Book Review: Work Less, Live More

The subtitle of this book is, “The Way to Semi-Retirement” although I read an earlier edition which was subtitled, “The New Way to Retire Early.” From reading the editorial reviews it appears the second edition contains more information for late bloomers and more about health care but is otherwise the same.

This book deals a lot with the psychological side or retiring early as well as the financial aspects of early retirement. The author has advice on living below your means, putting your investing on autopilot, how to take 4% forever, and stop worrying about taxes. This is mostly standard personal financial advice with a few small twists but it is good advice and helpful for those who don’t already know it.

The chapters that focus on the psychological aspect of retiring early will probably be more beneficial for those who are already knowledgeable about personal finance. Chapter titles include, figuring out why you want to retire early, do anything you want but do something, don’t blow it, and make your life matter. That gives you a pretty good idea of the subjects covered.

Personally I didn’t find this book all that helpful but that might be because I was already have the early retirement mindset and am knowledgeable about the personal finance topics covered. Judging from the reviews many people have found this book very helpful to their early retirement planning. If you are looking for a “how-to” type of early retirement book than this is probably not the book for you. However, if you are looking for a “why” and “what” type of early retirement book than this book is probably what you are looking for.

View the Original article

Building a Retirement Nest Egg

by Andy Hough on June 21, 2010

The following is a guest post.

For many young adults, planning for retirement is something that is not necessarily in the forefront of things. In fact, a large number of these individuals tend to take this for granted with the belief that there will always be time for this later on in life. Reports show that three-fourths of the 600 eighteen to thirty-four year respondents surveyed in 2008 were in debt. Today, this number is still alarmingly large, add to this the downturned economy in the past few years.

There are many reasons why many people put aside planning for their retirement. For one, they are limited by present day realities, such as paying off student loans. At this age, one also tries to make good investments for the future, such as buying a home and various properties. Another reason, perhaps a somewhat inexcusable reason for getting in debt, is the spend-thrifty attitude many of us have, especially when it comes to making unnecessary upgrades of technology.

While the mindset

View the Original article

Book Giveaway Winner

by Andy Hough on June 18, 2010

The random winner of the book, Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

View the Original article

New Thesis Theme Installed

by Andy Hough on June 15, 2010

There were some quirks in the old theme such as the comments link not showing up until after someone left a comment. Since I already useThe Thesis Theme for WordPress on my other blogs I decided to install it here as well. I still have a lot of customization to do but the site looks basically like it will in its final form. If you find any bugs in the new theme or have an opinion of how it should be customized let me know. And don’t forget the book giveaway. There are only two entrants as of this writing so you have a great chance of winning. To enter just leave a comment on the giveaway post.

Tagged as:thesis theme, wordpress theme

Leave a Comment

Name

View the Original article

Social Security Reform Ideas

by Staff Writer on June 17, 2010

When it comes to the Social Security system, the only absolute facts are that changes must be made to keep it solvent. With the arrival of retirement age for the baby boom generation, the system will have two workers for every retiree by 2030; currently there are 3.2 workers per retiree paying into the system. With the well running dry, there are many ideas about how to fix the problem, and everyone has a strong opinion. There are three basic schools of thought, though with many variations as to how to accomplish each goal.

Raising Taxes

A highly unpopular option with cash-strapped Americans, raising taxes would fill the coffers. Discussions about raising taxes usually center on which taxes can be raised, and for which segment of the population. Raising payroll taxes is the worst case scenario, and instead deliberations have centered on eliminating loopholes in the tax code for wealthy Americans, and the possibility of reinstating estate taxes while earmarking the money for Social Security.
There is an additional element to these negotiations. Though hotly debated around the country, some point out that legalizing immigration could give the government the needed taxes to

View the Original article

Building a Legacy of Good Works at Wesley Homes

Lisa Meinecke joined Wesley Homes as the new Resident Services Director on May 18, 2010. She brings with her 18 years experience as a Director of Social Services in the continuing care retirement industry.  Meinecke grew up in West Seattle and lives with her husband and two children in Fife Heights.

When she interviewed for the position she was truly amazed by the residents and the vibrant community. 

View the Original article

Book Giveaway: Why are We So Clueless About the Stock Market?

This week’s book giveaway is for the book, Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

View the Original article

Resident E-mail Update

wesres.org, the list of names has been turned into Seanet. Once Seanet has created the accounts we will then contact the residents to help them setup their account. If you have any questions please contact the Helpdesk at 206-870-1218. Thanks Dwayne

Share this on TechnoratiPost this to MySpaceShare this on FacebookLine: 7
Message: Too many connections

View the Original article

How a Good Reputation is Earned

Rita Askay pictured at Wesley Homes Health Center in Des Moines, WA

When I met Rita Askay, the Housekeeping Supervisor at Des Moines, she shared how good it makes her feel when a resident or their family members talk enthusiastically about how well they’re being treated by employees of Wesley Homes.

