Use Your Motivation to Prepare for Your Retirement Work

If it looks like you'll need to work in retirement, at least for a while, choose an endeavor you enjoy to keep yourself motivated. This article gives you an approach to finding a job you want.

Whether you're just beginning retirement or have a few years to go, you may know that you'll have to supplement your retirement income with some working income. And that means working part-time or full-time either for a company or yourself. If that's you, here's something to think about.

Most likely you've worked all your life for someone else. And there's a good chance you worked 'just for the money' to support the kids and family and to enjoy doing what you wanted to do in your free time. To you, working and enjoying were separate activities.

But you ought to aim for enjoying your work to help make your retirement enjoyable. If you're still working at your career job, its income will support you while you develop what your 'retirement' job will be. If you're retired, you have some retirement income from Social Security, pension, and/or savings but, perhaps, not quite enough to spend for things to enjoy.

If either is the case with you, rather than jump on the work 'just for the money' routine for any old company, should try to choose a job you can enjoy. So, how do you do that?

Self-employment interests you?

If you'd like to self-employ yourself, first find something you enjoy doing - a hobby, an avocation, a 'desire to do...' - and then begin doing it. So, where does the money comes from?

Don't worry about the money. First find enjoyment expanding your time and effort doing what you want to do. Spend little or no money, though, and live off whatever retirement income you have if you aren't still working. Otherwise find the time to do so if you're still on your career job.

So now you're enjoying yourself for free - without getting a job 'for the money' to spend to enjoy yourself 'after work hours'!

But use your motivation at doing 'what you like to do' to think of ways you can 'eke' out a few dollars from it, too. Just go for those few dollars and forget about becoming a millionaire business man. But keep pushing yourself a little more at the same time as you keep your overall efforts directed so you're enjoying what you're doing. Eventually, you'll find a way to pull in something more.

Remember, getting by on your own and doing what you like to do is the dream you - and everyone else - has had all his working life. And now you're doing it.

Not interested in being self-employed?

Take the same approach to find a job you'll enjoy doing, though for some company. Search out the nature of work you think you'd like. There may be several jobs that you'd love. But, I'm guessing that your choice job is not available.

Don't let that deter you. Consider offering your services for very little, as an 'intern' (a euphemism for no pay but the opportunity to learn), or simply as a volunteer. Now go to it.

Your motivation should help make you a good 'worker' - a good learner and enthusiastic. Then the opportunities will begin to appear. Keep your eyes open and grab on to what you want.

Remember, you retirement work should bring you satisfaction and enjoyment. That doesn't mean it won't take effort and endurance. What it does mean is that the effort and endurance will be worth more than whatever money you get.

My philosophy on investing for retirement

While running for Congress, I participated in seven or eight candidate forums, and most of the questions in those forums were predictable – abortion, guns, immigration, and global warming. But one question threw me for a loop.

The moderator at KLRN public TV asked me to describe the new public programs that I would push for to help people prepare for retirement if they were currently living paycheck-to-paycheck. The question was difficult from a number of aspects, the most obvious that, as a conservative, I wasn’t in the business of pushing for new government programs.

The tricky aspect of question was that it seemed to be related to retirement savings, but that only masked the real underlying problem, which is living paycheck-to-paycheck. Anyone living paycheck-to-paycheck can’t save for retirement until they quit living paycheck-to-paycheck, and most financial guidance is focused on that objective – things like cutting your expenses and reducing your debt. But my post today is not for those who are living paycheck-to-paycheck. Rather is for those who already have some extra money to put away for retirement.

My investing philosophy has five fundamental considerations:

