Early Retirement

Is Early Retirement in the Cards for You?

Millions of experienced workers are retiring, and the numbers are growing as baby boomers reach the age to retire. Many more are thinking about early retirement, or at least starting to think about when they should take that leap.

Today, many seniors have a strong desire to keep working, or are forced to keep working because they may not have the luxury of early retirement or even full retirement at 65. Some retire and are forced to return to work after they discover they have additional finanial needs or the retirement portfolio they hoped would be enough just isn't enough to cover the higher costs of living. If you fall into that category, postponing retirement for at least a few years may not be an option. It's a fact of life. (More on the next column)

A professional financial planner gives his views and advice on early retirement in an article taken from The Alaska Airlines Magazine. .

Retirement takes planning. Are you ready? Find out

YOUR HIGHEST INCOME EARNING YEARS

Despite the fact that your highest earning years are during our 50's there are other potential and sometimes unavoidable possibilities that could affect your early retirement goals. Many industries are downsizing, like airlines, auto and other manufacturing companies. You could lose your job before you're ready to retire early and may not be able to ...Read More

DON'T HAVE A LARGE NEST EGG AND YOUR ONLY INCOME IS WHAT YOU RECEIVE FROM SOCIAL SECURITY? THERE'S HOPE. FIND PLACES THAT YOU CAN RETIRE CHEAP. IN SOME CASES FOR AS LITTLE AS $600 A MONTH. CLICK HERE

Think it's too late for early retirement? Think again...

27 Early Retirement catch-up strategies

BEST MOVES ...AND MISTAKES FOR EARLY RETIREMENT

by Robert J. Reby

Examine and evaluate how much you need to live your lifestyle.

Consider increasing your retirement income from your investments

Take steps to potentially reduce your income tax on your Social Security

Identify which of your investments may be double-taxed to your heirs

Determine if the new rules can save you taxes on your IRA distributions

Have you ever been so fed up with the grind of the daily rat race that you thought about tossing in the towel - wishing that you could just retire even though 65 is a long ways off? If you have, then you may be a candidate for extreme early retirement.

More and more people are considering retirement before 50 – some even retire in their 30s. Many people consider extreme early retirement because they are burned out on their current careers. Others just want to drop out to pursue their true life's calling. Whatever the reason though, the appeal of extreme retirement can be great - but it may not be for everyone.

One of the very first things that you should consider is the other people in your family and how extreme retirement would affect them. Though it isn't impossible to retire very early with children, it certainly does complicate the picture. You will have to give some careful thought to the sacrifices they may need to make because of your decision. Is your partner on board with the idea? How will your decision affect all your other family members? If your plan is to generate an Error! Hyperlink reference not valid. from some other source rather than a regular day job, it may take time to build your business up. Depending upon your choices and dedication to your new ventures you may make a significantly less amount of Error! Hyperlink reference not valid. for a very long time. You may never match your old Error! Hyperlink reference not valid. – or – you may wildly exceed your expectations and make a lot of money. This brings me to a second consideration – uncertainty.

If you can deal with uncertainty, then extreme retirement may be for you. However, many people do not like uncertainty and should avoid it if it generates too much emotional stress. Will you be able to deal with the uncertainty of an unstable income? Can you deal with the uncertainty of how you will spend each day or will the days just drift by you aimlessly? One of the biggest adjustments that an extreme retiree will need to make is the sudden lack of structure to each day. Although most people hold the fantasy idea of this being a wonderful thing, many find it tough to deal with because they end up doing nothing day in, day out and then rapidly fall into a funk, leading to depression.

A third factor to consider is how you will deal with family and friends when you retire early. Will you be ready for their criticisms and worries? Well-meaning family (especially moms and dads) can really wear you out about a decision that they cannot understand and think is financial suicide. If you can show them that you have thought things out, have a plan and understand their worry you will be better able to deflect a lot of their concerns. Friends may be overly critical because they are actually jealous of your bold decision to take an extreme early retirement. Think about ways to deal with all the naysayers that you will encounter.

Once you've given some careful thought to these issues you will have made the very first steps to deciding what is right for you and living the Error! Hyperlink reference not valid. that you want. Cutting back on expenses and learning to live frugally will be part of your plan too, so be sure to check out the links in my Bio box below.

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Kerry Hook - About the Author:

Kerry Hook has a website for all those who want to live well for less. Retirees of all ages are welcome! The Frugal Retiree, loaded with fun quotes, money saving tips, new hobbies and health articles that will help you live a quality life on a frugal budget. Visit: http://www.thefrugalretiree.com to learn more.

For some great tips on how to save money on gasoline, check out: http://www.thefrugalretiree.com/saveongas.html

MEN WANT more than money....they want an early retirement filled with excitement (and great sex), activities, fast cars and good food and drink. Visit our Men's Page

WOMEN OVER FIFTY are sassy and sexy. Find out what we're up to right here

SAVE HUNDREDS OF DOLLARS A MONTH WITH THESE TIPS!

FEDERAL RESERVE SURVEY ON RETIREMENT

Although many of us haven't wanted to broach the subject of aging, the myriad aches, newly discovered diabetes, cardio system alerts and quick glimpses of someone in the mirror you don't even recognize are signs we can't ignore. We aren't going to live forever. It's time to start taking a serious look about our financial and lifestyle futures.

