Picking the optimal retirement age is a complex balancing act among several factors. On the one hand, you want to leave the 9-to-5 life while you’re still young enough to enjoy your golden years. But you also want to make sure your savings are enough to last through your retirement and to fund the lifestyle you want. Statistics show the majority of workers retire much earlier than planned.
For many people, retirement involves a plunge into an unknown realm for which they are not sufficiently prepared. Like every life transition, retirement goes much more smoothly with proper planning. Here are four misconceptions that many people have about retirement.
The venerated four-percent rule states that retirees can safely withdraw four percent of their retirement savings per year without running out of money in retirement. For example, if a retiree has $1 million in a retirement account, they can take out $40,000 the first year, and annually adjust that figure for inflation.Continue reading
Even after retirement, many people are looking to stay employed part-time. Some retirees look at part-time employment as a way to stay occupied, others as a way to supplement their retirement income, and still others as a way to remain productive and contribute. But finding meaningful and fulfilling part-time employment can be difficult for seniors.
How about getting paid to travel? Many people list that as their #1 dream job – but that’s what it is, just a dream, right? In this video, Wealthy Retirement’s investment advisor Steve McDonald interviews a lady who has been getting paid to travel for a quarter-century. She tells Steve how she got started in the travel industry (she runs a travel agency) and gives some tips for how other retirees can get started, even if they come from other backgrounds.
Click here to watch the interview or see a written transcript.
Are you looking to move when you retire? Many people are looking for a change of scenery to begin their golden years. Moving to a place with lower taxes or cost of living, better weather, or better access to retiree activities … the reasons to move are endless.
Where’s the best destination to retire? Well, of course that depends on what’s important to you. To help you decide, Zillow, the online real estate information company, has dipped into its extensive nationwide database to display the most attractive neighborhoods based on several criteria. You can choose which factors are important to you – crime, weather, reasonable home values, access to healthcare. The map gives you some ideas to consider when you start picking your next place to plant roots.Continue reading
When most people think about retirement planning, they focus on having sufficient savings and income to enjoy a comfortable retirement. Certainly, financial planning is a crucial part of planning for retirement – without sufficient income and savings, you may not be able to retire when you want, or have the lifestyle you envision.
But many people overlook another important part of retirement planning: planning for the retired life. After 40-plus years in the workforce, retirement is a major adjustment and many enter this phase of their life unprepared for what awaits.Continue reading
The Baby Boomers, typically those born between 1946 and 1964, are one of the largest population groups in U.S. history. They’ve influenced the American economy and culture for decades. Now that the first wave of them are entering retirement, what are their experiences?Continue reading
Frauds and scams aimed at retirees and seniors have become big business. Here are five common types of scams and tips for avoiding become a victim.Continue reading
Retirement, for most people, is the time to finally do what they want, on their schedule and terms, with no pressure or need to be tied to a paycheck. While many simply want to unwind and relax after a long and stressful career, others are eager to explore new horizons, pastimes, or even new careers. Here are some ideas for creating the perfect retirement.Continue reading
The traditional model of retirement – working at the same career, even the same company, for decades and taking a gold watch at age 65 – has gone the way of the horse and buggy for many folks. It’s been replaced by a new retirement, which requires major adjustment but also presents new opportunities.
Although not everyone will need professional long-term care in their lifetimes, a significant portion will, and few people are thinking about it. According to Boston College’s Center for Retirement Research, 58 percent of women and 44 percent of men will need nursing home care sometime in their lives. The average duration of such care is estimated at 0.88 years for men and 1.37 years for women.
The average cost for a nursing home in 2012 was $81,030 per year, and the average cost for home health care was $21 per hour. But only 13 percent of people buy long-term care insurance.
Long-term care includes the necessities of daily living, such as eating, dressing, showering, and taking medications. Therefore it is not covered under most medical insurance policies or Medicare. However some health insurance policies cover minimal assistance, and Medicare Part A covers full or partial costs for up to 100 days in a skilled nursing facility following a hospital stay.
One reason cited for why many don’t buy long-term care insurance, is that Medicaid programs cover long-term care for indigent residents. Medicaid’s programs are operated by the states and require that most of a person’s financial assets first be exhausted.
The CRR estimates show that, although only 13 percent of people actually buy long-term care insurance, 19 percent of men and 31 percent would be willing to pay for it. Considering the relatively large percentage of people who will actually need long-term care, it’s prudent for everyone to consider how they would defray the costs should they need them. Some options are:
Regarding option #3, you also have to consider whether your relatives are able and willing to do this. Many grown children become personally and financially burdened by the cost and stress of taking care of elderly parents.
Option #4 seems to be favored by many people. But it’s wise to make plans for contingencies, even if they’re never needed.
Are you planning to retire in the next few years? If so, congratulations! Get ready for a well-earned exit from the daily grind. It’s time to do what you want for a change.
To help ensure your golden years are everything you envisioned, you need to do some basic planning. You’ve been planning your retirement for a long time; now’s not the time to let your diligent planning habits slide. Here are four things you might consider starting to take care of now.Continue reading
Retiring early is a dream for many people in their fifties or early sixties. People want to retire early because they’d prefer to do something else than work at their jobs. Maybe they find their jobs boring, too stressful, or just unpleasant, or maybe there’s a hobby, volunteer position, or even another career they’d rather pursue instead.
Can early retirement be more than just a dream? Here are some things to consider before you make the jump.Continue reading