Concerned about Handling Expenses during Retirement? Here’s all you need to know!

The first and foremost concern about retirement planning is handling your expenses without a regular paycheck coming in. For a majority of people, there is negligible to no change when it comes to basic expenditures such as shelter, utilities, food etc. The first and foremost concern about retirement planning is handling your expenses without a regular paycheck coming in. For a majority of people, there is negligible to no change when it comes to basic expenditures such as shelter, utilities, food etc.

To begin, you need to gauge an approximate amount of income which will last as long as needed. Next, you need to gather all the information about all the sources of income post-retirement such as your retirement accounts, social security etc. And, you also need to know about any other options of income apart from your savings pool.

Towards this, you can start by knowing certain important dates. These dates will tell you when you can avail the benefits from your various retirement accounts. Here’s a brief overview about it –

• Social Security : You have to reach the normal retirement age before you are eligible for the benefits of social security. While you can start receiving its partial benefits at 62, but it decreases the amount of payout over time. So, if you wait until say 70, you can gain more.

• Medicare : It is advisable to start signing up 3 months before your birthday month and also refer to the other deadlines which apply to the signing up of part D of Medicare. You are eligible for Medicare at 65.

• Retirement Accounts : A majority of these accounts allow you to withdraw without a penalty at age 591/2. Traditional IRA accounts mandate that you begin taking the Required Minimum Distributions (RMDs) when you are 701/2.  However, Roth IRAs don’t.

You can handle the withdrawals from these accounts in three ways. You can either withdraw ‘x’ amount from your IRA every month. Or you can completely withdraw all the IRA savings to buy an immediate annuity, which is a contract with an insurance company that assures you a certain income for the rest of your life. Or, you can do both – use certain amount of the money for buying an annuity and save some for other investments, and also withdraw as per your needs.

One major difference between traditional IRAs and Roth IRAs is when the savings must be withdrawn. Traditional IRAs require you to start taking required minimum distributions (RMDs) at age 701/2. Roth IRAs, on the other hand, don’t mandate withdrawals during the owner’s lifetime. So, if you don’t need the money, Roth IRAs can continue to grow tax-free throughout your lifetime, making them ideal financial vehicles.

Apart from these, there are few other key points to remember which can help ensure that your retirement savings don’t run out quickly. They are as follows:

  • Chalk out a detailed budget and keep a close track on every small and big expense against it. The basic and necessary expenditures should be considered first. And then you can assign the remaining fund for your retirement ‘wish list’.
  • You need to be very careful about spending your retirement funds. Don’t step into your retirement with unrealistic expectations about how much you can withdraw. A little self-control in the first few years will help you maintain your savings pool for more years to come.
  • While overspending is common, you should also remember to not spend too little. This means you should not overlook the needs for important things such as healthcare, proper diet, maintenance requirements of your home, etc. If at all you need to spend less because of limited funds, you should inquire about other financial aids such as public programs which support retired individuals.

Healthy money management is important to lead a financially-healthy retirement life. Learn and get to know more about the changing post-retirement financial trends and alternatives. Always stay abreast of such topics so that you can use your retirement fund wisely. You can also seek the services of a professional retirement planner who can help you manage your expenses post-retirement well, so that you can enjoy your retired life the way you have envisioned.

4 Things to Never Tell an IT Specialist

There are certain phrases that no IT specialist wants to hear. While not entirely serious, there are various reasons for this, most of them surrounding the misinformation and headache that goes into solving computer problems. While the tolerance of IT specialists varies on the individual, these statements are likely to garner at least an eye-roll from a seasoned IT specialist. Not only do the statements below hint at a certain computer issue that is glaringly obvious to the specialist, they are probably very familiar tokens or phrases that they have become experienced in dealing with.

 

“My computer hasn’t updated in years.”

Hearing that their user has avoided or delayed updates is painful for an IT specialist because it implies a multitude of different possibilities, all of which probably created the problem the user is currently dealing with. While the IT specialist themselves might be update-avoidant for specific reasons (for program compatibility or operating system functionality), it is likely that the novice or average computer user is not being purposely avoidant but negligent. This negligence can be responsible for a host of problems, crashes, errors and headaches. Not only does this mean that hundreds of updates have to be downloaded and installed before they can truly isolate the problem, the IT specialist has to begin to try to explain to the user why these updates are integral to smooth operating system functioning.

 

“I don’t need a firewall.”

While this may be true in some cases, no IT specialist wants to hear this because it signifies a misunderstanding of how firewalls work, what they are for and whether they are necessary. An experienced user might not need one because they are extraordinarily careful or mindful of what they are doing. Again, for a novice or average computer user it is safer to have a firewall so they do not create more bloatware on their computer. At least, the user should be informed what a firewall is for and what it prevents, though this understanding only usually happens after they have experienced a virus or some variation of one.

 

“I don’t remember my password.”

Everyone has experienced this at some point in their lives, but the IT specialist doesn’t want to begin here. Recovering a password requires logging into an email, which the user might have also forgotten the password for. This spawns a cyclical event of password recovery, secret question recovery and being locked out of email accounts for hours on end. The IT specialist quickly becomes familiar with data scraping the entire internet for the user’s lost password. If the user’s memory is not reliable, they should keep their list of passwords hand-written, out of sight and somewhere safe. Though, many IT specialists have probably experienced users losing that, too.

 

“I use Internet Explorer.”

IT specialists know and understand that Internet Explorer has become the obsolete voice of internet navigation. Many only see it as a joke, or as a tool that has fallen very far behind when it comes to efficient browser software. It is known for being slow, unreliable and overall unstable: constantly failing or restarting without notice. For basic computer use, Internet Explorer is sufficient, though for the more experienced it is all but an obsolete program that has fallen behind the evolution of what it means to browse, work and play on the internet.

 

IT specialists have a special collection of experience and formal knowledge that allows them to see problems in ways novice computer users cannot. Their knowledge is connected, and the above statements can hint at solving a problem for someone. Not only do the above statements help fix problems, they help prevent new ones by helping the user understand and acknowledge how important certain computer programs are. Many IT specialists are truly helpful and knowledgeable, with hundreds of available opportunities to practice being more patient, understanding and kind when helping people fix their problems.