10 Retirement Planning Tips From a Financial Planner

Retirement planning is a multistep process that evolves over time. To have a comfortable, secure and fun retirement, you need to build the financial cushion that will fund it all. The fun part is why it makes sense to pay attention to the serious and perhaps boring part: planning how you’ll get there.

Retirement Planning

Concurrent Retirement and Disability Pay

Concurrent Retirement and Disability Pay (CRDP) is a phased-in reinstatement of the retired pay deducted from military retiree’s accounts due to their receiving of department of veterans Affairs (DVA) compensation, showing on their Retiree Account Statements as the “VA waiver”. The phased-in restoration started January 1, 2004 with the initial payments dated February 2, 1004.

A person is qualified for the Concurrent Retirement and Disability Pay if they have a DVA-rated, service-connected disability of fifty percent or higher, except if they are a disability retiree with less than twenty years of service or a retiree who combined the military time and civil service time to meet the criteria for a civil service retirement. If they have combined the military time and civil service time in order to improve their civil service retirement from OPM, then they are eligible for the Concurrent Retirement and Disability Pay payments, but they will have to replace their retired pay by coordinating with OPM. If one becomes eligible for CRDP, their payments will start automatically.

Payments from the Concurrent Retirement and Disability pay are delivered through direct deposits or mailed-based on their current retired pay information. The payments will reflect as a decrease in the VA waiver deduction on their retiree Account Statement, but they will maintain to be given the same amount from the DVA.

The Concurrent Retirement and Disability Pay payments are taxable according to their current retired pay federal Income tax Withholding (FITW) tax rate and may have an effect on the amount they wish to have deducted for State Income tax Withholding (SITW).

The payments are also subject to collection actions for child support, community property, government debt, alimony, and garnishment. The Concurrent Retirement and Disability Pay payment rates are as follows: (computation begins with the “table rates”)

  • If rated unemployable $750.00
  • If rated at 100% $750.00
  • If rated at 90% $500.00
  • If rated at 80% $350.00
  • If rated at 70% $250.00
  • If rated at 60% $125.00
  • If rated at 50% $100.00

The total computed CRDP amounts based on the rates will increase each year until January 2014 when they will be receiving their full retired pay entitlement and their DVA disability compensation with no reduction. Unlike Retired Pay Cost-of-Living Allowances (COLAs), The Concurrent Retirement and Disability Pay increases will be effective on the 1st of January every year, to be paid on the first business day of February. In addition, since retired gross pay, DVA compensation, and consequently VA waiver amounts, increase very year with COLAs, they will not be able to precisely extrapolate CRDP amounts for upcoming years.

CRDP amounts will automatically decrease or increase based on the percentage of disability accounted to the Defense Finance and Accounting Service (DFAS) by the DVA. Just remember that the monthly CRDP amounts cannot go beyond the lesser of your monthly gross related pay or VA waiver amount.

Early Retirement Planning

Are you already on your 30s? Have you ever thought about early retirement planning? Or, is the idea of life after retirement ever occurs to you? Well, many people find early retirement planning as not a very much important factor to consider in life. They tend to overlook everything that is related to it thinking that they are still young and retirement is still a long way to go. But the truth of the matter is, early retirement planning plays a very critical role in someone’s life. It’s not a good idea to work until you age and die, after all. Aside from that, planning for your early retirement allows you to enjoy everything that life has to offer even after you leave from the work force. It prepares you for everything that will happen in your life after retirement.

However, early retirement planning is not an easy process. As the word “planning” implies, there are a lot of things to be considered, including your savings, your assets, your family, and everything that can be affected. It is basically here where the importance of planning properly comes in.

So, how to plan properly for early retirement?

As far as I know, the most important move to take when thinking about early retirement is to consider first whether you are already financially stable or not. Yes, money greatly counts and this is due to the fact that when you retire, you are leaving one of your best sources for living – your work. So in early retirement planning, it is necessary to think how much you need to save for your life after retirement, how to invest, how much money the retirement plan you want will require, and what changes in terms of financial matters you need to make in your preparation. This is simply about financial planning.

But there is more to early retirement planning than focusing on the financial aspects. Money is not the whole story, after all. In fact, there are some retirees out there who have retired with enough money on their pockets, but they don’t have a better health. They find themselves immobile and incapable of doing something great for their families at all. It is so sad, but true and I find it a result of not having proper early retirement planning.

