|
|
August 2012
Subscribe to RSS Feed
-
Beyond Compound Interest: The Benefits of Saving Early
Posted: 8/16/2012
By David Ning
US News & World Report
We've all seen the argument for saving early and letting the magic of compound interest do most of the heavy lifting for us, but saving for retirement as soon as possible has additional benefits few people ever mention. If you're still wondering why you should sacrifice that dollar now for a potentially better tomorrow, consider these five ways an early saver benefits:
Read More »
-
What's the Best Way to Save for Retirement When Your Employer Doesn't ...
Posted: 8/16/2012
By Carrie Schwab Pomerantz, Motley Fool contributor
Town Hall Finance
Dear Carrie: I'm 27, and my husband is 32. We're starting to think about saving for retirement. He has a 401(k) at work, but I'm a hairstylist at a small salon that doesn't offer any retirement benefits to its employees. What's the best way for me to save? --A Reader
Dear Reader: First, kudos to you both for some smart thinking. Starting to save for retirement early is one of the most important things you can do.
Read More »
-
Wanted: A Financial Savings Game Plan For Pre-Retirees
Posted: 8/16/2012
By Jim McConville
Financial Advisor Magazine
More Americans are using their long-term savings to pay today's bills and risking a delayed or financially insecure retirement, says Eleanor Blayney, consumer advocate for the Certified Financial Planner Board of Standards Inc.
The main reason: Recent retirees and those on the cusp of retiring have underestimated both how much they needed to save and how long they may live in their post-working world. ?I think you will find that people are feeling that they are saving less,? says Blayne.
Read More »
-
Late start retirement plan - 19 years to go
Posted: 8/16/2012
By Walter Updegrave
CNN Money
(Money magazine) -- I'm 46, self-employed and clueless about retirement. I can afford to put away $500 a month, but don't even know where to begin. I'd like to retire at 65, but wonder if that's even possible. Can you help? -- George, Alsip, Illinois
You're getting a late start here. Ideally, by the time you're in your mid-40s, you should already have savings equal to three to four times your annual income tucked away in retirement accounts, according to "Your Money Ratios" author Charles Farrell.
Read More »
-
Solutions to retirement crisis available to New York families
Posted: 8/15/2012
By David Balog
Examiner.com
No matter where you stand politically, particularly on the future of Medicare and Social Security funding, one related, hard fact threatens New York's Capitol Region families--and all Americans.
We are not saving enough for retirement. And remedies are available.
Read More »
-
Strategies for Turning Retirement Savings Into Retirement Income
Posted: 8/15/2012
by Bruce Bittles
The Bradenton Times
How to move from accumulating assets to utilizing them
Private Wealth Management Products & Services
Retirement Income Planning is more than just understanding the rules around contributing to, and withdrawing from, savings plans. It's also about figuring out a strategic approach to turning those savings into a regular income stream. Strategies for doing this can range from the simplistic to the very complex, and can involve a variety of investment vehicles.
Systematic Withdrawal Plan
Read More »
-
What are the best retirement calculators?
Posted: 8/15/2012
By Steve Vernon
CBS News
In my first post in a series this week on the efficacy of online retirement calculators, I showed how widely these tools can range in the savings they recommend -- from 9 percent of a person's pay to almost 70 percent. This makes it hard for people to understand how much they need to save for retirement.
In this post I'll dig deeper into the calculators I tested, which are sponsored by AARP, CNNMoney, the Financial Industry Regulatory Authority (FINRA), MSNMoney, Schwab, SmartMoney and T. Rowe Price. (You'll want to read my previous post for background on this post, if you haven't already.)
AARP
This calculator was very easy to use and only asked questions that were possible for a layperson to answer without having to do too much research. It provided helpful explanations for each question, and at the end of each page it summarized the answers that I provided.
Read More »
-
Five People Who Shouldn't Convert To A Roth IRA
Posted: 8/15/2012
By Mandi Woodruff
Business Insider
The Roth IRA is one of the most talked about and least understood financial tools.
Unlike traditional IRAs, which are paid pre-tax and incur taxes on every withdrawal, you pay the current tax rate on Roth contributions and aren't taxed on any future withdrawals as long as you meet certain qualifications.
What's confusing for consumers isn't weighing the pros and cons of Roth IRAs as much as the concept. It's the choice between leaving savings in a traditional IRA or converting them into a Roth account of their own.
