It is a fact that we will reach a point in our lives where we all need to retire from our professions. You dream of a life where you will just enjoy traveling and having fun for the remainder of your life but keep in mind that there is a cost that comes with it. Remember that you won't have regular income coming in and your expenses will just keep on pouring in. This means that we need to plan on how to save our money in a systematic way in order to enjoy it later on. Most individuals ask themselves why they need to have retirement planning. This is important because you need some sort of security when you reach the age of retirement. You can start to have one as early as your twenties. If you plan your finances at an early point in your life, you are most likely to have fewer financial commitments. You will be able to have a huge bank of resources by the time you retire when you start early.
It is always beneficial if we have extra credits for surprises. We must consider the inflations when we really want to enjoy life when we get old. What we earn now no matter how big it might be, could just be enough when our time to retire comes. Focusing on this plan would require intensive process and wise planning for years. Many people know that taking this plan seriously means being persistent with the process as well. Managing a retirement is a continuous obligation even until it is already attainable. It would require the planner's patience and wise management.
It would be a waste someday during our non working days to live a life that we cannot enjoy because we don't have enough savings. We all know how hard and tedious it is to work tirelessly. We need to have a vision of ourselves harvesting the fruits of our labors. Having a pleasurable vision of our retired selves on how we will live our lives someday could help us pursue and endure our tasks. If we think of it thoroughly, it's not only us that would benefit from succeeding the plan, most especially our children. All we need are inspirations that would give reachable advantages to us.
Another time, a 55 year old retires from his company with a million dollars in a retirement plan. The advisor recommends using an IRC Code 72(t) election for the entire million dollars. Only a fraction of that money was needed for cash flow between ages 55 and 59. The result of the faulty advice was unnecessary massive acceleration of income taxes between ages 55 and 59. The appropriate response would have been to make an IRC 72(t) election for part of the IRA, not all of it.
Not long ago, I was talking to a registered investment advisor or what is known as a financial planner. No, it wasn't mine rather I met the individual in passing at the local Starbucks. In talking about all the ongoing educational requirements and all the new regulations in that financial sector I realized how difficult it was for the practitioners to deal with their clientele.
You see, everyone is so sketchy with their personal information, and so busy hiding everything so that it won't get stolen from identity thieves, hackers, or the next fraudulent scam artist that they don't always give the financial planner all the information they need to make a competent decision and come up with a workable strategy. Of course, you cannot do retirement planning unless you ask all the questions, and those questions must be answered by the client truthfully and honestly. If not, everyone is wasting their time and it would be impossible to come up with the best possible plan.
You turn 50, what's the big deal? It's just a number right? Perhaps, but when you go to your mailbox and you find that retirement association envelope inviting you to join their club and enjoy discounts only reserved for, well, those in their declining years. It's a rude awakening; a kick the gut.If this sounds familiar, don't despair, you're in good company. Thousands are waking up to this reality every day. So what do you do now? Well, for starters, make darn sure that you have a good plan for getting to retirement with a decent nest egg to be able to enjoy your golden years. For those of you that need the professional help of a retirement planner, this article is for you. Everyone else, take a look at my other article titled "The "do it yourself" retirement planner".
Of course, the financial advisor can indeed advise against it, but there is no way they can stop the individual from making a stupid decision or investing in a bad financial vehicle. It happens all the time. Worse, often these folks get themselves into trouble, lose a huge amount of their money, and then they call a financial advisor to help them fix everything. Unfortunately, often it becomes too late, and they just don't have enough money in their nest egg to retire on schedule or live comfortably in that retirement.If they only have a little bit of money left over after a bad financial hit, often the financial consultant doesn't even want to deal with them because the cost of compliance in taking on a new client is just too great, and there's not enough commission or fees to make it worth their while. Be sure to be honest with your strategic retirement planning expert. Indeed I hope you will please consider all this and think on.
It is always beneficial if we have extra credits for surprises. We must consider the inflations when we really want to enjoy life when we get old. What we earn now no matter how big it might be, could just be enough when our time to retire comes. Focusing on this plan would require intensive process and wise planning for years. Many people know that taking this plan seriously means being persistent with the process as well. Managing a retirement is a continuous obligation even until it is already attainable. It would require the planner's patience and wise management.
It would be a waste someday during our non working days to live a life that we cannot enjoy because we don't have enough savings. We all know how hard and tedious it is to work tirelessly. We need to have a vision of ourselves harvesting the fruits of our labors. Having a pleasurable vision of our retired selves on how we will live our lives someday could help us pursue and endure our tasks. If we think of it thoroughly, it's not only us that would benefit from succeeding the plan, most especially our children. All we need are inspirations that would give reachable advantages to us.
Another time, a 55 year old retires from his company with a million dollars in a retirement plan. The advisor recommends using an IRC Code 72(t) election for the entire million dollars. Only a fraction of that money was needed for cash flow between ages 55 and 59. The result of the faulty advice was unnecessary massive acceleration of income taxes between ages 55 and 59. The appropriate response would have been to make an IRC 72(t) election for part of the IRA, not all of it.
Not long ago, I was talking to a registered investment advisor or what is known as a financial planner. No, it wasn't mine rather I met the individual in passing at the local Starbucks. In talking about all the ongoing educational requirements and all the new regulations in that financial sector I realized how difficult it was for the practitioners to deal with their clientele.
You see, everyone is so sketchy with their personal information, and so busy hiding everything so that it won't get stolen from identity thieves, hackers, or the next fraudulent scam artist that they don't always give the financial planner all the information they need to make a competent decision and come up with a workable strategy. Of course, you cannot do retirement planning unless you ask all the questions, and those questions must be answered by the client truthfully and honestly. If not, everyone is wasting their time and it would be impossible to come up with the best possible plan.
You turn 50, what's the big deal? It's just a number right? Perhaps, but when you go to your mailbox and you find that retirement association envelope inviting you to join their club and enjoy discounts only reserved for, well, those in their declining years. It's a rude awakening; a kick the gut.If this sounds familiar, don't despair, you're in good company. Thousands are waking up to this reality every day. So what do you do now? Well, for starters, make darn sure that you have a good plan for getting to retirement with a decent nest egg to be able to enjoy your golden years. For those of you that need the professional help of a retirement planner, this article is for you. Everyone else, take a look at my other article titled "The "do it yourself" retirement planner".
Of course, the financial advisor can indeed advise against it, but there is no way they can stop the individual from making a stupid decision or investing in a bad financial vehicle. It happens all the time. Worse, often these folks get themselves into trouble, lose a huge amount of their money, and then they call a financial advisor to help them fix everything. Unfortunately, often it becomes too late, and they just don't have enough money in their nest egg to retire on schedule or live comfortably in that retirement.If they only have a little bit of money left over after a bad financial hit, often the financial consultant doesn't even want to deal with them because the cost of compliance in taking on a new client is just too great, and there's not enough commission or fees to make it worth their while. Be sure to be honest with your strategic retirement planning expert. Indeed I hope you will please consider all this and think on.
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