How to Retire on $60,000 a Year
by Charlie Farrell
Wednesday, April 20, 2011
If you're a middle income family, you might be wondering how much money you're going to need to retire. Let's take a look at a 66-year-old couple that's been earning $60,000 a year and see what the numbers tell us.
Social Security
If you've been earning about $60,000 a year and want to retire at your full retirement age of 66, your current Social Security benefit would be about $1,500 a month, or $18,000 a year. Now if you're married, your spouse will basically collect at least half of this amount ($9,000), even if your spouse never worked. That means your estimated combined Social Security benefit at age 66 today would be about $27,000.
If you're getting $27,000 in Social Security benefits and want to retire on $60,000, you need to somehow make up the other $33,000. The only way to do that is to live off the returns on your retirement savings (unless you happen to have a pension, which most people don't).
So at age 66, how much money would you need to have saved to produce $33,000 a year in distributions and not run a big risk of depleting your savings?
Well, there's no precise answer to this question because financial market returns are so volatile. But from studying history, we can get a reasonable sense of what it will take.
A good estimate is that a portfolio can support inflation-adjusted distributions of between 4% and 5% per year, depending on market conditions. So if you're unlucky and retire during a bear market, you might be stuck at 4%. It you're a little more fortunate and financial returns are positive, then you could probably do 5%.
• The reality is that over your retirement years, you'll have good and bad market cycles. So sometimes you'll need to drop your distribution to 4% to get through a rough market, and sometimes you can bump it to 5% in better times.
That means to produce $33,000 of inflation-adjusted distributions, you would need somewhere between $660,000 and $825,000 in retirement savings.
• A 5% distribution on $660,000 gets you $33,000, and a 4% distribution on $825,000 gets you $33,000.
Now that might seem like a lot of money, but it's about right. And the main reason you need so much is because of inflation. If inflation runs at 3% for the next 25 years, your initial distribution would need to grow from $33,000 to about $66,000. Well, if you're taking out $66,000 a year, you can see that even a $660,000 portfolio probably won't last too long.
If you don't think you'll have that much saved, then take whatever amount you think you'll have saved by age 66, and multiply it by .04, to get a sense of the low range of your distributions, and then by .05, to get a sense of the higher range of your distributions.
For instance, let's assume you think you'll have $350,000 saved by age 66. Well, if you multiply $350,000 by .04, you'll get $14,000, which would be your annual distribution at 4%. If you multiply it by .05, you'll get $17,500, which would be your annual distribution at 5%. Add those numbers to your Social Security benefit, and you have a rough estimate of how much income you'll have to live on in retirement.
If you don't think Social Security will be around, then take Social Security out of your calculations and run the estimates just based off your savings. Now you'll see why Social Security is so important. Without it, you'd need somewhere between $1.2 million and $1.5 million just to produce $60,000 of retirement income.
Bottom Line
Even middle income families will need sizable nest eggs to maintain their lifestyles in retirement.
Quoted: http://finance.yahoo.com/focus-retirement/article/112572/how-to-retire-on-60k-year-moneywatch?mod=fidelity-managingwealth&cat=fidelity_2010_managing_wealth
Saturday, April 23, 2011
6 surprising causes of back pain.
6 surprising causes of back pain
By Nicole DeCoursy
If you’ve ever had a bout of back pain, you’re not alone: According to the National Institutes of Health, 8 out of 10 people will suffer from back pain at some point in their lives. Most of the time, back pain is set off by something totally minor, says Venu Akuthota, MD, director of the Spine Center at the University of Colorado Hospital in Aurora, Colorado.
Besides obvious causes (constantly lugging a too-heavy purse, for instance), experts say that everyday habits like hunching over your smartphone can strain your spine and the surrounding muscles over time, causing pain and making you more vulnerable to serious injury. To stop back pain now—and avoid future agony—try targeting these unexpected culprits.
