Many people start dreaming about their retirement years almost as soon as they start working. Their days will be filled with hours on the golf course, lounging in the pool or playing in the garden. This is a great goal and many people are able to do exactly those things when they retire. However, chances are that you will only be able to attain this type of lifestyle is to use a retirement planning professional to help you put the proper plan in place. A CFP (Certified financial planner) can help you develop a strategy to achieve your financial goals whether it is for your retirement or saving for your children’s college fund or both.
Depending on your year of birth all Baby Boomers are eligible for full Social Security benefits between the ages of 66 and 67. However you can choose to start receiving reduced benefits at age 62. The reduction is 25-30% depending on your birth year. This option is currently the choice for more than half the eligible workers. And 73% of eligible people are claiming benefits before their full benefit age (after 62 but before full benefit age).
There is a multiplier effect. If you have a sum of cash that you do not need for daily living, you can turn it into a much larger cash benefit that will be left to your estate. For example, let us say a teacher retires with some savings and a retirement plan so she can live comfortably. She inherits ,000 for her parents, and wants to turn around and leave this to her own children. It is likely that she could purchase a death benefit that is some multiple of the original cash she has to pay her first premium with. This is one way that people use to grow their estates.
Investing now for your retirement will help you accumulate the money that you are going to need for your future. You will want to make sure that you are careful with the planning that you are doing now so that you are not missing out on all the things that you want to do later on down the road. Making the right choices now is going to be crucial to your retirement and how you spend in.
1) Save your pension. It is possible to put off claiming your State pension so that you get a higher payment. This includes the option of claiming a lump sum, or getting a higher weekly payout later. Plus if you would like to continue working after retirement but have already started collecting your pension, you can cancel it and reapply later. (But you can do this only once). See the Directgov Pensions and retirement planning new ulm site for details.
There are so many different investment ideas that you can take advantage of when you are looking for a retirement investment planning service. You need to take your time and think about what you are going to need to retire. You will have to come to the conclusion about what you are planning to do in those years and how you are going to have the money to make all of your dreams come true.
Figure out how much income will be necessary and how much risk you are willing to take. Work at home jobs are harder to come by, but home businesses are by their nature more risky, and it may take a few years to earn an adequate income from a business. Plan accordingly, and know that you might not be able to live your preferred lifestyle right away.
So if I am going to retire, and hopefully take it easy, I don’t think I want to be involved in generating active income. And I imagine neither would you.
The trick, though, is to take ACTION and start NOW, before you retire. There are people out there in cyberspace who have 20, 30, 50 or even 100 plus projects running bringing in money 24/7…and they don’t have to do anything more. The hard work has been done. Their retirement planning has been done.