View the Original article

Larger than Life

At the home of legendary mountainer Dee Molenaar with the mural he painted of Mt. Rainier

If you’re from the Northwest, you’ve got a connection with Mount Rainier.  Everyone has a story about Mount Rainier- and no one more than the Northwest’s own legendary mountaineer Dee Molenaar.

On May 6th at Wesley Homes Lea Hill Campus in Auburn, Molenaar will share his life experiences as a mountain climber celebrated the world over for his

View the Original article

A Packed-House And a Spell-Bound Audience

Holding copies of books to be signed, fans of Dee Molenaar enjoy his 5/6/10 presentation at Wesley Homes Lea Hill.

Residents and guests of Wesley Homes Lea Hill were treated to an autobiographical presentation by legendary mountaineer Dee Molenaar whose story proved to be as compelling as it was historically accurate.

A thorough narration on the origin of Mount Rainier was intermingled with stories of the mountain men who made it their home. 

View the Original article

Chef Cary Neff Brings Flavors 450 to Wesley Homes

Residents at Wesley Homes – The Gardens were treated, literally treated to an entertaining and enlightening demonstration by Celebrity Chef Cary Neff today. He talked about using fresh, in-season, local ingredients to create meals that are rich in flavor, low in calories and beautiful to look at.

During a visit to Pike Place Market, Chef Neff found fresh Morel Mushrooms, a rare, sought-after ingredient that is usually over $60 per pound. His presentation lofted the idea that the protein doesn’t have to be the focus of a meal but can rather be a compliment to fresh vegetables and starch, such as risotto.The audience watched and smelled the flavorful aromoa while Chef Neff cooked up Sweet Pea Risotto accompanied by Copper River Salmon skewers sauteed in olive oil and broth.Find out more about Chef Neff, Flavors 450 and the new taste in dining coming to Wesley Homes by calling 206-824-5000. Ask for Carrie or Andy.Share this on TechnoratiPost this to MySpaceShare this on FacebookLine: 7
Message: Too many connections

View the Original article

Make a Shift in Attitude Before Your Health Declines

Chef Neff teaches how to pick a tomato for taste, not looks.

Make changes in your diet to bolster your health.  You’ll feel better, have more energy and be able to maintain your active lifestyle.  That was the advice of Chef Cary Neff, as he entertained a full auditorium of Wesley Homes residents and guests invited to

View the Original article

Veterans Honored At Green River College

Standing: Andy Herron, Bob Witman, Bill Humphries, Mal Bailey, Bill Nelson, Gordie Hefford, Ed Miller, Harry Keiffer. Kneeling: Will Gerring, Doc Huff, Dr. Ralph Reed, Ken Hoben

Wesley Homes veterans were honored on June 3, 2010 at the Second Annual GRCC Veteran Coin Ceremony at Green River College. 

The ceremony was presided over by Deb Casey for Veterans Council Recognition and included presentations by faculty members and veterans Carsh Wilturner, Marianne Jacobs, and honored speaker and veteran Pete Lewis, Mayor of Auburn.

Each resident was presented with a

View the Original article

Does Diversification Protect Your Retirement Savings?

  Published inRetirement

The following is a guest post.

The investment industry has done a wonderful job convincing people that diversification is a no-brainer. Who can argue that it is prudent to put all your eggs in one basket? However, is diversification really protecting you or is it protecting your broker or financial advisor? Warren Buffett, the greatest investor in the world, said,

View the Original article

Catch-Up Retirement Savings Options for Late Starters

  Published inRetirement

If you have not saved enough money for retirement you have plenty of company.  I wrote a little while back noting that most Americans are unprepared for retirement.  Many people don’t get serious about starting their retirement savings until their in their late 40s or even their 50s.  Of course, it is better to start saving earlier but for those of you who have gotten a late start still have a chance to save enough for retirement.

In order to save enough for retirement you will have to save a large percentage of your income.  If you are aged 50 or older you can contribute an extra $1000 to your Traditional or Roth IRA.  If you are self-employed you can contribute even more to your retirement accounts.  If you have a Simple IRA you can contribute an extra $2500 under the catch-up provisions.  If you have a 401k you can contribute an extra $5500.  You can also make catch-up contributions to your Health Savings Account although that will be changing.  Visit irs.gov to verify the amount of catch-up contributions you can make.

In addition to boosting your savings rate up to 20% or more you need to cut your expenses as well.  This will allow you to live on a smaller nest egg.  Making these changes won’t be easy but it is better than running out of money in retirement.

View the Original article

Retirement Article Roundup

  Published inRetirement

Since I have been too lazy to write my own posts for this blog lately I thought I would share with you a few retirement related posts from the past couple Carnival of Personal Finance and elsewhere.