Culprit No. 1: Your fancy office chair
Even an expensive, ergonomic chair can be bad for your back if you sit in it all day without a break. Sitting not only lessens blood flow to the discs that cushion your spine (wearing them out and stressing your back), but it puts 30% more pressure on the spine than standing or walking, says New York City chiropractor Todd Sinett, author of The Truth About Back Pain. Be sure to stretch at your desk and get up every hour to walk around. Don’t assume that built-in lumbar support makes your chair back-friendly—in fact, for many people, lumbar supports don’t make a bit of difference, especially if they aren’t positioned properly (at the base of your spine), says Heidi Prather, a physical-medicine and rehabilitation specialist and associate professor of orthopedic surgery and neurology at the Washington University School of Medicine in St. Louis.
No matter what type of chair you sit in, make sure your head is straight (not tilted down) when you’re typing or reading. Avoid slouching and adjust your seat so it tilts back slightly to help alleviate some of the load on your back, Sinett says. And keep your feet planted firmly on the floor.
Culprit No. 2: The wrong shoes
When you strut in stilettos, your foot strikes the ground in a toe-forward motion rather than the normal heel-toe gait, stressing your knees, hips, and back, Sinett explains. "Wearing heels also alters the angle of your body so your weight isn’t evenly distributed over the spine," he says. This instability can set you up for pain and injury radiating from your knees all the way to your back.
Another shoe no-no: the backless kind (even flats and flip-flops), which allow your heel to slide around. Again, the lack of stability distributes your body weight unevenly, putting more pressure on your spine. Your shoe should firmly hold your foot in place to keep you stable and protect your back, says Sinett, who also advises sticking to heels that are less than three inches high.
Culprit No. 3: Your beloved smartphone or tablet
Mobile technology has not been kind to our backs and necks, Prather says. "We’re hovering over laptops, iPads, and smartphones all the time," she notes. "This head-down position strains the muscles in the neck, and the pain can extend all the way down your spine to your lower back." Take frequent breaks, and try to look straight ahead—rather than down—while using a laptop, tablet, or phone. You can buy a stand to help hold your laptop or tablet at a more back-friendly height and angle.
Culprit No. 4: Extra pounds
Carrying even just a few extra inches around your midsection—whether it’s due to belly fat or pregnancy—makes your pelvis tilt forward and out of alignment, as your body works to keep itself balanced. This can cause excessive strain on your lower back, Dr. Akuthota says. He recommends doing this easy stretch several times daily: Tighten your abs (like you’re bracing for a punch in the stomach) to activate core muscles and take a load off the lumbar discs; hold 10 seconds, then release. (Pregnant? Check with your doctor before doing any exercise.)
And if weight gain is your problem, consider making whole grains an essential part of your slim-down plan: A new study from Tufts University found that those who ate three or more servings of whole grains a day had 10% less abdominal fat compared with those who ate essentially no whole grains.
Culprit No. 5: The wrong bra
Large-breasted women obviously carry significantly more weight in front than those who have smaller breasts. This can lead to hunching and sore neck and back muscles, Sinett says. A bra that offers proper support can actually minimize that forward hunch and relieve pain, while one that doesn’t may exacerbate the problem, as you hunch or strain even more to compensate for uncomfortable straps or a riding-up band.
Research shows that many women wear the wrong size bra, but the right fit can mean the difference between sagging and supported; get fitted by a bra professional. Prather says you may want to try a T-back (a.k.a. racer-back) style. "It gives the body a cue to pull the shoulders back," she says.
Culprit No. 6: Your crazy schedule
Just like the rest of you, your back muscles can tense up when you’re frazzled. Muscles are designed to contract and relax, Sinett explains, but when you’re stressed, they may contract so much that they can eventually start to spasm. Stress also boosts production of the hormone cortisol, which increases inflammation and can lead to achiness, he says.
On top of that, "Chronic stress can affect the way a person perceives pain," says Alan Hilibrand, MD, spokesman for the American Academy of Orthopaedic Surgeons and professor of orthopaedic and neurological surgery at Jefferson Medical College in Philadelphia. "So those who are stressed will often have a harder time managing back pain than those who aren’t." Lower-impact aerobic exercise (think walking or working out on an elliptical trainer) may help relieve back pain and ease stress—so you can beat the pain for good. .
