Retirement Income Needs---Less Than You Think?
It is widely written that you need 75% of your present
income to maintain your present life-style in retirement. If
you make 100 thousand now, figure 75 thousand in
retirement. Fifty thousand now, figure 37.5 thousand in retirement. The
average retirement income in the US is 27 thousand. See what
you think after reading these ideas. Some really significant expenses you won't have in
retirement: 1. Life insurance. Usually paid up by now or it has run its
course. Also there is little need for it. No premiums to
pay. 2. Mortgage payments. Houses are usually paid off by now. 3. Child-rearing expenses. A big one. Unless you got a
really late start. 4. College costs. You saved for it and then paid for it
over many years. See #3. 5. Work expenses. Transportation, clothing, lunches, etc. 6. Large house. Selling and moving into smaller digs can
add significantly to your nest-egg and reduce expenses for
taxes, maintenance, insurance and utilities. A reverse
double whammy for this one. 7. Automobile expense. It/they should be paid off and might
be used less. 8. Credit card payments. Most everybody has learned by this
time not to have this debt. 9. Some people move to an area where the cost of living is
very significantly lower. 10. Last and this is my favorite. You don't have to save
for retirement anymore! Jot down a figure for each one and see what you get. These are some further considerations that might reduce your
expenses. Where is it written that you won't want to change
your life-style at all? After all as we get older our
tastes change, often towards those activities that cost less
and we appreciate simpler things. A walk on the beach or in the quiet woods, in the morning
sun or even in a light rain can be as enjoyable as anything.
Some of the best things in life really are free. A cold
winter evening by a warm fire with a great book (free from
the library), a visit with the grandchildren and pulling
vine-ripened tomatoes from your own plants are more examples
of inexpensive activities. Who needs a riotous evening in a
nightclub or an expensive day at a casino? Linger over coffee and the newspaper in the morning, have
breakfast with friends, take a little nap in the afternoon
or day trips to attractions like museums, planetariums and
nature exhibits. Aren't there things you always thought you
might like to do and explore like writing, playing music,
dancing, sports (non-contact) and crafts and hobbies? These
need not cost a lot. Also remember you are free to take advantage of early-bird
specials, two-for-one nights and eating out at lunchtime
instead of dinner. These can save as much as half on
restaurant bills. Don't forget senior citizen discounts,
either. What might cost more now that you are older? Health care, of
course. Putting these in table form: 1. Health insurance premiums. Mainly Medicare supplemental
insurance. Figure 2000 dollars and up. 2. Prescription drug costs, both premiums for insurance and
out of pocket expense. Most medications not yet off patent
(have no generic) are 800 to 1200 dollars a year each. The
arithmetic here is easy. 3. General out-of-pocket expense. 4. Long term care or nursing home care. Premiums for
insurance if you elect to buy it, although the jury is still
out on whether or not you should according to a leading
consumer's magazine. The biggest expense of all is nursing
home care if you have no insurance. People who have good
support can often remain at home for a long time utilizing
home care facilities, which costs a lot less. Naturally every situation is different. Hopefully these
thoughts will help you in your calculations. If you add up
all that you don't have to pay and what you can reasonably
expect to pay and can avoid a long nursing home stay you may
need less than you thought. A recent article in Money magazine had a good idea. During
the last year before retirement, try to live on what you
expect to have, pretend to be retired. If it is comfortable,
you are probably good to go. Play music like you always wanted. Gain the knowledge
you need to learn rapidly and cut out most of the practice
drudgery. Dr. Moloney is a retired Family Practitioner with
a lifelong interest in music and teaching.
Empower yourself to take charge of your music learning by
studying his E-book. http://www.musicsimplified.com/
Related News
|
 |
|
|
RELATED ARTICLES
Money Matters: Strengthen Your Marriage by Putting Finances in Order
Did you know that 43% of all married couples argue over money issues, making it the major reason couples fight? If you and your spouse handle money differently, now is the time to talk, establish expectations, and draw up a financial plan.
Whats The Truth Behind Your Finances?
Between 15 - 20% of people in our country (UK) own there own businesses. This statistic is on the rise thanks to the incredible invention of the Internet. The staggering truth is that of these only 5% are genuinely financially free! You may well see lots of expensive cars driving on our roads and big houses inhabited by the seemingly wealthy, but these houses and cars are not yet paid for.
Single Mother and Learning how to Save
Saving may seem easier if you were saving for a new car, or a vacation however when it comes to saving in general it may prove to be more challenging because you may not necessarily feel you are receiving a reward from it. However saving pays off, especially as a single mother. All you need to do is simply spend less than you make each month.
I Want to Buy a Home - Now What?
If you were to ask 100 women "What would you like to achieve financially?" Buying a home or apartment is usually one of the answers. Some women think that they can never own a home - which is not true! In fact, there are so many success stories of home buyers who never thought they would get there. In addition, homeowners tend to have greater financial success in the other areas of their finances life. I've seen it over and over.
Chex Systems ? Why Every American Needs To Guard His Checking Account With His Life
Most Americans have been brought up to be concerned about a good personal credit rating, because of the role a positive rating can play in your long term plans; purchasing a home, buying a car, getting a business loan, etc. They have also been made to understand that the premier organizations that pretty much hold the key to their financial futures are Equifax, TransUnion and Experian.
