Retirement Planning 101

Many financially successful individuals begin retirement with the belief that their personal savings and holdings, coupled with company retirement packages and Social Security will enable them to retire comfortably. The cliché "ignorance is bliss" may apply in some situations but certainly not when it comes to retirement planning. Failing to accurately calculate what your income and expenses will be during retirement can keep you from enjoying what should be one of the most relaxing and best times of your life.

Before you make any major decisions, it may be beneficial to review some of the common mistakes people make in retirement planning. Doing so can not only help you avoid such errors, but may motivate you to do some serious planning and saving before it is too late.

Better Late?

When it comes to retirement planning, many think that it is better late than never. While you can always begin planning later in life, the options and opportunities available begin to dwindle as you get older. If you do start later, you will have a harder time recovering from any life events or economic situations that may occur. Remember, you can never start saving and planning for retirement too early.

Company Benefits

Keep in mind that the retirement benefits your company offers may alone not be enough during retirement. People often misunderstand what their company benefits are and how they work. Make sure you understand and track your benefits so you will be able to make any necessary ongoing adjustments to your plan.

The Social Security Trap

Social Security should not be viewed as a safety net for individuals who retire with little to no income and assets, especially given the current situation of Social Security. At most, the program should provide a small buffer to help financially when you no longer have a steady income. Play it safe and keep in mind that Social Security should only be a small part of your overall retirement plan.


While Medicare is often the main health insurance for older individuals, it will not be enough to cover all health care costs. The costs of Medicare increase often and any difference in cost will have to be made up in some form, whether directly out of your pocket or ultimately from the cost of any additional health insurance you obtain. Be sure to take this into consideration during your retirement planning.

Perhaps one of the biggest mistakes people make is they seem to think they will need less money to live on during retirement. The cost of living does not decrease during retirement! While some individuals may be able to live on less during retirement, most can not. A number of things may attribute to this including rising health costs during retirement, leisure and entertainment costs, and travel expenses. In addition, individuals who may have had children later in life may be faced with college tuition costs. It is imperative that you closely (and realistically) analyze what your expenses will be during retirement so you can include them in your retirement plans. One of the best ways to achieve such an objective is to hire a financial analyst to help you plan your retirement. Doing so will ensure that you spend your golden years enjoying life to the fullest, not trying to make ends meet.

How to Use Retirement Planning Calculators

In terms of planning for your retirement, retirement planning calculators are an effective tool in order for you to decide exactly how much it should take for you to retire. Determining the particular amount that it should take you to retire isn't an easy to do. It is also a whole lot more difficult to decide how much money you need on monthly basis in order to live the kind of life that you want to live. This article gives some bits of advice that can easily help you out.

The internet is a terrific invention because it allows you to do a lot of great things. If you use the internet you will be able to find a large number of retirement planning calculators that you can use to your advantage. These calculators may seem easy to use but they are only guides and not precise numbers. Companies that supply you with these tools want you to opt for their services in order that you hire them to create a retirement plan so don't think too seriously about any numbers you see.

Any person over the age of 40 has to get serious about planning for their retirement and anyone below that age should have started thinking about it. Retirement planning calculators start off by determining what your current age is and also determining the particular age that you aim to retire. You should attempt to use two separate calculations and retirement ages that vary at least 7 years apart to see which one benefits you the most.

Other fields will attempt to determine the current income you earn now as well as the desired income level you wish to attain and the desired estate value. All these questions only go to show that these companies providing you with these calculators want to you to contact them because these questions are rather basic and not thorough enough to get to the real issues that have to be looked at.

Retirement planning isn't a very straightforward art and it is a very tricky thing for you to try to determine how much longer you may need to work before you can retire. It is also effectively difficult to determine how much money you require to live the kind of life that you want to for a particular month. Because of these reasons you have to seriously think of either visiting a particular company in order to have them carry out the calculations or use online means in order for you to benefit from one.

What you have to determine is what in particular you need to think about before you use any retirement planning calculator. The first of the things which you need to think about is to think about what in particular you dreams are because opting for something less won't make you happy or satisfied with the results you get. Retirement planning calculators can only calculate the figures that you input into it, your life should be a whole lot more important than anything else.

Retirement Planning in Canada

Retirement Planning! (Canada)

What is retirement planning?
A simple definition is: The setting aside of enough money during one's income earning years to provide an income during retirement.

Seems simple enough, doesn't it?
In years gone by it was possible for the money set aside in this manner and supplemented by Government assistance such as the Canada Pension Plan and Old Age Security, to provide for a comfortable and dignified retirement lifestyle.

Canadians have a Registered Education Savings Plan (RESP) for their child's higher education; however, I believe we also need a Retirement Education Savings Plan, for everyone else.
Neither age nor income level should prevent us from taking an active and proactive interest in our retirement planning.

