Month: August 2017

                                  Best Retirement Calculators

There are many retirement calculators out there. This artitcle is just going to give you a few.  I will tell you what I like and don’t like about each one. 

                                      Chris Hogan Calculator

The Chris Hogan calculator will show  that you need more money than other calculators do. The reason is simple.  They do not include Social Security at all.  This is a very conservative approach that makes sense.See www.chrishogan360.com

                                           AARP Calculator

The AARP calculator for retirement does depend on Social Security in its calculations.  If Social Security is reduced you may have less money than you thought.  Keep this in mind when you use this calculator. This is a good calculator for most people.

                                  New Retirement Calculator

This calculator is the American Association of Individual Investors Editors Choice.  This is very good.  In fact there are three calculators.  There is a simple calculator, a Social Security calculator, and the super all in one calculator.

I was using the simple calculator and it was changing grahics after each change I made in checking different scenarios.

 The changes were quick and accurate. It used graphics to show when your money would be expected to run.out. It took into account my age and my wifes age.  She is five years younger and expected to live as long or longer than I am.

New retirement has more than just calculators it can help you plan for your retirement. They even give advice and options on how to improve your plan

            

                            

                                       My Favorites

My favorite calculator over all is the New Retirement clculator.  It gives you the most options. It is quick and accurate.

It has good graphics showing where you stand with different scenarios.

                             What to Do If You Are Short

1. Delay Retirement  

Delaying retirement is a good option for many people.  If your health is good this could be one of the best options for you.

If you delay for three years for example that could cut your retirement needs.  At the same time it gives you the opportunity to save a lot more.  This is a double benefit.  Delaying three years will reduce your needs by say 15%.  At the same time you could have time to save 10% more.  Or even more than that. The combination of the two makes a REAL difference. 

2. Delay Getting Social Security

If you delay getting Social Security you will receive more per month. You will receive about 68% of your full benefits at age 62. You receive 100%  if you wait until full reirement age of 66.  If you wait until age 70 you will get about 132% 

.Your checks will be larger each month if you delay. But the total amount of benefits you receive will depend on your life expectancy. That you cannot know exactly.  However there are calculators that help you determine that you have a 75% of living to age 90 for example. Companies that sell annuities can help you estimate how long you may live.You just have to answer a few questions about your health and related items. I believe the new retirement site has a calculator for estimating your life expectancy.

I just checked a calculator for abaris-how long will I live? Or just google “life expectancy calculator.”

3.Save More

Even if you don’t delay retirement you can try to save more.  Use the calculators to get an idea of how much more you need to save.  Try to save 15% of your income  AT LEAST.  You will be surprised at how much you can save when you really focus on that.  We tend to attract what we think about.  So think about saving more.

4. Spend Less

Spending less will help you to reach your goals sooner.  If you save more you will mostly be forced to spend less.  The two go togeter like peanut butter and jelly.

5.Add additional side incomes

Adding side incomes can really help a lot.  If you only make $1,000 a month but do it for 20 years that’s a little less in percentage terms than A QUARTER OF A MILLION DOLLARS– $240,000 to be exact. 

See the artitcle on affiliate marketing for one way to make side income. See the Wealthy Affiliate review for a specific opportunity to make money. It is my #1 recomendation.  See it now

See the Making Money With Classifieds Ads Review for my #2 recommendation. See this now

6. Work More Hours

If you are working only part-time perhaps you could work more hours.  This would allow you to save more.  Be sure to keep spending as low or lower than it was before.  I would be careful about working too many hours.  Working overtime may not be right for you.  It depends on your health and other factors.  Allow time to do the things you enjoy.

7. Budget Better

A budget is simply a spending plan.  It allows you to have enough for all the neccessary items like food, gasline, insurance etc.  Be sure to allow some fun expenditures.  Vacations are important in retirement for happiness so don’t be afraid to spend a little there.

If you have not had a budget before you can keep track of all your expenses for 30 days at least.  This will show you what you spend now. It will also show you where you spend.  Make a list of all the important items and allow for some fun money too.  

                The Importance of 2 or 3 Sources of Income

Having at least 2 or 3 sources of income is very important these days.  Jobs can be lost.  Social Security is under attack by some politicians. The numbers of those who have pensions is declining.  We are left to help ourselves more and more. Because of these trends many  more people are starting their own businesses.

According to National Institute on Retirement Security a “new analysis indicates that Americans in nearly every state will fall far short in meeting their economic needs in retirement.”  California, Florida and South Carolina are among the LEAST PREPARED and Wyoming, Minnesota, Alaska and North Dakota are MOST PREPARED.

Pensions are Declining 

Statistics show that the numbers who have pensions is declining. In 2006 almost half of households had access to pension income. I believe the numbers are decling now but I don’t have specific figures.

Social Security is Not 100% Secure

There has been a lot in the news about Social Security not being all that secure.  “Social Security trust fund projected to tap out in 2034” was the headline I recently saw on line.