“How to select the right IRA beneficiary” from Wealth Pilgrim.  He basically says the youngest beneficiary is the best beneficiary but read the post to see why.“Ways to trick yourself into saving for retirement” from Pop Economics.  These are some simple behavioral adjustments that could help you save more for retirement.  Plus the site has cool art.“Traditional and Roth IRA contributions and phaseouts” from Smart On Money.  This is something I have posted on before but this post sums up the subject nicely. “Living to 100 and beyond: How will it affect your retirement plans?” from Invest it Wisely.  Living a really long time will definitely impact your retirement plans.

There are always plenty of interesting articles on retirement.  I will post a new article here later in the week.

View the Original article

Saver’s Credit for Retirement Savings Contributions

Categories401K (89)403b (3)5 Stages (5)Annuities (11)Asset Allocation (20)Disbursements (6)Estate Planning (3)Fees (6)General (48)Insurance (3)Investing (47)IRA (34)Medical (1)Mutual Funds (10)Pensions (9)Retirement (128)Reverse Mortgage (5)Roth IRA (30)Scams (3)Social Security (27) Saver’s Credit for Retirement Savings ContributionsFebruary 3rd, 2010  

View the Original article

Proposed Changes to Saver’s Credit

Categories401K (89)403b (3)5 Stages (5)Annuities (11)Asset Allocation (20)Disbursements (6)Estate Planning (3)Fees (6)General (48)Insurance (3)Investing (47)IRA (34)Medical (1)Mutual Funds (10)Pensions (9)Retirement (128)Reverse Mortgage (5)Roth IRA (30)Scams (3)Social Security (27) Proposed Changes to Saver’s CreditFebruary 10th, 2010  

View the Original article

What’s Next…For You?:Book Review and Giveaway

Categories401K (89)403b (3)5 Stages (5)Annuities (11)Asset Allocation (20)Disbursements (6)Estate Planning (3)Fees (6)General (48)Insurance (3)Investing (47)IRA (34)Medical (1)Mutual Funds (10)Pensions (9)Retirement (128)Reverse Mortgage (5)Roth IRA (30)Scams (3)Social Security (27) What’s Next…For You?:Book Review and GiveawayFebruary 18th, 2010  

View the Original article

Most Americans Unprepared for Retirement

  4 Comments

You have probably seen several news reports quoting statistics from the 2010 Retirement Confidence Survey by the Employee Benefit Research Institute. Some of the more interesting figures from the survey are that 43% of Americans have less than $10,000 in retirement savings and 27% say they have less than $1000 in savings. Also only 16% have confidence in their ability to save enough for retirement.

These statistics may not be as bad as they seem. The statistics do not include the value of primary homes or defined-benefit pension plans. Also, you need to consider that some of the survey respondents are still in their 20’s and haven’t had much time to accumulate much in savings.

Even taking these factors into account though it is clear that most Americans need to be doing more in preparation for retirement. They survey showed that many people are unaware of how much they need to save for retirement or how to calculate how much they need to save for retirement. I think it is also clear that without the safety net of Social Security there will be millions of Americans that are never able to retire.

View the Original article

Dividend Investing for Retirement

  Published inInvesting

Dividend stocks make up a major portion of my retirement portfolio. If you do not already have dividend-paying stocks in your retirement portfolio you should strongly consider adding them. By buying dividend-paying stocks and reinvesting the dividends you could have a nice stream of income when you retire.

Dividend-paying stocks have been out of favor the last few years because their small, steady returns didn’t have the appeal of speculative stocks with potentially huge returns. After hundreds of companies cut or eliminated their dividends in 2009 dividend stocks fell even more out of favor. As a result there are many dividend stocks available at good prices.

There are several reasons that dividend-paying stocks are good investments. The first is the power of reinvested dividends. For the period from 1925 to 1995 reinvested dividends comprised two-thirds of the return of the S&P 500. Another reason is that dividends offer protection against inflation. There are many companies that have a history of raising their dividends thus increasing your income. If you invest in fixed-income investments such as a CD or bond your income will not increase and you won’t have a hedge against inflation. A final reason is that after the latest round of dividend cuts most of the cuts should be over and as the economy improves companies could start increasing their dividends once again.

I have several stocks and funds in my dividend portfolio but I won’t make any recommendations here. If you want to learn more about dividend-paying stocks a couple of good books on the subject are The Ultimate Dividend Playbook: Income, Insight and Independence for Today’s Investor

View the Original article

Retirement Survey Results

  Published inRetirement

The people over at ING Direct recently conducted a survey asking how people feel about retirement. The results might be surprising to some. For instance, 1 in 3 Americans over the age of 55 think they will need to save $250,000 or less to retire. I suppose this is possible if they live extremely modest lifestyles or have pensions but I doubt that is the situation for most of the respondents.