So when considering retirement, it is important also to look at how you want to live after retirement. Look at your future condition. What are you goals? Do you find yourself enjoying a second career after your early retirement? In what way you’d like to spend your time after retirement? Consider all of these things and make sure that you’ve maintained a healthy lifestyle even after you retire. There are a lot of options for you to do, after all. So make use of your choices and enjoy what life has to offer. Consider this as part of your early retirement planning and you’ll surely obtain a good life after you leave the work force.

Employee Retirement Income Security Act

The Employee Retirement Income Security Act (ERISA) of 1974, is a United States federal law ratified to guard interstate commerce and the interests of members in employee benefit plans and their beneficiaries, through necessitating the reporting and disclosure to participants and beneficiaries of financial and other information with respect thereto, through setting up standards of responsibility, conduct, and obligation for fiduciaries of employee benefit plans, and through providing the appropriate sanctions, remedies, and ready access to the Federal courts.

The Employee Retirement Income Security Act’s interpretation and enforcement is handled by the Internal Revenue Service and the U.S. Department of Labor. ERISA protects the retirement assets of Americans through putting into practice rules that qualified plans must follow for ensuring that fiduciaries do not misuse plan assets.

The Employee Retirement Income Security Act generally defines a fiduciary as anyone who implements discretion authority or administers over a plan’s management or assets, including anybody who provide investment advice to the plan. Fiduciaries should follow the principles of conduct at all times and anyone who does not do so, may be held responsible for restoring losses to the plan.

The right of members to sue for benefits and breaches of fiduciary duty is also provided by the Employee Retirement Income Security Act, including guaranteeing payment of certain benefits if a distinct plan is terminated through a federally chartered corporation known as the Pension Benefit Guaranty Corporation. The act also protects the plan for misconduct and misuse of assets through fiduciary provisions.

The Employee Retirement Income Security Act requires pension plans to give vesting of employees’ pension rights after a particular minimum number of years to meet certain funding requirements. I t does not however, require employers to establish pension plans, instead only applies those plans that an employer has created. Likewise, the Act, as a general rule, does not require employers that have created pension plans to give any minimum level of benefits instead regulates the way in which an employee can get vested rights to a pension and the manner in which the pension benefits can be lessened due to events such as early retirement or return to work in the business after retirement.

The Act on the other hand, does necessitate employers to provide some forms of benefits such as survivor and joint annuities that permit married couples who have chosen for such coverage to give for continuing benefits to a surviving spouse that plans may not have offered.

The Employee Retirement Security Act was enacted to deal with irregularities in the administration of particular large pension plans, specifically the Teamsters Pension Fund, which had a quite colorful history concerning questionable loans to certain Las Vegas casinos.

Financial Retirement Planning

Many people retire after they find themselves financially stable enough to support all their needs. There are also some who consider first how much they have already saved for them to say that they are already ready for retirement. Well, money matters really play a vital role in retirement and to become financially secure after retirement takes time, effort and of course, proper planning.

The concept on financial retirement planning is not something that is fresh or new to the people’s ears. It has been around for more than a decade now, and many successful retirees have considered financial retirement planning at some point in their lives. Now, if you are thinking about retiring from work, but you want to make sure that you will be financially stable when the right time to retire comes, knowing everything that is involved in the planning is definitely one of the best moves you can make.

So to start with your financial retirement planning, simply note that you are dealing not just with money here, but for a better future. Note that and if possible, save as much as you can as early as possible. As what many retirement experts have said, the sooner you start saving, the more time your money has to grow.

Set certain goals that are realistic and make those goals an important part of your financial retirement planning. You can project your possible expenses based on your needs. Consider how much your life after retirement will cost and try calculating everything that is involved. Settle only when you find out that everything is tackled and solved.

You can also consider a 401K plan as a special part of your financial retirement planning. The 401K is after all one of the best and easiest ways for saving after retirement. But before you consider the plan, make sure that you have understood everything that is involved in it, how it works and how you will benefit from it. There are also the IRA retirement plans for you to take. But as mentioned, know first what the plans entail and how they work to support everything you’ll need after retirement.

As you go along the financial retirement planning process, try to look at your asset allocation. It has been maintained that how you divide your portfolio between stocks and bonds will have a big impact on your long term returns. And, speaking of long term returns, several retirement experts have noted how important the decision of paying attention to the stocks and bonds is. According to them, stocks offers the best opportunity for you to achieve high returns over long periods of time, while bonds should not be considered heavily even in retirement for that will increase the inflation level, thus destroying the purchasing powers of the interest payments of your bonds.

