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Creating a Vision for Retirement

By U.S. News & World Report

What is your motivation to retire? At some point, many people begin to dread going to work. A job they used to love is a job they now despise. Reasons may include the market, the economy, new regulations or stock holder expectations. Many companies do not treat their employees as well as they used to, and some workers, especially baby boomers, are ready to move on.

You may no longer like your job, but is that the best reason to retire?

There are other considerations. First, think about your retirement and what you want out of it. You may not have thought further than “I need to leave this job,” but a better approach is to think about what you are giving up and how your new world will look. What will you do in retirement?

Most people have spent plenty of time thinking about the numbers side of retirement: how much money they will have in their accounts, the amount they will get from Social Security and pensions, the cost of living in retirement and the various tax, inflation and return rates. But they have not considered what they will do when they retire.

One of the best ways to prepare for retirement is to address that issue. I complete an exercise with clients in which we think about what they really enjoy doing or what they have always wanted to do but never did. From that exercise, they are able to create a kind of bucket list.

This bucket list can become a true road map for retirement. It can lead you to what you want to accomplish after you retire from work and before you retire from life. Is will also help you create a spending plan. You can build a list of all of the things you will be doing in retirement, and from there, you can build a retirement budget. Understanding your true cash flow in retirement will help you determine if you will ever run out of money.

A few years back, I began working with a couple who had partially retired. The wife had stopped working, and the husband continued to do some consulting. In fact, he was on his third consulting job after she formally retired. During one of our meetings, I asked: What have you always wanted to do but have not done? The wife jumped in with an immediate answer. She said she hated Virginia during the winters. She disliked the ice and snow and the long lines at the grocery stores before an imminent storm. She said the last winter storm caused them to lose power for over three days.

I asked her what she wanted to do about it. She responded that she could not do anything since her husband was still working. Then I asked: Isn’t he consulting, and can’t he do that in different locations? He agreed that he could.

For the next few months, we began to build a plan for them to live outside Virginia during the winter. It started with a two-week trip to Florida the first winter, and then a month, followed by two months. Now, the couple spends about five to six months each year in Florida, Arizona and sometimes even the islands.

It was a great way for them to really enjoy their retirement, but it took different thinking and some planning.

Consider how you feel about your current situation and what you would like to do over the next few years. This planning will help you budget, build a financial plan and invest for retirement. It’s the best way for you to think more about where you are going versus where you’ve been. This is the key to truly enjoying retirement.

More from U.S. News

6 Steps to the Retirement Lifestyle You Want

10 Ways to Build a $1 Million Nest Egg

How Boomers Can Avoid Going Bust in Retirement

Creating a Vision for Retirement originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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