How do you determine how much money you will need in retirement? A lot depends on the retirement lifestyle that you desire. A person who wants to travel and has a large bucket list will need more money than one who has simpler needs. There are many schools of thought about how much money is necessary and we will look at one of them here.

The 80% Rule is a good guideline for those a long way from retiring who want to, at a minimum, retain the standard of living they had before retirement. Many financial planners suggest that 80% of your pre-retirement income will give you a retirement standard of living that is substantially similar to your pre-retirement standard of living. This is based on three assumptions:

First, you will not be paying payroll taxes (Social Security and Medicare) or making pension contributions (CSRS or FERS). For most federal employees, these mandatory taxes and contributions take 8.45% out of our paycheck. You will also not be contributing to the TSP out of your retirement income. Some employees (those hired on or after 01/01/2013 and special category employees) contribute more for their FERS pension and will, thereby save more after they retire.

The second assumption is that your mortgage will be paid off. Only you know if this will be true. A 2011 report from the Consumer Financial Protection Bureau said almost 1/3 of Americans 65 and over still had a mortgage and the average balance was $79,000. This report, though five years old, was cited in recent articles in the Los Angeles Times and on Bloomberg.com.

Third, your other expenses will be lower. Expenses that might go down are commuting, clothing, and food outside the home. Of course travel and recreation expenses might increase.

So, how do you get to the point where you will have 80% of your pre-retirement income? It requires significant and disciplined saving in the TSP and other retirement investments. Well look at a couple of examples and try to estimate how much we will need to save over and above our federal pension and Social Security. In these examples, we are looking at a federal employee who retires at age 62 after 32 years of service with a high-three salary of $100,000. Both of the examples are for regular employees.

If this employee were CSRS, her pension would be $60,250 and she would likely have no (or very limited) Social Security. She would be roughly $20,000 short of the 80% goal.

If this employee were FERS, her pension would be $35,200. Her Social Security would likely be in the vicinity of $20,000, giving her a total of $55,000. She would be roughly $25,000 short of the 80% goal.

This shortfall of 20% to 25% would have to be made up from sources such as the TSP or other retirement savings if these individuals were to have the same standard of living after retirement as they did before retirement. If we were to use another Rule put forth by financial planners, the 4% Rule, this would argue for a TSP balance in the vicinity of $500,000. The 4% Rule states that an individual has an excellent chance of not running out of money over a 30 year period (the age of 92 for the person in our example) if they begin withdrawing from a balanced portfolio at a 4% rate and then adjust that rate annually for inflation.

So, is it possible to have a half million dollar balance in your TSP at the time you retire? Well, it depends on how much money you have in your TSP today and how many more years you have to work. If youre in the early part of your career its not at all out of the realm of possibility that you could have more than $500,000 at retirement. The TSP website has several calculators available, including one called How Much Will My Savings Grow?, that can help you determine where you will be in the future. Of course, it asks you to make assumptions about your future salary and future investment growth, but it can give you an idea.

This article has looked at only your federal retirement benefits (CSRS or FERS pension, TSP and Social Security); we havent looked at other resources you might have such as IRAs, real estate, etc. Regardless of what were looking at, it is to your advantage to save early and save often.

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80 Percent Rule for Retirement - FEDweek

When VintageBurtMacklin, as the Reddit user goes by, asked why everyone is advised to save so much for retirement and if it is really the right move the commenters of the personal finance thread of the online discussion site responded in full force.

Apparently, they have been paying attention to the news of the looming retirement crisis affecting the country.

VintageBurtMacklin shared his scenario: he took a new job after welcoming a new baby, and analyzed his budget, keeping in mind the typical advice that retirement savings should be maxed out before moving on to other financial goals, such as paying off a house or saving for college and new cars. While I understand the importance of saving for retirement, it seems to me that saving 12% of my pre-tax income will generate more than enough savings for our retirement goals, the Redditor said. He is 25, earns $80,000, expects to retire at 65 with a 6% estimated return and is contributing $900 a month before the 4% employer match that would leave him with about $2.5 million, or about $75,000 withdrawn annually, he estimated). He wondered if prioritizing retirement was the right decision, or overkill.

See: Money Milestones: This is how your finances should look in your late 20s

He got his answer. Reddit users took to the platform reminding him of other expenses hes not considering, such as possible illness, job loss, divorce, a stock market crash, health care and other long-term care planning, and even taking care of parents when they get older (caregiving is not just a physically demanding role, but a financially demanding one).

Your calculations are figured for perfection, one user wrote. Also remember your kids can borrow for college but you cant borrow for retirement. They also tore into his estimations explaining that interest rates are just coming from all-time lows and that there is no guarantee he will see a 6% annual return for the next 40 years. How does your planning work out if the market returns 3% per year in real terms?

