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April 24, 2014 / 24 Nisan, 5774
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Posts Tagged ‘IRA’

The Three Worst Pre-Retirement Planning Mistakes

Sunday, August 19th, 2012

How do you visualize your retirement years? Most people hope that they will finally be able to do the things that they never had time to do during their working years. Very frequently, folks anticipate retirement will be a worry-free time, full of enjoyment, and ample time to spend with family and friends.

As a financial adviser, I am often saddened to see retirees facing a different picture. I’m talking about people who are getting older but who can’t stop working because they don’t have enough savings to support themselves. The shortfall may come from a lack of savings, or may come from a lack of foresight in using their once ample funds. For instance, there are generous parents who give their children so much financial support that there is nothing left for them when they need it.

Very often, these are people who have worked hard and earned well. They have worked diligently to support their families, but unfortunately they have also made some disastrous mistakes. The three worst pre-retirement planning mistakes are:

1. Relying on government pensions. Even though you have paid your taxes faithfully over the years, the amount you receive back from the government should be considered a (small) supplement to your retirement income, not the only source. Social security was originally intended to provide financial support for only a few years, but with increased life expectancies, it’s becoming harder for Uncle Sam to continue making payments to all retirees. There’s much talk about pension size decreasing… so to be financially secure during retirement, it’s wise to make sure that you will have another source of income, such as a pension, IRA, 401(k), and other investments.

2. Thinking that you will never retire. You may really enjoy your work, and you are strong and healthy, so you are absolutely sure that you will always be working forever. Sadly, you don’t have a crystal ball and you don’t know what will happen. Counting on working until the day before your funeral isn’t a good financial plan.

3. Believing that you are too young to start thinking about retirement. You are never too young to think about retirement. In fact the younger you start, the better. Think of all the money you can save in a pension plan over 40 years as opposed to 20. The beauty of compound interest means that the earlier you begin saving, the harder your money can work for you.

To learn more about planning for old age, read why living too long may be a financial disaster.

Why Your Best 20th Birthday Present is a Pension

Wednesday, August 15th, 2012

When you are in your early twenties, it seems as if you will always be young. At this point in your life, you may have completed your university studies and now you are out there in the work world, or perhaps you are still studying towards a further qualification. You may be newly married at this point, or still waiting to find the Right Spouse before tying the knot. Whatever you are doing, retirement may be the furthest thought on your mind.

However, retirement will not stay on the horizon forever. Before you know it, the years pass, and you will hopefully find yourself established in life with a career and family. You have a definite professional path, and you are working hard to put food on the table and make sure that you, your spouse, and children have everything you need. The only studies that you are thinking about now are your children’s tuition fees. And this is how it goes, as the years pass. The nature of your needs and goals will change through life – until the time comes to retire and enjoy the fruits of your labors.

For this reason, it is important not to let the years run by without planning for the future. No matter how old you are, whether you are 20 or 55, you need to make sure that you have a pension plan and to put some of your money aside into savings and investments. Since there is no guarantee that your company’s pension plan or the government’s pension plan will be enough to cover your retirement needs, it’s important to have a personal savings plan which could make up the (potentially large) shortfall. No one wants to end up dependent on the goodwill of their children, who may well be supporting their own families by this time.

Of course, every family has its own situation, levels of risk, and specific needs and goals, which is why you need to find the pension plan that is the best for you, whether it’s an IRA, 401(K), or any of the other options that exist out there. There are many different factors to consider. For further ideas on how to plan for retirement, read http://profileperspectives.com/dont-let-retirement-creep-up-on-you/.

Planning for retirement now, while you are young, can make all the difference to your future.

State Relents, Khader Adnan Ends 65-day Hunger Strike

Tuesday, February 21st, 2012

Ranking Islamic Jihad official Khader Adnan has ended his 65-day hunger strike after the State Prosecutor announced that under current circumstances, it would not seek to renew his administrative detention.

According to the announcement, the State will not extend Adnan’s detention if no significant new material is added to the case  by April 17, the day his current detention order expires.

Adnan, who has been hailed in the Arab street and glorified in European media as a political dissident in the mold of IRA figure Bobby Sands, has been under administrative detention since mid-December, for posing a  threat to regional security.

Printed from: http://www.jewishpress.com/news/breaking-news/state-relents-khader-adnan-ends-65-day-hunger-strike/2012/02/21/

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