"At the end of WWII, there were 42 workers paying into Social Security for each person receiving benefits. Today, barely three people contribute for each recipient. Projections are that by 2030, when most baby boomers will have retired, just two working people will contribute for each person receiving benefits. (Social Security Administration, Trust Funds Report, 1992)." (Saperston Asset Management Inc.)
"Social Security benefits will replace only 16% of the income of married couples earning $50,000 to $100,000 and only 9.5% of the income of married couples earning $100,000 and only 9.5% of the income of married couples earning $100,000-plus. (Office of Research and Economic Analysis, Pension and Welfare Administration)." (Saperston Asset Management Inc.)
"Working people tend to think their retirement lifestyle will be better than their current lifestyle, but retirees report their standard of living has declined. Example: Twenty-six percent of workers say they are "just making ends meet," but only 16% think they will live this way in retirement. Of retirees, 20% are "just making ends meet," while 16% describe their pre-retirement lifestyle this way (Employee Benefit Research Institute)." (Saperston Asset Management Inc.)
Is this the reward for a life of ardent labor and selfless devotion? I would like to think not. I did not write this article with the intent to trouble you, instead I have written it in hopes of awakening you to the issue before it's too late.
Now that we have discussed the problem, let's discuss some solutions.
If you're still in your youth, roughly between the ages of 20 and 35 you still have time to start a traditional savings plan that will over time build you a comfortable nest egg for retirement. But my main focus in this article is to help those with much less time before retirement.
What do you do when you only have a few years left before retirement and you realize that you don't have enough set aside to live the life of luxury and leisure that we all hope for. Should you put your dreams aside and continue to work through your golden years? No one should ever have to do this. No, instead I propose you take fate into your own hands, flip it upside down, and shake it until his pockets are empty. Than pick up the cash dust yourself off, and enjoy your life.
Ways to "Flip Fate" - Retirement Plans & Solutions
Money is a game of self education. Those who have it prosper, those who don't fail. It's that simple. So pick an option and get educated, your retirement depends on it.
401(k)'s & IRA's Time to put these bad boys into overdrive. Start plunging huge chunks of your monthly income into either your 401(k) or your IRA. If your company provides a lucrative compensation matching plan, than hit that 401(k) hot and heavy as it has the potential to provide a return of up to 25% 50% and sometimes even 100%!
Stocks & Mutual Funds If you know what your doing, or have an Einstein of a broker, you may want to take a look into this option, as the stock market is a proven money maker for those who know the game. For those who don't stick with mutual funds and a good broker.
Second Job This is not a pretty one, but drastic situations call for drastic measures.
--------------------- These last two are quoted directly from MSN's "Money Central" and are probably the two which are the most immediately lucrative choices you have.
"Plan to sell your house and buy a smaller one or get out of the real estate market altogether. This is especially true if you're planning to move to a retirement community with lifetime services. If you need your home equity for living expenses, you can always take a reverse mortgage."
"Start a business on the side. There are many benefits to this, especially if you're close to retirement. First, you can usually contribute up to 25% of your self-employment income to a tax deductible Keogh plan even if you're already putting money in another plan.
The second benefit is that your new knowledge and experience makes you more valuable to your current employer. Third, if you're laid off or experience job discrimination in terms of a pay raise, you have another income. Also, once you're officially retired from your primary job, you have a nice business that can continue to generate income. It gives you some great tax deductions and still allows you to sock away money for retirement, whenever you finally decide you can afford to slow down."
Your financial future is dictated by the choices you make today. Don't let retirement sneak up on you as it has so many others. Make a decision to take action today. Good luck, and enjoy your retirement!
Wishing you success, Michael Bosse mike_jb2@hotmail.com
Health, Wellness & Wealth - The Freedom and Time to Enjoy Life to it's Fullest! Be part of the next Trillion Dollar Industry...Health! Benefit from the best health products available, than share them and profit http://www.artofhomebusiness.com/V4L
About the Author
Micahel Bosse resides in the beautiful San Diego County. Michael is an advocate of wealth through knowledge. He owns and runs several successful businesses, and spends his extra time teaching others to duplicate his success.
Written by: Michael Bosse
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