FAQ's

AlphaServices Online | home

About Us | FAQ's

FAQ's

How do I Set Goals?

First, draft a budget to figure out how much money you'll need monthly in retirement. Easier said than done? Not really. Here's what you should consider:

Your major expenses will be for housing and medical care. Of course, you'll also require other necessities like food, clothing, transportation, and household items. With necessities, the question is one of quality rather than quantity. Do you have your heart set on owning your own home, or would you be happy renting or living in your children's spare room? Do you want to continue to own and drive your own car or are you willing to consider public transportation or the help of your children or friends?

Your optional expenses also significantly impact the quality of your life in retirement. Optional expenses include travel, entertainment, hobbies, gift giving, and leaving an inheritance. Can you enjoy retirement if you only visit places within one day's driving distance? Do you want to buy the grandchildren great presents at the holidays or simply send cards?

How do I get a handle on my expenses?

An easy way to get a handle on your expenses is to go through your checkbook and credit card receipts and determine how much you currently spend in each category: housing, medical, utilities, transportation, food, clothing, vacation, children, savings, and so on. If your records are poor, keep close track of every expense for two months (and don't forget to account for expenses that fall outside that two-month period, such as insurance premiums). Then you can decide how much of each of these amounts is relevant in retirement.

How do I start my savings?

The four methods late starters can use to increase savings are:

Reduce expenses

Increase income

Reduce expenses and increase income

Convert current assets into investments

Many of us have had retirement funds and spent them. Emergencies and unexpected shortfalls invariably come up. Therefore, it's essential to get into the habit of preserving current savings, or you will have little chance of ever increasing your savings. This is why a cash reserve fund is essential. Before you can start saving for retirement, you first have to set aside enough money to cover three months' worth of expenses for emergencies.

How do I increase my savings?

So, where do you get three months' expenses while you're trying to save for retirement? Start by reducing expenses at your current income. The best approach is to establish a plan to keep income out of your hands and out of your checking account. Automatic withdrawals from your paycheck into savings accounts and tax-deferred retirement accounts like 401(k) plans put a barrier between you and your money. (In addition, tax-deferred retirement accounts reduce your taxes so you can save more. Many plans also include employer matches, which can double your contributions without increasing your taxable income.)


	AlphaServices Online \| home About Us \| FAQ's FAQ's How do I Set Goals? First, draft a budget to figure out how much money you'll need monthly in retirement. Easier said than done? Not really. Here's what you should consider: Your major expenses will be for housing and medical care. Of course, you'll also require other necessities like food, clothing, transportation, and household items. With necessities, the question is one of quality rather than quantity. Do you have your heart set on owning your own home, or would you be happy renting or living in your children's spare room? Do you want to continue to own and drive your own car or are you willing to consider public transportation or the help of your children or friends? Your optional expenses also significantly impact the quality of your life in retirement. Optional expenses include travel, entertainment, hobbies, gift giving, and leaving an inheritance. Can you enjoy retirement if you only visit places within one day's driving distance? Do you want to buy the grandchildren great presents at the holidays or simply send cards? How do I get a handle on my expenses? An easy way to get a handle on your expenses is to go through your checkbook and credit card receipts and determine how much you currently spend in each category: housing, medical, utilities, transportation, food, clothing, vacation, children, savings, and so on. If your records are poor, keep close track of every expense for two months (and don't forget to account for expenses that fall outside that two-month period, such as insurance premiums). Then you can decide how much of each of these amounts is relevant in retirement. How do I start my savings? The four methods late starters can use to increase savings are: Reduce expenses Increase income Reduce expenses and increase income Convert current assets into investments Many of us have had retirement funds and spent them. Emergencies and unexpected shortfalls invariably come up. Therefore, it's essential to get into the habit of preserving current savings, or you will have little chance of ever increasing your savings. This is why a cash reserve fund is essential. Before you can start saving for retirement, you first have to set aside enough money to cover three months' worth of expenses for emergencies. How do I increase my savings? So, where do you get three months' expenses while you're trying to save for retirement? Start by reducing expenses at your current income. The best approach is to establish a plan to keep income out of your hands and out of your checking account. Automatic withdrawals from your paycheck into savings accounts and tax-deferred retirement accounts like 401(k) plans put a barrier between you and your money. (In addition, tax-deferred retirement accounts reduce your taxes so you can save more. Many plans also include employer matches, which can double your contributions without increasing your taxable income.)