Read More »
-
Finding a solution to fear of outliving retirement savings
Posted: 8/14/2012
By Joey Ferguson
Deseret News
Recently, I took three phone calls from clients with the same concern: outliving retirement. The conversations echoed each other, "I've just realized that I'm a few years away from retirement and I've been putting money into a 401(k), IRA, 403(b)) and I'm worried it is not going to last through retirement. My company does not have a pension plan like my parents had. When the money in my retirement fund is gone - it's gone."
Read More »
-
Taking Control of Your Retirement Planning
Posted: 8/14/2012
By Mitch Strohm
Fox Business
Retirement planning is often focused on investing for retirement. But saving during retirement is part of the big picture as well. Many soon-to-be retirees are finding they may be a little short on post-retirement funds. With yields low throughout the U.S., they may have to rely on savings strategies in their leisure years.
To get a better handle on retirement planning in today's environment, we spoke with Sheila Handy, Ph.D., department chair and associate professor of business management at East Stroudsburg University. Professor Handy gave us some insight into retirement planning and how retirees can stretch their dollars.
Read More »
-
Retirement Plan Participants Guess at Savings Goals
Posted: 8/14/2012
By Danielle Andrus
AdvisorOne
One-third of workers make up estimates for retirement savings, Diversified says.
Reports of workers who say they know how much they need to save for retirement may not be entirely accurate. A survey by Diversified, a retirement plan provider, found that over one-third of defined contribution plan participants guessed at how much they need to save.
Read More »
-
The triathlon approach to retirement planning
Posted: 8/14/2012
By Donald E. Askey, Money Matters
Newbury Port News
Managing retirement income is a triathlon. After successfully completing the budgeting event, you will be tested on choosing your initial withdrawal rate. For the final event, which recurs every year, you have to recalibrate spending and withdrawals based on your life expectancy, the markets, taxes and inflation.
The risk of slacking off on or failing to complete one of these events is running out of money in retirement - the greatest financial fear of retirees. With proper coaching and training, the risk of outliving your savings, however, can be avoided.
Read More »
-
Taking Issue With The Balanced Money Formula
Posted: 8/14/2012
By Jennifer Derrick
Saving Advice
If you've read the book, "All Your Worth" by Elizabeth Warren, you've probably seen her "Balanced Money Formula." You may have seen it even if you haven't read the book because it has become the budget of choice for many media pundits and writers. For reference, the formula is as follows:
Read More »
-
Social Security cheap compared with Europe's
Posted: 8/13/2012
CBS NEWS
Compared with most public pension systems in Europe, Social Security is downright frugal.
On average, European pensions are much more generous than Social Security, providing retirees with benefits that come closer to matching the wages they earned when they were working. Americans are expected to rely more heavily on private pensions and savings when they retire.
European workers also have been able to retire earlier than American workers, though many European countries are retreating from those policies, a subject that has caused more than a little unrest.
Read More »
-
401(k) plan eligibility key factor in retirement readiness, EBRI finds
Posted: 8/13/2012
CCH.com
Eligibility for participation in a workplace 401(k) plan is one of the single most important factors in closing the retirement savings gap for Generation X, according to a new report by the Employee Benefit Research Institute (EBRI).
The EBRI, which has extensively measured retirement readiness levels using its Retirement Security Projection ModelTM since its launch in 2003, recently focused on Gen Xers (those born between 1965?1974). Earlier EBRI research has found that, overall, about 44% of both Baby Boomer and Gen Xer households are likely to be at risk of running short of funds during retirement, assuming they retired at age 65 and retained any net housing equity in retirement until other financial resources were depleted. However, EBRI's modeling reveals great variability in that overall percentage, with a key factor being how long a Gen X worker will be eligible to participate in a defined contribution retirement plan such as a 401(k) plan.
Read More »
-
Create a do-it-yourself pension
Posted: 8/13/2012
By Steve Vernon
CBS NEWS
As baby boomers glide toward their retirement years, many are focused on the need to generate a reliable retirement income that's protected from stock market volatility. Many people wish they had a company pension, where you're paid a monthly retirement income for the rest of your life, no matter how long you live and what happens in the economy.
But without a pension, you can make your wish come true with a simple fixed annuity, a product that's been available for years from insurance companies. Don't confuse these time-tested products with "deferred variable" annuities, which can have high expenses and poor investment returns and which have given annuities a bad reputation.
