Retirement Planning With Property

By Dino Livanidis

Retirement Planning with property is easy to do when its done properly.

Let me ask you...Have you ever been on holidays and noticed that there are basically two types of holiday makers?

The first type is similar to what I used to be like years ago:

The person that watches where the money is spent and counts the holidays down from day one before going back to work.

Do you do that too?

I did and it used to drive me crazy, just as I started enjoying my holiday it was time to go back to work.

Now the other type of person is the one who goes on a holiday without keeping track of what he is spending or how long the holiday is going to go for, with the flexibility to change plans on a whim (for example, deciding to go to another holiday resort on the spur of the moment).

Why can't we all be like that?

Wouldn't you agree that if we worked all our lives we deserve to live that lifestyle? We deserve to enjoy our golden years by doing the things that we want to do and be financially secure enough to live life to the fullest.

We can, but you need to set it up.
Please also remember
Property Investment Is NOT A Get Rich Scheme

Which means that you need to start setting it all up now and not tomorrow, as we all know we put things off and knowingly after a year or 2, we kick ourselves for not taking the step when we thought about it.

I remember early 80's when I started out as an apprentice motor mechanic, there were some older guys that were retiring and everyone was saying how lucky they were to retire.

Do you remember the big thing in the early years, everyone used to receive "The Gold Watch"

But you know what? No-one even thought about what was actually happening to these retired workers, there cash flow was going to be reduced as they were going to go on the pension.

Most people work all their lives, sometimes starting as early as 15 yrs old and working till the age of 65 (a working lifespan of 50 years).

Generally, when people reach a retirement age the home is paid off, they have raised and educated the children and have done everything in their power to provide for the family.

But strangely enough, after all that, if we look at the Australian Bureau of Statistics figures: 86.6% of Australians who retire by the age of 65 will only live on an income stream of less than $16,000 per year!

That's only $320 a week to run the household, pay all bills, buy presents for the grand children, buy clothes etc. I know it's nowhere near enough to live a decent lifestyle - my mother (72 years old) experiences it everyday.

So how do we work all our lives and yet only finish with such a small amount of money?

Easy, because we are only taught how to get a job, pay our taxes, buy a home, raise a family and that's it.

No-one has ever said- "Hang on, you better start working smart and do some retirement planning and start to leverage your self for the future!"

So how do we change all that?

How do we start working smart so that we can retire financially secure and free with an ongoing income or alternatively, become financially independent at an early age?

What I'm about to show you has been used by the wealthy and other people in the property field for many years. It's really nothing new

Did you know investors use their investment properties to pay for their children's school education using this method I am about to share with you?

Just like my daughter Gyorgem, I have had the Investment Properties pay for her Private Schooling.

Firstly- I'll tell what its like: If you have a home loan with a Line Of Credit (LOC), couldn't you use the credit to purchase cars, holidays etc straight from the LOC?

But, it's YOUR home and you'd prefer to have it paid off as quickly as possible rather than increase the loan, right?

Well, what if you had a property investment portfolio of around one million dollars? Let me tell you, in today's values it's not hard to do at all, one million dollars in property investment is really not that much, once you get into your first investment, the second is not far away.

So if your portfolio is hypothetically increasing in growth at a rate of 7% per year, that means you have an equity increase of approximately $70,000 per year, right?

I will also tell you as you are probably aware of, property does not climb on a straight angle but if we look at it over years it averages a capital growth.

Then why can't we borrow that from the bank and use it for our lifestyle? And if we borrow from the bank, it's not an income, so do we pay tax on it?

No! Because it's TAX FREE! It's a LOAN, not an income! Now are we starting to work smarter and not harder?

This is in theory, because we all know property does not go up 7% every year. It may go up 15% one year and the next couple of years it may be flat, but on average, if we look at it long term, property has proved itself over and over again.

Just remember, with this method it also depends on how much you owe the bank (rental returns plus expenses). But if you hold property for the long term this is very possible and easily achievable.

In my personal appointments I go over this and show you how it's all possible, even for someone on a small income, but remember you will need to use equity. If you don't have a home you can use some one else's home for a couple of years until the Investment has grown in equity and then you can have the security property released.

