How Much Money Do I Need to Retire?

When Can You Retire?

In early 2011, on my way to work, I heard a disturbing news report.  Approximately 44% of Americans felt that they did not have enough money to be able to retire comfortably.  That number has only grown worse.  Millions of Baby Boomers are not prepared to retire.  In fact, since that report in 2011, the truth is that currently mover than half do not feel they have saved enough.

More recently, the CBS also reported that more people than ever before expect to work past the age of 65, primarily because they need the money.  Reality is beginning to set in for Baby Boomers.

The Retirement Situation for Baby Boomers

The November 2011 AARP Bulletin reported some alarming statistics.  While the exact numbers have changed a little since that time, they are roughly the same.

*  31% of people over the age of 50 have credit card balances

*  44% have mortgage payments on their home

*  In 50% of households of people over the age of 50, neither spouse is currently saving for retirement!

*  The average monthly Social Security benefit is $1,182 a month (that amount was closer to $1,200 a month by 2015, although that is still depressingly low).

*  In 2009, 22% of retirees relied on Social Security for at least 90% of their retirement income

*  In 2010, 56% of Social Security beneficiaries were women ... and they often receive lower benefits than the average man

These statistics paint a discouraging picture about the future financial situation of the aging Baby Boomers.  It may be time that more of us take a hard look at our investment income, and decide what we can do now to prepare for retirement.  Although many of us assume that we will just keep on working forever, the reality is that it isn't always possible.  Sometimes people get laid off in their 60's and find it difficult to find another job.  In other cases, our health declines and we simply are not physically capable of continuing to work.

What Are Your Plans for Assisted Living?

Finally, think about what will happen to you if you need to go into assisted living.  According to the Genworth 2011 Cost of Care Survey, the median annual cost of a one bedroom unit at an assisted living facility ranges from about $28,800 per person in Georgia to about $55,000 in Maine and Delaware.  It is an extraordinary $66,000 in Alaska.  Can you and your spouse afford to pay that?

There are options.  The time to purchase long-term care insurance is when you are young and relatively healthy.  Purchasing this insurance means you will have to save far less money to cover your future medical expenses.

How Much Will You Need to Retire?

The bottom line is that only you can figure out how much you will need to retire.  Start by looking at your benefit estimates from Social Security.  Compare that to your budget.  Look at the difference between the two amounts.

Are there areas in your budget that will disappear by the time you retire?  If possible, pay off all the bills you can.  Look at all the ways you can get your budget as low as possible by retirement.  Then compare the differences between the two amounts.

Let's assume you will still be short $800 a month or $9600 a year.  If you are going to follow the 4% rule, which financial planners suggest as a way to make sure your money lasts the rest of your life, then you need to save 25 times the $9600 a month in order to have enough money to retire.  That means, in this case, you will need to save $240,000.  Obviously, the sooner you start, the easier it will be to save this amount of money.

If you don't think you can save this much, you need to figure out how you will cut your expenses or increase your retirement income ... perhaps by postponing your retirement.

Start planning early for a successful retirement.

If you are interested in reading more about retirement planning, where to retire, health issues, and more, use the tabs or pull down menu at the top of this page to find links to hundreds of additional articles.

http://www.baby-boomer-retirement.com.

(Photo courtesy of Morguefile.com)

Work From Home and Make Money

Work Wherever You Want!

Whether you are just barely getting by, hoping to raise extra money for your kids' college expenses, saving for retirement, or supplementing your current retirement income, there are many good reasons you may want to earn extra money by working at home.  However, you may be uncertain about the different options that are available to you.

Most work at home opportunities fall into two different categories.  You can either offer a personal service, or you can work online.  Here are some options that you should consider:

Provide a Service 

Babysitting: Our family has hired bonded baby sitters several times while staying at out-of-town hotels.  On several occasions, the babysitters were older women who were earning a little extra money on weekends by registering with a babysitting service.  Another option is to become a licensed babysitter and provide childcare in your own home.  You could do it every day or, if that doesn't appeal to you, you may want to just host a "Mom's Day Out" or "Date Night" service.

Sell a Product:  Companies like Mary Kay Cosmetics, Tupperware and Pampered Chef all have independent sales people.  If you enjoy selling, this can be a fun way to supplement your income.

Teach a Skill:  Retired school teachers often earn extra money by tutoring children.  However, you don't have to be a retired teacher to earn money passing on a skill.  If you know how to play a musical instrument, speak a foreign language, or paint water colors, you can offer classes or private lessons as a way to earn money from home.

Make Money Online

Start an Online Store: With websites like eBay available, you can now easily sell your own crafts and artwork, or collect things from garage sales and thrift stores and sell them online.  It's a fun way to start a business without having to rent a location, spend a lot of money on inventory, or hire sales people.

Freelance Writing:  With sites like InfoBarrel.com you can write articles, post them on the internet and occasionally earn a little money from the advertisers.  You can see samples of the articles I have written there at www.infobarrel.com/users/deborah-diane. If you enjoy writing, you could also start a blog like this one.  Either way, you may not make a lot of money, but any extra income is always a good thing.  In addition, it is mentally stimulating to share your experience and knowledge by writing about it online.

If you are interested in staying-up-to-date with new developments that could affect your retirement plans, you may want to receive regular information through http://baby-boomer-retirement.blogspot.com/.