One simple fixed annuity was recently introduced by New York Life. Its Guaranteed Future Income Annuity allows individual investors to build a future guaranteed retirement income stream. It's pretty simple:
Read More »
-
401(k)s for the Self-Employed
Posted: 8/11/2012
By Ellen E. Schultz
Wall Street Journal
More older people than ever are working for themselves these days, according to the Bureau of Labor Statistics, and self-employment rises steadily with age. The group with the most self-employed? Men 55 to 64 years old.
That means they have to take the initiative to save for their retirement-and that is far trickier than simply signing up for a company 401(k) plan.
Read More »
-
Take measures to protect your retirement fund
Posted: 8/11/2012
By Byron Moore
The News Start
Question: I need to begin looking at my retirement planning seriously. I have a 20 year time horizon. What kinds of things do I need to do?
Answer: Check your calendar, your watch or maybe your birth certificate. I'm guessing your time horizon is a lot longer than you might realize.
When you say that you have a 20 year time horizon, I'm guessing you mean the time until you plan to retire. So that would make you mid-40s (sorry to give that away).
Read More »
-
High anxiety: Half of baby boomers doubt they will ever retire
Posted: 8/10/2012
By Tiffany Hsu
Los Angeles Times
Baby boomers are in a state of stress, with half unsure of their retirement prospects and the vast majority blaming political gridlock for damaging their economic security, according to interest group AARP.
Nearly half of voters ages 50 to 64 who have yet to retire say they're dissatisfied with their financial situation, AARP found in a recent survey. A majority believe the economic downturn will shrink their retirement savings, forcing them to rely more on Social Security and Medicare.
Read More »
-
Save for Retirement or Pay Down Credit Card Debt?
Posted: 8/10/2012
By Angela Colley
Money Talks News
Which is better: saving for your retirement or paying off your credit card debt? We answer this age-old question - and show you how to do both.
Last year, the average U.S. consumer carried $6,576 in credit card debt. Earlier this month, the average credit interest rate stood at 14.5 percent.
Read More »
-
Harkins outlines plan to boost retirement funding
Posted: 8/10/2012
by Mary Pieper, Mason City Globe Gazette
Sioux City Journal
MASON CITY | Sen. Tom Harkin, D-Iowa, outlined a proposal for a private retirement plan Thursday during a visit to Mason City.
During a panel discussion at North Iowa Area Community College, Harkin said underfunded retirements are a huge problem.
He said one out of two Americans working in the private sector used to have a pension, but that has decreased to one out of five. Also, half of all Americans have less than $10,000 in retirement savings.
Read More »
-
Try Burst Savings to Dramatically Improve Your Nest Egg
Posted: 8/10/2012
by Emily Guy Birken
Money Ning
We all know that we need to save for our golden years, but it can be difficult to know just how aggressive our savings goals need to be in order to fund a comfortable retirement. For many savers, it's easier to simply put enough into the 401(k) to get the employer's matching contribution and call it a day, but it is unlikely that this strategy will be adequate to sustain even an average retirement lifestyle.
The fact of the matter is that you will most likely need 10 and some say even as much as 25 times your annual expenses as a nest egg in order to enjoy financial security in retirement. But how do you get to that benchmark?
Read More »
-
The bleak retirement outlook for displaced workers
Posted: 8/9/2012
By Maryalene LaPonsie
NASDAQ
If you thought that Americans as a whole were unprepared for a secure retirement , you should see the ones who have lost their job.
A report from the Transamerica Center for Retirement Studies finds many unemployed and underemployed workers have been dipping into their retirement accounts to fund their regular expenses. In addition, the retirement savings for many of those workers in their 40s and 50s is virtually non-existent.
Read More »
-
Is Retirement Too Late For Refinancing?
Posted: 8/9/2012
By Money-Rates.com
As a general rule, older people have been more victims than beneficiaries of today's low interest rates. However, some may turn that around by taking a fresh look at refinancing.
Due to a combination of factors, refinancing is no longer just for younger homeowners. Retirees today may find refinancing their home a sensible option, but there are a few questions they should ask themselves before they commit.
Read More »
-
Are we facing a retirement crisis?
Posted: 8/9/2012
By Karen Datko
MSN.com
Economics professor Teresa Ghilarducci, a vocal critic of 401k's, is back in the spotlight, this time with an opinion piece in The New York Times called "Our ridiculous approach to retirement."
Ghilarducci, also interviewed on NPR's "Here & Now," warns of a pending retirement crisis, with plenty of seniors living in or near poverty. And she's not alone.