My eldest client was 64 years old and self employed when he purchased his first Investment Property, so never say you are too old or that it's too late.

Like I've said before, time we can never replace. So many people just waste time finding excuses to push their financial wealth aside or leave it for another day which unfortunately never comes.

TRUE FACT-
Did you know we spend more time writing a shopping list or planning a two week holiday than we do for our whole future?

Isn't this a shame?
Think about it and make a decision to start working on your future straight away, right now. Work out what you want and need so by the time you retire you have something to help you, because retirement planning with property will help you get there if you do it properly.

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When Should I Start Retirement Planning?

By Melanie C

It is never too early to start retirement planning. The earlier you start to plan for your retirement the better off you will be. When time is on your side, your superannuating or any other investment you make has time to grow, interest has time to compound and real estate has time to appreciate in value. You have time to weather a few downturns in the economy or the share market when you start retirement planning early.

The biggest problem is that the younger you are the less you think about retirement planning. It seems to be a million light years away. You just want to get out there and have fun - and that means spending money, not saving it. And as you get older there are other major purchases such as a car and home that need your attention first. But even then, if you can put aside a small amount every so often to go towards your retirement you will be better off in the long run.

The best time to plan for your retirement is when you start your first job. Even children at school who have part-time jobs should be encouraged to think of retirement planning. If they saved just $500 to invest in a retirement plan and didn't touch it for the rest of their lives, they would be astonished when they got older by how much it had grown. Children and young people who have no debt, could save a great deal more than they realize. Their trouble is that mostly they want to spend, not save.

You might have found it impossible to save for retirement planning while paying off your mortgage and educating the kids, but now all that is over and paid off, you are looking forward to having money to spend for yourself. You could go for a holiday or do up the house. You might think it's too late to do any retirement planning now, but this is not so. Even a few years spent in saving towards your retirement will make a big difference to your comfort when you stop working.

So while the best option for retirement planning is to start young, your next best option is now, today, before it gets any later. Knowing that your retirement planning is well under way will give you peace of mind and a feeling of independence.

There is more to retirement planning that meets the eye and you should seek qualified help when considering the retirement planning solution that's right for you.

Article Source: http://EzineArticles.com/?expert=Melanie_C
http://EzineArticles.com/?When-Should-I-Start-Retirement-Planning?&id=1634713

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Retirement Planning

By Damian Sofsian

Once a person reaches a certain age or acquires a certain amount of work experience, he becomes eligible for retirement. Every organization should have clear-cut rules regarding retirement and it should help the employees in adjusting themselves after retirement to the new realities of life. Some organizations provide pensions for their retired employees, but more and more individuals have to provide for their own retirement.

Retirement is an important event in an employee’s life and also has an important impact on the organization where he worked for a major portion of his life. Therefore, at the time of parting, the personnel manager should arrange a special interview with the employee. He should thank the employee for his services to the organization and ask him to speak about the changes or improvements he would like to be introduced in the organization.

Retirement can be classified into three categories: compulsory retirement, forced retirement and premature retirement. While every individual retires after he reached the retirement age set by the company/ firms, forced retirement happens if an employee has violated the conditions enumerated in the service agreement. On the other hand, premature retirement happens when an employee becomes disabled in an accident or due to some disease, or is offered the option of retiring by the management before attaining the retirement age with full benefits of retirement.

It is good to plan for retirement well in advance so that you can become mentally and financially prepared for a life without a daily work routine or regular paycheck.

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How a Retirement Planning Calculator Can Help Your Retire in Style

By Eric Bayne

If you are one of the many retired people managing their own self directed accounts, you need to find yourself a good retirement calculator. But even if you're young and just starting to work, you need to begin planning for your future retirement. How much money will you have to retire on if you continue to save and invest at your current rate? This is what a good retirement planning calculator will help you to figure out.

Very few things are certain in life. Not your current salary. Not your current rate of return on your investments. Not your good health. All of these things are variables that can change in an instant. Nevertheless, the purpose of creating a retirement plan for yourself is to help to give yourself the best odds of being able to live the good life when you retire. A retirement calculator will help you to do this, but you need a few prerequisites to get started.

