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by: John V. W. Howe
As a part of your retirement planning, have you thought about
a retirement job?
Continued income from a post retirement job can have a very
substantial positive impact on your retirement finances.
Let’s do a fast calculation and see the impact of an
after retirement job on your retirement finances. Let’s
calculate the amount of investment that you need to generate
a monthly income of $1,000 per month.
To do this we need to make a few assumptions. Assume the
income generation rate of your investments is five percent
(5%). Let’s assume that we are not going to take any
principle from your investments to do this. This will leave
the principle intact for use later after you have stopped
working in your retirement job.
The calculation is how much principle is needed to generate
$12,000 per year ($1,000 per month). The formula is principle
divided by the income interest rate ($12,000/.05 = $240,000).
I think you will agree that is a large amount necessary to
generate $1,000 of income per month.
However, a thousand dollars per month is not too large an
amount to expect to make in a retirement job and just look
at the impact that it has on preserving your retirement investment.
Three retirement calculators on the Net that include income
from work after retirement in the calculations are the AARP
Calculator, the Employee Benefit Research Institute Calculator,
and the MSN Calculator. The MSN calculator is especially easy
to use and is very visual so you can see the results as you
change the variables.
These calculators have a weakness since they ask for the
amount of annual income from a job after retirement, but they
do not ask for the age when that income will stop. They assume
the income will continue until death which may not be accurate.
We are all living longer, but most of us will not be working
at age 90.
These three retirement calculators are the more realistic
calculators on the Net. They help us calculate how much money
we will need to retire. However, they do not help us manage
our retirement funds after we retire.
Once we retire, the variables involved in calculating retirement
finances are greatly reduced. Unless Aunt Bess leaves you
an unexpected inheritance in her will, you know what your
retirement savings are that have to last your lifetime.
Unless inflation runs away during our retirement, the major
variables we have to consider are how much we budget to spend
each year, the amount we make from our retirement job, and
how long we choose to work at that retirement job.
A retirement calculator that will help you plan your after
retirement finances can be found at the Retirement Jobs Online
website (http://www.retirement-jobs-online.com). This calculator
will help you determine how long your retirement savings will
last under various different situations.
As part of your retirement plan, you can use the Internet
and work from home on your own schedule to generate the income
that will extend your retirement savings. Use the calculators
mentioned above to see the real impact income from a retirement
job can make on your retirement finances.
Thousands of people are using the Internet to make a full
time living. Why not use it for retirement work and make some
money to boot? This will be a nice supplement to your retirement
income from your investments and Social Security. And you
can have some fun in the process.
I wish you a great and productive retirement.
About The Author
John V. W. Howe is an entrepreneur, author, inventor, patent
holder, husband, father, and grandfather. He has been involved
in entrepreneurial activities for over 40 years. He founded
http://www.boomer-ezine.com, www.boomer-entrepreneur.com and
http://www.retirement-jobs-online.com to help Boomers (baby
boomers) become entrepreneurs when they retire.
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