Here's basically what Ghilarducci says:
Read More »
-
Why you may retire in poverty
Posted: 8/8/2012
By Mark Miller
Reuters
Are you going to retire in poverty?
Today's seniors are more affluent than the general population. But the generations that follow them - starting with the baby boom generation - will not be as fortunate. The decline of pensions, the erosion of Social Security and the housing crash all are pointing toward a new crisis of poverty among lower- and middle-class seniors in the years ahead.
Read More »
-
How One Man Rebuilt His Retirement Savings
Posted: 8/8/2012
By Kimberly Palmer
US News & World Report
Author John Robbins was forced to start over after losing everything-and he made the most of it.
John Robbins is no stranger to starting over. The author of bestselling Diet for a New America and one-time heir to the Baskin-Robbins fortune walked away from his family money at age 21. He chose to live simply with his wife on an island off the coast of British Columbia. Together, they spent only $500 a year.
Read More »
-
10 Critical Retirement-Saving Mistakes
Posted: 8/8/2012
By Daniel Bortz
U.S. News & World Report
Avoid errors like retiring with too much debt and withdrawing Social Security payments prematurely.
Americans are worried about retirement, but many are making classic mistakes that can easily be avoided with the right planning.
Nearly a third of baby boomers ages 55 to 65 are worried that they won't be able to cover basic living expenses in retirement, according to a recent survey by Allianz Life. More than 40 percent of those surveyed said they don't know when retirement planning should begin.
Read More »
-
Exhausting Retirement Funds Striking Fear Into Seniors
Posted: 8/8/2012
By David Goehst
Technorati
The imminent dangers of outliving retirement incomes are becoming clear to families planning for their upcoming retirees. Watching various shows how other retired families are being duped into investing money into Ponzi schemes has soured the pot for many interested investors, leaving little opportunity to trust brokerages with life savings. Regardless of what the current retirement age has increased to, many seniors continually fear they'll be working themselves to death - literally. Medicare has been drastically rising, taxes on the middle class and overall cost of living increases over the years have eaten away once substantial savings set aside by the senior population...
Read More »
-
Retirement planning tips for women
Posted: 8/8/2012
By Katye Delashaw
Montgomery Advertiser
According to the Women's Institute for a Secure Retirement, one-half of all American women work in low-paying jobs that don't offer retirement benefits. Women retirees typically receive only one-half the average pension benefits that men do.
Read More »
-
Baby boomers' economic anxiety
Posted: 8/8/2012
By Nancy LeaMond, AARP
Politico
The first Friday of every month, the election frame is adjusted based on the latest jobs report. This intense focus, however, gives us a picture that is incomplete. We need a broader lens.
A new national election survey reveals that voters ages 50 and older have economic anxiety far deeper than even the latest unemployment numbers would suggest. The epicenter of this anxiety, according to this AARP survey, is pre-retirement baby boomer voters ages 50-64.
Read More »
-
A Shocking Number Of Americans Rely Entirely On Social Security By The End...
Posted: 8/7/2012
By Ashley Lutz
Business Insider
A shocking 46.1 percent of Americans die with less than $10,000 to their names and rely on Social Security benefits to pay the bills, according to a recent study by James Poterba at MIT, Steven Venti at Dartmouth and David Wise at Harvard.
Many of these people don't even own a home according to the study, which looked at the wealth of people of all ages from 1993 until 2008.
Read More »
-
New retirees receiving less in Social Security than they paid in...
Posted: 8/7/2012
Fox News
People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It's a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.
Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.
Read More »
-
The Biggest Retirement Challenges for Women
Posted: 8/7/2012
By Emily Brandon
US News
Women generally live longer than men, which means additional years of retirement need to be financed. But women continue to have lower earnings and less retirement savings than men, which causes women to have lower retirement incomes and to be much more likely to spend their retirement years in poverty, especially if they become widows. Here are the significant retirement challenges women face and how to manage them:
Longer life expectancy. Although gender differences in life expectancy have been decreasing, women age 65 and older continue to outnumber men age 65 and older, and this trend is projected to continue over the next four decades. A man reaching age 65 this year can expect to live to an average age of 83, while a woman the same age can expect to live until 85, according to Social Security Administration data. But those are just averages. A quarter of 65-year-olds are expected to live past age 90, and 10 percent will make it to at least age 95. While longer life expectancies are good news for baby boomers, they also mean women will have to save enough for a longer period of retirement than men or work until an older age than previous generations to have a comparable retirement.