Also, 25% to 50% of working Americans plan to rely on Social Security as their main source of retirement income. Looking at what most Americans have saved for retirement I would bet that in actuality over 50% of them will end up relying on Social Security as their main source of retirement income. If Social Security is not kept around in some form there will be a lot of people in the poorhouse.

Visit the survey page to see more results from the retirement survey. If you would like to open a savings account with ING Direct visit my ING Direct referral page.

View the Original article

The Retiring Mind : Book Giveaway

is a new book written by Robert P. Delamontange, PHD. As you can tell from the subtitle this book focuses on the psychological component of retirement rather than the financial component. In the book the author details several self-analytical processes to help you identify your personality type. He then offers suggestions based on your personality type on how to solve problems adjusting to retirement.

I am a ways off from retirement but it makes sense to me that your retirement planning shouldn’t only be focused on your financial needs. Although this blog will remain focused on the financial aspect of retirement one should plan for the aspects of retirement as well. This book can help you plan how you will adjust to retirement.

I am giving away a copy of this book. To enter all you need to do is leave a comment on this post. There is a limit of one entry per person and the book will only be shipped to a U.S. mailing address. The winner will be chosen at random Thursday April 22nd.

View the Original article

“The Retiring Mind” Book Giveaway Winner

Categories401K (89)403b (3)5 Stages (5)Annuities (11)Asset Allocation (20)Disbursements (6)Estate Planning (3)Fees (6)General (48)Insurance (3)Investing (47)IRA (34)Medical (1)Mutual Funds (10)Pensions (9)Retirement (128)Reverse Mortgage (5)Roth IRA (30)Scams (3)Social Security (27) “The Retiring Mind” Book Giveaway WinnerApril 22nd, 2010  

View the Original article

5 Risks to Your Retirement

  Published inRetirement

There are many risks to your retirement savings. Here are five of the more common ones.

Starting too late -  When you are young it seems like retirement is far way.  However, by starting to invest for your retirement while you are young it will be much easier to save enough for a comfortable retirement.

Not saving enough -  Just saving enough to get your 401k match is better than doing nothing but it probably won’t add up to enough for you to be able to retire.  Even the conventional 10% figure probably isn’t enough.  Another bonus to saving more is the ability to retire early.

Lack of diversification – It is possible to be over diversified but most people’s savings suffer from a lack of diversification.  Putting all your money into your company’s stock is a common example.   That didn’t work to well for Enron employees.  You should have your retirement savings in several investments.

Taking too little risk -  People are naturally adverse to losing money.  The stock market slide in 2008 has made even more people risk adverse.  Saving your money in a money market paying 1% isn’t going to allow you to retire.  You need to take some risk.

Taking too much risk -  Examples of this would be betting all your money on one stock or one sector.  This could have a huge return but it could also cripple your chances of retirement.  You also need to move more of your money out of stocks and other riskier investments and into fixed income investments as you get closer to retirement.

That is just a brief overview of potential risks to your retirement savings.  Now that you have an idea of what the risks are you can do further research and educate yourself to avoid or minimize these risks.

View the Original article

5 Questions You Should Ask About Target Date Retirement Funds

  5 Comments

A Target Date Retirement Fund seems like an easy way to save for your retirement.  You just invest your money in the fund that matches your planned retirement date and you are all set.  Of course, investing for retirement is not that easy.  There are several questions you should ask when deciding to use a target-date retirement fund to save for your retirement.

How risky is the fund? -  Not all target-date retirement funds have the same level of risk.  Two funds with a target date of 2025 could have wildly different proportions of equity and fixed-income investments.  You need to decide what is an appropriate level of risk for your goals.What are the fees? -  Funds also differ on the fees they charge.  Paying too much in fees can seriously affect the performance of your target-date retirement fund.  Make sure you are not paying too much in fees.How much should you invest?  -  These funds will not tell you how much you need to save for retirement.  You need to figure that out on your own.Do you have other retirement savings? -  These funds are designed to be your sole retirement investment vehicles.  If you have other retirement savings that will change your investment allocation and you need to adjust accordingly.What happens when you hit the target-date? – Some of the target-date funds are designed to end when you hit the retirement target-date while others are designed to continue and hopefully provide you with an appropriate return on your money while retired.  Whichever is the case with the target-date retirement fund you choose you need to make sure that your investment will provide you with a sufficient income during retirement.

These five questions are a good starting point when choosing a target-date retirement fund.  Be sure to investigate a prospective target-date retirement fund thoroughly before using it to save for your retirement.

View the Original article

retirement

Why Plan for Retirement?

This is a question that I come across quite often when researching and discussing retirement planning and options. Despite the constant news coverage of impending doom in regards to Social Security many Americans are still counting on their social security payments to support them through their retirement. The sad fact is that it simply isn't possible because the money isn't there. Sadder still is the fact that even if the money were there, it is doubtful that it would be enough to get the average American through their twilight years.

