Archive for Archive for April, 2008
A Dream Retirement Or A Rude-Awakening To Financial Reality?
It would be fair to say that most people will find their incomes at least
halved the instance they retire from the workforce. The bombshell is
dropped when suddenly discovering they lack the cash flow to do the
things they had always dreamed of doing in retirement. Sadly, what
looked like being a dream retirement becomes a rude awaking to
financial reality. Will you be any different?
Well, there is a quick-fix solution for when you first retire. Live like
theres no tomorrow and eat-away at your capital until its all gone.
Its fun while it lasts, but then reality hits home yet again.
In many cases, this capital is what provides earning capacity over and
above your government pension (if you are lucky enough to live in a
country that offers one). Take away the capital and you rely 100% on
your retirement pension.
What an awful situation to be in. These are the “golden years”… the
time of life when you should be enjoying yourself. Yet the truth is;
government benefits and pensions are not designed to pay your
mortgages, car installments, or credit card bills. Nor are they
designed to keep you in the lifestyle to which you may have
become accustomed.
Pensions and benefits are designed to provide only the bare
essentials. Needless to say, retirement can be a rude-awakening
as you learn to adapt in survival mode.
The message is clear:
=====> These days you can’t rely on others to provide you with
ongoing employment.
=====> Understand that a government benefit or pension, at most,
will provide the bare essentials and allow you to live frugally.
=====> Know your true wealth at any given time in your life.
You might unexpectedly be forced to retire or stop working
(trading your hours for money).
The decision is yours! If you want to keep your freedom, then be
prepared to help yourself. Whats more, retirement might happen
sooner than you had planned.
You have to actively take part in your destiny without relying on banks,
employers or the government. If you have a job or run your own business
- great! However, start to think differently.
Find ways to build a growing income without always having to trade
your hours for money. That is the key!
When you trade hours for money you are earning a living to survive.
The moment you stop, or can no longer earn a living, will be the time
of reckoning. You’ll suddenly discover the limits of your true wealth.
Will you be able to do all those things you always dreamed of doing?
How long will your capital last?
How financially prepared will you be for an unexpected disaster?
How reliant will you be on the government, a superannuation fund,
or your family?
What will be your level of comfort in retirement?
What changes will you need to make to cope with your new
financial circumstances?
Most of us live for today and hope that tomorrow will take care of itself.
Make no mistake; these tough questions will need answering sooner or later.
To ensure those golden years are truly golden - better sooner than later!
Noel Peebles. Market Leaders Limited.
http://www.instantsellbusiness.com
http://www.instantsellhome.com
Credit for Qualified Retirement Savings Contribution
Credit for Qualified Retirement Savings Contribution
Here we are again its tax time. And with all the turmoil in our country not to mention in our private lives, Uncle Sam expects us to sit up and take notice of the time of year and file our tax returns with the IRS. Well I dont know about you but with all the tax law changes and the comings and goings it can be down right confusing for the average American. I spend half the year before January studying and preparing to meet all of my clients needs and goals, and I still can find a surprise or two at my desk each morning. Take for instance the new Savers Tax Credit, this little gem will only be with us the next four years, by the time it catches onitll be gone.
Retirement Savings Contribution Credit is a tax credit allowing eligible contributions to an employer sponsored retirement plan or an IRA become tax deductible. A percentage of your qualifying retirement contributions are determined by using federal form 8880.
Qualifying retirement plans are Traditional and or Roth IRA contributions, and salary reduction contributions to most employer sponsored retirement plans (401k). You may include certain voluntary after tax plans as well.
You cannot claim this credit if any of these circumstances apply to you:
You were born after January 1,1985
You are claimed as dependents on another persons return
You are a full time student
Table of Income and Filing Status Percentage for Retirement Savings Contribution
If your filing status isAnd Your AGI isYour Percentage is
Married Filing JointlyNot over 30,00030,000——32,50032,500——-49,99950,000 or Above5020100
Head of HouseholdNot over 22,50022,500—-24,37524,375—-37,50037,501 or Above5020100
Are You Tired, Yet?
Are you tired of having more days at the end of the month than money? Perhaps you’ve missed family time due to overtime ~ just to make ends meet. Maybe, your credit card bills are rising, too. Only, Murphy’s Laws go into effect about the time you’d intended to keep your word and pay on your debt. Suppose you borrowed from Peter to pay Paul, then failed at keeping your word to Peter, too. Exhausting creative ideas to your financial dilemma, the end of your rope could be near.
Are you ready to give up and admit the solution is beyond your control? That would be a really good place to start. Because then, we’re ready to look higher for answers.
Our enemy is the same one it always was. “The thief cometh not, but for to steal, and to kill, and to destroy” (John 10:10) and he can not be dealt with by earthly methods. That’s why God gave us ‘how-to’s’, like this one.
Owe no man any thing, but to love one another:
for he that loveth another hath fulfilled the law.
Romans 13:8
Are we listening, really listening? Or, are we still in the mode of learning everything the hard way? If you want the answer, pay attention.
Owe no man any thing …
Not if the car breaks down, the furnace goes out, or anything else goes wrong. God isn’t kidding. Don’t forget that He gets jealous. Your faith, for the remainder of your needs, is to be placed in none other than Him. If you have a debt to pay, pay it first and don’t make any more debts.