Read More »
-
Iwry outlines guidance on lifetime income options in retirement plans
Posted: 8/7/2012
Source J. Mark Iwry speech
CCH.com
As the baby boomers approach retirement there is a growing concern that most Americans will outlive their retirement savings. According to J. Mark Iwry, Senior Advisor to the Secretary of the Treasury and Deputy Assistant Secretary for Retirement and Health Policy, the key is to replace the paycheck with a pension paycheck, and have it cover not only the life expectancy, but the "out years" as well (years beyond life expectancy). Iwry spoke on June 21, 2012 at a luncheon sponsored by the WEB-NY Employee Benefit Group.
Lifetime income guidance:
Read More »
-
Boomers Confess Their Biggest Retirement Planning Mistakes
Posted: 8/7/2012
By Maura Kelly, The Fiscal Times
Business Insider
In this bleak economy, it's no wonder people aren't socking away enough to secure their retirements. A May study conducted by the financial trade organization LIMRA found that 49 percent of Americans aren't putting away anything for retirement - a dangerous move in today's world. As life spans increase, pension funds reduce payouts, and the Social Security system falters, people will need more and more savings to meet their basic retirement needs. To make sure they have enough funds, they'll need to come up with a retirement plan early in their careers.
The Fiscal Times spoke to three baby boomers, newly retired or nearing retirement, who made a few mistakes along the way. Here's what they'd do differently if they could plan their retirement all over again:
Read More »
-
The bleak retirement outlook for displaced workers
Posted: 8/6/2012
By Maryalene LaPonsie
Money Rates
If you thought that Americans as a whole were unprepared for a secure retirement, you should see the ones who have lost their job.
A report from the Transamerica Center for Retirement Studies finds many unemployed and underemployed workers have been dipping into their retirement accounts to fund their regular expenses. In addition, the retirement savings for many of those workers in their 40s and 50s is virtually non-existent.
Read More »
-
Social Security not deal it once was for workers
Posted: 8/6/2012
By Andres Gonzalez, Associated Press
CBS News
WASHINGTON - People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It's a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.
Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.
Read More »
-
Giving up work at 65 is old news
Posted: 8/6/2012
By Breanne Coats
Business Examiner
Financial situations lead more people to retire later in life.
The recession didn?t eliminate retirement dreams, but it did alter many of them.
One of the biggest changes to plans is the age at which people suspect they can retire.
Read More »
-
Baby Boomers Share Their Biggest Retirement Planning Regrets
Posted: 8/4/2012
By Maura Kelly, The Fiscal Times
Business Insider
In this bleak economy, it's no wonder people aren't socking away enough to secure their retirements.
A May study conducted by the financial trade organization LIMRA found that 49 percent of Americans aren?t putting away anything for retirement - a dangerous move in today's world.
Read More »
-
Zero Return World Squeezes Retirement Plans
Posted: 8/4/2012
By Thomas Reuters
CNBC
Workers can kiss their retirement plans goodbye unless they take more risk to keep nest-eggs growing in a world where playing safe can be even more costly.
Four years of near-zero official interest rates and successive market panics have driven the returns from low-risk German, British or U.S. government bonds on which pension funds traditionally rely to record lows.
That may yet rescue the global economy by supporting borrowing and growth, but it is very bad news for several generations of workers already set to retire later ? and for longer ? than their predecessors.
Read More »
-
Keep Savin' It, Sister: GAO Says Women Saving More, but ...
Posted: 8/4/2012
By Joyce Hanson
AdvisorOne
Study shows women more likely to depend solely on Social Security, but they are also participating more in retirement plans.
American women may think they're good at penny-pinching, but it turns out that they'll need to save even more if they want to feel secure in retirement.
Women, especially widows and those age 80 and over, depend on Social Security benefits more than men, the latest U.S. government study on women in retirement shows, but they're also doing a better job of contributing to their employer-sponsored retirement plans.
Read More »
-
Generation Y's thinking early about retirement: Fidelity report
Posted: 8/4/2012
By Phyllis Furman
New York Daily News
Employees in their 20s and early 30s are opting for Roth 401(k)s and target date funds.
It ain't easy, but employees are continuing to sock away money in their 401(k) plans, even in these tough times.
Employee contributions to 401(k)s continued to increase during the second quarter, according to a Fidelity Investments report.
