Retirement ? Its Sooner Than You Think!! (Honestly)

Many people hear "retirement" and think- what? 401K? Roth vs. Traditional IRA? Stocks, bonds, mutual funds? Do they?

Or do many people put money away according to the suggested amount and then simply hope that when retirement comes all will work out?

One report I read estimated that 66 million Americans have put away a Whopping $0 towards retirement.

Many people are still thinking there might be a thing called Social Security around when they retire. Social Security: as of 2004, the average annual Social Security retirement benefit is approximately $11,000. That is not a lot to live on folks. Plus, we all hear the news periodically that there might not be any Social Security around when we get older and need it.

And as a further WAKE UP call, I found a calculator which estimated (without Social Security):

• a couple at 40

• bringing in $90k a year (together)

• with very modest investments

would need to save an additional $2,690,000.00 ( yes 2 million +) in order to retire at 65-- OR ? plan on working an additional 29 years!!

Now before you get overwhelmed and click over to another article-lets put our heads together and simply cover a few very very basic start up basics.

1) Standard Of Living: You need to know at what standard of living you will want to live during retirement.

2) Basic Living Expenses: You will need to calculate the cost of basic living expenses (at that level) i.e. electric bill now of $200 = what in 2030?

3) Hobbies and Leisure Activities: Know what type of hobbies, and leisure activities you will keep busy with and what their cost might be then.

4) Family Visiting / Travel: Realize that more and more children move away when grown. So while they work out of state-YOU may need to do the traveling to see them. Plan for these costs.

5) Convalescent Care (nursing home costs) provincially run about $100/day median. You will need to multiply that times the same 4% inflation rate. Then multiply that times the number of years before you may need it-to approximate how much you may need to afford for your housing when you need assistance. Truth be known-WE need to plan to handle that cost ourselves, rather than think our children will be able to take on that kind of additional cost.

You will need to total yearly amounts. You will need the approximate yearly cost to live (at your desired level) during regular healthy retirement. And, you will need the total yearly amount of costs to live in assisted or full care living facilities ( for each ? you and mate).

Multiply each yearly amount by the number of years you might be living in that circumstance. Example: Retire at 65. Live healthy retirement- 15 years (so 15 x yearly cost of healthy living) . Live assisted ? 8 years ( so 8 x yearly cost of living in care).

You now have two totals that when added together equal your estimation of the total dollar amount you will need to draw from in order to live after retiring. NOW you are ready to begin planning your investments in such a way that you can achieve that TOTAL number by the time you retire.

Here are some tools to help you now that you are ready to take that first step:

USA Today retirement cost calculator: http://www.calcbuilder.com/cgi-bin/calcs/RET2.cgi/usatoday

Motley Fool's retirement area: http://www.fool.com/retirement.htm?source=PFinAg

Metlife's retirement area: http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,1674,P1946,00.html

About.com's HUGE retirement resource area: http://www.retireplan.about.com/

Until next time-all the best,

Kate

About The Author

Kate Hufstetler is a well established Personal Life Coach. Her clients come from both the United States and overseas. She offers coaching services via email and phone consultations. For more information and current highlights please visit: http://www.comedreamwithme.com/start_today.html

Kate@comedreamwithme.com

---

Seven Investment Terms Everyone Should Know

For those who have never given their financial future a... Read More

Investors: Avoid These 5 Common Tax Mistakes

For many investors, and even some tax professionals, sorting through... Read More

Retirement ? Its Sooner Than You Think!! (Honestly)

Many people hear "retirement" and think- what? 401K? Roth vs.... Read More

Stock Market Money Management Skills

Let's start by saying: You can't be afraid to take... Read More

Investing Pointers for Neophyte Investors

If you know next to nothing, how do you go... Read More

Investment Rowing

You have rowed a boat at some time haven't you?... Read More

Annuity Help

Many people today are looking for annuity help. The biggest... Read More

Before You Start Investing

There maybe several reasons why you to want to invest... Read More

Invest To Make Money, Not To Get Rich

The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More

The Cost of Green Eggs and Ham

Young readers know that March 4th is the birthday of... Read More

Reasons For Joining An Investment Club

Whether you're a novice investor or an experienced stock picker... Read More

Sell Discipline for Investors: Importance and Execution

Investors usually don't have an aversion to buying an asset.... Read More

Stock Market Horizons: Gold $3,000, Oil $70

In the last two decades, even though gold prices have... Read More

Holy Grail Investments

Every year I go to the Money Show in Orlando,... Read More

Going Against the Conventional Investment Wisdom

First of all, I want to give everyone the disclaimer... Read More

Making Every Penny Count

More and more workers are leaving their jobs and taking... Read More

How To Start Investing For Financial Independence, Part 1

Today, I am going to start a multi-part series about... Read More

Justify Social Security ... Dont Save for Retirement

It is a common question when investors review their retirement... Read More

What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market?

Seniors on fixed incomes face a unique problem. Where do... Read More

Mutual Fund Returns May Not Be As They Seem!

Arthur Levitt, during his tenure at the SEC, experienced many... Read More

5 Ways To Protect Your Bond Portfolio From Rising Interest Rates

The Federal Reserve recently raised its target federal funds rate... Read More

Forex market offers opportunity and information

The forex market is what is called an international exchange... Read More

Trading For A Living - Part 2

In part 1 of this article I started to look... Read More

Brain Snappers and Other Wall Street Nonsense

The last time you spoke with your broker did he... Read More

The Real Cost of a Bad Habit

What is the value of a good habit? Think of... Read More

In a Time of Need

As I take my leisurely walk with my dog through... Read More

Need To Trade!

You don't HAVE to be trading.As a novice trader, you'll... Read More

To Retire Rich, Save and Invest Early

If you want to retire rich, start saving investing early.... Read More

Angels Investors and Their Networks

What is an Angel Investor? An Angel is usually a... Read More

Mutual Fund Selection Made Simple By Indexing!

Non-indexed mutual funds try to keep it secret that actively... Read More

Index Trading Weekly Update

Here is a sample of the last newsletter:SP500 Last Signal... Read More

Day Trading Strategy or Stock Trading Software? The Way You Pick Stocks Affects Your Results

The trading method you employ to approach the stock market... Read More

Discipline in Trading and Investing

The one thing I can think of that most affects... Read More