Financial Planning for Retirement Early Term Paper

Download this Term Paper in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Term Paper:

Finally, one may sell their home to free assets for retirement finances. If one sells the home and moves to a less-expensive residence, one can invest any after-tax sales profits for future retirement needs. Another home option is the reverse mortgage. With a reverse mortgage, one receives regular, nontaxable payments from the lender instead of paying these payments. The principal and interest are repaid at a later date, either when the house is sold or when the owner dies. Reverse mortgages are a fairly recent option for retirees, and terms vary widely, so the contract should be carefully reviewed before signing.

Retirement Strategies

If one is at retirement age or nearing it and has not accumulated a significant nest egg, one will likely need to work well into the retirement years. One should consider a plan of action if the employer forces one into retirement or even downsizes before one is eligible for retirement benefits. This is a situation where one should take inventory of skills along with the market for those skills. One should also make attempts to hone additional skills in order to increase marketability.

For those individuals who planned well in advance for the retirement years, there is still some additional planning to do. Considerations should include housing choices, travel plans, and possible relocation. After retirement, several other questions should be considered including:

Is health insurance available under the employer's retirement plan or will one need to secure this for oneself? Even if company retirement benefits include health insurance, one might need supplemental insurance.

When you finally retire from your job, how will the 401(k) or other pension plan finances be distributed? What are the federal and state tax consequences of the different distribution options?

May these plans be left with the employer or must one invest it in another plan? If given the choice, which will be best for you and your investment?

As is evident in the above examples, retirement planning does not end at or near retirement. Retirement planning is an ongoing process that a person needs to keep up with if goals are to be met. For those at or near retirement age, the planning process goes from accumulation of wealth to making the right decisions about assets. While one will still continue to accumulate money from investments, one will also be looking at using that money for day-to-day living expenses. The right choices are imperative in order to have the retirement lifestyle one desires.

Summary

In summary, retirement planning is the thought and commitment that is put into providing for income and a satisfactory lifestyle for the later years after one leaves the workforce. Most people will spend an average of 25 years in retirement so careful planning is necessary for this to be a comfortable time (Stefancic, 2003).

Retirement planning should begin as soon as one starts the first job. However, for most, serious plans are not implemented until the 30's or 40's, if at all (Helman & Paladino, 2004). One should make it a habit to invest regularly and not be tempted to use the money allocated solely for retirement.

If one is older and just starting to think about retirement, there are ways to make up for lost time. Starting at a younger age gives one more time to accumulate money but with good investment strategies, one can sometimes manage to make enough money for a comfortable retirement. These decisions should be discussed with a reputable broker.

Retirement income will likely dictate where one will live and whether or not one can fulfill a dream of traveling or relocating. Many might want or need to work well into the retirement years.

When retirement age is reached, one will probably have income from Social Security and possibly a pension. However, this income is likely not enough to support an individual throughout the retirement years. Therefore, adjunctive retirement income sources are necessary for most.

References

Helman, R., & Paladino, V. (2004). Will Americans ever become savers? The 14th Retirement Confidence Survey, 2004. EBRI Issue Brief (268), 1-17.

Jones, B. (2004). Strategies for a successful retirement. Tar Heel Nurse, 66(3), 10-11.

Licari, L. (2004). Plan now for retirement -- MSMS symposium offers help. Mich Med, 103(4), 11.

Moon, S. (2004). Golden years. Hospitals redesigning retirement plans to help get handle on costs. Mod Healthc, 34(33), 10-11.

Silva, a. (2004). Convergence of long-term care planning and retirement planning at the work place. J Aging Soc Policy, 16(2), 85-102.

Smith, K., Toder, E., & Iams, H. (2003). Lifetime distributional effects of Social Security retirement benefits. Soc Secur…[continue]

Cite This Term Paper:

"Financial Planning For Retirement Early" (2004, December 12) Retrieved December 9, 2016, from http://www.paperdue.com/essay/financial-planning-for-retirement-early-60114

"Financial Planning For Retirement Early" 12 December 2004. Web.9 December. 2016. <http://www.paperdue.com/essay/financial-planning-for-retirement-early-60114>

"Financial Planning For Retirement Early", 12 December 2004, Accessed.9 December. 2016, http://www.paperdue.com/essay/financial-planning-for-retirement-early-60114

Other Documents Pertaining To This Topic

  • Retirement Planning for Retirement Can Be a

    Retirement Planning for retirement can be a significant source of anxiety for most people, even those who are currently financially secure. A lack of job security compounds the problem of being able to properly save money for retirement. Mandatory retirement laws make financial planning for retirement even more important, even for the very young. Ideally, I would like to have at least $500,000 in the bank, as cash, for my retirement.

  • Financial Planning Charting the Course

    Goal setting works well for simple jobs -- clerks, typists, loggers, and technicians -- but not for complete jobs. Goal setting with jobs in which goals are not easily measured (e.g., teaching, nursing, engineering, accounting) has posed some problems. Goal setting encourages game playing. Setting low goals to look good later is one game played by subordinates who do not want to be caught short. Managers play the game of setting

  • Advice Soa Financial Planning Purpose of This

    Advice (SOA): Financial Planning Purpose of this document is to prepare a statement of advice (SOA) on the financial planning for David Smith and Brenda Smith to achieve their financial goals. The advice is to communicate important information to clients in order to make informed decision about their financial portfolios. This document is a Statement of Advice or 'SOA' used to explain my advice, and highlights the important points. Please,

  • Retirement Options Almost One Third of American Workers

    Retirement Options Almost one-third of American workers are failing to prepare themselves for a comfortable retirement, according to a new survey conducted by American Express. The national telephone survey of working adult men and women who had recently left or lost their jobs revealed that 30% did not invest for retirement in their company's 401(k) plan. The survey also revealed that 16% of these participants rolled their money into an IRA, and

  • Retirement Planning a Comfortable Retirement Is a

    Retirement Planning A comfortable retirement is a goal for most workers, but ensuring that comfort takes planning and foresight. Planning for retirement is much more complicated than opening a bank account or belonging to an employer-sponsored pension plan. While these are excellent beginnings, workers must plan for any and all events that can and will happen after retirement. Employees not only need to plan for retirement income, but they must also

  • Financial Counseling Profile Tackling Mid Life

    She is well-connected within the community and is confident that her business would be profitable within a year or two. She has a strong, charismatic personality and is also connected to Milwaukee's artistic community through her husband's architectural work restoring some of the city's beautiful historic buildings. She has a considerable portfolio, and occasionally sold stock photos or worked as a wedding photographer when she was in law school. Laura

  • Retirement Imbalances in the United

    Of course, lower income workers have less economic advantage during their worker lives, but when considering retirement benefits, it is necessary to measure them against one's lifetime earnings -- a successful retirement plan is that which allows one to retain the same basic lifestyle, with minimal adjustments, as they did during their working life (Fox 2009). When it comes to Social Security, this perspective quite obviously puts the middle class


Read Full Term Paper
Copyright 2016 . All Rights Reserved