Americans are living longer than they have in decades past. In addition to longer lives we are leading more active lives. Gone are the days when retirees sat at home reading newspapers and mowing the lawn every other afternoon. Today's retirees are traveling, taking classes, learning to dance, and trying new things that they didn't have the opportunity to experience while setting aside funds for the future and going about the business of raising their own families. Now they are taking the time to do all these great things and these wonderful activities and pastimes require funds in order to enjoy.

This is the number one reason you should begin as early as possible not only setting aside funds for your retirement but making active plans on methods by which you can invest those funds in order to maximize the potential of limited funds. This is the time that it is best to take your plans, goals, and concerns to a financial planner and see what advice he or she can give you on setting specific goals, better defining your plans, and making the most of your investment means while establishing a realistic investment strategy that will not leave you feeling strapped for cash month after month.

We often overlook the important role that a good financial planner and good planning play in our financial futures. The same could be said of our financial retirements. We need to take every opportunity that is available to us in order to maximize our money. A good financial advisor will know of funds and strategies that we have never heard of. It makes sense to go to an expert when it concerns our family's future. We see experts when it comes to matters of law, health, and taxes-why on earth shouldn't we see an expert for our finances?

Why is it so important to have a plan? The long and short answer to this question is so that you won't end up needing a job in order to put food on your table once you've reached retirement age. The sad truth is that many of our retired citizens are finding themselves strapped for cash financially and barely able to make ends meet. If they are fortunate enough to have homes that are paid for, they often find the property taxes are a little more than they can handle without some sort of assistance. Medications are expensive despite government programs to keep costs down for our elderly, and then there are those who are simply living longer than their original retirement plans had accounted for. Combine all these factors with the fact that the cost of living has gone through unprecedented increases over the last two decades and you have some very real reasons to make plans for your future retirement.

It is best to begin making these plans as early as possible. It is not impossible to recover, however, if you begin the process a little later. The problem is that you will need to make some extra investments along the way in order to make up for lost time. The sooner you begin making plans for your financial retirement the healthier your retirement options will be. The best way to go about this is to define your retirement goals, make plans, and then take your goals and plans to a financial advisor and get his or her input. Investing smarter is much wiser than investing harder.

The Vital Years For Retirement Planning

The Vital Years For Retirement Planning


If you're in your 30s, serious planning for retirement begins now. Odds are you have never taken a close look at your earning potential and long-term needs, or thought much about all the savings and credit options before you. Now is the time to get real about such things because your life is changing in ways that you may only be beginning to appreciate.

For one thing, you're getting older. You're not old by a long shot but the door is starting to close on the certainty of long-term investment gains. "The most powerful force in the universe is compound interest," Albert Einstein famously declared. But the magic only happens through consistent saving over many, many years. Delay is costly. Consider: Had you started saving $5,000 a year in a Roth IRA at age 20 you would today be on track to accumulate $1.9 million by age 65 (assuming 8% annual returns). But now, at age 30, you need to save more than twice that amount each year ($11,200) to get the same result and if you are 40 you need to sock away $26,400 a year. The earlier you begin the less you need to save. In the example above, lifetime contributions that began at the age of 20 totaled just $225,000; at the age of 30, $392,000; and at 40, a staggering $660,000.

Read more: http://www.time.com/time/specials/packages/article/0,28804,1930805_1931673_1931666,00.html#ixzz0nrFwLUvc

Retirement Plans Under Siege

Retirement Plans Under Siege

Get Serious About How Long You'll Live

Get Serious About How Long You'll Live


Get Serious About How Long You'll Live

By Dan Kadlec

 By living into their 80s en masse, the members of this demographic have upset all the mortality tables and crippled our pension system, which is partly why we're in such a mess. Well, guess what? You may live longer than you expect too. Getting a handle on your likely longevity is Job 1 when it comes to planning the rest of your life. Spend a few minutes at longevitycalculator.aarp.org. Assuming decent health and habits, you will be amazed to learn that someone in their 50s today can reasonably expect to live to near 100, a mark that many younger folks will easily surpass. This unprecedented longevity is a blessing, of course. But it's also a game changer in that you'll have to stretch out your assets over a longer period of time, which will give rise to longer careers, bridge jobs to retirement and an explosion in annuities and other products that guarantee income for life. Your greater longevity should also prompt you to lengthen the period you plan to take distributions from your IRA or 401(k). Calculations should be based on a 4% initial withdrawal that rises 3% (not 3 percentage points!) every year to adjust for inflation over 30 years starting at around age 70.


