How to Retire, In Style, That Is?...

Do you know that to retire, in style, isn't a given? It's a goal, a plan.

Don't wait anymore to plan it. Plan now and do according to your plan.

By the way, have you thought of how to retire? In style, that is?...

Style here doesn't mean expensive penthouse, flashy big car, exotic holidays, designer clothes...

Retire in style is to live a life of sheer comfort, with all your needs and wants taken good care of, by enough retirement savings you've accumulated.

The main gist is that you have enough money that can last as long as you do. That in all the years of your retirement, you won't lack money to fund your daily and monthly expenses.

(Note: Experts say you'll need 60% to 85% of your gross household income today to sustain the same lifestyle after you retire. That means, the higher your income now, the closer you're to the lower end of that scale)

How do you get to that pile of money that's considered ENOUGH?

Well, it needs planning; not just decide at what age, what place and what to do.

You need to take a hard look at your lifestyle, resources and a whole bevy of factors that you tend to take for granted while you're working.

And most deal with money issues. A shock to you, huh?

Here are the steps to get you started:

- Choose a date you want to retire

- Determine the annual income you desire when you retire, in today's dollars

- Estimate your lifetime average inflation rate

- Calculate the expected average rate of return on your investments before and after retirement

- Determine the current market value of all your investments (including regular accounts, IRAs, 401k plans)

- Make an estimate of any pension benefit

- Make an estimate of future Social Security benefits

Once you've all these with you, you can estimate how much you need to save per year, to get you the desired amount when you retire, for you to enjoy a good life.

You got the steps, the next thing is to know how to go about earning and accumulating this desired amount.

1. Save, save, and save. The earlier, the better. No rocket science here. When you start young, you've time on your side to allow your money to grow, through the power of compounding, over time. I suggest a 401k savings plan to start your savings rolling.

Your employer may match your contribution from 50 cents on the dollar up to 6% of your pay. Let's say if you contribute 6% from your paycheck, your employer may match that by contributing 3% (that's 3% of your paycheck in "free" money, folks!). Grab the opportunity! It's a risk-free, untaxed way to get an immediate 50% return on your money - no other alternative investment offer you this!

OK, most 401k plans invest in high-cost, mediocre performing mutual funds. Yet, even that, the immediate return of 50% on your money in every year you contribute would take years to top, in anything else. What better way to lessen your savings burden, huh?

2. Strategize your investments smartly and wisely. You've to work out a balance in your portfolio mix of stocks and bonds, that can yield you long-term growths and higher returns bearing in mind that investing for retirement is a long-term goal.

You would want to shoot for the best growth; this won't be in bonds or bills over the long haul. So don't keep bulk of your money there though it's less risky and a safer venture. You should put half or more of your money in stocks or stock funds.

Study their records over time to that of the S&P 500 index and each other. For 5, 10 year-periods, most funds will be below the market. Invest in the fund that comes closest to the S&P 500 average. If your savings plan offers a stock index fund, take that because an S&P 500 index fund is invariably better than a managed stock fund for the long haul.

3. Get a high paying job - investment banking; sales position in high-ticket industries, like many high-tech enterprise software companies; engineering (software development); bio-tech and other technical positions. You get paid extremely well and could be a quick path to accumulate your wealth, for a styled retirement.

However, the trade-offs are pretty scary - the hours are a grind, work's plentiful, and the target's unreasonable and unattainable.

But remember you goal: get in there, work hard and bank in the money

4. Don't overspend. That's hard to keep, I know. But come to think of it, isn't it better than incuring debts? Keep a budget. Track your expenses. Set goals for saving and celebrate when you meet them

5. Get out of debts! Credit card debts, especially. Debts disrupt and delay your plans to accumulate the amount you desired for your retirement!

Due to her strong yearning to retire early in life, Cecelia Yap has been researching on the subject of retirement. She has found the most "viral" way to grow her retirement nest egg and you too can do what she does, at My Passion.