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Retirement Planning |
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"Are you planning for your retirement? Consult your financial advisor!"
How often have you heard this question, and just how often have you asked yourself—is retirement planning only about financial planning? You are not alone. Like you, thousands of retirees, all over the US, are probably asking themselves the same question. And, this is just the right question that you should ask before you start your retirement planning.
Well, it has to be admitted that planning your finances, being aware of your insurance details and social security benefits, and being aware about the real estate scenario is a vital part of retirement planning. Of course, you need to consult your financial advisor but you may want to do your homework before you do that.
Retirement also means adjusting to a new lifestyle. If you are an active adult, you may even like to catch up on some globe trotting after you retire, or follow the popular trend of the new generation of retirees and take up a second career! Retirement is the time when you need to be more aware of your health and personal safety. You may even want to relocate to a different location and get to be a part of a whole new community.
For many, "retirement" may be synonymous with "cost cutting." But cost cutting doesn't have to be the end of the world. The fact is, you can retire and still have a lot of fun. All you need to know is, how and where to save, which is not all that difficult. You can go on discount cruises, take up a retirement hobby, catch up with friends and family, join community service and enjoy your life like never before. Retirement opens up a whole new world of possibilities and what's great about all this is—it's all your choice.
So, what you need is a one stop solution for retirement lifestyle advice and not just financial advice. A site like FutureYears offers you retirement solutions that cover a broad spectrum of topics-- from insurance to travel, from social security to careers, from real estate to great retirement locations and a lot more. If you are planning your retirement, we suggest that you check the retirement solutions offered at FutureYears.
FutureYears offers you advice on the following topics:
Here's a brief overview of what's in store for the knowledge-seekers at FutureYears:
Finances
We have already mentioned that retirement planning is not all about financial planning, but then again, planning your financesis the most important part of retirement planning. Always remember, your social security earnings will not take care of all your retirement worries. You need to save and invest wisely for your retirement nest egg. You need to create an investment portfolio for yourself. An investment portfolio is a combination of investments by an organization or an individual; you need to be aware of various investment options like real estate, IRAs, annuities and REITs.
Consult your financial advisor and make sure you have multiple investments—the idea is not to put all your eggs in one basket. This will take care of disasters like sudden crashes at the Dow Jones. Dealing with stocks may be a great way to grow your wealth but they can be risky too. A sudden crash in the stock market can financially ruin you in a matter of seconds. This may not be an ideal situation to be in, after you have retired. It is advisable to consult a financial advisor before you invest your valuable dollars. Financial planning, however, is a concept that goes beyond choosing an advisor and investing diversely. When it comes to finances, you can never overrule the issue of financial fraud. Stay cautious while choosing an advisor and verify his/her credentials thoroughly. Keep a track of your debit and credit transactions.
There is also the option of "offshore finances." This may seem tempting but then you need to know how to manage your offshore finances. It's better to be practical. Have you ever thought about how you would make your investment decisions in case you lose your spouse? Planning your finances may be a time consuming task, but it needs to be done carefully and in as foolproof a manner as possible—especially, if you are planning to do your retirement planning on your own. We at FutureYears have thought of all these and have come up with some great suggestions that will help you do your financial planning effectively and efficiently.
Insurance
To many, the term "insurance" stands for "security" and this is true. Imagine owning a home and not getting it insured against disasters like fires and earthquakes! Or, imagine not having any health insurance. Life would have been an unending worry and a constant fear of "what if..." It is true that you have to pay insurance premiums, but then these insurance premiums help to get valuable insurance coverage in times of calamities, accidents, illnesses and disasters. Insurance premiums are the investments that are made for one's own security and comfort, as well as for the security of loved ones.
It is often when insurance policy holders lose out on the benefits of their insurance coverage only because they were not clear about their insurance policy. This is a very common experience and one that can be avoided easily. At FutureYears, we have offered you guidance about health insurance, travel insurance, homeowner's insurance and Medicare. Your insurance premiums differ based on factors like your age, the period (time span) of the insurance and the insurance coverage that that particular insurance policy has to offer. In case you have queries or concerns regarding you insurance policy, never hesitate to consult your insurance advisor or the customer service department of the insurance company.
