditional IRA or a Roth IRA - and save on taxes. Remember to review your Social Security Statement each year for accuracy. This is your fallback retirement position, so make sure it is correct. Today, only 42 percent of Americans have calculated how much they need to save for retirement. Have you? The average American spends 18 years in retirement. Yes, your money has to hold out that long. On average, a female retiring at age 65 can expect to live another 20 years, 3 years longer than a man retiring at the same age. Savings can increase a woman's chances of having enough money to last during her retirement. Take inflation into account. A mere 3 percent gain each year can mean you will need nearly twice your salary at 40 to live comfortably at 80. Financial Planners say that a person needs about 70% of their pre-retirement income to live a comfortable retirement. To receive social security benefits, you have to work for 10 years and have accumulated 40 social security credits. Check your social security statement each year to see where you stand. Select a target date for your retirement. Now assume you will need 70 percent of your current salary to live comfortably on that date. How much money will you need for 18 years of retirement and where will it come from? Planning on living on your social security check? The average worker check in 2009 is estimated to be just over 1,000 a month. Is that enough? Retire to a warm, dry location. Areas such as Las Vegas tend to have fewer pollens and pollutants in the air, which is good for your health. Good health equals lower medical bills. If you have a lump sum of cash to contribute to an IRA, go with a Roth IRA. Why? You will get the distributions tax-free. Don't access the equity in your house unless the money is used to improve the value of your home. Don't buy flat screen televisions and such. You have until April 15, 2008, to make your IRA contribution for the previous tax year. For most people, retirement is their biggest financial worry. The key to limiting this concern is to save every penny you can today. Time will make all the difference in your returns, so make sure you save, save, save! |
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| keywords: retire retirement plan planning ira roth 401k pension insurance finance financial | ||||
| Article Source: http://interpret.zar.vg | ||||
| About The Author Barry Waxler is a financial advisor with UFCAmerica.com. |
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| © 2012 interpret.zar.vg |
