With the average age of retirement being 63, it would make sense to assume that the time for traveling may perhaps be over. But this certainly doesn’t have to be the case as, when retired, you have a huge amount of something the majority of working people don’t have: time!
So why not use this time to do the traveling you always dreamed of? In fact, statistics have shown a dramatic increase in traveling amongst those aged 50 and over, with the stereotype that young people are the only ones who travel being surely challenged. If you’ve always wanted to wander the world but have always found an excuse not to, your retirement could be the answer! Read on to discover some tips on how to best pay for traveling and use your retirement to your advantage.
This is a preview of
Retirement Travel: Ways to Wander the World When You Have More Time Than Money. Read the full post (524 words, estimated 2:06 mins reading time)
Making the proper investment choices for your future retirement is an important step in making your later years enjoyable. Early planning can make it more likely that you will be able to maintain or even improve your lifestyle as you move towards retirement. Here are some investments to consider adding to your investment portfolio.
Self directed IRA
One of the things to consider when you plan on living in retirement for the rest of your life, is what are your means of support financially. Besides your own savings in the bank or from your IRA or 401K, where else do you plan on getting the money that you’ll need while you’re living out your golden years in retirement?
Social Security retirement benefits are the largest source of retirement income for people over 65. Every employee contributes to Social Security while they are working. The contribution is automatically deducted from the worker’s paychecks, and is matched by the employer, deposited into a fund, and managed by the government. The fund pays retirement benefits and also survivor and disability benefits. How much you get depends on how much you put in.
The notion of Senior Retirement Living is often meant to describe retirement communities occupied by those aged 60 and over. These senior retirement options are no longer just destinations for those seniors looking to slow down. In fact, many of the current trends suggest the opposite to be true. More than 77 million baby boomers will reach retirement age in the next 20 years, and people are heading to senior communities with outdoor clubs more typical of the college campus than the traditional senior retirement living community. People over 60 are also choosing to move earlier than ever to senior communities for security, personal safety, transportation, services, and to be closer to peers who share their passion for life.
Do you know what it takes to work towards a secure retirement? Use this retirement financial calculator to help you create your retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement. Social security is calculated on a sliding scale based on your income. Including a non-working spouse in your plan increases your social security benefits up to, but not over, the maximum.
How quickly things change. All of a sudden, being a Baby Boomer means you’re probably in your 50s, your kids have probably left the nest and are (hopefully) self-supporting. You’re probably at the highest income level of your career, and can really focus now on building your retirement assets. You now need to consult with retirement financial advisors.
To take stock of how you’ve done so far on planning for your retirement, first prepare a realistic estimate of what your expenses are likely to be during retirement. While many retirement financial advisors recommend using a percentage of your current income, this isn’t a very accurate method because it doesn’t take into account the diversity in personal lifestyles and financial situations.
One of the most critical and frequently overlooked issues in retirement planning comes after most people have retired. Beginning on the April 1 occurring after you reach age 70 ½, you must begin taking minimum distributions from your retirement plan. How you structure these distributions can have a profound effect on your own retirement and even more on what you leave your heirs.
There are some basic retirement planning steps you can take to get the most out of your retirement plan. Failing to follow these basic strategies could wind up costing you and your heirs many thousands of dollars in unnecessary taxes. A case study of how poor retirement planning can cost one’s heirs appears at the end of this section.