Real Estate
Real estate is considered as one of the main sources of retirement investments. While social security benefits should not be your only source of retirement income, you must err on the side of caution when it comes to real estate investments. Before investing in real estate, it would not harm to have a clear picture of the real estate market.
The real estate market has its highs and lows, and you need to be aware of these. Selling property during a real estate boom may be a great way to add to your retirement nest egg, while a real estate slump may spoil all your plans of using your home as a retirement investment.
If you are planning to buy a second home after retirement or if you are planning to use your home as a retirement investment, you need to be aware of the shape of the real estate market. Being aware of the benefits of reverse mortgage can also go a long way in helping you plan your finances after retirement. At FutureYears, we have offered tips on how you should use real estate as an effective source of retirement income.
Health
The Spanish proverb says it all, "A man too busy to take care of his health is like a mechanic too busy to take care of his tools."
Who doesn't want to look great, and stay fit and active? Needless to mention, if you want to be an active adult you certainly need to take care of your health. You can never be too careful about your health. Whether you are a teenager or a 40+ adult, you need to stay fit and active to stay healthy.
Health is not only about maintaining a balanced and healthy diet and exercising regularly—it is also about being aware of the needs of your body and the health conditions that you may be susceptible to. Prevention is the best cure and prevention can come only from awareness. There are a number of health conditions that you need to be aware of.
For example, Alzheimer's disease may not be curable but you can certainly control its progress. Then there are health conditions like diabetes. From teenagers to older adults—any one can fall prey to diabetes. Timely detection can control diabetes very effectively. Most people do not recognize obesity as a health condition. However, obesity may lead to medical ailments like heart conditions and hypertension. Again, awareness is the key to controlling obesity.
Awareness doesn't end with being conscious of health conditions but it's also about being aware of issues related to your health. You should be well aware of the answers to how you should prepare yourself to deal with the medical system, whether you should buy generic drugs or prescription drugs, or if you can buy your medication internationally.
There is a relatively new concept of medical tourism where you can go overseas and get great medical treatment for your medical condition at much lower rates than you will have to pay in the US. There are medical tourism destinations like India and Singapore that are becoming increasingly popular with the medical tourists from the US.
It cannot be denied that an unplanned medical emergency can take a huge chunk out of your retirement nest egg. So it's also a good idea not to avoid medical tests or postpone medical checkups. The age old saying, "a stitch in time saves nine" is worth remembering. At FutureYears, we have shown you how you can be aware of various health conditions and stay fit and active.
Social Security
Social Security refers to the United States federal "Old-Age, Survivors, and Disability Insurance" (OASDI) program. To put it in the simplest terms, Social Security is a social insurance program for the US citizens. The Federal Insurance Contributions Act (FICA) Tax is used to finance the social security program. Social security offers base level financial support for employed as well as self-employed persons. Social security coupled with Medicare form the largest social welfare program of the US government.
You will need to supplement your social security benefits with other investment plans like 401(k) and 403(b) plans, annuities and IRAs. Remember, social security was never meant to be your only retirement income. It was supposed to supplement your retirement income. Social security is primarily targeted at the following:
- Those who have retired.
- Those who are disabled.
- Families or survivors of deceased workers.
- Dependants of the beneficiaries of social security.
At FutureYears, we have provided you details that would help you to understand your social security benefits.
Travel
Traveling is a favorite option with everyone. Whether you are 20+ or 50+, visiting and exploring new places is definitely an option that you will like to peek into. Visiting virgin locations, getting to know about strange customs and traditions, visiting countries that you have read only in text books is a pleasure that has to be experienced first hand.
You may be wondering whether traveling as a retiree or as a senior may be a convenient option. You will be surprised at the large number of discount travel options that are available. If you are not too sure of traveling on your own, then you can opt for escorted tours. There are organizations like Elderhostels that offer great educational travel options for 55+ adults. Organizations like American Association of Retired Persons (AARP) that also offer great travel discounts.
Traveling is no longer a pain and with the large number of tour options that are available, it is a pleasure. From eco travel to cruises, there are countless opportunities for the willing travelers. For seniors, there are special facilities like "doctor on board"— seniors do not have to concern themselves over the availability of medical services. Mostly everything is taken care of, down to the smallest detail.
If you want to save on your travel expenses, then you can even choose to travel during the shoulder season. You can also look into the option of RV Travel. This is great travel option, especially if you love driving. You can create your own travel route and stay at the RV resorts. These resorts offer a comfortable stay at great rates.
