Free Retirement Planning Tips

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You could get whiplash trying to listen to people advise you about how to save enough for retirement and how long you’ll need to work.

As you get older, you think about the subjects more, as the once distant drumbeat gets louder.

My ignorant bliss about retirement planning 20 years ago has disappeared.

Tami Luhby’s thoughtful cover story today aims to puncture myths and tell truths.

It’s far from a pretty picture - some of what people have told you isn’t going to work out easily or at all.

After several generations of substantial help from the government and private business, we’re on the road to greater self-sufficiency in retirement.

So people have to recalibrate their thinking and planning.

As Luhby reports, the average retirement age declined slowly over many decades.

Now it’s headed in the other direction.

Mind you, there’s nothing bad about working, particularly in a satisfying job, and improvements in health care are aiding us in living longer and better.

But the formula is not as simple as it seems, because it’s not always possible to work as long as you’d like, and the jobs available in later life may not be so attractive financially and otherwise.

One of the biggest problems is health.

We may live longer, but that doesn’t stop people from having serious illnesses as they age that severely restrict their working.

We in our 50s and 60s are part of a much-discussed “sandwich” generation.

On top of that is an employment world that may allow people of all ages to keep working but often favors the young.

Many still in the workforce in their 60s and 70s, and some in their 50s, are people who’ve lost higher-paying jobs in downsizings and moved into lower-paying service positions such as salespeople at “big box” stores.

You can’t turn back the hands of time, so you have to concentrate on what you can do.

That means thinking harder about the longevity prospects in various careers before plunging in.

It involves keeping skills sharp, by continuing education and training efforts.

On the investment side, it argues for even more farsighted planning.

“It shows the importance of saving early,” Luhby says of her reporting.

-Adam

This post is a summary of the below article, to get the full article click below:

technorati tags:retirement, planning, saving

Will you have enough money in your retirement? If you’re like many baby boomers, this is one concern you’re all facing. And it’s not just middle class folks either:

“We have found that even with very wealthy individuals they are nervous
about outliving their money. A big part of our job is to provide our
clients with the facts about their future, and in many cases to
reassure them that their focus shouldn’t be to save money, but to enjoy
life.” said Ted Rechtshaffen, President and CEO of TriDelta Financial
Partners.

Here’s an example:

Retire at 65 and setup a 15 year fixed annuity to take care of you for the rest of your life. This is how it used to be. Nowadays, more and more people are living well into their retirement years and are finding they are running out of money. And that 15 year annuity is not enough.

There are several calculators and options now available to evaluate your financial picture to make sure you don’t outlive your money. Talk to your financial advisor and see how you stand and what you can do.

-Adam

The site below is geared towards Canadians:

technorati tags:retirement, planning, outlive, money

Here’s an article from a CPA explaining the top five mistakes he sees by most baby boomers and how you can correct them.

Here’s #1:

1)     It’s Too Late to Start Planning.
Once you reach your 50s or 60s, many people think that the parade has
passed them by. But Half points to the power of compounding, boosted by
the tax-deferred growth offered by IRAs, 401(k) plans, and the like.
So, building up that nest egg may not be too late.

-Adam

Read the article for the rest:

Don’t Be Tripped Up (WebCPA)

(Sept. 29, 2006) - Alan Haft is the president of 5th Avenue Financial, a financial planning firm based in Boca Raton, Florida.

technorati tags:retirement, planning, tips

With the upcoming pension bill that will make it easier to enroll employees in 401k plans, employees will be less likely to leave free money on the table their employers are offering.

Many companies offer a matching contribution to the 401k plan and if an employee does not enroll in any plan, they lose this free money which acts like an automatic 100% return on your money. Some companies match up to 6% a year which is a decent chunk of change you could be losing out on.

Here’s how it may work with some companies:

“…the worker will be notified that he or she will
be automatically signed up and invested in a mix of stocks and bonds
geared to long-term savings – referred to as default investment
alternatives.”

Don’t wait til you’re forced in, start investing now. The longer you have til retirement, the more you stand to make.

-Adam

Business: Retirement planning may get easier (The Nashua Telegraph)

WASHINGTON – The Bush administration unveiled a proposal Tuesday to make it easier for companies to enroll workers in pension plans such as 401(k)s, a move supporters hope will increase participation. … - By JEANNINE AVERSA The Associated Press

technorati tags:pension, bill, 401k, matching, contribution, employer, employee, stocks, bonds