| You may just pick a number and set that as your | | | | and 65, you have a one in four chance of one of you |
| retirement number, but make sure that it is accurate. | | | | living another 32 years. That is one-third of your life |
| You are facing either living on too tight a budget or | | | | on retirement income. |
| outliving your money if you choose wrong. It is a vital | | | | Why are financial experts so gloom and doom about |
| decision that you need to make. Financial experts and | | | | retirement? Because it is one of the most essential |
| institutions are preaching the necessity of finding the | | | | things you will ever save for. And it also requires |
| right retirement strategy. No longer are retirees | | | | quite a bit of knowledge. There are assets, |
| simply moving all their money into CDs - retirement | | | | investments, tax efficient methods and many other |
| investment has changed. | | | | issues to be concerned with. So many people simply |
| Most traditional retirement plans rely on certain | | | | assume that $1 million is the ideal retirement amount |
| assumptions. It is assumed that at retirement the | | | | to have. It's not a bad thing to want to save $1 |
| retiree will begin withdrawing a fixed amount of the | | | | million in your lifetime. But not everyone will fit this |
| savings, adjusting for inflation each year. The | | | | number. Some people need far less and some need |
| withdrawal may be a percentage of the portfolio or | | | | far more. You have to look at your situation -- your |
| a fixed dollar amount. For example, when interest | | | | mortgage, your medical needs and your cost of living. |
| rates were last really high, many people simply lived | | | | What can you do right now? Start saving for |
| off of the interest on their CDs. | | | | retirement. No matter how old you are, you should |
| Most advisors say that these assumptions are no | | | | sit down and figure out what you will need in |
| longer effective. Partly because it was also assumed | | | | retirement. Make this your goal. And educate yourself. |
| that employers or the government provided pension | | | | There are so many different methods, reasoning and |
| funds to retirees. However, those days have passed. | | | | advice columns to follow. Remember that your |
| With the increased lifespan of Americans and the | | | | retirement is based on your goals and objectives, no |
| disappearance of the pension system, many retirees | | | | one else's. It isn't a cookie cutter situation. |
| are looking at outliving their resources. Experts agree | | | | Saving for retirement should be on every person's |
| that most retirees should only withdraw 4% to 5% | | | | mind. Especially if you are narrowing in on 30. The |
| of their investment accounts each year. But there | | | | longer you wait, the more you will have to sacrifice, |
| are those that say that 3% is a much safer number. | | | | now and in the future. If you need help deciphering all |
| There are two things to remember when preparing | | | | of the numbers, get it. Don't be ashamed to ask |
| for your own future retirement. One, Americans | | | | others for financial advice. It shows that you are |
| underestimate how long they will live in retirement. | | | | wise and taking control of your future. Believe me, it |
| Two, many Americans overestimate the returns | | | | will pay off in the end. |
| they will see on their investments. If you are married | | | | |