But to love one another …
If another is left holding the bag (so to speak), likely putting them in a financial bind because you didn’t make payment(s), you have multiplied your bondage and theirs. And, God cares about them, too. Thus, you have not really loved anyone ~ not even yourself.
For he that loveth another hath fulfilled the law.
In loving God, we will love others and only by loving others can we truly love ourselves. In following the above, you will have fulfilled the requirement/met the provision for God’s blessings in overcoming financial bondage.
And, once you set your path in this direction, you will be amazed and so blessed, step by step, at God’s creative solutions. Your money will stretch further, you’ll need less of it, and your debts will gradually become smaller. Then, once you experience the wonderful freedom of being debt free, you’ll wonder how you could have ever chosen any other way.
Once we have nothing left to lose, we discover God’s answers work!
2003 by Joyce C. Lock
http://my.homewithgod.com/blessingsandlessons/
This writing may be used in its entirety, with credits in tact,
for non-profit ministering purposes.
In addition to being a published author and poet, Joyce C. Lock created the religion column, “Christianity Made Simple” for Peru Daily Tribune, continues to write inspirational articles for area newspapers, and shares further in online and e-mail ministries.
Retirement In the New Age
Retirement In the New Age
Are You Prepared For A Life of Leisure?
Consider These Numbers
“At the end of WWII, there were 42 workers paying into Social Security for each person receiving benefits. Today, barely three people contribute for each recipient. Projections are that by 2030, when most baby boomers will have retired, just two working people will contribute for each person receiving benefits. (Social Security Administration, Trust Funds Report, 1992).”
(Saperston Asset Management Inc.)
“Social Security benefits will replace only 16% of the income of married couples earning $50,000 to $100,000 and only 9.5% of the income of married couples earning $100,000 and only 9.5% of the income of married couples earning $100,000-plus. (Office of Research and Economic Analysis, Pension and Welfare Administration).”
(Saperston Asset Management Inc.)
“Working people tend to think their retirement lifestyle will be better than their current lifestyle, but retirees report their standard of living has declined. Example: Twenty-six percent of workers say they are “just making ends meet,” but only 16% think they will live this way in retirement. Of retirees, 20% are “just making ends meet,” while 16% describe their pre-retirement lifestyle this way (Employee Benefit Research Institute).”
(Saperston Asset Management Inc.)
Is this the reward for a life of ardent labor and selfless devotion? I would like to think not. I did not write this article with the intent to trouble you, instead I have written it in hopes of awakening you to the issue before it’s too late.
Now that we have discussed the problem, let’s discuss some solutions.
If you’re still in your youth, roughly between the ages of 20 and 35 you still have time to start a traditional savings plan that will over time build you a comfortable nest egg for retirement. But my main focus in this article is to help those with much less time before retirement.
What do you do when you only have a few years left before retirement and you realize that you don’t have enough set aside to live the life of luxury and leisure that we all hope for. Should you put your dreams aside and continue to work through your golden years? No one should ever have to do this. No, instead I propose you take fate into your own hands, flip it upside down, and shake it until his pockets are empty. Than pick up the cash dust yourself off, and enjoy your life.
Ways to “Flip Fate” - Retirement Plans & Solutions
Money is a game of self education. Those who have it prosper, those who don’t fail. It’s that simple. So pick an option and get educated, your retirement depends on it.
401(k)’s & IRA’s
Time to put these bad boys into overdrive. Start plunging huge chunks of your monthly income into either your 401(k) or your IRA. If your company provides a lucrative compensation matching plan, than hit that 401(k) hot and heavy as it has the potential to provide a return of up to 25% 50% and sometimes even 100%!
Stocks & Mutual Funds
If you know what your doing, or have an Einstein of a broker, you may want to take a look into this option, as the stock market is a proven money maker for those who know the game. For those who don’t stick with mutual funds and a good broker.
Second Job
This is not a pretty one, but drastic situations call for drastic measures.
———————
These last two are quoted directly from MSN’s “Money Central” and are probably the two which are the most immediately lucrative choices you have.
“Plan to sell your house and buy a smaller one or get out of the real estate market altogether.
This is especially true if you’re planning to move to a retirement community with lifetime services. If you need your home equity for living expenses, you can always take a reverse mortgage.”
“Start a business on the side. There are many benefits to this, especially if you’re close to retirement. First, you can usually contribute up to 25% of your self-employment income to a tax deductible Keogh plan even if you’re already putting money in another plan.
The second benefit is that your new knowledge and experience makes you more valuable to your current employer. Third, if you’re laid off or experience job discrimination in terms of a pay raise, you have another income. Also, once you’re officially retired from your primary job, you have a nice business that can continue to generate income. It gives you some great tax deductions and still allows you to sock away money for retirement, whenever you finally decide you can afford to slow down.”
Your financial future is dictated by the choices you make today. Don’t let retirement sneak up on you as it has so many others. Make a decision to take action today. Good luck, and enjoy your retirement!
Wishing you success,
Michael Bosse
mike_jb2@hotmail.com
Health, Wellness & Wealth - The Freedom and Time to Enjoy Life to it’s Fullest! Be part of the next Trillion Dollar Industry…Health! Benefit from the best health products available, than share them and profit http://www.artofhomebusiness.com/V4L
Micahel Bosse resides in the beautiful San Diego County. Michael is an advocate of wealth through knowledge. He owns and runs several successful businesses, and spends his extra time teaching others to duplicate his success.
