Every body dreams to maintain their current living style, plus be able to travel all over the world after they retired. Unfortunately, with the government's persistent cutbacks in its delivery of social services, threatening the fabric of the retirement pension system. people between ages 50-55 whose savings represent the last major money pool available to the cash-hungry government highlights this ominous threat. Also the government current unfunded liability of over trillion of dollars, the US Social Security may be bankrupt by 2030. Therefore,learning actively and applying the components of financial planning and investment strategies - their “wealth accumulation” and successful retirement desires depend upon them.
Out of 7 persons over age 50 have not begun to seriously save for retirement.Only 8% of those over 50 have used a financial planner's expertise for a written retirement plan. That mean over 60 % of the American possess little or no knowledge of financial planning and investment options. Only a few citizens understand the powerful and dynamic difference between savings and investing used in the financial retirement-planning process.
Also today people are living much longer, the average life expectancy for men will be 83 and 87 for women - with about two years added every decade in the future and people are retiring earlier than usually in their mid 50s and only about 35% of company pensions are indexed to inflation. The erosion of your retirement income will result a drop in your standard of living.
Time has changed not only the psychology of the investment market but also the manner in which we plan, organize, and implement our investment strategies because traditional investment of term deposit no longer providing the kind of return that our grandfather enjoyed. Interest rates will remain low for a while more this means that you can't buy interest-bearing securities and sit back to watch your wealth accumulate.
In due to the urgency of this subject, we hope this article will provide basic understanding of retirement planing so people can maximize their contribution into K-401 plan as well as actively involve for their retirement in the investment options available, for employees to both consolidate and build upon their wealth accumulation for their retirement years and achieve their individual retirement lifestyle goals through effective money management.
Today's capital markets offer many spectacular opportunities for "wealth accumulation." For instance, mutual funds offer excellent opportunities to a wider investing public. And remember, tax-free accumulations of gains, as within a K401 or Universal Life plan, compound faster than taxed gains.I hope this information will help. If you need more information please visit my home page at:
http://medicaladvisorjournals/financialplaning.blogspot.com
