HealthyLife Articles

Tag: goals

  • Retirement: How Are You Going To Do That?

    FINANCIAL HEALTH

    Image of middle-aged women.

    A secure and worry-free retirement is a cherished dream for millions of us. What will it take for you to achieve that dream? The experts say –

    Save more than you think.Most people have not tried to estimate how much money they will need for retirement. And those who have, usually underestimate the amount they need.

    Know when you will retire.Many working Americans will retire before they expect to, and before they’re ready.

    Plan to live a long life and spend accordingly.Some retirees will live well beyond their life expectancy, with a great risk of outliving their savings.

    Face facts about long-term care.Many people underestimate their chances of needing long-term care. Explore lower-cost plans now.

    Understand your options.Should you take a pension in a lump sum or as a lifetime annuity? Talk with a financial planner (and your doctor) to decide the best option for you.

    Understand your investments.Due to the growth of workplace retirement savings plans, employees are now managing investments for retirement. Need help? Get it from a trusted financial adviser.

    Seek sound advice.Many retirees and pre-retirees do not seek the help of a “qualified professional.” Yet they indicate a strong desire to work with one.

    Know where your retirement income is coming from.You may be disappointed in retirement if you try to live on the income that’s available.

    Deal with inflation.Inflation is a fact of life. After retirement, you won’t be getting pay increases.

    Provide for a surviving spouse.Many married couples fail to plan for the eventual death of one spouse before the other. This can have serious consequences, especially when the survivor is the wife.

    Source: Report from LIMRA International, the Society of Actuaries and Matthew Greenwald & Associates, with research sponsored by the Society of Actuaries Committee on Post-Retirement Needs and Risks

    © American Institute for Preventive Medicine

  • Save More, Spend Less

    FINANCIAL HEALTH

    Image of women at kitchen counter with groceries and placing money in a piggy bank.

    According to the American Psychological Association, finances are the number one cause of stress in America. Whether it’s meeting the monthly bills or trying to build a retirement fund, financial worries can be difficult to deal with.

    If you’re looking for ways to stretch your monthly budget, the Federal Trade Commission offers some tips that may help you save more and spend less without feeling the pinch.

    Start with a budget.

    This may not be fun, but it doesn’t have to be long and difficult. You can use something as simple as a two-column sheet of paper. In one column, write your net income for the month. In the other column, record all your expenses: basic monthly bills (mortgage, food, transportation), lifestyle choices (entertainment, eating out, personal care, pets), and other expenses. This will give you a clear idea of how much you need to save or cut back on spending. The FTC website offers a free budget worksheet atwww.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf.

    Consider direct deposits into savings accounts.

    Have part of your paycheck go directly into a 401 savings or other type of retirement account. Have additional money put into another savings account for an emergency fund and major expenses as needed.

    Pack lunches.

    A daily $6 spent on lunch adds up to $800 a year. Instead, make extra food for dinner and take leftovers or make your own sandwich. Or, purchase healthy frozen meals when they’re on sale.

    Use free community services.

    Most cities have well-stocked libraries that have books, magazines, music, games, and movies. You can check these items out for free.

    Know that every little bit helps.

    Make small, manageable goals to help you save. Even just $1,000 less on your credit card bill could save you hundreds of dollars in interest each year. Eating out one fewer time each week adds up to big savings in a few months. Rather than being discouraged by a goal that seems impossible, look for small, doable ways to save a few dollars here and there.

    © American Institute for Preventive Medicine