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Hassle-Free Retirement Requires Early Planning
by William Ruhstander
http://www.rxretirement.com
Retirement means many things to many people. Some see
it as the opportunity for a fresh career start. Some see
it as an opportunity for playing more and working less.
Some see it as a time to be with loved ones more often.
Whatever the case, we look forward to feeling like we've
taken back control of how we spend our time and live our
lives.
In the past, you worked for your employer from age 25
until age 65, and you were rewarded a pension which,
combined with Social Security, allowed you to live out
your days in relative comfort. Today, most of us are
expected to work out the details of our retirement
finances ourselves, but we're ill-equipped to do so.
We wonder how to deal with issues of escalating health-
care costs, increasing tax burdens, the uncertainty of
the stock market, and the like. The ideal retirement is
far less certain for most of us that it was for many
of our parents and their contemporaries.
Too many of us deal with this new reality by bemoaning
the loss of the "good old days." A more proactive approach
would be to start saving for your retirement beginning with
your very next paycheck if you haven't started yet. If
you're new to the workforce, begin putting ten percent of
each paycheck into savings to start an emergency fund, and
then continue funding a retirement account with that same
ten percent.
Most employers offer some kind of tax-deferred savings
for their employees. These plans are portable, which means
that you can transfer the funds into a similar account
that is funded by a new employer or privately held. Often,
the company you work for will match (up to a point) the
contributions you make from each paycheck. Self-employed
individuals have other options that they can pursue.
Learn more about your retirement funding options from
the human resources department at work, government
publications, insurance and securities salespeople,
tax professionals, and other kinds of financial
planning professionals.
Retirement plans for public servants often hold
investments in both securities and income-producing
real estate. There's absolutely nothing preventing you
from doing the same with your retirement funds. While
real estate is a little more "labor-intensive" for most
of us, it also has the advantages of being able to finance
your investment with other sources and giving you
significant tax breaks that aren't available from your
stock portfolio. Plus, you don't have to sell your asset
in order to have the money when you need it, if you invest
smart. If you want to be a smart real-estate investor, find
a smart real-estate investor, not necessarily a realtor,
that is willing to show you how.
Now is the time to start planning your retirement
finances! Commit to using a tenth of every paycheck for
savings or investment in a vehicle that produces capital
gains or income (preferably both). An early start, a
thorough education, and accepting responsiblity for your
future can help you to live out your retirement years
worry-free!
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