.Quoted: http://shine.yahoo.com/channel/health/6-surprising-causes-of-back-pain-2474057/
Why do I wish to enroll into the Graduate Diploma in Applied Positive Psychology Program?
Why do I wish to enroll into the Graduate Diploma in Applied Positive Psychology Program?
Psychology is the science of mind and behavior. Being of a science background, I have a keen and curious mind to understanding people and things of the world. With that, I always adopt a scientific approach, in depth that is beyond the mere surface visual understanding. This forms the “always want to know more” or “researcher” mindset.
Thus why Applied Positive Psychology?
Cognitive Behavior Therapy and Solution-Focus Brief Therapy via short course with Touch Family Services, and a brief knowledge of Problem-Based Learning expand my knowledge of looking at problem, or solution to a problem in terms of learning or for therapy. Both, from my opinion, are somehow linked with problem of life that may be difficult for some people to accept. The approach “to find and nurture genius and talent ” and “to make normal life more fulfilling ” allows a “non-weakness”, “non-problem-based” perpective of life. This can equip me with a more holistic approach to my service to people around me. Being able to help others is a key principle of my life. Being able to do my best in serving is too. However, I too believe there is also strength in the weakness of people; it is just that my seemingly exposure in more focus on weakness/problem-based rather than on strength-based.
So how I perceive the knowledge from the program will aid me in where I am now?
Working for a while in Board Games Creation and deliever Board Games Creativity School Enrichment Program, this reinforce my approach to learning to be that with fun, application with reinforcement, one can learn more and retend more knowledge. Applied Positive Pyschology I believe will equip me with the knowledge to bring me to the next level in the area I am doing in relationship with Board Games. It will help in crystalising my thought process, backing my creativity with scientific findings to allow games to be created that can better “tools” in personal learning and development with the existing Board Gaming systems.
Other than Board Games Creation, the area of Coaching and Mentorship; be it Personal Coach, BGR Consultation / Coaching are areas that intrigue me. My passion to be able to facilitate change and improvement in other people’s life where I am too a beneficiary. Also to help educate others to take the “road less travelled” or to give a different “I being through that path before with hurt, please be aware” view. Blessed to be a blessing; “… who comforts us in all our troubles, so that we can comfort those in any trouble with the comfort we ourselves receive … ” are key life quotes / verses that make parts of my life.
Last and not the least, is that I can better understanding myself, and better equipped to do more self-help. Adopting a “better” resilient view of life, perhaps that can bring me strength and tools to continue this “only once” journey to be the salt of the earth and the light of the world.
Psychology is the science of mind and behavior. Being of a science background, I have a keen and curious mind to understanding people and things of the world. With that, I always adopt a scientific approach, in depth that is beyond the mere surface visual understanding. This forms the “always want to know more” or “researcher” mindset.
Thus why Applied Positive Psychology?
Cognitive Behavior Therapy and Solution-Focus Brief Therapy via short course with Touch Family Services, and a brief knowledge of Problem-Based Learning expand my knowledge of looking at problem, or solution to a problem in terms of learning or for therapy. Both, from my opinion, are somehow linked with problem of life that may be difficult for some people to accept. The approach “to find and nurture genius and talent ” and “to make normal life more fulfilling ” allows a “non-weakness”, “non-problem-based” perpective of life. This can equip me with a more holistic approach to my service to people around me. Being able to help others is a key principle of my life. Being able to do my best in serving is too. However, I too believe there is also strength in the weakness of people; it is just that my seemingly exposure in more focus on weakness/problem-based rather than on strength-based.
So how I perceive the knowledge from the program will aid me in where I am now?
Working for a while in Board Games Creation and deliever Board Games Creativity School Enrichment Program, this reinforce my approach to learning to be that with fun, application with reinforcement, one can learn more and retend more knowledge. Applied Positive Pyschology I believe will equip me with the knowledge to bring me to the next level in the area I am doing in relationship with Board Games. It will help in crystalising my thought process, backing my creativity with scientific findings to allow games to be created that can better “tools” in personal learning and development with the existing Board Gaming systems.
