Determining how big of a nest egg you will need to generate enough retirement income is the most commonly asked question when it comes to retirement planning. There are many rules of thumb to calculating your retirement number. I have read articles that say to calculate your retirement account size, simply take 80% of your current income and multiply it by 25. These basic retirement goal calculations are OK, because it gives you a goal to target. However, I will give you a more targeted 6 step approach to calculating your nest egg and better set your retirement goals.
When visiting with a financial planner that you are considering working with, treat the initial meeting as a mutual interview. The financial planner should ask you about your current financial situation, financial goals and your personality as it relates to investing. By getting to know your financial situation, the financial planner can begin to formulate an investment strategy that is specific to your needs. At the same time, you should be prepared to ask questions that will allow you to determine if you would feel comfortable working with this financial planner.
Why is it important to enroll in a Medicare Prescription Drug (Part D) Plan as soon as I enroll in Medicare?
Individuals who choose not to join a Medicare Part D prescription drug plan when they are first enrolled in Medicare may have to pay a Late Enrollment Penalty every month for the rest of their lives when they eventually do join a Medicare Prescription Drug (Part D) plan.
If you're married, a combination of trusts, often referred to as A/B, or A/B/Q trusts, may be useful for estate planning purposes. The combination of trusts can sometimes be used to minimize total estate tax for two spouses, and can provide non-taxed benefits as well.
Honorably discharged veterans who have limited incomes and nonservice related health problems may be eligible for a pension from the Department of Veterans Affairs.
To be eligible for this pension, you must be age 65 or older, or you must be permanently and totally disabled; you must have limited income and assets; and you must have served a minimum of 90 days of active duty with at least one day of active duty during wartime. If you entered active duty after September 7, 1980, you must have served at least 24 months, or the full period for which you were called to active duty.
No matter how many years you are from retirement, it's essential to have some kind of game plan in place for financing it. With today's longer life expectancies, retirement can last 25 years or more, and counting on Social Security or a company pension to cover all your retirement income needs isn't a strategy you really want to rely on. As you put a plan together, watch out for these common myths.
Deciding when to begin receiving Social Security benefits is a major financial issue for anyone approaching retirement because the age at which you apply for benefits will affect the amount you'll receive. If you're married, deciding when to retire can be especially complicated because you and your spouse will need to plan together. Fortunately, there are a couple of strategies that are available to married couples that you can use to boost both your Social Security retirement income and income for your surviving spouse.
Many people assume they can hold off saving for retirement and make up the difference later. But this can be a costly mistake. Waiting too long to start saving can make it very difficult to catch up, and only a few years can make a big difference in how much you'll accumulate. This doesn't mean there's no hope if you haven't set aside anything for retirement yet. It just makes it all the more important that you implement a plan today.