Dante’s 7 deadly sins have long been deemed to be the main avenues to eternal damnation. Any aspect of life then is great fodder for examination using the 7 sins as backdrop, retirement planning being no exception. If aspects of your personal financial situation regarding retirement planning are of perpetual concern, this checklist of common disorders could get yourself back on track.
Pride—You don’t admit you need help when retirement planning becomes more complicated than you originally thought. Men are apt to be worse than women in this regard, experts say.
“All too often, men won’t admit to others where they lost money,” says Tim McCarthy, president of the Fidelity Investment Advisor Group, and former president and chief operating officer of Charles Schwab Corp. “Women, however, are more likely to discuss their investment failures as well as successes. They don’t define themselves by how much investment acumen they have.”
The clear danger to going it alone: Emotions that arise may easily lead to irrational decisions. A professional such as a certified financial planner can help with your individual retirement plan.
“Someone not doing this full time will be less likely to spot trouble,” says Larry Luxenberg, principal of Lexington Avenue Capital Management, New City, N.Y. Good examples of trouble spots, he says, are asset allocation and portfolio diversification.
“When an amateur gets these wrong,” says Luxenberg, “it could spell the difference between a comfortable retirement and a much delayed one -- or worse.”
So swallow your pride when it comes to building a long-term portfolio.
Envy—“Keeping up with the Jones’” Yes, it’s a cliché. Envy also is a deadly sin that can unwittingly thwart your retirement planning.
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“Be sure to stick to your savings goals and budget for the retirement years,” he advises.
Lust—Make sure your retirement planning goals are realistic. Don’t lust for what you can’t have or can’t achieve. Most of the time you won’t achieve it.
Say you currently have $1million in your 401 (k). If you tell your financial planner you want $5 million in three years so you can retire, “you’re lusting after an unrealistic objective, says planner Warren.
“Investing is not wishing for something you don’t have,” says Warren. “Realistically, retirement planning would be achieving realistic goals.”
Rafal agrees: “Lusting after a specific number could mean overexposing yourself to risk and jeopardizing your entire retirement future in trying to achieve that specific number,” he says. “Instead, create a retirement plan based on your income needs for the golden years.”
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
When I walked across the stage to get my diploma, the term 401k meant absolutely nothing to me. I was more concerned about getting a job than how I was going to retire. When I got hired, I was just happy to have a job with a salary. I was fortunate enough to get a great paying job, but also one that came with benefits. One of those benefits was a 401k plan.
If the people use their personal accounts, the retirees will then see higher returns on their investments. As a result, will put more money in the retiree’s pockets. Martin Feldstein, stated, “A private account earning a modest 5.5% real rate of return, "someone with $50,000 of real annual earnings during his working years could accumulate enough to fund an annual payout of about $22,000 after age 67, essentially doubling the current Social Security
III. (Reveal Topic) You simply cannot rely on Social Security to support you in your "Golden Years". You can never start too early to save for your retirement. In fact, the earlier, the better.
Retirees over the age of sixty two in the United States are estimated by an independent financial survey to be sitting on over one trillion dollars in total assets. That money mostly lies in financial institutions gathering interest while needy family members suffer impatiently waiting for the day when it will be their inheritance. But not all seniors are that callous, they give away their money to loved ones before they die. There is no better way for the elderly to show that they care. Those that do can enjoy the pleasure of watching their money being spent. It is a joy that they would never experience if they waited until their death.
Only 23% of well-off retirees and 16% of all retirees polled are working today.Affluent nonretirees estimate they'll need only 53% of their pre-retirement income to support their retirement lifestyles. But well-off retirees say they actually require fully 71%. Fully 25% of affluent nonretirees think it's likely they will run out of money before they die vs. only 12% of well-off retirees.Affluent retirees single biggest regret is failing to put more money in tax-deferred retirees said they invested the maximum the law permits, compared with only 48% of the affluent nonretirees polled.Strategies1.
