Author: Preston Molina

Retiring without Worry

If you’re like most people, the recent market decline has done more than cause your investments to decrease substantially. It’s probably also caused you to rethink your retirement plans. After all, the only thing worse than retiring later than you planned is to retire and quickly run out of money.

But how can you ensure you’ll have sufficient funds to last your entire retirement? So many of the variables used to calculate how much you need for retirement seem uncertain. What is a reasonable rate of return for your investments over the long term? How long will you live, knowing life expectancies are increasing? How much can you count on from Social Security and pension plans? If you’re concerned about running out of money during retirement, then you need to be very conservative with your retirement assumptions. Some tips to consider include:

Assume your retirement expenses will be at least 100% of your current expenses.

Most rules of thumb indicate you need between 70% and 100%, but figure on 100% to be safe. Nowadays, retirees want to travel, pursue hobbies, and live an active lifestyle. That generally means you’ll need the higher end of these estimates.

Add a few years to your life expectancy.

You should probably plan on living until at least age 85 or 90. If your family has a history of longevity, add a few more years to these figures. While you may find it hard to believe you’ll live this long, you don’t want to reach age 75 or 80 and find out you’ve run out of money. At that point, you might not have the option of returning to work.

Reduce your estimates of Social Security benefits.

The Social Security Administration sends benefit statements every year around your birthday, telling you how much to expect in benefits. While the Social Security system is currently in sound financial condition, that is expected to change after all the baby boomers retire. To be safe, count on benefits that are somewhat less than the Social Security Administration is estimating and don’t plan on adjustments for inflation.

Cut back on your living expenses now.

This has a two-fold impact on your retirement. First, it frees up money to set aside for your retirement. Second, you get used to a lower standard of living, which should also reduce your expected lifestyle for retirement.

Reach retirement with no debts.

Mortgage and consumer debt payments consume a significant portion of most people’s income. Pay off all those debts by retirement and you significantly reduce your cost of living.

Forget about early retirement.

Saving enough to last from age 65 to 85 or 90 is daunting. Trying to retire at age 55 or 60 is just not practical for most individuals unless they’re willing to reduce their lifestyle significantly. Working a few more years can go a long way in helping fund your retirement. Those years are typically your highest earning years, so hopefully, you’ll save significant sums during that period. Also, every year you work is one year you don’t have to support yourself with your retirement savings.

Consider working during retirement.

Especially during the early years of retirement, you should consider working on at least a part-time basis. Even modest earnings can help significantly with retirement expenses.

Plan on making conservative withdrawals from your retirement assets.

Don’t plan on taking out more than 3% to 4% of your balance annually. With that level of withdrawal, your funds should last for decades.

Investing In Gold As Part Of Retirement Plan

It has been hundreds of years since people have realized the importance, and value of gold around the world. As it is a component in several industries, the demand for gold has actually increased with the passage of time. Now it is also considered a good store of value with more, and more investors opting for gold. This option is worth considering for anyone who is retiring.

The recession and economic downturn have de-motivated the investors; everyone is doubtful about making any investment. However, gold has maintained and even increased its value during this recession period. It is the least affected, and recession-proof investment for retired people, who can maintain a stable, and wealthy living conditions in their old age.

The stock market did collapse, and many big investors dropped from billions to pennies. Any person, near to retirement, is now frightened to make any investment in the stock market. On the other hand, the prices of commodities are rising day by day, and inflation rates are likely to go higher.

Gold is the wisest investment now for the people, especially for retired people who do not have many options to try. Any quantity of gold can contribute to a good saving at the end of the year. Gold bullion value rarely depreciates and makes it an ideal choice for the masses.

All precious metals, including gold, are very smart choices of investment, as they bring a measure of stability to the investment of an individual, or retirement plan. It brings a degree of security to the plan. Other avenues of investment like mutual funds, stocks, and bank deposits are not recommended, as they may deteriorate in value with the changing rates of interest. This is the reason why gold is considered valuable by all as it only increases in its worth with time.

The security, protection, stability, and profitable value of gold cannot be challenged by anyone, even today when prices are increasing. Currencies such as the US Dollar and Pound Sterling may depreciate, but gold never does. Investment into gold is a part of the contingency plan of many investors, and especially those looking forward to retirement.

Different ways by which, you can add gold to your retirement investments are as follows; Gold coins and bullion can be bought from a dealer, but for this, you must have an arrangement of a safe place. You can buy shares of an exchange-traded fund, or you can own individual gold mining stocks. Investing in precious metals mutual or exchange-traded funds is also an option for investing gold. Finally, you can invest in commodities funds, as part of your overall asset allocation strategy.

Those people who invest in gold do not turn all of their wealth or life savings into gold stocks; they simply do it as part of their plan to safeguard their assets to have a lucrative income in the future. This can only be accomplished if a sensible retirement plan has been designed. The fluctuations in the market can never be predicted. Whenever the market looks to be in a position where the demand would increase, the smart investors start to invest. In simple terms, investment in gold is a secure move that is likely to get for you a steady flow of profits in the future.