Other commenters added that there are so many unknowns in the next four decades. I think its good to maximize retirement savings when you can as there may be periods of your life where youre unable to do so for one reason or another, SpidermansMom said. People shared personal stories: that user said her husband fell ill and lost his job, and they suddenly went from two salaries to one. He was too sick to watch their son, who stayed in day care, and she couldnt save as much for retirement, but felt comforted by the fact they had been maxing out their retirement plans for years before.

Another user said his perception of his retirement changed after his dad died at 69 and he realized hed personally rather have 15 solid years of retirement compared with his father, who only had three. Another shared that his father made $150,000 a year but today is unemployed with no money. Fortunes change, user palsh7 wrote. Dont assume anything. If youre still feeling good at 55, by all means, cut back, but right now you want to invest.

The notion of saving for retirement isnt lost on VintageBurtMacklin, or the people who responded to his post, but thats not the case for everyone. Americans are drastically under-saving for the later years of their lives, and need to take into consideration other expenses they may face when they become a senior citizen. Not all baby boomers are well equipped for their retirement, even though its coming soon: the generation born between 1946 and 1964 expect theyll have $658,000 in their employer-sponsored retirement plans by the time they retire (though the average in those plans is $263,000), according to a Legg Mason survey. Older baby boomers, between 65 and 74, have about $300,000.

Millennials like VintageBurtMicklin, on the other hand, have time on their sides, but many are paying off student debt, balancing other financial responsibilities and questioning if its really worth saving just a few bucks every month for their retirement. (The answer: It is.)

Ultimately, VinatgeBurtMicklin was convinced to keep maxing out his retirement savings for now and re-asses when retirement got closer or another life circumstance arose.

I need to remember that as life changes, I can adjust my contribution levels, he said. Contributing the most now makes the most sense, both considering my financial/family position and the value of compound interest.

Read more:
This person asked the internet if it was necessary to save so much for retirement the response was surprising - MarketWatch

Last week, L.S., who loved her work and achieved national recognition is struggling with the loss of identity in her retirement. Teaching engineers and managers from one-hour lectures to full five days at a time, she noted her sense of self-worth was in direct response to the adulation from her attendees. Without teaching and the consistent feedback she doubted her value. She asks, How does one deal with such a profound loss of identity?

A loss of identity in a society where we are defined by our work can be a challenge especially if the position yielded a bit of power, influence and made a difference. It becomes even more difficult if we felt passionate about the work, achieved recognition and identified strongly with the role.

Identity has a lot to do with validation. In our work world, validation is external and frequently comes in the form of a title, a responsible position, salary and from perks such as a car, expense accounts and being invited to luxurious retreats. Validation also comes from just making a difference and knowing you had a role in creating change.

During retirement, one of the biggest changes is the source of our validation from which we derive value. The shift from a full-time highly-charged career to whatever is next suggests that we may need to diminish the need for external validation and place equal or greater value on internal validation, the feelings that come from within.

We may ask ourselves questions such as Who am I? What is my role? What do I stand for?

Jerry Sedlar and Rick Miners, authors of Dont Retire Rewire! (2007, Alpha Books) outline a four-step process that can help affirm or re-establish an identity in the new life stage.

1 See retirement as a new opportunity.

2 Identify your personal motivators or drivers, i.e., what makes you tick. Examples that serve as motivators are authority, belonging, creativity, prestige, recognition and accomplishment. Consider using the drivers as a guide in selecting what you will do with your time.

3 Recognize the activities you want to pursue now.

4 Develop an action plan for engaging new activities that start to fulfill your vision.

Timing is important. One approach is to have a plan before you retire. The other is to take some time and think about whats next. It may be an opportunity to explore, take some risks and see this time as one of adventure, experimentation and most of all freedom. Much depends on knowing yourself and what goes into making a day a wonderful day a reason to get up in the morning and to smile at the end of the day.

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Lets take the perspective of creating an external identity by giving back. Here is just one example of a new organization with a timely mission.

Generation to Generation Los Angeles (Gen2Gen LA) has launched an inter-generational initiative to actively engage older, culturally diverse 50-plus adults to work with children (08 years old) in underserved communities across Los Angeles County. About 25 percent (220,000) of L.A. County children under 6 years old are living in poverty. Gen2Gen LA is working in partnership with local community agencies to recruit older adults as volunteers or paid staff to help prepare these children for success in elementary school focusing on their education and social readiness. Five communities are part of the first stage of this project: Pacoima, East Los Angeles Boyle Heights/Lincoln Heights, South Los Angeles, South Bay-San Pedro and Southeast Los Angeles. See http://generationtogeneration.org/communities/la/ and go to opportunities. This type of work can bring meaning, validation and a sense of personal identity while making a difference in these childrens lives.

L.S., thank you for your question. Perhaps engaging in this generation initiative would tap your teaching skills, providing a different kind of experience working with those at the other end of the age spectrum. Consider giving equal time to defining yourself from within, answering the question Who am I? Some say that the later years provide the opportunity to be rather than to do. I think both can happen at the same time. Best wishes in finding the right combination that works for you.

