New Ideas About Retirement

The very concept of retirement is flawed. It is based on several false premises. First is the premise that at a certain age you are no longer able to provide economic value. That is clearly nonsense as shown by the many millionaire entrepreneurs and business people in the sixties, seventies and eighties. Yes, we generally get weaker and lose some abilities as we age. But there are seventy-five year-old retirees playing tennis out there, and anyone who can still think and move two fingers can do what I'm doing for a living.
Another false premise is the whole "golden years" idea. First of all, why wouldn't we want to enjoy life at every stage? Secondly, isn't this idea of finally relaxing and no longer working based on the assumption that we all have to work at jobs we hate all of our lives - jobs we need to someday escape? Maybe instead of concentrating on saving enough to quit it all, we should spend more time earlier in life choosing the right work.
I don't actually have many new ideas about retirement, because it just isn't a meaningful nor necessary concept. But there are parts of it that make sense. Two in particular come to mind, and both should be addressed without regard to retirement or age.
First, it makes sense to be prepared for a time when you cannot work. Saving and investing part of one's income accomplishes this, but there is no need to call it a retirement account. After all, you might be in a devastating car wreck at 29 years old, or you might be healthy and making a good living at 89. Age is certainly not the only determinant of when you might need a non-job income to live on.
In fact, the idea of retirement lulls people into the assumption that it is only in old age that we require or benefit from this kind of "survival preparation." It might make more sense to have a plan for the loss of job or self-employment income at any age. At the present time there are millions of people in this country who are unemployed, and I'll bet that many of them wish they had made some preparations for that.
The second thing that makes sense about retirement is the idea of having the time to do what you want. Even if you have a job you love, it could be useful to have the time to pursue other interests or to explore other aspects of life. You might want to travel the world, for example, or help build a hospital in another country. A source of income that doesn't require you to work makes for a lot of freedom and creative possibilities.
Of course the concept of retirement isn't necessary at all for this. In my own case, I often took "mini retirements" from jobs to travel or write or pursue other interests. All I had to do to make this possible was to save money and keep expenses low. There are ways to do this throughout life, and it really doesn't make any sense to put off some things until you are old. Climbing mountains (one of my interests), for example, is safer and perhaps more enjoyable when younger.
The concept of retirement may very well bankrupt our country, given the impossible demands that are coming on the social security and medicare programs. It doesn't make any sense to remove the productive capacity of a person from our economy and suck off the production of others to make it possible for that person to play bingo and watch television for years. It's bad for the recipient (those who retire die much quicker on average), and is a double hit on the economy. Furthermore, Social Security never has been a retirement fund since nothing has ever been invested. It is welfare, so it makes sense to limit it to those who need it.
Let's just eliminate the idea of retirement. Let's help those who need help - old or not, prepare for times when work isn't possible - which can come at any age, and make space for "creative time" throughout life. None of these goals needs the idea of retirement, and it actually gets in the way.



Copyright Steve Gillman. For inventions, new product ideas, business ideas, story ideas, political and economic theories, deep thoughts, and occasional free gifts, visit The New Ideas Blog at: http://www.999ideas.com/blog

Ideas About Retirement Planning!

It is normal to think about retirement, have some doubts and concerns, when one nears that age. Some might even start thinking of retirement early. These days with working lives being so intense and hectic, retirement is welcomed for the time it brings to relax and enjoy. On the other hand for people who like to be occupied all the time, retirement can bring in doubts regarding how to spend one's free time. All these are a part of retirement planning. And it is a must to start thinking about retirement planning while one is still employed and working. Especially it is advisable to be clear about the financial aspects after retirement, about having a specific financial plan.
Even if one has pension plans, one cannot wholly depend on it to meet all your expenses after retirement. In many cases, many government employees have to run around offices to secure their pensions. Moreover for people employed in the private sector or for that matter freelancers, one should have an individual financial plan to fall back on after retirement. And this process of financial planning should not begin just before your retirement, as many think of doing. Rather retirement planning should begin very early on in your career. You may sometimes feel that retirement planning is a very long process and requires a lot of planning and analysis. It is true that this is so but with a few important steps the process could be eased for one's benefit.
The first point in retirement planning that is advised by everyone, is to start saving early. So not wait till late to start saving as you would have spent half of your earning age by then. It is advised to start saving right from the beginning of one's career. And this savings will include daily financial planning. It will also include following a systematic monthly budget so that you avoid unnecessary expenses. Even if you cut down on your expense now, this will help you save for later times and spare you the monetary problems then. You can also try some retirement plans like Roth Ira in US. This kind of plan helps you decrease your taxes on the savings kept for retirement.
An important thing to keep in mind is to estimate one's expenses after retirement. If one has a rough estimate of one's expenses, daily and major spending, then it becomes easier to save better. If you have an idea of how much you may spend, then it will not be monetarily burdensome for you at that time, as you already would have savings to pull you through. It would be strongly advised to have a nice health insurance policy. Retirement age brings health problems and you will require extra money to bear such expenses in case they turn up. You should also try to take good care of your health to avoid such expenses.
With retirement one gets ample amount of time. Some daily activity or physical exercise goes a long way to insure good health. In this way you will be occupied and also lead a healthy life. This will also help you not to worry about medical expenses!



For more information about setting up or managing your own Roth IRA, visit http://www.yourrothiraguide.com