Thursday, October 30, 2008

How to Save Money for Retirement

Many people look forward to the day that they will be able to retire and pursue leisurely activities. The pension offered by the companies where you worked during your career, however, may not be enough to provide you with the monthly income to support the lifestyle that you would like to lead. In addition, you may want to leave money for your children and grandchildren. If you save money for retirement, you can supplement your income.



Step1Determine how much money you will need each year when you retire. This estimate should take into account the costs associated with day to day activities, travel and insurance costs.

Step2Calculate how much money you will receive each year from your pension. This will be based on both your salary and years of service to each of the companies for which you worked, as well as the retirement plans that they offered.

Step3Calculate the Social Security benefit that you will receive after retirement. From each paycheck that you receive, up to an annual maximum, money is deducted and contributed toward your Social Security benefit. Based on the amount that you contributed over your career, you will be eligible for annual payments.

Step4Determine how much money you need to save for your retirement. This will be based on the amount of money that you have saved to date, the rate of return you expect on your savings, your pension and Social Security benefits, how much you plan to spend after you retire and how long it will be until you retire. Based on your anticipated income and expenses, you can determine how much money you need to save toward your retirement.

Step5Take advantage of tax deferred retirement investment options. Investments such as 401(k) and 403(b) accounts allow you to invest money before you pay taxes on it, letting it grow tax free until you withdraw it. If you are in a lower tax bracket during your retirement, you will save money on the taxes that you must pay.

Step6Save whatever additional money you need in traditional investments. While you must pay taxes on these savings and the interest that they earn, you will be able to access the money before you retire if you need it.

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ENGLISH IS HARD TO LEARN

No wonder the English language is so very difficult to learn:

We polish the Polish furniture.
He could lead if he would get the lead out.
A farm can produce produce.
The dump was so full it had to refuse refuse.
The soldier decided to desert in the desert.
The present is a good time to present the present.
At the Army base, a bass was painted on the head of a bass drum.

The dove dove into the bushes.
I did not object to the object.
The insurance for the invalid was invalid.
The bandage was wound around the wound.
There was a row among the oarsmen about how to row.
They were too close to the door to close it.
The buck does funny things when the does are present.

They sent a sewer down to stitch the tear in the sewer line.
To help with planting, the farmer taught his sow to sow.
The wind was too strong to wind the sail.
After a number of Novocain injections, my jaw got number.
I shed a tear when I saw the tear in my clothes.
I had to subject the subject to a series of tests.
How can I intimate this to my most intimate friend?
I spent last evening evening out a pile of dirt.




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The Greatest Things About Life

Yeah, many times life is tough but you can’t dwell upon those times. Life should be a fun adventure where you learn something from every little event. Here’s what I think makes life great and worth living!



You’re in control - YOU control your destiny. All the odds can be against you, steering you in the wrong path but you can easily shift your life in the direction you really want to go.

You’re not in control - This may be a contradiction to what I just wrote but there are times when you are not in control of events in your life. Instead of resisting you have to see where these events lead. Most of the time it will bring you to a better place because everything does happen for a reason.

Family - Family is extremely important in life. They can be your toughest critics and can be your greatest motivators whether they know it or not. If you don’t have a family create your own with a group of people that you deeply trust or join an online community which interests you. You will be surprised at the type of “electronic family” you can create.

Dreaming - I’m not talking about dreaming while you’re sleeping. I’m talking about dreams that keep us going. You may dream about a new house, new car, a better life, more money, finding the perfect woman or man, a better world. Dreams become reality and knowing that makes life easy.

Learning - You never stop learning. Some people say you learn something new everyday but when you are very observant you can learn hundreds of new things a day. Learning shows that you are open-minded and getting the most out of life.

Hard Work - If you’ve never worked hard in your life you aren’t living life! When hard work is accomplished it brings you an amazing sense of achievement and sometimes huge rewards.

Helping others - The joy and happiness that comes from helping others cannot be bought. If you can’t help others you can’t help yourself.

Being apart of the world - Being a part of something that is so massive and is always evolving is exciting.

You can change the world - Being able to change that same world you’re apart of. Imagine you could live on Earth but couldn’t change anything about it? What would be the point?

Witnessing life - One of the greatest things about life is witnessing others’ lives. Watching people grow, succeed, interact, and just live life.

There are plenty of other smaller things that make life so enjoyable as well. So go out there and live life! Cherish what you have and what you don’t have, it makes you and your life interesting.

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Why are oil prices so high?

What is driving oil prices so high?

The recent jumps in oil prices can be linked to four things - fears over supply shortages, political tensions, a weak dollar and strong demand.

