Planning For The Dream Retirement
Retirement planning is a very important thing to do in every single American’s life. Whether you want to believe it or not, if you do not plan to save money you will not have a great retirement. Social Security will only take you so far, and many companies do not have pension plans anymore. With that being said, each person is more and more responsible for their own retirement savings.
Now that we know we have to do things on our own, we must think of a plan for retiring in the great state of Vermont. If you have never been to Vermont to fall it is a beautiful place, but we will get back to Vermont later, as for now we must talk about retirement savings and strategies.
Retirement Saving Techniques
Most people think retirement savings is throwing a few dollars in a savings account every month. While this is good for some of your money, you need to it invest more aggressively in order for your funds to last throughout your retirement years. If you can save at least 10% of your income you are off to a good start. This is where people than get a little lost.
Unless you are only a few years away from your retirement, such as 5 to 10 years, they really should have a majority of your retirement funds in some court some sort of stocks or mutual funds. The reason for this is the rate of return that these investments will give you. While there are some down years, and many of late, over 20 years there has never been a form of investment that beat stocks. Not bonds, CD’s, or anything.
401(k) Plans
So now we’ve decided that we must have some stocks as for your retirement planning, it is important to invest them in the right places. If your employer offers a 401(k) plan, that is a great start. Often the fees are manageable and investments are rather safe and not too extreme. A good growth or value fund is a good choice for any 401(k) plan.
If you do not have a 401(k) plan or 403B plan they should consider an IRA or Roth IRA. Even with an IRA, be sure to check that the annual fees are not more than say half a percent or so for whatever investment you put in them.
Pay Retirement Accounts First
While those are the basic strategies most people know of, or like to talk about a few unique strategies for saving for your retirement. First, always try to pay your retirement account first. If it never reaches your hands you can never spend it. You can have a separate account such as an IRA or other investment is taken out via direct deposit from your paycheck. The key here is to set aside a set amount each month that you can afford to fund retirement. Even if it is only 100 or $200 a month, that amount will add up over time and will be taken directly from your paycheck, therefore you will never see it and be able to spend it.
Collect Savings Bonds
Another useful strategy to employ is instead of asking for gifts on your birthday or Christmas, start asking for savings bonds. People get you 50 or $100 bonds it will add up over time. Also, the interest accrued on those bonds will also be paid out what you cash the bonds in. If you do this for 5, 10,20 or even 30 years you have thousands and thousands of dollars that she never would have had before.
Let’s face it, did you really need that tie, clock or other useless gift you got. Probably not and in the long run you wish you would have had some savings bonds instead. Many people do this for children in order to help them save, but I think it would be much more beneficial if people started doing that to help fund their retirement accounts. So basically next time someone asks you what you what you want for your birthday or Christmas, just say some savings bonds.
How Much To Spend During Retirement
Many people get to retirement and really have no budget in mind. This is a fatal error; one really should know exactly how much they can spend each year without hurting the investments and allowing the principal to get too low. A good rule of thumb is to withdraw around 4% of your initial investment annually, but keep the rest of the principal in your retirement account untouched. That way, your principle should still grow if you can get an annual return in excess of 4%, which should not be very hard and most years.
Stocks and mutual funds average over 8% annually over the long term and even if you mix in a few low cost and low return bond funds, you should still be able to get that 4%. Furthermore, if you invest in many stocks that pay dividends those also pay money annually to their shareholders. That can add up to a decent amount.
If your original nest egg for retirement is not that big, perhaps investing that amount in an annuity would be more beneficial. Be very careful of any fee involved, but basically with an annuity you give an insurance company or investment firm all your savings and in turn they will guarantee you an annual payout.
Now, there are many different forms of annuities and we will not get into all the details here, but be sure to go over all the details before signing any annuity agreement. The reason for doing this is that the annuity will also supplement your Social Security income and together you can have a very nice income during your retirement years.
Retirement Planning Companies In Vermont
Morgan Stanley
If you’re looking for a company to manage your funds during your retirement days or even before during your working days, and perhaps you should look into Morgan Stanley. They offer quality investment advice and listen to their clients’ needs as well. At Morgan Stanley, they value long-term relationships and will help you plan for your retirement.
