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Picture #2- U.S. GAO - Key Issues: Financial Security for Older Americans

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Picture #2- U.S. GAO - Key Issues: Financial Security for Older Americans

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In this picture is give a pie graph on who over 55 and older and who on plains for retirement, who have some , and one slot for people who don't have plains or saving at all

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Picture #1 -Financial Security In 7 Easy Steps

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Picture #1 -Financial Security In 7 Easy Steps

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In this picture, you get 6 steps plus a little extra for more info, this give you a quick picture of Financial Stability and how to to achieve it to make your life a lot easier.

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Website #4- 3 things you must do to achieve financial security

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Website #4- 3 things you must do to achieve financial security

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In this article when reading you will learn 3 ways to achieve financial security. It has three 3 way, live below your means, if your spending every sent your not financial security, you want to spend way less, for you are financial security your self for retirement. Also you want to stay on the course of your plain, it very hard to stay on the plain, but this well make sure you are good for retirement

The reason i picked this article to read and have others reading it. They is straight to the point and tells people the real facts people don't want to really hear. This also helps people really quick and learn how to financial secure them self and helps them retire better and safer for there not stressing when it comes to it.

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I'm in my 20s, just starting a new job and I really want to get on the road to financial security. What's the best way to begin? --B.P.

For most people, holding down a job and earning a paycheck is pretty much indispensable for achieving financial security. So in a sense you've already taken the first step toward your goal.

But work alone won't do it. The security that a paycheck provides is, at heart, temporary. It lasts only as long as the job lasts. To attain financial security that won't disappear if your job does, you also need to turn your income into wealth.

So how do you convert the earnings from your job into savings, investments and other forms of wealth that at the very least can help you better weather life's inevitable ups and downs and ideally afford you with more flexibility and choices in life as well as a measure of financial independence? Here are three ways:

1. Live below your means. This may not be a very welcome message in a world where immediate gratification is the rule and where lenders are falling over themselves to shower you with loans if that's what it takes for you to live the lifestyle you want but can't afford. But if you spend every cent you make (or more), you'll never achieve true financial security.

Which is to say that, one way or another, you've got to save on a regular basis. My suggestion: Start out with a goal of saving at least 10% of your income each year and, as your income rises, boost that figure by a percentage point or so each year until you work your way up to 15%. Follow such a regimen over the course of a long career and you can end up with a six- or even a seven-figure nest egg by retirement.

The most effective way to ensure you hit your savings target is to put your savings on autopilot by signing up for a 401(k) or similar workplace retirement savings plan that automatically deducts money from your paycheck and puts it in an investment or savings account before you get a chance to spend it. Such retirement savings plans also offer tax-advantages that can leverage your savings effort. If your company doesn't offer such a plan, you can sign up for an automatic investing program that transfers funds from your checking account to an IRA account or even a regular taxable investment account at a mutual fund or other investment firm.

Calculator: How much will I need for retirement?

As a practical matter, it's also a good idea to gradually accumulate three months' worth of living expenses in a savings account or money-market fund in addition to your other savings so that you can cover emergencies or unanticipated expenses without dipping into investments you're holding for the long term. The point, though, is to get into the habit of saving on a regular basis. Otherwise you run the risk of finding yourself on a paycheck-to-paycheck treadmill that makes it difficult, if not impossible, to build real wealth.

2. Keep it simple. Read the financial press or listen to investing pundits, and you get the idea that to be a successful investor you've got to invest the money you save in a dizzying smorgasbord of investments, the more complicated and arcane the better. But do you really have to own expensive fixed indexed annuities that purport to offer the upside of stocks while limiting the downside or a "sector rotation" ETF that hopes to enhance results by moving in and out of different segments of the market? I think not. If anything, the more you expand into niche investments and far-flung areas of the markets, the more you run the risk of "di-worse-ifying" rather than diversifying your portfolio.

Asset allocation: Fix your mix

A more effective approach: Build a straightforward portfolio of broadly diversified, low-cost index funds and ETFs that jibes with your tolerance for risk and that allows you to participate in the long-term gains that the stock and bond markets have historically offered. And once you've created a stocks-bonds mix that's right for you, you should largely leave it alone except to rebalance periodically to restore your portfolio to its original proportions.

You can easily create a simple-but-effective portfolio on your own by revving up this risk tolerance/asset allocation tool. But if you're not comfortable doing this on your own, there are a number of low-cost advisory services that can build and manage a portfolio for you for roughly 0.5% a year, if not less.

3. Stay the course. Getting on the road to financial security is important. But it's even more crucial to stay on it. Inevitably, there are going to be times throughout your life when you may feel tempted to take the exit ramp, so to speak. Faced with a job loss or a period of unexpectedly high living expenses you may feel pressure to abandon your savings regimen or even dip into the savings you've managed to set aside.

Similarly, extreme market volatility or a market crash might lead you to wonder whether you should jettison stocks from your portfolio in favor of less volatile investments.

Or given the ever-present parade of pundits making predictions about what interest rates, the economy or the markets are going to do and recommending investments that can help you capitalize on their prognostications, you might feel the urge to adopt a more active investing approach, bailing out of investments that are supposedly about to fizzle and moving into ones ready to sizzle.

But when you feel most compelled to abandon your long-term strategy is precisely when it's most important to stick to it. Those are times you have to call on non-financial attributes like resourcefulness and perseverance, which can help you find ways to continue to save even as other financial demands make it difficult or adhere to your investing regimen during times of severe market stress.

In short, many times achieving financial security isn't just a matter of making the right financial decisions. It's having the grit and determination to stand by those decisions in challenging times.

I'm not saying that following these three steps is the only route to financial well-being. Nor can I guarantee that by following them you'll achieve the economic security you seek. There are too many risks, uncertainties and unknowns in the real world to offer any such ironclad assurances. But I can say that if you don't follow a plan along the lines of the one I've outlined above, the road to financial security will likely be a lot bumpier, and you'll run a higher risk of not reaching your destination at all.

