"How to Plan for Retirement". A simple guide to help
you retire with peace of mind.
PST: Hello, its me, Professor KnowItAll... and yes, I'll be giving you the very best
tips so you can retire with peace of mind...EXP: Hello Professor, are
you now an expert on that topic?PST: Of course...EXP: Oh, OK,
so you're all ready for retirement?PST: Of course! I'm ready!
EXP: So then, you have money saved?PST: Well, not exactly but
I have a plan... I will live with my kids...EXP: Living with your family during
retirement can be very gratifying, but surely you don't want to be a burden on them...
Did you know that people in the United States, on average, live 20
years after they retire?In general, people need almost 80%
of what they earn in order to live comfortably after retiring.
That's a lot of money, so you'll definitely need a good plan in order
to get there. OK, don't panic yet. It's never too late to start
or even too early. Let me tell you what you should do so that the
next time, you can give people good advice. PST: Sounds good.
EXP: Professor, according to the Consumer Action Handbook, the first thing is recognizing
the importance of saving for retirement.The three most common options
are: One: Pension benefits, offered by some places
of employment.Two: Savings and investments, started by you.
Three: Social Security, which is the Federal Governments
retirement plan. Now, if you're still working, find out if your place of
employment offers a pension plan and how it works. Some companies also offer
a 401k plan. PST: Four 01 what? I've never heard of that
truck, but mine is newer... EXP: I'm not talking about vehicles here, I'm
talking about retirement plans in which, if you save, your company will match a
percentage of the contributions you make. PST: Oh, that's like free money.
EXP: Exactly. Sometimes you impress me, Professor!In order to plan well
for retirement, you must consider what types of expenses you'll have, whether you'll
work or not, if you'll have additional medical insurance, or if you'll have costly
hobbies, like traveling. There are many things to consider, so you may want
to consult a financial expert for help.PST: Yikes, I'm feeling dizzy...
EXP: Professor, you can also ask for help and get tips from the
following organizations: AARP
American Savings Education Council
Department of Labor Securities and Exchange Commission
Social Security Administration PST: Ufff...I'm feeling a little
better now. EXP: Professor, this is all about saving not spending...
Better yet, let me remind you to visit USA.gov or in Spanish at
GobiernoUSA.gov where you can learn more about all of this and
other interesting topics for consumers. And remember, you can also order
your free "Consumer Action Handbook "...