Retire at 55. That is what some of us are thinking of. Though most financial advisers often recommend at least 15% savings from one’s monthly income to have enough for the retirement age but the fact is that even 15% of your monthly income may not be enough for you to pay your bills. Aside this many organizations are finding it difficult to pay their retired staffs . It has also been discovered that less than 20% of those who work outside government establishments receive entitlements after retirement.
Depending on your age and economic situation around you, you will need different investment plans to ensure that you make it big before retiring at age 55. It has been suggested that the amount of pre-retirement income you should aim to replace when you leave your job should be around 80% of the total income you have earned or at least $1 million.
Depending on your age, medical history, dependent family size and several other factors you may have to start saving very early before the age 55 to retire comfortably. Researchers have shown that those who start saving at an early stage of their working years will find it more comfortable to retire at the age of 55. No amount is too much or too little to invest. An investment of around $10,000 for 25 years may grow to more than one million dollars or more if followed strictly.
According to researches. A 32 year old may have to save up to $14,000 yearly to be able to have around $2 million at the age of retirement. You may also need to save $10,000 a year outside of your retirement account to be able to have some financial stability while saving for the retirement age of 55. It will be hard to save this kind of money no doubt considering the fact that you will need to pay insurance and settle all other debts and perhaps what you often have remaining is few Hundreds of dollars. The best possible way to save money while earning low income is to set your priorities and make away with some non essential spending.
Most retirees will also receive Social Security benefits that could replace another 20% or 30% of pre-retirement income. For the average wage earner – with an income of $37,000 in 2005 –Social Security replaces about 42% of pre-retirement income; the figure is less for those with higher earnings. That would boost total income close to the 75% to 85% range of pre-retirement earnings generally recommended.
Saving around 15% of your monthly income does not mean you should stress yourself on your salary. There are some part-time jobs you can take to generate some savings. It has been discovered that those who have more than 1 jobs save more for their retirement age. Get some online jobs which will not take much of your time and remember that It doesn’t make sense to stash all of your money in an immediate annuity -especially one that does not increase with inflation because you will wipe out your savings. You can put around 65-70% of your savings in annuity depending on how well you can cope with the financial demands you got. So go ahead and start effecting your plan to retire at 55.
Passive Income generating jobs can be used as a supportive income generation for retirement periods. They may or may not be generating as much income, like one million dollars, as you would like but they will definitely provide an alternative source of paying your bills and you need to note that passive income or residual income refers to income received on a regular basis, taking very little effort to generate. Unfortunately, this income type is taxable under US law. Some financial institutions and Governments also consider the income a result of capital growth.
The advantages of passive income opportunities are quite enormous and they include; flexible working hours, unlimited source of income, funding of future retirement and freedom of choice on decision making. Some of the best passive income opportunities for retirement include; affiliate membership opportunities, pay-per-click opportunities, information product and services sales, blogging, Forex Trading, online referral/membership opportunities, work from home administrative jobs, and many more.
The Internet has made passive income generating opportunities much more popular in the world today. Affiliate marketing also seems to be the most preferred among the passive income generating online home businesses. It involves an individual becoming a part of a marketing team online and income generated on products and services will be shared among the affiliate marketing members. The setup is inexpensive and uncomplicated, merchant support readily available, business running costs are low with no need for office rental, leasing of computers and other equipment.
Affiliate membership generates multiple and recurring commissions depending on the sales generated from such affiliate marketing activities, hence the more you join the more passive streams of income generated.
Some people often engage themselves in multiple passive income generating opportunities before or after retirement and such online business include; eBay product selling and buying, eBook publishing, data entry jobs and several others. Most retirees combine many of these online opportunities to generate streams of passive income at their own pace.
Forex trading investment is one of the highest yielding businesses in the world today but it is actually for those who can master the technicalities of trading the world major currencies otherwise you will stand a risk of losing all your investment. Forex trading often make use of two fundamental analysis and those are the indicators and the non technical analysis which involve the use of current news on the values of the currencies and other economic determinants which may affect the value of currencies being traded on FOREX.
Apart from trading in Forex, you can also invest in several other home based business to generate passive income for yourself after retirement, what you need is looking around you and searching for the needs of people. When you discover what people around you need most then you can start supplying such needs and making your money. People who look around them and create wealth, even one million dollars or more, from providing common services to people around them often generate more streams of income for themselves and their families. You just need to think and make researches.