When it comes to retirement, it is difficult to predict what will happen. The economy is always changing, which means it is hard to know how much money is enough and how you should prepare. Here are a few ideas to get your feet planted…
If your employer is offering a retirement plan, it is almost always a good idea to participate in this. Many plans allow employees to contribute pre-tax dollars and some employers even match contributions up to a certain percentage.
As you choose an investment mix for your retirement plan, consider your tolerance for risk and the length of time you have until retirement. If you do not have a lot of time until retirement, you may want to steer clear of more aggressive investments, which tend to be more volatile.
Remember that traditional IRA contributions may be tax-deductible. For the 2001 tax year, the modified adjusted gross income deductibility threshold for active participants in an employer-sponsored retirement plan ranges from $33,000 - $43,000 for single filers and $53,000-$63,000 for a married couple filing jointly. If you are not participating in an employer-sponsored retirement plan, 100% of contributions are deductible. If you are not able to deduct a Traditional IRA contribution, consider a Roth IRA. With the Roth, income grows tax-free.
If at all possible, try to avoid withdrawals from your retirement account. For example, if you are changing jobs, roll your 401k (or other pension plan) directly into a Conduit IRA. This type of IRA will maintain your plan's tax-deferred status and allow it to be rolled over to a future employer's plan.
IRA contributions for a tax year that are made any time before April 15 of the following year may still be deductible on the previous year's return. Talk to a tax advisor for more information.
There are plenty of things to think over when it comes to retirement, but make sure to keep these ideas fresh in your head. Retirement will creep up on you faster than you think, so it’s best to be ready for whatever it may throw at you.
Showing posts with label after retirement. Show all posts
Showing posts with label after retirement. Show all posts
Wednesday, December 27, 2006
Choosing a Place to Retire
Placement is one of the most important things when retiring. Distance from family, neighborhood, finances, etc. all come into play when considering your retirement location.
When house hunting for the best place to retire, don't worry about finding your dream home right away. You can always trade up later. If you have benefited from the real estate boom in your first home, you can easily put your equity to work in a second place to retire. Or you can trade down to a smaller home.
Looking for the best place to retire means the best place for you. When contemplating retirement locations, consider factors like taxes, median home price, the local night life, sports teams, golf courses, culture, educational opportunities, crime rates and the overall environment.
Also, keep in mind the distance from friends and family. If you have new grandchildren, you may not want to move clear across the country. Remember, unlike some professional athletes, you're only going to retire once. So make the best choices the first time.
Your search for the best place to retire might include a factor your parents never considered: work. A recent study found that 70 percent of those 45 and older plan to continue working in their "retirement" years, another survey found that the number may be as high as 80 percent. Surprisingly, the pure enjoyment of work or a desire to try something new are significant considerations for choosing retirement locations.
One interesting trend among people looking for the best place to retire is to choose retirement places with appealing cultural and recreational lifestyles, then looking for ways to earn a living there. Some who make this jump end up telecommuting, starting a small business, or working part-time.
The best place to retire for you might be a college town. Many of those wondering where to retire were in college from the middle 1960s into the early '70s and so a college or university areas can be good retirement places. In addition, universities generate jobs and lend a youthful vibe. And they often come with arts centers, medical facilities, and good restaurants.
When house hunting for the best place to retire, don't worry about finding your dream home right away. You can always trade up later. If you have benefited from the real estate boom in your first home, you can easily put your equity to work in a second place to retire. Or you can trade down to a smaller home.
Looking for the best place to retire means the best place for you. When contemplating retirement locations, consider factors like taxes, median home price, the local night life, sports teams, golf courses, culture, educational opportunities, crime rates and the overall environment.
Also, keep in mind the distance from friends and family. If you have new grandchildren, you may not want to move clear across the country. Remember, unlike some professional athletes, you're only going to retire once. So make the best choices the first time.
Your search for the best place to retire might include a factor your parents never considered: work. A recent study found that 70 percent of those 45 and older plan to continue working in their "retirement" years, another survey found that the number may be as high as 80 percent. Surprisingly, the pure enjoyment of work or a desire to try something new are significant considerations for choosing retirement locations.
One interesting trend among people looking for the best place to retire is to choose retirement places with appealing cultural and recreational lifestyles, then looking for ways to earn a living there. Some who make this jump end up telecommuting, starting a small business, or working part-time.
The best place to retire for you might be a college town. Many of those wondering where to retire were in college from the middle 1960s into the early '70s and so a college or university areas can be good retirement places. In addition, universities generate jobs and lend a youthful vibe. And they often come with arts centers, medical facilities, and good restaurants.
Getting Ready to Retire
There are countless strategies that to improve the quality of your retirement. However, there are some essentials to keep in mind as you approach and endeavor on your retirement. This is a time full of opportunities…here are some ideas to maximize your satisfaction.
Pump up your retirement savings by increasing your contributions to your 401(k). New contribution limits let you stash more dollars in your qualified plan than ever before. You find in the long run, you will not regret this.
Save automatically by setting up automatic deposits to a mutual fund or IRA. When you get a raise, consider directing all or part of it to your retirements savings. This will prevent the money ever from passing through your hands or your wallet, which will limit spending on extraneous things.
Take the time to think through your investment strategy. What will be the right investment mix for you once you are retired? What is your current investment mix? It never hurt to take the opportunity to rethink your financial strategies.
Review your life insurance coverage and consider long-term care protection. You may think it seems a long way off now, but preparing now could save you thousands later and give you the ability to choose your own care. This will ensure not only saved money, but saved stress on yourself and family members in the future.
Take this opportunity to be a little selfish. If you have the funds, go on a vacation or take a course you’ve always wanted. Sure, you can still help out with your grandchildren’s college fund, but make sure there is a little left over for your own enjoyment.
Determine the impact of early retirement on your retirement benefits from your employer’s plan. Learn the difference between taking out a lump sum payment and income for life. This is a situation where you might want professional advice.
Finally, don’t let a new car or an extravagant vacation lure you off course. Make your retirement a priority before you get there, and you’ll find that you will have more money to spend on all the things you want later in life. Waiting will pay off!
Pump up your retirement savings by increasing your contributions to your 401(k). New contribution limits let you stash more dollars in your qualified plan than ever before. You find in the long run, you will not regret this.
Save automatically by setting up automatic deposits to a mutual fund or IRA. When you get a raise, consider directing all or part of it to your retirements savings. This will prevent the money ever from passing through your hands or your wallet, which will limit spending on extraneous things.
Take the time to think through your investment strategy. What will be the right investment mix for you once you are retired? What is your current investment mix? It never hurt to take the opportunity to rethink your financial strategies.
Review your life insurance coverage and consider long-term care protection. You may think it seems a long way off now, but preparing now could save you thousands later and give you the ability to choose your own care. This will ensure not only saved money, but saved stress on yourself and family members in the future.
Take this opportunity to be a little selfish. If you have the funds, go on a vacation or take a course you’ve always wanted. Sure, you can still help out with your grandchildren’s college fund, but make sure there is a little left over for your own enjoyment.
Determine the impact of early retirement on your retirement benefits from your employer’s plan. Learn the difference between taking out a lump sum payment and income for life. This is a situation where you might want professional advice.
Finally, don’t let a new car or an extravagant vacation lure you off course. Make your retirement a priority before you get there, and you’ll find that you will have more money to spend on all the things you want later in life. Waiting will pay off!
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