Read more: http://www.time.com/time/specials/packages/article/0,28804,1968812_1968807_1968795,00.html#ixzz0nSWbufFR

Retirement: From Point A to Plan B

If you had a plan for retirement, chances are it has been up-ended in the latest market meltdown. As I mentioned in this retirement blog, Retirement-minded savers and retirees that committed their hard earned money to the

View the Original article

Retirement Decision: RMD versus Roth IRA

As you are painfully aware, the before-tax money you’ve put away for retirement, and which has been growing tax deferred, has a co-owner: Uncle Sam.  The tax laws say you must start withdrawing and paying taxes on this money when you reach age 70

View the Original article

Retirement and Longevity Risk: The Solution

plans do not guarantee you a lifetime income nor do you get a guarantee against losses if you selected market investment choices. Most retirement-minded people would much prefer to have a defined benefit plan that guarantees a lifetime come; however, most companies no longer sponsor such plans because they are too expensive. But, wouldn’t it be nice to have this lifetime income guarantee like your father and grandfather? You can easily create your own defined benefits plan to provide guaranteed lifetime income. Here’s how!

You are generally permitted to remove your money from an employer-sponsored retirement plan when you retire, quit, die, become disabled and maybe borrow from your money if you have a financial hardship. On rare occasion your employer will be enlightened about ERISA regulations and know about In-Service, Non-Hardship Withdrawals provisions. Such provisions, when made available by your employer, permit withdrawals regardless of age, without triggering taxes (must be trustee-to-trustee transferred), while still working and participating in the same employer’s plan. The ISNHW provisions have only recently been brought to the forefront because of litigation associated with the high fees, losses and fiduciary lapses. Ironically, many large firms have added this flexibility to their plans as a litigation-prevention device. Most small businesses have not taken action because they are unaware of the provisions and those responsible for alerting them (outside third-parties who manage the money or administer the plan for the employer) have not done so. The notice has been withheld because (a) the parties advising the small business are unaware or (b) they do not want to lose fees which are based on the amount of money in the plan. If money is withdrawn from the plan, third party fees are likely to be reduced. But, unless you can get your money out of your employer’s retirement plan, you cannot take steps to convert it into a guaranteed lifetime income. If you wait until you retire or quit to move your money, it may be too late because the market values could drop precipitously at any time. Of course, they could also rise precipitously at any time. This

View the Original article

Retirement Investing: Two Back and One Forward

may not cooperate by coming back. If your portfolio was General Motors, Ford, AIG, Citicorp, Lehman Brothers, WaMu, Frontier Airlines, Mervyn’s, Circuit City and other victims of the Great Recession, there is no

View the Original article

Bank CDs Versus Guaranteed Lifetime Income

Written by DrShelby Posted October 7, 2009 at 8:30 am

Lower interest rates have spilled over into banks, and one-year CDs paying 1.5% or less are commonplace. This is a huge decline from a year or two ago when comparable CDs were paying more than 3%. As I mentioned in my Retirement Blog, CD rates are marching in an unclear direction, you may be uncertain about how to keep your income at the level you need and still get the security you have with FDIC. Keep these points in mind: your new rate a year from now may be higher or lower, and CD interest is subject to income taxes. Before you renew that CD with the ridiculously low rate, consider another alternative that offers a guaranteed income stream, with safety, AND can leave you with more money.

View the Original article

The Dangers of Investing for a Lifetime Income

peaked at 14164.53 and then started a dramatic decline until March 09, 2009, when a trough of 6547.05 was reached. This 53.8% shrinkage played havoc with retirees’ portfolios and forced many back to work or slimmed down their lifestyles. If you had $500,000 at the peak and were withdrawing $25,000

View the Original article

Ten Biggest Misconceptions about Fixed Annuities

No other savings vehicle is as misunderstood, under appreciated and maligned as fixed annuities. Most people who can benefit from annuities have been bombarded by misinformation, biased opinions and outright lies. The truth is: fixed annuities are safe because they are guaranteed by insurance companies, a great place to keep retirement money because they pay tax-deferred competitive returns, and all of your money is working 100% of the time. Like all investments, fixed annuities are sometimes not suitable nor should anyone have all their retirement money in fixed annuities.

Sometimes those providing information about fixed annuities have hidden agendas, biased opinions and/or little knowledge. Many personal financial columnists for newspapers and magazines fall into this category: their opinion is tainted by their brokerage background, the agenda is to get you to put your money in market investments that compete with annuities, and their limited knowledge was supplied by the brokerage industry. Why is the brokerage industry biased? Because they offer investments that compete with fixed annuities! In their mind an

View the Original article

Should You Buy Gold as a Retirement Hedge?

This is a question I get constantly on this Retirement Blog. Like most decisions in life the answer is: maybe and maybe not! It depends on what you’re trying to accomplish. Historically, gold has been used to hedge against government failure, inflation, economic uncertainty or as an investment. For example, when governments have been on the brink of toppling (wars, coup d

View the Original article

Making Your Retirement Money Long

What will you do if you run out of money during retirement? What are the consequences if your surviving spouse doesn’t have enough money? These serious questions are reality for many retirees. Nonetheless as I mentioned in my retirement blog, the fear of running out of money  has not kept many retirees from speculating with their retirement money. Much of this

View the Original article

Getting to Know Roth IRA Conversions

Tax-free Roth IRA conversion is a topic that can help many of you have more money for retirement … an important law change in 2010 has been a real game changer. Everyone needs to find out if a tax-free Roth IRA is right for them.