Identity Theft ? More Tips on How it Can Be Avoided
Recent security breaches at several credit card companies continue to worry Americans, as stolen financial information can lead to identity theft. Identity theft occurs when someone obtains your Social Security number and/or other vital information and uses it to pose as you. By doing so, they can take advantage of your good credit history to open new credit card accounts or obtain loans. They get to spend the money, but you get to pay the bills. It often takes a victim a year or more to even detect that he or she has been a victim of ID theft; clearing up the mess caused by an identity theft scam can take years and can harm you personal credit report indefinitely.
Bankruptcy Chapters Explained
Chapter 7
Debt Management ? Watch Out for Bank Fees!
During the last twenty years, banks have offered a number of improvements in the area of being customer-friendly. The old 9 AM ? 2 PM "banker's hours" are gone, replaced by a schedule that makes it easy for most people to visit when the bank is open. Automatic teller machines are ubiquitous, making it easier to obtain cash even when the banks are closed. And the debit card has made it easier than ever to pay for an item ? you don't even have to write a check anymore. Such conveniences come with a price, however, and banks are charging additional fees for all sorts of services. Some of them can be quite steep, and consumers should watch how they manage the money they have in the bank.
How To Free-Up 10% to 15% of Your Income
Would you be interested in freeing up 10% to 15% of your current income? Just imagine what you could do with this money. You could pay down your debts, increase your savings, or work toward that next important purchase that you have in mind. Wouldn't it be exciting to actually have money left over at the end of the month?
How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!
Despite how easy it is to balance a checkbook, very few people take the time to do it and the few who do, don't always do it the right way. If you write down in your checkbook ledger what should be deducted and added, you are on the right track ? if not, start there and follow these nine easy steps to a balanced checkbook. Once you are comfortable with these nine steps, it is possible to balance your checkbook each month within 30-45 minutes.
Save Money on your Clothing Budget. Tame the Closet Monster!
Reducing the clothing budget was a serious challenge for me. Two pre-teen girls and a teenage girl certainly didn't make life any easier. My son wasn't much of a challenge. Thank goodness, he's not "fashion conscious".
Personal Loans For Homeowners ? One Of The Numerous Rewards For Being A Homeowner
You no longer look at the pictures of homes cause you yourself bought one. Well, you know how you got that, it was a huge investment. Now that you are facing some financial issues and you are thinking of taking a loan to cope with monetary crisis. Taking loans is a growing phenomenon. And this has a lot to do with the changing configuration of the current economic scene. Monetary and fiscal requirement of the people have increased and in turn led to increase in loan borrowing. So, it is not exceptional that you are looking for loans. If you are a homeowner in the pursuit of personal loan, all I can say is "you are fortunate".
Banks Are More Than Just A Place To Park Your Money
If you've been to a shopping mall lately, you've probably
discovered two different banks within a few feet of each
other. Go inside the food store in that shopping plaza
and you'll see yet another one, just waiting to offer their
services to you. Now drive down the road a few blocks and
you'll probably see yet another bank on the corner. With
all the banks to choose from these days, it can be
too much. How do you know who is reputable and what will
serve your purposes?
Do You Know What Tomorrow Will Bring?
I've been sharing the following idea with people for a few years now, and realized recently that I had never written specifically about it. So here it is:
How To Place an Online Order for Checks ? It is Easy as 1-2-3
If You Have an Existing Account and 5 Minutes, You Can Place Your Online Order that Easy!
How to Save Money in a Grocery Store
Now there are ways to save money in the grocery store, and they may or may not take much effort on your part to learn some great ways to save money. Your greater savings can often be found in the perishable departments of a grocery store. The perishable departments are the bakery, meat, and produce departments. Looking at the grocery ads can also be of great assistance. Also, believe it or not something as simple as writing down a list can help you save money. I'll show you a few techniques that will help you save money.
UK Graduates Looking Short-Term At Their Long-Term Financial Responsibilities
With almost two thirds of university entrants from England and Wales who applied for maintenance grants for this year being unsuccessful, and the average graduate owing 13,501 when they leave, according to Barclays, combined with a survey by High Fliers Research showing that only 21% of students were confident of managing to enter a graduate-level job this year, it is not surprising that there is a feeling of gloom hanging over many UK university entrants.
Expenses A ? What Are They And What Can We Do About Them
It is crucial as an individual who is striving for financial freedom to be able to recognize the different type of expenses in our lives.
It is a proven theory that it is easier to cut your expense than trying to earn more income.
In order to maximize profits, a manager will try to minimize expenses before trying to gain more revenue.
And we can learn from that. By recognizing our expenses and ways to handle them, we will be able to create more revenue in our lives.
This article will help you to do that.
Top 10+ Ways to Jumpstart your New Year?s Finances!
Of course, these don't have to be done in any particular order!
Just pick one or two that particularly apply to your situation.
Your Dry Cleaner?s Double Standard
Women are charged more for dry cleaning services. Don't fume, find a better way. While it is true that the practice is unfair it is also true that we have options for keeping our clothes clean and holding onto more of our cash. Try some of these tactics to stem or stop the unfair flow of your dry cleaning dollars.
|
