| There has always been a need for retirement | | | | my author box below that will help you figure it out |
| planning and today is certainly no different. There are | | | | for yourself. This is a helpful tool that lets you see if |
| 401(k)s and many other types of retirement plans | | | | you are on track or not. Don’t forget that life |
| that are available to you. You will need to take the | | | | expectancy is getting longer. When Social Security |
| time needed to evaluate what your current financial | | | | was passed in the 1930s people lived about 2 years |
| needs are and what you expect the future to hold. | | | | after retirement. Today you can expect to live 20-30 |
| Recent events, such as the rise in energy costs and | | | | years past retirement and, suddenly, the amount you |
| the ever-skyrocketing health care costs need to be | | | | need to retire comfortably with a major change in |
| factored in. Although gas prices have been fluctuating | | | | lifestyle gets very large. |
| lately, I think they are going to go back up, possibly | | | | Lets say that today you need $40,000 to live on and |
| even surpassing the extremes we saw all too | | | | you retire in 20 years, you will need a minimum of |
| recently. These types of events can take a toll on | | | | $850,000 to carry you through retirement. That is |
| your retirement plan very quickly. Prudent planning | | | | assuming that you will live an additional 20 years after |
| begins early and you need a good source of | | | | you retire and are in good health. There is something |
| information. Websites like [ are an excellent resource | | | | to be said for debt reduction as being part of your |
| to go to find answers to the questions you may | | | | retirement planning, as well, since the last thing you |
| have. | | | | want to do is go into retirement with a ton of debt |
| Did you know that most retirement plans have a | | | | still hanging over your head. |
| ceiling of 10% of your pre-tax wages that you can | | | | Having $40,000 a year to live on with little to no |
| contribute? While that may sound good when you | | | | debt will obviously go farther than if you still have |
| view it against a 2% inflation rate, you must keep in | | | | the same debt load as you do now. If you reduce |
| mind that your planning today is not just for the ideal | | | | your debt load by the same amount that you save |
| future, but the future that will be reality for you if | | | | for retirement, you double your retirement savings. |
| things turn out to not be ideal or according to your | | | | One cannot have a conversation about retirement |
| plans today. | | | | without the subject of taxes coming into it. The |
| By starting early and contributing the maximum that | | | | money you put into your 401(k) is pre-tax so you will |
| you can afford, you will have a better chance of | | | | pay taxes on it when you get disbursements. The |
| being prepared for the unforeseen. This is made | | | | 401(k) is intended for retirement, so there are also |
| much easier today because your 401k plan is now | | | | very heavy tax penalties if you withdraw any funds |
| transferable from one employer to another. This | | | | before you turn 59.5 years of age. If at all possible, |
| allows you to continue to grow your retirement | | | | do not make any early withdrawals from your |
| account even when you choose to change jobs or | | | | retirement account, since most people have found |
| even careers. | | | | that in addition to the heavy tax penalties for doing |
| Unsure of what you will need for retirement? There | | | | so, the prospect of paying it back, even with good |
| are calculators like the one at my site as shown in | | | | intentions, is tougher than it seems. |