What is your current age and at what age do you plan to retire? The greater the distance between these two figures, the more flexibility you have in your options and the greater the chances are that you will be successful. If you are age 60 and plan to retire at age 65, a retirement calculator will not help you much. It can tell you what your income will be when you retire, but beyond that, it won't be of much use. On the other hand, if you are 30 years old and plan to retire at age 65, a retirement calculator can help you plenty. It can tell you what interest rates you need to meed you desired income targets. It can tell you whether you can reach your goals with conservative investments or if you need to take a chance on riskier investments that will compound at higher interest rates. A good retirement calculator will also let you experiment with how different retirement dates will impact your income. You may discover that you can retire much sooner than you thought you would.

What is the minimum amount of money you need at retirement? This is a different question than how much money you would like to have. The minimum amount calculation takes into account the cost of basic human needs and services such as - food, shelter, health care, and so on. A good retirement calculator will look at what you're spending now on these items and extrapolate their costs into the future, taking into account inflation and other cost of living variables such as age. The calculator may alert you that what you thought was necessary to maintain your current standard of living will be, in fact, woefully inadequate 35 years from now. Having this knowledge in hand will let you adjust your savings plan in time to make a difference.

Once your retire, how much money can you safely withdraw without significantly impacting your principal? The principal is your retirement lifeblood. If it disappears, so does your monthly income. The best calculators will let you "play" with the principal amounts and desired monthly income amounts until you are satisfied that the periodic amounts you withdraw, will last you for your lifetime.

Everyone, who is not yet retired, should plug these retirement variables into a calculator at least once a year to ensure that their retirement plan is still on track. You do not want to discover any negative financial surprises when you are finally ready to retire. In fact, even if you are retired, it's always a good idea to periodically take stock of and reassess your financial condition.

Eric Bayne is writer and researcher for http://www.retirementplanhelper.com Visit his site to find out where you can find the best retirement planning calculator.

Article Source: http://EzineArticles.com/?expert=Eric_Bayne
http://EzineArticles.com/?How-a-Retirement-Planning-Calculator-Can-Help-Your-Retire-in-Style&id=1730609

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When Should You Start Planning For Retirement?

By Samantha Asher

Most people don't look forward to getting old. Most people, unless they are lucky, won't retire until they get old, making the word 'retirement' sound less than desirable. Still, we all want to retire someday, and in order to live comfortably, or even just survive, we have to plan.

Is it ever too early to start planning for retirement? I will say that planning fore retirement at 12 is a little overkill, but it's not much later then that when you should get started. As soon as you start your first full time job you should get started planning. For most, this will be out of college and others it will be out of high school. For those who are planning to head right into the work force and skip college, I strongly urge you to reconsider. You should get some sort of training whether it is trade school or an Associate's Degree. This will greatly increase your potential salary.

If you have already been working for a while, you should begin planning for retirement right away. Talk with your employer about the retirement plans they have available. It is possible that they have a 401K match plan which means they will match all or a percentage of what you put in. If you don't take advantage of this, you are leaving money on the table.

If you have been working for a while and are a bit older, don't worry that you will never be able to retire because you have not been saving. You will just have to start saving a bit more aggressively now. Talk with your employer about starting a plan and invest as much as you can.

The best time to start planning and investing for retirement is right now. The longer you wait, the less you will be able to save. This is largely due to compounding. If you invest $20 a month now and through the next 30 years for a total of $7,200, you will make a lot more than if you invest $7,200 all at once and wait just 10 years. How much more, you ask? At $20 a month for 30 years at an 8% average stock market return, you will end up with $30,005.90, and $7,200 invested for 10 years at an 8% average stock market return will have $15,544.30. That's almost double with the same investment but more time and compounding. What are you waiting for?

Article Source: http://EzineArticles.com/?expert=Samantha_Asher
http://EzineArticles.com/?When-Should-You-Start-Planning-For-Retirement?&id=1780683

Get Earning From Adsense in your retirement why not?? Find More The Secrets Adsense

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