5 Ways To Avoid Outliving Your Retirement Savings

One of the greatest challenges of retirement is ensuring that your finances last as long as you live. You can ensure you have some money coming in regardless of how long you live through;

Social Security. This is the first line of defense to help you avoid outliving your savings since these payments are remitted and adjusted for inflation for the rest of an individual’s life. People who qualify for Social Security never completely run out finances; however, they may have to cut the standard of living to enable them survive on the Social Security payment when they exhaust other sources of income. It is vital to enhance the money you will obtain because this is the major source of income most retirees depend on. You can boost your Social Security payment by claiming spousal payments, having over 35 years of covered earnings and delaying your claiming up until the age of 70.

Pension. Workers who are advantaged to get traditional pensions via their jobs usually have a guaranteed source of monthly income upon retirement. A lot of private sector pension plans guarantees pension up to a given yearly limit and will remit benefits even when the former employer gets out of the business. However, currently workers who have traditional pensions are given lamp-sum payouts which lack similar protections. So, if you mismanage your lump-sum or you live longer than anticipated, the money may be spent too quickly.

An annuity. Immediate annuities enable an individual to hand over a given portion of the retirement savings to an insurance firm in exchange for monthly payment for his entire life. Some annuities have high fees and costs and you cannot generally be able to pass the money you employed in buying the annuity on to heirs. However, you will gain a predictable monthly income regardless of how long you live as long as the insurance firm stays in the business. If you desire the lifetime guarantee, you will have to trade off access to the money. Most annuity companies will not give you the money back apart from the monthly paycheck once you hand over the money.

5 Ways to Avoid Outliving Your Retirement Savings

5 Ways to Avoid Outliving Your Retirement Savings

Systematic withdrawals. Disciplined investors are able to draw down their savings gradually in a manner that is capable of lasting for a long time. Lots of financial advisors often recommend withdrawing less than 3 to 4% of the retirement savings but this may be adjusted annually for inflation. This strategy has a demerit in that you may live longer than anticipated, your investments may perform poorly or you may fail to adhere to the plan and over spend as per the plan. However, the money will be available to be used for emergencies. If you pass on sooner, your hairs get the money. With this method, if you have a poor investment experience or live longer, you may run out of cash or you may die early before the money is finished and leave a lot of money to charity or your heirs.

Pay off your mortgage. When you pay off your mortgage, a major monthly bill is eliminated which enables you to use the savings for other expenses apart from housing. Your home’s equity may also be tapped for greater emergencies through a reverse mortgage or a second mortgage.

Fund systematic withdrawal

Fund systematic withdrawal

5 Ways to Motivate Employees Beyond Money

Employees are the backbone of each organization. Without these people, any company will succumb to its competitors. We know that money can keep people motivated. But what if your company can’t afford to give salary increases and monetary bonuses often? How can you still keep your employees motivated without spending a fortune? There are a lot of ways to motivate your workforce besides giving them money. Here are 5 of them:

1. Give out free glorious food once in a while

Office meal programs can make your employees happy. When there’s a free meal, they don’t have to leave the office and head to their favorite restaurant to eat. Free meals show appreciation. Even free snacks will be appreciated. It can definitely make the office more enjoyable for your team.

2. Recognize their achievements

When employees achieve something, make sure to recognize it. There are a lot of managers that fail to recognize their exemplary employees. Don’t make this mistake. Recognition won’t cost you a thing, but you will get so much in return. You can expect your employees to work harder and get better.

3. Provide them with a good work environment

Make sure that the office looks pleasant. Employees should feel comfortable each time. Give them enough space to work. Even the chair and the desk should be comfortable for them to use. Everything should be perfect. Temperature has to be just right.

4. Schedule social gatherings

These gatherings encourage the team to strengthen the bond as well as take a break from work. Costume parties, Christmas parties, and occasional team building activities can bring people together. Even watching movies or playing sports together are very effective in keeping people happy. They’ll look forward to work because they know they’ve got good company in the office.

employees work for money

employees work for money

5. Give them additional time off

You can implement contents where employees can earn time off. Even 15 minutes time off is something people will work hard to get. Set goals. When an employee or the entire team reaches the goal, reward them with some time off. You can also reward them by letting them leave work early, let them arrive late, give them more breaks, or extend their lunch period.

There are so many things that you can do to motivate your employees without having to give them money. As simple as giving away a can of soda for a job well done will already be appreciated. Sending emails to everyone informing them of an employee’s accomplishment will also keep a person motivated. Keeping the best and the brightest people can be very challenging. Other companies may be busy trying to take them away from you. So make sure you value your employees. Keep them motivated and you won’t have any problems keeping the best employees you have.

To motivate workers every day,

To motivate workers every day,