Other than Board Games Creation, the area of Coaching and Mentorship; be it Personal Coach, BGR Consultation / Coaching are areas that intrigue me. My passion to be able to facilitate change and improvement in other people’s life where I am too a beneficiary. Also to help educate others to take the “road less travelled” or to give a different “I being through that path before with hurt, please be aware” view. Blessed to be a blessing; “… who comforts us in all our troubles, so that we can comfort those in any trouble with the comfort we ourselves receive … ” are key life quotes / verses that make parts of my life.
Last and not the least, is that I can better understanding myself, and better equipped to do more self-help. Adopting a “better” resilient view of life, perhaps that can bring me strength and tools to continue this “only once” journey to be the salt of the earth and the light of the world.
Tips to avoid breakdown on the road
Tips to avoid breakdown on the road
By Jofelle P. Tesorio in Bangkok/Asia News Network
ANN – Tue, Apr 19, 2011 4:00 PM SGT
..
Bangkok (ANN) - You have decided that it is time to go on travelling with a partner after years of backpacking solo. And you don't mind being with someone this time because travelling as a couple could be double the fun. However, if you decide to travel with another person, whether with a friend or a partner, expect that it's not going to be as smooth as you think.
Many seasoned travellers say if you want to know your partner more, you have to leave your comfort zone and travel as a couple. Travelling can change people. They shed off their skin and show their colours. It's the ultimate test if your relationship is made of rock. I've heard a lot of stories of couples breaking up or friendships getting awry after their travel because they found out they can't even agree on simple things. Travelling has made them realised that they cannot be together, at least on an island.
It's always been a hard decision for couple to travel together especially when one or both are used to a solo flight. It is even harder when one or both of the couple have not travelled outside their home. I've heard of horror stories about honeymooners instantly wanting to get a divorce because their 'coupling' (couple travelling) didn't go as planned. They realised getting married was a mistake because they had so much differences--from food choices to idea of fun--and thought they should have taken the honeymoon first before the marriage to get to know each other better. Seriously, this is not fun. Take the story of a young American couple who went to the lovely islands of Thailand for their honeymoon. The woman was a control freak and the man wanted an easy-going island life. At the end, the man decided to stay behind for an extended holiday in Koh Pangan (for the monthly full moon party) while the wife went back to the US by herself.
But there are also good stories coming out from 'coupling'. Many couples have attested that their relationship became stronger because of the unusual bond they had while travelling. They discovered new things about each other and complimented each other's shortcomings. A British couple who were too bored in their London flat decided to go to Bali, Indonesia to recharge and get a much needed vacation. Together they discovered they both enjoyed biking around the winding roads of Ubud and amidst rice paddies. They enrolled together in meditation classes and found renewed love in Bali.
A successful 'coupling' depends on the couple. But these tips could sweeten the deal:
Planning
Whether going solo or as a couple, planning is crucial. You need to agree on a destination that appeals to both. Thailand and Indonesia appeal to couples because of diverse interests these destinations offer.
Your budget should also be taken into consideration. When you're married, it's probably easier to discuss the budget but for dating couples, it can pose a problem. Both should agree on money allocation on how you are going to split costs. Going to Asia might be more economical than, say, Latin America. It pays to have a good research about your destination, the weather and places to see. It's also worthwhile to check out language barriers. Language is not much of a problem in most of Asia. Even if English is not widely spoken in many countries, it is easy to find someone who speaks the language.
Compromise
In any relationship, compromise is the best solution to any problem. You have to remember that it isn't solo travelling anymore. While you really want to ride the back of an elephant in Thailand while your partner has a fear of the mammal, you just have to compromise. You could agree to let the other ride the elephant while you stay behind your hotel enjoying yourself in the pool. But the best way to avoid fighting is to plan the things you both want to do and the places you want to visit.