1. Don’t stuff your money in a mattress. People joke about stuffing money in a mattress. I feel the same way about any money that is not invested in stocks. Money is either working or it is sitting on the sidelines. If your money is not in stocks, you are essentially playing like a small-time banker who loans out money and receives a little interest. Everyone knows that significant financial rewards are reserved for businesses entrepreneurs. If you invest in stocks, you are an entrepreneur.
2. Root for a booming economy. If you have your money parked in bonds or cash, while your friends have theirs in stocks, you might be tempted to root for the stock market to do badly. I hate that feeling. I want to root for the economy to soar, not for it to tank.
3. The stock market is not Las Vegas. Although stocks are risky, they are fundamentally different than gambling. Stock prices go up and down wildly because of speculation, but the underlying value of a stock depends on its future profits. Most corporations regularly return handsome profits, and those profits don’t evaporate into outer space. Rather, they are used by the corporation to acquire additional assets and those assets are reflected in the long-term direction of their stock price.
4. Stocks almost always out-perform cash and bonds. Until recently, financial advisors pointed out that the stock market out-performed cash and bonds over every 10-year period except the Great Depression. Then last year, there was a lot of talk about the stock market losing money over a 10-year period. While that is true, please remember that this period includes investors who bought into the market at the height of the dot.com boom in 2000 and then sold out at the bottom of the mortgage crash of 2009. Yes, those people lost money in the stock market, but their timing was incredibly bad. In virtually every other scenario, buying stocks was the right move.
5. Proper asset allocation. Almost every financial advisor suggests that investors shift most of their 401k-money out of stocks and into cash and bonds as they reach age 50, assuming that they will start withdrawing from the 401k at age 59 or 62. My experience with professionals at my previous employer USAA is that employees may retire at 59 or 62, but they don’t seriously tap into their 401k at that time. Instead the 401k-money sits there while the employee taps into a pension, social security, or other assets. Thus, I think the correct advice for asset allocation of 401k accounts is to stay in stocks until you get within 5-10 years of making significant withdrawals from the 401k. That will mean leaving a much larger percentage of the 401k-money in the stock market during the early part of your retirement.
6. Index funds. John Bogle of Vanguard has convinced me that index mutual funds make sense for most of us investors because of their low cost. And even the world’s greatest investor Warren Buffett of Berkshire Hathaway says that most investors should be in index funds instead of stock-picking. But I enjoy stock picking, so I do it. Although my investment in Warren’s stock has been mediocre, I have had great success with stock in my fitness club – Lifetime Fitness – and my dad’s favorite car – Ford. If you are familiar with a company’s operation and prospects, I think it is a good bet to invest 5% or 10% of your money in that company.

Think about getting the boat with me – investing in stocks. Whether you pick your stocks or invest in mutual funds, remember that a rising tide floats all boats.

Source:mkueber001.wordpress.com

Roth Ira ,Traditional Ira And 401k Calculator

It’s never tοο late tο bеɡіח saving fοr retirement. Many people tһіחk tһаt іf tһеу аrе close tο retiring, tһеח іt іѕ tοο late tο save. Tһіѕ іѕ חοt trυе. It doesn’t matter һοw οƖԁ уου аrе, уου саח always bеɡіח tο save money fοr уουr retirement. Tһе following tips wіƖƖ һеƖр уου organize уουr finances before уου leave tһе work force.It іѕ typically better tο bеɡіח saving fοr retirement іח уουr younger years. Tһіѕ wіƖƖ allow уουr contributions tο grow аחԁ wіƖƖ provide уου wіtһ more money wһеח уουr reach tһе age οf retirement. Tһеrе іѕ חο way tο know wһаt уου wіƖƖ need wһеח уου retire. Even іf уου feel confident аbουt уουr retirement, chances аrе уου wіƖƖ חοt һаνе saved enough money tο support уουr lifestyle. Tһаt іѕ wһу іt іѕ ѕο іmрοrtаחt tο bеɡіח contributing tο a retirement рƖаח аѕ early аѕ possible. A recent study revealed tһаt 60% οf people іח tһеіr 50s аחԁ 60s һаνе experienced a job loss οr аח illness. Tһіѕ prevents tһеm frοm earning money, thus preventing tһеm frοm saving fοr retirement.WһіƖе уου mау tһіחk уου һаνе saved enough, here аrе ѕοmе statistics tһаt mау mаkе уου tһіחk otherwise. More tһаח 50% οf workers іח tһеіr 30s һаνе retirement plans tһаt һаνе a value οf $17,000. Wһеח tһеу reach tһеіr 40s, 60% οr workers һаνе accounts wіtһ a $40,000 value. Aftеr tһе age οf 55, mοѕt people һаνе less tһаח $100,000 іח a retirement account. Tһеѕе savings аrе far frοm adequate, especially wһеח уου consider tһаt уου wіƖƖ bе withdrawing 4 tο 5% οf tһе amount each year wһеח уου retire. Tο mаkе matters worse, mοѕt retired individuals receive mοѕt οf tһеіr income frοm Social Security, wһісһ averages аt $1,150 per month. Tһаt іѕ barely enough tο live οח.It mау seem Ɩіkе those retirement years аrе far іח tһе distance, bυt іt іѕ ѕο іmрοrtаחt tο bеɡіח saving аѕ soon аѕ уου саח. It іѕ recommended tһаt tһе average worker ѕһουƖԁ save аt Ɩеаѕt 10% οf tһеіr annual income fοr retirement. Mοѕt retirees wіƖƖ require 75% οf wһаt tһеу wеrе mаkіחɡ іח tһе workforce іח order tο continue living іח tһе same manner. Young workers саחחοt rely οח Social Security, ѕο saving now іѕ imperative!Tһеrе аrе many ways tο save fοr retirement. Mοѕt employers wіƖƖ offer ѕοmе type οf retirement рƖаח. Typically, іt іѕ a 401(k) рƖаח. Tһеѕе wіƖƖ allow уου tο save around $16,500 per year. Tһе amount increases annually аחԁ іѕ based οח уουr pre-tax income. If уου аrе over tһе age οf 55, уου саח save up tο $22,000 a year wіtһ a 401(k). Tһе advantage іѕ tһаt уου wіƖƖ חοt һаνе tο pay taxes οח tһе money until уου bеɡіח tο withdraw frοm tһе account.IRA’s аrе another way tο save fοr retirement. Tһе contribution limits аrе much lower wіtһ tһеѕе. Yου саח οחƖу contribute $5,000 per year. If уου аrе over 55, tһе amount іѕ raised tο $6,000 yearly. Roth IRAs аחԁ Roth 401(k) plans аrе аƖѕο available. Tһеѕе plans offer уου tһе ability tο save income tһаt һаѕ already bееח taxed. Tһіѕ іѕ a һυɡе benefit later bесаυѕе уου wіƖƖ bе аbƖе tο withdraw frοm tһе accounts without having tο pay аחу taxes.Even though уου mаkе contributions tο a retirement рƖаח tһаt ԁοеѕ חοt mean tһаt іѕ аƖƖ уου need tο ԁο. It іѕ іmрοrtаחt tο review уουr accounts each year. Yου саח reallocate уουr investments tο earn more money. Another thing tο keep іח mind wһеח рƖаחחіחɡ fοr retirement іѕ tο рƖаח fοr tһе inevitable. Mаkе sure tο һаνе a current list οf аƖƖ уουr assets. Tһіѕ wіƖƖ bе a һυɡе һеƖр іf уου ѕһουƖԁ die. Always keep уουr list οf beneficiaries current аחԁ һаνе a living аחԁ traditional wіƖƖ.Many οf υѕ һаνе trουbƖе looking ahead аחԁ рƖаחחіחɡ fοr retirement. If уου аrе іח уουr sixties, іt іѕ time tο focus οח reality. Yου wіƖƖ bе retiring soon аחԁ уου want tο mаkе tһаt transition аѕ smooth аѕ possible. It іѕ advised tο pick a date fοr retirement. Tһіѕ wіƖƖ һеƖр уου determine іf уου wіƖƖ һаνе tһе finances уου wіƖƖ need. Mаkе sure уου know wһеrе уου wіƖƖ bе living аחԁ prepare a possible budget аחԁ mаkе sure tο рυt extra aside fοr health care.If уου һаνе חοt уеt begun tο save аחԁ рƖаח fοr retirement, don’t panic. It’s never tοο late. Situations саח change daily аחԁ уου never know wһаt сουƖԁ happen. If possible, continue tο work past tһе retirement age. Tһіѕ wіƖƖ allow уου tο continue tο save fοr tһе day уου ԁο retire.

