Wealth protection – Few people can say they have done it; retired at thirty, my husband and I can. We grabbed the opportunity to retire at thirty with respect to wealth protection. We had discussed it, made the plan and put that plan into action. We could not control our excitement, we were really doing it. Shedding his two piece suit, my husband grabbed for his board shorts and flip flops, and I turned my nursing uniform in for a sun dress.
We sold everything we owned and left the “real world,” for an island paradise. We built an off-the-grid ocean front eco-lodge in the jungle of Panama. It was the experience of a life time. We spent the first year in our island home with only a phone, no computer, no television. I didn’t miss the dreary evening news, or the junk mail; we didn’t have an address. I knew we alone were saving the planet just by cutting out our junk mail.
The dictionary states paradise is a place of complete bliss, delight and peace. Was it a Paradise? Not quite. Truth be told, we just turned in one set of problems for others. Gone were the nightly telemarketing callers, and internet spam messages, but if it was speedy customer service you wanted, forget it. I spent afternoons in the hardware store line, just to buy a bag of nails. It was considered normal to wait two and a half hours at the bank to make a deposit. Local restaurants took twenty minutes to bring a menu and another twenty to get your drinks.
“You are on island time now,” locals would say. We were living the dream, so if you can’t beat them, join them. We soon fell into the island beat, our pulses slowed, and patience became an everyday practice.
The Good Life
With any new culture, you are going to experience some irritations. Island living combated those little irritations with experiences of peace and tranquility. The island’s beautiful weather, gorgeous views, fresh fish, fresh fruit and wonderful local people were easy to love. We surfed, hiked in the jungle, went snorkeling before breakfast and read books in a hammock. After a perfect day, we would gather on our oceanfront deck in the tropical breezes and sip coconut drinks at sunset, it was a great lifestyle.
Retiring for Good
We spent several years experiencing island living before our young daughter’s academics became a concern. We faced a decision to return to the US. We put back on the suits and uniforms and went back to corporate life in our forties. Our eco-lodge is still there waiting for us and we hope to return to our simplistic ways of life when we once again retire- for good.
Retirement Planning Issues And Solutions
Finding solutions for today’s significant retirement planning issues should be a focus on as individuals work to build financial wealth and wealth protection. Take a close look at the financial aspects of retirement planning. When should an individual retire? How does delaying retirement affect the future and present? The solution is to work with a trusted, comprehensive financial advisor regarding wealth protection. Take a look at a few common retirement planning issues commonly experienced.
The age at which a person retires will affect them in several ways. Normal wage earning diminishes at this point, meaning that they do not have the same level of income coming in. This is also the time when people begin to draw Social Security. But, take note that the laws have changed and the age at which a person retires will be dependent on their birth year. To find the specifics, visit the Social Security Administration’s website. When one reaches retirement age, they become capable of receiving full benefits from Social Security. Those born after 1960, can begin to see full benefits at age of 67, for example.
Early retirement is another factor to address with financial planning and wealth protection. If someone retires prior to the full retirement age listed at the Social Security Administration’s website, they may qualify for early retirement. This allows them to take partial payments from Social Security. Specifically, once they hit the age of 62, they are eligible for reduced benefits until they obtain your normal retirement age, as listed above.
Retirement Earnings Test
Prior to April 7th, 2000, individuals who worked during their retirement had to pay back some of the funds they received from the Social Security payments they were obtaining during retirement. This changed at that time and now, you are free to work, without penalty during your retirement, after you reach the age of full retirement. Those who are 65 to 69, for example, are able to go back to work and earn an income without facing penalty. Prior to that time, of every $3 earned, $1 had to have repayment to the government. Do note, in early retirement, individuals are still limited by how much they can earn in terms of wealth protection.
Delaying Your Retirement
Perhaps a person does not want to start collecting Social Security for some time after their retirement age. As mentioned, those who retire early have a reduction in their payments. The same holds true for those who retire later. If retiring later, payments will be higher. The amount received in benefits checks is dependent on the amount of money earned over a lifetime covered by Social Security. Note, though, that there is no boost in the benefits if an individual works past the age of 70.
In some situations, where the Social Security recipient has income, as well as are receiving benefits checks, the benefits may be subject to income tax. The higher the income is, the higher the tax on these benefits will be as well.
What is the solution to any of these issues regarding retirement planning? Primarily, know what the rules are and how they affect the individual, personally, based on the current Social Security laws and IRS laws. Second, collaborate with a team of professional financial advisors to help determine the right way to handle these issues.