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How to Harvest the Rewards of Retirement

Third in a four-part series
Introduction• Step One • Step Two • Step Three • Step Four

Step 3
Compare Your Needs and Resources: Will You Have Enough?
The next step in retirement planning, as with any budget, is to compare your expenses and your income. Do this by completing the brief worksheet below:

1. Expected monthly retirement expenses: $____________
(include items such as housing, food, utilities, insurance, taxes, health care and so on)

2. Expected monthly retirement income: $____________
(include Social Security benefits, employer's retirement plan, post-retirement work and any assets that may provide income such as retirement accounts like IRA’s and Keoghs, savings or investments in stocks, bonds and mutual funds)

3. Subtract from income $____________
(If your anticipated retirement income exceeds your expenses, congratulations! You’re well on your way to achieving your retirement goals. Many people, however, may find that they have a short-fall, or gap, between the expenses they project for retirement [which represents the lifestyle they anticipate having) and the amount of income they can expect.)

Tips for Closing the Gap

Maximize tax-deterred investing. In the time left before you retire, make full use of the tax-advantaged retirement plans available to you -- those offered through your employer and personal plans, such as IRA’s. Money grows fastest unhindered by taxes.

Consider deferring retirement. Continue working a year or two past your Social Security retirement age, saving as much of your earnings as possible. Not only will you have the benefit of extra savings, but you may increase your Social Security benefits (depending on your date of birth) and your retirement payout, too.

Reduce debts and spending. You'd be surprised how easy it becomes to rein in your expenses once you become more aware of what you're actually spending. Vigorously track all your expenses for a mouth or two and then reduce accordingly.

Consider your home as an asset. Some people who need to supplement their retirement income use "reverse mortgages” (home equity conversions). These allow people to tap into tbeir equity without selling their home.

Plan to work in retirement. A few years of post-retirement work (if you save your wages) can help you fund your later retirement years. Wages earned in retirement may help you keep pace with inflation plus your employment my quality you for valuable group benefits, such as health insurance. Remember, however, that work during retirement may affect your Social Security benefits.
How Work Affects Social Security Earnings

Age	Maximum Earnings	Reduction in Benefits
Under 65	$670/month	$1 for every $2 earned above limit
65-69	$930/month	$1 for every $3 earned above limit
70+	No maximum	None

This information has been provided to you courtesy of Ministers' Life, Ascend Financial Services, Inc., Securities Dealer, member NASD/SIPC. 98-0227-85002R