Traveling, today, is safe and fun. Just make sure that you have chosen the right tour operator and you are aware of the currency details of the places you plan to visit. If you are traveling abroad, make sure that you are aware of the currency exchange rates. It is better to carry sufficient cash with you, as you may have difficulty in finding ATMs. It will save you from paying currency conversion charges at the ATMs which usually result in some unplanned expenses. At FutureYears, we have offered great tips on traveling for seniors and for all those who would like some "discount travel."
Driving
For a majority of Americans, driving is as much a part of life as going to the swimming pool. Just as getting a driving license was a part of growing up, accepting the fact that you may have to be more conscious of your driving abilities as you grow older--is also important.
A healthy lifestyle, a combination of Yoga and Pilates, and a healthy diet can help you keep a lot of age-related conditions at bay. But then the elixir for eternal youth hasn't been discovered yet! Botox and anti-wrinkle creams may make you look younger but it's always a good idea to accept your aging process gracefully and enjoy the blessings that age brings with it. This is the best possible "anti-aging treatment" that you can get!
So...though driving becomes a routine affair, it needs sharp reflexes. You have to be constantly alert while driving. Reflexes may not remain as sharp as they were in the young age. Eyesight may start failing and it may be very tiring to remain alert for long stretches of time. This is all a part of aging and all you need to do is, take a few extra precautions.
The point is - you have to be a bit more careful than you have been so far. Understanding your limits and then going on those long drives may be a good idea. There are special 50+ driving courses meant, as you have already guessed, for adults who are 50 and older. As you grow older, you need to be aware of the legal changes as well as the changes that you will go through as an older adult. FutureYears offers good-to-know information for 50+ adults and seniors.
Community Service
If giving back to the community is something that you have always wanted to do then community service may be the ideal choice for you. In addition to using your spare time fruitfully, you can get to interact with others. Socializing is a good way to keep yourself mentally fit and active. Community service can mean a number of things—you can get involved in the social service programs of your church, you can form your own adult education group and hold adult education classes, or you can join an established community service organization. There are a number of organizations like The
Peace Corps, Habitat
for Humanity, Salvation
Army, Rescue
Mission, and Teach
for America.
For example, with an organization like The Peace Corps, you can get involved in a number of activities from business development to community development to special youth programs. As a Peace Corps volunteer, you can be posted in locations as remote as Peru or Saudi Arabia. This is a totally different experience compared to local volunteer programs. You get the opportunity to know about new cultures, which is a not-to-be-missed experience. The Peace Corps has special opportunities for 50+ volunteers.
You may also be interested in an organization like "Teach for America." You can always join this organization as a teacher and offer voluntary services to the hundreds of students who want help with their education. You can use your knowledge, skill sets and years of experience to educate students and help them perform better. This will be ideal if you love teaching and have lots of patience. Teaching can be a very rewarding experience. You get to make a difference in the life of a young learner. May be, now is the time you would like to say that "thank you," the way your favorite teacher would have loved it best.
You may also choose to join educational volunteer opportunities or even volunteer at disaster sites, volunteer as a care giver at a hospice, or join a neighborhood emergency response team. Some of these options may not be for every one, especially if you want to volunteer at disaster sites. You will not want to get rescued when you have actually volunteered to rescue someone else! There are a large number of opportunities available for any one who has a will to help and reach out to others. When you join any volunteer service make sure that it is exactly what you would like to do and give your hundred percent to the volunteer program.
Retirement Locations
You may have stayed at a particular location all your life, or you may have stayed and worked at different locations. A large number of retirees, nevertheless, show a preference towards relocating to quieter, inexpensive locations after retirement.
You may also prefer retirement homes where expert and responsible caregivers will ensure that your personal needs are taken care of. These retirement homes ensure that the residents live an active and healthy lifestyle. These homes are found in every state and all you need to do is use a retirement home finder to locate the one nearest to you. In addition to this, you may also want to find accommodation in one of the retirement communities. There are special golf retirement communities for retirees. There is also a possibility that you may want to buy a second home in one of the places that are popular with retirees in the US.