Who's in charge
Always remember that it's 'coupling'. While one is a natural leader who takes all the decisions what kind transportation to use, where to go and where to sleep, the other should not just blindly follow. If only one makes the decision, the other partner gets annoyed and feels underappreciated. As a rule of thumb, men are generally better in reading maps so better leave this task to the man. But you can take turns in deciding what to do next and allow the partner to choose. One good tip I got from a couple is dividing the tasks and focus on them. For this American couple, communicating, finding ATM machines and doing most of the driving are left with the husband while keeping track of the itinerary (hotel information, places to see, restaurants) and navigation are the wife's responsibilities.
Luggage issues
Don't fret over small stuff. An argument over who gets more luggage space is one of these. Better have separate luggages which contain only the most essential. The key is always pack light so you have more space for souvenirs. If you are going to Southeast Asia during the dry months and summer, you practically don't need much. Clothes are also cheap to buy so it's better to get some of the clothes you need in your destination.
Patience
There are annoying things that your partner will do during the trip that you don't see back home. You have to exert extra patience in dealing with one's quirkiness unless you want to end up fighting.
Relaxed mind, positive attitude
There will be unexpected events that will happen during your travel such as flight cancellations due to volcanic eruption or flooding in your paradise island. Having a positive attitude coupled with a sense of humour will make things bearable for both of you. If one of you gets impatient for waiting hours at the airport, one should remain calm. If you can make fun out of the dire situation, the better. It means you can weather all storms in your relationship. Travelling should be a wonderful and enriching experience.
Quoted: http://sg.news.yahoo.com/tips-avoid-breakdown-road-080004328.html
By Jofelle P. Tesorio in Bangkok/Asia News Network
ANN – Tue, Apr 19, 2011 4:00 PM SGT
..
Bangkok (ANN) - You have decided that it is time to go on travelling with a partner after years of backpacking solo. And you don't mind being with someone this time because travelling as a couple could be double the fun. However, if you decide to travel with another person, whether with a friend or a partner, expect that it's not going to be as smooth as you think.
Many seasoned travellers say if you want to know your partner more, you have to leave your comfort zone and travel as a couple. Travelling can change people. They shed off their skin and show their colours. It's the ultimate test if your relationship is made of rock. I've heard a lot of stories of couples breaking up or friendships getting awry after their travel because they found out they can't even agree on simple things. Travelling has made them realised that they cannot be together, at least on an island.
It's always been a hard decision for couple to travel together especially when one or both are used to a solo flight. It is even harder when one or both of the couple have not travelled outside their home. I've heard of horror stories about honeymooners instantly wanting to get a divorce because their 'coupling' (couple travelling) didn't go as planned. They realised getting married was a mistake because they had so much differences--from food choices to idea of fun--and thought they should have taken the honeymoon first before the marriage to get to know each other better. Seriously, this is not fun. Take the story of a young American couple who went to the lovely islands of Thailand for their honeymoon. The woman was a control freak and the man wanted an easy-going island life. At the end, the man decided to stay behind for an extended holiday in Koh Pangan (for the monthly full moon party) while the wife went back to the US by herself.
But there are also good stories coming out from 'coupling'. Many couples have attested that their relationship became stronger because of the unusual bond they had while travelling. They discovered new things about each other and complimented each other's shortcomings. A British couple who were too bored in their London flat decided to go to Bali, Indonesia to recharge and get a much needed vacation. Together they discovered they both enjoyed biking around the winding roads of Ubud and amidst rice paddies. They enrolled together in meditation classes and found renewed love in Bali.
A successful 'coupling' depends on the couple. But these tips could sweeten the deal:
Planning
Whether going solo or as a couple, planning is crucial. You need to agree on a destination that appeals to both. Thailand and Indonesia appeal to couples because of diverse interests these destinations offer.
Your budget should also be taken into consideration. When you're married, it's probably easier to discuss the budget but for dating couples, it can pose a problem. Both should agree on money allocation on how you are going to split costs. Going to Asia might be more economical than, say, Latin America. It pays to have a good research about your destination, the weather and places to see. It's also worthwhile to check out language barriers. Language is not much of a problem in most of Asia. Even if English is not widely spoken in many countries, it is easy to find someone who speaks the language.
