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Plan Now for Worry-Free Retirement
by William Ruhstander
http://www.rxretirement.com
Retirement means many things to many people. Some see
it as the opportunity for a fresh career start. Some see
it as an opportunity for playing more and working less.
Some see it as a time to be with loved ones more often.
Whatever the case, we look forward to feeling like we've
taken back control of how we spend our time and live our
lives.
In the past, you worked for your employer from age 25
until age 65, and you were rewarded a pension which,
combined with Social Security, allowed you to live out
your days in relative comfort. Today, most of us are
expected to work out the details of our retirement
finances ourselves, but we're ill-equipped to do so.
We wonder how to deal with issues of escalating health-
care costs, increasing tax burdens, the uncertainty of
the stock market, and the like. The ideal retirement is
far less certain for most of us that it was for many
of our parents and their contemporaries.
Too many of us deal with this new reality by bemoaning
the loss of the "good old days." A more proactive approach
would be to start saving for your retirement beginning with
your very next paycheck if you haven't started yet. If
you're new to the workforce, begin putting ten percent of
each paycheck into savings to start an emergency fund, and
then continue funding a retirement account with that same
ten percent.
Look into the tax-deferred plans that you are eligible for
through your employer or as a self-employed person. Much
of this information is available through government
publications, insurance agents, securities brokers,
accountants, and financial planners. Many employers will
match your individual contributions up to a certain
dollar amount or salary percentage; check to see if your
employer offers such an incentive.
Many retirement plans invest in both securities and
real estate. As an individual, you can fund your
retirement the same way. Income-producing real estate
offers the advantages of being able to borrow funds to
purchase property (thus leveraging your out-of-pocket
investment), having much less volatility than securities,
and providing substantial tax deductions. Disadvantages
include the need to maintain consistent tenancy and
liability for what may go wrong for tenants or others on
your rental property. Before considering investment in
income-producing real estate, consult an expert who has a
track record of profitable real estate investment, and
find out what you need to learn to be able to do the same.
Developing habits of saving and investing wisely over
a lifetime of work combined with realistic expectations
for your "golden years," should help you to realize a
happier and more worry-free retirement!
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