Financial Planning for Retirement Living



If you haven't been preparing or planning for your eventual-and inevitable-retirement, you need to start thinking about financial planning for retirement living, whether you're in your 20s, 30s, or 40s. The earlier you start financial planning for retirement living, the better off you'll be in your financial situation, both in the short term as well as the long term.

For some people, retirement seems a long way off, so they don't bother investing too much time, energy, or planning for it. But securing enough income to last you and your family for anywhere from 10 to even 30 plus years is no easy feat, and it takes time and discipline, as well as financial planning and strategizing.

Financial planning for retirement living can seem like a daunting task, and it can be if you don't know where to start and if you're not prepared. Finding the balance between having enough income for the present and having enough to save for the future-retirement living-is a challenge, but it's one that you can easily overcome if you're determined.

If you don't know where to start for financial planning for retirement living, there is a plethora of helpful information available at your fingertips. The Internet is chock full of information and retirement plans, as well as online retirement planning companies, and your local library may be helpful, too. Check with your bank, other local financial institutions, companies that specialize in financial planning for retirement living, and financial advisors.

You may think financial planning for retirement living is not an issue now if retirement seems a long way off, but it will come sooner than you think, and it's better to be prepared.

Invest in Real Estate for Retirement



What is the difference between being rich and being wealthy? Being rich is having money, but working for your money. Being wealthy is having money, but your money working for you. In other words, being wealthy is having money that can create a cash flow through interest or some other means that is large enough to provide a living for you and your family. Most of us are not wealthy, and becoming wealthy is not an easy task, but if you were to invest in real estate, you too, could become wealthy for retirement.

In today's housing market, it makes sense that that purchase of rental property is a wise decision for retirement income. If you are a rather young adult that can afford to purchase real estate, even with a bank loan, this could be a solution that could create a very comfortable retirement. Once you have paid the mortgage on the rental property, the rest if positive cash flow. Keep in mind that there is an upkeep factor involved, but if you were to keep a small percentage socked away for repairs and upkeep, most of your profit is saved for retirement and you have to do very little work for that profit.

You are not going to get rich overnight by investing in real estate. Most homes will gain value over time, but that time is not normally a week or two. Rental property investment is meant to be long term. Please do not pay attention to those infomercials that you see during the night that promise a get-rich-quick solution involving real estate. Chances are, the only ones getting rich quick are the ones selling you their junk at 2am. If you are inexperienced at home repairs or being a landlord, investing in rental property could be a risky undertaking. You need to make sure to do your homework, so to speak, before jumping in headfirst. You will need to know the basics of home repair, or you will spend all of your profit in paying someone to do miniscule projects around the rental home.

A problem that arises with many retirees is that the cost of living has gone up faster than their retirement account. The way to combat that is real estate. The average home is going to appreciate in value over time with the cost of living. The IRA you opened at age 40 is going to grow, but not at a steady pace and may or may not be in line with the cost of living. Many people, especially top paid executives, feel that their retirement is secure because of their 7-figure salaries and similar retirement accounts, but we need to look no further than ENRON to see that we never know what tomorrow will bring.

Now, let's crunch some numbers and show you what we mean. Take a $25,000 investment that you can make into a retirement account. Take that investment and make it a down payment on a $250,000 house for rental property. Lets plan on keeping this home for 20 years. On average, you can count on the cost of living making this home worth around $800,000 after those 20 years. Assuming a breakeven cash flow (which should not happen if you manage correctly) and not counting the tax breaks, you will have an ending profit of $775,000.

Now, lets take that an even larger investment of $50,000 and put it in a market fund because it is a non-risk investment. You can expect to earn 8%-10% per year on that investment. After 20 years, you would have anywhere from $266,000 - $366,000. This decision seems like a no-brainer to me.

As you can see, a real estate investment, when taken correctly, can provide a great retirement account” with little risk.

How Much Do You Need?



The key to making your money last during retirement is knowing about how long it needs to last-a 'guesstimate.' For instance, a 65-year-old man today has a life expectancy of about 16 years, and a woman of the same age, an expectancy of about 19 years. However, keep in mind that these are average figures. Lots of people live longer than these mean numbers, which is why many financial planners will suggest that you add 50% to the average life expectancy as a safety cushion. Some planners even go to the extent of figuring that clients will live to age 100, which is becoming more and more feasible. To get an even better estimate, head to the doctor, and explain your situation. Factors such as smoking, nutrition, and genetics can all factor into your life expectancy.

