6 Wise Money Moves for Busy Boomers Who Don’t Plan to Retire

Do you see yourself as someone who won’t ever retire? You probably know some people who have already retired, but you can’t imagine that you’d ever stop working.

As retirement age gets closer, do you identify your own thoughts about retirement in these statements?

1. “I’m never going to retire. I can’t afford it.” If you think this way, you likely haven’t saved much for retirement. Such thoughts could become a self-fulfilling prophecy and you might end up working until your health fails or you’re forced into retirement.

* Either way, you’re financially unprepared for the fact that you’ll eventually retire.

2. “I love my job and I want to work forever.” Although it’s wonderful that you enjoy your work, that love will not stop the aging process. As years pass, the way you think will eventually change, as could your health, work situation, and environment.

3. “My dad worked all his life and died on the job and so will I.” You believe you’re a helpless pawn of fate and won’t retire due to expecting an untimely death.

* However, if you live longer than your parents (and according to statistics, you will), you may find yourself in a position to retire someday. The real question is, “Will you be financially ready?”

4. “I don’t think about retiring. I guess things will turn out the way they’re supposed to.” This reaction is like sticking your head into the sand and ignoring one of life’s realities: if you’re lucky enough to live long enough, you’ll eventually retire.

What to Do Now to Prepare for Your Financial Future

By now, maybe you’re considering that you’ll actually retire. What can you do immediately to begin establishing a bright financial future during retirement?

Talk with your partner about the kind of life you’d want if you stopped working. Make some plans that make such a life possible for you.

Ponder these tips:

1. Accept reality. You’ll likely retire at some point. Think about your current finances and how you’d live if for some reason unknown to you today, you had to stop working tomorrow.

2. Start saving this week. Aim for putting back 15% of your salary. Look at it this way: it can only help you to have some extra money in the bank.

3. Establish a retirement account. Talk with your tax accountant about the best type of retirement account for your situation: Individual Retirement Account (IRA), Roth IRA, or a 401 (k), for example.

4. Develop passive income resources. How can you get started now to establish a new source of passive income and keep it going?

5. Focus on building assets. Maintain your home at the highest level. This way, if you decide to sell, your house will be in tip-top shape. Begin some short-term investments (five years or less) and regularly place some dollars there.

6. Reduce outgoing expenditures. Take a look at the amount of money you have going out in an average month. Look for ways to cut spending and follow through with instituting those cuts.

Regardless of your reasons for feeling you won’t ever retire, start planning for a time when due to health, age, or level of physical energy, you’ll at least slow down working. Put these strategies to work, even if you don’t plan to retire. You’ll be glad you did.

5 Costly Surprises of Retirement

Most of us think that retirement is likely to be relatively inexpensive. After all, the house and car will probably be paid-off and the kids should be gone.

However, there are several expenses that you might not consider before it’s too late.

Plan ahead and don’t be surprised by the following 5 expenses

1. Health care expenses: According to the data, the average 65 year old couple will require $400,000 out of pocket to deal with medical expenses from retirement to age 92. While parts of Medicare are free, other parts are not. Parts B and D, which cover outpatient services and prescriptions are not inexpensive. It can be $6,500 a year for a couple.

* If you have a higher income, expect these premiums to be even higher. The cost isn’t the same for everyone.

* Remember that long-term costs like nursing homes aren’t covered either, regardless of income.

* Be sure to look at all of your health care and insurance options before retiring.

2. Greater spending: You might have your house paid off, but what are you going to do with all of that free time?

* When you’re working, you don’t have time to spend a lot of money. When you’re retired, you might want to do things that you never had the time for. Going to the movies, playing golf, dining out, traveling, and other hobbies and entertainment aren’t free.

* It’s important to think about what your life will be like during retirement. From this ideal vision, you should be able to develop a reasonable budget. Are your financial assets going to be able to support this lifestyle? What can you do now to plan ahead?

* If you’re used to having a company car, cell phone, or other perks, you’re going to have to pay for these things yourself. The cost of former perks can be considerable.