Before we get into the specifics of Roth IRA Conversion, let me tell you a story…

I live in a big city and frequently have to pay to park my car. The other day I was downtown, pulled into a parking garage, briefly read the sign which said $2.00 an hour for hours 1 through 24…I didn’t read the small print which said something about prices could be changed …I took a ticket and parked. When leaving 8 hours later I stopped at the booth and handed the attendant my ticket

View the Original article

Retirement Pension

•Having adequate resources does not necessarily equate to easy choices about asset allocation. I had a terrific start (lots of face cards) but did not want to risk losing the hand by following a strategy with which I was unfamiliar. Additionally, I did not want to let my bridge partner down. In pension land, having lots of money to invest should not equate to a "bet the bank" mentality (i.e. adopting an overly complex approach). Moreover, the interest of beneficiaries (like other partners) must be taken into account.


•Some losses are imminent. Sometimes a few cards are purposely lost in early rounds as a way to gain a superior position for an ultimate win. In investing, markets can bounce around, tempting institutions to pull and run. Establishing trading limits that comport with pre-established goals and risk tolerance levels makes sense. Confusing long-term goals with short-term actions can sometimes be costly and ill-advised.

•Switching partners from time to time offers fresh insights but is likewise hard work. Bridge takes a round robin approach that rattled me at first. After all, if I was winning with a particular partner, why should I have to change? What I've learned is that each new pairing requires a re-examination of the relationship, especially a focus on how to properly communicate with one another. While some investment relationships are ongoing, many are not. The need to clearly exchange mission-critical information is an important skill. Just as any failure on my part to discern my bridge partner's intent during the bidding process can lead to ruin, so too can a breakdown in communication between asset owner and advisor. As the consulting industry consolidates in favor of larger organizations, client communications will be tested as parties get to know each other from scratch. (Note: Interested readers may want to check out "Consultant market set for further contractions," Professional Pensions, April 30, 2010.)

•Skill is essential but sometimes luck dominates. As much as I focus on learning the game, bridge can frustrate. If you are dealt a bad hand, you simply have to get through it, be patient and know that discipline is not a guarantee of high returns. Investing is much the same. A good process is paramount but does not mean that a portfolio's return in any given quarter is going to outbeat a particular target.

•Know where you are going. Journalist Chuck Palahniuk observes that "If you don't know what you want, you end up with a lot you don't." If I stop thinking ahead several plays in bridge, I will unlikely miss my chance to win a particular hand. If an asset owner falls short in proper goal-setting, achieving objectives is going to be hit or miss and could certainly induce all sorts of unpleasant consequences - economic and regulatory.

Finally, bridge requires thought and hard work but can be tremendously rewarding. I learn new things all the time. The life of an investment decision-maker is challenging at best and exposes individuals to tremendous fiduciary liability at worst. Yet numerous professionals make pension stewardship their life's work because it is fulfilling, interesting and satisfying.

Retiring and Mortgage

End of Fed MBS purchases will likely drive up ratesBy Inman News, Friday, April 30, 2010.Inman News
Mortgage rates are holding steady despite last month's wind-down of a $1.25 trillion Federal Reserve program to buy up mortgage-backed securities.
Rates for 30-year fixed-rate mortgages averaged 5.06 percent with an average 0.7 point for the week ending April 29, down slightly from 5.07 percent last week but up from 4.78 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.
Rates on 30-year fixed loans have averaged about 5 percent over the first four months of this year, staying within a band of roughly a quarter percentage point and virtually matching 2009's annual average, said Frank Nothaft, Freddie Mac's chief economist.
The 15-year fixed-rate mortgage averaged 4.39 percent with an average 0.7 point, unchanged from last week but down from 4.48 percent a year ago.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4 percent, with an average 0.6 point, down from 4.03 percent last week and 4.8 percent a year ago.
The 1-year Treasury-indexed ARM averaged 4.25 percent with an average 0.5 point, up from 4.22 percent last week but down from 4.77 percent a year ago.
Looking back to the week ending April 23, the Mortgage Bankers Association said demand for purchase loans was up a seasonally adjusted 7.4 percent from one week earlier as the end of the homebuyer tax credit approaches. Applications for loans backed by FHA and the VA accounted for nearly 49 percent of demand.
Demand for refinancings was down 8.8 percent, the MBA said. Applications for refinancings accounted for 55.7 percent of all applications -- the lowest share since August 2009.
Although the Federal Reserve on Wednesday restated its intention to hold short-term interest rates at historic lows for "an extended period," mortgage rates are expected to rise gradually because the Fed has discontinued its purchases of mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac (see story).
In a forecast published April 12, MBA economists projected that rates on 30-year fixed-rate loans will rise for the next 10 consecutive quarters, to an average of 5.8 percent in the final quarter of 2010, 6.3 percent in the fourth quarter of 2011, and 6.6 percent in the fourth quarter of 2012.