We have been alerted to the possibility that those of us newly retired or soon to retire will not be able to count on the Government support that our parents did.
We are on our own!
If we are to achieve and maintain a financially secure retirement we must become knowledgeable, informed and involved in creating the income that will support our retirement financial needs.
Fortunately, technology has made it increasingly easy for anyone with the desire and initiative to get as much information as is needed to begin to take an active role in their own financial planning and welfare.

Because we are living such longer and more active lives many of us will need almost as much income as we needed before we retired.
Then too, health issues can place a bigger financial strain on our retirement income.
So, if we do not want to live a limiting and financially restricted lifestyle when we retire, we must take steps today that will ensure we have the financial means to enjoy a secure retirement.

So, how will you handle retirement?
Burying your head in the sand is not an effective plan. If you plan to retire, you can and should learn about the many effective and efficient financial strategies and vehicles that will ensure that your "golden" years really are "golden".

There are those in the financial industry who present a doom and gloom attitude about what they perceive will be the lack of sufficient retirement funds for a majority of future retirees.
I do not agree with this outcome as a foregone conclusion.

Retirement Planning Finance Software - How To Track Your Finances With The Right Software

Retirement planning finance software can be a huge benefit to in helping you to keep track of your income and expenses. Quite simply, the average person does not keep nearly as good as track of their income and expenses they should be, and then they wonder why they are so deep in credit card debt. Quite simply, a lack of knowledge of their overall financial situation is why most people find themselves in deep credit card debt, with virtually no way out.

The reason that most will find themselves in the rat race their whole lives is simply a lack of financial knowledge. This can be quickly overcome with the use of retirement planning finance software. Quite simply, this retirement software will easily and quickly help you to list your income and expenses and help you keep track of them, in order to help you plan for your retirement.

Simply by keeping track of your income and expenses, this will get you into a great habit for the rest of your life, not just your retirement planning. The only way to achieve financial wealth is to make sure you're bringing in more money than you're giving out; without this information, you'll never be able to achieve this, simply because you can't track it.

Of course, the task of writing down your expenses every single time you purchase something can be quite arduous; this is why at the end of every single day, you should list how much money you brought in how much money one out of your pocket. By doing this simple exercise and keeping a personal budget, you will get in a great habit of keeping much better tabs on your expenses, and ultimately will achieve financial freedom as a result.

Of course, retirement planning finance software can also help you to find out how much money a certain investment to your considering will bring in by the time you retire. Of course, without knowing your retirement planning goals, this information will be virtually useless; however, once you realize how much money you'll need when you're retired, this feature in retirement planning software can be tremendously useful for you in your budgeting. Therefore, purchased the right retirement planning finance software, and achieve the retirement goals you set for yourself.

Retirement Planning Expense Worksheets - Why Keeping Track Your Finances Is Crucial

Retirement planning expense worksheets can be a great way to help you keep track of your expenses in your everyday life. Unfortunately, the vast majority people will never take the ever important step to keep track of their income and expenses, in order to make sure that they taking in more than they're getting out.

Of course, this is not all their fault; most people were not taught very much in the way of finances through school, and therefore have little idea how to turn a profit and be profitable. Retirement planning expense worksheets can be a great way to help you keep track of your expenses and make sure that they are lower than the income you're bringing in.

Also, there's some great retirement planning software you can usually find on the Internet to help you in this process as well. So how can you best utilize these worksheets? First of all, set up your income and expenses in the form of an income statement; now, every time that you make some money, list it as income.

Every time you spend money, list in as an expense. Keep this tab every single day, and check on it at least a couple times a month. This way, you will be able to make your money and investing decisions accordingly. At the end of every day, sit down and do this, and make it a nightly routine; inevitably, you will become more aware of your finances, and you won't find yourself in the hole every month, like you probably do now.

Of course, one of the best ways to achieve your retirement plan goals is to invest your money. Don't simply spend your money as fast as it comes in; put aside a lease 10% of every paycheck you get in into wealth building fund.

Most people will never take this simple step, but it will pay huge dividends for you down the road, when all the compounding interest is working your favor. In fact, Warren Buffet called compounding interest eighth wonder of the world.

The bottom line is this: retirement planning expense worksheets are essential in order to help you keep track of your income and expenses. Simply being more aware of your finances and your overall financial situation will make you will help you make better financial decisions when it comes time to buying or investing in certain items.

Not keeping tabs on their income and expenses is why the average American today's $8,000 in credit card debt. If you keep better track of your expenses, you will find yourself in this situation.

Retirement planning expense worksheets will definitely help you to keep better track of your expenses and your overall financial situation. Ultimately, this will be a great benefit to you in helping you plan to plan for your retirement and achieve your retirement goals.