| |
| |
|
Personal Finance Information |
|
|
|
Retirement Income Needs---Less Than You Think?
It is widely written that you need 75% of your present income to maintain your present life-style in retirement. If you make 100 thousand now, figure 75 thousand in retirement. Fifty thousand now, figure 37.5 thousand in retirement. The average retirement income in the US is 27 thousand. See what you think after reading these ideas. Some really significant expenses you won't have in retirement: 1. Life insurance. Usually paid up by now or it has run its course. Also there is little need for it. No premiums to pay. 2. Mortgage payments. Houses are usually paid off by now. 3. Child-rearing expenses. A big one. Unless you got a really late start. 4. College costs. You saved for it and then paid for it over many years. See #3. 5. Work expenses. Transportation, clothing, lunches, etc. 6. Large house. Selling and moving into smaller digs can add significantly to your nest-egg and reduce expenses for taxes, maintenance, insurance and utilities. A reverse double whammy for this one. 7. Automobile expense. It/they should be paid off and might be used less. 8. Credit card payments. Most everybody has learned by this time not to have this debt. 9. Some people move to an area where the cost of living is very significantly lower. 10. Last and this is my favorite. You don't have to save for retirement anymore! Jot down a figure for each one and see what you get. These are some further considerations that might reduce your expenses. Where is it written that you won't want to change your life-style at all? After all as we get older our tastes change, often towards those activities that cost less and we appreciate simpler things. A walk on the beach or in the quiet woods, in the morning sun or even in a light rain can be as enjoyable as anything. Some of the best things in life really are free. A cold winter evening by a warm fire with a great book (free from the library), a visit with the grandchildren and pulling vine-ripened tomatoes from your own plants are more examples of inexpensive activities. Who needs a riotous evening in a nightclub or an expensive day at a casino? Linger over coffee and the newspaper in the morning, have breakfast with friends, take a little nap in the afternoon or day trips to attractions like museums, planetariums and nature exhibits. Aren't there things you always thought you might like to do and explore like writing, playing music, dancing, sports (non-contact) and crafts and hobbies? These need not cost a lot. Also remember you are free to take advantage of early-bird specials, two-for-one nights and eating out at lunchtime instead of dinner. These can save as much as half on restaurant bills. Don't forget senior citizen discounts, either. What might cost more now that you are older? Health care, of course. Putting these in table form: 1. Health insurance premiums. Mainly Medicare supplemental insurance. Figure 2000 dollars and up. 2. Prescription drug costs, both premiums for insurance and out of pocket expense. Most medications not yet off patent (have no generic) are 800 to 1200 dollars a year each. The arithmetic here is easy. 3. General out-of-pocket expense. 4. Long term care or nursing home care. Premiums for insurance if you elect to buy it, although the jury is still out on whether or not you should according to a leading consumer's magazine. The biggest expense of all is nursing home care if you have no insurance. People who have good support can often remain at home for a long time utilizing home care facilities, which costs a lot less. Naturally every situation is different. Hopefully these thoughts will help you in your calculations. If you add up all that you don't have to pay and what you can reasonably expect to pay and can avoid a long nursing home stay you may need less than you thought. A recent article in Money magazine had a good idea. During the last year before retirement, try to live on what you expect to have, pretend to be retired. If it is comfortable, you are probably good to go. Play music like you always wanted. Gain the knowledge you need to learn rapidly and cut out most of the practice drudgery. Dr. Moloney is a retired Family Practitioner with a lifelong interest in music and teaching. Empower yourself to take charge of your music learning by studying his E-book. http://www.musicsimplified.com/
MORE RESOURCES:
Personal-Finance - Google News |
|
|
|
RELATED ARTICLES
