by William Bond

Created on: February 09, 2009   Last Updated: February 23, 2010

By taking the time and effort for assessing your retirement needs, is crucial  to build a retirement fund which will support you during the retirement years.  Ideally, this is something your have done during your work life, and made the needed changes, to help you get to point in your retirement planning to reach your goal.  During the past 2-3 years, many  workers  found their 40l(k)  plans lost  too many hard earned dollars.

Review your monthly budget.

* Count up your monthy living expenses. This means cable bills, all utilities, rent, mortgage payments, cost of heating and cooling, insurance, car expenses, mortgage payment,  credit card payments, insurance bills,  tax bills, food, water bills, and any other bills which you pay monthly.  Can you cut any of the expenses, or cut them completely?  Do you need all three of your cars?  Can you sell one of them?  Let's sum up your total budget items.

Total monthly budget  numbers. 

*You cut all budget items you could, the most important cuts possible. Your mortgage will be fully paid.  Let's say you work hard, to assess the  grand total for monthly expenses which will still be needed  to be paid, once you retire, and you find it to be, $3,000 monthly. Now let's review your retirement income. 

 Gather Retirement  Income for your retirement.

*Make certain that you check your  retirement income from each company you worked for since your first job.  Examine your 40l(k) plans from the l0-l2 employers you have worked for during all your working  years, also review all the IRA(Individual Retirement Account) roll overs, from you past 40l(k) accounts. Call or email each one to see if they have any money in your account for your work .   Add up the total value of all of your retirement accounts. Once you did this, you got a total figure of  $500,000.

 Using this $500,000 retirement income, by using  certificates of deposits at a regional bank, you can expect to get 5% return which will be a safe, and secure $25,000 a year, you can get your Social Security check, at age 62, 67, or 70.  Now if you decide to collect your Social Security at 62, you will lose 25% of your benefits by taking it early, but by waiting for  67 you get a full retirement age benefits, and at age 70 you will get the maximum SSI  payment. Check your yearly Social Security statement offering your benefits for each age. Now let's sum up.

Add your Income and deduct your Expenses.

Your monthly budget shows a balance of $3,000 a month, and your retirement income from you 40l(k) plans, and  other plans  is 500,000, and Social Security is $l,500 a month or ($l,500Xl2months)=$l8,000.  So, your total income including Social Security is $518,000($500,000+l8,000=$518,000).  You will have $2,083.33  monthly  from  your Certificates of Deposits, plus $l.800 from Social Security, a total monthly income of $3,883.33.  You  might even consider working part time in your job specialty, or work as a consultant at your last company, and this fully assess your retirement fully.   You can do it.  You deserve it.  Go for It! 

    

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