3. Social security taxes: Nearly every working person understands that they’re paying into social security. What you might not know, though, is that you’re likely to be taxed again when you receive that money back in Social Security benefits. The income threshold before taxes kick-in is quite low – about $16,000 for an individual. Be prepared.

4. Tax-deferred accounts: You didn’t have to pay taxes on the income that you put into your 401(k) or traditional IRA. Unfortunately, you will have to pay taxes on your withdrawals. Adding to the misfortune, the withdrawals are taxed at your top ordinary income tax rate. This is probably more than the capital gains rate.

* So, if you want to buy a $25,000 boat, you might have to withdraw $30,000+ from your retirement accounts to cover both the boat and the taxes.

* This is one of the reasons that Roth IRAs are so attractive to those that qualify. With a Roth IRA, you contribute after-tax monies but your withdrawals are tax-free. That means all the growth inside the account is tax-fee also. Check with your tax professional to see if you qualify.

5. Loss of income for the surviving spouse: At some point, one spouse is usually forced to survive without the benefits and income that came from the other spouse. The social security survivor benefit will not completely replace the lost income. Be sure that your estate planning covers the situation of a surviving spouse.

Retirement has its own set of expenses that must be taken into consideration. It’s important to plan for these expenses while there’s still time to make the necessary adjustments to your retirement plan. Be prepared and enjoy your retirement fully.

Method of Saving for Your Golden Years

Partially Part-Time: One Surefire Method of Saving for Your Golden Years

You’ve heard about the importance of saving for retirement. Especially from people who are approaching or already living in retirement, you’ve clearly gotten the message. Yet, you aren’t convinced that you have to save that much right now. After all, you may have 20, 30 or even more years of working left in your lifetime.

However, the fact is that if you want to live a secure, comfortable, free-from-worry retirement, it’s necessary to start saving right away. You may be thinking, “There’s just no way that I can put back any money right now with the kids, the mortgage, and car payments. I’ll worry about it later.” And then later never arrives.

What is “Partially Part-Time?”

So, what can you realistically do to commence saving for your golden years? One idea that works for many is working partially part-time. When you work partially part-time, you take on an additional job, part-time, for only a small portion of the year.

Then, you do this each year specifically to save money for retirement. An example is that, every summer for 3 months, you take an evening job position as a waiter 3 nights a week, in addition to your “regular” job.

Then you can bank all of the money for retirement that you earn from your partially part-time position. This way, you’ll steadily increase your retirement dollars without interrupting your family budget.

Obtain a position working for a business a few months out of the year or do your own thing seasonally. Each year, your retirement savings will grow because of your partially part-time job. What a great gift to give yourself!

Ideas to pump up your retirement savings by working partially part-time

1. If you’ve got a skill, capitalize on it. For example, do you know how to sew and mend clothing? If so, select 3 or 4 months out of the year as the time you do other people’s mending for pay. If you live in a climate where it gets cold and snowy, consider taking in mending over the winter months, since you’ll be indoors much of that time anyway.

2. If you’ve got the means, utilize them. Let’s say you have a sturdy riding lawn mower that you use to mow your lawn in the summer. You could use your riding mower to earn extra money all summer long, mowing other people’s yards every summer to start your retirement savings.

3. If you really love doing something, monetize it. For instance, perhaps you enjoy exterior painting. You find painting houses in the spring and summer to be a great opportunity to bask in nature, enjoying the birds, flowers and trees. Painting houses through the spring or summer months will bring in a hefty sum to put toward your retirement savings.

4. Take a part-time retail job during the Christmas-shopping season. During late October or early November, major retailers start hiring extra help for the holidays. Many times, the work extends until the end of January to help handle all those holiday returns as well.

5. Take advantage of the tourist season. If you live in a tourist area, there are seasons when the area is alive with tourists and other times when no one’s around. Make contact with some local businesses that experience predictable “booms.” Maybe they could use extra help during the tourist season.

When it comes to your retirement savings, don’t let anything stand between you and getting money to the bank for your future. Build a healthy retirement account by working partially part-time. Endeavor to save now and every year for the lifestyle you deserve during your golden years.