By the time you hit retirement, you should have a pretty good handle on how much money it will take to live the way you like. The rule of thumb that retirees can live on 70 to 80 percent of pre-retirement income does not work for everyone.

Retirement spending, especially in the early years when you are active and healthy, often pushes your budget above those pre-retirement levels. Travel expenses may go up. Medical-insurance costs may soar if you retire when you are to young for Medicare and you have no employer-provided retiree health benefits.

Other expenses may go down. Job-related costs will disappear, including the portion of your salary you're now shoveling into retirement accounts. Your mortgage payments may end, too. Will you drop or cut back on life insurance?

Once you have a target of how much you'll need each year, consider the resources you have. Although social security is likely to be remodeled in the future, current and soon-to-be retirees are still in luck. To find out how much to expect, ask the Social Security Administration for an estimate of your benefits by going to the agency's website You'll also need to figure how much you'll get from company pensions you racked up in various jobs over your career. This will help you budget accordingly for to live a comfortable retired life.

Preparing For Old Age



Socrates was once asked by a pupil, this question: "What kind of people shall we be when we reach Elysium?"

And the answer was this: "We shall be the same kind of people that we were here."

If there is a life after this, we are preparing for it now, just as I am today preparing for my life tomorrow.

What kind of a man shall I be tomorrow? Oh, about the same kind of a man that I am now. The kind of a man that I shall be next month depends upon the kind of a man that I have been this month.

If I am miserable today, it is not within the round of probabilities that I shall be supremely happy tomorrow. Heaven is a habit. And if we are going to Heaven we would better be getting used to it.

Life is a preparation for the future; and the best preparation for the future is to live as if there were none.

We are preparing all the time for old age. The two things that make old age beautiful are resignation and a just consideration for the rights of others.

In the play of Ivan the Terrible, the interest centers around one man, the Czar Ivan. If anybody but Richard Mansfield played the part, there would be nothing in it. We simply get a glimpse into the life of a tyrant who has run the full gamut of goosedom, grumpiness, selfishness and grouch. Incidentally this man had the power to put other men to death, and this he does and has done as his whim and temper might dictate. He has been vindictive, cruel, quarrelsome, tyrannical and terrible. Now that he feels the approach of death, he would make his peace with God. But he has delayed that matter too long. He didn't realize in youth and middle life that he was then preparing for old age.

Man is the result of cause and effect, and the causes are to a degree in our hands. Life is a fluid, and well has it been called the stream of life we are going, flowing somewhere. Strip Ivan of his robes and crown, and he might be an old farmer and live in Ebenezer. Every town and village has its Ivan. To be an Ivan, just turn your temper loose and practise cruelty on any person or thing within your reach, and the result will be a sure preparation for a querulous, quarrelsome, pickety, snipity, fussy and foolish old age, accented with many outbursts of wrath that are terrible in their futility and ineffectiveness.

Babyhood has no monopoly on the tantrum. The characters of King Lear and Ivan the Terrible have much in common. One might almost believe that the writer of Ivan had felt the incompleteness of Lear, and had seen the absurdity of making a melodramatic bid for sympathy in behalf of this old man thrust out by his daughters.

Lear, the troublesome, Lear to whose limber tongue there was constantly leaping words unprintable and names of tar, deserves no soft pity at our hands. All his life he had been training his three daughters for exactly the treatment he was to receive. All his life Lear had been lubricating the chute that was to give him a quick ride out into that black midnight storm.

"Oh, how sharper than a serpent's tooth it is to have a thankless child," he cries.

There is something quite as bad as a thankless child, and that is a thankless parent an irate, irascible parent who possesses an underground vocabulary and a disposition to use it.

The false note in Lear lies in giving to him a daughter like Cordelia. Tolstoy and Mansfield ring true, and Ivan the Terrible is what he is without apology, excuse or explanation. Take it or leave it if you do not like plays of this kind, go to see Vaudeville.