Social Security Was Never Intended To Be A Total Retirement Plan

Social Security only covers about 39% of retirement expenses for most people.  Right now 37% of future retirees are almost totally dependent on Social Security.  This group has $50,000 or less in savings.

Richer Americans Have Multiple Sources of Income

The rich are good examples for the rest of us when comes to money.  They have at least 2 or 3 sources of income.

Some have many more than that. So lets follow their lead and have several incomes coming in. There is security in multiple incomes.

More Sources Equals More Security

I will say it again. There is security in several sources of income. If one fails the others can take up the slack.

There is no better feeling than knowing you are going to be ok no matter what happens. If you are like me financial security is very important.  I estimate that only 25% or less have a really strong need for financial security. That may explain why so many are not prepared for retirement.

Add Sources of Income

So we need to add sources of income.  Pensions, investments, real estate, side businesses are some of the potential sources.  Every one’s  circumstances are different.  If you don’t have a pension then you need the other incomes even more.

Investments are One Source

Only a relatively small precentage (14%?) have $100,000 in a 401k.  For those folks who have less  I recommend putting in the maximum.  Aim for 15% or more of your income.  

One young man at the time I recommeded putting 10% into his 401k., Aim to make 10% on his money. Continue to contribute 10% for forty years and he would be a millionaire. He now has a lot more than $100,000. I urged him to more into his account in the early eighties I believe.  He showed me his check stub to prove that he was really putting in 10% of his income.  

Now I estimate he has accumulated  close to $500,000 or more. That puts him in the top 15% or better. He is on his way to having one of the keys to a happy retirement.

Side Businesses are Another Source

Side businesses are another source.  If you have never had a side business, now is a good  time to start.

You need the money. It gives you a purpose to your retirement. It gives you a core pursuit.  It can be FUN!  And it is never too late to start a business.  Fifty one percent of businesses are started by those over 50. and up to 80..

Turn a Hobby into a Business

If you wonder what to do in your side business, you can turn a hobby into a business.  For example I had a blog as a hobby for the last two years . I did not make any money.  Then I decided to start another one with the purpose to add income.

See my article on affiliate marketing. Then take a look at my Review of Wealthy Affiliate. This will show you exactly what I am doing now.  I am learning a lot. It is fun, too.

Then I recommend you take a look at the Wealthy Affiliate website and sign up for free for 7 days. You have nothing to lose.

Happy Retirement Secrets

“10 Secrets for a Happy Retirement” was inspired by a book called “You Can Reire Sooner Than You Think” by Wes Moss. He is the host of Money Matters and Barons 2014 top financial advisor. Jeff Haden wrote “10 Surprisingly Attainable Traits of a Very Happy Retirement” for Inc.com. based on the Wes Moss book.

1. Need a healthy income but not six figures

The household income of very happy retirees is $92,000 at the peak earning years.  The was for total household income not for each person.  It is LESS THAN six figures.

2. You Don’t Need a Huge Income Now

The household income currently is $82,000 for happy retirees.  This is a high income but it is for the household not per capita.  It is still less than six figures in income.

3. You Do Need a Substantial Net Worth But Not Millions

Happy retirees have a net worth of $500,000 in liquid assts.  This is fairly high but even the happist retirees did not have $600,000 in assets producing income and providing a cushion. $500,000 is like a magic number for a comfortable and happy retirement. You don’t need a million dollars for a happy retirement.

4. Do Not need a huge house

The average happy retiree had a house worth $300,000.  It does not require a mansion to have a happy retirement. In some areas this would be a very modest house.

5. Happy retirees have no mortgage

Happy retirees have no mortgage.  Their house is paid off.  This gives one a sense of security.  No mortgage means no chance of losing your home even if your income changed drastically. Pay off your mortgage early .  It should be possible for nearly everyone if you make that your focus.

6. Happy Retirees Have 2 or 3 Sources of income

This makes a lot of sense.  I met a man who was living on social security alone.  His medication took half his income. He was in poverty.  Two or three sources of income would have helped his situation enormously.

7. Happy Retirees Have a Strong Sense of Purpose in Life

It is important to have a purpose in life.  And it is important to know what it is.  It gives you a focus and satisfaction.

8. Happy Retirees Have 3 or 4 Core Pursuits

Happy retirees have activities that give them a good feeling about themselves and their life. it could be a hobby or a business or travel or playing with grandchildren.

9. Happy Retirees Live in the City or Suburbs

According to the research happy retirees live in the city or suburbs. 37% of “unhappy” retirees reported living in a “rural” area. We need the stimlation of being able to interact with other people.  Watching television all day is not going to do it.

10. Happy Retirees Take Vacations Every Year (2 at Least)

This is one place where it pays to spend some money.  The payoff is greater happiness. Vacations are both stimulating and relaxing.

Use These Secrets as a Checklist

See where you stand in each one of these areas.  Then work on the ones where you are weakest. This will put you on track to be a very happy retiree.  Good luck and have a happy retirement.

Purpose and Core Pursuits

If your purpose and core pursuits involve running a business, especially an online business, you can learn to start now by clicking the link: learn more