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 etirement used to be associated with
the end of life. Now people are living longer and healthier lives than ever before, and retirement is not so much
the end of life, as the beginning of a new life. Retirement presents the opportunity to do fun and interesting
things you never had time for before.Investing wisely can make those things possible. If you are counting on Social Security, forget it, unless your  idea of gourmet dining is extra
ketchup on your canned meat. We suggest that you leave Social Security completely out of the equation. Some experts
predict that benefits will be severely cut or "means tested". That's how the politicians will penalize
the personally responsible minority to gain the votes of the irresponsible majority. In your retirement planning
you should count any Social Security benefits as a bonus.Many financial planning systems give such astronomical figures for the "amount required to retire"  that people give up even starting. We prefer
to start by determining how much you can save and ways to increase your savings over time. We suggest a savings
goal of 20% of your total pre-tax income. Even this can seem like an impossibly high figure, but consider that
in some countries with much lower standards of living, the average family saves 40% of its income!Simply budgeting may not produce the desired result. Consider putting all of your next raise into savings. Refinance your home and pay off your mortgage more quickly. Avoid astronomical finance charges by postponing major purchases and then paying with cash. (That's not only cost-effective...it makes your purchase more satisfying, too.) As long as we have an income tax, tax-advantaged savings options should be the foundation of your retirement plan. Most employer-sponsored plans offer the added incentive of some level of contribution matching. Make the maximum contribution to employer-sponsored plans, but avoid owning too much of your employer's own stock. Don't rely too heavily on a pension plan. Unless you are in a secure public service job, you probably will not retire from your current employer with full pension benefits. If your employer does not sponsor a savings plan, Schubert Financial will show you low-cost options available to employees of smaller companies. IRAs, with their now-higher contribution limits, are the next most important avenue for retirement savings. If you are eligible, Health Savings Accounts (HSAs) are a superior retirement savings vehicle. If you maintain your own health insurance, you should consider a HSA qualified plan. If your employer provides your health insurance, you should encourage them to offer a HSA qualified plan. One overlooked area of retirement savings is the principal payments on your mortgage. We will help you calculate the additional monthly payment required to pay off your mortgage by the time you plan to retire. Better yet, refinance your home to obtain a lower interest rate. At times the goal of a comfortable retirement may seem daunting. Schubert Financial Associates can help you whittle it down to a manageable level. |
Invest for... Retirement
Did you know...? In ancient Chinese society, old men were expected to retire not only from work, but from adulthood as well! After working and raising a family under the strict social rules of Confucianism, old men were thought to have earned the right to drop social conventions and become silly and playful, like grown-up children.
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