Finally, when considering a financial retirement planning, it is best to consider yourself working part-time even after retirement. What you will earn on your part-time job will help increase what you’ve saved for your retirement. It will even keep you socially engaged.

Florida Retirement Planning Communities

Have you decided yet where to live, if ever you wished to move to a retirement community after you retire? Well, if you haven’t, you can start delving into Florida Retirement communities where it offers a wide variety of retirement homes or a second home for retirees. If you don’t know yet, Florida is one of the ideal places to retire due to its warm climate. No wonder, it is popular as a retirement state.

Let me give you some of the known and preferred Florida Retirement Communities to select. For more information and questions concerning Florida retirement communities, you may visit retirementhomes.com.

Bellaire Towers

Bellaire provides an active lifestyle/independent living type of care, wherein all amenities are included in monthly rent. They have full understanding that a great retirement lifestyle is a full one, which is why they have a variety of planned activities to choose from each day. You also get to dine in style and comfort as you enjoy delicious chef-prepared breakfast and full course dinner every day. Monthly rental is at $ 2450 to $ 2800.

Regency Residence

Regency has active lifestyle/independent type of care with monthly rental of $ 1900 to $ 2775. Meals and other amenities are also included in the monthly rental. This facility has been operating for over 10 years now.

Palazzo Di Oro

Palazzo provides an active lifestyle/independent living/assisted living with monthly rental of $ 1295, by which all the amenities, such as 24- hour staffing, on-site medical services, meals, and many others are included in the rental fees.

Top of the World

Top of the World is one of Florida retirement communities that offer active lifestyle/independent living/congregate living with monthly rental fee of $ 850 to $ 1500. Top of the World communities is located in the heart of central Florida offering new exciting neighborhoods. You have choices when it comes to your home and elegant living areas. Amenities include indoor outdoor floors, golf course, lighted tennis courts, health and wellness opportunities and more.

Highland Ridge

Highland Ridge offer active lifestyle type of care with a golf course view that most retirees would want. This retirement community offers their residents modern amenities and the facilities to stay healthy and fit with the help of their wellness partner, Florida Hospital Heartland.

Among the many different Florida retirement communities, choosing one could be difficult. However, your choice should be based in terms of amenities, monthly rental fee, and services which the retirement community is offering. Know that retirement communities differ in amenities and services that they provide; whichever suits your needs and taste should be the one you’d settle with.

Choose Retirement Communities Perfect For Your Lifestyle

A retirement community is a term that is used to call a variety of housing for retirees and seniors. It is especially developed and equipped for people who no longer work or for those over a certain age. Retirement communities differ from retirement homes, which are single buildings or small complex where there is no specific areas for people to socialize. There are many retirement communities that have special facilities to serve the needs and wants of retirees, such as club houses, golf courses, and on-site medical facilities. Others are Naturally Occurring Retirement Communities or NORC, which become retirement oriented due to market forces rather than design.

Retirement Communities have three broad categories, such as:

§ Active Communities – these are all residential units with no long-term healthcare facilities.
§ Active/Supportive Communities – these are a combination of residential and healthcare facilities, which is also known as Continuing Care Retirement Communities
§ Supportive Communities – all long-term healthcare units, like assisted and nursing care.

Retirement communities are usually built in warmer climates and are common in Arizona and Florida. But, there have been an increasing number of retirement communities, which are built in and around major cities, as well as in cold climates.

A Continuing Care Retirement Community, or CCRC, is a residential community for retirees with a choice of services and living situations. Continuing Care Retirement Communities offer service and housing packages accessible to independent living, assisted living and to one with skilled nursing facilities. Independent seniors many live luxuriously in a single-family home, apartment, or condominium within the retirement complex. But when they start to need help with daily activities such as bathing, dressing, and others, they can transfer to an assisted living or skilled nursing facility within the same site.

Actually, there is no problem when it comes to moving from any type of living for as long as it answers the need of the residents. Therefore, the elderly can move between independent living, assisted living, and nursing home care based on changing needs at each point in time. Retirement communities are meant to let the retirees spend their golden days the way it should be- naturally. These communities have flexible accommodations that are specifically designed to meet the needs of the elderly, such as health and housing needs as these needs change over time.

