There’s more to retirement planning than just funding your 401(k) or IRA. One of the chief reasons why people engage a financial planner is to know if, and when, they can retire. Just the thought of retirement can cause anxiety and many feel overwhelmed and unprepared. Listed below are some retirement planning mistakes that one should avoid. Not having a plan According to a survey, currently close to 48% of the working American population hasn’t calculated the amount of money they need to save for retirement. The truth is once you have a goal, actions to achieve the goal materialize. It isn’t just enough to fund your 401k and leave the rest one needs to have calculated retirement goals, have a step-by-step action plan and indulge in a bit of personal finance planning for their own sake. Calculating figures wrong One needs to have a ballpark figure as to how much they’ll need in retirement. Higher assumptions make the goal appear unattainable, lower assumptions could lead to a difficult financial situation later. The general thumb rule is that one needs at least 80% of their current annual income in retirement bear in mind that in the first few years of retirement one will spend more on lifestyle (travel, entertainment, eating out) while in the later years, health costs will escalate.

Getting the right retirement calculator will help solve many future issues related to income and planning. There are a number of things such as health care, house, day-to-day living, which requires substantial amount of money to sustain one’s living during the old age. If you have calculated your retirement income well, then you are sure to get many things in place and enjoy a fulfilled retirement life. This is the reason why retirement calculators are so important. Apart from knowing the importance of these retirement calculators, it is equally vital to find the best retirement calculators. With a number of options both online and off-line, it is always best to compare various choices and pick the best retirement calculator that suits your retirement needs. Different criteria for choosing a retirement calculator Price of the calculator should not be that big a problem as there are many online calculators that are available for free. If you already know of a platform for calculating the retirement income, then you should decide on how much time do you want to invest in getting the results. If you’re looking to get simple answer such as whether you’re on right track or not, then you should opt for low fidelity retirement calculators.

One of the best investment moves you can make is to open a Roth IRA account when you are planning your retirement. It is a legal tax shelter and you will contribute money that has already been taxed. Hence, you will not be taxed again when you withdraw the amount. The interest earned on it is tax-free as well. You only need to keep the money in the account for a certain period of time and upon your retirement, you can withdraw the money, which goes straight to your pocket without any deductions. Top Roth IRA funds for 2018 It is easy to open an account and invest in the IRA fund. Choosing the fund can be a little difficult. However, there are a number of options that will help you maximize your wealth. Vanguard High Dividend Yield This fund generates high income and keeps an eye on the index of stocks that have an above-average dividend yield. It is top heavy, which means the biggest stocks make up a significant percentage of its assets and its top holdings including large stock companies. It is a high dividend yield fund, which means before you retire, the dividends will assist your investment compound quickly and you will be able to take complete advantage of the tax benefit of the IRA.

Retirement plans may be going the way of the dinosaur but the younger generation of today should be aware of the fact that saving more for retirement is the wisest thing to do. Listed below are the simplest, no-nonsense and easy-to-understand retirement savings plans and accounts that one can choose: 403(b)/401(k) offered by employer: This is the best and easiest way for you to begin investing for retirement. Employee contributions go through payroll deduction, and employers match employee contributions. If you decide to quit your job, make sure that you roll over the account into the 401(k) plan of your new company or into your own IRA. A 403(b) is an option for employees of non-profits, teachers, etc. Solo 401(k): For sole proprietors, the best thing to do is to set up an individual 401(k) account and make contributions as both the employer and employee up to $54,000($60,000 for individuals above the age of 60 years). SEP (Simplified Employee Pension) IRA: This SEP IRA is usually used and employed by proprietors and owners of small-sized businesses or those who are self-employed such as freelancers. Employers can contribute either $54,000 or an amount which is up to 25% percent of their income, in 2017, whichever amount is lesser.

Retirement planning becomes a little more complicated when you are a married couple as there will be double the financial considerations to be made and your values and priorities may diverge at a period of time in the future and all of these can affect your retirement plan. It is very important that you identify a retirement calculator that enables you to account for each of you as individual beings. Some questions that you may have in mind: A good retirement calculator should allow you to input information of you and your partner separately. Topics like age, birth date, current income, and gender provides an estimate of the lifespan of the individual and helps to calculate the retirement income. How a retirement calculator actually helps? A retirement calculator can in fact help you to have a important talk about your investments in a systematized and undemonstrative way. The good calculators will ask you essential questions and escort you through the process. Some retirement calculators allow you to save your data so that you can easily log in and look over the results and then improvise your plan by editing. A goal must be set! Before planning, it is important for you to have a goal in mind.

“ Invest in your future” as they rightfully say. Saving for retirement is one of the major concerns in your career. In today’s economy and time of uncertainty, with sky-high prices for even basic necessities, by the time you end up paying all your dues, there will be very little left to retire with. Thus it is imperative to earn and reinvest your earnings after you have met all your obligations to make sure that safety nest egg is ready for you to cash in when you retire. Here are some of the poplar re-investment opportunities you can follow as part of your retirement investing strategies: Plan your retirement portfolio: A comprehensive 401K will ensure multiple avenues for investment. However, it is a good idea to construct a total portfolio of stocks and bonds. Granted there is no certainty in the stock market that you will get a good return on your investment. But with time and experience, you will gain the expertise provided you start early and are willing to take a few risks for better returns. Investment in retirement income funds: Investing in retirement income funds can be profitable as part of your retirement investing strategies. Mutual finds especially are a good option since a diversified portfolio of stocks and bonds are created and managed by the financial institution on your behalf to provide a steady stream of income that will come in handy for retirement.

