What is Retirement? Meaning and Definition of Retirement
What is retirement? Asked by the readers of InvestmentTotal.com. Let us know exactly the meaning and definition of retirement today. A retirement is a life after long years of working. For me the meaning of retirement is “something to plan for”, or “a specific date to prepare for”. a retirement is a period wherein an individual will stop working and enjoy the rest of the days he still has. But, what are the things to plan for retirement? Things to talk about in this page, so stay tuned.
What is Retirement?
According to the dictionary, the word “retirement” define as “to give up active participation in a business or other occupation, esp. because of advanced age”, v.t.”to withdraw (money) from circulation or (bonds, stocks) from the market”.1
The word “retired” means “no longer taking an active part in a profession or other occupation”1 .Example, a teacher will retire after 30 years. A public hospital nurse can retire after 30 years. A marine corp can retire after 25 years. It always depends on when an individual wants to retire. Take note of the certain rules and regulations in your own country on how many years is allowed to retire or stop working. Most of the government employees (public servant) will get retirement pension plan from the government. The retirement fund was the “deductions” from your salary when you are still active in working. Those deductions will go to social security. In USA, a 401k plan can help an individual to save for his retirement.
The role of CFP – Certified Financial Planner is very important to all of us when we are planning for our retirement. Can we do the retirement planning alone? Yes, we can do it alone, but if you want to make retirement more successful, it is advisable to consult or hire a Certified Financial Planner as long as we have time to prepare.
Retirement Advice from the Experts
If you can’t find CFP – Certified Financial Planner, here’s the retirement advice from the well known financial expert – Suze Orman. Suze Orman is the author of “The Money Book for the Young, Fabulous & Broke”.
Suze Orman stated in her book…”The best investment tool is the power of compounding; small investments made today have time to grow into large investments by the time you retire.”2 , she added good more retirement advice about Roth IRAs, she stated…
“Roth IRAs don’t give you a tax break when you invest, but they are the only retirement investment where your withdrawals will not be taxed. Contribute to a Roth each year if you are eligible: Individuals who file a single tax return and have adjusted gross income of less than $95,000, and couples filing a joint tax return with combined adjusted gross income of less than $150,000 are eligible to make the full Roth contribution.”2
According to Brian O’Connell, the author of the book entitled Build Your Own Mutual Fund, “The rule of thumb is having about 8o percent of your preretirement income to live on in retirement. But a better idea is to count on having a 100 percent on hand. Inflation could go higher, Social Security may collapse, or you may live long enough so health care is a major, and expensive, issue.”3
I want to discuss what is retirement all about in some other time. There are many things to consider to have a successful retirement years. But, the best deal to a successful retirement is to prepare it while you are still young.
Related Post: Calculate Your Retirement Target Earning Asset
Citations and References:
1 The New Lexicon Webster Encyclopedic Dictionary of the English Language: Deluxe Edition 1992 by Lexicon Publication, Danbury, CT p. 849 (retire, retirement)
2 Suze Orman, Author, “The Money Book for the Young Fabulous & Broke” 2005, Riverhead Books, New York, p. 214, 215
3 Brian O’Connell, Author, “Build Your Own Mutual Fund: How to Use a Personal Portfolio to Take Control of Your Financial Life” 2004, Adams Media,Avon Massachusetts USA, p. 61
Thought of the Day:
“You have been dealt a tough hand, and that requires getting an early jump on your retirement savings, because your best friend right now is TIME.” – Suze Orman