You may want to retire abroad! If you are new to this concept, then you may feel excited to know that there are great locations like Canada, Mexico, Costa Rica and Panama which are becoming increasingly popular with retirees from the United States. If you are under the impression that these retirees are paying more, than you will be surprised to know that they are not! These countries offer a great lifestyle at relatively lower costs. For example, most of these retirement locations have very low tax rates. That should be one huge worry off your mind.
Places like Costa Rica and Canada are famous for their natural beauty and are considered as great retirement locations. Making one of these countries your home after retirement may turn out to be one long vacation.
Before you finalize your relocation plans, whether in the US or outside the US, weigh your options carefully. Living away from your friends and family and the places you have known all your life may not be a very convenient option. At FutureYears, we have offered great tips on finding the ideal retirement location for you.
Lifestyle
Retirement, as we have mentioned already, is not all about planning your finances. It is also about making sure that you have a comfortable and an enjoyable lifestyle even after retirement. Some of you may be apprehensive about life after retirement, but with a little bit of planning, life can be just as much fun even after retirement.
Yes, you certainly have to plan your retirement nest egg carefully. But you can enjoy great discounts simply by keeping your eyes and ears open. Being aware of "great offers" and "off season" or "shoulder season" discounts can save your valuable dollars and you can really enjoy yourself.
Also, taking up a second career after retirement may be a rewarding option. You may also wonder what you will do with your spare time—pursuing a retirement hobby or even hobbies, or joining a lifelong learning opportunity may be a great way of keeping yourself occupied. At our section on Lifestyle, we have offered you great tips on enjoying yourself after retirement.
Careers
Today, a second career or an encore career is no longer a new concept. A large number of retirees are opting for second careers. Organizations understand and value the worth of experience, and they prefer to have retirees on their payrolls. You can opt for a full time career or a part time career after retirement. The greatest advantage of retirement is that you can plan your life the way it suits you best. You do not have to adjust your life to a nine to five routine.
With retirement you can actually experiment with the type of career you want to take up. May be you wanted to be a beautician but never had the time to get trained. Now is the time you can learn new skills and try to use them as a second career option. And remember, your brain will remain as fit as you want it to be. There are various career options available to 40+ adults or older. You will have the opportunity to stay active and at the same time, you can add to your retirement savings.
A comfortable and active lifestyle is what a second career will offer you. However, before you choose a second career make sure that the job profile matches your skills and your interests. At FutureYears, we have offered advice on how to choose the right second career for yourself.
Awareness is the key to preparation...
The biggest challenge you may face is how much you should grow your wealth before retirement and how you should plan for it. From consulting your financial advisor to using a retirement calculator, there are various ways to plan your retirement nest egg. In short, you need to plan your retirement well in advance.
Whether you are a 20+ adult or a 30+ adult, it's never too early to start planning for your retirement. From matters that concern health to matters that are related to Medicare and Social Security—FutureYears ensures that you are aware of all the issues that concern you. Awareness is the key to preparation, and once you know what you are aiming at, you can implement your plans smoothly.
There are a few things you may want to consider. The first is planning your current income. Saving is a habit that cannot be cultivated overnight. Right from the day you start to earn, you should practice saving. Or else, it may be very difficult to control your expenses after retirement and you would not want to reach the bottom of the pot all of a sudden. Asking for financial advice from people like your parents may also be a good idea. Learning to save and to invest is an ideal thing to do. Saving and investing should go hand in hand as savings alone may not be sufficient to help your grow your wealth sufficiently.
At the same time, being aware of your health may help you to cut down on medical costs at a later stage. A healthy and active lifestyle is more a matter of habit than an overnight affair. Following an exercise regimen and making it a point to eat a balanced and healthy diet will need some amount of self discipline. But then, who doesn't want to stay fit and look great?
Retirement no longer means shutting out the world. Today's world is a world of opportunities and no one is left behind. The only thing you need to know is which door to open. You can have a frugal retirement and still have big time fun. From going on escorted tours to joining one of the lifelong learning residential communities—you have a lot of options. The choice is yours.
Planning for a comfortable retirement is not rocket science, though it does require you to be methodical and meticulous. Retirement is the break that you get as a reward for all those years of rushing to the office, struggling to meet deadlines, getting caught in rush-hour traffic—a little bit of advance planning and a disciplined lifestyle can really make this well-earned break one of the best times of your lives.
Life is calling—what are you waiting for? So... here's wishing you a happy retirement!
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