RETIREMENT Essay -- essays research papers

Retirement, Are You Saving Enough?As and investor, you argon overwhelmed with advice in newspapers, magazines, and mailings discussing what to invest in for a successful hideaway approach egg, when to start saving for retirement and who to invest with. There ar millions of people who realize that an enthronization portfolio for retirement is necessary, but do they really understand the investing instruments and the amount they essential invest for tomorrow? The defer of retirement is a fascinating field of operation but it also could be a fuzzy subject without the correct amount of k instantlyledge, understanding and professional guidance. The number unrivalled question of concern for souls face retirement issues is whether or not they have enough annual income to retire. In 2001, only 63% of workers said they felt confident they would have enough currency to live comfortably in retirementjust one year later(prenominal), that figure was 72%. (www.smartmoney.com) With t he baby boomer generation nearing retirement in the up coming years there are numerous questions that necessity to be answered before they can flat out retire. Have they been saving enough for their retirement or will they fall short in the later years of their lives?The average baby boomer must realize that they will have more time to enjoy the abundance they are accustomed to and they will need the income to do so. According to the Society of Actuaries, baby boomers can expect to live wellspring into their 80,s and many will live well into there cs and beyond. That means someone who quits working at 65 may be looking at spending 35 years in retirement. (www.aol.sageonline.com) The worst news about the increase in life expectancy is that people are not saving enough to maintain their high standards of liveness and they must adjust accordingly. So what are these people supposed to do?First, people must save as much money immediately and let go of the old notion of retirement. T he basic fact is that Social Security currently makes up about 40% of a retirees income, it is now up to the individual investor to gene footstep the remaining 60% in order to maintain the standard of living they are accustomed to. (Prosser 12) Some of the old rules of saving for retirement alleviate apply, Michael McDonald, vice president of a national brokerage firm says the 60 t... ...ill accumulate interest. devising appropriates are non-report adequate to(p) income and wont change your adjusted blunt income which otherwise could put you into a higher tax bracket an affect other withdraws from accounts. This leaves the Roth ire more flexible because there will be no minimum distribution requirements, so you take out what you need and let the rest grow. afterward age 59.5, even before retirement, you will be able to make withdraws before retirement if the account has been open for at least 5 years. However, the withdraw must fit the requirements of a qualified withdraw. In order for a withdraw to be considered qualified it must be as a result of a medical emergency, loss of working ability, squeeze retirement, etc The Roth IRA seems like it has no disadvantages but there are drawbacks of a Roth IRA to a traditional IRA. One disadvantage with the taxes is that you are paying taxes now while you are likely to be in a higher tax rate then you would be when you were in retirements. The Roth IRA doesnt hold out tax deductibility leaving people to pay more taxes now. Other than these drawbacks there really isnt any other reason not to invest in a Roth IRA compared to a traditional IRA RETIREMENT Essay -- essays research papers Retirement, Are You Saving Enough?As and investor, you are overwhelmed with advice in newspapers, magazines, and mailings discussing what to invest in for a successful retirement nest egg, when to start saving for retirement and who to invest with. There are millions of people who realize that an investment portfoli o for retirement is necessary, but do they really understand the investment instruments and the amount they must invest for tomorrow? The subject of retirement is a fascinating area but it also could be a fuzzy subject without the correct amount of knowledge, understanding and professional guidance. The number one question of concern for individuals facing retirement issues is whether or not they have enough annual income to retire. In 2001, only 63% of workers said they felt confident they would have enough money to live comfortably in retirementjust one year later, that figure was 72%. (www.smartmoney.com) With the baby boomer generation nearing retirement in the up coming years there are numerous questions that need to be answered before they can flat out retire. Have they been saving enough for their retirement or will they fall short in the later years of their lives?The average baby boomer must realize that they will have more time to enjoy the abundance they are accustomed to and they will need the income to do so. According to the Society of Actuaries, baby boomers can expect to live well into their 80,s and many will live well into there 100s and beyond. That means someone who quits working at 65 may be looking at spending 35 years in retirement. (www.aol.sageonline.com) The worst news about the increase in life expectancy is that people are not saving enough to maintain their high standards of living and they must adjust accordingly. So what are these people supposed to do?First, people must save as much money immediately and let go of the old notion of retirement. The basic fact is that Social Security currently makes up about 40% of a retirees income, it is now up to the individual investor to generate the remaining 60% in order to maintain the standard of living they are accustomed to. (Prosser 12) Some of the old rules of saving for retirement still apply, Michael McDonald, vice president of a national brokerage firm says the 60 t... ...ill accu mulate interest. Making withdraws are non-reportable income and wont change your adjusted gross income which otherwise could put you into a higher tax bracket an affect other withdraws from accounts. This leaves the Roth IRA more flexible because there will be no minimum distribution requirements, so you take out what you need and let the rest grow. After age 59.5, even before retirement, you will be able to make withdraws before retirement if the account has been open for at least 5 years. However, the withdraw must fit the requirements of a qualified withdraw. In order for a withdraw to be considered qualified it must be as a result of a medical emergency, loss of working ability, forced retirement, etc The Roth IRA seems like it has no disadvantages but there are drawbacks of a Roth IRA to a traditional IRA. One disadvantage with the taxes is that you are paying taxes now while you are likely to be in a higher tax rate then you would be when you were in retirements. The Roth IRA doesnt offer tax deductibility leaving people to pay more taxes now. Other than these drawbacks there really isnt any other reason not to invest in a Roth IRA compared to a traditional IRA