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What You Need to Know before You Consider Retirement, Even When the Economy Is Weak iahk by Terry Clark - HTML preview

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What You Need to Know Before You Consider Retirement, Even When the Economy Is Weak.




"How to Put Everything In Order, When You Exit the Door - Forever!"...



by Terry Clark





Table of Content


1. What is a 401(k) plan?

2. The Benefits of Continuing Care Retirement Community

3. Early Retirement: What You Should Know

4. Financial Planning for Retirement: For Worry-Free Retirement

5. How to Make Hard Decisions About Your Seniors

6. Plan your Retirement in as easy as 1 – 2 – 3 Using Financial Planning Software

7. Health and Retirement

8. How to build retirement security

9. The style, Why, when, where, how to retire

10. Individual Retirement Arrangement

11. Military Retirement: When Services Really Pay

12. Preparing for Your Golden years

13. What is Public Employees' Retirement System?

14. Planning for Retirement Activities

15. Should You Retire?

16. To will or not to will, Do’s and Don’ts in making a will

17. Celebrating Your Golden Years with Family

18. Retirement Annuity

19. Retirement Benefit

20. The Advantages of Retirement Calculators

21. The Right Retirement Community

22. Retirement Funds: How to Get Started

23. Retirement Gifts

24.Helpful Tips in Finding the Right Retirement Home for You

25. 7 Ways to Boost Your Retirement Income

26. Investing Upon Retirement

27. Why People Never Grow Old with Retirement Jobs

28. Know the Right Retirement Location for You

29. Ideas for a Retirement Party

30. Retirement Planning Consultant Services

31. Retirement Planning Services

32. The Ups and Downs of Retirement

33. Save for Your Retirement Today

34. A Retiree’s Haven Abroad

35. A Guide to Secure your Retirement

36. Factors Affecting Retirement Benefits from Social Security

37. What You Need to Know About Teacher Retirement

38. The Time to Retire

39. Looking for Retirement Paradise

40. Life Begins With Retirement

41. Not Willing to Leave Just Yet

42. Tax Implications of Retirement Accounts

43. Is The Reverse Mortgage Too Good To Be True?

44. 'The Wealthy Barber' - a Beginners Guide to Wealth Building 

45. Start Investing Early in Your Career

46. Investing - What's the Rule of 72?

47. Your Retirement... Will it be Fact or Fiction?

48. A Common Mistake with Retirement Planning

49. How to Magnify 401(k) Retirement Account Returns

50. Lifelong Learning Keeps You Young





What is a 401(k) plan?



The 401(k) retirement plan is funded by employee contribution and a matching employer contribution. The major feature of the plan is that the contributions are taken from pre-taxed salary. The fund accumulates tax-free until it is withdrawn. Most businesses and tax-exempt organizations can create these retirement plans.


The 401(k) takes its name from the IRC (Internal Revenue Code) of 1978. The operation of the 401(k) is administered by the EBSA (Employee Benefits Security Administration) of the Department of Labor.


The 401(k) plan has a lot of advantages. First and foremost is that the employee can contribute pre-tax money that reduces the tax paid in each paycheck.  Also, the company contribution and any growth in the fund is free of tax until withdrawn.


The compounding of the fund during a 20 to 30 year period is quite amazing. The employee has a lot of control in the direction of the future contributions. When the company matches your contributions, it adds something extra on top of your own money. All money in the plan can be moved from one company to another unlike pension.


The 401(k) plan is protected by pension laws since it is a personal investment plan. It includes protection from garnishment by creditors but not from domestic cases that include child support.


There are some disadvantages in the 401(k) plan, it is hard to get your 401(k) contributions before age 60 (59 1/2 to be exact). The 401(k) is not insured by the PBGC (Pension Benefit Guaranty Corp). Also, the company contributions do not kick in until a certain number of years of service have been given. The rules state that company matching contributions must either be a 3 year 'cliff' plan (100 percent after 3 years) or a 6-year 'graded' plan.


Employees participating in a 401(k) plan have many options for investment. In most cases a listing of mutual funds. The mutual funds usually include money market fund, treasuries, stock funds and bond funds. Some plans may include investing in company stock and US Savings Bonds. The employee gets to choose how the savings is invested. The employee can also choose at any time to stop contributions.


Financial advisers usually say that the average 401(k) contributor is non-aggressive in terms of their investment options. Stocks have historically outperformed other types of investment, since the 401(k) is a long term investment it should be able to minimize the stock fluctuations.



The Benefits of Continuing Care Retirement Community


People nowadays have already realized the importance of saving for the future, especially for their retirement. This is because when they reach their retirement age, all they have to do is to relax and enjoy life together with the financial benefits that they themselves have tried to save little by little.


That is why, when it comes to retirement and the benefits that can be derived from it, people should take the matter seriously.