More from RealDealRetirement.com

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CNNMoney (New York) First published January 6, 2016: 10:11 AM ET

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3 things you must do to achieve financial security

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For most people, holding down a job and earning a paycheck is pretty much indispensable for achieving financial security. So in a sense you've already taken the first step toward your goal. But work alone won't do it. The security that a paycheck provides is, at heart, temporary.

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Website #3 - What Is Financial Security, and How Do You Get It?

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Website #3 - What Is Financial Security, and How Do You Get It?

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When reading this article, your probably asking your self why would you pick this. Some people have many question in there heads. So this article helps people on how to get different Financial security there is many different options when you look up and it good to know what one you picked. They also go over saying you should start saving early even if your 20, a lot of people think it a joke and they don't need to start putting money away at young age they need it now.

The reason i picked this article to read and have others read the article. A lot of people have many question on Financial Security, so this article group a lot of the questions people have and answers them in detail for you to understand.

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Financial security means different things to different people. To some, it may mean having enough money to cover all your bills, save for retirement and then have some left over. To others, it may mean earning a six- or seven-figure income, maintaining a robust investment portfolio and owning several real estate properties. Regardless of your interpretation of what it means to be financially secure, it's likely on your long-term list of financial goals to achieve financial security.
What Is Financial Security?
To put it simply, financial security means having enough money to fund your lifestyle, as well as work toward your financial goals.

While financial security can be very tied to the numbers - how much you earn, how much you spend and how much you have saved - it also takes into account how you feel about your financial situation. Do you feel secure in your earning power and confident that you'll be able to cover any unexpected expenses? Would your emergency fund float you for six months to a year should you lose your job or become too ill to work?
Common Obstacles to Becoming Financially Secure

According to the Federal Reserve Bank of New York, household debt in America totaled $13.54 trillion in the fourth quarter of 2018. While debt may be the new "normal," it's a major obstacle in achieving financial security.

Here's why: If you have debt, especially high-interest credit card debt, you're likely paying upwards of 16% APR each month. A few exceptions to the no-debt rule can include mortgages, which experts generally agree to be a good investment, and student loans. While ballooning student loan debt is another financial concern, investing in your education can actually have the opposite effect, since it can boost your earning power in the future.
How to Get Financial Security: Make an Emergency Fund
To achieve financial security, start by setting up an emergency fund. Experts suggest tucking away at least enough cash to cover all your bills, living expenses and debt payments for at least six months, or even up to a year. Not quite there yet? Start with three months' living expenses and go from there.

If you're still not convinced you need one, know that there are a number of reasons to have an emergency fund. By having money stashed aside, you'll be able to avoid getting into credit card debt, better maintain your house and reduce stress. Plus, if you ever decide to leave your job, you'll have the financial means to take some time off in between jobs.
How to Get Financial Security: Save for Retirement
To achieve financial security, make saving for retirement a priority - and start early. If you have an employer-funded account, like a 401(k) or a 403(b), set up regular contributions as soon as possible. Don't put it off because you're in your 20s. The earlier you start saving for retirement, the less you'll have to put away, thanks to compound interest.

If you don't have a workplace retirement plan, there's no reason to skip saving. You can open a traditional IRA or Roth IRA on your own. However, contribution limits for these retirement plans are much lower than they are for 401(k) plans.

A good rule of thumb is to save 15% of your pre-tax earnings for retirement, but keep in mind that's only a benchmark. Everyone's financial situation is different. If your company offers an employer match, though, make sure you're at least contributing enough to get it. After all, it's free money.
How to Get Financial Security: Get Out of Debt

You'll never be able to achieve financial security if you have a mountain of debt hanging over your head. You know that Americans are now holding record levels of debt. But that doesn't have to be you - and it can't be if you want to be financially healthy.

If you have debt, come up with a debt payoff plan. You can do this on your own or with the help of a financial advisor. There are many different types of debt payoff strategies you can explore for your situation, from the snowball method to the avalanche method to debt settlements or credit card balance transfers. Once you've determined your strategy, get to work on paying off your debt. Don't skip a month. While you're paying off your debt, stop using your credit cards or accruing more debt.
How to Get Financial Security: Live Frugally
Living frugally is a cornerstone of financial security. This can be difficult to do, whether you're a high earner or living paycheck-to-paycheck.

But no matter how much you earn, you should create and follow a monthly budget. Limit your discretionary spending and save more than you spend. Following these simple financial practices will lay the groundwork for financial security in the future.
How to Get Financial Security: Boost Your Earning Power
Whether it's seeking out a higher-paying job, considering a move to a less expensive area or going back to school to further your education, there are several ways to boost your earning power.

Moving to a less expensive area is a viable option if you're working to improve your financial situation and you just can't seem to get ahead. You may live in an area that's simply too expensive, making it nearly impossible to get to a good spot financially.

Or perhaps boosting your income is a better option. Going back to school is also an excellent way to increase your earning power. You'll want to be sure you'll have the means to pay off any student loan debt though.
How to Get Financial Security: Earn Passive Income
If you've paid off debt, maxed out your earning power and are successfully living on a budget, you may be looking for other ways to build wealth. This is where passive income comes in.

Passive income is defined as earnings you make without your active involvement. You can earn passive income through rent payments on a rental property you own, the profits from an e-book you authored or even affiliate links on a blog you manage. Either way, passive income can be a great way to achieve financial security.
How to Get Financial Security: Create a Will
Drawing up a will likely isn't at the top of your list of fun things to do, but it's important. A will ensures that your estate - including your property, assets and any valuable family heirlooms - are properly distributed after your death. A will or estate plan also ensures that your dependents and family members are taken care of financially when you're gone.