Residents entering Continuing Care Retirement Communities sign a long-term contract that provides for housing, services, and nursing care, which are all in one location allowing the seniors to have a familiar setting as they grow older. Many seniors join in a CCRC contract when they were healthy and active, with the knowledge that they will be able to stay in the same community and receive nursing care if the necessity arises. Those who have invested in a CCRC have sufficiently planned for housing and care for the rest of their lives and have the financial to resources to support it.

Live in the Best Retirement Community in Arizona

For the past many years, you have worked so hard to earn and save to have a comfortable life when you retire. And now that you are retiring, don’t you think it’s about time that you let yourself taste the sweet reward of your hard work? I bet you do, all of us do! So, if you want to have a better way to spend your retirement golden years, spend in a retirement community in Arizona. Why Arizona? Well, it is just a perfect place to build retirement communities. Truth of the matter is, such communities are often built in warmer climates such as in Arizona. In other words, it is where you can find plenty of retirement communities from which you can choose.

If you want to know where exactly you can find a perfect retirement community in Arizona, start checking out Quail Creek? It is located in beautiful Sahuarita in the Green Valley area south of Tucson, Arizona. It possesses a truly picturesque setting with the stunning Santa Rita Mountains that can pass as a postcard view. Not only that! The surrounding area offers many different things to do and see such as shopping centers, medical services, and more. Madera Canyon is one of the places worth your time, because it is known for exotic bird watching and hiking trails in the cool pines. Bird watching and hiking are ideal for nature lovers and hikers alike.

The most favored Madera Clubhouse, a multi-million dollar amenity, can provide you with the perfect social atmosphere to meet people and make friends who share the same interests like yours. It offers a ballroom/auditorium, banquet room, lounge, conference room, and multi-purpose rooms that can be used to enjoy a wide variety of activities. When you live in this particular retirement community in Arizona, your social life will never be in vain. In fact, you can enjoy more of your social life while staying here.

Quail Creek also features the Quail Creek Grill and Lounge, fitness center, oversized swimming pool, and championship golf course. Or, you can even choose to explore you creativity at the Arts & Technology Center, enhance your tennis game, or get up to a game of bocce ball. Now, isn’t it a place where you can get everything – fun, excitement, fitness, and a better quality of life? These are exactly what we want our lives to be when we retire, aren’t they? For those who love the extravagance of playing golf, Quail Creek Country Club features a championship golf course that might help you make up your mind.

We all have our share of hard work during our working years and now it is time to rest from the loads of work; it is just right that we take a break. So, check out this beautiful retirement community in Arizona at robson.com and decide to spend the rest of your happy years.

Retirement Planning Favors

Retirement parties can sometimes be big fuzz, from the food to prepare, to the number of friends and families to invite, to decorations for the venue, the drinks to serve, and of course to the retirement favors to give out. When it’s the time to pay tribute someone special for their years of service, it can be fun as well as meaningful. After all, retirement parties like any other special occasion will always tend to be remembered through these modest mementos that every guest, friend, or family takes home.

Retirement favors are various, depending on the type of retirement being celebrated, it can vary from tees, golf balls, umbrellas, shirts, sweets like chocolate covered almond fudge, or even mints in great containers reflecting the occasion. Of course, one can always use their imagination when it comes to selecting the retirement favors that meet the need. Here are some favorites for retirement favors:

Candy Bar Wrappers that can fit candy bars, made personalized with the retiree’s name, date, themed clip art, corporate logo, special message, and retiree’s photo, are among the much loved choice.

Personalized Bottle Labels that can be placed on bottles for beverages are also great items for favors. The personalized labels come with a message, company logo, and name of the retiree, date, and picture. These are perfect for champagne bottles, tall wine bottles, beer bottles, water bottles, and sparkling cider bottles.

Personalized Retirement Margarita Mix with cactus Glass which has a margarita mix packet together with a plastic cactus cocktail glass is a great and unique retirement favor. It is mad personalize with the retiree’s name and the date of retirement.

Gold/Silver Retirement Celebration Coffee is a happy retirement custom value and flavored packed in golf or silver foil and personalized packaging.

Personalized Tea Favor with Caddy which is usually a white porcelain teapot-shaped caddy that highlight and displays the favor, imprinting the logo of the company, retiree’s name, date, and any message of choice.

Retirement Bookmark, Advice Card, and Mint Flavor Trio is a fine combination for a retirement favor, is unique and a meaningful memento with a fun twist on the word “retire-mint”, the cards will allow the attendees to share thoughts and good wishes with the retiree, and the bookmark is a good take home token.