Because of the growing trend in retirement issues and programs, one area of retirement is gradually taking the limelight. This is known as the continuing care retirement community or the CCRCs.


Continuing Care Retirement Communities are consistently gaining some recognition because of the features and benefits that retirees get from them.


To know more of the CCRC, here is a list of the benefits that a retiree can derive from them:


1. Continuing Care Retirement Community provides various housing projects and selection for their members. With a wide variety of choices, people are opting to choose a house that will correspond to their lifestyle and personality.


These housing privileges are not just mere housing projects, in which likes of them are usually made from low-quality materials. However, those that were provided by CCRC, the houses are surely apt for the family. In addition, these are, indeed, low cost houses.


2. The CCRC also offers optimum security, specialized services, and support to their residents. In this way, people who live in the area have peace of mind because they are surrounded by tranquil setting.


Moreover, in CCRC, people are entitled to enjoy three stages of care made available within the context of the Continuing Care Retirement Community.


3. The CCRC have programs that are always available (round-the-clock) to their customers. This means that the residents or their customers can readily avail the services that they need, in which all of the services are all focused on the well-being and health of the people.


No wonder why more and more retirees are aiming to obtain their new homes from the CCRC. Surveys show that approximately 625,000 elderly people are planning to have their own houses through this program.


4. The agreements stipulated therein are all stated in the contract. That is why retirees are more than secure because they will know that the things that they have worked for will not just go to waste.


CCRC is another way of enjoying life’s simple pleasures after working so hard all their lives.



Early Retirement: What You Should Know


For many reasons, more and more people are opting to retire at an early age. The growing trend for the retirement is based on the fact that people are enticed to retire early than continue working and wait until they reach their retirement age of 65.


In fact, most of the surveys conducted in the United States asserted that 60% of the respondents would love to retire at an early age.


In reality, there are many benefits that people can derive when they retire early. However, there are also many consequences that result from early retirement. What they do not know is that early retirement has the potential of bringing more problems than reaping in benefits and advantages.


Here is a list of some of the reasons why retiring early can be a pretty risky activity.


1. Not in accordance with the regulations of Social Security


When people will retire at an early age, there is a great possibility that they cannot immediately obtain their Social Security benefits. This is because according to the rules and regulations of Social Security, anyone who is born after 1938 will have to wait longer than their retirement age of 65 before they can get their benefits.


Hence, early retirement may only contribute to a negative upshot if the older people’s finances where not managed properly and the only thing they expect to help them are the Social Security benefits they can get.


2. If people who took early retirement get sick, they cannot acquire some Medicare benefits.


This is because the age when people can get their Medicare benefits is when they already turn 65. Hence, if they are hospitalized and they have already filed for their early retirement, they have to obtain the necessary amount of money in order to cover the expenses in the hospital without Medicare.


3. Penalty charges apply to those who retired early and had withdrawn their IRAs early.


For people who would like to retire at an early age and wish to obtain their IRAs, they have to face a hefty 10% penalty charge.


Moreover, experts contend that the nest egg of people who wish to retire early is only 80% of what they should be getting when they retire at the age of 65.


The bottom line is that early retirement is, indeed, a personal choice and preference of an individual but one must consider the factors that may affect their life in the end.



Financial Planning for Retirement: For Worry-Free Retirement


Planning can be a tedious activity especially if you are planning for retirement. Many people realize how advantageous financial planning for retirement can be while others find it mysterious.


In fact, most experts say that for people who are only making enough money to make due payments in each month, then it means that they should start contemplating on how they can still make money even if they are already retired.


Surveys show that almost 75% of the American population is earning enough money to pay their monthly bills. This means that they do not have any extra money to put in a bank or in any financial institution that could provide them enough profit after their retirement.


What's more Social Security is not enough guaranteed income for retired people to live on.  Actually, it is still a big question if one’s Social Security will still exist when the retirement day comes.


Hence, it is extremely important to generate some methods that will provide an individual a reasonable amount of money in the future. This should be done regardless of how much an individual earns, the important thing is to start saving today.


1. Visualize and calculate


It is important for a person to visualize his or her own situation after retirement. Then, you can calculate how much money is needed to live on after retirement.  Furthermore, people need earnings that compensate 75% of the present amount that he or she is expected to take home.


2. It is important to seek the help of a financial planner or any person competent in financial planning.


By asking for advice from the experts, you will be able to gain more knowledge know how to proceed for you situation. These people are proficient and knowledgeable in all kinds of financial planning and they can provide the most feasible and workable approach for your individual needs.


3. Get rid of loans, debts, and other financial obligations in as little time as possible.


By simply paying off all debts, loans, and other financial obligations in a shorter period of time, you can realize a substantial amount to invest for that retirement.  A good financial planner will know exactly how to direct you so you can meet your retirement goals.



How to Make Hard Decisions About Your Seniors