web analytics
September 22, 2014 / 27 Elul, 5774
At a Glance
Blogs
Sponsored Post
Meir Panim with Soldiers 5774 Roundup: Year of Relief and Service for Israel’s Needy

Meir Panim implements programs that serve Israel’s neediest populations with respect and dignity. Meir Panim also coordinated care packages for families in the South during the Gaza War.



Three Rules for Early Retirement Success

If retirement was a foot race, it would be a marathon instead of a sprint.
retirement

According to a recent Gallup survey, the average retirement age in the United States is 67. This is up from a decade ago, when 63 years of age was the norm. In Israel, the standard retirement age for men is 67 and 62 for women.

Although retirement ages are rising, many people still choose to retire early. If this is something you want to do, take the following three rules into account before making your decision: Know the risks and be prepared for them

If you think you have enough money saved to retire before the standard retirement age, ask yourself if your plans are realistic. If your investments fail to outpace inflation, do you have a contingency plan? Can you afford to live on your savings and investment income until you are eligible for governmental pensions and can receive your work pension benefits? Answering the “what if” questions could spell the difference between a successful early retirement and financial disaster.

Control Spending

If retirement was a foot race, it would be a marathon instead of a sprint. Unfortunately, too many early retirees are sprinters when it comes to spending. Younger retirees tend to be active individuals who are prone to spending on hobbies, travel, and entertainment, without thinking ahead. Free time is rarely, if ever, truly free. Increased leisure time usually means increased spending. You might not be able to control the economy, but you can control your spending. When you were working, there was the opportunity to increase income with additional hours or changing jobs. Unless you consider part-time retirement work, retirement depletes your savings, as opposed to increasing them. Therefore, you need to live within your budget and control spending. Ideally, your budget has a line for a “slush” fund that allows for discretionary spending, but expenditures need to be kept in check.

Be Flexible

Stay flexible to be able to adapt to life changes. If medical expenses increase, you’ll need to decrease other expenses. If the market doesn’t follow your predictions, you might have to withdraw less from your accounts.

Sometimes retirees think that if they run out of money they can get a job. While flexible thinking is a marker of a successful retirement, re-entering the work force may not be an option. Perhaps your health won’t allow it, or you will face age-discrimination from employers who want to hire younger (and cheaper) employees.

If you choose early retirement as an option, be aware that you are also choosing to address certain risks and are prepared to lower your spending in case you need to stretch your resources further.

This is an excerpt from The Retirement Planning Book. The complete e-book can be downloaded for FREE here.

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning and investment services firm located in Jerusalem. He specializes in working with clients who live outside of the United States and want to maintain a U.S. brokerage account. Doug’s newest book, co-authored with Susan Polgar, about how using chess strategies to improve your finances, Rich As A King can be purchased at www.richasaking.com. He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, SIFMA, FSI. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Contact at doug@profile-financial.com


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Three Rules for Early Retirement Success”

  1. Carly Torino says:

    The key to a successful retirement is planning. Start planning early in life and you will have a good chance to achieve your goals. You have to plan both for your financial needs and your lifestyle requirements. there are many sites that offer information about this. I recently found the site Retirement And Good Living that provides great information on a variety of retirement topics including finances, health/exercise/nutrition, retirement locations, travel and more.

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
ISIS seized control of Quneitra, at least temporarily, towards the end of August 2014.
Israel Watching Northern Border with Syria, Lebanon
Latest Blogs Stories
Doug Goldstein

Grandmaster Michael Adams talks about life as a professional chess player.

Finance Minister Yair Lapid

The Jewish Press stressed the possible ramifications of such a breach of Israeli political protocol

Doug Goldstein

Why some countries are more economically successful than others? Tune in for the answer…

ethics

If not scared by God be scared by man; Hopefully ethics will integrate into lives for proper reasons

Smear campaigns by people with agendas other than justice do not faze him; He does what is right.

Countries like Turkey, Europe and even the US have proven fertile ground for recruiting terrorists

How many times have you heard anti-semites spew words like Israel are Nazis, or what you are doing to the Arabs is worse that what the Nazis did to the Jews?!…

My blog, Israpundit, was hacked, and I had to move to a new domain…

There’s much confusion about the definition of Daas Torah; simply put it means the wisdom of Torah.

We’ll never be able to negotiate a true, lasting peace with the Arabs.Their aim is our destruction.

Now I live in a country where every shop in the food court is kosher! I can have anything I want!

Pashkevil: “Come out today and battle the Zionist Amalek and all the traitors in Nahal Haredi…”

Jordan: Only M.E. country with no historical basis and ruled by occupiers placed by European powers.

Why is an IRA a worthwhile account for retirement? And how can you use it to the best advantage?

Like the fighter pilot’s letter, I wonder if certain units are simply too sensitive to allow certain leftwingers to serve in, and to entrust in their hands the security of our country and our lives.

There is only one thing more tragic than experiencing a terror attack, and that is allowing those who attacked you to do it again!

More Articles from Doug Goldstein, CFP®
Doug Goldstein

Grandmaster Michael Adams talks about life as a professional chess player.

Doug Goldstein

Why some countries are more economically successful than others? Tune in for the answer…

Why is an IRA a worthwhile account for retirement? And how can you use it to the best advantage?

How do you reach the top of your profession, and are you always aware of your own talents?

How has the sudden growth in modern technology affected world economy and future employment levels?

Learn about Monte Carlo-not the place but simulator forbuilding a financial plan.

This week’s podcast discusses the need for transparency in international business dealings.

Life after 50? You better believe it! Tips on how to prepare and enjoy life after retirement.

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/three-rules-for-early-retirement-success/2013/08/12/

Scan this QR code to visit this page online: