Worried About the Future?
According to a recent survey, even the wealthiest
Americans believe they need more money to secure
their future. Individuals with a net worth of $1
million said they would need $2.4 million to live
comfortably, and those with $5 million said they
would need twice that much.
Everyone wants to feel financially secure. The
question is, how do you determine what it will take
to reach that point, particularly when it comes to
Run the numbers. The first step is to
much income you will need to live comfortably and
pursue your lifestyle goals. This means taking into
account a number of factors. For example, based on
your health and family history, how long do you
expect to be retired? How much should you expect to
spend on health care?
Most experts suggest that you will need 70 to 80
percent of your pre-retirement income in retirement.
This may be a good place to start, but a more
detailed calculation will give you a more realistic
idea of your needs.
Devise a strategy. Next, identify all
available sources of income and estimate the future
value of your savings. For example, what is the
value of your current savings and investments,
including retirement plans? How long do you plan to
receive income from part-time or full-time
employment? What role will Social Security benefits
play in your financial strategy?
Finally, determine how long your savings will last
based on your anticipated length of retirement,
desired lifestyle, and investment growth
assumptions. Do you need to adjust your portfolio in
order to meet your needs?
Regardless of your net worth, planning for a long,
comfortable retirement can be intimidating. Taking
the time to map out a personalized strategy might be
the key to funding the lifestyle you've always
As the holidays
approach we can often get caught in the rush of
things. It is important to take the time to enjoy
the special moments with family and friends. Instead
of getting lost in the shuffle of meaningless gift
giving to those people who have everything or can
buy themselves what they want, when they want it.
Consider giving an “experience gift”—share an
evening over a nice dinner in your home or tickets
to a show or event that you’ll enjoy together. Or
make a donation in their honor to their favorite
charity. Make sure to carve out a little time to
reflect on the year in review and prepare for the
new year. Happy Thanksgiving!
Time to Share. Create a Buzz. This holiday
season, Interfaith Social Services invites
you to join them for some Holiday Soul. This
year's event will take place on Thursday, December
1st at 6:30 p.m. at Lombardo's in Randolph. There
will be a reception, silent auction, dinner and
dancing. For more information contact Bettyanne Lang
Interfaith Social Services has been helping people
on the South Shore since 1947. Their programs reach
out with food, clothing and counseling.
|The $300,000 Baby
Raising children can be costly. A recent study found
that families earning $70,200 or more will spend a
staggering $269,520 to raise a child through age 17.
This figure is a composite average, so it could cost
some families much more. And this doesn't account
for college costs, which could easily add $50,000
for a four-year college education.
|What's News Got to Do with It?
Living in the Information Age means that investors
have a wealth of financial information at their
fingertips. The number of Web sites, message boards,
and Web logs keeps multiplying, in addition to TV
and radio talk shows and the more traditional
newspapers and magazines.
Financial literacy is crucial, and investors need to
follow the market trends and economic issues that
affect their portfolios. However, it is often risky
to make investment decisions based solely on reports
from the mass media or insight gained in an Internet
|End of the Greenspan Era
In the American political landscape, where eras
usually last no longer than eight years, the
equivalent of a visit by Haley’s comet is about to
occur. For only the fourteenth time in history, a
new chairman will assume the helm of the Federal
In January 2006, the revered but also controversial
Alan Greenspan will retire after nearly 19 years
with the Fed. Despite the fact that President Bush
has already appointed his likely successor, Ben
Bernanke, it is unlikely that anyone will truly be
able to fill Greenspan’s shoes for years to come.
|Life Insurance Checkup
Although few people would argue about the importance
of having life insurance, most do not have a clue
when it comes to the appropriate amount of coverage.
A recent study revealed that only 13 percent of
Americans carry the recommended amount of life
insurance coverage based on their income.
It's not unusual for people to buy a life insurance
policy and then all but forget about it. But this
could be a big mistake. Changes in your personal and
financial situation may necessitate a change in your
coverage. By reviewing your life insurance policies
on a regular basis, you can help ensure that your
coverage is in line with your financial needs.