Mansfield's Ivan is terrible. The Czar is not old in years not over seventy but you can see that Death is sniffing close upon his track. Ivan has lost the power of repose. He cannot listen, weigh and decide he has no thought or consideration for any man or thing this is his habit of life. His bony hands are never still the fingers open and shut, and pick at things eternally. He fumbles the cross on his breast, adjusts his jewels, scratches his cosmos, plays the devil's tattoo, gets up nervously and looks behind the throne, holds his breath to listen. When people address him, he damns them savagely if they kneel, and if they stand upright he accuses them of lack of respect. He asks that he be relieved from the cares of state, and then trembles for fear his people will take him at his word. When asked to remain ruler of Russia he proceeds to curse his councilors and accuses them of loading him with burdens that they themselves would not endeavor to bear.

He is a victim of amor senilis, and right here if Mansfield took one step more his realism would be appalling, but he stops in time and suggests what he dares not express. This tottering, doddering, slobbering, sniffling old man is in love he is about to wed a young, beautiful girl. He selects jewels for her he makes remarks about what would become her beauty, jeers and laughs in cracked falsetto. In the animality of youth there is something pleasing it is natural but the vices of an old man, when they have become only mental, are most revolting.

The people about Ivan are in mortal terror of him, for he is still the absolute monarch he has the power to promote or disgrace, to take their lives or let them go free. They laugh when he laughs, cry when he does, and watch his fleeting moods with thumping hearts.

He is intensely religious and affects the robe and cowl of a priest. Around his neck hangs the crucifix. His fear is that he will die with no opportunity of confession and absolution. He prays to High Heaven every moment, kisses the cross, and his toothless old mouth interjects prayers to God and curses on man in the same breath.

If any one is talking to him he looks the other way, slips down until his shoulders occupy the throne, scratches his leg, and keeps up a running comment of insult "Aye," "Oh," "Of course," "Certainly," "Ugh," "Listen to him now!" There is a comedy side to all this which relieves the tragedy and keeps the play from becoming disgusting.

Glimpses of Ivan's past are given in his jerky confessions he is the most miserable and unhappy of men, and you behold that he is reaping as he has sown.

All his life he has been preparing for this. Each day has been a preparation for the next. Ivan dies in a fit of wrath, hurling curses on his family and court dies in a fit of wrath into which he has been purposely taunted by a man who knows that the outburst is certain to kill the weakened monarch.

Where does Ivan the Terrible go when Death closes his eyes?

I know not. But this I believe: No confessional can absolve him no priest benefit him no God forgive him. He has damned himself, and he began the work in youth. He was getting ready all his life for this old age, and this old age was getting ready for the fifth act.

The playwright does not say so, Mansfield does not say so, but this is the lesson: Hate is a poison wrath is a toxin sensuality leads to death clutching selfishness is a lighting of the fires of hell. It is all a preparation cause and effect.

If you are ever absolved, you must absolve yourself, for no one else can. And the sooner you begin, the better.

We often hear of the beauties of old age, but the only old age that is beautiful is the one the man has long been preparing for by living a beautiful life. Every one of us are right now preparing for old age.

There may be a substitute somewhere in the world for Good Nature, but I do not know where it can be found.

The secret of salvation is this: Keep Sweet.

Getting Prepared to Retire



It is never too early to start thinking and preparing for retirement. Here are some items to consider about this very important time in your life.

Review your finances. Knowing where you stand will help you focus on where you are headed. If you are in debt up to your elbows, then obviously you are not prepared to retire. Right now, set a personal budget and include some amount for retirement. To keep the same standard of living after retirement, then you will need between 70% and 90% of your current income.

Review your current needs and goals. Knowing what you plan to do can give you some idea of what you will need in terms of money and health. So whether you plan to travel or stay home with the grandkids, start planning now.

Develop a healthy lifestyle. This is the perfect time to quit smoking and start exercising. Losing a few pounds can help many aging folks stay healthier and keep fitter.

Talk to your employer about your retirement plan now. Check to see what you can contribute and if your employer provides matching funds.

Discuss various retirement possibilities with your spouse. Understand each other's plans and make sure that you have all appropriate legal papers signed.

Review your benefits and social security statement. If you have any questions, call to have them explained now instead of later.

Open an IRA. You can check with your bank to see if you are eligible to open an IRA and get help you with the process.

Think of how you want to spend your time. After retirement, you may want to take another job, volunteer, travel, or hobby.

These tips on getting prepared won't guarantee that you'll be ready for retirement, but give you some suggestions on making it easier. Many great successes in life found their true calling after age 60! Retirement could indeed be one of the best and most productive phases of your life.