Tag Archives: IRA

Reflections on Retirement

Retirement & Estate Planning, , , , , , , , , ,

Hundreds of readers have accepted this month’s money mission to focus on retirement, and this has confirmed to me that many people are very concerned about said aspect of financial planning. I’m sensing that some of you are becoming desperate about your present financial state of affairs and the bleak future that may be awaiting you.

Whatever your current financial position, I want to reassure you that it is possible for you to design a realistic plan of action that can help you to not only survive during your retirement years, but have a fulfilled life. However, pretending that you don’t have a looming problem is only going to ensure that your worst financial nightmare will become your retirement reality.

Let’s look at some important issues that you should consider in order to make proper preparations for this important time in life. Continue reading Reflections on Retirement →

Saving for Retirement in Jamaica

Retirement & Estate Planning, , , , , ,

Last week we examined the high cost of retirement and calculated the amount of savings that would be required to replace your income when you choose to stop working. Although cash is tight in today’s economy, if you delay putting aside some of your money for your retirement needs, it will only cause you more financial distress in the future.

Let’s look at some of the options which can help you to achieve your retirement nest egg targets:

Employer-Sponsored Pension Plans

Pension plans, also called superannuation funds, are retirement saving schemes which businesses voluntarily set up for their employees. Larger workplaces usually offer pension plans, whereby both the employer and the worker contribute funds to create a retirement lump sum for the employee. Staff members are required to put aside at least five per cent of their salary into retirement savings, and this figure would be matched by the employer. Continue reading Saving for Retirement in Jamaica →

Getting Real About Retirement Savings

Retirement & Estate Planning, , , ,

Are you currently saving towards your retirement? If your answer is yes, do you know how much money your pension plan will provide when it’s time to retire? If your answer is no, do you have any idea where you’ll get money to meet your expenses when you’re too old to work?

If you’re worried about your responses to the questions above, it’s time to take a serious look at saving for your future: it’s time to get real about planning for your retirement.

Many Jamaicans have a high propensity to spend, living for immediate gratification with little thought for the future. Some of us would not blink an eyelid to spend J$500 on a fast food meal, but would be hard-pressed to put away that same J$500 into a consistent savings programme.

Some of us have a ‘No Problem, Man’ attitude, where we figure everything will work out just fine eventually. We presume that our children will take care of us when we get old; that we will be able to work forever; or that one day the lottery will come to our financial rescue. Continue reading Getting Real About Retirement Savings →