Additionally, if you have children under age 18, a will is absolutely imperative, as it sets up legal guardianship for your children in the event of your death.
The Bottom Line
Financial security is a tricky term, but generally it just means being able to live the lifestyle you want. Being able to maintain that lifestyle in the event of an unforeseen hardship is also key. There are a number of steps you can take to achieve financial security. It isn't always easy, but with the right moves you can become financially secure.
Tips for Achieving Financial Security

A financial advisor can help you achieve financial security. Find one with SmartAsset's free financial advisor matching service. Answer a few questions and we match you with up to three advisors in your area. We fully vet our advisors, and they are free of disclosures. You talk to each advisor, ask questions and make a choice about how to move forward.

Knowing how much money you'll need to retire is key to financial security. Find out with our free retirement calculator.

Photo credit: ©iStock.com/everythingpossible, ©iStock.com/marchmeena29, ©iStock.com/Anchiw
The post What Is Financial Security, and How Do You Get It? appeared first on SmartAsset Blog.

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What Is Financial Security, and How Do You Get It?

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Financial security means different things to different people. To some, it may mean having enough money to cover all your bills, save for retirement and then have some left over. To others, it may mean earning a six- or seven-figure income, maintaining ... Continue reading ->The post What Is Financial

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Website #2 - Preparing For Retirement – The 5 Essential Questions

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Website #2 - Preparing For Retirement – The 5 Essential Questions

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When reading this article you will learn 5 different essential question you should be asking yourself when you plain on retiring. This question when reading them you would not normally think about them. Like i picked a few questions out, one is where do you spend extra money, another question is where do you spend your free time as of current. This ask user who are reading this article to think about what are you plain for your retirement.

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Knowing How To Ask The Right Questions Is Half The Battle When Preparing For Retirement

Key Ideas

1. Why dreams and goals matter more than money when planning retirement.

2. Six steps to knowing how much money you need to retire.

3. Don't make this critical mistake when planning for retirement.

4. Five ways to boost your income and seven ways to slash expenses so you can afford your dream retirement.

Traditional retirement planning has it all backwards.

You know the drill...

You sit down with your broker or financial advisor and plan your retirement on the assumption that having enough money is all that matters.

Sure, it's important, but it won't create a fulfilling retirement. You need to start the process somewhere else.

What's the most effective way to transition from career to retirement?

How do you make plans that are more significant than just money?

In this article, I'll give you a five question process that takes you step-by-step from fulfillment through finances so that you not only learn how much money is enough to retire, but you also connect your retirement savings to a plan for a fulfilling and happy next stage of life.

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How To Prepare For Retirement: What And Where?

There are tons of retirement planning books and courses, but very few focus on setting dreams and goals for retirement (the "what" and "where" questions). Instead, most of the information is about getting your finances in order (the "how much" question).

Yet, fulfilling your dreams and goals is what a healthy retirement is all about. It provides direction and connection, gives a sense of purpose, develops creativity, brings satisfaction, and builds a sense of fulfillment during retirement.

In other words, it's critically important. After all, who cares how much money you have if you aren't living the life of your dreams and excited to be alive each day?

"To accomplish great things, we must dream as well as act."- Anatole France

Even though most books downplay the "what" and "where" issues as secondary, we bring them front and center stage when it comes to preparing for retirement because these two issues play a doubly critical role.

They not only determine how fulfilling your retirement will be, but they also influence (to a large extent) when you will retire and how much it will cost. In short, you can't do serious retirement planning without first answering the "what" and "where" questions.

You've probably already taken baby steps with these questions by forming a vague vision for your retirement. Now it's time to fill in the missing pieces by getting detailed.

Related: Why you need a wealth plan, not a financial plan.

Sure, you intend on reading more and playing more golf during retirement, but take it a cut deeper. What are you going to do with the 2,000 hours a year you used to spend working?

You can only read so many books and play so much golf. How are you going to create a life filled with meaning that extends beyond tomorrow's tee time?

The important point is to be excited by what you're heading toward - not what you're leaving behind.

Yes, it's good to be done with "workin' for the man", but that excitement is only going to last for a month or two before the reality of a retired lifestyle settles in.

If you don't have something worth waking up for each morning, then you're setting yourself up for disappointment - a disappointment that's all too common for many new retirees.

Dreaming and planning for the next phase of your life can be exciting. It's like turning the clock back on your golden years to early adulthood where the world was your oyster and the possibilities were limitless.

Recapture that youthful spirit of adventure because you're freer now than you were back then. Your retirement is limited only by your creativity.

This is the time to rekindle forgotten dreams, long ignored values, and passions suffocated by career responsibilities.

Many people mistakenly envision their retirement as a winding down period, which is fine, if that's your preference. But the likelihood is reasonably good that you'll be spending 30 years or more winding down, which isn't everyone's cup of tea.

One alternative is to consider your retirement as the opening chapter in a whole new life adventure and see where that takes you.

Make a list of all the things you would like to do once you have more time:

What new contributions can you make?

What passions can you develop?

Where would you like to volunteer?

What new things would you like to learn about?

What new places would you like to see?

Where would you like to live?

What experiences would you like to have?

Now is the time to do these things, because if not now, then when? You're not going to get many more chances.

"You see things; and you say, 'why?' But I dream things that never were, and I say, 'Why not?'"- George Bernard Shaw

A key point during this brainstorming process is to refrain from editing your thoughts. Don't mortally wound them with practicality before they take their first breath. Just dream and trust where it takes you.

You'll have plenty of time later for the dream-stealers to re-organize and rationalize your dreams, so don't make the mistake of editing your dreams with rationality now.

No harm ever came from letting ideas take life, so accept them as they flow out of your head without any judgment and write them all down - no matter how zany and impossible.

You don't have to act on them, and you can always edit later.

After building your list of dreams, gather up your spouse and a favorite bottle of wine and share your dreams together.

One coaching client did this exercise and was shocked to learn that his visions of cross-country travel in a motor-home with a fly-fishing rod and backpack didn't blend well with his wife's dream to live in a downtown high-rise condominium near shopping and restaurants.

It's better to negotiate these issues now rather than after you've emotionally and financially committed to a certain path.

