Retirement Preparation Bronx NY

Many people, after having invested much of their money into a safe 401k fund, are ready to begin their retire with no money problems.

Local Companies

George Martin Poole
HFH Planning Inc

(212) 402-5444
75 Maiden Lane #605
New York, NY
Stacy Francis
Francis Financial

(212) 374-9008
111 John Street, Suite 240
New York, NY
Cindy Sterling
Sterling Financial Planning

(212) 405-1616
215 Park Avenue South, Suite 1402
New York, NY
John Belluardo
Stewardship Financial Services, Inc.

(914) 380-1421
39A Cedar Street
Dobbs Ferry, NY
Gary Schatsky
IFC Personal Money Manager, Inc.

(212) 721-8713
250 West 57th Street, Suite 1619
New York, NY
Gerard Barrasso
United Financial Planning Group, LLC

631-234-0871
1979 Marcus Avenue
Lake Success, NY
James Ludwick
MainStreet Financial Planning, Inc.

917-320-5460
1440 Broadway, 23rd Floor
New York City, NY
James Kearney
Quadrant Capital Management, LLC

(973) 783-8032
7 North Mountain Avenue
Montclair, NJ
John Henry Low
Knickerbocker Advisors Inc.

(212) 717-8080
230 Park Avenue, Suite 456
New York, NY
Lauren Locker
Locker Financial Services, LLC

(973) 256-2555
50 East Main Street, Ste 5
Little Falls, NJ
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Author: Eric Bayne

Many people, after having invested much of their money into a safe 401k fund, are ready to begin their retire with no money problems. But how many of them have actually taken the time to take a pen and calculator and begin to compute exactly how much of their monthly expenses that their 401k will actually cover? Many haven't, and many are shocked when they find out how much of a shortfall they have.

Most people never take the time to map out a long term retirement strategy. For some reason, doing so never seems to rise to that level of importance. Sure they'll save a little here and there and some may even have a structured savings plan where a certain amount of money is taken out of their paycheck weekly and deposited in a fund. But very few people go through the hard process of putting down in writing such basic facts as what age they plan to retire, how much money they'll need when they retire, and how much money their fund will provide for them when they retire.

And that's a big mistake. It's also why when the big day finally comes, many new retirees will belatedly discover that their 401K and Social Security payments will not even come close to covering their monthly dollar outlays. So, unfortunately, at the age of 65 or whatever age they retired they discover that they have to go back to work - sometimes part time but sometimes full time - in order to make ends meet.

So, why does this scenario happen so often? And is it avoidable? To put it bluntly - it happens because they failed to make themselves a retirement plan. And yes, this situation is avoidable - if you don't wait too late to start. So let's start now.

Here's a practical, easy way to at least begin to create a retirement plan. How much do you currently earn a month? Most experts figure that you'll need at least 60 to 80% of your pre-retirement gross income to keep you at the same standard of living that you now enjoy. So let's be conservative and figure that you'll need 80% to be comfortable. So, if you make $4,000 a month, your retirement fund plus Social Security payments would have to provide you with at least $3,200 a month.

Now ask yourself. How much will your current 401k fund plus Social Security provide for you at retirement. Is it at least 80%? This part may take a bit of work on your part, but there are calculators all over the Internet that can help you to answer this question.

If you discover that your retirement fund as currently constituted will not provide you with this 80% of your pre-retirement gross income, you have one of two hard choices to make. You either make a conscious decision to lower your standard of living when you retire. Or, you make a conscious decision to increase the amount of money that will be in your fund when you retire. You can do this by either taking extra jobs and placing the excess money in your retirement account or by choosing more profitable investments. Whichever decision you choose, at least you won't be going into your retirement years financially blind.

Now admittedly, this quick and dirty retirement plan analysis does not take into account many factors that a thorough analysis would. For example, we've left out factors such as whether your house has been paid off at retirement, whether you'll still be supporting your children at retirement, and whether you have other substantial debt loads. And it's more than worthwhile for you to map out a thorough retirement analysis plan as soon as possible. But even a quick and dirty plan such as this is more than most people do and is better than no plan at all which, unfortunately, is what most people have.


About the Author:

Eric Bayne is writer and researcher for http://www.retirementplanhelper.com . Visit his site to find out where you can find information on retirement plans for self employed .

Article Source: http://www.articlesbase.com/finance-articles/can-you-afford-to-retire-when-you-reach-retirement-age-810064.html

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