The following advices are only the opinions of the Movement Founder. You do not need to agree.


Work Ethics

We want our members to perform extended career with healthy body and enthusiastic mindset. The purpose of joining this Movement is to help other people. The responsibility will keep our members having good work ethics. We strongly recommend our members to teach younger colleagues all of their knowledge, techniques and experiences without any reservation since our members no longer need to worry about job security. This will bring very good results to the companies that our members are working for.

When our members hate their works for certain reason, we strongly recommend them to stop working, thus drop from this Movement. His or her income will help others but the hatred of work will erode the health of the body and its ill effect will also spread a bad feeling to the people surrounding. Of course, that is against the principle of this Movement. We encourage our members, especially those workaholics, to slow down their pace, enjoy life more, thank their spouse for support and take plenty time off to have good family life.

We also recommend our member to speak to their employers and to get some leave of absence time to spend more time with their family.


Family Issues

Many times to become a full member or Junior Member will have to overcome the strong opposition from family members or spouse.  To get the spouse agreeable to this idea will be difficult. It is best to convince them after repeated consultation with skill. It is not advisable to get into serious disruption of family life in order to join this Movement. To becoming a Full or Junior member, it means equal sacrifice from the spouse therefore we have very high regards for those spouses that do not have the same conviction as the member but still willing to go along.

Sometime it is easier for the spouse to agree if the working member start taking the social security once reach the full benefit age so the family will receive more income.


Legal Issues

When someone is working for salary or wages, He or she is required to pay federal, state or local taxes and social security deductions. Thus the amount that the Full member can contribute will be quite less than the total salary or wage that the employer pay. This Movement is against any attempt to negotiate with employer to reduce to minimize the wages to reduce the tax with the company to donate the balance. Such attempt may have legal issues.


Tax Issues

To make your donation tax deducable, you must file tax return with itemization. The IRS law allows individuals to deduct monetary donation each year up to 50% of adjusted gross income. When the donation is greater than the 50% limit, you can carry over any excess to later tax years up to five years after the donation was made.

If you donate more than $250 worth of cash to any charitable organizatin, you must have a receipt from that organization. 

For Full member, it is recommended to also donate the tax saving due to the large donations. This amount can be estimated by first estimate the tax as if fully retired without the salary or wage then estimate the tax with all the donations with the salary or wage included. The difference is the effective reduction of tax.


Financial Issues

We do not want anyone to join this Movement without first checking to see whether they are financial well prepared for their future retirement.  Americans are in general ill prepared financially for their retirement. According to a 2011 U.S. Census Bureau report, the median net worth for family heads between the ages of 65 and 74 is only $239,400 which is grossly insufficient. In 2007, the Federal Reserve noted that the median net worth for a retired person was $533,100 which was also quite insufficient for most people. New research from the New York Fed in April 2012 shows that Americans in age of 60 or older owe a collective $36.6 billion in outstanding student loans.

Net worth of course is not the only indication of the financial readiness. Incomes like pension plans, social security payment, annuity, rental income etc should also to be considered.

Conventional wisdom indicates that after retirement we will need income from all sources to support at least 80% of our expense before retirement.

To avoid running out money before our life ends, many financial planners indicate that we should not withdraw more than 4% of our savings annually. It strongly suggests that our potential member shall do a full scale calculation to make sure that they are financially well prepared before joining. Current longer life expectancy and higher medical costs must be taken into consideration.

If you want to absolute guarantee that you will never run out money during your retirement for any reason, then even multiple millions of dollars of net worth will not be able to get rid of your fear. People who believe only the money, without any religious faith will have very hard time to become our members.

When our member realizes that due to the changing economical situation they are no longer able to maintain their expected living standard, it is strongly recommended that they will discontinue the membership.

To be financially ready to retire by age 67, says Fidelity Investments — the nation's largest retirement-plan provider — you should aim to have 10 times your final salary in savings.

That's the "magic number," and it applies to investors with a broad range of income, from about $50,000 to $300,000 a year.


Advices to Young People

Many younger people pay very little consideration for the saving for their retirement. Without good planning, without start early age and without strict adherence it is very difficult to achieve the goal of being financially well prepared for retirement. It is never too early to start planning.

We recommend our young Supporters first to figure out the how much will be the future expense when they reach the regular retirement age, then develop a sound financial plan for their 401K plan, IRA account, real estate, and other investments to achieve it.

Our young Supporters are suggested not to indulge in luxuryitems, expensive habits, and very risky investments i.e. day trading. Otherwise it will remain as lofty idea only.

We recommend our young Supporters not to minimize their regular donations for their preparation for the retirement fund.

To be financially ready to retire by age 67, says Fidelity Investments — the nation's largest retirement-plan provider — you should aim to have 10 times your final salary in savings.

That's the "magic number," and it applies to investors with a broad range of income, from about $50,000 to $300,000 a year.

Planning for a seven-figure nest egg may seem to be an intangible retirement savings goal. Trying to set benchmarks along the way — based on your age and earnings — might be more realistic.

Here is the time line in which Fidelity suggests you increase your savings so that you can reach that magic number:

  • In your 20s, put enough away so that by the time you turn 30, you'll have the equivalent of your salary saved.

  • By 40, aim to have three times your salary saved up.

  • By age 50, you should have enough saved to equal six times your salary.

  • By age 60, your savings should be eight times your salary.

  • And 10 times your salary by the full retirement age of 67.

    Of course, life doesn't always fit neatly into a formula. You may need to adjust along the way, be open to saving more or less in any given year, and work toward making up any investment losses. Seeking the advice of a financial planner may be another important step to take to help you reach your retirement goal.


© Delay Retirement for Other People 2012

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