Retirement is indeed a very big art of anyone’s life. But have you chosen your retirement destination yet? For most people, retirement means living with a reduced amount of income. Here are some of the best places to retire in the U.S. They have a good weather and a lot of activities that will never leave you bored. Prescott, Arizona If you are a nature loving person then Prescott, Arizona is the best place to retire. Prescott is a famous historic city that boasts of adventure and culture. If you are a golfer, then you must be excited to see its six pristine courses. And if you want some adventure in your last age, then Prescott is perfect for you with its secluded picnic spots and lakes. Prescott has always been the hidden gem in retirement communities. Palm Springs, California Palm Springs gets over 300 days of sunshine every year. In summer, the temperatures are around 100 degrees during the day and 80 degrees at night, while in winters 70-80 degrees is the usual temperature during the day, and at night it is around 40 degrees. Retirees will enjoy their time visiting the Living Desert Zoo and Gardens, the Moorten Botanical Garden, which is famous for its ancient fossils and gold-mine relics, the Palm Springs Art Museum, Tramway Gas Station, which is full of modern architecture and the Cabazon Dinosaurs museum.

Aging might not always push you to mundane existence. Retirement communities, which have become a trend, can shift the perception. They come in all shapes and sizes and are restricted to an age group of 50 and above to provide suitable amenities. Yes, at that age, one might not have full motor functions or might suffer from chronic conditions like diabetes, but the communities are equipped to provide all the help required for wellness to overcome the challenges easily and live a fuller active life. Gone are the days when it considered cruel to not take care of an aged parent. With fast-paced lives of the present generation, the parents themselves would rather prefer living in a retirement community with all the right facilities. It’s time they too relax and have some fun as well, by staying close to like-minded people of their age group. Such niche communities are increasingly popular, catering to seniors based on ethnicity, sexual orientation or even hobbies, apart from the regular retirement facilities based only on age as a factor. Understand the pros and cons The most important benefit of choosing a retirement community, especially a Continuing Care Retirement Community, is that you will be able to continue living in the same community even as you grow older.

It becomes increasingly difficult for seniors to step out of the house and follow their regular schedule as they grow older. As a result, they probably have to give up some, if not all, of the social activities that they enjoy on a regular basis. This experience can lead to isolation, especially if they live alone. The solution for this issue can be independent or assisted senior living communities. These communities help seniors by providing them with opportunities they require for leading an active lifestyle and developing healthy social interactions. Here are some ways in which senior living communities can help residents maintain an active social life: Sharing meals While it may not seem like much, the simple act of sharing meals with someone can prove to be helpful in establishing healthy social interaction. It is for this reason that senior living communities prioritize communal dining rooms. These dining rooms are one of the easiest ways of meeting and interacting with new neighbors. Residents spend at least one part of their day in the company of others.  Participating in activities Senior living communities employ dedicated staff to organize and manage activities to help seniors stay active. These activities can involve off-campus trips to museums or interactive activities within the community.

Retirement can be a costly proposition, so if you’re looking to choose states to retire in, it could be a long and exhausting research process. This is because all the elderly individuals want to spend their golden years peacefully with family and friends. Before finalizing the state that you would like to settle in, here are some of the important factors that you should consider. Cost of living For most retirees, cost of living is an important aspect post retirement. This is because majority of them will be living on a fixed monthly income. This automatically translates to a limited spending capacity. Whichever state you pick to settle in, should have flexible laws in terms of tax and a reasonable pricing system for housing and retail businesses. Healthcare system An organized healthcare system is very crucial for you because as a retiree as you are more susceptible to medical problems. Make sure that your chosen state has convenient as well as people friendly healthcare laws and institutions. Crime statistics Older individuals often feel anxious about moving to new place, especially if they are going to be living alone. Ensure that you are moving to a city that has top-notch safety services and a friendly local community.

Like you, several other retirees work extremely hard to earn a decent amount of money. And they have only one aim, to have a reservoir of finances that will help them lead an independent life even after retirement. You might often mull over the thought, “How do I make sure my savings last as long as I do?” For this you need to have a retirement plan to generate revenue, that can last for the rest of your life irrespective of the income that can withstand inflation, market ups and downs, and unexpected expenses. There is no one income strategy that is applicable for you, as your situation and requirements will be distinctive at different stages of life. Firstly, you will need to understand the varied aspects of retirement expenses, so that you can accordingly plan your income investment strategies. The following are some investment strategies that can help you comfortably plan for life post retirement. Regular income for your day to day expenses When you begin with the planning for retirement, you will want to make sure that your day-to-day expenses such as obstinate costs (housing, food, utilities, and health care) are covered by guaranteed sources. The major sources of this assured income are pensions and annuities, so make sure that you have invested in these to enjoy the benefits after retiring.