Don't be surprised if you find it hard to conjure up a new vision for your life after decades of career dominating your personal identity. I run into this obstacle frequently with my financial coaching clients, so don't feel alone.

Go easy on yourself and work with the process. Even when you imagine new roles in life that sound satisfying, it may be daunting to figure out how to get started and make the transition. Don't worry.

This is a perfectly natural response because you're entering uncharted territory. It's okay if the water appears murky at first. You have 30 years to grow accustomed to it, so just get started. Dream your ideal retirement lifestyle and write it down.

Figure out a reasonable next step and start there. Fine-tuning can happen later. The key is to work at it until you have something so compelling, you can't wait to get started. That's how you know you're on track.

"If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours."- Henry David Thoreau

Places to look for clues to your passions include current hobbies and recreation, fantasies, and dream careers that you always thought sounded ideal. Consider looking in the "help wanted" section to see what grabs your interest.

Go to the bookstore and spend hours browsing for the sole purpose of noticing what interests you.

Where do you spend your free time now?

Where do you spend your extra money?

What are your strengths that might be fun to develop?

What weaknesses would you like to overcome?

Talk to existing retirees who seem to be having a ball to get more ideas.

In short, make it fun and instill a sense of adventure. It's your life, and now is the time for you to live it.

The important point of this discussion is to have interests you're passionate about. Ending a career is going to leave a big void in your life to fill. You want interests that absorb you and motivate you to wake up early and stay up late.

For some, it could be volunteer work. For others, it might be a second career or serious hobby, and still others might discover their passion in foreign travel. The key is to find what it is for you.

If you would like help, then consider how our retirement coaching might be the perfect support system during this transitional period to sort out the issues.

Preparing For Retirement: When Is The Best Time?

Once you have a vision so compelling you can't wait to get started living it, then pick a date for when you'll turn this dream into reality.

Picking your retirement date is the "when" part of retirement planning. It's a necessary precursor to running the cash flow and income projection scenarios required for the "how much" part of retirement planning.

When you retire will affect how many more years you can save, how much longer your savings can grow, your expected pension benefits, and your Social Security benefit.

In short, much of your financial situation ("how much") hinges on your answer to "when", and also on the answers above to "what" and "where".

Only after you have answered the when, what, and where questions will you have built the proper foundation to accurately determine how much it will cost.

Preparing For Retirement: How Much Money Do I Need?

You've probably built a rough guesstimate of your projected retirement financials in the past.

Now that your retirement vision and date draw closer, it's important to put a fine pencil to tightening up the calculations.

You must determine how much your clarified vision for retirement will cost and how you'll afford it.

Related: Why you need a wealth plan, not an investment plan.

Completing a final check is important because pension plan rules, Social Security, and asset values have a remarkable tendency to change (usually in the wrong direction).

The last thing you want to do is quit your job and lock in your Social Security and pension benefits only to find out you were actually a few years and a few dollars short of achieving your goal.

What follows is a simplified version of the "how much is enough for retirement" question. For a thorough analysis covering all facets of "how much," read my book titled How Much Do I Need To Retire?

Below is a brief overview:

1. Budget:

Now that you're close to retirement, the "spend 70-80% of current income" rule of thumb should be replaced with real numbers.

Dig into your current spending and get real about how your spending will change based on your answers to the "what" and "where" questions.

Are you going to travel, play golf, and dine out frequently, or do you have some inexpensive hobbies that will absorb the bulk of your time? Are you going to downsize your home, move to Belize, or stay put?

Once you've estimated a retirement budget, you may be concerned if it's actually workable. Can you live comfortably on it? If you're not sure, then try test-driving it.

Now is a great time to practice organizing your life, downsizing, and living within the lower budget constraints if that's the direction you're heading. You still have the income from your job to bail you out if the whole plan is a mistake.

Not only will you build confidence in your budget when retirement day comes, but you'll also increase your savings for retirement due to the reduced spending.

"How much time he gains who does not look to see what his neighbor says or does or thinks, but only at what he does himself."- Marcus Aurelius Antonius

2. Consolidate:

Now is the time to round up all your 401(k)s, pension benefit statements, retirement plans, savings accounts, insurance statements, and other financial documents into one pile.

If this proves to be an onerous task, then it's telling you something.

You may want to consolidate some of these accounts for greater efficiency and arrange them into a methodical system. Consider automated deposits, electronic bill paying, and look into services that allow you to view all accounts from one location.
Related: Compare today's best high-yield savings accounts
By simplifying and automating your assets and record-keeping functions, you'll gain greater control, simplify the financial process, and free up time for enjoying your retirement.

3. Social Security:

Request a statement that shows how your monthly benefit is affected based on your expected retirement date. The general rule of thumb is the earlier in life you lock in benefits, the lower your monthly payment will be.

You may choose to wait longer to increase the monthly income, or you may have more than enough right now to begin living your dreams. Just make sure to research the alternatives before you commit.

Regardless of your chosen retirement date, it's a good idea to apply for benefits three months before you expect to begin collecting so you don't miss a payment. Mark the date on your calendar.

Also, consider using direct deposit so you don't miss a check while out traveling through the Amazon jungle or climbing the Himalayas.

4. Defined Benefit Pension Plans:

Now is the time to get intimate with all the nitty-gritty rules, timelines, and options affecting your pension plan benefits.

Similar to Social Security, your monthly benefit will be affected by when you begin. The longer you wait, generally the greater the monthly benefit.

However, an additional layer of complication exists in pension plans because you may have a choice between taking the money over time or in one lump sum.

Deciding which is best for your situation is a complicated formula involving expected lifespan, expected investment returns, personal goals, and other issues that may require the support of a financial coach or a fee-only financial planner.

5. Savings Withdrawal Rate:

Total all your retirement savings accounts including your 401(k). According to the experts, you can theoretically spend 3-4% of that total in the first year, and adjust for inflation thereafter.

There is much well-reasoned and well-supported disagreement on this subject. For the complete explanation, read " How Much Do I Need To Retire? " located elsewhere on this site, or you can use the 4% rule as a rough and dirty guideline for now.

