Welcome to Our Retirement Page

Will your retirement income run out before you do?

That's a great fear of many people facing retirement. It's better to plan when you're younger, but if you didn't do that, this page may give you some help in developing a plan for making retirement more enjoyable.

Over 10,000 Baby Boomers will be retiring every single day for the next 20 years. Are you prepared for that day?

 

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Life Expectancy in U.S. Continues to Reach New Highs

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Computing Your Retirement Needs

How to Compute How Much You Will Need To Retire

You estimate that you will need $5,000 per month to maintain your lifestyle in retirement.

Where will that money come from?

Retirement Planning and Saving

Types of IRA's | How to Compute Retirement Needs

How to Rollover Your 401(k) | Additional Retirement Links

 

Tips on Saving, Investing, and Growing Retirement Funds

Retired Couple

Retirement Is A Scary Thing

 

Over 10,000 Baby Boomers are going to be retiring each day for the next 10-15 years. That's around 300,000 each month.

Ninety-Seven percent of Baby Boomers have not saved enough for retirement.

Only 26 percent of those aged 50 to 64 have any saving they can count on.

According to Bankrate.com, a personal finance website, 14 percent of those 65 or older have no retirement savings at all.

But the biggest question is, "Where and How Do I Start a Retirement Plan?

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The Longer You Wait The More You Lose

  • If you put $1.00 away at age 20, that dollar will be worth $21 by age 65.

  • If you wait until you are 30 to invest that same $1, it will be worth $10.68.

  • If you wait until you are 40 to invest that same $1, it will be worth $5.42.

  • If you wait until you are 50 to invest that same $1 and you’ll get a measly $2.76.

This means that a dollar invested at age 20 is nearly twice as powerful as a dollar invested at 30 and 7.5 times more powerful than a $1 that is invested at 50.

 

Click Here for Four Steps to a Healthy and Prosperous Retirement

Click Here for 62 articles on How to Start a Retirement Plan

 

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Helpful Retirement Links

 

Want a New Life? 5 Places Pay You to Relocate

5 Ways to Test Your Retirement Readiness

How to Rollover Your 401(k)

7 Retirement Savings Accounts You Should Consider

Click Here for a Retirement Calculator

Click Here for an IRS Listing of Recognized Retirement Plans

15 Financial Tips to Protect Seniors and Their Money (PDF File)

You may need to download Adobe Reader to read PDF files - Click Here.

Click Here for 62 articles on How to Start a Retirement Plan

 

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When Will You Run Out Of Money?

 

Elderly Couple RetirementAdvances in medication, healthcare, diagnosis, and exercise have increased the life expectancy of many seniors.

Will you have enough money in your retirement account to last though retirement?


If you are below retirement age it’s never too late to start preparing. If you have not already started a savings program now would be a good time to start.

If you are nearing retirement then it’s time to consider how much money you will need.

The tips below will help make sense of what you need to live a full and happy retirement.

 

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Helpful Retirement Links

 

Here is a spreadsheet that will help you know how much to take out of your retirement fund.

How to Rollover Your 401(k)

7 Retirement Savings Accounts You Should Consider

How Not to Outlive Your Retirement Savings

Click Here for 62 articles on How to Start a Retirement Plan

 

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Estimating How Much You Will Need To Retire

Start By Estimating What Will Change When You Retire

 

Usually when retirement starts your savings stop, or at least are reduced, so deduct that from your current monthly expenses.

You will no longer be working so deduct payroll tax from your retirement expenses.

However, you will still be paying taxes on social security and some distribution from 401(k)’s and IRA’s. Distributions from Roth IRA’s are tax free. At retirement you might find yourself in a lower tax bracket.

When you retire your lifestyle will change. No driving to work each day, you may spend less on clothing and you may not spend as much on groceries by taking advantage of sales.

A hard and fast rule. Do not use or borrow against your retirement to fund your children’s education. Spend any amount on your kids that does not jeopardize your retirement account.

Make a budget. I used a simple Excel spreadsheet that allots amounts for household, gas, food, utilities, etc.

I set up everything possible on automatic payments from a single household account that was only used to pay bills.

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Helpful Retirement Links

 

How to Rollover Your 401(k)

7 Retirement Savings Accounts You Should Consider

Click Here for a Retirement Calculator

Click Here for an IRS Listing of Recognized Retirement Plans

15 Financial Tips to Protect Seniors and Their Money (PDF File)

You may need to download Adobe Reader to read PDF files - Click Here.

Click Here for 62 articles on How to Start a Retirement Plan

 

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Income & Expenses


Next, compare income to expenses. How much will you need each month to maintain the lifestyle you desire?

Retirement income can be Social Security, pension plans, 401(k)’s, IRA’s, investments, royalties or other income producing instruments. Total all your potential sources of monthly income.

Total all your expenses and subtract your income. If the number is zero or positive you are in good shape.

If your number is negative then you need to compute how much you will need to go out of the red and go into the black.

 

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Helpful Retirement Links

 

How to Rollover Your 401(k)

7 Retirement Savings Accounts You Should Consider

Click Here for a Retirement Calculator

Click Here for an IRS Listing of Recognized Retirement Plans

15 Financial Tips to Protect Seniors and Their Money (PDF File)

You may need to download Adobe Reader to read PDF files Click Here.