Send emails to Helen Dennis at helendenn@aol.com, or go to http://www.facebook.com/SuccessfulAgingCommunity

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Retirement is just a new opportunity - LA Daily News

Did I have you at $1 million?

Look, I actually think you shouldnt worry yourself sick about having millions saved for retirement even $1 million. How much you need to save to have a comfortable retirement depends on so much.

My grandmother Big Mama didnt have $1 million saved. She had exactly $20,000 saved. And you know how much she had when she died some 20 years after retiring?

She had $20,000.

Big mama lived off her Social Security benefit and a small pension. The key was she didnt want for much so she kept her expenses low. She paid off her home before she retired. And she hated debt so she didnt carry any into retirement.

But you may want more.

So what would it take to save $1 million or more for retirement? Heres some reading that may help you achieve that goal. How do I retire with $1 million?

Start with $10,000 and retire a millionaire

Do you need $1 million to retire? Maybe.

Now, heres the thing. Dont read these articles and get depressed. Dont get discouraged. Whatever you end up saving will help. Its better than not saving anything.Retirement rants and ravesIm interested in your experiences or concerns about retirement.

Did you retire early and if so, how did you do it?

Is retirement everything you hoped for?

Are you scared youll run out of money?

Your sharing might help others. So send your comments to colorofmoney@washpost.com. Please include your name, city and state. In the subject line put Retirement Rants and Raves.

Not a rant or a rave but John Wickizer of Arizona offered some great insight about retirement.

Hes 74 and his wife is 75. Both are retired. Its not money he wanted to talk about.

The reason I am writing is to alert those in retirement mode not to get overly caught up the lives of their adult children and grandchildren, Wickizer wrote. Will they at some point in their lives have to face financial challenges? Yes, you bet. Most of us who love our children and grandchildren want to make their lives as easy and comfortable as possible.

But take a pause. Maybe you shouldnt be giving so much,Wickizer says.

We have found the more we give to make their lives easier the more they want and/or need,he wrote. I know a lot of folks out there will say, Just cut them off. If it were only that easy! But there has to be a point of reasonableness, I have to make sure our needs are first met, then anything above our set retirement monies can be considered to aid others! I guess more than anythingits dealing with uncertain times both politically and economically, the state of our old world in balancing on a thin wire, no one knows what will bring our castles tumbling down! Just be wise in your giving! Good luck out there!

Love this advice!

Heres more reading on this topic. 6 Ways to Help an Adult Child Without Going Broke

An open letter to parents who financially support adult children

Id love to hear from retirees who are concerned that they are giving too much to helping adult children or grandchildren. Send your comments to colorofmoney@washpost.com

And if youve been in this situation and cut off the financial spigot help others. How did you do it?

Retirement blogI believe that wealth happens intentionally and this means for me reading as much as I can about all things financial, especially retirement.

In this section of the newsletter, Ill feature postings from various retirement blogs. Recommend a favorite blog post and Ill featured it in the newsletter (and give you credit for spotting it!). Send the link to colorofmoney@washpost.com

This weeks blog post by Squared Away had me at the title: Beach Reads for and about Old Folks

Who wants to spend their beach vacation reading about growing older? These recommendations just might surprise you, Kim Blanton writes.

Retirement assignmentThis week,I want you to do something. Go to ftc.gov and sign up to receive scam alerts from the Federal Trade Commission.

The latestscam alertwill help a lot of grandparents out there: Grandpa spots scammers

This story involves Lou, who knew someone was trying to scam him. But Lou, who is 87, was quick to spot the con, writes Seena Gressin, an attorney with the FTCs division of consumer and business education.

He knew it was a scam, almost as soon as he heard the young man call him grandpa. The caller said hed been arrested for drunk driving, needed money for bail, and wanted Lou to call a lawyer who would explain everything. (All while not telling, mom.)

Read this alert and the common tricks scammers use and then pass it along to someone elderly you know. (This is your assignment too. You may be quick to spot a scam, but others may not be so fortunate).

Every week from now on Im adding this new retirement assignment feature. Theres so much to know and keep watch on once you retired. Whether youre three or 30 years away from retirement you need to plan for the time you cant or dont want to work anymore. This means taking action.

So one week I might ask you to run the numbers on how much you need to save for retirement. Or I may have retirees find a scam seminar to attend.

To become or stay financial savvy, you have to work at it. I also want to hear how your home assignment went. What did you learn? Did the assignment make you change any of your plans? Did it save you money?

Send your comments to colorofmoney@washpost.com. Put Pre-retirement assignment in the subject line. Ill also be open to suggestions on what to assign folks.

Newsletter comments policyPlease note it is my personal policy to identify readers who respond to questions I ask in my newsletters. I find it encourages thoughtful and civil conversation. I want my newsletters to be a safe place to express your opinion. On sensitive matters or upon request, Im happy to include just your first name and/or last initial. But I prefer not to post anonymous comments (I do make exceptions when Im asking questions that might reveal sensitive information or cause conflict.)