6. Gap Analysis:

After completing steps one through five above, your answer to the "how much" question is simply a matter of adding up your income sources from items 3-5 and subtracting your proposed expenses from item 1 to see if there's enough.

If there's a surplus, then congratulations - you're a retirement planning genius and ready to embark on the next phase of your life secure in your income needs.

You can afford to chase your dreams assuming your budget calculations are reasonably accurate.

However, if you're like many who have more dreams than income, then this course can help you close the gap and secure your financial future.

Do the calculation now before continuing to read so that you know where you stand.

How Can I Boost Retirement Income?

Many people find calculating their retirement number a sobering experience. How much turns out to be not enough.

If you came up a little short, then fear not. There are many ways to close the savings gap and find that missing money, but it all boils down to two things - increase retirement income or decrease expenses.

Let's begin with strategies to grow the income side of the "how much" equation first, and then we'll examine the expense side of the "how much" equation in the next section.

1. Delay Retirement:

Every additional year you work is another year of earnings that can add to savings, and one less year of living that is paid for out of savings.

Additionally, delaying your retirement date could increase the monthly benefit you receive from both Social Security and your pension plan, further adding to retirement income.

Put all four of these factors together and the financial effect can be dramatic.

Try running various scenarios on your retirement income using later retirement dates to determine if this strategy can help fill the retirement savings gap.

2. Phased Retirement:

Maybe an encore career is in the offing for you. There are many social, emotional, and (of course), economic benefits to continuing to work after retiring.

Related: Why you need a wealth plan, not a financial plan.

The added income can go a long way toward lowering the savings burden required to make ends meet, and if you choose new work that you truly love, you might find it beats 30 years of endless free time.

Look at your income gap and decide if there's a way to earn the missing money that would also be rewarding and fulfilling for you.

3. Savings Withdrawal Rate:

Just because the expert consensus on first year savings withdrawal rates is 3-4% doesn't mean it's right for you. It's a generalized standard that by definition isn't personalized for your situation.

You might have a family history of early death, poor health, or an unusual skill for growing your investment portfolio at higher rates of return. See the book How Much Do I Need To Retire for alternative formulas, or take the complete wealth planning course here that includes alternative asset classes and strategies.

The difference can be significant and possibly enough to make up that shortfall in retirement income.

4. Convert Other Assets To Savings:

The diamond ring from your ex-husband that you never wear, the mink fur coat from Grandma, the boat that was used once in the last two years, and other valuable assets that are seldom enjoyed can all be sold off to boost your savings.

What valuables do you have that you don't need or use?

5. Convert Home Equity To Savings:

For many people approaching retirement, their home equity can exceed their savings. Converting a chunk of that equity into income producing assets by downsizing, moving, getting a reverse mortgage, or using various other strategies can close the gap between income and expenses.

For a complete listing of strategies to convert home equity into income producing savings, read 27 Retirement Savings Catch-Up Strategies For Late Starters. You'll also find many more tips in that article not mentioned here that can help you close the savings gap.

Each of these strategies alone, depending on your personal situation, has the potential to increase your retirement savings enough to solve the "how much" problem.

When you put them all together, however, they're a powerful set of tools that can substantially change the income side of your financial picture.

Now we'll look at the expense side of the "how much" equation.

How To Prepare For Retirement: How Can I Reduce Expenses In Retirement?

There are two sides to the "making ends meet" equation, and so far we have focused only on income. The other side, expenses, is at least as important, and often easier to solve.

The reason is because it's often easier to figure out how to live on $1,000 less per month (1,000 * 12 months = $12,000 per year) than it is to find an extra $300,000 in savings (300,000 * .04 percent savings withdrawal rate = $12,000 per year).

The two scenarios are mathematically equivalent in terms of balancing a retirement budget, but there are many more fun and creative solutions to reducing spending by $1,000 per month then there are ways to surface $300,000 to $400,000 in savings.

Yes, spending just $1,000 per month is roughly equivalent to the $300,000 in assets required to support that spending. Shocking, but true. It's known as the "Rule of 300".

Let's look at a few possibilities to chip away at the expense side of your monthly budget without diminishing lifestyle.

1. Move To A Lower Cost Area:

For people living in high cost areas where housing prices have soared, think about relocating to a lower cost housing market. Consider moving out-of-state or possibly to a new country.

The price differentials between certain housing markets can be enough to fund a significant portion of some people's retirement needs.

For example, $300,000 of equity harvested from your home reinvested at 7% produces $21,000 per year in income, and your expenses such as insurance, maintenance, property taxes, medical, and food will likely drop as well.

The savings can be substantial, and the new location could be even more enjoyable than where you currently live.

"The real measure of your wealth is how much you'd be worth if you lost all your money."- Unknown

2. Downsize Your Home:

For those who love where they live and want to stay in the same area, consider harvesting some of your home equity by scaling down to a smaller, low-maintenance, less expensive house.

This creates a double-win for your savings because you increase investment income while simultaneously reducing or eliminating certain expenses such as mortgage payments, utilities, maintenance, property taxes, insurance and more. Not to mention having less house to clean and care for.

3. Pay Off Your Home:

Retiring your mortgage before you retire from work can significantly improve cash flow and lower your risk of failure if your financial situation takes a turn for the worse.

One strategy to achieve that objective during the pre-retirement phase is to refinance your mortgage or increase your payments so the payoff date is the same as your expected retirement date.

4. Low Cost Leisure:

Golf and travel can be expensive (or affordable) depending on how you plan these activities.

You could spend an entire summer touring Alaska in a car or camper for the same cost as a two week cruise.

You can golf or ski for an entire season on bargain senior passes for the same cost as a few days at a high-end resort.

You can travel full-time, year-round, throughout the world for less than it costs to live an ordinary lifestyle in some areas of the United States.

Get creative and stretch those leisure dollars because recreational fun has little relationship to how much it costs.

