When you retire, what are your desires? Will you consult within your industry, teach part time, or take your hobby of photography and turn it into an enterprise? Perhaps you want to mentor the next generation of leaders in your family business. If so, you are not alone. About 80% of baby boomers say they will work at least part time in retirement, blurring the lines of business and leisure. This is according to recent AARP research.
About 13% of 55 and older households without dependent children (nearly 5.3 million Americans) are currently shifting in and out of retirement, according to SRI Consulting Business Intelligence. Because of poorly performing retirement plans, some are being forced into work. They are living longer and healthier lives by staying active.
Your retirement years will need to be well-financed because retirement is a long horizon. Retirement age is normally 62, and we all want an abundant retirement as an ultimate goal. But, if you want to retire earlier than normal you must have a well thought out plan. It still may be possible to exit the workforce early, or work less if you plan ahead and follow some basic steps.
Think it through. You must know what you want out of retirement. It is a change in life, and not just another phase in your finances. Think about the following questions to begin with. Do you have any compelling interests outside your work that you like to do? Do you derive a large part of your self from your enterprise? Do you live to work, or work to live?
Know the rules. When withdrawing your money, be cautious of early withdrawal fees and penalties that are required. You can take out 401(K) or IRA funds for early retirement needs under certain conditions, and avoid paying the 10% tax penalty.
Plan for short-and long-term needs. Keep cash for short-term needs in stable accounts, and stay away from selling more volatile plans when market values are down. Growth plans are a good option for a better potential return on long-term savings. But, they involve more short-term risk.
Have a plan. According to your life expectancy, lifestyle, economy, and other factors, decide when you want to exit the workforce and how much cash you will need. Plan your succession according to whether you want to sell the company, or transition the company to your children. Withdrawing from retirement funds too early can make it very difficult to make your assets last as long as you need it to.
Look for product flexibility. Use accounts with more flexibility, such as an annuity that offers flexible options, if you are thinking about retirement. They allow you to adjust how much you put in monthly.
Seek help. When you own a small business, things are more complicated. If you are among the the many people blurring the lines between work and pleasure, retirement planning can involve specialized attention. Incorporate protection planning, tax planning, business succession, and then develop an appropriate plan for your ever-changing needs. Create this comprehensive financial plan with your team of professionals.
Protect yourself. Adjust your life, health and long-term care insurance needs to your changing circumstances. Don't put all your emphasis on saving strategies, and carefully consider your protection plan.
About 13% of 55 and older households without dependent children (nearly 5.3 million Americans) are currently shifting in and out of retirement, according to SRI Consulting Business Intelligence. Because of poorly performing retirement plans, some are being forced into work. They are living longer and healthier lives by staying active.
Your retirement years will need to be well-financed because retirement is a long horizon. Retirement age is normally 62, and we all want an abundant retirement as an ultimate goal. But, if you want to retire earlier than normal you must have a well thought out plan. It still may be possible to exit the workforce early, or work less if you plan ahead and follow some basic steps.
Think it through. You must know what you want out of retirement. It is a change in life, and not just another phase in your finances. Think about the following questions to begin with. Do you have any compelling interests outside your work that you like to do? Do you derive a large part of your self from your enterprise? Do you live to work, or work to live?
Know the rules. When withdrawing your money, be cautious of early withdrawal fees and penalties that are required. You can take out 401(K) or IRA funds for early retirement needs under certain conditions, and avoid paying the 10% tax penalty.
Plan for short-and long-term needs. Keep cash for short-term needs in stable accounts, and stay away from selling more volatile plans when market values are down. Growth plans are a good option for a better potential return on long-term savings. But, they involve more short-term risk.
Have a plan. According to your life expectancy, lifestyle, economy, and other factors, decide when you want to exit the workforce and how much cash you will need. Plan your succession according to whether you want to sell the company, or transition the company to your children. Withdrawing from retirement funds too early can make it very difficult to make your assets last as long as you need it to.
Look for product flexibility. Use accounts with more flexibility, such as an annuity that offers flexible options, if you are thinking about retirement. They allow you to adjust how much you put in monthly.
Seek help. When you own a small business, things are more complicated. If you are among the the many people blurring the lines between work and pleasure, retirement planning can involve specialized attention. Incorporate protection planning, tax planning, business succession, and then develop an appropriate plan for your ever-changing needs. Create this comprehensive financial plan with your team of professionals.
Protect yourself. Adjust your life, health and long-term care insurance needs to your changing circumstances. Don't put all your emphasis on saving strategies, and carefully consider your protection plan.
