Free Retirement Advice
Retirement is a time that many working professionals look forward to. It is a time to move away from work and enjoy the fruits of your labor. Many people spend decades working and saving so they can afford retirement. Most people in the United States retire between ages 62 and 67, according to the Social Security Administration, and as of early 2011, the retirement age is increasing.
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Finances
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Long before you can retire, you should start preparing yourself financially to retire without having to worry about running out of money. There are a number of ways to invest and save your money to use when you retire. Traditional investments in stocks or mutual funds are one way people invest their money. Successful investments earn a significant amount of money over time, though the success of an investment depends heavily on market fluctuation. A $10,000 dollar investment in 1990 was worth an average of $83,194 just 10 years later, according to A to Z Investments. Other ways to invest money for retirement include participating in your employer's 401k program, especially if the employer matches contributions. Individual Retirement Accounts (IRA) are another option. Learn about your company's pension plan, if one is offered. The earlier and more you invest and save, the more financially secure you will be at retirement.
How Much Money?
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A lot of people often wonder if they are saving enough for retirement, or are confused about how much they need. The answer varies; if you are used to living lavishly and wish to continue that lifestyle during retirement, then you will need more than someone who can live frugally. Also, if you already own your house in full and have no mortgage payment, you can live comfortably off less money than someone paying rent or mortgage payments. A number of online calculators will help you determine how much you should save each month (see Resources). According to CNN, a base suggestion is to save 10 percent of your income each year, but if you are starting later in life or would like to have millions of dollars at retirement, you need to save more.
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Free Time
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With retirement comes more free time to do the things you always imagined you would do if you were not tied down to a job. However, some retirees have problems coping with the new found free time. Relax, travel, read or take on hobbies. Spend more time with your friends and family. If none of those ideas help, spend time volunteering or working a part-time job doing something you are passionate about. The schedule will help you cope with all of the time you have, and the responsibility will relieve you of anxiety or boredom. Plus, if you are being paid, the extra money helps you pay the bills.
Location
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One advantage to retiring is the ability to move anywhere you want, as you are no longer bound to a certain area by your work. If you can afford the move and are looking for a change or adventure during retirement, consider moving to a place you always wanted to live. CNN Money lists the 25 best places to retire in 2010, based on climate, activity, outdoor recreation, culture and economy. Durham, North Carolina, is at the top of that list. Other places include Hanover, New Hampshire; Lexington, Kentucky; Prescott, Arizona; and Bellingham, Washington. Or, consider some place more exotic, like Costa Rica, Mexico, or the South of France.
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References
- U.S. Social Security Administration: The Full Retirement Age is Increasing
- U.S. Department of Labor: Top 10 Ways to Prepare for Retirement
- A to Z Investments: Average Return on Investment
- CNN: How Much do I Need to Save?
- Retirement Online: After Retirement Anxiety and Depression
- CNN Money: 25 Best Places to Retire
Resources
- Photo Credit Woman in Front of an Old Chalkboard image by Empath from Fotolia.com
