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Columns : Investing in You - Glenn S. Ferguson Last Updated: Feb 6, 2017 - 2:32:04 PM

Retirement Secrets That No One is Telling You About Your Retirement.
By Glenn S. Ferguson
Mar 16, 2010 - 8:01:52 AM

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I am understanding now what is meant by the expression “time sneaks up on you like a bug on windscreen.”  You see I am used to seeing the grey in others and while you know it will happen, you never expect it to happen to you.

Well to my surprise it is happening to me and at first would you believe that I was shock!  Really I was shock to see the grey that appeared in my beard and try desperately for it not to show by shaving even my mouth-stash. But little that I realized - that was just not going to work. So I have decided to get use to it and accept that I am aging- gracefully hahaha!

Another thing that sneaks up on you is retirement and while you are racing toward the inevitable and not thinking about retirement planning here are a few little secrets about retirement that no one is telling you.

No, they don't mean to keep it a secret the fact is most persons don't really know.  So here is what you should know about retirement that no one is telling- Retirement Ain't What it Used To Be!

Historically, retirement planning was based on a three-legged stool model approach.  So our parents had the expectation and could comfortably retire with a company pension, Social Security benefits and their individual investments.

But that retirement model has changed and you can no longer rely on a company pension. And if there is a company pension plan the risk and cost have in most cases shifted to you.  Not only can you not rely on a company's pension plan but your anticipated National Insurance benefit is now in doubt as current funding method is being forecast to drain the available resources by 2029.

All of this uncertainty means that you will have to take responsibility for your own retirement and you must move quickly because time is running out - So you have got to start planning your retirement now!

While money is not the only consideration, the sooner you begin regular contributions to your retirement money, the more manageable it will be to fund it with a portion of your income.

Consider the following age guidelines and contribution rates:

Starting at age 25— invest 10-15% of your income until retirement.
Starting at age 35— the contribution rate needs to be 15-20% of income until retirement.
Starting at age 50— requires approximately 50% of income contributed to an investment plan in order to maintain a desirable standard of living.

So what should you do?
  1. Start Learning About Aging.  My granny always said “Once a man and twice a child” and that is a fact so start learning as much as you can about aging and the effects it will have on you.
  2. Join Your Company's Pension Plan. If there is a plan at work join it as soon as possible. Your savings dollars should first go to your company's pension plan up to the company match, if there is one. Most employers provide some level of match, based on the employee’s contribution amount.
  3. Get an Individual Retirement Account (IRA). After funding your company plan up to the company matching contribution, then consider adding addition voluntary contribution to the plan based on your age or start an IRA. Your decision will be based on which plan is providing the better rate of returns.
  4. Start Investing. No not in "playing the numbers." Get information real on investments and invest. You may want to consider government treasury bills, mutual funds and certificates of deposit or even real estate but not "numbers."
  5. Plan Your Retirement. There are five benefits that work provides that you must ensure continues in retirement and this can only be achieved through planning.
  6. Get Help.  You will do one of three things with what I have just shared with you. You will either do nothing and hope for the best; try to do the planning yourself and hope for the best or you can get professional and get the best results. Just as you would not leave your health to chance you should not leave your retirement to chance either. So get some help. “Strategies for Achieving a Comfortable Retirement - Yours” is a useful resource to get you started.
Here are a few more secrets that they are not telling you – if Bahamians continue to plan for retirement at their current rate:
  1. 95% of Bahamians will retire not being able to afford their retirement after working for at least 40 years.
  2. 67% will have to continue working
  3. An increasing numbers of retirees are now dependent on their families, government of charity for support.
Now that you know the retirement secrets, use them in your retirement planning to your advantage and improve the quality of your not only for retirement but now!

And you can use this Free Report to Rescue Your Retirement  or if you you have a question about retirement issues you are facing - any question at all.  Just Ask Glenn!

Copyright © 2009 - 2010 - Glenn S. Ferguson

Glenn Ferguson is a Speaker, Coach and Syndicated Writer, helping you to painlessly take control of your money to create wealth for you and your family. Email to: glenn@financialcoachingwithglenn.com  Web site: www.financialcoachingwithglenn.com Tel: 242-327-2453   Fax: 242-327-2456

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