Retirement Planning The Words That Scare Us All

By Barry Waxller.

keywords: retire retirement planning income social security benefits 401k ira personal financial planning

If the current real estate market doesn't scare you, the current status of your retirement planning probably should. Are you ready for your golden years or at least on the path to being so? These stats and tidbits of advice might change your mind.

It doesn't matter if the money goes into a 401(k) plan, an IRA or into a plain, old-fashioned savings account, just start saving.

Experts estimate that you'll need about 70 percent of your pre-retirement income - lower earners, 90 percent or more - to maintain your standard of living when you stop working. Take charge of your financial future.

In 2005, of those who had 401(k) coverage available, 25 percent didn't participate. If you are one of these, get enrolled and participate!

With rapid medical advances and new thinking about U.S. life expectancy, growing longevity in the future may be much longer than is usually assumed. How will you pay for a longer life?

The average American spends 18 years in retirement. Yes, your money has to hold out that long.

Of the 60 million wage and salaried women working in the United States as of March 2005, just 47 percent participated in a retirement plan. Remember, even small amounts can earn interest and add up over time.

To get equity out of your home, you might consider a reverse mortgage. Don't! They are bad deals. Talk with a financial planner about other alternatives that make more sense.

Social security benefits are not determined by your total contributions. Instead, your benefits are based on your 35 highest earning years.

Consider moving when you retire. If you love in a location with a high cost of living, moving to a lower cost area such as Florida can make a big difference.

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?

Instead of blowing a tax refund, have the IRS deposit it directly into your IRA or retirement account.

Rip up your credit cards and pay off all balances. Once done, use the money you would have paid to credit card companies for your retirement funding.

If you plan to work after your retirement age, keep in mind that you might not be able to. Why? Your health could leave you. If that happens, will you have saved enough money?

You have until April 15, 2008, to make your IRA contribution for the previous tax year.

Do you have enough money to retire comfortably? You will never know for sure, so you need to save more than you expect to need. The difference between living on a couple thousand dollars a month and five times that is huge.

keywords: retire retirement planning income social security benefits 401k ira personal financial planning

Article Source: http://interpret.zar.vg

About The Author
Barry Waxler is a financial planner who writes about financial planning for UFCAmerica.com. Don\'t reprint this exact article. Instead, reprint a free unique content version of this same article.