Have a question about your finances? Michelle Singletary has a weekly live chat every Thursday at noon where she discusses financial dilemmas with readers. You can also write to Michelle directly by sending an email to michelle.singletary@washpost.com. Personal responses may not be possible, and comments or questions may be used in a future column, with the writers name, unless otherwise requested. To read more Color of Money columns, go here.

If youre viewing this post online sign up to receive Michelle Singletarys free newsletters right into your email box: Your Retirement on Mondays and Personal Finance on Thursdays.

Read and share Michelle Singletarys Color of Money Column on Wednesdays and Sunday.

Follow Michelle Singletary on Twitter @SingletaryM and Facebook

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What do you need to do to retire with $1 million? - Washington Post

Freelancers often have high job satisfaction nearly 8 in 10 say they prefer it over a traditional office job. But so-called gig workers receive much less support than desk jockeys when it comes to planning for retirement.

Anyone who is self-employed is in the yoyo economy, says Ed Slott, a certified public accountant who specializes in retirement planning. Youre on your own (yoyo) in terms of figuring out and setting up your benefits. Nothing is done for you.

Alas, most gig workers are not nailing the job of being their own retirement plan sponsor. Less than 4 in 10 self-employed workers surveyed by financial service firm Aegon report that they are habitual retirement savers.

Granted, its not financially or psychologically easy to siphon off hard-earned income today and tuck it away for four or five decades. But its crucial for young workers to get started early so they can benefit from compound interest.

Heres how to get your own retirement plan up and running:

Create an automatic savings plan. The most important step is to get in the habit of saving, says Catherine Collinson, president of the Transamerica Center for Retirement Studies. The only way to ensure this will happen is to commit to having automatic deposits made into a retirement account from your checking or savings account. And when you have an especially good month, save even more.

Start with a Roth Individual Retirement Account (IRA). You can contribute up to $5,500 this year into an IRA. (Some perspective: thats $106 a week.) If you can manage to pull that off in 2017 and leave the money growing for 40 years at a 7 percent annualized rate, you will have more than $80,000 waiting for you when you eventually retire. Manage to save that much each year for 40 years and you will have more than $1 million.

There are two types of basic IRAs: A Traditional IRA and a Roth IRA. The Roth IRA is your best option as it entitles you to tax-free withdrawals in retirement. Individuals with income below $118,000 and married couples filing a joint return with less than $186,000 can make the full $5,500 contribution this year. Many financial service firms such as Fidelity, Schwab, TD Ameritrade and Vanguard offer a lineup of low cost mutual funds or exchange-traded funds. (See this article for a quick and easy guide to building a diversified portfolio).

Check Out a Solo Roth 401(k) if you can save more than $5,500 a year. Once you are ready to set aside more for retirement you can opt for a SEP-IRA or a Solo 401(k).

You can save in a SEP-IRA (thats short for Simplified Employee Pension Individual Retirement Account) if you are self-employed. A SEP-IRA is akin to a Traditional IRA, in that contributions qualify as a tax deduction in the year you make the contribution. While a regular IRA allows you to save up to $5,500 this year, the contribution limit for a SEP-IRA is $54,000 or 25 percent of your income, whichever is less.

There is no Roth version of a SEP-IRA that allows you to invest after-tax dollars today with the payoff of tax-free income when you retire. (All money withdrawn from a Traditional IRA or a SEP-IRA will be taxed as ordinary income.)

Thats where a Solo 401(k), also known as an Individual 401(k), comes into play. Some brokerages, including E-Trade, TDAmeritrade and Vanguard offer a Solo Roth 401(k) option. The tax treatment is identical to a Roth IRA: you invest after-tax dollars today for the right to make tax-free withdrawals in retirement. There is no income limit to be eligible for a Solo 401(k)-Traditional or Roth version-and you can set aside even more than the $18,000 limit on regular employer-provided 401(k)s.

If you have both a SEP-IRA and a Solo Roth 401(k) you can toggle between them, says Slott. In a year when you have a lot of income, maybe use the SEP-IRA so you can get the tax deduction on your contribution. In a year you earn less and the tax deduction isnt worth as much to you, fund your Solo Roth 401(k).

The rest is here:
The Freelancer's Guide to Saving for Retirement - Barron's

Water-transportation workers face an impending mass retirement of almost a third of the workforce. A lot of the jobs pay well, so why arent young workers flocking to them?

When Capt. Ken Penwells son was looking for a job, Penwell offered to get him work as a deckhand. Penwell captains hopper dredges for Seattles Manson Construction, sucking up dirt and clay from river beds.

But Kyle Penwell didnt want to go into his fathers career.

Dad, I dont want to be gone that long from friends and family like you were, the father recalled his son saying.

Ken Penwell has been in the maritime industry 37 years, and in his first job he was gone for five months at a time. He texts and calls his family as often as possible, but the job has taken a toll. Penwell has been separated from his wife for 10 years.

