How Do You Envision Your Retirement?

The Duomo in Firenze (Florence, Italy)

I have mentioned in a few past posts about how do you envision your retirement? It may be spending time with your kids, grandkids, volunteering at your church or community, traveling the world, or even working a few part-time hours at your favorite store.

Assisi, Italy

I recently came back from a trip to Italy where my twin sister and I were the youngest in the tour group at the age of 37. Only three other people were still working jobs. The remaining 35 people were retired and were already planning their next trip. Most were either couples or girlfriends on their annual vacation together.

I asked a few of the retirees about life in retirement.

• One couple did not have kids so they traveled as often as they could.
• One couple have 2 Adult kids. Both kids are doing very well financially. They are one of the lucky ones who don't have to support their 35+ age old child(ren). They would love to continue to travel during retirement. Key point: Teach your kids about money management in case in the future they have a job loss, they don't have to come to you.
• There were several retired educators in our group. One retired educator and her husband saved as much of their income as they could so they could afford to travel. They have previously traveled to South Africa three times, including the mother backpacking alongside her daughter,  with a tent for three weeks. Key point: Many educators do not make much in Salary, so save as much as you can for retirement. If you are currently an educator and love to travel, take advantage of a program, such as EF Tours to take middle and HS students abroad.
• Several of the couples said they simply love the Educational Value of travel.
• One half of a couple decided to start a second career, but still considers himself retired.
• Finally, there was a couple who said there wasn't anything to do in their town so they started their own travel business.

It is not too late to save for your retirement. Contact a ValuTeachers rep to learn more about how to save by investing in a 403b, 401K, Roth IRA, and/or Traditional IRAs.What is stopping you from realizing your Retirement Goal? Comment below what you want to do for retirement.

All photos are my personal photos from my recent trip to Rome and Florence, Italy.

Delicious food.

Great Wine.

Shopping in San Gimignano (Outside Florence, Italy)

My Twin sister Sharee, and Myself.

Being Impatient With Your Money

You are looking at your quarterly statements and see over the past few years your 401(k)/403(b) is growing BIGGER AND BIGGER. You may start looking at what you can do NOW with that money. Vacation to Europe, new car, or your child's education. "Hey I have years before I retire".

But wait, what is the cost of you being Impatient!! You are not 59 1/2 years old, so you have to pay 10% in penalty charges and ordinary income tax. In the case of 403(b)/Roth 403(b) annuities you have to pay surrender charges. You can use  the withdrawal as a loan, but have to pay it back within a certain period of time (usually 5 yrs) plus interest.

That's money you have taken out that is no longer generating interest and compounding interest (interest on top of interest) for you. Instead of maybe $300,000 at the full retirement age of 67(if you are born after 1959), you may have $200,000. A big difference when people are living more into their 80's and 90's (at least 20 years in retirement).

However, there are certain instances in which you can get access to your money with minimum penalty, including hardship for unemployment and eviction from your house, if there is no other resources.

Read more  Rules for Early Withdrawal from a Retirement Fund

What are your thoughts on early withdrawal of your retirement fund? Are you impatient when it comes to your retirement fund?

Rhonda W.