By Robert Thatcher
You just spent 30 years making reports, fielding phone calls,
filing papers, and pacifying your boss at the office. At the
end of each day, you find your energy gradually waning as you
reach that point wherein you wanted to declare the last part
your work — retirement.
Retirement is when an individual feels like withdrawing from
their occupation to find some time for their selves and
contemplate on how much he or she has earned or saved.
Everybody needs a time to stop working, reflect back upon the
past, and enjoy whatever life has to offer with the
individual’s retirement plan or pension staying close behind.
However, the problem of retirement using the typical pensions
plans like that of the Social Security; people should start
relying on their own savings than the usual way of planning
retirement. This is because the Social Security is gradually
losing more assets than it should be gaining in order to
adequately supply the much-needed funds of their members.
In fact, the agency asserts that they are paying more than
they collect and they fear that by the year 2010, 76 million
people are estimated to reach their retirement age. They
estimated that by that time, with all the assets being
at exceptional rate, they might only be paying 72% of the
expected retirement compensation of the members.
This goes to show that people should try to rely more on their
personal savings and other sources of their retirement plans.
This will bring about a more balanced view of all the aspects
as far as retirement is concerned.
So what are the alternatives to Social Security? Here is a
of the other retirement schemes that you can start planning by
now so that by the time you reach your retirement age, you
not solely rely upon your social security retirement benefits.
These are highly adaptable insurance contracts intended to
provide earnings and help you reach financial stability even
after you have reached your retirement age.
Saving money is just the beginning. You have to choose
that will provide you with greater money over the long period.
Try to look for the “lifestyle mutual fund,” which puts a
portion of your money in diversified stocks and the other
portion in bonds, and maintains a solid balance between the
Another good choice is the target retirement fund. Its
portfolio becomes more conservative as you approach retirement
3. 401 (k)
Your employer’s 401 (k) or 403 (b0 can be great sources of
retirement benefits. Here, the company will deduct a portion
your income and invest the amount on mutual funds, usually on
your chosen instrument.
4. Emergency account
Try to move your money automatically each month from your
checking account into an account earmarked for unexpected
expenses. Aim for a sum that will cover three month’s worth of
basics (mortgage, food, utilities, car payments, etc.)
Once you have built this nest egg, you would not have to
withdraw from long-term savings if a crisis hits.
There is no secret to building wealth after retirement. You
only need to live less than you make and invest the surplus
well. When you save money and invest automatically, your
retirement would definitely be the best phase in your life
where you enjoy relaxation with no financial obligations to
About The Author: Robert Thatcher is a freelance publisher
based in Cupertino, California. He publishes articles and
reports in various ezines and provides retirement resources on