Penwell is 60 and hoping to retire soon. Hes not the only one: The marine workforce in Washington which includes sailors, engineers, captains and other workers on everything from tugboats to shipping vessels is headed for a mass retirement. Close to a third of the states almost 6,000 water-transportation workers alone are older than 55, according to 2016 data from the Census Bureau.

Were just about at a cliff, said Joshua Berger, director of economic development for the maritime sector of the U.S. Department of Commerce. He says this issue is the maritime sectors biggest concern right now.

For years, young people havent been entering the maritime trades in numbers sufficient to fill holes left by old workers, Berger and other experts say. Seamen, captains, pilots, engineers, shipbuilders, dock workers, and even galley cooks, among others, are getting older and older with few qualified people to take their place.

Some sectors are in crisis mode: This problem could keep Washington State Ferries (WSF) from sailing, according to ferries spokesman Ian Sterling. Approximately 40 percent of the ferry systems vessel employees are eligible for retirement in the next 5 to 10 years, and around 88 percent of the ferries captains.

Frankly, we are already too late to address our problem, Sterling said.

Maritime workers help support a $17 billion industry in Washington. The average maritime laborer in Washington made almost $67,000 a year in May 2016, according to the Bureau of Labor Statistics; a captain, mate or pilot made almost $84,000.

So why arent young people going down to the docks to get jobs like their parents did? In answers to this newspapers callout to readers, mariners gave a range of reasons: schools steering students toward college and away from blue-collar labor, the training and tests hopeful mariners have to complete, the tough nature of the work, and notions that the industry is old and dirty.

Maritime labor isnt easy. Robert Robison followed his father into tug boating, but he understands why many of todays young people dont want to do it. Hes 57 and has worked on tugboats for 29 years, and hes retiring as soon as possible.

Id retire today if I could, Robison said.

Robisons work in the ocean division of tug boating takes him across the Pacific. He recently returned from a 90-day trip from Seattle to Hawaii to Korea to Japan to Russia and back.

This work isolates him from life on the mainland: In the past, hes been called to sea for months and months with little notice.

Someone says, Im having a party a wedding in September, can you come? Robison said. I dont know if I can make it.

When Robison started in tug boating, the only way he could call his wife was at pay phones wherever the ship stopped. Hed wait in line with change, call home, and sometimes his wife would be at the store.

Its brutal if you have small kids, Robison said. Its extremely hard on marriages.

But Robison has been married 28 years. Today, ships have internet, but on his tugs, its as slow as dial-up used to be, he says.

When Robison is at sea, he works four hours and then rests for eight. The work is often physical. A few weeks ago, he tore the rotator cuff in his left shoulder while lifting a 100-pound tow shackle.

During rest shift, hes often so bored hell sleep to make the time pass faster. Theres not much to do on a small tug like the Michele Foss, which is the size of a big double-trailer with two locomotive engines down bottom.

Its like being in jail on that boat, Robison said.

Not every maritime job is as hard as Robisons. Many tug boaters deploy for only two weeks at a time. Shipwrights and longshoremen dont have to go to sea, and ferry workers can come home after every shift.

But for some, the sea is a welcome change from life on land. Geoff Dickgieser is a student at Seattle Maritime Academy who is interning on a steam ship in the Bering Sea.

All the problems and complications of life at home are far away, Dickgieser said via email, his only steady connection with the outside world when hes at sea. Theres really nothing you can do about them from out here, so they tend to just fall away.

The days of walking down to the docks and getting a job are long gone. Today, many entry-level jobs require hours of training and certifications from the Coast Guard. Crews on ships are smaller, and each job requires more skills than it used to, according to Vince OHalleran, Seattle branch agent for the Sailors Union of the Pacific, which represents around 1500 mariners in Washington.

In 1970, a 14,000- to 16,000-ton ship would have a crew of 56, OHalleran said. Today, 21 can staff a vessel twice that size. Todays ships especially large vessels are run by computers and require electricians and crew with knowledge of computer science, because you cant call IT from a ship.

In the old days, jobs were easy to get, plentiful, and cities were full of mariners. It was easy for people like Robison to walk off the street and walk onto a tugboat, Robison said.

Today, students dont hear about maritime jobs in high school, according to many advocates and mariners.

How do we get past the perception that the trades are for if you couldnt get into college? said Sam Laher, a shipwright who teaches in the Wood Technology Center at Seattle Central College (SCC). Laher is the son of a lobbyist and a lawyer who wanted their son to go to college. But college wasnt for him: He dropped out and joined the Coast Guard in 1995.

Laher had always wanted to work with wooden boats, so after he left the Coast Guard, he enrolled in SCCs marine-carpentry program in 2002.

Theres no one to work on these boats, Laher said. Marine carpentry is seen as a dying trade.

Its not just wooden boats that need workers. Vigor Industrial, the dominant shipbuilder in the Northwest, has been struggling for years to find enough job applicants for welding, pipe-fitting and other shipyard jobs. Sue Haley, Vigors executive vice president of human resources and administration, has been working on this problem for over six years.