Click Here for 62 articles on How to Start a Retirement Plan

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How To Calculate The Amount You Need For Retirement

Learn the 4 percent rule and use it to maintain your retirement income


Retirement Playing GolfA common rule of thumb for retirement funds is 4 percent.

That means that if you take 4 percent per year out of your retirement fund, the fund should be able to earn that amount or more in interest to cover the amount of withdrawal plus inflation.

The more your plan produces the better protected your retirement Investments will be.

Ask friends or family for names of good financial planners in your area and interview them.

Find the one you feel comfortable working with and set up a workable plan to explore your retirement options.

Here is a simplified example of how to calculate what you will need to maintain your lifestyle in retirement.

 

7 Retirement Savings Accounts You Should Consider

Click Here for 62 articles on How to Start a Retirement Plan

 

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Computing Your Retirement Needs

How to Compute How Much You Will Need To Retire


How to compute your retirement needsYou estimate that you will need $5,000 per month to maintain your lifestyle in retirement.

Some of your current retirement income sources might be:

  • Social Security: $1,500
  • IRA and/or investments: $750.00
  • Pension: $750.00
  • Total: $3,000 per month

Your income is $2,000 short of what you need so an additional $24,000 each year must come from some other source to maintain your lifestyle.

To find how much you need to have in retirement to get to the 4 percent distribution point you would multiply the $24,000 you are short times 25 which would equal $600,000.

This is the amount you would need in your retirement fund for the money to never run out.

When you retire your expenses will probably go down. Hopefully your home will be paid off so there will not be a house payment.

According to average estimates you will need about 75-80 percent of your pre-retirement income to maintain your current lifestyle.

Start with that figure then work out the details from there.

 

Click Here for 62 articles on How to Start a Retirement Plan

 

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Helpful Retirement Links

You may need to download Adobe Reader to read PDF files - Click Here.

 

Click Here for 62 articles on How to Start a Retirement Plan

 

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Types of IRA’s (Individual Retirement Accounts and Roth IRA's)

How Traditional and Roth IRA's Work

How to Rollover Your 401(k)

 

Retirement New lifeTraditional IRA’s are managed by “custodians.”

They might be people like retail brokers or they could be financial institutions such as commercial banks.

Investments by the IRA holder could end up in stocks, bonds, index funds, or any other financial assets selected by the custodian.

Contributions to IRA’s are made with pre-tax dollars.  

That means the taxes will need to be paid when distributions come out of the IRA as future income.

The law requires you to begin taking distributions from your conventional IRA by age 70 and a half.

If you do not start taking disbursements from the account you will be penalized.

7 Retirement Savings Accounts You Should Consider

Retirement Contribution Limits for 2015

Click this link for some of the key rules for 401K withdrawal and early withdrawals

 

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A Roth IRA

Roth IRA's Produce Tax Free Income

How to Rollover Your 401(k)


A Roth IRA differs from a traditional IRA in that contributions to a Roth come from after tax income. If you are under 50 the IRS limits the amount of money you can contribute yearly.

Over 50 you can increase contributions if you started your retirement later in life.

Distributions from your Roth can be taken without tax penalty after the money has been in place for 5 years and can be left in place as long as you like. Click Here for a worksheet for Roth and Traditional IRA contributions.

There is no mandatory distribution with a Roth IRA. You an take it as you need it without penalty.

Distributions from a Roth also come out tax-free including any interest earned while the IRA was growing.

See Additional Links about Roth IRA's below.

 

7 Retirement Savings Accounts You Should Consider

Retirement Contribution Limits for 2015

A Roth IRA Is The Most Perfect Tax Shelter

 

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Some Additional Roth IRA Information Links From The IRS

Can You Move Amounts Into a Roth IRA?

7 Retirement Savings Accounts You Should Consider

How to Rollover Your 401(k)

Click Here for a Retirement Calculator

Click Here for an IRS Listing of Recognized Retirement Plans

Click Here for IRS Explanations on all types of IRA's

Click Here for IRS Required Distribution Information

15 Financial Tips to Protect Seniors and Their Money (PDF File)

You may need to download Adobe Reader to read PDF files - Click Here.

Click Here for 62 articles on How to Start a Retirement Plan

Retirement Contribution Limits for 2015

A Roth IRA Is the Perfect Tax Shelter

 

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Additional Retirement Links

 

 

How to Rollover Your 401(k)

7 Retirement Savings Accounts You Should Consider

Fixed Income Alternatives for Retirees

Individual Retirement Arrangements (IRAs)

FAQs regarding Required Minimum Distributions

Charitable Donations from IRAs

Publication 560, Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)

RMD Comparison Chart (IRAs vs. Defined Contribution Plans)

Required Withdrawals From Your IRA (YouTube video, 1:31)

15 Financial Tips to Protect Seniors and Their Money (PDF File)

You may need to download Adobe Reader to read PDF files - Click Here.

Click Here for 62 articles on How to Start a Retirement Plan

Retirement Contribution Limits for 2015

A Roth IRA Is the Perfect Tax Shelter

 

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Photo Credits:
Some images courtesy of Ambro at FreeDigitalPhotos.net
Some images courtesy of Pong at FreeDigitalPhotos.net
Some images courtesy of StockImages at FreeDigitalPhotos.net
Some images courtesy of mrpuen at FreeDigitalPhotos.net
 

 

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