Retirement talk: A few things to save up for

There are more people excited about retirement than one might come to expect. Why? Retirement is seen as freedom from all the responsibilities that come with being a worker bee. As long as it’s well-prepared for, retirement can be paradise. It can be a series of adventures that people will never forget. But yes, the trick is financial planning. Once a person has saved enough, retirement can be treated like hitting the lottery.

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One of the most fun parts of retirement is that retirees have all the time in the world to do what they’ve always wanted to do. Traveling is often on top of that list. With enough money saved up, they can finally visit places they’ve only dreamed of.

Another activity that attracts a lot of retirees is studying. Yes. Believe it or not, a huge percentage of retirees have confessed to having one great frustration – not being able to study what they’ve always wanted to study. Be it oil painting or playing the saxophone, retirement affords people time and opportunity to learn.

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But of course, all these things pale in comparison to the time spent with loved ones. Retirees can book flights or cruises with their families. They can even take their children and grandchildren to the nearest theme parks.

Again, retirement isn’t a drag – if people prepare for it financially.

Andrew Corbman founded ASC Financial, Inc. to help retirees in investment planning and wealth management. For more information on retirement planning, visit this website.

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Key Differences In Financial Challenges And Goals For The Phases Of Retirement

People often forget that retirement has several phases. There is a tendency to conveniently place it right after one has stopped working and lump everything together into an indiscriminate episode. It should be noted that each phase has its own unique challenges: physical, emotional, financial, etc. All these might require very specific approaches and solutions that are tailored to the changing needs of the retiree. A one-size-fits-all method might deprive one of the possible joys of retirement.

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Here are some of the basic considerations one needs to reflect on for each discernible stage, which in the end might prove to be the most practical and life-affirming plans a person can make to have a delightful retiree’s life:

Pre-retirement

Although this is not yet retirement proper, one should already assess foreseeable sources of income once the paychecks stop coming. It is advisable to check the status of one’s defined contribution plans and social insurances. There might also be a need to evaluate the ratios of expenditures, investments, and savings to avoid being shortchanged in the next 10 to 15 years during the first technical phase of retirement.

Early Retirement

The spending will surely go through the roof in the early years of retirement. People are inclined to think that they have won some kind of lottery, and purchases and travels are simply rewards they ought to get for themselves after all the hard work. These might be balanced by the fact that you no longer need to spend too much on clothes, gasoline, or contributions. One should make definite arrangements though for augmenting the income just so one can continue enjoying this phase.

Middle Retirement

Social insurances and other benefits from employment plans will usually kick in around this time. That means new income. The travels and other luxuries might take a backseat, and retirees might prefer to spend more time with the family. This should be a good time also to review your asset allocations and estate plans.

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Late Retirement

Obviously, one will spend a lot on health care during this stage. For some cases, it might still be a wise thing to continue revisiting funds and investments for the remainder of one’s life and for the loved ones who will be left behind.

Andrew Corbman works to ensure that his clients remain financially independent post-retirement, utilizing in-depth industry experience. For more useful retirement planning advice, visit this blog.

Three Crucial Factors Involved in Retirement Planning

Retirement shouldn’t be an afterthought. These days, young professionals are being encouraged to start thinking about the later decades of their lives. After spending many decades as part of the workforce, individuals must continue to lead a financially stable life even after their regular employment. Here are some crucial factors that must not be overlooked in planning for retirement:

Diversified investments

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Aside from a person’s retirement fund, it’s also important to start diversifying assets that will grow through the years. A common mistake made by many is that they only think about investments later in their life. Investing one’s money doesn’t need to start expensive. With the right financial planning, an individual can start building a portfolio without using funds from major income streams.

Taking out funds from a retirement plan

Tough times or a change of jobs can lead a person to cash out of a retirement plan. While choosing to cash out seems to be an attractive option sometimes, a better alternative would be to transfer the existing account to another retirement account. This will allow the allotted retirement funds to grow while remaining untouched. Instead of taking funds out of retirement, it would be better for an individual also to set aside finances for an emergency fund.

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Overlooked taxes

Regular 401(k) accounts are not tax-free. This means that a retiree will get taxed every time they take out funds in the future. Instead of just relying on the traditional retirement plan, investing in tax-free retirement streams will allow an individual to have more income in the future.

Employees should be wise about where they will invest for their retirement years. Seeking the help of reliable financial planners will make the decision making easier and hassle-free.

Andrew Corbman and the team at ASC Financial help individuals identify potential shortfalls of their Social Security funds and maximize their revenue streams post-retirement. Visit this page for more information.

Sound Perspectives To Avoid Financial Risks With Your Retirement Money

It’s easy to get lured by the plethora of enticing investment packages in the market. But a close study of one’s starting financial situation is key for any retiree hoping to gain future-proof security and stability. Here are some considerations before diving into the market and risking your hard-earned retirement money.
First, be familiar with taxes. Your IRA rollover may look like a lot of money on paper, but many retirees fail to account for tax deductions. Take time to compute the actual amount that you have to devote for any investment venture. Keep this in mind: if you’re in the US, taxes are unlikely to go down anytime soon given the country’s trillion-dollar debt.
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Keep tabs and weigh both your assets and your expenses. Do not overvalue your holdings and downplay the expenses. Always think of assets in terms of liquidation value, and how the ration of asset-expenses will look like in the next few years. Drawing money from your principal regularly is a bad sign; you must address this quickly so that expenses come from income. If this means letting go of a property just to get back to a cash-flow plateau, then so be it.
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Lastly, always think in the long term. Have a clear picture of how your portfolio will fare in terms of both performance and composition further down the line, say, in five years. This might mean being familiar with the risks or volatility that you are willing to take vis-à-vis the projected cash growth for sustainability. For example, consider fixed annuity over the typical bonds, stocks, and cash options.
Andrew Corbman helps clients make intelligent, forward-thinking decisions on investment and asset management for retirement and beyond. For more tips on handling your retirement assets, drop by this website.

A Lesson On Retirement: The Future Problems Created Today

It is simply a part of human nature to be reactive instead of proactive. This has led to a lot of undesirable consequences in later life. There are some ways to which people have not prepared for retirement quite well enough.

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The first mistake that people actually make in their youth is not watching what they eat. For a young person, taking in ridiculously huge amounts of fat and sugar seems to be the norm nowadays, the food portions have become bigger than they ever were, and it’s no longer uncommon to avail of servings that offer up to two thousand calories in one sitting. People eat unhealthily, and they tend to do this as a way of life.

There has also been a number of people who have developed the habit of spending unnecessarily on a multitude of things that they don’t need. They end up owning a lot of things and only a few practical investments.

Sadly, such people are also the ones who don’t even consider making plans even as they approach retirement. There is this myth that says that when people get to be older, they shouldn’t make any steps to invest anymore. That may be true to some extreme, but age is a wide spectrum.

The fact is, even if you are near retirement, you can still make sound investments. This would be a wise move, especially if you did not eat right in your youth and you spent a significant amount of money on useless things.

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Retirement will come eventually, but it can be less problematic with good investments today.

Andrew Corbman is the founder of ASC Financial, Inc., which specializes in investment planning and wealth management advising services for prospective retirees. For more information on retirement planning, visit this website.