This is definitely my life here, Haley said. We have craftsmen here who are in their 70s.

The company has partnered with public colleges to open training centers in Alaska, Portland and Seattle. In 2013, it worked with South Seattle College to open a training center on Harbor Island where Vigor provided the equipment and workplace, and the college provided the instructors and courses.

Vigor hires the majority of the graduates from this program. The result: Vigors average age is 46 today, where it was 54 six years ago.

Intern Sebastian Jewell takes the quartermasters place at the wheel of the ferry Cathlamet on his last run of the day. Jewell will start his senior year at California State University Maritime Academy in the fall, but this summer hes been at work starting at 5 a.m. daily on the Washington State Ferries. The pay is $50 a day.

Jewell is part of a team of 21 interns from Seattle Maritime Academy and California Maritime whove worked in the engine rooms, decks and wheelhouses of Washingtons ferries all summer.

Jewell says the old deck crew have passed on a lot of wisdom to him, from how to navigate between sail boats to advice about deferred compensation.

Theyre the wealth of knowledge, Jewell said.

This summer for the first time, WSF has even started inviting nonmaritime students to come onboard in the hopes that theyll be inspired to go into maritime labor like Jewell.

Jewell grew up in Bellevue, but hes the only one in his family whos ever gone into maritime labor. Hes fallen in love with the ferry system, where he can be home every night and on the water every day.

Every boat has its own feel, Jewell said. Theres lots of wisdom even in the boats themselves.

For these old boats to keep sailing, Washington is going to need to find more young mariners like Jewell.

Visit link:
Washington state maritime labor headed for a retirement cliff - The Seattle Times

Pittsburgh Post-Gazette

Ben Roethlisberger didn't mean to freak everyone out about his retirement Pittsburgh Post-Gazette Ben Roethlisberger started the will-he-or-won't-he retirement discussion back in January, and he says he's not shooting for a replay. I understand, so it won't happen again, he said Monday (while laughing, for the record). Gooood luck. Advertisement.

See the article here:
Ben Roethlisberger didn't mean to freak everyone out about his retirement - Pittsburgh Post-Gazette

We hear stories all the time about people who manage to retire in their 50s, 40s, or even earlier. And while some of those folks might strike it rich in the business world or come from wealthy families, a lot of them don't get to where they are by snagging a windfall or capitalizing on handouts. Rather, they work hard and establish their priorities early on in life.

If you're serious about retiring ahead of schedule, whether that means leaving the workforce at age 50 or sometime in your early 60s, you have a pretty good shot at meeting that goal if you start working toward it soon enough. Here are a few steps to take if early retirement is important to you.

IMAGE SOURCE: GETTY IMAGES.

Retiring early often boils down to making smart financial decisions, at the core of which is knowing where all of your money is going. That's why it's critical to create a budget that maps out your expenses and helps you track your spending. Once you get a clear sense of how much money you have to work with at present and what you're doing with that money, you'll be better positioned to check off the next item on our list: living below your means.

When you work hard, it's natural to want to enjoy that success, whether it's in the form of a nice car, a spacious home, or a string of luxury vacations year after year. But if you're truly set on retiring early, you'll need to make a habit of living well below your means, both now and in the future.

Imagine you currently bring home $5,000 a month and spend every last cent. Unless you somehow accumulate enough savings to replace that income in its entirety, you're going to struggle once you stop working. That's because you'll have gotten used to a certain lifestyle, and the older we get, the harder it becomes to adjust. On the other hand, if you learn to live below your means, you'll be able to not only get by on much less in retirement, but get pleasure out of the lifestyle that comes with it.

You can't retire early if you don't have the savings to support yourself -- it's as simple as that. It therefore stands to reason that the sooner you begin saving, the better your chances of building a suitable nest egg by the time you're 57, as opposed to 67.

Of course, you should always aim to save as much of your income as possible, because the more money you sock away, the more wealth you'll accumulate. But if you give your nest egg ample time to grow, you'll get to benefit from compounding, which could really supercharge your savings.

The following table shows how well compounding might work to your advantage, based on how early you begin your savings efforts:

If You Start Saving $500 a Month at Age...

Here's What You'll Have by Age 57 (Assumes an 8% Average Annual Return)...

22

$1.03 million

27

$680,000

32

$438,000

37

$274,000

TABLE AND CALCULATIONS BY AUTHOR.

As you can see, thanks to the power of compounding, saving $6,000 a year consistently over a 35-year period will leave you with over $1 million, and at a cost of just $210,000 out of pocket. Of course, once you're older, you'll be eligible for Social Security, which you can use to pad your retirement income. But in the interim, retiring at age 57 with $1 million to your name is certainly feasible, especially if you live a relatively modest lifestyle.