How Check 21 Affects You The Check 21 Law is the new federal law for financial institutions and has taken effect last October 28, 2004.Before the Check 21 law was enacted, your paper check had to be physically transported from where the check was paid out before it could be deposited to the financial institution. 10 Tips To Save Money When Dining Out Here are some tips that can help you save money when dining out. Keep in mind that these tips are intended to help you save money when dining out at a restaurant type setting. Is There A Retirement Crisis? When people speak about the increasing age expectancies, they generally do so with positive connotation. This author agrees-there's nothing wrong with living longer, especially if we can sustain our quality of life at each period throughout our lifespan. Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking Doesn't it seem like the only impressive numbers we've seen this summer are the digits on the thermostat and the unaffordable prices of homes? Real estate has been excruciatingly hot for the past few years, but getting in the market now puts you in the high-risk category for a heat stroke if the market decides to cool off this year.So if a real estate induced stroke doesn't appeal to you and the stock market's roller coaster ride gives you motion sickness, it's very likely that you as a health-conscious investor are sitting on a stash of cash collecting an anemic rate of interest. How to Save Money in a Grocery Store Now there are ways to save money in the grocery store, and they may or may not take much effort on your part to learn some great ways to save money. Your greater savings can often be found in the perishable departments of a grocery store. A Fresh Start for Family Finances in 2005 While 40% to 50% of us make New Year's resolutions on January 1-a ritual that has existed since ancient times-approximately 60% to 80% of us have already broken them by the end of February, according to researchers.It's still not too late, however, to reset the trajectory on your family's finances, experts note. Improve Your Professional Image Using Address Labels One of the simplest ways to improve your professional image is by using address labels. Self-adhesive business labels are THE way to go when it comes to a professional image. Can You Afford Not To Look After Your Personal Finances? Investing is a subject a lot of people don't want to think about. And there is good reason for that. Make or Break Your Retirement! The Prudential has dubbed those who refuse to leave home as "kippers" or "kids in parents' pockets eroding retirement savings". Recent research concludes 6. 10 Tips to Make Sure Your Financial Budget Will Succeed You've analyzed your past expenses, put them into spreadsheets, loaded Quicken with all of your data and come up with a budget. Now what? The tough part! You actually have to stick to your budget and put your plans into action. College Expenses: Seven Ways to Save on an Education Many people graduate from college owing thousands of dollars in student loans. It isn't uncommon for students to graduate owing $30,000 to $40,000. Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan For most of us the process of getting out of debt and pursuing a venture that would create an income stream leading to early retirement seems just a pipe dream. It goes without saying; it takes money to make money. If All Things Are Possible, Why Cant I Balance My Checkbook? For me, the most terrible time of each month is the day our bank statement comes. We commonly call it BSS (Bank Statement Syndrome). One Income Source Is Not Enough! My personal opinion is that in today's new economy, it is wise to have multiple income streams. Reliance on one income source poses a risk to individuals, entrepreneurs, and even large corporations. Financing Collectibles for Fun and Profit With the advent of the internet and especially auction services like those provided by Yahoo and E-bay, serious collectors have much larger arenas in which to buy and sell their wares. This provides the opportunity for quick discovery of hard-to-find items that previously might have taken years to find. Budgeting Tips to Save Real Money Sticking to a budget can be difficult, but with so many demands on your finances you have to be extra cautious. TV ads are constantly bombarding the airwaves with messages that you need to buy this or you must have that. Money Saving Tips. Maximize Savings on Everyday Items! Frugal living is more than a lifestyle. It's a passion. What Are We Teaching our 2005 Graduates about Money? Now that we are in the month of June I can't help but wonder if we have prepared our new graduates for the responsibility of managing and budgeting their money.I had a very interesting conversation with my God-son, a recent graduate from a local Los Angeles high school. UK Parents Inactivity Harming Their Children's Future University and Mortgage Savings The British government at the beginning of this year officially launched its Child Trust Fund (CTF) initiative in an effort to encourage parents and children to develop the savings habit and to teach children the value of saving their own money.Chancellor, Gordon Brown said, "The Child Trust Fund is designed to ensure that every child in our country has assets and wealth and that no child is left out and all children in Britain have a stake in the wealth of the nation". 7 Simple Ways To Save Money Each of us knows how to spend money, but do we really know how to save our money? No, I am not necessarily talking about setting aside funds for an investments purposes - a good thing - but saving money on everyday items. Here are seven simple ways you can save money:1.
|
| home | site map | Privacy Policy |
| © 2006 |