5. Become Debt Free:

Interest paid is money wasted, and it's antithetical to your retirement lifestyle. You should be collecting interest as a retiree - not paying it.

Prepare for your retirement by paying off higher rate, non-deductible debts like credit cards and automobiles. Get in the habit of only buying what you can pay for right now.

Eliminating all debt is a simple strategy to lower your expenses without lowering lifestyle. Debt makes the banker rich - not you.

6. Eliminate Unnecessary Expenses:

Professional affiliations, second homes, sailboats, and extra cars are all examples of things that might not be necessary for your retirement plans and could reduce your expenses if they were eliminated.

Consider cutting the financial cord on adult children that are out of school and not disabled. They should no longer be financially dependent on you after their education is complete.

If your retirement budget is tight, then there's no room for excess of any sort. Eliminate all those unnecessary expenses now.

7. Revisit Your Insurance Needs:

As you prepare to exit the work force and enter retirement, your insurance needs will change. Things like disability insurance and life insurance may no longer be relevant and could save you money if eliminated.

Alternatively, you may decide to re-purpose your life insurance away from income protection and toward estate planning.

Similarly, to protect the assets you've accumulated, you may consider raising the liability limits on your homeowners and auto policies. Examine umbrella, long-term care, and supplemental health insurance policies.

In short, revisit your insurance needs to determine what's really necessary and appropriate. Your life is changing, and so should your insurance coverage.

In summary, there are many ways to reduce expenses without reducing lifestyle. The joy you experience in retirement is more a function of your attitudes and interests than your budget. It's about experiences, not stuff.

Get creative in how you reduce spending and you may find that "how much" is more than enough.

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What Else? Bonus Pre-Retirement Ideas To Consider:

Once you've solved the "what", "where", "when", and "how much" questions in preparing for retirement, there's one final thought to consider: what else?

What other strategies should you consider that can make a positive difference as you enter the home stretch to a life of freedom, fulfillment, and financial security?

1. Estate Planning:

If you die without proper estate planning, it could create unnecessary heartache for those left behind and needlessly waste a significant portion of your assets on taxes, attorney, and probate fees.

Have your lawyer review your will, trust, estate and gifting plan, account titling, powers of attorney, and beneficiary designations to make sure everything is up to date and appropriate for your stage in life.

You want to be certain that you and your beneficiaries are properly protected. Death is an absolute certainty with the only question being when. Best to get it done now, and get it done right (estate planning that is - not death).

2. Organize Necessary Documents:

When that fateful day arrives and you're incapacitated or dead, someone has to complete your affairs. Do them a big favor and organize all the necessary documents in one place so they don't have to stress about missing anything.

"Don't agonize. Organize."- Florynce Kennedy

If you choose to keep the documents in a safe deposit box, then keep a duplicate file at home for accessibility and an additional set with a trusted family member or attorney.

Below is some of the information that should be contained in this file.

Location of safe deposit box key and listing of what's inside the box

A master list of all financial accounts with account numbers, contact information, and addresses. Include everything on this list that produces at least one statement annually such as annuities, life insurance, investments, loans, etc.

Wills, Powers of Attorney, Medical Directive, Trusts, and other Estate Planning documents

Marriage certificate

Burial paperwork

Property deeds and automobile titles

Military discharge paperwork

A list of valuables and collectibles

3. Health Care Insurance:

U.S. Government Medicare doesn't kick in until age 65, so you may need to consider self-insuring if you retire before 65 and your employer doesn't extend health insurance coverage to retirees.

Even after Medicare begins, there are many costs not covered. For that reason, you'll want to investigate private "Medi-Gap" policies and build that cost into your retirement budget. You may also want to consider long-term care insurance and decide what's appropriate for you.

Learn the rules for Medicare and Medi-Gap applications and mark the necessary dates to begin on your calendar. Applying late may cause delayed benefits or increased premiums, so make sure you know the rules for your situation.

Health care is an extremely dangerous area of retirement planning because the cost of betting wrong can be catastrophic. Proper insurance devours retirement income, but no insurance runs the risk of destroying retirement assets.

If you underestimate health expenses, you may not be able to afford the quality care you desire, or you may use up a lifetime of savings in the process. There's no easy answer, so budget liberally in this area and hopefully you'll be pleasantly surprised.

In the end, always recognize that your future health and associated health care costs are unknown - and there's nothing you can do about it. Every retirement plan is fundamentally incomplete because of it.

4. Get Healthy:

There's no point in working a lifetime to save for your golden years only to die of a heart attack or other debilitating disease before you have a chance to enjoy it all.

The reality is you no longer have the advantage of youth to offset bad habits, so you must work hard to make up for the difference.

The human body is amazingly resilient and can bounce back from years of abuse when given proper diet, exercise, and rest. A strong health regimen can save you big bucks in health care costs, and it can add more years to your life while adding more life to your years.

5. Borrow Now:

While debt is best avoided for most retirees, there are rare circumstances where new debt can make sense, such as financing a downsized home or a new RV for traveling.

The reason it can make sense to do it now (before retiring) is because it will be easier to qualify while you still have earned income. You may be able to negotiate lower interest rates and better terms than if you wait until after retirement.

In other words, the general rule is to avoid debt, but special exceptions can apply.

6. Vacations:

Make a list of the areas you might consider moving to during retirement and use your vacation time while still working to visit them. Take the area for a "test drive" so you can see how you like it.

If you enjoyed it in the winter, go back in the summer as well. Who knows, it might end up becoming your future home.

7. Prepare Your Home:

If you're thinking of moving or downsizing your home during retirement, then get it ready now. Clear the clutter, complete the repairs, and update whatever is necessary to optimize the sales process to your advantage.

8. Second Opinion:

Retirement planning is complicated, so get a second opinion from a fee-only financial planner. Heck, the stakes are high enough, you may want to also get a third or fourth opinion.

You may be surprised by how much expert opinions vary depending on background and assumptions (and the financial incentives of the advisor!!). You can learn more about our group retirement coaching services here.