Reports from America's Energy Information Administration have revealed that oil stocks in the US are much lower than expected, sparking concern over a lack of supply ahead of the winter months.



And bad weather conditions in the Gulf of Mexico have forced Pemex, Mexico's state owned oil company to halt a fifth of its production.

Meanwhile a series of events have led to strained relations in the oil-rich Middle East.

America, the world's largest oil consumer, has accused Iran's Revolutionary Guards of supporting terrorism by backing Shia militants in Iraq and imposed economic sanctions on Iran - the world's fourth largest oil producer. The move could trigger a confrontation between the two countries rattling supply of oil which is already scarce.

The tensions add to other fears that military action between Turkey and Kurdish rebels in northern Iraq could disrupt supplies from the world's third largest oil reserves. Conflict between Israel and Lebanon has also sparked worries that hostilities in the Middle East may affect oil output in the wider region. Iraq, Iran, Kuwait and Saudi Arabia between them account for 20% of global supplies.

The US's crumbling housing market and the knock-on effect on the economy has pushed the dollar to record lows against the pound and euro this year. This has pushed up speculative buying of oil by investors trying to hedge their losses. Analysts say that another interest rate cut by the US Federal Reserve this week, as is expected, will place further downward pressure on the dollar and drive up oil prices even higher.

Volatility in financial markets from the credit crunch has also increased demand for oil. Much of the money poured into markets by central banks to ease the liquidity crisis has found its way into energy and commodity markets.

Will demand continue to be this strong?

There does not seem to be any sign of easing in demand. Rapidly growing economies like China and India continue to suck in oil at a soaring rate. China is the world's second largest consumer of the fuel, overtaking Japan in 2003 and closing in on the US with demand for oil growing at about 15% a year.

The International Energy Agency says that demand will rise by an average of 2.2m barrels a day next year, compared with the 1.5m barrel rise seen this year. It adds that annual demand will rise 2% up to 2012, while other projections suggest demand could from about 90m barrels a day to as much as 140m over 25 years.

This will put more strain on prices amid supply concerns.

Is there anything that can be done to boost supply?

Markets are constantly looking towards the Organisation of Petroleum Exporting Countries - the world's leading oil supplier, to raise production in order to deflated the price bubble.

It recently bowed to pressure by raising its production quotas by 500,000 barrels a day from November 1.

However, Opec has said that the recent spike in oil prices is down to geopolitical factors and the oil market is well supplied, dashing hopes that it may pump more oil.

But critics say Opec needs to act more aggressively to bring prices down.

Who are the winners from high oil prices?

Oil-rich countries reap huge income from rocketing oil prices. Wealth generated from oil has supported president Hugo Chavez's efforts to reshape the Venezuelan economy, by funding extensive social programmes and rejecting US criticism of his policies.

In Russia, high oil prices have underwritten president Vladimir Putin's attempts to exert state control over the country's sector.

Companies like ExxonMobil and BP are also making large profits.

Who suffers from costly oil?

High energy prices make life more expensive for consumers and businesses and could spill over to other areas of the economy.

Petrol prices have already risen significantly this year. The price of diesel in the UK is over £1 a litre, while petrol is at around 98.39p, in touching distance of the 98.54p peak in August 2006.

Competition between supermarkets has helped hold back price rises but this is unlikely to last and a new all-time high for petrol prices could be set very soon. Some rural areas are facing £1 a litre for petrol at the pumps and this could become a reality for many others.

Petrol prices have increased by more than 10p a litre this year, meaning that UK drivers are spending nearly £7m more each day on petrol than at the start of the year. The average UK driver spends £13.29 more a month on petrol than last year.

Utility bills are also likely to rise as suppliers face higher costs due to increased oil prices.

The higher costs may translate into price rises on the high street, which would come as a blow to households already feeling the pinch from higher interest rates and modest growth in earnings.

Higher energy bills, petrol and high street prices may lead to increases in the government's consumer price measure of inflation.

A string of interest rate rises by the Bank of England has helped bring the inflation rate down to 1.8%, below its 2% target, having hit a decade-high of 3.1% earlier this year.

In terms of the wider economy, there are fears that high oil prices could push a country into a recession. This is what happened to the US in 1980 and the what caused world downturns in 1975. The Bush administration has expressed concern about the high oil prices at a time when the US economy is already expected to slow significantly next year.

Where will the oil price go next?

In 2005, investment bank Goldman Sachs predicted that oil prices could eventually top $100 a barrel. This now appears to be a real possibility if the current market conditions and political situation hold. However, analysts also say that the market remains very volatile.

Furthermore, the International Energy Agency also points out that after taking inflation into account, oil prices are still below the levels seen in 1980 when a barrel of oil - in today's prices - was over $101


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