Retirement in Your 50s

Make Your Retirement Plan Work

How much do you need to retire?

Before you wax nostalgic for the good old days when you could count on pensions and Social Security to support you in your golden years, remember that those days were relatively brief -- not so much an era as an aberration.

The whole concept of retirement is fairly recent, an experiment that began with the creation of Social Security in 1935, observes Ken Dychtwald, a gerontologist and authority on aging in the U.S.

With the country facing massive unemployment during the Great Depression, Social Security was a way of providing older workers with guaranteed income so that they could leave their jobs, freeing up slots for younger workers.

"No one considered whether a life without work would be satisfying or sustainable," says Dychtwald. Even when traditional pension plans were at their peak in 1985, fewer than half of Americans working for private companies were covered.

As the leading edge of the baby-boom generation turns 60 this year, "it's time to retire retirement," declares Dychtwald, author of The Power Years: A User's Guide to the Rest of Your Life.

And he doesn't think that's necessarily a bad thing: "Like a great dessert, too much leisure can make you sick after a while. Boomers don't want to fade into obscurity. They want to trade success for satisfaction."

 By Kiplinger's Personal Finance Magazine

What is a Good Amount to Retire With?

When you are trying to determine a good amount to retire with, there are many factors that you will have to consider. Assuming that retirement in your case means to stop working completely, below are the factors to consider:

• Your expenses at the time you retire
• Inflation that impacts your expense up to retirement, and inflation during retirement
• Your rate of return on your investments
• The total value of your investments
• How long you live
• Additional sources of incomes

Let’s say $100/day is your expenses ($36500 a year) when you want to retire (so this amount would have already been adjusted for inflation). Let’s say your total value of return producing investments is $200,000 (cannot include equity in your home unless you want to get into a reverse mortgage but that can come with a set of different problems).

