Do you think the average Joe is really in a position to retire early? Most of us work our guts out full time and we can barely even make ends meet! Some of us can not even earn enough to pay for the bare essentials! If this sounds like you, believe me, you are not alone. Take the USA for example, for the past 18 months people have been spending $1.10 for every $1.00 that they earn! Spending like this has not occurred before, not even during the Great Depression. If you are spending more than you are making, you are certainly not on the path of those who want to retire early.
Managing your Finances
Your average financial consultant will say you should put about 10% of your income aside for retirement. This is so you will have something to live off when you retire. The thing that they do not realize is that most people rely on that 10%
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We are digging our own graves with debt, but if we pay attention we will be able to fill our own personal hole of debt and start creating our own little pile of wealth! But how on earth do you do it?
The first part of the solution is simple: education. Going out and learning about all the debt restructuring programs that are available could save you literally tens or hundreds of thousand of dollars in interest repayments, and significantly reduce the amount of time you spend living in debt. There are some fantastic organisations out there dedicated to helping you restructure your debt. Most of these organisations also offer great information on how to reduce your taxes, manage your risk in investment, how to invest intelligently and how to plan your estate, so make sure to take advantage of all of these resources as well.
But is education alone enough? It is the trigger to getting rid of your debt, but in order to really tackle the beast of debt you are going to have to increase how much you are earning.
Income outside the
Don’t just accept the default savings rate. Often this rate can be as low as 3 percent. While 3 percent is better than nothing, for most 3 percent won’t be enough to maintain your current lifestyle when you retire. Fidelity suggests you contribute at least 10%.
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.
Imagine your laying in a hospital bed hooked up to various machines. The doctors and nurses are persistently coming in to check up on you while you’re trying to get through the pain, weakness and slow wasting away of your body. On top of that you are grieving the side effects from numerous drugs, constipation, restlessness, you can barely breathe. You have no appetite because you are constantly throwing up. The doctors have given you little to no chance of survival; and death is at hand, it is just a matter of when. You have said your goodbyes, you have come to terms with dying and you are ready to meet your creator. Now if you had the chance to choose how and when your life ended would you take advantage of it?
Most everyone in the world knows about America; "Land of the Free and Home of the Brave," a nation of free men and women doing whatever they wish, pretty much a place to make life as you desire it to be. But there is actually much debate on if this nation of liberty & freedom is truly the pinacle of the global nations. Nations are overall rated by four main areas; military strength to both attack threats and defend the nation, healthcare to ensure the wellbeing of the nation 's people, unemployment rate monitoring the ability to make a financial living, and education to see how the nation is in intelligence and technology. More so, America has a concept known as the "American Dream", an idea of what one can do by becoming a citizen of the first
Doyle states in his article, “As of this writing, the total amount of outstanding student loan debt has been estimated at $960 billion (Kantrowitz, 2011).” Right now, there is only 7.4 billion people on earth, but not all of those people are in debt. So, massive debt with not near enough people to even cover the debt on the whole planet put this issue into perspective. Many people talk about applying for scholarships but scholarships can only cover so much of the price, and even then, the scholarships aren’t guaranteed. Now what about paying off the loans? How will that take? “First, incomes vary tremendously across different choices of majors and professions. Second, the incomes of individuals starting out in the labor market vary according to the state of the labor market at that time.” There are many different factors that go into this process. As stated in the previous paragraph, those who do both work and school are more apt to pay their debt off at a quicker pace. But, how much they make and how often they paid is another contributing factor. If the average college student is making minimum wage (part time) and is going to an in
When it comes to achieving success in the working industry and accomplishing a successful career an education is important. Getting a degree is essential to be successful. The issue is the higher the education the person wants the higher the cost is. Nowadays, not everyone can afford paying out of pocket for an education, which mean that students are forced to take out large amount of student loans to achieve that degree. Student debt is an ongoing problem, students are gaining oversized debts that most of the time if not ALL are defaulting and jeopardizing future credits. How much debt it too much debt? Everyone should have the liberty to
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,
College is worth the debt because in the end you will have so much to show for it, money, education and happiness. You won 't even be worried about the money you owe because you will be able to pay it off at any time. You will be able to show your kids a better life and help them strive for a higher education too. You will also be able to spend more time doing fun things with your family and not stressing over bills. More college means more money, more money means more education and more education means more happiness. The college education will always be worth the debt at the
According to the Retirement Confidence Survey (RCS) that is conducted yearly by the Employee Benefit Research Institute (EBRI) for the year 2014 shows that a mere 18 percent of individuals surveyed stated that they are confident about having enough money for their retirement. On the other hand twenty-four percent are not at all confident about their retirement funds. More statistics concerning the RCS survey can be located under http://www.ebri.org/pdf/surveys/rcs/2010/FS-03_RCS-10_Prep.pdf
A first thing that arises when planning or applying for retirement is to check or see what to expect in terms of benefits from social security. Monica J. Franklin on her article “When Should I Apply For Social Security?” gives a good advice on retirement, she also shows the way the government states retirement age, “This is how it works: if a worker was born in 1937 or earlier, the full retirement age is 65. The full retirement age increases by 2 months each year, until full retirement age reaches 66 for people born 1943-1954. From 1955 until 1959, the full retirement age creeps up by 2 months per year, until 1960. For people born 1960 and later, the full retirement age is 67”(31). What it means is that for someone right now the retirement age is around 65, but it will be increase until it reaches 67.
Summer has come to an end and school back in full swing. One is ready to crush the challenges facing a 5th grader. The last bell for recess sounds. Young boys race outside to enjoy the sun’s warmth. Name calling and horse-playing around immediately begins as they plan their weekend fun. Challenging each other to execute silly acts or daring one another to flirt with the girls across the playground. One yells out if you don’t jump from the top you are a sissy. Then one hears ask Julie out first. Recess is almost over when another one yells out he won’t…he’s a gay sissy. Silence has now blanketed the playground and one could hear a pin drop. Saved by the bell it was time to line up and head back to class. The final bell of the day
When it comes to your financial life cycle, retirement is one of the most important and strenuous areas to plan for. Because of the reduction in income during retirement, a person is exposed to longevity risk (risk of outliving your money) and the risk of not being able to maintain your current or wanted lifestyle. Our Red River Wealth Management team has analyzed your financial information and goals to create the retirement recommendations listed below.
Personal financial planning eventually leads to secured retirement years; this is the purpose to plan for the future. With a volatile and erratic economy, and social security benefits undetermined in regards to having enough money to comfortably survive after retirement is critical. There is no magic ball to tell us what the coming years will bring; this is why it is up to each individual to have their own financial lives under control. Having a concrete financial plan now will secure an increased comfortable future.