Six Retirement Planning Myths Busted

It’s never too early and never too late. Here are a few retirement myths to start busting right now! Retirement planning myth articles might not be at the top of your weekend reading list but this one will take you less than three minutes to read and it could save you a lot of financial pain later.

Six Retirement Planning Myths

Myth #1. When I retire I won’t need as much to live on.

Hogwash! How do you know what the cost of living is going to be? Sure the kids are off on their own and the house might be paid off but medical bills and cost of living are unpredictable. You should be able to live on less but why would you want to?

Myth #2. I’m a young pup and retirement is far, far away!

Get real dude, time flies when you’re having fun and burning mun. Of course it’s much easier to save a measly $29 a week at 34 than it is to save a whopping $240 at 54! That’s about what it’s going to take to have $200k in the old nest egg at 65. So there you have it. You can do it the hard we or the easy way. You decide oh youthful one!

Myth #3. My adorable children will take care of me.

Whoa! Haven’t you been watching TV? Your kids are more likely to move back in with you than they are to take care of you! Think back a bit… didn’t you preach to your kids about personal responsibility and good old independence? Keep your kids in your life but keep them out of your retirement planning.

Myth #4. I’m counting on social security to save my bacon!

Yeah, that will be the day when pigs fly. Uncle Sam hasn’t figured out if there will even be any social security in another decade or two. If you want to hold onto a weak retirement strategy then just count on Uncle Sam to be there with that retirement check when you need it. You are better off counting on your own discipline and resourcefulness. You can start drawing social security at 62 but depending on your age, you might be better off to consider that as a bonus than a sure thing.

Myth #5. I don’t have enough money to save or invest for retirement.

That might be true but then… maybe not. Take a hard look at where your money is going. Have you maximized your contributions to your 401(k) or other employer-sponsored retirement plans? Have you considered leveraging your home equity or other under-performing assets into safe and secure investments? Have you scrutinized your spending habits? Do you really need that satellite dish and 500 channels of mind numbing video? Do you really need the newest and shiniest shoes and chicest Chevy’s? Even if you can only save a small amount each week, start now. Be consistent and automatic with savings and investing. You might never feel like it’s enough but that is no reason to not to start.

Myth #6. I can’t afford a financial planner.

Many financial planners are compensated by the companies they represent and therefore charge nothing to you unless you do business with them. Others charge for their time on an hourly or fee-based schedule. Find someone you trust and get references. Take your time, go slow and do a little homework. Retirement planning is all about the future but it needs to start today.

The Risks Involved in Retirement Planning

 

Retirement planning involves many risks but there are also numerous rewards. Careful planning for your retirement includes taking these risk factors into consideration. One of the biggest risks and top concern of retirement planning is inflation. Many people get concerned that their money will not keep up with the pace of inflation. Building a cushion that allows for changes in the pace of inflation may insure that your retirement money will provide for all of your needs. Another risk is outliving your money. With the average female living until the age of 85 and the average man living until the age of 82, it is wise to plan for investments to provide for you up until this age or even further. Women tend to outlive their spouse due to a longer life expectancy and the tendency to marry someone older. Many women are widows for around 15 years and losing a spouse can mean a significant loss of income. Married couples should consider joint or survivor investments that will protect the surviving spouse. Healthcare expenses can really add up if you are not properly insured. Unexpected health problems can arise and you should be prepared in all cases. There is also the possibility of having to live in a long term care facility due to ongoing health problems and they are expensive. It is always wise to obtain long term care insurance for those unexpected occurrences. Finally, be realistic. Many people think that they need much more money than they do in order to retire and as a result become stressed out. Figure out what type of lifestyle you want to have in retirement and then plan accordingly.

For more information on risk management, visit http://www.risks.asia.

For more information on retirement planning resources, visit http://www.retirementplanning.asia.

 

 

Retirement Planning – 2 Options To Consider For Successful Retirement

If you’re coming up to retirement age and worry about maintaining meaning in your life once you exit the work force then don’t.
There are several great options to consider as part of your retirement planning. Today, people are living longer thanks to modern medicine and advances in nutritional research and while this is great in a sense, it means making your retirement planning count much more as your nest egg needs to sustain you for a longer period of time.
The problem is though as a baby boomer, you’re not ready to accept old age. This means as a baby boomer you’re also part of the largest spending group in human history which means you may have been a little extravagant with your money. But that’s the nature of many boomers who refuse to let old age become an obstacle in their quest to enjoy all life has to offer.
So what can you do to give your life more meaning in your retirement years. Let’s take a look at just two options you should consider.
Phased Retirement
This is going to become a “biggie.” Phased retirement is still basically a term but will gather momentum during the next few years as boomers hit retiring age.
Basically, phased retirement will give you the opportunity to continue to work in some capacity past whatever age you decide to retire. There will be a broad range of options available. Here are some of them:
- you could consider a new part-time career
- you could take on seasonal work
- establish a flexible work schedule with your current employer
- stay with your current employer or former business as a consultant
- sell your business but stay on in a part-time basis
- take a year off before returning on a part-time based
The idea of phased retirement is to not only ease one into their golden years but to also maintain security in the shape of income. Yes, there will be tax and pension considerations but phased retirement is still basically at birth stage with many issues to be sorted out.
Join A Community
Going online and becoming part of a thriving community is a choice many smart retirees will make and will form part of retirement planning options.
For example, membership sites online offering everything from health and fitness news, financial news, income opportunities and lifestyle information will become big business in the not too distant future.
Becoming part of one of these online communities is a great way to develop new friendships, not just in your own country but around the world. Forums within these online communities will be a safe and effective way of meeting up with other smart retirees.