A viatical settlement is the sale of a life insurance policy by the policy owner before the policy matures. Such a sale, at a price discounted from the face amount of the policy but usually in excess of the premiums paid or current cash surrender value, provides the seller an immediate cash settlement. Similar to reverse mortgages, viatical settlements involve insured individuals with a life expectancy of less than five years. In countries with high health care costs (such as the United States), this is a practical way to pay extremely high health insurance premiums and other senior care expenses that severely ill people face. Some people are also familiar with life settlements, which are similar transactions but involve insureds with longer life expectancies (two to fifteen years). - From Wikipedia and other sources 5/2007How to Enjoy Life the Retirement Way
Most people may think of retirement as an easy way out from hard work. Many view retirement as the start of a good life away from hassles, demanding boss, and unbeatable deadlines. This can be true if they have planned their future apart from their work the retirement way.
Statistics show that retirement can be quite expensive. For you to be able to maintain the kind of lifestyle that you have now until the time you stop working, you have to save nearly 70% of your current earnings, even 90% for those who earn a low income.
That can be a lot of money and doing so will only render you penniless every payday. However, if you are going to look at it, saving more not just for the rainy day but even until the rain has stopped can really do wonders for your life.
So how can you enjoy life after work the retirement way? Here is how:
1. 401K
One of the most feasible types of retirement plan is the 401k. With this, you can save the money you need for retirement without having to worry about budgeting and financial management.
With 401k, your employer can automatically deduct a certain amount from your salary every payday and put the amount in mutual funds. These funds may vary from money market investments to bonds or stocks. The good news is that the taxes imposed on the money you save are deferred until withdrawal.
Since the employer is the one responsible for deducting the necessary amount to invest in mutual funds, financial management is a lot easier. Of course, if you know that you will only be receiving a certain amount of money every payday; you will be compelled to tighten your budget. Whereas, if you can manage your whole salary and can freely decide on whether to invest on mutual funds or not, chances are, you may end up at retirement without a single penny in hand.
2. Invest
There is no better time to save for the future than to invest your money now on some reliable investments. Investments are always practical way of saving money before one retires. Your money will definitely grow without having to spend more than what you can afford.
Keep in mind that in order to enjoy life the retirement way, it is important that you choose things that can help you grow you money. Hence, by the time you would be needing it, you can be sure that you have something to lean on to.
You can invest your money on properties. Generate the cash flow while still young and save money. For additional income on your retirement, you can sell the property and earn from its equities. You can also try the lifestyle mutual fund, where you can invest your money in bonds and diversified stocks.
3. Annuities
This type of retirement plan service refers to the deferred contract issued by an insurance company. Here, you can pay the insurance company a lump sum of money and earn back the amount by the time you retire. However, the repayment is not in lump sum but on a monthly basis.
In this way, the retiree can be assured of continuous, regular source of income even after he has stopped working.
There are so many ways of getting annuities but the most common is through 401k. With 401k, you can invest your money in annuity and use this amount to finance your needs as long as you live or usually within a year after your retirement.
4. Create an account for emergencies as well as retirement
Do not just create a savings account ? create an account for emergencies. You will never know what can happen next if you do not anticipate the future that lies ahead. Moreover, for you to enjoy your retirement, it is important that you save more money and ensure yourself of secured future by having financial resources that can suffice your utility bills, such as light and water bill, food, etc.
By separating the savings for retirement and for emergencies, it will be easier for you to focus on things that will help you manage life in the future.
Indeed, planning and building your nest egg the retirement way is easier said than done. But there won't be hassles or problems if you will just follow these simple tips on how to enjoy life the retirement way.
For more complete information on retirement please go to: http://www.accessibleretirement.com/Retirement-Way.html http://www.accessibleretirement.com www.drnathaliefiset.com