The average contribution from employees enrolled in Fidelity 401(k) plans rose to $1,660 during the second quarter, up $30 from the same period last year and up $150 from the same period in 2009.
Read More »
-
3 Retirement Rules of Thumb to Avoid Relying On
Posted: 8/4/2012
By Jeff Rose
US News & World Report
We all like to know what the rules are. Do this, and you can expect that to happen. The same is true with retirement. Many of us want to know what asset allocation to use, and how much to set aside for a successful retirement.
There are many rules of thumb when it comes to retirement. While they can be helpful in terms of making general plans about what to do with your portfolio, it's not a good idea to rely on such rules of thumb too much...
Read More »
-
How much money will you really spend in retirement?
Posted: 8/4/2012
By Jason Heath
Financial Post
One of the most important factors when building a retirement plan is determining what it will take to maintain your desired standard of living.
The Financial Consumer Agency of Canada (FCAC) suggests on its website to target about 70% of the annual pre-tax income from your last three years of work, though acknowledges this is a broad generalization.
Read More »
-
Will women have enough money to retire?
Posted: 8/4/2012
By Jane Glenn Haas
The Orange County Register
I retired on my own earnings. I was a widow, but by the time I asked for benefits, my income exceeded my late husband's.
Which is a spot not many retirement-age women share.
We were among the first in the women's movement that pulled us out of the kitchen and into the workplace.
Overall data suggests women earn about 70 percent of what men earn. Doing the same jobs.
Read More »
-
Harkin Proposes Private Retirement Plan
Posted: 8/3/2012
By James Q. Lynch
kcrg.com
CEDAR RAPIDS, Iowa - Sen. Tom Harkin is proposing a private retirement plan to supplement Social Security and personal savings that would guarantee retirees an annual annuity.
The Iowa Democrat will have meetings Aug. 8 and 9 in Des Moines and Mason City, respectively, to discuss his USA Retirement Fund proposal.
Too many Americans are not prepared for retirement, largely because of the decline of private pension plans, Harkin, chairman of the Senate Health, Education, Labor and Pension Committee, said Aug. 2.
Read More »
-
'The Worst Mistake I Made Planning for Retirement'
Posted: 8/3/2012
By MAURA KELLY
The Fiscal Times
In this bleak economy, it's no wonder people aren't socking away enough to secure their retirements. A May study conducted by the financial trade organization LIMRA found that 49 percent of Americans aren't putting away anything for retirement - a dangerous move in today's world. As life spans increase, pension funds reduce payouts, and the Social Security system falters, people will need more and more savings to meet their basic retirement needs. To make sure they have enough funds, they'll need to come up with a retirement plan early in their careers.
The Fiscal Times spoke to three baby boomers, newly retired or nearing retirement, who made a few mistakes along the way. Here's what they'd do differently if they could plan their retirement all over again:
Read More »
-
Don't Be a Kid About Retirement
Posted: 8/3/2012
By Scott Gamm
Forbes
For young people, saving for retirement has typically been a low-priority financial subject. After all, it's tough to curtail your spending to save for a point in time that's decades away. A trip to the Caribbean or even establishing a fund for your child's college education tends to rank higher on the priority list than carefully selecting funds for your retirement account.
And the statistics back this up. A May 2012 LIMRA study showed almost half of Americans are not adding any money to retirement accounts.
Read More »
-
Study: Many Americans die with 'virtually no financial assets'
Posted: 8/3/2012
Peter Dizikes
MIT News Office
It is a central worry of many Americans: not having enough money to live comfortably in old age. Now an innovative paper co-authored by an MIT economist shows that a large portion of America's older population has very little savings in bank accounts, stocks and bonds, and dies 'with virtually no financial assets' to their names.
Indeed, about 46 percent of senior citizens in the United States have less than $10,000 in financial assets when they die. Most of these people rely almost totally on Social Security payments as their only formal means of support, according to the newly published study, co-authored by James Poterba of MIT, Steven Venti of Dartmouth College, and David A. Wise of Harvard University.
That means many seniors have almost no independent ability to withstand financial shocks, such as expensive medical treatments that may not be covered by Medicare or Medicaid, or other unexpected, costly events.
