How to Afford Retirement

With 401(k)s and other retirement accounts in shambles, many are wondering how they will afford retirement. This is especially true for those closest to retirement age. There are strategies, however, that can make retirement more of a possibility. Following the steps in this article will bring you closer to affording retirement.

Difficulty: Moderately Easy

Instructions

1. Consider retiring in a low tax state.
   
   Not all states are created equal when it comes to income taxes. In fact there are seven states - including the popular retirement states of Texas, Nevada and Florida - have no income tax at all. Seeking out a lower tax or no tax state can make retiring more affordable.

2. Consider retiring in another country.
   
   Retirement will be more affordable in countries where the US dollar stretches further. Examples are Nicaragua and Mexico. In some locations it may even be possible to retire on what would only be considered a part-time income in the United States. Retiring internationally will create some additional challenges, such as health care, but for the right retiree it might make sense.

3. Scale back your career, but don't retire.
   
   In some professions it is possible to scale a career back to part-time, but not retire entirely. Employees will want to check with their supervisors and human resources department to see what the options are. Self-employed workers and business owners can begin outsourcing duties to free up time.

4. Take a part-time job.
   
   For those who don't want to remain in their careers, a part-time job in something new could mean the difference between retiring or not. In addition to making retirement affordable, this is an opportunity to explore new interests.

[imme911]

on 8/2/2009 This is one I really needed. 5* and a recommend