It’s been a long haul, but you've come to that fork in the road where it's time to starting thinking
about finances and your new "retirement life!" What you need to make it a success is a
road map - a plan of action. You’ve always heard that you need to save for retirement. But
why hasn’t anyone ever told us what we need to do after we retire and start using the money we’ve saved? For
most of us the biggest question we have is “How can I make my retirement savings last?” Of
course, the answer is different for everyone and it starts with the retirement lifestyle you want to enjoy as a retiree. The
first step is creating a personalized retirement plan. Sounds complicated, however you don’t have to do it alone –
and it doesn’t have to cost you anything. First, evaluate Your Financial Situation. Consider all
of your assets and income. This includes pensions, employer sponsored retirement plans, Social Security benefits, IRAs, savings
etc. Next, consider your retirement goals. What type of retirement lifestyle do you envision for
yourself? Is traveling the country, the world, something you look forward to? Will you be relocating, selling
and buying a home? Do you have assets you want to leave to children, a spouse? Will you continue working full or part time? Next
find a company that can calculate how long your savings/income will last and much you can spend every month so you can enjoy
your retirement lifestyle goals.
. HOT
FINANCIAL TOPIC NOT SO HOME SWEET HOME....How you may
be giving crooks the keys to your
home without you even suspecting. Read more TOP 7 TAX
DEDUCTIONS FOR SENIORS Important tax deductions
to make retirement life easier. 1. Medical
and dental expenses. Medical expenses are often one of the largest expenses for retired people.
Fortunately, some medical expenses are deductible. These include health insurance premiums (including Medicare premiums),
long-term care insurance premiums, prescription drugs, nursing home care, and most other out-of-pocket heath
care expenses. Read entire article NEEDS VS WANTSFINANCIAL
HELP for RETIREMENT LIFE First,
be brutally honest about what your retirement income is, or will be. You can’t retire to a 2,000 square foot single family home in a sunny Florida or Arizona retirement community
with tons of amenities on a mobile home income
and not expect to have financial problems after retirement.
To make an accurate budget. Include
expenses like house payments or rent (typically your biggest expense), property and income taxes, food, utilities, gasoline,
clothing and personal care, health care, insurance etc. If you use a credit card, it should
be paid off every month to keep within budget.
These are items in your "Need" category. Determine your
needs first. If there is money in the budget left over, list your wants. If you are used to activities that are a bit on the
expensive side, like golf, look for retirement communities that offer special rates for residents (Sun City, AZ offers
a round of golf to its residents for as low as $16 for example).
Activities and hobbies are crucial
for mental well-being and healthy retirement lifestyles. If there is nothing in your budget and you don't live in a 55+
neighborhood that offers plenty of activities choose something that doesn't cost a lot.
Most of us already
have a camera so photography could be a good choice as an activity you might choose after retirement. Ride your bike, play
tennis at the local park or take walks. Do gardening, learn to cook, volunteer, start a collection of something you find interesting....be
creative.
Eat at home most of the time. You can save money if, for example, you buy
a cheap cut of beef like a chuck roast. Cook it until it's almost falling apart. Make a nice dinner with mashed potatoes and
a vegetable the first night. Then save the rest. That $10 roast will feed two for three days. (I usually make shredded
tacos, or a stir fry with the leftover meat and vegetables).
An easy way to do budgeting
is either take out the amount you can afford to spend on dining out, recreation, and even gas in cash. Or designate a
separate checking account to be used for extra spending each month. When you have spent your allotted amount, it's gone. Don't
take out more cash until the next month. Living on a budget doesn't mean you
can't ever go out to eat. We go to Costco for a hotdog, or share a chicken cesar salad sometimes. We also go to cheap chain
restaurants and share a meal, or buy from the dollar menu at fast food restaurants. We also pack picnic lunches and eat al
fresco sometimes.
Only when you have a realistic budget should you entertain finding the best place to live
after retirement....
 When you get to the step on where you
should spend your retirement life, make a list of the most important activities you
plan on continuing, or ones you would like to start. Most everything has a cost. Include those
costs in your budget too.
