Retirement

Future retirees often overestimate Social Security benefits — QUINNSCOMMENTARY

Take a look‼️ Are you among those who have mistaken views about Social Security? One extreme says Social Security won’t be there in the future and the other overestimates the retirement benefit. Social Security is a complex source of retirement income, often causing a disconnect between what consumers think their benefit will be compared to […]

via Future retirees often overestimate Social Security benefits — QUINNSCOMMENTARY

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Personal Finance, Retirement

Retirement Tips to Consider As You Make Your Plans For The Future

investment2

If you search on the internet for “Retirement” you will get millions of findings. About 1,080,000,000 results on google came up for me. You need to be more specific on what you are looking for here. Most of us that are still in the planning phase of our retirement may need to learn more about how much it takes to retire or find a retirement calculator. Other will be looking for investment options or even places to live when they retire.

I recall seeing different options as I was entering the workforce than we have today. I did not choose to work for the government or a company that was unionized so most people like me did not get a option for  a pension plan. Most us have the option of a 401K or another type of employer savings plan, Social Security and other personal savings.

I spend a lot of time thinking about how much is enough to have and what will the best timing be. One thing I remember a very wealthy man telling me was that retirement should be decided by income, not by age. He felt that most people spend 40 hours a week for 45 years working so they can retire on about half what they had been earning or less. Seems right. Hopefully we can get our income where we need it to be to retire at an earlier age than 65 or 70.

CASH FLOW

I guess now, I am focused on creating as many different streams of income as I can to support me in the retirement years. In addition to the ones above I am focused on creating additional cash flow. This probably more important than having a home that is worth $500,000, because you can’t spend it. Cash flow is what is needed to support your daily living expenses. Sure you can take some of the earning from your various plans but if you take too much the principal balance diminishes and the earnings will be reducing instead of increasing. Not Good.

Tip #1-You should look into creating cash flow, not just savings.

cashflow

INFLATION EFFECTS

According to an article written by Richard Quinn, called “10 retirement lessons from a retired retirement pro” he gives us this lesson #5 from his list

“5. Inflation is real. For many people, health care spending, property taxes and rent will be the big inflation concerns. There’s no escaping inflation, so you need to plan. I would suggest having a pool of money that you leave untouched and allow to grow, until you need it later in retirement to offset increasing expenses.”

It certainly gets you thinking about how to offset for this doesn’t it? As our money sits in savings accounts that don’t earn enough interest to beat the inflation rate the actual purchasing power actually reduces over time.

Tip #2- Don’t forget the impact of inflation on things that we actually buy.

WALMART GREETER?

Some people joke about being a Walmart greeter after they retire because they will need to continue working in their retirement years. For some it is to continue to be productive and remain part of something. For others it is to add some needed income. I recall talking to a older guy I worked with. We were discussing when we would retire. He said “I’m never going to retire, I don’t want to sit in a rocking chair and do nothing for the rest of my life”. I thought that was odd actually, because I thought that retirement is when you get to do everything. I realized later on that he wanted to stay active and contribute to something. I think that his fear was of not being useful anymore. I can see now that he was not considering all the options. He was a skilled trade person who could teach others his skills. He could have taken on a business or even began another career after his main one ended. Many people are just working until they can no longer do it, due to health reasons.

Consider the options you may have as you consider retirement. You may be able to run a  business, be a consultant to the industry you worked in or work in another field entirely if you want. No one says it’s a requirement to retire into a rocking chair or anything.

Tip #3 Consider planning to work longer than your employer may want you to. Consider the options above or look into creating a passive income, that can continue to support your lifestyle.

In any case you need to think about what you are going to do. No decision, is still a decision and leaving it up to chance may not be the best method. If you need help from a profession planner make sure they are reputable and make an appointment.

Thanks for reading!

Mark Balderrama

0704152002b
Twister sitting happy!

 

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Gen X Passive Income, Personal Finance, Retirement

Why You Should Set Up a Retirement Income in Network Marketing

Today  you have many financial options to help you in planning for your retirement years. Unfortunately a pension is not one of them for many of us. I am in the working group that came in on the tail end of companies offering pensions. I do actually have one from the first company I worked for. It’s not much but it will add a few hundred dollars each month when I decide to retire.

How will my 401K plan work out?

What is currently the main financial method for saving for retirement is a 401K plan or something similar. I have one and you probably do too. These are offered by many employers to their employees. Some people set up their own plan called an IRA or Individual Retirement Account. There is nothing wrong with them, except you cannot do much to control the return on your investment other than hope that when you do retire the market timing is good.

For many people during the recent recession the stock market crashed. Most 401K plans invest your money in the stocks and bonds. If you check you account statement you can determine what your money is invested in. Sometimes when you decide to retire the market is down and so is the value in your account. This will directly affect your monthly income withdrawal amounts if you want to maintain your principal balance.

In some extreme cases it may delay your retirement date indefinitely and force you to still work.