Though saving money from an early age is crucial to retiring early, investing that cash wisely is just as important. In the above example, we saw that a $500 monthly contribution could grow to just over $1 million in 35 years if that money sees an average annual 8% return on investment. But that's the sort of return you're really only going to get with a stock-heavy strategy. Though stocks have historically delivered a roughly 9% yearly return, bonds, which are less volatile, haven't performed nearly as well. So while investing in bonds might be safer in theory, getting too conservative could actually wreck your chances of retiring ahead of schedule.

Imagine that instead of earning an average annual 8% return on investment, your $500 monthly contributions bring in just a 5% return. In that scenario, after 35 years, you'd have just $542,000 to work with, which is almost less than half of that $1 million that sounded great just minutes ago. Though it's natural to be wary of the stock market, you need to be willing to take some risks if you want a shot at retiring early. And if you give yourself several decades to ride out the market's ups and downs, you're more likely than not to come out ahead.

Retiring early often boils down to smart decisions and a few sacrifices. But if you're willing to make the effort, you stand a good chance of retiring at an age where you're young enough to enjoy that newfound freedom.

Continued here:
Here's How to Retire Early -- The Motley Fool - Motley Fool

Posted: Aug. 13, 2017 12:01 am

The retirement planning process has been described as a "40 (or more) year journey" from the start of someone's working life in their 20s through retirement in their 60s (or beyond).

However, it is actually much longer, if you consider how long someone can live during retirement. Unlike shorter-term financial planning goals like buying a car, a house, or saving for a child's education, retirement planning can literally take place for seven or eight decades from the start to the end of someone's adult life (e.g., 20s through 80s or 90s).

Workplace retirement planning programs often target a wide swath of worker demographics ranging from recent college graduates in their 20s to soon-to-retire employees in their 50s, 60s, and beyond.

Financial objectives for each group are different, however. The focus for young adults is saving early and often, preferably with automated retirement savings plan deposits.

Other key topics for young adults are repaying student loan debt and basic investing principles to make informed retirement plan investment decisions.

For older workers, the focus of financial education efforts tends to shift to retirement income catch-up strategies, the question of "Have I saved enough money?" the mechanics of applying for retirement income benefits (e.g., Social Security and/or a pension) and making withdrawals from tax-deferred savings plans to comply with IRS required minimum distribution (RMD) regulations and to avoid outliving one's assets.

Older late savers are also often seeking creative options to stretch their retirement savings throughout their lifetime.

Planning principles

Regardless of someone's stage in life and where they are on their retirement planning journey, five retirement planning principles are timeless and apply to everyone:

First, Get Started -- Set a goal and make a savings plan. Determine your retirement savings need with a Ballpark Estimate calculation (see below) and then develop an action plan to save the required amount.

Save Early and Often -- Set up automatic savings plans through an employer and/or investment company so that deposits are made regularly (e.g., 5 percent of income every payday), regardless of stock market conditions.

Invest Part of a Raise -- When you get a raise, bonus, freelance work pay, or other increase in income, invest half of it. If your employer offers "auto escalation," sign up so that raises take effect automatically.

Don't Delay Any Further -- It's never too late to start investing for retirement. If you haven't saved anything yet for retirement, the best day to get started is today. Any retirement savings is better than none.

Stay Educated About Retirement Planning -- Changes to Social Security rules and retirement savings plans are not unusual so it is important to stay up to date via financial publications, media, social media, etc.

Helpful websites

There are many available websites that can help people with personalized retirement planning calculations and other planning tasks related to retirement planning. Below are seven examples:

Ballpark Estimate (American Savings Education Council): http://www.choosetosave.org/ballpark/

Provides a rough estimate of the amount of money that someone needs to save for retirement.

Compound Interest Calculator: http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Shows what an investment deposit will grow to at a specific interest rate over a specific number of years.

Life Expectancy Calculator: http://www.northwesternmutual.com/learning-center/the-longevity-game.aspx (The Longevity Game, Northwestern Mutual Insurance)

Provides an estimated life expectancy based on personal health and lifestyle factors.

My Retirement Paycheck (National Endowment for Financial Education): http://www.myretirementpaycheck.org/

Contains information about eight key retirement decisions organized by topic (e.g., housing).

Retirement Budget Worksheet (TIAA-CREF): https://www.tiaa.org/public/pdf/advice-planning/tools-calculators/A125820_budgeting_worksheet.pdf

The worksheet is a fillable PDF and can be completed using a computer or on a printed hard copy.

Retirement Readiness Rating (EBRI): https://www.ebri.org/pdf/surveys/rcs/2000/fact8-r3quiz.pdf

An online quiz that assesses a person's financial preparation for retirement.

Will You Have Enough to Retire? (CNN Money): http://money.cnn.com/calculator/retirement/retirement-need/

Provides a personalized calculation based upon personal data (e.g., retirement age and amount saved).

Barbara O'Neill, an Andover Township resident, is extension specialist in Financial Resource Management for Rutgers Cooperative Extension. She can be reached at 848-932-9126 or oneill@aesop.rutgers.edu. She also tweets daily financial education messages on Twitter at http://twitter.com/moneytalk1.

