Ray’s Take: Retirement is a time when a lot of the old financial rules get flipped on their head. Most people who retire don’t want to go back to work, and even if they did, they may not be afforded the opportunity. Wal-Mart needs only so many greeters. At this point there’s no turning back, and what money you’ve saved will be the lion’s share of what you will need to live off of.
Reaching your target retirement age with a sufficient retirement account is a sign of financial success that is increasingly difficult. Increased longevity has redefined “sufficient.” And, when you retire, your finances and responsibilities dramatically change as you shift from investing in those retirement accounts to depending on them. The sequence of returns affects distributions very differently than contributions.
Whatever the size of your nest egg, retirement will likely mean big changes in your financial life. Sources of income can shift and expenses can change. Sometimes your financial priorities change as you move from saving for retirement to generating income from your hard-earned retirement savings. A market downturn that would have been meaningless during your working years can be devastating in retirement.
Retirement is like driving to your vacation destination knowing that there are no gas stations along the way to “refuel.” When you retire, often nothing is being withheld for state and federal income taxes, so you may be responsible for any quarterly estimated taxes. And most retirees generally have to pay health care and other insurance premiums directly to the insurance companies. Contrary to popular belief, Medicare doesn’t cover everything.
You are the architect of your financial future. Taking the time to think through the “what ifs” of future cash management also means that you get to make the decisions about how you'll be using your financial resources during a retirement that may stretch 30 years or more. Meeting with a financial planner can help you create a plan that will serve you well.
Dana’s Take: “The question isn't at what age I want to retire, it's at what income.” – a class="learn" href="http://www.memphisdailynews.com/Search/Search.aspx?redir=1&fn=George&ln=Foreman" rel=" Learn more about George Foreman Tap into millions of public records, notices and articles on The Daily News with our ever-growing line of services. Try one of these to get you started:
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Try one of these to get you started:Name SearchWatch Service" style="color: #7d0200; text-decoration: underline;">George Foreman
It always comes down to money. Having enough for what we want to do and how we want to live. While we're still working, we always have ways of increasing our income. We can find a second job, get a raise or move to a new company for a larger salary.
But once we pull the trigger on retirement, our options slim down to a big degree. The baby boomer generation will be doing retirement differently than previous generations, but there's still a need for smart retirement planning and a clear understanding of how the money works at the other end of the spectrum.
Don’t let a lack of financial knowledge put a shadow on your golden years.