As if we needed more proof, here's more evidence that having a Plan B is no longer an option.In a recent USA Today article entitled, "The basics, some extras, savings: You need $150,000 a year" it clearly lays out the need for companies like Yoli to emerge in the marketplace to help people out from all walks of life.Click here now to read the complete article.Here's an excerpt:Feeling the strainAnd it's not just the lower-income consumers feeling the strain. Three groups are experiencing higher rates of financial struggle: those with incomes between $100,000 and $150,000, those aged 18 to 34 years old, and women.According to this year's "How America Shops" survey, it now takes an income of more than $150,000 to be able to afford the basics, some extras and to save, too.As for the once-coveted 18- to 34-year-old market, it is now the demographic struggling the most when it comes to buying power.In addition, about 75% of women say it's important to get the lowest price on everything they buy, up 12% points from 2008. In this group, 68% are using coupons regularly and 45% are only buying items on sale.Since the financial crisis, retailers have employed heavy promotions, perhaps unintentionally cementing these shopping behaviors."Retailers have trained women to never pay full price and take pride in being a smart shopper," Corlett said. "It's a real struggle to sell anyone anything at full price."Because price has become central for decision-making, some brand names will suffer, particularly with women shoppers, Corlett said. Some 67% of women said that trusted brands are not worth paying for and they are pausing to consider whether it's a smart use of their money."It's an income issue, but it's also a value issue," she said. "We have lost that mindset of we have to buy, buy, buy,... we've built in a lot of push back. Retail sales will be up, but people aren't buying everything they want, they are buying what they need."As a result, retailers need to ask themselves: can they afford to take price increases if they are selling to a shopper that can barely afford the basics?"Frivolous is out," she said.
It's not easy to figure out how much money you should plan to withdraw from your savings each year. A traditional approach is the so-called 4% solution. It requires you to start with a 4% withdrawal from your nest egg when you retire and increase the amount each year only by the rate of inflation.
Not everyone agrees with this strategy, but it gives you a plan you can rely on and hopefully not outlive your assets. Depending on your health and family longevity, the 4% withdrawal may be adjusted up or down based on how long you want your savings to last.
It also can be adjusted annually depending on the market and your need. The less you can draw down, the longer the portfolio will last.
Once you have a strategy, you can come up with a stable stream of income by creating a laddered portfolio of CDs, bonds and Treasury securities that have different maturity dates. This can provide a predictable cash flow and minimize the potential for losses caused by interest rate volatility.
But a ladder will not likely earn a 4% return on your savings. To help supplement your retirement savings, you also may consider investing some of your money in a conservative asset allocation fund, which is a mix of dividend-paying stocks and bonds, with the emphasis on bonds.
If your expenses will exceed 4% of your savings you should take a close look at your needs and see if any expenses can be reduced.
And don't forget about taxes. When you reach age 70A? you will be required by the IRS to withdraw a portion of retirement account assets. For some retirees the required minimum distribution can be substantial and bump them into a higher tax bracket. If you think that is a possibility you can talk to your tax adviser now about ways to help keep you in a lower tax bracket.
Congratulations on planning for your retirement. Failing to plan is planning to fail.
SnackCloud? is a premium online retailer for targeted nutrition. We sell premium Yoli & Alkalete products you can't find at your local supermarket.
Use and distribution of this article is subject to our Publisher Guidelineswhereby the original author's information and copyright must be included.
View the original article here
Hiç yorum yok:
Yorum Gönder