| Q.How do
I know if my employer or self-employment retirement plan
will be adequate at retirement? A. Get all the facts about your retirement plan that are
available. Find out what investment is being used to fund
your account, what the average interest return is, what the
cost of the investments are in your account, how much is
going into your account every month, if your money is compounded
or simple interest. Know how many years you have left to
retire, decide how much you will need at retirement. Remember
inflation can reduce today's income by a substantial amount
in 20 to 30 years.
Now go to the Retirement Calculator at: MsFinancialSavvy.com
to find out what your estimated monthly payout will be at
retirement.
Q. What retirement plans are there other than Social Security?
A. As mentioned before, there are employer retirement plans
which consist of, the 401k plan, the 403b plan, the Deferred
Compensation plan and others. For self-employment plans there
are the SIMPLE-IRA, THE SEP-IRA (SIMPLIFIED EMPLOYEE PENSION
PLAN), KEOUGH, and others. For individuals there is the IRA
(Individual Retirement Account), and the ROTH IRA. These
should be used as your major retirement plans, while Social
Security should be used as a minor or supplemental plan.
Q. Can you give me a guide to retirement financial planning?
A. Consider the following as a very simple guide to retirement
financial planning;
At What age do you want to retire?
Start funding your retirement account as early as possible.
Decide if you want your house paid for, at or near retirement?
Find out how much you will get (estimated) from Social Security
at the time of retirement, by contacting the Social Security
Department by phone or the website at www.ssa.gov.
Figure out how much you must place (monthly) in your employer
retirement fund or your self-employment fund to reach your
retirement goals. ecide what bills you need to pay off before
you retire. Start planning to pay off bills at least five
years before your planned retirement date.
A few years before you retire, decide if you want to or
will need to work part-time. Start looking into part-time
job opportunities for retirees.
A few years before your retire start looking into volunteer
opportunities with organizations you may be interested in.
Every 3-5 years evaluate your retirement plan to make sure
you are on track to a healthy retirement!!
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