What is retirement planning?

A simple definition is: The setting aside of enough money during one’s income earning years to provide an income during retirement.

Seems simple enough, doesn’t it?

In years gone by it was possible for the money set aside in this manner and supplemented by Government assistance such as the Canada Pension Plan and Old Age Security, to provide for a comfortable and dignified retirement lifestyle.

Canadians have a Registered Education Savings Plan (RESP) for their child’s higher education; however, I believe we also need a Retirement Education Savings Plan, for everyone else.

Neither age nor income level should prevent us from taking an active and proactive interest in our retirement planning.

We have been alerted to the possibility that those of us newly retired or soon to retire will not be able to count on the Government support that our parents did.

We are on our own!

If we are to achieve and maintain a financially secure retirement we must become knowledgeable, informed and involved in creating the income that will support our retirement financial needs.

Fortunately, technology has made it increasingly easy for anyone with the desire and initiative to get as much information as is needed to begin to take an active role in their own financial planning and welfare.

Because we are living such longer and more active lives many of us will need almost as much income as we needed before we retired.

Then too, health issues can place a bigger financial strain on our retirement income.

So, if we do not want to live a limiting and financially restricted lifestyle when we retire, we must take steps today that will ensure we have the financial means to enjoy a secure retirement.

So, how will you handle retirement?

Burying your head in the sand is not an effective plan. If you plan to retire, you can and should learn about the many effective and efficient financial strategies and vehicles that will ensure that your “golden” years really are “golden”.

There are those in the financial industry who present a doom and gloom attitude about what they perceive will be the lack of sufficient retirement funds for a majority of future retirees.

I do not agree with this outcome as a foregone conclusion.

Achieving your retirement financial goals means understanding what you have today and how to use it to effectively plan for and create the security you will need in the future!

So you have a job and you make money. Is it enough to cover all your expenses? Is it enough to put aside some money towards your retirement? What about those credit card debts, home mortgages, and travel expenses coming up? What about starting a family, paying for your children’s education? Have you already started planning for retirement? What steps have you taken? Perhaps you have consulted with retirement planning services and professionals or found some online sources for financial planning software and retirement planning tools.

Ok, so we have raised a number of questions and hopefully sparked some ideas and thoughts in your mind. Our last podcast introduced the topic of financial freedom and how the resources learned from our community can be shared with our listeners. The ultimate goal being that we can use this information to achieve financial success in our lives.

Well, here’s a little preview of our next several episodes about a Retirement Planning Guide, which will be sold in the future through leading book sellers like Amazon for $29.99. However, for a limited time, we are giving away this eBook as a FREE download along with a five part course which will be emailed to you. In addition, we know your time is valuable and as a service to our listners we have created this book as a audiobook which can also be downloaded for free by signing up now. To get this and other exclusive content now, sign up to our email list by going to http://www.financialresource.org We dont like spam either and respect your privacy.

Our next several episodes will dive into the contents of this Retirement Planning Guide. You don’t want to miss this series of podcasts if you are looking to personally manage your finances or are searching for a retirement planning guide, including retirement planning calculators and retirement planning software. All this valuable information along with tips and tools for retirement and financial planning are in this eBook to aid you with your own personal financial planning.

What is covered in this Retirement Planning book?

1. Things you should think about when starting your retirement plan.

2. How to determine how much money you’ll need now and in the future.

3. Maximizing your employer’s retirement plans while you can

4. How to find FREE MONEY in your employer’s retirement plans

5. Investing in the stock market to grow your retirement savings

6. What you need to know if you have to work after the age of 65

7. How to plan your will

8. The best way to use your home in your retirement plans

9. How to find health insurance in retirement

10. If you need to purchase long-term care and life insurance

Lots more…

We look forward to sharing this with you in the upcoming podcasts. Once again, sign up to our email list to get the FREE eBook and the five part course. Also if you want to get ready to listen to the podcasts on your iPod, visit us at http://www.financialresource.org click the iTunes link in the left sidebar. It will take you to the Financial Resource iTunes store. Click on the Subscribe button once you are in iTunes. With that final click, you are all set to automatically receive the latest FREE audiobooks and podcasts on this book.

Many people do not think ahead about reducing taxes during their retirement years. But actually there are many ways to reduce the amount of taxes that you pay during your retirement years. Some of these include.
Maximizing the nontaxable amount of your retirement plan benefits by taking a lump sum distribution limited to your previous contributions. Planning the order and timing of (a) retirement plan rollovers and (b) IRA distributions to maximize the nontaxable amount.
Eliminating withholding tax on retirement plan distributions by making a trustee to trustee rollover to your IRA. Electing to defer tax on the distribution to you of your employer’s stocks and bonds. Carefully considering whether and when you should convert your regular IRA to a Roth IRA.
Planning the order and timing of (a) retirement plan rollovers and (b) Roth IRA conversions to maximize the nontaxable amount. Reversing your previous conversion of an IRA to a Roth IRA because of change circumstances. Obtaining temporary use of retirement or IRA funds without paying tax or interest on the funds.
Deferring or accelerate income or deductions between tax years to minimize tax on social security benefits. Choosing distribution alternatives that delay taxation of required minimum distributions from retirement plans and IRAs.
Taking a partial lump sum distribution from a personally purchased annuity or a funded nonqualified plan after the annuity has started, rather than before. Carefully consider whether your rollover of retirement plan funds to an IRA should include your previous contributions to the plan. Carefully considering whether to roll over your employer’s stocks and bonds to an IRA.
Electing the most favorable method for computing the tax on a lump sum distribution from your retirement plan, if you were born before January 1, 1936. Deferring income (or accelerate deductions) between tax years to qualify for a Roth IRA conversion.
Choosing the distribution methods and distribution periods for your retirement, IRA, an annuity benefits that maximize the deferral of your taxes. Taking the first required minimum distribution from your retirement plan or IRA in the tax year generating the lowest tax. Structuring distributions from your retirement plans or IRAs to avoid the penalty tax on premature distributions.
Electing the most favorable method for computing the tax on lump sum payments of prior year social security benefits. Determining the percentage of disability insurance premiums you paid a to maximize the nontaxable portion of your disability benefits. Qualifying for nontaxable VA disability benefits to replace taxable U.S. Military retired pay. Preserving your surviving spouses right to elect to own your IRA or Roth IRA.
Preserving the right of your beneficiaries to choose between alternative methods of distribution of your retirement and IRA benefits. Establishing separate IRA accounts for your beneficiaries to maximize their tax deferrals. Designating a trust as the beneficiary of your retirement or IRA benefits to provide better control of funds.
Devising an estate plan that reduces or eliminates federal estate taxes on your retirement or IRA benefits. Making a charitable beneficiary designation that will eliminate taxes on retirement or IRA benefits. Using multiple trusts as IRA beneficiaries to maximize tax deferral.