The reality is you're making critical decisions that will impact your financial picture for the remainder of your life. The stakes are too high to rely on any one person's judgment - including your own.

The fact is there are more questions than answers:

Should you take monthly payments from your pension, or a lump sum distribution?

Should you take Social Security now or later?

Should you buy long-term care insurance or accept the risk?

Should you buy Medi-Gap coverage or self-insure?

What order should you begin withdrawing from your various savings accounts to maximize tax advantages?

Should you convert savings to an annuity? If yes, then how much?

Should you follow traditional asset allocation models by ratcheting down risk and focusing on income investments, or should you accept market risk in pursuit of growth by remaining invested in equities? How much, and for how long?

Can you use alternative assets like real estate and business entrepreneurship to close any gaps or increase income for any given amount of equity?

What percent of your savings can you withdraw every year? What are the assumptions behind that calculation?

How should your estate be organized for maximum benefit to you and your heirs?

There are many more questions to consider, but this should be enough to motivate you in seeking professional help. The issues are so complex and the consequences of a mistake are so serious that an experienced planner and tax expert can be worth every dollar you pay them.

This isn't a situation where you want to cut corners. Educate yourself first, then get a second opinion to make sure you didn't miss anything critical. It's cheap "insurance".

In Summary

Retirement is something you worked your entire life for. As you enter the home-stretch make sure you complete this final checklist of preparations so you know you've got everything ready.

These final working years offer a unique opportunity to prepare. A few carefully chosen last-minute strategies can make a big difference.

If you've made it through this article, then you've already separated yourself from the masses. Numerous studies show most workers haven't estimated their retirement expenses and income needs or put together any sort of retirement plan at all. You're a cut above.

By beginning with the "what" and "where" of retirement planning and determining the "when", you set the stage for not only creating a fulfilling retirement, but also accurately estimating the "how much" so you're not faced with fiscal surprises.

Don't be misled by traditional retirement planning literature that overemphasizes the "how much" of retirement savings.

Sure, it's an important part of your retirement plan, but as you saw above, proper life planning, goals, connection to others, appropriate insurance, home ownership, and being debt free are all similarly important.

There's a much bigger picture to planning a fulfilling and financially secure retirement, and this step-by-step course provides an exact road map so you can get there. Enjoy the process and enjoy your golden years. You deserve nothing less.

"This is the best financial education on the internet right now."

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The conventional approach used by experts to figure how much money you need to retire is fundamentally flawed. Worse yet, you won't even know it until it's too late.

This book takes you behind the scientific façade of modern retirement planning to reveal simple, robust solutions that will help you retire sooner and with greater financial security.

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Preparing For Retirement - The 5 Essential Questions

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Why dreams and goals matter more than money when planning retirement. Six steps to knowing how much money you need to retire. Don't make this critical mistake when planning for retirement. Five ways to boost your income and seven ways to slash expenses so you can afford your dream retirement.

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Website #1 - 10 Tips for Achieving Financial Security

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Website #1 - 10 Tips for Achieving Financial Security

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In this article you will learn 10 tips on how you are able to achieve Financial Security. It goes from, start as early as you can. Check your expensive and try lowering them what is hard for most people, then it goes and ask about your spouse are you married, are they saving for retirement.

The reason i picked this article to read, and have other read. People, think it very hard living with not really an income, and a lot of people at young age don't think about retirement, so this give the younger people and idea and some tips for retirement

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Are you financially secure?

Almost all of the research conducted on the subject over the last few years shows that most individuals are unable to demonstrate financial security; particularly for their retirement years. This only underlines the fact that achieving financial security is a challenging process that requires careful planning and follow-through.

To be sure, financial security means different things to different people. But we'll use a simple definition: having enough financial assets to cover your expenses, emergencies, and retirement without having any concern of running out.

Below, we review some helpful tips that should help you on your way to achieving financial security.

1. Start as Soon as You Can

It is obvious that it is better to start saving at an early age, but it is never too late to start-even if you are already close to your retirement years-because every penny saved helps to cover your expenses.

If you save $200 every month for 40 years at a 5% interest rate, you will have saved significantly more than an individual who saves at the same rate for 10 years. However, the amount saved over a shorter period can go a long way in helping to cover expenses during retirement.

Also, keep in mind that other areas of financial planning, such as asset allocation, will become increasingly important as you get closer to retirement. This is because your risk tolerance generally decreases as the number of years in which you can recuperate any losses goes down.

2. View Savings Deposits as a Bill

Saving on a regular basis can be a challenge, especially when you consider the many regular expenses we all face, not to mention the enticing consumer goods that tempt us to spend our disposable cash.

You can guard this temptation by treating your retirement savings as a recurring expense, similar to paying rent, mortgage, or a car loan. This is even easier if the amount is automatically debited from your paycheck by your employer.

Alternatively (or in addition), you may have your salary direct-deposited to a checking or savings account. You can also have the designated savings amount scheduled for automatic debit to be credited to the retirement savings account on the same day the salary is credited.

3. Save in a Tax-Deferred Account

Contributing amounts earmarked for your retirement to a tax-deferred retirement account deter you from spending those amounts on impulse because you are likely to face tax consequences and penalties.

For instance, any amount distributed from a traditional retirement account may be subject to income taxes the year in which the distribution occurs, and if you are under age 59½ when the distribution occurs, the amount could be subject to a 10% early distribution penalty ( excise tax).

If you have enough income, consider whether you can increase the amount you save in tax-deferred accounts. For instance, in addition to saving in an employer-sponsored retirement plan, think about whether you can also afford to contribute to an individual retirement account (IRA), and whether the IRA should be a Roth IRA or a traditional IRA.

4. Diversify Your Portfolio

The old adage that tells us that we shouldn't put all of our eggs in one basket holds true for retirement assets. Putting all your savings into one form of investment increases the risk of losing all your investments, and it may limit your return on investment (ROI). As such, asset allocation is a key part of managing your retirement assets. Proper asset allocation considers factors such as the following:

Your age: This is usually reflected in the aggressiveness of your portfolio, which will likely take more risks when you're younger and fewer the closer you get to retirement age.