Read More »
-
Questions to Ponder Once You Have Enough Money to Retire
Posted: 8/2/2012
By David Ning
US News & World Report
Having a nest egg big enough to sustain you in retirement may seem unimaginable. But there will come a day when many people will get the opportunity to figure out whether being employed is still a desirable proposition because they no longer need a steady paycheck. If you follow prudent retirement savings steps and find yourself in this enviable position, consider these five questions before you hand in your resignation letter:
Read More »
-
An Approach to Retirement That's Not So Ridiculous
Posted: 8/2/2012
By Jon Stein, Betterment.com
Huffington Post
For the unawares, the Baby Boom generation is on the verge of retiring with nowhere near enough in the way of assets to see them through their old-age.
Two recently published articles make this point all too well. The first was written by New America Foundation senior research fellow Phillip Longman and published in the most recent issue of Washington Monthly. The second, authored by longtime retirement expert and advocate Teresa Ghilarducci and entitled "Our Ridiculous Approach to Retirement," was published in the New York Times last Sunday and has clearly hit a nerve: it is, almost a week later, still on the paper's most read list.
Read More »
-
Retiring At Age 50 Is Realistic Using These Unorthodox Strategies
Posted: 8/2/2012
By Nancy Anderson
Forbes
The prevailing school of thought is that it's completely unrealistic to retire at age 50 in today's economy - maybe it was an option twenty years ago after a strong bull market, with lifetime income from a company pension and an early Social Security benefit payout. Today it seems like people are simply resigned to working longer to make retirement work. The question that bothers me is, who wants to "have to" work until seventy? The "have to" part just doesn't sit right. First of all, there will be the people who can't work longer due to health reasons and secondly, people who lose their jobs and can't find another one. There is no guarantee that working until seventy is even possible.
Read More »
-
Reviewing Retirement Plans Can Reduce Risk
Posted: 8/2/2012
By E. Thomas Foster Jr.
On Wall Street
Few things in life pay off as much as taking preventive measures. Consider for instance, that seat belts are credited by the National Highway Traffic Safety Council with saving more than 250,000 lives since 1975.
Preventive medicine has benefits as well. A recent study found that eating dark chocolate every day reduces the risk of fatal heart attacks and strokes. And the Mayo Clinic advises that doing crossword puzzles and other mental exercises can help stave off memory loss.
Read More »
-
A model for saving for a sound retirement
Posted: 8/1/2012
By Reps. Ron Kind (D-Wis.) and Erik Paulsen (R-Minn.)
The Hill
It has been 26 years since Congress last overhauled the tax code. In that time, thousands of tweaks and changes have been made that are both beneficial and detrimental to individuals and businesses alike. It?s time we take a thorough look at our current tax policy and move forward with comprehensive tax reform in a bipartisan manner. Updating a tax code as complicated and lengthy as ours is going to take some time. But, as we prepare to put pen to paper with specific tax reform proposals, we must take a deeper look at what is fair and sustainable, and what works for American families, individuals, and employers.
Read More »
-
Saving for Retirement in a Recession
Posted: 8/1/2012
by Jeffrey Alexander
Chronogram.com
With New York's unemployment rate standing at 8.6 percent and a workforce continuing to experience stagnant wages, many individuals are forced to work for right now, as opposed to planning and saving for tomorrow. Retirement savings is not something the younger work force focuses on, but today's financial experts opine that today's worker must independently plan for their future.
"Gone are the days of the goodbye handshake, a gold watch, and a fat pension check," says Richard Spriggs, a financial services planner with Ulster Financial Group at Ulster Savings Bank. Spriggs said it's never easy to convince people to save, and even harder when everyday expenses and debt accrue. Spriggs cites rising education costs as one of the main culprits causing young people to suffer debt. "The cost of education is crippling, but there is a way to start saving today through your employer's 401(k) plan. Companies that offer a match -if you put in an amount your employer will match it - is something that people should absolutely take advantage of. A match is a 100-percent return of your money. These plans are managed by a third party and there is a lot of research available to ensure your money is safe."
Read More »
-
Women Face Retirement Income Glass Ceiling
Posted: 8/1/2012
By Margarida Correia
BankInvestment.com
Women may have come a long way in terms of their earning power, but they still have a long way to go before closing in on the male/female retirement savings gap. Income disparities over the past 30 years have translated into a 25% to 30% retirement savings shortfall for women that men with the similar savings and investing patterns do not have, according to a new research report from the Insured Retirement Institute.
The study found that half of Boomer men have retirement savings of at least $200,000 compared with only 35% of women who reached this level of savings.
Read More »
Archive
|
