According to Madison Street Capitol, the biggest blunder most people make about their retirement is a lack of pre-planning. Nearly one-third of baby boomers, past the age of 55, have saved less than $10,000 for retirement, and a mere 20 percent have only amassed $250,000. Studies indicate retirees will need much more than $1 million in their investment accounts, but most are inadequately prepared.
The crucial question here is what is that magic number you can spend each month, from your retirement savings, without running out of money?
Madison Street Capital says, even those retirees who’ve missed the target for their retirement goals still have a small window of hope.
Here are three ways to play catch-up;
1. Catch-up Contributions
Late-savers may need a boost to come closer to their retirement goals. Catch-up contributions can help you gain an advantage. The 50 and over crowd can contribute thousands in additional funds to a 401(k) plan compared to the younger generation.
2. Learn to Live With Less
Consider selling your home and investing the profits. Downsizing to a smaller, yet more affordable residence can slash thousands of dollars in taxes, utility costs and insurance. That’s extra money for retirement savings.
3. Annuities Can Shrink The Odds of becoming Destitute
Annuities are confusing and not surprising since there are so many variations of them. Yet, this form of insurance can be especially helpful for people retiring without a pension. The most popular annuity is the immediate fixed variety that guarantees you a check that never changes.
Regardless of when you’re retiring, developing a long-term plan will help you establish goals, and the strategies required to accomplish them.
Where to Begin
By the time you start considering retirement, the majority of your financial obligations should be behind you, unfortunately, a great deal of baby boomers remain riddled with debt. Investment advisers at Madison Street Capitol say you should always begin with an inventory of your portfolio to know where you stand. Reviewing your assets and liabilities will help you develop a comprehensive plan towards retirement. It’s never as difficult as you think, and you can start at any time. Establish a retirement strategy early and you’ll enjoy those golden years a lot more.
Christian Broda is a native of Argentina and received his B.A. from the Universidad de San Andres, where he graduated in January 1977 Summa Cum Laude. From there, Broda attended the Massachusetts Institute of Technology receiving both his masters and Ph.D in ecomonics. He has worked in both academia (he was a professor of economics at the University of Chicago), and in private industry. Broda also has written and edited extensively in prestigious journals such as American Economic Review and the Quarterly Journal of Economics. Recently he served as the Managing Director of Duquesne Capital Management, a hedge fund with over $12 billion in managed assets upon its closing in 2010.
Broda has used his impressive credentials to remain bullish on the continued primacy of the US dollar. While some economists believe that the dollar will lose its value as more emerging markets gain momentum, Broda thinks the dollar will stand strong. He also opposes the creation of a global currency as a way to even out the fluctuations and disparities in the global markets. Many have proposed a basket of currencies to replace the dollar as the standard currency that includes the dollar, pound sterling, yen, and the euro.
Citing the economic collapses of the past, many placing a good majority of the blame on the dollar and US economic policies, many see the dollar’s days as numbered. Broda is quick to point out, that after each collapse, the dollar has come back stronger and more entrenched as the currency of choice.
Broda believes that as central banks start quantitative easing (QE) more investors should convert to dollars. QE is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Critics of QE say that its effectiveness is questionable as interest rates approach zero as they have in recent years. Commercial banks are the primary target of QE and could instead of lending more money as is the objective, keep the additional money in reserves. Also, since the money supply increases with no change or a lag in the supply of durable goods, then prices could inflate based on supply and demand. Again, Broda suggests that because of these issues, the dollar is the safest currency to hold as these policies work themselves through the economies of the countries employing QE.
Purina recently announced a new ad campaign for Beneful brand dog food on PR Newswire. The people who make this wonderful brand of dog food tell us just why they happily feed it to their own dogs.
Beneful employees only have good things to day about this brand of dog food and are confident that you will love it for your beloved pet as much as they love it for their own.
This campaign has not only a television commercial, but also features digital and print ads that show the Atlanta team with their furry friends. The ad even debuted in the New York Times with a full page in the Sunday edition of the paper.
The lawsuit was based around false information stating that Beneful was having a recall on the popular dog food, but the truth of the matter is that about half a billion Beneful meals have been fed to roughly fifteen million happy, healthy dogs in the year 2014. That says a lot about this amazing brand of dog food! Buy a bag for your dog today!