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Planning for your retirement is a 40-year journey - New Jersey Herald

SEATTLE How beloved is Edgar Martinez in Seattle?

With his No. 11 flying high from the Space Needle and strewn throughout Safeco Field, Martinez walked from center field to a raucous applause, the current Mariners players standing and clapping in front of the dugout and chants of Edddd-gaaarrrr humming from the crowd.

To his right off I-5 was exit 164B, or E Martinez Dr. To his left was Edgars Cantina past left field, and behind him was an emblem waiting to be unveiled to signify his official jersey retirement alongside Ken Griffey Jr.s and Jackie Robinsons numbers.

All 18 years of Martinezs major league career was spent in this city. To Seattle, Martinez is just as if not more revered as Griffey. And to them, just as deserving of a place in Cooperstown.

For now, Martinezs No. 11 is officially immortalized unveiled Saturday past left-center field by his children, Alex, Jacqueline and Tessa on the same day fellow Puerto Rican Ivan Pudge Rodriguez had his jersey retired by the Texas Rangers.

Baseball, what a wonderful game, said Martinez, who is the namesake attached to MLBs top designated hitter award. Because in baseball, I met my wife, I have a wonderful family, I have all these awards, a street, number retired, I live in an area that is beautiful beautiful lakes, mountains and beautiful people.

I am blessed. When I think baseball has given me everything I have, it gives me more.

He accepted his place in Mariners history alongside many of his former teammates. There was Alvin Davis, Jamie Moyer, Dan Wilson, Jay Buhner and Ken Griffey Jr. sitting behind him. And Lou Piniella, Raul Ibanez, Randy Johnson, Mike Cameron, Harold Reynolds and Norm Charlton spoke in a video tribute.

So the Puerto Rico-born adopted Seattlite is a favorite. But he was also a heck of a baseball player.

Piniella said there wasnt a better right-handed hitter in baseball in the 90s.

And you couldnt pitch him inside.

Mike Piazza and Greg Maddux would know.

Before they were both enshrined into the Hall of Fame, Maddux was the National League starting pitcher and Piazza the catcher when Martinez came to bat in the bottom of the second inning. Piazza recalled Maddux attacking with a cutter, changeup, changeup.

And Im like, Im going to sneak one in on Edgar, Piazza said last year, sitting alongside Ken Griffey Jr. in Cooperstown a day after both received their Hall of Fame plaques.

Boom, home run. Greg is like, What did you call that for? And Im just like, Sorry, man.

Tim McCarver was the TV analyst for the game.

The purest hitter in this game from the left side Tony Gwynn. From the right side Edgar Martinez, McCarver said during the broadcast.

And of course, there was that one now-seminal inside pitch to Martinez that ended the 1995 American League Divisional Series against the New York Yankees the one that scored Joey Cora and Griffey and saved baseball in Seattle.

But that never would have happened had Martinez not mashed the ball one day earlier in a do-or-die Game 4, when he went 3 for 4 with a three-run home run and a grand slam, which broke a 6-6 tie in the eighth inning. His seven RBIs set an MLB single-game postseason record (now tied for the most with three others).

ESPN had ranked that as the 10th best postseason performance by an individual in MLB history. And it came after he won the American League batting, hitting .356 with a .479 on-base percentage. He hit .571 in the series against the Yankees.

Of players with at least six plate appearances against former Yankees closer Mariano Rivera, no one had more success against the all-time MLB saves leader than Martinez, who hit .579 against him (11 for 19 with three doubles and two home runs).

The toughest and thank God he retired Edgar Martinez, Rivera once said about the toughest hitter hes faced and the seven-time All-Star.

How about Pedro Martinez?

The toughest guy I faced I think with all due respect to all the players in the league was Edgar Martinez, Pedro Martinez said. He had to make me throw at least 13 fastballs above 95 (each time we faced). I was hard-breathing after that. Edgar was a guy that had the ability to foul off pitches, and it pissed me off because I couldnt get the guy out.

And his former teammate, Hall of Famer Randy Johnson?

Edgar Martinez is, hands down, the best hitter that Ive ever seen, Johnson said. Im glad I didnt have to face him too much. Having seen him play from 89 to all the way when I left, I got to see him a lot against great pitchers. Like I said, hands down, he is the best pure hitter that I got to see on a nightly basis. And I hope that his time comes soon, that he gets a phone all stating that hes a Hall of Fame player, because he is.

Cal Ripken Jr. thought so, too. A year after Griffeys jersey was retired here and he entered the Hall even saying in his induction speech, Yes, (Martinez) belongs in the Hall Ripken narrated a video tribute just before Martinezs speech.

As Ripken neared the end of the video, he ended with this:

Eighteen years with one team, in one city Seattle. Edgar, your baseball journey is far from over. And well be there with you when that door opens as your name echoes throughout the Hall.

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Edgar Martinez's jersey retirement renews call for Hall - The Spokesman-Review