Guest Post by Lilian Lewis

Are you about to retire? How are you preparing for it?

Perhaps you have already retired.

Having a retirement plan to accomplish your later life goals is the ideal course of action to take. However, if you haven't adequately prepared for this eventuality, it's never too late. 

The financial moves you make in your last 5 - 10 working years can make a difference in your life. 

What financial moves can you make to increase your savings or investments to boost your retirement package? Let us explore a few ideas to get you back on track.

1. Automatic saving plans are best

The fact that you should save for retirement is evident to many of us; the problem we face is saving money consistently due to the many obligations competing for our income, including mortgages, college payments, among many other responsibilities.

Surmount this problem by creating an automatic saving system that deducts money from your salary every payday and sends it to a retirement plan of your choice.

2. Determine your retirement needs 

According to pension experts, most people require a minimum of 70 percent of their pre-retirement income to live. This is money for daily needs, like housing, food, and health expenses. 

Determine how much you have put away already and to determine how far along you are.

That will help you to find out how much more you can put away to increase your savings. It will also show you when these savings become vested so that you know they are fully available to you.

3. Start saving retirement money in IRAs

IRAs offer attractive tax advantages for savers that will make it worth your while. You can choose from two varieties: traditional IRA accounts and ROTH IRA accounts.

The money you save in traditional IRA accounts is pre-tax, while ROTH IRAs get you tax breaks in the form of tax-free withdrawals.

The maximum amount of money you can contribute to an IRA account if you are over 50 is $ 7,500. That's a standard $6,500 contribution and an extra $1,000 for people 50 years and older.

Married couples can contribute savings to two IRAs if they file their taxes jointly through a spousal IRA savings plan. This is a great way to create a comfortable nest egg for your old age with your spouse.

4. Use financial retirement tools

There are many savings tools that we can use to put aside money for our later years including 401 (k), 403 (b), and 457 savings plans, which are not subjected to tax until you withdraw.

These are workplace savings plans that you can fund to the max. People under 50 can contribute up to $23,000 to a 401 (k) plan annually. If you are over 50 years, you may add $7,500 to this standard amount as catch-up contributions.

5. Social security retirement benefits

The amount of social security benefits you can get is calculated based on your average indexed monthly earnings (AIME). These calculations are done during your 35 highest-earning years. 

You can start getting money from your Social security fund typically from age 62, but you will receive your maximum benefit if you wait until age 70. The benefits from your social security can make up as much as 40 percent of your pre-retirement income.

Therefore, make sure your social security documents are up to date and follow the rules concerning this scheme to secure your social security benefits.

6. Talk to retirement investment experts

You will find retirement experts in many financial institutions, be it banks, labor unions, government savings organizations, and even the human resources/financial section in your workplace.

A retirement expert can help you explore other options to diversify your savings including blue chip stocks, government bonds, certificates of deposit (CDs), and real estate investments.

Bonus point!

Document everything that you have invested in by drawing up a will. This ensures all your loved ones are well cared for in case of your demise or incapacitation. Get legal counsel to assist you with this. 

Final thoughts on what to consider when planning for retirement

In summary, here's what to focus on for your retirement:

• How much money do you need to retire comfortably? 
• How much interest would you like to earn from your retirement savings yearly?
• Which retirement savings options are available to you?
• Are there other ways to save money for your later years?
• Are you prepared for accidents, death, or incapacitation in your later years?

Remember, there is no limit to what you can save for retirement. Aim to set aside the highest amount you can.

Lilian Lewis is a writer who works closely with New Jersey Law firm, Aiello Harris. When not hunched over her computer writing on various legal matters, you can find her baking all sorts of goodies, and hiking the local trails to work off the goodies. 

Photo by RODNAE Productions, pixels.com

HappilyRewired.com is a Wearever Top 20 Senior Blog and a Top 75 Baby Boomer Blog

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Guest Post by Julie Gorges

Editor's Note: My colleague Julie Gorges writes Baby Boomer Bliss, a blog I highly recommend. She recently posted an article that referred to "5 positive traits of boomers." At a time when there seems to be a fair amount of boomer bashing in various media, I asked Julie for permission to share an excerpt from her article because I think it does a great job of highlighting some of the really good things about the Boomer Generation. Here they are...

1. Boomers are Good at Reinventing Themselves

Not being content to sit in a rocking chair reminiscing about the past after retirement – like some of our parents and grandparents – many boomers are still active, eagerly learning new things, and becoming more creative as they age.

Boomers may not be up on all the latest trends, but they remain young at heart.