According to the Federal Reserve Survey of Consumer Finances in '04 this is a Financial Snapshot of people ages 50-59.

Median household income:
$60,586

Median net worth:
$182,300

Percent of individuals with home equity
80.70%

Percent with credit card debt
50.30%

Median amount owed on cards
$2,700

Percent with traditional pensions
38.10%

Percent with minor children
40.30%

Be Informed, Get more of the Hard Facts on How to Retire...Click Here

FORCED TO CONTINUE WORKING, OR WANT TO CONTINUE WORKING? The 7 tips to stay marketable and in the game.

If you have to continue working, how do you stay at the top of your game? Keep your skills sharp by doing new projects at your current position. Take ongoing classes to improve areas you are weak in or areas you would like more training in, and keep up to date with computer skills which are sometimes paid for by your employer.

If you are considering leaving the job market, make sure you have names and phone numbers of contacts through your current position. If you've already left the job market network with former associates (careful not to infringe on your former employer's relationships etc with these people of course).

The skills and business finess you've developed through the years are an advantage when seeking new opportunities. Highlight these skills on the newly updated resume and cover letter you will write. You may even want to list your job duties and leave out your title if you are "downsizing" your options without understating your qualifications or skills.

Consider using your professional experience in the consulting arena. This will allow you more flexibility to work the hours, months of the year and location you want to work from. Temp services are also a good transition if you don't want a full-time position.

Perhaps it's time to re-invent yourself. If you have an area of expertise or a hobby you've become proficient at, and you've always wanted a creative outlet for those talents, take those skills and put them to good use. If it's photography for example, start an online business selling photos, or teach others how to get that great shot. Then talk with people who already do that kind of business to find out what it will take to get started...or not.

5 STEPS TO EARLY RETIREMENT

1. Figure out how much you will need to live on. Do the math. Make a list of all of your expenses, including entertainment, emergency funds etc. If, after you do this exercise you discover that ...READ MORE

The 5 worst financial mistakes retirees can make in the coming year

Ignoring the one factor that determines 90% of your investment success

Making the most common and costly error when buying mutual funds

Bond funds can lose you money and you may not even know it

Not understanding or covering your risks for an early retirement

Having the wrong time horizon with your investments

To learn more about the best and worst strategies for retirement, check out Retire without Worry

Early retirement

Author: David Mayer

The world is often a confusing place and nowhere is the confusion likely to be so complete as in the tax system. Here we have the best brains in the Government taking on the best brains in the private sector. The Government wants the maximum tax take. The private sector wants to arrange things so that no one with money ever has to pay any tax. Somewhere in the middle the two world-views collide and, usually, some tax is paid. Anyway, when President Obama signed the healthcare reform bill into law, some of the largest employers in the US let out a collective sigh of pain. As an example, Caterpillar is the world's largest manufacturer of excavators and bulldozers. The day after the President's signature, Caterpillar announced it was taking a charge of $100 million to earnings over an expected loss of tax benefits. A number of other influential corporations have also made allowances in their accounts. The reason is that the healthcare reform ended a tax break given to cover the cost of supplying drugs to early retirees.

Let's take this step by step. If a person continues to work, he or she will be covered under the employer's plan. All other things being equal, working up until you are entitled to Medicare gives continuity of coverage. But there was always a problem if someone took early retirement. Insurance companies were reluctant to insure older people who might more quickly develop serious medical problems. So, to give people aged between 55 and 64 a bridge until they became eligible for Medicare, employers were given a tax break to enable them to pay for their ex-employees' drugs. With the disappearance of the tax break, employers were therefore left with an obligation to pay for drugs without any relief.

Acting through Kathleen Sebelius, Secretary to the Department of Health and Human Services, President Obama has announced a $5 billion package to offset the loss of the tax break. This will run from June 2010 to January 2014 when the individual health plans offered through the new exchanges should come onto the market. It is estimated that about 4,500 private and public employers will be eligible to claim from this new fund. The intention is to provide continuity of coverage under the current health plans and it will be condition that the employers maintain their contributions, i.e. federal money is a top-up not a substitute for payment by employers. Ms Sebelius has also made it clear that the individual health plans offered to early retirees must include coverage for chronic and high-cost diseases and disorders. Employers cannot cherry pick the diseases to be covered. That means the victims of heart attacks or those diagnosed with diabetes and cancer will get continuing support under the plans if federal funding is to be drawn down.

In general, the business community has been slow in showing its gratitude. The feeling seems to be that Government made a mistake when pushing through the reform bill and was now offering a fraction of the total money required to fill in the hole. Nevertheless, the President has recognized the problem and made funds available to help offset it. Whether these funds will prove sufficient is something we will have to wait and see. For the retirees, it should mean access to benefits with fewer hassles.

Article Source: http://www.articlesbase.com/insurance-articles/early-retirement-2591651.html

About the Author

David Mayer is a frequent contributor to http://www.hiinetwork.com/employer-health-insurance-plans-get-a-boost.html and is a highly regarded writer, having professionally dealt with numerous subjects. Visit the site to read David Mayer's contributions.

Follow the steps at the links above and early retirement can be yours.