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Get help to make your money last through retirement
Posted on: 2005-10-18 08:12:06 Get help to make your money last through retirement Making retirement assets last as long as they need to may seem a daunting taskâ?? but a little preparation and attention can help ensuring comfort and peace of mind throughout the retirement years. Todayâ?? people live longer than ever before and spend more years in retirement than in the pastâ?? but they often run out of money. Nowadaysâ?? men and women who reach 65 can expectâ?? on averageâ?? to live to ages 82 and 85â?? respectively. Nowâ?? more than everâ?? the great challenge of this extended lifetime is making the money last as long as it is needed. ("Making your money last through retirement" by the National Endowment for Financial Education â?? www.aarp.org) When people retire in the USâ?? their possible sources of income include Social Security benefitsâ?? pension fundsâ?? savings and investmentsâ?? workâ?? and inheritances. Everyone faces similar issues in planning how to draw down accumulated savings to ensure a pleasant and secure retirement. Managing the process wisely takes creativityâ?? regular attention and a willingness to adjust the plan as needed. The fastest way to look for help with investing and planning for retirement is the Internet but it seems many searchers are coming away dissatisfied with the online experience. Change Sciences Group today released their ranking of 27 web sites from the perspective of people looking to make sense of retirement investing and planning. The research identifies dozens of best practices that firms offering retirement solutions can use to improve their sites. From that research we learn that only 40% of the sites provide a good first impression to people who are completely new to retirement planning. 60% of the sites do not provide even the most basic information about retirement fundamentals. Significant confusion exists over how to present the different types of retirement accounts. 45% of the sites do not provide interactive tools to help people learn if they are saving enough. ("Websites ranked for Best Retirement Investment Help" Oct. 11â?? 2005 â?? www.seniorjournal.com) Aging often means additional health care costs For maximum protectionâ?? it is best to diversify one's assets. It might be a good idea to put money into a range of investments to offset the risks tied to any one investment. Many experts suggest that people should try to spread their assets among stocksâ?? bonds and cash. Diversification is important within each of these categories as well. Retirees should not be too conservative in their investments. The key is to strike a balance between making their assets last and making them grow. People should set a withdrawal rate and make annual adjustments for inflation and investment performance. In order to generate a steady stream of income that continues to growâ?? the return on all investments must be higher than the percentage withdrew. Retirees should build a cash buffer to cover 3 â?? 5 years of living expenses. Adjustments should be made along the way. At least once a yearâ?? people should reâ??evaluate how they are doing. As the market changes and inflation rates varyâ?? retirees might need to change where they have their assets. Alsoâ?? they should not forget to put money aside for taxes since they probably owe taxes on the invested money. Aging often means additional health care costs. To keep costs in checkâ?? retirees may consider "Medigap" and longâ??term care insurance. They should also see if they are eligible to establish a Health Savings Account. If the numbers just aren't adding upâ?? it is possible to postpone retirement and remain on the job in a partâ??time or consulting position. If working isn't an optionâ?? other ways exist to conserve the assets. For exampleâ?? it is possible to lower housing costs by moving into a smaller place. Homepage For personal help planning for your retirement http://www.retirement-plan.us For web information about planning your retirement. http://www.retirement-retirement.com/category-20.php |