Are there a few, or more cities or towns you would like to consider? List them
in order of preference on your top five faves. Now, evaluate each city's attributes, and
liabilities that you are considering. Most experts that
write about the best places live after retirement consider things like cost of
living, tax rates, climate, shopping, dining and other amenities, cultural opportunities
(including professional sports) and other activities in the area to determine their choices.
Maybe you always wanted to take to the open road instead of planting yourself in a single location? It
sounds great, but sometimes the reality of living in cramped quarters is quite different than your
idealized version, and nothing like you expected. Rent an R.V. and live in it for two weeks
before you take the leap and buy a motor home or travel trailer. And remember, an RV won't
appreciate in value, it will depreciate. If you put a large part of your retirement nest
egg into a recreational vehicle, it will be worth considerably less within a few years.
Where you retire, and
how much you will be able to afford so you don't have stress over finances is a huge
decision you're going to make. It isn't just about sports and shopping. Related Article: 10 steps to a successful
retirement life. Read more Related Article: Personal Asset Protection.
Why you need it. Read more Related Article:
Caring for aging parents. Challenges and rewards. Read More Related Article:
Military Retirement Read More
 |
|
Early Retirement Live: How to make it a reality. Is it
for everyone? Read More
THE REAL COST LIVING The Government puts out a false cost of living index so they don't have to pay as much out in Social Security benefits
and other expenses. Find out why your income is getting less bang for the buck. More (If the site is down for repairs and updating, try again later.) 2013 Financial Retirement Challenges
In a recent study
it was discovered that there is a sharply elevated feeling of insecurity about retirement. Over 1,000 seniors
were interviewed and half of them indicated they had already experienced issues with unforeseen costs above $6,500 that forced
them to change their retirement life plans. Worse, only about half of those polled had a contingency plan. These setbacks are often neglected when budgeting for retirement. In fact, only 1 in 4 seniors
felt confident that they would have the financial capability to live out their retirement plans if unforeseen problems arose. Today retirement is increasingly more unstable and unpredictable than ever as the responsibility has shifted from
pensions and retiree health insurance to the individual. Individuals close to, or already in retirement are advised to anticipate
and prepare for unpredicted events that could happen so they can continue the lifestyle they planned. That
said, there are certain retirement challenges that occur more commonly and must be anticipated in your retirement plans. 1. Declining or stagnant income. Stocks fluctuate, investments lose money and social security doesn’t keep
up with inflation for example. Your pension could be lost, or pay less than you calculated. 2 You
or your partner could face a catastrophic illness or disability
3. You could encounter
the loss of your health insurance or most probably have to deal with the escalation of healthcare costs today. 4. Death of a spouse 5. As we age, there are greater demands for
caregiving so long-term health care costs are a potential issue that needs to be addressed. Individuals
who can sail through these potential pitfalls seem to have these things in common: First
they gather information about the economy, insurance, cost of living, and other probabilities they might encounter. They focus on the future and discuss it with their spouse/partner. This step helps them become self-reliant as they
anticipate what could happen so problems can be averted. A good way to start that conversation is engaging in the ‘what
if’ scenarios. Then they talk to professionals to help them prepare. They
put pencil to paper and make budgets that include current and future plans and live by strict personal financial rules. Then they get their house in order (put all of their important paperwork together, get rid of things they don’t
need, and more.)
TOP ARTICLES IN THE NEWS TODAY....
Financial help on where to retire for couples with annual incomes under $29.000 per year Auburn Alabama The median household income in this city is $21,630, about
$6,000 less than a couple who each receives the average Social Security check would earn. The home of Auburn University has
mild winters, hot summers, and plenty of outdoor recreation opportunities. Blacksburg,
VA Residents of Blacksburg earn a median of $26,792 annually, but there are plenty of affordable
amenities. This mountain town is located between the Blue Ridge and Allegheny Mountains and offers access to the Appalachian
Trail, Jefferson National Forest, and Virginia Polytechnic Institute and State University. Murray, KY With a median income of $27,842, Murray boasts affordable
housing, Murray State University, and the nearby Land Between the Lakes National Recreational Area. For a low cost of living,
you’ll get access to a variety of museums, festivals, and galleries Sunland
Park, N.M. Residents of this small city at the base of Mt. Cristo Rey earn a median of $23,225 annually.
