Month: April 2018

Do’s to Preparing for your Retirement

Are you looking forward to a smooth retirement? How about achieving financial freedom in your retirement? I guess your answer is a good as mine. Having a smooth retirement and living a happy and fulfilling life thereafter is what everyone wishes. Retirement is inevitable in our lives, It is as sure as death. Sadly many people do not think about it until few years to retirement.

As long as you are alive, at some point whether employed or have a business of your own, you will have to retire from active activities. An ideal retirement is the one that will give you peace of mind after your active years. But, how do you prepare for this? Let’s find out.

Here are 4- big Do’s to help you land smoothly

Define your ideal retirement

Everyone has a wish of how they want their retirement to be. Define your ideal retirement early in life before that time comes. This will help you to make informed decisions since you have enough time to widely consult when still active.

How do you want to spend your retirement time? Some people have been so busy with work that they don’t find quality time with family. Maybe your wish is to have enough time to spend with your family. Define your ideal retirement early and start working on it.

Determine your source of funds

You will need money even in your retirement. This is the main thing to plan when you are still working. Saving for your retirement will determine the quality of  life you will live after you retire. Saving will give you financial freedom when you have no energy to work. Join social security funds from your state and start saving. US Department of treasurer introduced myRA savings to promote saving for retirement.

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Debt Management

One thing that can easily see you go down early in life is debts. As much as it is hard to live without borrowing, managing your debts is essential before you retire. Ensuring that when you retire you will have cleared your debts to give you financial freedom as you retire. Clear your mortgages years to your retirement. Ensure that as you pay your debt, you are not interfering with your saving plan.

Decide your activities after retirement

You may decide that after your retirement you will go back home and spend time with your family. But do you just sleep, wake up and sit down the whole day? Well, this is not healthy at all. You should find activities to do as you retire to help you age gracefully, be active. Make yourself useful to the society. You may volunteer in your church, community or even decide to do farming.

Final word

A happy and fulfilling retirement is a matter of choice and choices have consequences so they say. These four D’s will guide you to prepare for your retirement and see you age gracefully and happy. It is easy to memorize them or put them in your notebook for easy of reference. They will help you make wise decisions even as you prepare for a happy retirement.


Retirement Planning With Annuities

You know how important it is to plan for your retirement, but where do you start? One of your first steps should be estimation on how much income you’ll need to fund your retirement. This is not as easy as it sounds, because planning for retirement is not an accurate planning. Your specific needs depend on your goals and many other factors. Many financial professionals suggest that you’ll need about 70 percent of your current annual income to fund your retirement. This can be a good starting point, but will that figure work for you? It depends on how close you are to retiring. If you’re young and retirement is still many years away, that figure probably won’t be a reliable estimate of your income needs. That’s because a lot may change between now and the time you retire. As you near retirement, the gap between your present needs and your future needs may narrow. But remember; use your current income only as a general guideline, even if retirement is right around the corner. To calculate your retirement needs, you’ll have to take some additional income. Your annual income during retirement should be enough (or more than enough) to meet your retirement expenses. That’s why estimating these expenses is a big piece of the retirement planning. But you may have a tough time deciding all of your expenses and figuring how much you’ll be spending in each area, especially if retirement is still far off. To get started, below are some common retirement expenses:

Food and clothing

  • Housing: Rent or mortgage payments, property taxes, property upkeep and repairs
  • Utilities: Gas, electric, water, telephone, cable TV
  • Transportation: Car payments, auto insurance, gas, maintenance and repairs, public transportation
  • Insurance: Medical, dental, life, disability, long-term care
  • Health-care costs not covered by insurance: Deductibles, co-payments, prescription drugs
  • Taxes: Federal and state income tax, capital gains tax
  • Debts: Personal loans, business loans, credit card payments
  • Education: Children’s or grandchildren’s college expenses

Decide the period you’ll retire to determine your total retirement needs, you can’t just estimate how much annual income you need. You also have to determine how long your retirement will be. Why? The longer your retirement, the more years of income you’ll need to fund it. The length of your retirement will depend partly on when you plan to retire. This decision typically revolves around your personal goals and financial state.

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