To stop working and live on expenses of $36,500 a year on $200,000 definitely, with ever touching your principal (so the $200k never goes down) you will need to achieve a 13.25% annual return on your investment, not adjusted for inflation (18.25% + inflation... maybe 3% = 18.79% the second year) and this number will grow each year with inflation as your principal is not going up). While achieving such a high rate of return is not unthinkable, it is on the high end and quite unlikely (unless you are really good friends with Warren Buffet), when savings accounts are paying roughly 4% and the stock market is poised to deliver on average 8-12% returns on an annual basis.

So let’s get back into the numbers and assume that you will only need the money for 10 years, you are going to retire today and there will be no inflation for the next 10 years, and that you are willing to spend your entire principle amount and you can get an average return of 8% on your money..You need roughly $265,000 to take a draw of $36,500 a year for the next 10 years (so the $200k is still a bit short of your goal). The amount of $200k sure doesn’t seem much now to retire on does it? Once you start factoring in inflation, years until you retire and lengthening the time you will be in retirement and drawing down your money the numbers will start to get worse and worse, and chances are you will need like $500,000 or so to really retire comfortably. Source:infobarrel.com

Types of Retirement Benefits

There are many types of retirement benefits as there are many types of agencies to choose from in taking care of your hard-earned money from years of working. The government itself empowers workers from receiving Social Security benefits based on the number of years of contribution and benefits you already have taken advantage for.
Some of the types and sources of retirement benefits are outlined below:
· Social Security Benefits
· Disability Benefits
· Private Savings
· Veterans benefits
Social Security Benefits
Social Security allows more people to profit from its exclusive and wide-range benefits. It has long history of providing excellent social benefits to contributors while occasionally extending support to non-members as well through its various humanitarian programs. To date, more than 96% of the American populations are members of the Social Security System.
The number of years of contribution determines the rate at which you will receive your contribution in the future. Basically, the later you retire, the higher the amount of pension and retirement interest you will receive from your Social Security.
Currently, the recognized full retirement age is 65 though one can retire by 62 and 67. Unusual cases where early retirement is possible are discussed below.
Disability Benefits
Some people who became less capable to taking care of themselves or werephysically incapacitated due to a traumatic accident can apply for disability benefits. Some even are due to health issues.
The good thing about filing for disability benefits is that, you can get the full retirement benefits as received by others who have fulfilled the full retirement age, although this one requires full medical certification from one of the accredited Social Security Hospitals.
Private Savings
Private savings and pensions are another alternative for individuals who want to maximize their pensions and health care benefits when they reach retirement age. This type of retirement benefit alternative is usually expensive for they require longer and higher contribution.
Veterans Benefits
Veterans and their families are protected by law to receive certain dividends from the government for various health care benefit programs designed specifically for them. Veterans are required to contact their local federal agencies on how to avail of their earned benefits during their full career as members of armed forces.

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Amount to Retire With

The question of 'how much money do I need to retire' is one that often gets asked but rarely gets answered. Obviously there are a number of factors that we need to consider when answering this question like
 
- How old are you going to be when you retire (will it be a late or early retirement)?
 
-          What do you plan to do once you are retired eg. Are you going to travel the world or baby sit your grand children?
 
-          Where to retire? Will it be in the suburbs or on the beach front property?
 
All of these questions need to be put into a retirement calculator in order for you to get an accurate answer to the question - how much do I need to retire?
 
RETIREMENT CALCULATOR
 
The first question you need to answer is - how much money would you like to live off per annum?
 
Let's use an average amount that would allow you to live a very happy and exciting lifestyle -
eg. $50,000
 
This amount will obviously differ from person to person, if you are planning on seeing every country in the world then I would imagine you would need a lot more money per year. Especially if you want to retire early! 
 
Ok, so we are going to do our figures on the annual retirement income of $50,000
How much money would we need to save in order to earn $50,000 of passive income?
 
This depends on how you are going to be getting this income but lets assume that through property, the stock market and some cash investments you can get a return of 7%. At the moment this may sound like an unrealistic amount but if you average this number out over time then I believe this is extremely possible. In fact I would say this is a very conservative estimate, especially if you have some financial knowledge.
 
So if you were to have $715,000 worth of ungeared investments eg. Shares or property that was earning you 7% per annum you would be able to draw an annual income of $50,050. By doing this you wouldn't even be touching your savings.   Let's get onto your own retirement planning
 
 
So how do you figure out how much you need to retire? 
 
Simply work out the amount you want to earn per year. Let's call it X
 
Then divide X by 7 and times that number by 100
 
This sum will give you the amount of savings or paid off investments that you will need to be able to retire happily. 
 
So is your number more or less than you thought? You may also like to consider that by using this retirement calculator means that you will never spend your initial capital. If you take this into account you may need slightly less than the figure you get. Now that we have answered how much money do you need to retire, it's time for you to start thinking about how to save that money.

Plan your Retirement now!

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