Developing Strategies to Deal with Uncle Sam Post Retirement

By Anna D. Banks, GCDF

Retirement is entirely a different and new chapter of life; some accept it with a smile where as some handle it with lot of stress. A well-planned retirement could get back your smile, and also enable you to enjoy all that which you missed while slogging for your family. Retirement planning can be sometimes quite complicated and one should be very careful and patient while planning for it. Even if your retirement plans are clear set with all your visions and goals in place, it is your financial requirement that will determine the success of the plan. A large percentage of Americans recognize the retirement systems and its undergoing changes but they are not planning well enough to retire comfortably.

• A Retirement Confidence Survey finds that the government regularly changes pension plans and the workers have been experiencing a severe decline in the retirement benefits, but they are not working towards it constructively. Nearly 2 in every 5 workers have not done anything to tackle this issue.

• Some workers depend on the employer provided retirement benefits and they expect that their spouse will receive income from such retirement plans.

• Half of the workers save for retirement, excluding the value of the primary residence. Majority of workers put aside some money for retirement.

• Health care for future retirees will be a huge burden especially with post-retirement financial problems. Workers should understand the use of Medicare and accumulate enough money to even cover the insurance and health costs they would likely face after retirement.

Americans are confident about the way they would spend their post retirement years. A few simple and easy planning strategies could bring order in Uncle Sam’s post retirement years. So get started with some regular saving plan. Developing a savings plan is not very difficult.

Simple strategies can put Uncle Sam on a comfortable and financially secured track.

• Goals- Start saving for either your children’s education, a comfortable retirement life or for financial emergencies. Figure out what life would be after 10, 20 or 30 years and then think of the costs and the number of years needed to save enough for it.

• Investing- Figure out the right time to start investing and please don’t get distracted. The best way would be to put aside some amount on monthly saving basis, save right from reducing your monthly expense bill to your telephone bill. If you can then invest to reach your goals. Don’t ever abandon your pre-retirement planning.

• Savings to match goals- This would depend on your needs and how much time you have to reach your goals, your ability to tolerate risk etc. Start by learning the key characteristics of each goal and then narrow your selection to savings as well as investment products. Selecting the right product can help you accomplish your goal.

However, if you decide what you want in life and how you wish to achieve it, it will sort out half your problem. This will help you in your planning and in choosing products to aid you.

© 2008 Anna D. Banks, GCDF
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Author's Note:
Do you have any questions about career development or lifestyle changes for Baby Boomers, which you think others, like you, would want to know the answers? Post a comment or email your questions to me at Anna@AnnaBanks.com.

Attaining Fiscal Fitness After Fifty

By Anna Banks, GCDF

Body Fiscal fitness is crucial for a person´s survival due to the ever-increasing cost of living. Attaining fiscal fitness is extremely important for people in their fifties as they prepare themselves financially to spend their lives after retirement in comfort. Failing to develop saving habits right from the time you got your first paycheck may drain your finances. It is very obvious why you need to start saving from the very first day. Longevity is on the rise, thanks to advanced medical science and your retirement life may be a lot more than your work life. In addition, the cost of living grows by the day and chances are that the cost of living will double over the years. You need to therefore sock away every dollar you can so that you don´t have to compromise heavily post retirement.

If you are one of those many people who failed to save wisely in the early period of their work life, don´t panic. You may have spent most of your money due to job loss, death in the family, divorce, disability or any other reason. Now is the time to take action and raise the funds to head towards a comfy retirement. While it is expected logically to put aside ten percent of your income every month when you begin to work, those in their fifties and failed to save must start saving at least twenty percent or more. Then there are "catch-up contributions´ that enable fifty plus employees to contribute a lot more than their younger counterparts to 401(k) and IRA annually. Check with your financial advisor to see how you can these to your advantage.

Another way to beat retirement woes is to postpone retirement. Extended retirements not only help you to save more but also take care of your immediate financial retirements. Besides, companies need senior employees who can play a pivotal role in shaping their company with their experience and knowledge. Most baby boomers choose to work as long they as they are physically fit. As a result, many people continue to work and share their expertise until they hit late seventies. For many, this is the time to try a new career, something that they always wanted to pursue. Part time work opportunities are readily available today and if you are an expert in your chosen field, your previous company may love to have you in their organization as a part time consultant. Many people have also managed to transform their hobbies into a booming business post retirement. It´s the joy of reinventing yourself that keeps you going when you are in your golden years.

If you are presently living in a city that´s known for its high cost of living, you may consider affordable alternatives to relocate after retirement. This will automatically boost your financial position and ensure fiscal fitness during old age. Relocation is a great choice for people who have built sufficient equity in their home but lack the savings to sustain retirement costs.

Diligent planning takes away the financial burden and allows you to enjoy a truly fulfilling life in your golden years.

© 2008 Anna D. Banks, GCDF
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Author's Note:
Do you have any questions about career development or lifestyle changes for Baby Boomers, which you think others, like you, would want to know the answers? Email your questions to me at Anna@AnnaBanks.com.