Boomers tend to consider themselves a work in progress. Many are making spirituality and personal growth a priority, opening themselves to new experiences (like learning sign language and shark cage diving, in my case), and striving to reach their full potential.

Thanks to boomers, turning 60 or even 70 is no longer a professional death sentence as it was in the past. Many boomers are postponing retirement, both for financial and personal reasons. This has opened the doors for younger generations who, if desired, have a better chance of working as long as they want.

Often boomers are maligned for being technically deficient. However, many boomers have embraced new technologies like texting, videoconferencing, online banking, tablets, tech savvy homes, and social networking sites. A lot has changed, but boomers are enthusiastic about technology that’s valuable to them.

In my opinion, we’ve changed the way people age. And that’s a good thing for upcoming generations.

2. Boomers Value Family Relationships

Personally, I grew up in a traditional family that ate dinner together every night, watched The Wonderful World of Disney every week, attended religious services, and took camping trips together.

As a result, I practiced these same values with my own children and grandchildren. As a reward, we all remain close.

Just proves different generations can get along and even love each other!

3. Boomers Influenced Rock and Roll

As the article, “27 Amazing Things Baby Boomers Have Done for Humanity” points out on their website Mercatornet, the boomer generation changed music forever. “Popular music will never be the same after the 70s. These musicians [Bob Dylan, the Beach Boys, and the Bee Gees] passed on an undying legacy with their lyrics, experimentation and harmonies.”

Of course, the 60s also changed music in a major way, becoming a vehicle for social change.

Brian Ward, a professor in American Studies at Northumbria University wrote in his article for the Gilder Lehrman Institude of Natural History, “What’s That Sound? Teaching the 1960s Through Popular Music: “Even students far too young to have experienced the decade first-hand often recognize a whole range of sounds as evocative of the era. The Motown soul of the Temptations and Marvin Gaye; the folk revivalism of Bob Dylan and Joan Baez; the folk-rock syntheses of the Byrds; the surfing sounds of the Beach Boys; the free jazz of Archie Shepp and Ornette Coleman; the girl-group sounds of the Chiffons and Crystals; the southern-fried soul of Percy Sledge and Otis Redding; the lush Nashville countrypolitanism of  Eddy Arnold and Tammy Wynette; the country-rock blends of the Flying Burrito Brothers; the progressive, psychedelic sounds of the Grateful Dead and the Doors; the self-reflective meditations of singer-songwriters James Taylor and Laura Nyro; the daring blues-rock-jazz blend of Jimi Hendrix; the pioneering funk of James Brown; the garage rock of the Standells and Seeds; and the avant-garde noisescapes of Captain Beefheart and the Velvet Underground.”

I would add The Rolling Stones, Queen, Creedence Clearwater Revival, The Eagles, Tom Petty, Fleetwood Mac, Eric Clapton, Elton John, and Simon and Garfunkel to the list of classic rock singers and bands that influenced music forever.

Many younger people still listen to these musicians today.

4. Boomers Tend to Work Hard

Boomers typically do not shy away from hard work. Most boomers grew up in well-structured and disciplined households. Boomers were taught to respect their parents and grandparents and do their chores. As a rule, boomers are self-disciplined, highly motivated, and focused on goals in life.

You would think that’s a good thing. But these qualities are often used against us. Boomers are called “workaholics” and a “greedy generation,” perceived as always putting money first. However, growing up in a spiritual family, these were not the values I was personally taught. I’d venture many boomers would say the same.

5. Boomers Want to Give Back

Now, can we talk a little about the blame game? Boomers are seemingly responsible for all that’s gone wrong in the world. In part, due to the size of their generation. By the way, is it my fault that my parents’ generation had a bunch of kids making the population “boom?” (The basis for the name of our generation, baby boomers.)

Good thing we weren’t around for the Great Depression. Somehow, that would be our fault too.

At any rate, baby boomer blaming seems like a way of oversimplifying extremely complex issues.

Although I do not feel personally responsible for every problem in the world today, I do understand the younger generation’s frustrations. For example, many boomers know how difficult it is for younger people who face challenging economic conditions today.

As a result, many parents have been generous with adult children who often need to live at home longer than expected. Some help their children financially even to their own detriment. And many grandparents are helping care for their grandchildren to help adult children save on child care costs.

In addition, boomers tend to look for a mission in life that offers meaning and purpose. Many of us are involved in volunteer work and our community.

Julie Gorges is a blogger, writer and author of non-fiction and fiction books. Check out her blog at https://babyboomerbliss.net

Photo by Towfiqu barbhuiya at pexels.com

HappilyRewired.com is a Wearever Top 20 Senior Blog and a Top 75 Baby Boomer Blog

Check out Books for Boomers!