There are extensive studies on retirement covering education in general. The findings suggest that education is an important factor in affecting retirement planning preparedness (Hogarth, 1985; Joo&Pauwels, 2002). Education enables individuals to explore more information relating to their retirement planning and that sources of information will influence their decisions, attitude and intention to do retirement planning (Hogarth, 1985; Joo&Pauwels, 2002). Also, DeVaney (1995) addressed that the effect of education level may serve as a motivator or guidance for individuals to start the preparation for retirement planning. With the increase in age and educational level, individual tends to be more motivated to work on retirement planning preparation or take some action for their retirement (DeVaney, 1995).
In her article, ‘Understanding Retirement Planning’, Sue Haggerty stated that “the most important aspect of retirement planning is understanding what your income replacement rate needs to be during retirement in order to maintain your pre-retirement lifestyle.” Consequently, knowing the replacement rate helps put the retirees in a position to avoid cutbacks. Haggerty conveyed, ordinarily the retiree does not need to have 100% of their pre retirement income after they retire due to the fact that Retirees do not have to pay into Social Security. Additionally, since they are retired there is no need to spend funds on work-related items. Surprisingly,
For most Americans, retirement has become a lifelong goal. To retire comfortably, you need income, and this income can come from one of three sources: savings, Social Security, or a company pension plan. The unfortunate fact is that Americans save very little money nowadays, and for anyone under forty, Social Security is a very hollow promise. For most, private pensions are the key to a comfortable retirement. When it comes to private pensions, however, most companies and employees themselves don’t contribute enough money, meaning that future retirees will have to work longer if they want to maintain their pre-retirement standard of liv¬ing into retirement.
Mitch. "Money Is Only Part of the Equation." The New Retirementality: Planning Your Life and Living Your Dreams-- at Any Age You Want. Chicago, IL: Dearborn Trade, 2001. 25-26. Print.
...ation, planning, and considerations, retirement funds can be extremely low and can therefore cause severe hardship. It may cause retirement to be pushed back past the age of 70 to have access to enough funds. It could also bear stress to other family members, children for example, which would have to help out financially and delay their retirement plans. Utilizing the proper education, research tools, guidelines, and determination retirement plans can be set in place early to leave room to fluctuate over time. It is no one else’s responsibility but one’s own to prepare for their future, and therefore should take matters in their own hands. The question now is, are you prepared for retirement, and if not what steps are you going to take?
Lancaster, H. "Managing Your Career: You May Call Them Slackers; They Say They're Just Realistic." Wall Street Journal, August 1, 1995, p. B1.
Retirement is one of the most important crossroads we face in life. It involves a fundamental change in lifestyle, one that calls for a totally new outlook on how we approach each day. All our lives we have been conditioned to think in terms of saving for our retirement years. Society has created this mystique about this time in our lives when we magically transform into different people with different lives when really we are the same people with different day to day lives. According to Medina, (2012) planning for retirement isn’t a "walk in the park" because for many people, debts are high while income is low.
... stock fluctuations. If a financial advisor cannot be afforded, it would have been in the best interest of the investor to read more on the stock market news regarding what stocks were predicted to have a profitable growth. The investor could have stayed with energy and renewables, just cold have chosen different corporations then the ones chosen.
The importance of saving for retirement is all based on how the individual wants their lifestyle to be after their career. The sooner they begin saving and investing their money, the more profound lifestyle they are bound to live. There is a saving plan called the 401(k) that lets employees have a percentage of their net pay withdrawn before taxes. This helps significantly if they are planning to retire earlier on in their lifetime because it can also lower the amount of taxes owed each take which essentially is more money in your pocket every paycheck. America as a whole downplays the significance of saving for retirement until they get of a certain age and they are too drained to get up for work and work a full shift as they would when they were of a younger age. Typically, when living in retirement you are free to travel and reach goals you were not able to achieve because life and work got in the way. Enjoying your retirement is the goal, not to make your retirement a burden to you or their