The Sunland Park Racetrack and Casino is a major attraction in this southern locale near the Rio Grande, which is just eight
miles from El Paso, Texas.
State College, PA The
home of Pennsylvania State University has a low cost of living coupled with a high quality of life. Although the median income
is $23,800, the city is filled with restaurants and historic sites, and there are opportunities for hiking and cycling just
outside of town.
|
|
WHAT CAN YOU AFFORD? A PRACTICAL ANALYSIS OF RENT VS BUY . Which is better for you?
HAVE A FAVORITE PLACE, a special spot where you spent
memorable family vacations over the years and want to live out your retirement, then leave it to your kids so they can continue
the tradition. A place where they can remember all the good times you shared together when they were growing up?....PROS AND CONS OF CHOOSING THE VACATION
RETIREMENT OF YOUR DREAMS. Read more
ATTORNEY'S ADVICE - NO CHARGE Read this and make a copy for your files
in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following
out to the employees in his company: 1. Do not sign the back of your credit cards. Instead, put
'PHOTO ID REQUIRED.' 2. When you are writing checks to pay on your credit card accounts, DO NOT put the ...complete
account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number,
and anyone who might be handling your check as it passes through all the check processing channels won't have access to it. 3.
Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address.
If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it
is necessary. But if you have It printed, anyone can get it. 4. Place the contents of your wallet on
photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the
account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. I also
carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed
on us in stealing a Name, address, Social Security number, credit cards… Unfortunately, I,
an attorney, have firsthand knowledge because my wallet was stolen last month. Within a week, the thieves ordered an expensive
monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received
a PIN number from DMV to change my driving record information online, and more. But here's some critical
information to limit the damage in case this happens to you or someone you know: 5. We have been told
we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so
you know whom to call. Keep those where you can find them. 6.. File a police report immediately in
the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is
a first step toward an investigation (if there ever is one). But here's what is perhaps most important
of all: (I never even thought to do this.) 7. Call the 3 national credit reporting organizations
immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of
doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The
alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to
authorize new credit. By the time I was advised to do this, almost two weeks after the theft, all the damage had been
done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing
the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned
it in). It seems to have stopped them dead in their tracks. Now, here are the numbers you always need
to contact about your wallet, if it has been stolen: 1.) Equifax: 1-800-525-62851-800-525-6285 2.)
Experian (formerly TRW): 1-888-397-3742 1-888-397-3742 3.) Trans Union : 1-800-680 7289 1-800-680
7289 4.) Social Security Administration (fraud line): 1-800-269-0271 1-800-269-0271 We
pass along jokes on the Internet; we pass along just about everything. If you are willing to pass this information along,
it could really help someone that you care about.
RETIREMENT LIFE ON A BUDGET Enjoying life after retirement on a budget made easy. First, look in small towns across the United States where you
can purchase homes under $90k, or rent a home or apartment under $500 a month. A cheap place to retire should have basic
amenities like a movie theatre, shopping for your basic needs and to offset the fact that there are few other amenities it
should offer the opportunity to enjoy nature's beauty with outdoor activities you can participate in like walking, biking,
fishing, etc.
Smaller cities in Midwestern and some Southwestern states are a better choice because
they are consistently more affordable than coastal states and often rank high in best places to retire studies. more
.
TOO MANY CHOICES? If you find yourself with more than a few cities and towns you are considering, which is common, make a top
five faves list in order of preference. Now, evaluate each city's attributes, and liabilities. Read more on what
the experts look for here...
ROLLING STONE Many people say they
have always wanted to take to the open road instead of planting themselves in a single location when they retire. This
retirement life choice sounds exciting, but sometimes the reality of living in cramped quarters is quite different than
your idealized version of traveling across the country and nothing like you expected. And these chow hounds really eat up
the gas!
Still think spending your golden years on the road might be for you? Start by taking a baby
step and rent an R.V. Live in it for two weeks or longer if possible before you take the leap and buy a motor home or
travel trailer. And remember, an RV won't appreciate
in value, it will depreciate. If you put a large part of your retirement nest egg into a recreational vehicle, it will be
worth considerably less within a few years.
|