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The notion of not having to get up early and go to work every day is certainly something most of us look forward to. All the more with the increasing high fuel cost and traffic conditions. However, retirement brings a different set of challenges – the potential of a smaller income, lesser spending power and the lack of meaningful daily activities for example. Some of us base our importance and identity on our jobs for the status and respect that our experience contributes to the organization, fellow colleagues and business associates. By retiring, we fear the loss of recognition that accompanies a job and our stand in society.

Retirement is not tied to a specific age group now. For some, it indicates a new phase of life, whether they are 30 or 60 years old. Whatever the age, a significant issue and question to this is, how do you work towards and fund your retirement?

Research has shown that people who have retired and living comfortably with holiday trips and spending their time in their hobbies, sports or community activities are those who have really planned and worked towards their retirement.

Continue reading ‘Ready for retirement from work?’ »

Planning your finances properly is imperative before you plan out your retirement. It has been rightly said that “How well you retire depends on how well you plan today!” Retirement brings enough time for a person white at the same time there is a sharp decrease in his income level! And with passing days when inflation is moving northwards, it is but a foolish decision not to plan your retirement!

Continue reading ‘Before You Plan Your Retirement!’ »

Your pension is probably the most important asset you have, hopefully enabling you to enjoy your retirement in the comfort and security that you enjoyed during your working life. The way a pension works is simple, the contributions you make during your working lifetime along with any employer contributions are invested in one or more of a range of professionally managed funds. Any UK resident under the age of 75 is eligible to receive income tax relief at their highest marginal rate on annual contributions to private and occupational pension schemes, up to 100% of UK earning with an annual allowance limit of £255,000 for 2010/11. Because of the favourable tax advantages, pensions have traditionally been seen as an ideal means of providing income in retirement, however, for millions of savers, their retirement plans have been ruined by years of poorly performing pension funds. With the current single state pension in 2010/11 being a maximum of £97.65 and some people receiving less than this, it is important that you are aware of the kind of income you can expect in retirement. According to the annuity specialist Partnership, between 2004 and 2009, 9 out of 10 people who retired had amassed a pension pot of less than £50,000 while 77% of people had less than £30,000, the group saying that a £30,000 annuity in today’s rates would provide an income of just £2000 a year. Continue reading ‘Why you should review your pension before it’s too late’ »

By: Jason Whitby, MBA, CFA, CFP, AIFA

A recent study suggests that adding an immediate annuity to a blend of stocks and bonds, you can increase the chance of “making your money last” from 77% to 100%! This study concludes that by placing half of your million dollar nest egg in the annuity, you can be absolutely guaranteed of having $40,000 a year adjusted for inflation for 30 years. But, there IS a hook; the average inflation rate over the next thirty years MUST be 2.5% or less!

The study successfully demonstrates the relationship between market risk and longevity risk. Unfortunately, the study barely mentions how market risk and longevity risk need to be further balanced against inflation risk, or more specifically, that your retirement portfolio should be designed to withstand shocks from the market and from inflation. As recently demonstrated, the market doesn’t produce average returns; it produces a wide range of returns that gives you an average. The same is true for inflation. Additionally, inflation has a universal impact on all of us while we have no control over it.

Continue reading ‘Now you see it! Now you don’t! The Illusion of Immediate Annuities’ »

It’s that time of the year again, when everyone vows to be healthier, lose weight, read more books, and spend more time with their loved ones. But what about our financial health? Anyone who has opened a newspaper or turned on the television over the past year has heard how many Americans are struggling with mortgages they can’t afford, too much debt, and unemployment.

So with all of that going on what will you do differently in 2010 to make sure you are in better shape financially at the end of the year?

Start with Realistic Resolutions

Running a marathon may sound good, but it is not a realistic goal for someone who is overweight and hasn’t worked out in years. Deciding to start walking each day is a much more realistic goal that will result in lasting improvements. Your financial resolutions should be made in the same way; realistic changes you can implement that will lead to better habits for the rest of your life. Continue reading ‘Financial New Years’ Resolutions For 2010’ »

I’m by no means a certified financial planner, nor had I acquired any form of paper qualification in this field. Something just came pop up in my mind, and we just had this discussion on this topic, and I though it might do some good to those that are interested. This is just the tip of the ice berg on the topic, but that’s what I know, and would just like to share with the rest.

So here it is. Enjoy ^_^

Everyone should have a retirement financial plan. For those that haven’t in their wildest dream ever though of it, it’s still not to late to start now.

A retirement plan is a plan that plans for when the time comes, and when you are no longer working, how much is the amount that you need to survive. Some named it differently -achieving financial freedom- which actually means the same thing as, maintaining the current lifestyle without having to worry about work. Continue reading ‘Retirement Planning’ »

The truth of the matter is most of us will never truly be able to retire.  Oh, we may leave our current job or vocation, but in this new global economy, true retirement the way your parents retired is just a fantasy for most of us.  The average American will need to continue to work well into their reclining years.

As an investment advisor, I know first hand how hard it is to tell a client what they don’t want to hear.  If it’s any consolation, this news didn’t start out as a lie.  It has just become very hard to perpetuate in the current time period of which we live and work. Continue reading ‘Five Reasons Your Retirement May Be A Fantasy’ »