Posts Tagged ‘IIP MaxPro’
Retirement Plans Threatened? Need to Increase Your Retirement Income?
Threats to Your Retirement Income
If you’re part of the “Baby Boomers,” you’re likely giving serious thought to stopping work – provided that you haven’t already stopped working. And if you have already retired, you’re probably considering whether you’re going to be able to continue to be comfortably retired.
Present recessionary economy complicates the retirement question substantially by increasing the following retirement oriented economic contingencies:
1. Life Expectancy Has Been Extended
Today, life expectancies are longer than their parents’ generation. For example, in 1970, a 60-year old white male would have had a life expectancy of an additional 16.2 years; however, by 2008, his life expectancy had climbed to 20 years.
So how is the Boomer going be able to afford retirement during those bonus 3.8 years? There are only a few probable solutions:
> Accelerate current savings
> Work beyond early retirement
> Move in with children
> Accept standard of living
2. Health Care Costs Keep Rising
Adequately funding one’s medical care programs are among the most difficult financial planning tasks, largely because medical costs are so individualistic, with requirements differing substantially between spouses. Long-term care requirements are even more difficult to plan for and fund.
Medical expenses have risen faster than 5% (inflation adjusted) for the past 15 years – a rate that is higher than the growth in family income. Medicare costs are expected to rise similarly.
3. Government Actions May Limit Retirement Income & Supplemental Programs
It is well known that the costs of major entitlement programs (e.g., Social Security, Medicare, and Medicaid) are growing faster than other parts of the economy, and some experts question their long-term viability because of the cumulative effects of increased longevity, size of the Boomer population, and rising health care costs in general.
Further, immediate questions regarding continued health insurance in retirement, and at what benefit levels, are rampant in today’s economy – and these questions are further fueled by the reorganizations occurring, especially among the auto industry.
There is currently a lot of debate about a national health care program – but such discussions have been ongoing for decades, with few benefits to show for those efforts. Although President Obama will be leading such efforts this year, many people anticipate Congress to present a lot of opposition.
Many believe that people past age 55 will be exempted from reductions in these social programs, but providing full coverage for them is a two-edged sword – doing so increases the likelihood of a new value-added tax, which would effectively add to retirement tax burdens.
4. Retirement Dates Are Frequently not Totally Up to the Individual
According to a 2004 Health and Retirement Survey (HRS), 37% of seniors are forced to retire. This can occur due to poor health or downsizings, etc.
5. 401Ks Have Been Decimated
Did your 401k and other retirement savings take a major hit with the stock market crash in 2008? My investments were deeply affected. Many comedians now refer to 401Ks as 201Ks because of the drop in the stock market. For many people, their 401k was the bulk of their retirement savings, so this stock market meltdown substantially damaged their retirement plans.
Humpty Dumpty Had It Wrong
But, the news is not all bad. Luckily, you can repair a broken “Nest Egg”.
You can work longer, semi-retire and take a part-time job, work from home, start your own business, etc.
If you’d like to start an online business, but are hesitant because you’re not an internet expert, one very good starting point for gleaning all the understanding about internet marketing that you will need to be successful is to join the Online Success for Beginners program.
A report by Butrica, Smith and Steuerle (2006) noted that working just one (1) extra year can increase annual retirement income by 9%, while working a total of five (5) extra years can generate an extra 56% annual retirement income.
If you’d like to learn how to generate a supplemental income, so that you can have a luxurious, financially secure retirement, check out Darren Salkeld’s new MaxPro Marketing System and get his FREE Report and FREE Audio describing the age-old secrets of creating wealth.