Older Americas Are More Afraid Of Running Out of Money Than Death

“According to a recent Transamerica study, 43% of workers 50 and older claim that their greatest retirement-related fear is outliving their savings.” Now that’s a scary thought! You can read the entire article HERE.

What’s An Alternative?

There are many other investment opportunities out there but you need to weigh the risks. One of the lowest risk opportunities to assist you in setting up an additional retirement income stream is to start and build a network marketing business. There are literally dozens of different legitimate and well run companies now you can join. The investment you mainly will make is time and small amount of money. The return on that investment can make the difference in your retirement years, and it may only take as little as two years to set up a few thousand dollars per month extra income. Plus you don’t have to quit your present job to do this business in your spare time.

The better news; it’s not like a job so it keeps coming in after your retirement.

Time Will Go By Anyway

The interesting thing about time is that whether we do anything or not to add the additional income, it will continue to pass us. Meaning, the two years will pass even if you don’t make the business investment. Consider this option to help you diversify your income in your retirement years. It would be best to have multiple streams of income to offset any risk of loss in any single source. Its always a good idea to Hope for the best and plan for the worst. Do some research and check out the opportunities. You really have nothing to lose and something really good to gain.

FREE Tour of a Simple Business that Pays a Full Time Income from Home

 

Thanks for reading!

Mark Balderrama

0704152002b
Twister sitting happy!
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Best Home Based Businesses, Personal Finance, Retirement

Why You Should Have A Retirement Income

Retirement worries couple

If you are thinking about your retirement days you probably have the same worries as most of us do. How much income do I need and how can I save that much?

How Much Income Do I Need?

There are many retirement calculators out there, but it is sometimes very disappointing to find out you cannot afford to save as much as they say you will need to. In any case most people live paycheck to paycheck and we don’t hardly stop to think about exactly how much we need to retire on. Most experts have you factoring in that you will spend less in your retirement years, but is that really accurate?

First, figure out what lifestyle you want to live. If it’s the same as you have now while you are working; then that may require some additional income streams to be able to provide it. If you really look at the cost of living you will get a better picture of what things will cost in the future. Don’t use the government inflation rates as they are not accurate when it comes to things people really buy. Things like food, gasoline, heating oil, electricity and health care. Those items seem to go up continually at a rate that far exceeds the annual inflation rate. So you need to prepare for that.

Additional Income Streams

For many people the amount of retirement savings and investments will not add up to enough for them to live the desired lifestyle when they retire. In some case they may not be able to retire at all.

Financial experts seem to only talk about two options. Save more and live on less. Both of these are fine ideas but there is another option to add into that plan. Start your own online or home based business. Many people do not consider this option because they assume you have to go into debt or quit your job to be able to start and run a profitable business.

That’s just not the case anymore

Today for less than $100 you can start and own your own business. Having a second stream of income outside of your job is smart on more than one level. Yes it can be used to supplement your current job income. It also can be sent directly into your retirement vehicle. Or you can simply use it to reduce your debt. Pay off your home early or just save it.

The great news is that after you retire from your employer you can continue to grow your business and that income can grow to greatly supplement your retirement income. It may even surpass it one day.

Early Retirement

For some people retirement means doing nothing but hanging around their home and for others it means traveling the world. Some people think that when someone retires they don’t do anything anymore. I think that’s not a very accurate depiction of the retirement years today. The old mentality of old people sitting in rocking chairs at Shady Acres Rest Home is a long way from most peoples retirement goals.

What if you had enough income to retire early what would that be worth to you?  What if you could retire from your job 5 years early? Or even just 2 years? There are now tens of thousands of people who are growing various online and home based business opportunities. There are websites and even magazines dedicated to helping people find a business opportunity that can be built in your spare time. Some of the best are discussed in my other article here.

For most people today, retirement means freedom; to do what they want. When they want. There is no doubt that you will now have the time. But will you have the money?

Time and Money

Start to consider the current retirement plan you have. If you don’t have one start looking at what you need to do. Many banks and even your employer can help you get started.

It can be pretty scary to finally face the reality that you need to have more income to really have the retirement lifestyle you want. Both Time and Money!

If you look around many people who have a lot of time, don’t have any money. Likewise the people who have a lot of money don’t have a lot of free time.

Set your goals to have both, in your retirement years! That’s why we work so hard right?

Lets recap:

#1 identify your desired Retirement Lifestyle

#2 Evaluate your current retirement plans to see if it matches up to #1

#3 Adjust the plan as needed. Not the goal. Keep your goals and adjust your plans, always.

#4 Set up additional income streams if needed

Don’t give up. Just keep thinking and learning about what the options are and how you can achieve your goals. Then make a decision and get started.

If you are interested in learning more about two of the best home based business options we have found take the Free tours!

FREE Tour of a Simple Business that Pays a Full Time Income from Home Discover a Simple Business that Pays a Full Time Income from Home

 

Thanks for reading!

Mark Balderrama

0704152002b
Twister sitting happy!

 

 

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