(Photo courtesy of photoxpress.com)

Tips for Healthy Cholesterol

Exercise Lowers Cholesterol
(photo by morguefile.com)

Are you trying to reach healthy cholesterol levels and postpone taking statins as long as possible?  Here are a few natural techniques that you can use for lowering your cholesterol.  They are all easy, and are certainly worth a try.

According to the RealAge website, in their article "Exercise and Cholesterol," combining daily exercise with a low-fat, high-fiber diet can improve your cholesterol levels within three weeks.

Aerobic Exercise Can Reduce Your Cholesterol

First, they emphasize that aerobic exercises, such as walking, swimming or cycling, can raise your good cholesterol (HDL) and lower your bad cholesterol (LDL).  It can also lower your triglycerides.  It is important to do the exercises every day, if possible.  Just taking your dog on a long walk a couple of times a day may make a big difference in your health.

Foods That Will Reduce Your Cholesterol

In addition to exercise and a diet that is generally low in fat and high in fiber, RealAge also recommends that you consume these 10 foods as an additional step in reaching lower cholesterol levels:  almonds, orange juice, olive oil, steamed asparagus, oatmeal, pinto beans, blueberries,  tomato products (such as tomato sauce), avocado and dark chocolate.

While you will still need to seek medical advice, and have your cholesterol levels regularly tested, there is nothing in this program that will harm anyone (unless they have allergies), and it is a healthy approach to getting lower cholesterol levels naturally.  As we all know, anytime we can improve our health and postpone taking medications, the better off we will be ... both medically and financially!

If you are looking for more health and retirement information, use the tabs or pull down menu at the top of this page to find links to hundreds of additional articles.

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Why You Should Join AARP

Long before my husband and I quit working, while we were still in our 50s, some friends suggested to us that we join AARP.  This is the American Association of Retired People. We thought they were crazy. We were still years from retirement, and could not imagine why we would need to join a retirement organization.

However, like millions of other Baby Boomers, as well as people who are older than us, we have discovered that there are many benefits to belonging to AARP. Their money saving discounts have more than covered the modest amount of their annual dues.

As a result, one of the first money saving tips I want to pass on to other Baby Boomers is that they should sign up for AARP as soon as they are eligible. AARP has negotiated discounts at hotels and tourist attractions. They also make it possible for you to use your AARP card to get discounts at Walgreens.

AARP will also send you emails and magazines with information about financial planning, fitness for seniors, heath facts, and more.

You can find out more about the member benefits that are available at AARP.org.  However, below is a list of some of the major discounts that you can expect to use when you sign up.

Examples of AARP Discounts for Members

Walgreens
1-800-FLOWERS
Kindle e-readers and e-books from Amazon
Denny's Restaurants
Ticket Masters
Papa John's
Regal Movie Tickets purchased online
Best Western Hotels
Budget Rent-a-Car
ADT Home Security

Other AARP Benefits

Of course, there are many other benefits that you will receive with your AARP membership.  Some of these are:

Medicare Supplement plan
Identity Protection Plan
Debt Consolidation Calculator
Rent vs. Buy Calculator
Mortgage Payoff Calculator
Roadside Assistance Plan

Whenever my husband and I purchase tickets to a tourist attraction, make hotel reservations, rent a car or do many other things, we always ask if there is an AARP discount.  Without a doubt, the discounts alone make our membership dues well worth it!

If you are looking for more retirement information, use the tabs or the pull down menu at the top of this article for links to hundreds of additional articles on where to retire, health information, financial planning and more.

You are reading from http://www.baby-boomer-retirement.com

Best Employers for Workers Over 50

Cornell University
(photo from Wikipedia.com/commons)

Many good, reliable employees in their 50's and 60's find themselves in the uncomfortable position of looking for a new job.  Other older workers may have jobs, but feel they have been marginalized as they aged.  They crave new job prospects where they will be appreciated for the experience and knowledge they have to offer.

Once a year, AARP comes out with its list of the top employers of workers who are over age 50. Some of these companies offer health insurance for part-time employees.  Others offer on-site fitness classes.  One offers bonuses for employees in the form of gift cards.  All of them are considered good places for senior citizens to work.  Depending on where you live, you may be interested in seeing if one of these employers is right for you.

Best Employers for Workers Over 50 

Scripps Health in San Diego, California
Cornell University in Ithaca, New York
National Institutes of Health in Bethesda, Maryland
First Horizon National Corporation in Memphis, Tennessee
West Virginia University in Morgantown, West Virginia
YMCA of Greater Rochester in Rochester, New York
Atlantic Health System in Morristown, New Jersey
Mercy Health System in Janesville, Wisconsin
Bon Secours Richmond Health System in Richmond, Virginia
The Aerospace Corporation in El Segundo, California

Since a large percentage of Baby Boomers are going to have to work until their late 60's or longer, there are many benefits to knowing the best employers in your community who are willing to extend job opportunities to older employees.

If you do not live near any of the employers on the above list, you should talk to your friends or contact the local senior center and ask about job fairs in your area.  In addition, you may want to contact retirement communities and nursing homes in your area.  Many of them are willing to hire older workers to help in their offices and reception areas. 

Just because you are no longer young, does not mean that you are no longer able to be a valuable employee.  In fact, as our society ages, the need for older employees will be even greater!

If you are looking for additional retirement information, use the tabs or pull-down menu at the top of this page to find links to hundreds of additional articles about where to retire, work at home suggestions, financial planning and more.

You are reading from the blog:  http://www.baby-boomer-retirement.com