Essay Sample about Retirement
The average age of retirement is 62 years old (Lorie Konish). Most people don’t know the hoops retirement requires you to hop through. Retiring is something that will happen to everyone in life. Knowing how to retire is crucial information everyone should have.
Knowing when and how to retire is an important thing to everyone in life. A hard financial decision when to stop working to not run out of money but still have enough life to be happy and healthy(Liz Weston). You want to feel confident that you have enough money to do the things you want in life and not to be strained financially. Also, want to feel that you will survive and not have to work the rest of your life (Liz Weston). If you work the rest of your life because you are worried about retirement, you need to understand that at some point you will work too much and it would have been a waste.
The safest option of knowing how and when to retire is going to a financial advisor. If you need help preparing for retirement, a financial advisor is a trustworthy professional to help you along the way. It's preferred to go to a “fee-only” advisor because these people only charge for their advice, not products to “help with your money” (Jane Bryant, Temma Ehrenfeld). Choosing a financial advisor is a major choice in how you are living for the rest of your life. A consultant will make sure you can survive your withdrawal rate. You have to be able to survive your withdrawal rate. If you do not plan, you will not have the lifestyle you want(Julia Keagan). They will make sure you invest early enough to survive your way of living. “The longer the time from today to retirement, the higher the level of risk that your portfolio can withstand.”(Julia Keagen).
Some people don’t know if they should keep their mortgage or not during retirement. “Theoretically, you can get a better return investing your money than paying off a mortgage. In reality, your biggest asset in retirement could be a paid-off, appropriately remodeled home that allows you to age in place, says financial literacy expert Lewis Mandell, emeritus professor of finance at the State University of New York, Buffalo.”(Liz Weston). Investing your money correctly is a more financially sound act than paying off a mortgage before retirement. In some situations not having a mortgage is more beneficial to the individual. “Not having a mortgage allows you to withdraw less from your retirement accounts, which could make them last longer, and your equity could be a source of income later through a reverse mortgage, says Mandell, 73, who wrote his latest book, "What to Do When I Get Stupid,"(Liz Weston). If the situation is there not having a mortgage could make your retirement accounts more useful.
Retirement has lots of surprises down the road people don’t always account for. One of the retirement’s surprises is taxes(Julia Keagan). Once you start using the money in the account a bill for the money you have saved. Other things people don’t think about when planning retirement is the rising cost of gasoline, health insurance, and car insurance cause retirees to get a part-time job to cover the cost (Jane Bryant, Temma Ehrenfeld). This is because people don’t think about how they don’t have an annual paycheck. When you start to prepare for retirement you need to know that prices are constantly changing and health insurance will only rise as you get older. Inflation is another surprise you don’t always think about with retirement. This can use your money very quickly and you will not be prepared. “Additionally, you need returns that outpace inflation so you can maintain your purchasing power during retirement. “Inflation is like an acorn. It starts small, but given enough time, can turn into a mighty oak tree,” says Chris Hammond, a Savannah, Tenn., financial advisor”(Julia Kagan). The biggest surprise will be your ability to cover other family members when you retire. “When looking at whether you can afford to retire, start with your sources of income: pension (if you're lucky), savings, spouse's income, part-time work. Figure on using no more than 4 percent of your total savings in your first retirement year. In each following year, add just enough to cover the inflation rate. Next, shape a budget that matches your expected income. If you spend more by dipping further into savings, you risk running out of money.”(Jane Bryant, Temma Ehrenfeld).
Some people retire because they are required to. “Others have retirement thrust upon them: they're fired, their health breaks down or they have to take care of an ailing spouse. Of those 60 to 65, a mere 33 percent still work at their primary jobs full time, according to the Employee Benefit Research Institute.”(Jane Bryant, Temma Ehrenfeld). People have retirement forced on them this is why it is smart to plan as soon as possible.
Knowing how to retire is crucial information everyone should have. Knowing what to do with your mortgage, surprises along the way, and what financial advisor to hire are many things people don’t know how to do. Learning this information is essential to having a happy life after retirement.