A Financial Planner may be your Best Gift to Yourself

There are many ways in which you can plan for your financial retirement. The first step in making the right moves is always the step that involves actually creating a plan of action that you can follow as a family. Many people focus too much on the now or too much on the later and have a great deal of difficulty when it comes to creating a happy medium for savings and investing.
Throughout our lives we will have both long and short-term goals that need to be assessed, addressed, and often revisited. Whether you need to find a way to pay for your children to attend college, home improvement projects, or a method for saving for your retirement you can find information and assistance for all these things and so much more if you seek the services of a qualified financial advisor.

A good financial advisor will help you find that balance that so many people and families lack. He or she will also help you assess your means in comparison with your long and short-term needs in order to see where your funds would experience the greatest return in order to suit your specific needs with minimal risk. It is important to remember that going with a financial planner or advisor does not eliminate the risks that are an integral part of investing but it does help you learn to better calculate those risks.

Investing is a risky business. Learning how to weigh the odds and go for the prize is the best way to earn the biggest possible return on your investment no matter how modest your investment may be. We are all starting from different means, isn't it amazing to know that we could all end up with very similar abilities when all is said and done and we are living out our 'golden years'?

Good financial planning is the key to success when it concerns your financial retirement. With so few people around the world adequately prepared to retire it is great to know that there are options and assistance that is available to help you get started on your retirement no matter how late in the game it is. Even better is the knowledge that limits are lifted a little once you reach the age of 50 and retirement is much more eminent. This allows those who got a late start on their retirement planning or who have hit a speed bump or two along the way the opportunity to 'catch up' on their investing and work up to the place they need to be in order to establish a more comfortable retirement for themselves and those they love.

401 (k) plans offer some of the best retirement benefits your money can buy at the moment. They certainly allow you to make the maximum possible investment for your money. If you aren't taking your company up on their offer to match your investment in a 401(k) then you should seriously rethink that thought. Seriously, you're throwing away free money.

When it comes to the murky water of retirement investing it helps to have a guide to get you through. Utilizing the services of a financial planner may be the best move you've ever made in your life when it comes to the financial health of your family and your retirement.

When should you Retire

Once you have all the wheels in motion for your financial retirement it is often difficult to wait for that great and liberating day but you must take the time to make sure that there is no detail that hasn't been covered or has been overlooked in the planning process. Most of us worry over whether we'll be able to maintain a certain level of income when we retire and little else. The problem is that maintaining the same level of income during retirement is often not enough to keep things going and take care of all your family's needs during your retirement.

Have you checked out your insurance expenses? You should make a point of checking that all of your current insurance plans will either cover you during your retirement or at least that you have something in order until your Medicaid benefits kick in. This isn't only about medical insurance. There are all kinds of insurance coverage that we need in order to avoid potentially huge amounts of debt during our retirement. Some of the common types of insurance you will need include the following: homeowner's insurance, auto insurance, health insurance, dental insurance, long-term care insurance, and life insurance.

Once you've taken care of your insurance for your financial retirement. Have you established a budget that you and your partner can live with during your retirement? You need to be absolutely sure that you are in agreement on the budget or hard feelings could develop over time. Talking about things can accomplish so much and smooth many ruffled feathers you didn't even know existed.

Have you mapped out plans for things to do both together and individually? This is another thing that is important. While you are a couple you are still individuals with independent needs and desires. Make sure that you both have time and funds set aside to pursue interests that appeal to you as individuals as well as those that appeal to you as a couple.

Do you have any special needs that should be addressed in the budget or in your planning? Do you need a vehicle with handicap access (these cost a lot of extra money in many cases and should be strictly budgeted when making retirement plans) and do you have a little tucked away into your budget for emergencies that may arise?

Other important considerations include what bills you have. Are your student loans paid off? How about those pesky high interest credit cards? Those can add up over time and you need to eliminate as many of these as possible along the way. You should also take great care to make sure that your home is paid for and all the taxes are caught up. You do not want any surprises that might jeopardize your security once you retire.



The list may seem endless but each question is very important in the grand scheme of things. You will want to take every effort to make sure that there are no nasty surprises along the way. Those surprises could mean the difference in you enjoying your retirement and facing the need to return to work at some point during your retirement in order to replace funds that must be spent for emergencies that were unexpected. Once you have all the answers to these questions and the answers are good, then you are ready to retire.