Retirement Planner – Retirement Planning: The Amazingly Simple 5Ws (and 1H) Formula

Are you, like countless millions of others, so-called “planning your retirement” i.e. crossing your fingers and hoping your nest egg will provide for you during your golden years but really not sure if it will?

Whether you’re 35 or 55, don’t fool yourself into thinking that building a nest egg and dreaming of walking off into some kind of ‘retirement sunset’ is retirement planning, it’s not.

Check out this amazingly simple and helpful 5Ws (and 1 H) formula of retirement planning.

The 5Ws (and 1H) Formula of Retirement Planning

The 5Ws (and 1H) retirement planning formula will allow you to start formulating a “who, what, when, where, how and why” mental picture and corresponding plan of action for your retirement.

1. Who – Who are you going to spend your retirement with?
2. What – What is the minimum monthly income you will need to cover your likely expenses?
3. When – At what age would you ideally like to retire?
4. Where – Where are you going to spend your retirement?
5. Why – Why do you want to retire anyway?
6. How – How will you generate income during your retirement?

Read More about The Retirement Planning 5Ws (and 1H) Formula...

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Don't simply retire from something; have something to retire to. In addition to planning your retirement income you must also plan your retirement activities...Read More

Retire from Work, But not from Life!

Retirement doesn’t have to mean you have to spend the remainder of your days on the golf course and nights as preferred babysitter to your grandchildren! How

If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at www.MillionaireMindsetSecrets.com for FREE. In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

Retirement Planner – Cat Food or Cavier?!

In my previous posts I reviewed the need for a good retirement planning as well as the different retirement planners and options. To continue my thoughts, today I will be reviewing the different standards of retirement income e.g. having retirement plan is not the end of the work, making sure that retirement plan will be adequate to your needs in your late years is what matters more.

Cat Food or Caviar!?

A standard employer-sponsored retirement savings plan such as a 401(k) is the mainstay in most financial retirement plans.

Individuals can utilize a standard IRA or Roth IRA also. Many self-employed people opt for a Self-Directed 401(k). Relying on a standard retirement savings plans will prove unsatisfactory as it generally will fall way short of your retirement income needs. However, faced with a choice of having a standard retirement savings plan (e.g. a 401(k), standard and non-standard IRAs etc.) versus having no retirement savings plan at all, I would definitely prefer to have even a standard 10% of my earnings invested in standard retirement plan than in nothing at all. If nothing else it’s a good habit to “save and invest” a % of your income. However, unless you are putting away large chunks of cash into your retirement plan, it alone is probably not going to give you more than a lower-middle class lifestyle during your retirement.

Typically, if your retirement income needs are modest, social security benefits may provide 20-30% of your retirement income whilst employee-sponsored retirement plans may provide 20%. Therefore, it is your personal savings and investment strategies that will be the key differentiators between you living off cat food or caviar!

If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at http://www.MillionaireMindsetSecrets.com for FREE. In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

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For many people their job-description becomes their self-description and so when they retire from work they can feel worthless and wither away fast. To cap things off, many retirees at 65 die within 2 years of retiring. Jeez, what an anti-climax! It’s no wonder people don’t bother planning their retirement!

No Job, No Stress, No Pay!

A popular rule-of-thumb claims you need roughly 70% of your pre-retirement income (90% if you wish to maintain your pre-retirement standard of living). Work-related expenses will decrease whilst health care, leisure-related expenses increase. This assumes you’re in relatively good health and medical care costs are modest. If your health is poor your health care expenses will escalate.

Financial security during retirement is probably priority no. 1 for most people. To live securely and comfortably in retirement for many people means at the very least generating sufficient income passively by means of some retirement savings plan or other financial assets to allow them to live according to their usual standard of living.

There are 4 typical sources of retirement income:

• Social security benefits
• Employer-sponsored retirement plans
• Post-retirement employment income
• Personal savings and investments

Whilst you may be diligently putting away for your retirement, the real challenge is to know your retirement income needs way before you ever want to retire. Try one on the many retirement income calculators available online to work this out.

When calculating the expenses you will have in retirement, keep in mind that they are in today's dollars. To get a better idea of what they will be when you are ready to retire, you should adjust them for inflation. A current income need of $20,000 per year adjusted by 4% inflation year on year translates to a requirement of $43,800 per year 20 years later.

If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at http://www.MillionaireMindsetSecrets.com for FREE. In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

To the readers: What is your preferred retirement plan? Share in the comments below

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No one disagrees that retirement planning is a good thing yet many people fail to take time to plan. If there is a retirement plan in place, it has often been left till the last minute, maybe even just a few years before retirement. This article offers an outlook on retirement planning that may shock some of you.

If you love doing what you’re doing you’ll most likely never want to retire. It’s often said that most of the wealthiest people in the world still work in their own companies not because they have to but because they want to and enjoy it. However, I bet you they all have retirement plans folded away neatly in their back pockets.

Retirement Planner - No Job, No Stress, No Pay!
Financial security during retirement is probably priority no. 1 for most people...Read More in my next post

Retirement Planner - Cat Food or Caviar!?
Relying on a standard retirement savings plans will prove unsatisfactory as it generally will fall way short of your retirement income needs. However... Read More in my next post

P.S. If you’re serious about retirement planning then why not sign up NOW for more insider secrets on Retirement Planning at www.MillionaireMindsetSecrets.com for FREE.

In addition, you’ll discover more about how to build wealth and income using clever savings and investment strategies at www.MillionaireMindsetSecrets.com for FREE.

To the readers: What is your preferred retirement plan? Share in the comments below :)