Pathways Financial Advisors
Another quality Vermont financial planning firm is Pathways Financial Advisors. They offer quality and affordable investments to their clients with outstanding customer service. If you live in the Burlington Vermont area be sure to give them a call and schedule an appointment to discuss your needs with them.
Edward Jones
Another great company that offers great financial services is Edward Jones. You will be paired with just one person when dealing with Edward Jones. They have a one-to-one client relationship as each employee services to a certain area. That way the person becomes very well-respected and conformal quality relationships with their clients. Edward Jones is also known for providing affordable low cost investments for all their clients.
Why Retire In Vermont?
Now that we have talked about how to plan for retirement, how to keep your money during retirement years, and finding who can help you manage your finances, we should probably start talking about why Vermont is a great place to retire.
Sitting next to New York in the northeastern part of the United States, Vermont was the 14th state to join the union. Originally founded by Native Americans, Vermont also borders New Hampshire and is just an afternoon drive to the major cities such as Boston and New York City.
Beautiful Fall Leaves
With all the trees and elevation changes Vermont to have to offer, the fall is an amazing time to drive, hike or live in Vermont. The cool fall nights bring a beautiful mixture of yellow, red, and orange leaves that glitter the landscape for miles to see. It is hard to put into words the views from some of the higher elevations, the people that live here and people that vacation here say there is nothing better in America.
While many of the colors start in September, they often peak later in October, as the climate starts to cool down for the year. One of the great reasons to retire in Vermont is their mild summers combined with beautiful snowy winters. Skiing and snowboarding are great activities many people do in the winter here. There are many slopes within just a short drive of most of Vermont, so it is not overly difficult to find a place to ski.
Education, Health & Safety
Various studies have listed Vermont as the nation’s smartest state. They have quality elementary schools, higher education, and programs available to help people of all backgrounds prepare and do well in school. Education is a major factor in many Vermont citizens lives and they do not take it lightly, as they know it is one key to success.
Many other studies have shown Vermont to be one of the healthiest states in the nation. While there are various reasons, it is obvious that Vermont takes pride in the quality of life. As a retirement years near, it is important for people to take care of themselves. In Vermont, there are many great hospitals and health-care facilities that play a role in helping retired people of all ages with their needs.
With a great educational and health-care health care system it is no wonder many people want to retire in Vermont. However, it is not the only reason to retire in Vermont.
Safety is another very important issue with the citizens of the state. The crime rate in Vermont is very low compared to most areas of the country. That gives people the peace of mind to sleep better at night and perhaps one reason they are healthier. Many times people take safety for granted until it is too late, but in Vermont people really do have to worry less about being safe with such a low crime rate.
Cities To Retire In
Burlington
Burlington is a great city in Vermont that many people would love to retire. The largest city in Vermont, with only about 40,000 people, it is the home of the University of Vermont. This great college offers many jobs and cultural events to the people the city.
Forbes magazine listed Burlington Vermont is one of the prettiest cities in 2009. As we talked about earlier all Vermont is really beautiful and must’ve been hard to just come down to one city in Vermont to give them this award.
Overall, while this is the biggest city in Vermont, it sure does not feel a big city, with it’s home town feel. While it has many jobs and opportunities for people, there is much of a college atmosphere within the city that gives off a great vibe.
Montpelier
Montpelier is the capital of Vermont but it only has about 8000 people. This makes it the smallest capital of any state in the country. Just because a small does not mean there’s nothing to do here though.
It was established the capital in 1805 and the small town has many historic shops, landmarks, and other places to visit year-round. If you’re tired of the hustle and bustle of a major city, this would be a great place to wind down and relax. It is also home to another college, the Vermont College of Fine Arts, which provides culture to the city as well.
Rutland
Rutland is the second-largest city in Vermont. This small town is home to roughly 15,000 people and is listed on the National Register of Historic Places. It has many things in common other cities located in Vermont. The beautiful landscape, historical aspects, and wonderful people make Rutland a fine place to live.
While those three cities are listed as great places to live, please do not overlook the smaller towns and rural areas of Vermont. There is much undeveloped land for sale, and if you want to live privately, Vermont offers many opportunities to do so. While is not very populated, this state is just a few hour’s drive from huge cities on the coast.
Get Packing
So once you’ve planned for retirement your whole life and finally made it to your amazing days, perhaps settling down a Vermont will be right for you. If you put a high value on health care, education, low crime, an love amazing views, Vermont is the place for you.