Personalized Party Designer Magnet wrapped up and displayed on a three-inch “mini serving tray, will be a memorable token for a very special occasion.

Fiesta Maraca Pens with a theme of a “new beginning” featured with splash of color and flick of the wrist-like magic, these favors turn stifling retirement gathering into a real “working” fiesta.

There are a lot of other great retirement favors that one can choose from, these promotional items are a convenient and inexpensive way to say thank you to the wonderful years of work with co-workers, friends, and families.

Retirement Planning Gifts

Do you know someone who is about to retire, a boss, a friend, or a family member perhaps? Giving them retirement gifts may help them remember the day they’ll stop the routine that eats most of their time. Have you ever wonder how would they really feel when they retire? Are they really happy about giving up the job they have loved for so many years? Or, will they feel glad, since finally they can relax and unwind without worrying about the work they have left behind?

It is worth knowing the answers to those questions, because you can get retirement gifts ideas from them. Also, just by knowing the person is enough to come up with retirement gifts that match the recipient’s personality. It’s not enough to give any gifts without considering how the gift would suit the recipient. To be able to come up with unique ideas for retirement gifts, consider the following:

§ Give the most unique and memorable retirement gift possible
§ Give a retirement gift that genuinely helps retirees in their new lifestyle
§ Give the retirement gifts that touches their heart and soul
§ Give a gift that shows you really care
§ Give the retirement gift that no one else give

Sometimes, we give gifts that can be pretty humorous to let the person feel the light or funny aspect of retiring, or simply to make him smile. It may work, but it’s not too meaningful. If you want to do something that will be remembered and appreciated like no other gifts, then you better start your mission now. You may start your research over the internet where you can find a wide range of gift ideas. I once found a nice and beautifully designed framed retirement poems for a retiring person who loves poems. There’s another thing that shouldn’t be forgotten – the Farewell retirement signature boards. These fun boards allow friends to write smart quotes that will be remembered for years. Buy one with a design that could be adorned. But, if you prefer something traditional, there are beveled glass plaque or picture frame, pocket watch, and many more.

Whatever you decide to give as retirement planning gifts, bear in mind that someday you will have to go through the same stage. If you think that way, you may change little things in someone’s retirement party. You wouldn’t want to spoil the fun of opening gifts by receiving something without importance, would you? The thoughts of the gifts we received are as important as the money you have spent for them. So, make a difference by giving the best gift.

Retirement Planning Health Insurance

Health care is a priority at any given age. After retiring however, health care probably becomes the most important focus as one tries to stay in good health; this means more visits to the doctor for routine checkups and preventative tests. There’s also that chance of ones health declining as they grow older and the increasing need for expensive prescription drugs and medical treatments. This is the main importance of retirement health insurance.

Retirement health insurance allows for those aged sixty-five or older to be lessened with worries when it comes to paying health care when they retire. Most retirees presumably are eligible for certain health benefits from a federal health insurance program, Medicare, when they reach the age of sixty-five. But if one retires before this age, then they’ll need some other way to pay their health care until Medicare benefits take effect. Some generous employers may offer extensive retirement health insurance coverage to their retiring employees, but this is most of the time and exception rather than a rule. If employers do not extend health benefits, then there is a need to buy a private retirement health insurance policy, which will be expensive, or extend the employer –sponsored coverage through COBRA.

But take note, Medicare will not pay for long-term care if one ever needs it. They’ll need to pay that out of their own pockets or depend on benefits from long-term care insurance (LTCI), or for those whose assets and/or income are low enough to allow them to be eligible for Medicaid.

Nearly all Americans automatically qualify or become entitled to Medicare when they reach the age of sixty-five. Factually, for those who have been receiving Social Security benefits does not need to apply for Medicare because they will be routinely enrolled. However, they will have to decide whether they need only Part A coverage, which is premium-free for the majority of retirees, or if they want to also buy Part B coverage. Part A, frequently referred to as the hospital insurance portion of Medicare, helps pay for hospice care, home health care, and inpatient hospital care. Part B assists in covering other medical care such as laboratory tests, physical therapy, and physician care. Persons who want to pay a fewer out-of-pocket health care costs may opt to enroll in a managed care plan or private fee-for-service plan under Part C of Medicare or Medicare Advantage.

The likelihood of prolonged stay in a nursing home ponders heavily on minds of many senior Americans and their families, so does the thought of health conditions that may need expensive treatments; however, with the aid of retirement health insurance, this burden is lightened.

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