Retirement? What You Need To Know About It Before You Do

Retirement? What You Need To Know About It Before You Do
Final Arrangements Network

Retirement Planning and Your Future

Each of us must determine what it is we want to do with this so worked for time in our lives. So many dreams, hopes and goals are never realized because, as much as we think and say we have plans for retirement, we rarely do much about it.

Retirement Planning

Fact - Less than half of Americans have put aside money specifically for retirement.

You can't retire with security unless you really prepare for it. That means facing up to reality, and beginning to take action for tomorrow as well as today.

Fact - In 1993, of those who had 401(k) coverage available, one-third didn't participate.

Putting away money for retirement is like giving yourself a raise. It's money that gives you freedom when you want it-and deserve it.

Fact - The average American spends 18 years in retirement.

The information from the following companies and organizations may help you get a focus on ideas and direction you wish to take, but as we said, it really is up to you to determine what it is you want this period of time to be. After all, you earned it.

If you have found something that makes sense to you please write us and share.

Retirement Idea Email Hotline

Remember, we are all going to face this period and we all could use as much help in doing it right as possible.

10
WAYS
to beat the clock
and prepare
for retirement

1
Know your retirement needs.

Retirement is expensive. Experts estimate that you'll need about 70% of your pre-retirement income-lower earners, 90% or more - to maintain your standard of living when you stop working. Understand your financial future.

2
Find out about your Social Security benefits.

Social Security pays the average retiree about 40% of pre-retirement earnings. Call the Social Security Administration at 1-800-772-1213 for a free Personal Earnings and Benefit Estimate Statement (PEBES).

3
Learn about your employer's pension or profit sharing plan.

If your employer offers a plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one. Before you change jobs, find out what will happen to your pension. Learn what benefits you may have from previous employment. Find out if you will be entitled to benefits from your spouse's plan. For a free booklet on private pensions, call the U.S. Department of Labor at 1-800-998-7542.

4
Contribute to a tax-sheltered savings plan.

If your employer offers a tax sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, deferral of taxes and compounding of interest make a big difference in the amount of money you will accumulate..

5
Ask your employer to start a plan.

If your employer doesn't offer a retirement plan, suggest that he/she start one. Simplified plans can be set up by certain employers. For information on simplified employee pensions, order Internal Revenue Service Publication 590 by calling 1-800-829-3676.

6
Put money into a Individual Retirement Account.

You can put thousands of dollars a year into an Individual Retirement Account (IRA) and delay paying taxes on investment earnings until retirement age. If you don't have a retirement plan (or are in a plan and earn less than a certain amount), you can also take a tax deduction for your IRA contributions. IRS Publication 590 contains information about IRAs.

7
Don't touch your savings.

Don't dip into your retirement savings. You'll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer's retirement plan.

8
Start now, set goals, and stick to them.

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement saving a high priority. Devise a plan, stick to it, and set goals for yourself. Remember, it's never too late to start. Start saving now, whatever your age.

9
Consider basic investment principles.

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you'll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand in hand.

10
Ask questions.

These tips should point you in the right direction, but you'll need more information. Talk to your employer, your bank, your union, or a financial advisor. Ask questions and make sure the answers make sense to you. Get practical advice and act now.

IT'S NEVER TOO LATE TO START

Start young. A look at the performance of $2,000
retirement plan investments over time at 4%
shows the value of starting early.

AGE	1995 Dollars grow to
30	$2,000
40	$24,012
50	$59,556
60	$112,170

Besides the above government agencies, many private organizations may be helpful.
For additional information, you may want to contact one of the following groups: