Free Retirement Planning Tips

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While you can calculate your retirement on your own, the best way to obtain an accurate forecast is to seek the services of a financial planner.

A financial planner can be objective about your finances.  He or she can advise you as to the approximate amount of your pension based on the contributions you have made over the years.

Moreover, they will probably advise you to begin contributing the maximum amount of pension contributions the closer you get to retirement age.  This is significant because it can boost your pension earnings more than you know.

In order to receive the best advice, you have to do a little calculating of your own.  The planner may ask when you plan to retire, whether you plan to move to another state, travel, pursue higher education, and what type of lifestyle you hope to maintain.

You also have to take into account your healthcare expenses.  For example, a city worker may have a healthcare plan such as Blue Cross/Blue Shield and GHI (Group Health Incorporated).  This type of insurance is worth approximately $12,000 a year and is a necessary component that can alleviate expenses resulting from ill health.

If you would like to calculate how much you will need for retirement, there are many online calculators you can use.  One is located at: How much you need to retire calculator

You simply enter your current annual income, 70% post-retirement income, expected annual pension, expected annual Social Security payment, current age, age at which you will retire, and life expectancy.  Note these are approximate figures.  The figure of 70% is the amount of your income that one would need to retire comfortably.

Once the calculations are made, you can then proceed to increase your pension contribution, if applicable, and/or begin a savings program outlined by your financial planner that will yield a high rate of interest and allow you to retire knowing there will always be money available to you.

If you are years away from retirement, calculating your pension income now will give you a clear and concise measure of what to expect.  Here is an example of an individual who did not plan well for retirement.  A man retired at age 57.  He contributed less than 10% to his pension and the result is that he now receives under $1000 a month.  Although he did consult a financial planner, the pressure of the job was such that he had to retire early for health reasons.  He is currently working full-time in another position.

Thanks,

Adam

How much money do you need to retire?

I found this short video from Terry Savage with a few tips on getting your “Savage” number - how much you need to retire.

She also provides a couple useful retirement planning links.

-Adam

Saving money for retirement can be easy or difficult depending on your current salary. If you are like 75 percent of the American population, earning just enough money in your current job to meet your monthly bills, then it’s time to do some serious thinking on how you are going to live when you retire.

Social Security isn’t going to meet all your monthly payments. That is, if Social Security, or some revised form of it, still exists when your day of retirement arrives.

Here are some tips on how to save today for your future. No matter how little, or how much, you earn today.

Estimate how much you must save to give you the income you know is necessary for you to retire in comfort.

Experts suggest that you will need an income equaling about 75 percent of your current take home pay. Be sure to estimate a rise in inflation which has historically been about 5.3 percent per year.

Figure out how much of your current salary will need have to save each year to achieve your retirement goal by counting backward from the year you plan to retire to see how many years you have before retirement. Include the possibility of being on a fixed income for as long as 20 or 30 years. Depending on how many years you have until retirement a U.S. Treasury bond that guarantees six percent interest might be considered, while stocks might have the potential for a much higher return, but has a much higher risk of loss.

A financial planner, stockbroker, or an accountant, can offer guidance, expertise and access to knowledge about almost any type of investment or retirement planning concerns.

Spread your money out over a variety of investments. Some will prosper while others may fail.

Set up an automatic draft from your bank account from your paycheck so that a portion of your income goes directly into your retirement funds. Pay off major debts, such as home mortgages, college loans and other significant cash-flow drains, as quickly as you can.

For more information visit: http://www.apluswriting.net/finance/retire.htm

Yahoo is banking that Internet users want online tools to manage their budgets, retirement, college plans, taxes, debts, investments and more personal finance matters.

Internet giant Yahoo has offered information and services aimed at investors for years, but now the taken the wraps off its new Yahoo Personal Finance Web site, aiming to provide everyday users with online financial tools and information to help them better manage many aspects of their money and investments.

Rather than attempting to offer an online ledger application, in which users would directly monitor accounts and transactions, Yahoo Personal Finance aims to provide a wealth of information, advice, guides, calculators, and other tools designed to help users get a hand on their money without getting into risky privacy territory.

“The goal of Yahoo Finance has always been to help our users make informed financial decisions, and now we’re able to do that across every aspect of their financial lives,” said Peggy White, Yahoo Finance’s general manager, in a statement.

“Not all of our users manage an investment portfolio, but we all manage a checkbook.

This presents a huge opportunity for Yahoo Finance to expand beyond our core investing-focused offerings.”

Features in Yahoo Personal Finance include more than five dozen calculators designed to help users get a handle on common scenarios like retirement planning and loan payments, as well as advice and guides covering topics from college planning, having children, tax planning, insurance, real estate, and more.

Yahoo Personal Finance has partnered with twenty-five content providers (including CNNMoney.com, Consumer Reports, The Motley Fool, Smart Money, and The Wall Street Journal) to provide top-notch material, and will also carry exclusive advice columns from thirteen financial exports, including a career advice column The Brazen Careerist by Penelope Trunk.

Of course, Yahoo wouldn’t be Yahoo if it didn’t tout the online advertising opportunities afforded by a personal finance site.

Their message to advertisers: if you want to reach consumers as they’re making important life decisions, buy an ad on Yahoo Personal Finance!



Yahoo Launches Personal Finance Site (DesignTechnica)

Yahoo is banking that Internet users want online tools to manage their budgets, retirement, college plans, taxes, debts, investments and more personal finance matters.

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