# Thinking about retirement???



## Scribbler33 (Jul 26, 2012)

Every sensible person knows how important it is to plan for your retirement. After all, that is what many of us look forward to in the future. The day when we finally quit our jobs, live on our pension, and travel the world. However, retirement planning books and even advisors are always very focused on the cost and the money involved for retirement.

While this is definitely an issue, itâs not the only one. Before you even begin your retirement planning, there are some crucial questions you might want to ask yourself so you can be sure that youâre heading in the right direction.

*Question 1: When Would You Like To Retire?*

For some people, this question doesnât even cross their minds. After all, the typical retirement age is 65 and thatâs that. But have you ever thought about retiring earlier? Thereâs a acumen why itâs alleged retirement planning, and you can plan every aspect of your retirement, which includes at what age you wish to retire. If itâs your dream to retire at 50 or even at 40, again donât be shy if it comes to cogent your banking advisor. After all, itâs his job to advice you ability your banking goals.

Planning if you will retire affects the projected figures, such as how ample your accumulation can grow, how abounding years you accept larboard to save, your Social Security benefits, and aswell your alimony benefits. If your artist says that itâs difficult to retire aboriginal because your salary, it is still accessible to acquire added banknote through a ancillary business. This ability just be your admission to an aboriginal retirement.

The important thing is, to establish when you want to retire, and when you can retire. You have from now until retirement to find ways to reconcile the two points.

*Question 2: Where Would You Like To Retire?*

Here is what you need to visualize next: whereâs the perfect place for you to retire? Different locations have different cost of living. If youâre a New Yorker, retiring in the bustling city of New York is considerably more expensive than retiring in the suburbs. In the same way, retiring in laid back Florida is still more expensive than retiring in an exotic, but third world country.

If you choose a retirement place that has a lower cost of living, you may achieve your retirement goals faster.

*Question 3: How Much Is Enough?*

And here comes the million dollar question â cost. Most of us are hindered by finances so this is definitely an area that should be tackled. First of all, take a look at your budget. What kind of lifestyle are you living right now? Are you the type that loves to eat out, go to the spa, play golf, or spend a weekend in another city?

Simple as these questions may sound, they determine much of how your retirement planning will go. If you want your retirement to go how you imagine it, then you better ask yourself these questions before you even begin taking a step forward towards your retirement.

So what you all think about this???

What kind of retirement would you like to have???


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## where I want to (Oct 28, 2008)

Ah but the rules keep changing so planning is hard for those not blessed with a lot of where-with-all. 

We'll have to bring back that old Depression era song-

The rich get richer and the poor get poorer,
But in the meantime, in between time, ain't we got fun?


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## emdeengee (Apr 20, 2010)

I spent a lot of time researching the "how much is enough" question. Lots of very complex answers. I took the advice of my favourite financial expert and broke it down. It all depends on your debt situation. Retiring with no consumer debt and no mortgage is vital. As for income. If you want to live a comfortable life and one where you can do some of the things you always wanted to do then you need to have a retirement income that totals 70% net of what you were making netbefore retirement. So if you were making $50,000 a year net then your gross retirement income would have to be at least $35,000 a year net. More pension of course is always better but so is a hefty savings account.


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## tarbe (Apr 7, 2007)

emdeengee said:


> If you want to live a comfortable life and one where you can do some of the things you always wanted to do then you need to have a retirement income that totals 70% net of what you were making netbefore retirement.


I think the 70% rule might apply to "average" wage earners. But for folks well below or above average, the percentage will likely need to be adjusted.

What I make now does not necessarily have any bearing on the level of income I need to generate in retirement. What I need to generate in retirement is completely dependent upon what I plan to spend in retirement, and how long the pile needs to last. 

What I spend in retirement may or may not have any correlation to what I made while working. In fact, there could actually be an *inverse* relationship....here's how: 

I will have a paid for house on 85 paid for acres when I retire. My housing expense will be low.

I will have two relatively new vehicles, paid for, when I retire. My auto expense will be low.

My house will likely have a whole house solar array and a masonry heater. My utilities will be low.

All these things cost money up front...but they reduce my cash outlay in retirement.

When I retire, I expect I will be able to live on 25% of what I currently make.


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