Compromise
In any relationship, compromise is the best solution to any problem. You have to remember that it isn't solo travelling anymore. While you really want to ride the back of an elephant in Thailand while your partner has a fear of the mammal, you just have to compromise. You could agree to let the other ride the elephant while you stay behind your hotel enjoying yourself in the pool. But the best way to avoid fighting is to plan the things you both want to do and the places you want to visit.
Who's in charge
Always remember that it's 'coupling'. While one is a natural leader who takes all the decisions what kind transportation to use, where to go and where to sleep, the other should not just blindly follow. If only one makes the decision, the other partner gets annoyed and feels underappreciated. As a rule of thumb, men are generally better in reading maps so better leave this task to the man. But you can take turns in deciding what to do next and allow the partner to choose. One good tip I got from a couple is dividing the tasks and focus on them. For this American couple, communicating, finding ATM machines and doing most of the driving are left with the husband while keeping track of the itinerary (hotel information, places to see, restaurants) and navigation are the wife's responsibilities.
Luggage issues
Don't fret over small stuff. An argument over who gets more luggage space is one of these. Better have separate luggages which contain only the most essential. The key is always pack light so you have more space for souvenirs. If you are going to Southeast Asia during the dry months and summer, you practically don't need much. Clothes are also cheap to buy so it's better to get some of the clothes you need in your destination.
Patience
There are annoying things that your partner will do during the trip that you don't see back home. You have to exert extra patience in dealing with one's quirkiness unless you want to end up fighting.
Relaxed mind, positive attitude
There will be unexpected events that will happen during your travel such as flight cancellations due to volcanic eruption or flooding in your paradise island. Having a positive attitude coupled with a sense of humour will make things bearable for both of you. If one of you gets impatient for waiting hours at the airport, one should remain calm. If you can make fun out of the dire situation, the better. It means you can weather all storms in your relationship. Travelling should be a wonderful and enriching experience.
Quoted: http://sg.news.yahoo.com/tips-avoid-breakdown-road-080004328.html
Love Never Fails
It is impossible for us to perceive God in His entirely. This occurs for several reasons, one of which is the fact that God exists in a supernatural realm we cannot often physically perceive. Most people are not aware of the spiritual events that are taking place around them at any given moment. We are not given to dwelling on the fact that we really are never alone. Angels and demons surround us, as does the presence of God.
God has many titles and names, but we have not all experienced God in the same way. Over time, we all come to appreciate God more, and we understand more of His character, but no one fully knows God while they here on earth.
Whether we like it or not, we are limited in our perception of God. And this means that we are incapable of fully loving God in the way He deserves. Hannah Moore challenges us by saying, "We are sometimes inclined to suspect the love of God to us. We are tool little suspicious of our lack love to Him."
But at the same time, that is why He wants us to discover Him, rather than be forced to know and love God. Forced love is never very special. We are not called to love God because we have to, but because we want to.
As we discover God, we come to realize how love and victory are tied together. 1 Corinthians 13 describes the characteristics of love, and the importance of love above all else in our lives. It is through loving others faithfully that Christ's victory is achieved.
Living Life
God has many titles and names, but we have not all experienced God in the same way. Over time, we all come to appreciate God more, and we understand more of His character, but no one fully knows God while they here on earth.
Whether we like it or not, we are limited in our perception of God. And this means that we are incapable of fully loving God in the way He deserves. Hannah Moore challenges us by saying, "We are sometimes inclined to suspect the love of God to us. We are tool little suspicious of our lack love to Him."
But at the same time, that is why He wants us to discover Him, rather than be forced to know and love God. Forced love is never very special. We are not called to love God because we have to, but because we want to.
As we discover God, we come to realize how love and victory are tied together. 1 Corinthians 13 describes the characteristics of love, and the importance of love above all else in our lives. It is through loving others faithfully that Christ's victory is achieved.
Living Life
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