© 2007 Midwest Financial Services, LLC
Ah, the time most of us are looking forward to when we hope to stop working and live the good life. Yet with all the challenges facing retirees, planning for retirement needs to happen early in life. If not, you may be forced back to work.
The Golden Years
Plan for tomorrow, live for today.
Challenges
As the economy and retirement plans have changed, retired people have more and more
challenges they face. Challenges we face but cannot control include such things
as inflation, government policy, rising health care, longer life expectancies and
the economy. Over 40% of retirees have had to go back into the work force because
they did not have a plan to overcome these obstacles.
Saying goodbye to Pensions
With the change in the economy many employers have shifted from a pension, also called
a defined benefit plan, to a defined contribution plan such as a 401(k). The advantage
of this type of plan is that it takes control of the plan from the employer and gives
it to the employee. Many retirees have found out pensions are not secure because
the benefits are paid from general funds held by the employer. It is important to
understand what type of group retirement plan you have.
Taxes, Taxes, Taxes
Knowing how your retirement accounts will be taxed gives you a great advantage once
retirement nears. Taking advantage of tax deferred accounts and tax advantaged accounts
can allow you to keep more of your funds.
Review
80% of us have not even calculated how much we will need at retirement. Reviewing
your retirement plan and goals will allow us to enjoy retirement instead of worrying
about how to survive.
Resources