Retirement Financial Planning

Think realistically about when you want to retire. How much longer can you see yourself working and is it worth it to perhaps cut back on expenses to enjoy the smaller things in life for longer? Choosing an age at which to retire is a personal choice and can vary by situation. Some people only want to work as long as they absolutely have to, which is completely understandable, particularly at an advanced age. Other folks out there may plan on retiring only after they reach certain career goals, either way it boils down to the right combination means, lifestyle expectations and personal preference.Bear in mind, retirement is a personal choice but you are not the only person it affects. First and foremost, retirement will drastically change your family dynamic. For those considering retirement with kids still living at home, retirement can be both a blessing and a curse. (more…)

Have you ever received a hefty chunk of change and immediately spent it all as if your pockets were made with swiss cheese lining, only to later see something you really need and wish you still had the money left to purchase it? It’s a pretty common problem. Money management is a noble ideal but a troublesome practice for many otherwise responsible working adults. A 401k plan helps to encourage a wage earning individual to set aside some his or her annual earnings for either retirement or a rainy day in the future, prolonging financial gratification for a later date at which you’ll be even more appreciative. A 401k plan is essentially a means of income deferral, opting to receive payment decades after it was actually learned, forcing the recipient to budget responsibly. In a traditional 401k plan, a percentage of wages are paid directly to the 401k account which is managed by the employer. (more…)

Retirement isn’t an “I woke up this morning and decided I was done” type decision. Retiring without your ducks in the row is really just a fancy way of saying “I quit.” In order to make sure you financial future is secure, years of planning should take prior to taking the first sip of champagne at your send-off. Here are some tips to make sure you get off to a good start and stay on the right track towards a fulfilling and comfortable post-employment period.

1. Set real dollar goals Retirement may mean no more work but that doesn’t mean you aren’t going to have to work to get there, so whip out the handy calculator, make a realistic assessment of your expenses and determine exactly how much money you will need to support your retirement plans. These figures will be drastically different for everybody, as it would obviously be significantly more expensive to retire to a seaside villa in the south of France compared to pond adjacent barn home in south Georgia, though both may be equally appealing to certain retirees. (more…)

In the movies retirement is painted as a relaxing ride off into the sunset, but the reality is that for many retirees it can be a time of soul searching more stressful than even the rat race of the working world. Look no further than our famous sports stars, most recently Vikings quarterback Brett Favre, saying goodbye to a way of life you’ve become accustomed to can be a nerve wracking-change of direction. Retirement shouldn’t be seen as intimidating, but rather as a relaxing reward for years of hard work. In order to ensure that you enjoy a fulfilling, anxiety free transition to the post-employment world, anticipate these potential problems and know how to solve them should they arise.Feeling a Lack of Purpose – After years of building towards certain career goals, sitting around with seemingly nothing to do indefinitely isn’t as novel and enjoyable as it was when it was limited to just a week’s vacation. (more…)

Even savvy retirement planners can overlook or mismanage their money from time to time, bringing about the exact type of stress and labor retirement was designed to avoid. After all, no one can completely predict the future, although due diligence and research often leads or a more enlightened and realistic forecast. When contemplating your retirement plan and assessing where you are relative to your desired financial future, here are a few things to keep in mind that are constantly overlooked by retirees until it becomes an unavoidable inconvenience.Underestimating medical bills Right now you are quite possibly relatively young as compared to age you plan to retire. It would logically follow that as you get older, you will no longer have the same fit bill of health you might have at the current time. Even the difference between the annual medical bills of 60-year old vs. a 70-year old or 80-year old can vary dramatically, not to mention pricey long term care services/facilities. Don’t calculate how much maintaining your health will cost you based on today’s figures as it is sure to greatly increase in your future. (more…)