Your risk tolerance: This helps to ensure that, should any losses occur, they occur at a time when the losses can still be recuperated.

Whether you need to have your assets grow or produce income.

5. Consider All Potential Expenses

When planning for retirement, some of us make the mistake of not considering expenses for medical and dental costs, long-term care, and income taxes.

When deciding how much you need to save for retirement, make a list of all the expenses you may incur during your retirement years. This will help you to make realistic projections and plan accordingly.

6. Retirement Savings Is a Must

Saving a lot of money is great, but the benefits are eroded or even nullified if it means you have to use high-interest loans to pay your living expenses.

Therefore, preparing and working within a budget is essential. Your retirement savings should be counted among your budgeted recurring expenses in order to ensure that your disposable income is calculated accurately.

7. Periodically Reassess Your Portfolio

As you get closer to retirement and your financial needs, expenses, and risk tolerance change, strategic asset allocation must be performed on your portfolio to allow for any necessary adjustments. This will help you ensure that your retirement planning is on target.

8. Optimize Your Expenses

If your lifestyle, income, or fiscal responsibilities have changed, it may be a good idea to reassess your financial profile and make adjustments where possible, so as to change the amounts you add to your retirement nest egg. For instance, you may have finished paying off your mortgage or the loan for your car, or the number of individuals for which you are financially responsible may have changed.

A reassessment of your income, expenses, and financial obligations will help to determine if you need to increase or decrease the amount you save on a regular basis.

9. Consider Your Spouse

If you are married, consider whether your spouse is also saving and whether certain expenses can be shared during your retirement years. If your spouse hasn't been saving, you need to determine whether your retirement savings can cover not only your expenses but those of your spouse as well.

10. Work With a Financial Planner

Unless you are experienced in the field of financial planning and portfolio management, engaging the services of an experienced and qualified financial planner will be necessary. Choosing the one who is right for you will be one of the most important decisions you make.

Financial Security FAQs

How Much Money Do You Need to Be Financially Secure?

That depends on your age, income needs, and financial objectives. But generally speaking, the "4% rule" is a good measure of financial security. In other words, if you're able to safely withdraw 4% from your investment accounts every year and never run out of money, it's probably safe to say you are financially secure.

What Is the Difference Between Financial Security and Financial Stability?

Broadly speaking, financial stability means being free of debt and being able to comfortably pay off monthly expenses (with plenty left over for savings).

Financial security, on the other hand, means having enough money to cover your expenses, emergencies, and retirement without the fear of running out.

How Can You Protect Your Financial Security?

The best ways to protect your financial security include:

Continuing to live well below your means

Remaining prudent when it comes to investing

Establishing different streams of income

Capitalizing on opportunities when they arise

How Can I Be Financially Free in Five Years?

In order to be financially free in five years, consider the following steps:

1. Figure out your baseline level of revenue and expenses

2. Cut your expenses as aggressively as possible

3. Pay down as much debt as possible

4. Boost your income with a second job or side business

5. Ratchet up your monthly savings rate to 75% or greater

6. Invest in a way that prioritizes growth assets

The Bottom Line

What we've discussed here are just a few of the factors that may affect the success of your retirement plan and determine whether you enjoy a financially secure retirement. Your financial planner will help you to determine whether you should consider other factors.

As we said above, starting early will definitely make the task ahead easier, but it is not too late to adopt some of these practices, even if you are already retired.

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10 Tips for Achieving Financial Security

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Financial security means having money to cover your expenses, emergencies, and retirement. Read 10 financial security tips for a comfortable future.

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Video #4 - 10 Levels of Financial Independence And Early Retirement | How to Retire Early

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Video #4 - 10 Levels of Financial Independence And Early Retirement | How to Retire Early

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In this video you will learn 10 levels of Financial. In this video it goes over levels from zero to 9 what equal to 10 levels.  It goes through each level in detail and explain it and tell how you can retire earlier, if that is your interest and want to go explore the world or any thing what interest you.

I choose this video because it makes you think and give you different levels of how you can have money and how to get independence, and this give you levels and shows you how you can retire earlier then everyone else

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10 Levels of Financial Independence And Early Retirement | How to Retire Early

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In this video you will learn 8 key ways to keep your money secure for your retirement. It goes over tips and topics to help you keep your money. Always showing the importance of your money and showing you what really matters to you.

I choose this video for a few reasons. When i think of Financial Security, i am looking for ways to keep my money. Were in this video it tell you to make sure your the first one to get money, if you have extra and can share give it something you care about.

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Video #2 - 3 steps to financial security in retirement

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Video #2 - 3 steps to financial security in retirement

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In this video you will learn 3 tip on how to make sure you have a conformable living style.  It ask your important question at the begin, on how you want to live your retirement and make your money according to how you want to live it. Then it goes over how your money matters, and tell you go see a finical planner.

I choose this video for a few different reasons. A lot of people do not think about retirement

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3 steps to financial security in retirement

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Video #1 - 5 Keys to Achieving Financial Security in Retirement

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Video #1 - 5 Keys to Achieving Financial Security in Retirement

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In this Video, if you decide to watch it, it goes over 5 keys to achieving financial. They also go over stocks and tell you how it good and bad to invest.  They also talk about staying a course and it very important to stay a course.

I choose the video for a reasons, if your paining on retire. The five key in this video well help you as someone who plain on retiring secure your money and making sure your not stress at that kind age. So i picked th

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5 Keys to Achieving Financial Security in Retirement

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Welcome to my Padlet Wall. On, my Padlet wall you will find four different videos, Four different websites, and two pictures. This content will be focus towards retirement and financial security. This padlet wall help you understand and learn on this topic

You will have notice, each post has been coloured.
Green = Videos
Red = Websites
Blue = pictures
White = Reflective Questions