You’ve been diligently building your retirement nest egg and you feel like your plan to retire in five more years is right on track. Nothing left to do but stay the course. Right? Not so fast. There are still several items to consider at this stage of your financial life cycle. To help eliminate the guess work, we’ve provided a list of items that you should begin to address to help further prepare you for retirement.
Money Management Resources
Here are six basic guidelines to keep in mind when developing your personal retirement strategy. Guideline #1: Pay Yourself First. Establish a dollar amount you can save comfortably every month. Always remember, you are entitled to keep a portion of what you earn.
Here are the key considerations for developing your retirement planning strategy: Retirement Benefits. Will your company still provide you (and your family) with health benefits when you retire? Or will you have to supplement your medical insurance needs when you're over 65? Could inadequate medical coverage wipe out your life savings in the event of health problems?
Here is an example of the benefit of saving on a pre-tax basis. Suppose your gross pay (before taxes) is $1,000 per week. You decide you want to save $50 per week, and you’re in a 25% federal tax bracket. If the $50 comes out of your paycheck after taxes have been taken out, you’ll…
Many people make mistakes in their retirement planning because they believe in one or more myths about retirement.
Retirement sources of income have often been compared to a three-legged stool. The first leg of that stool is Social Security. The second is your employer’s pension plan. And the third is your personal savings. Social Security Social Security was designed to provide a minimum level of support (subsistence level). That is why it’s also…
Retirement sources of income have often been compared to a three-legged stool. The first leg of the stool is Social Security. The second leg is your employer's retirement plan. And the third leg is your personal savings. How much you depend on the third leg depends on the strength of the other two. The strength of each leg may change, and then you'll need a new plan of action to reinforce the retirement stool.