Posts Tagged ‘401k retirement’

Easy Steps To Revive Your 401(k) Retirement Account

It’s time for the good news first: in recent weeks, the stock market has soared considerably, which means that your 401(k) retirement account is looking forward to a bright future.  The bad news? The damage that the recession has done – and could potentially continue to do – won’t be undone in just a few weeks.  In fact, it’s going to take some work to get your retirement savings back on track where they belong.  But don’t worry, you won’t have to take up a second job as an investment advisor; just follow these easy steps to revive your 401(k) retirement account in no time:

Stop Guessing About That Bottom Line. Sure, the recession has ravaged our savings and investments; but could it be that a little bit of education can go a long way?  When it comes to your retirement, it’s certainly true: the more you know about how your 401(k) retirement account is doing – and how much you’ll need to reach your retirement age – the less stressed you’ll be about retirement.  Additionally, figuring out the bottom line of your retirement savings will let you know if you need to scale back or start reinvesting.  It’s safe to say that when it comes to retirement, ignorance is certainly not bliss!

Cut Expenses.  As you approach your retirement age, you may think that it’ll be easier to saving more aggressively for retirement; after all, your mortgage payments will be smaller and your kids will be grown.  However, if you’re still paying for your kid’s college or considering that second home, it’s time to become aggressive with your savings, since your retirement should be your number one priority.  Besides, student loans exist for a reason!

Go In For A Tune-Up. If you have a 401(k) retirement account, schedule an appointment to talk with your investment advisor about where you are right now.  Does he or she recommend safe investments as you approach your retirement age, or can you consider an early retirement?  Whatever the case, your investment advisor will shed some new light on where you stand in regards to those retirement dreams.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Know your ultimate financial goal for retirement and save until you get there.  That’s the basic advice that every investment advisor will tell you when you settle in to discuss your retirement savings – but how do you know what that final number should be?  Sure, you can guess at how much you’ll need to save by guessing at the annual returns on your IRAs or crossing your fingers that your 401(k) retirement fund will make more than a million; but when it comes to your retirement, it’s far better to have concrete goals to work towards than just playing it all by ear.

So how do you set the right goals that set you up for retirement success?  Follow these simple steps and you’ll see results in the form of more dollar signs:

• Forget the idea that Social Security will set you up for a decent retirement.  To set realistic retirement goals, you need to get comfortable with the idea that you’ll need to eliminate Social Security from your thoughts entirely.  While these checks will provide a supplemental income each month, they’ll hardly pay for your monthly utility bill; so set goals that involve just your savings and investments.
•  Figure out what your retirement age is going to be.  Although you can guess at your retirement age, this will definitely be influenced by how much you’ve already saved and how much you’re planning to put aside.  If you can save enough to reach your retirement age, then fine; if not, considering pushing up the date by a few years to give your savings and investments more time to grow.
• Approaching your investment advisor with a concrete goal in mind is one of the best ways to map out your retirement planning.  To get a firm number to approach your advisor with, search online for a free retirement calculator that can help you determine how much you should save in order to retire comfortably.  Once you’ve got this number in mind, it’s time to plan your savings and investments around it – and enjoy the kind of retirement that you’ve always dreamed about!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts! 

If you haven’t already received your 401(k) retirement statement, get ready for a bombshell in your mailbox.  Thanks to the fluctuating markets – along with the growing threat of inflation – balances for your retirement savings could be at an all-time low.  For those on the verge of retirement, it’s time to learn ways to control sticker shock – and how you can turn any panic into bona fide action.

Take A Deep Breath.  Like with most statements, sticker shock is a normal feeling.  Remember when you first took out that mortgage?  How about when you discovered how much interest you’ve been paying on those credit cards?  Don’t let sticker shock regarding your 401(k) retirement fund overwhelm you; remember, you have plenty of time to make up for any losses incurred.  On the bright side, markets recently have been looking up, with consumers showing more confidence in the economy (www.msn.com).  This means that your savings and investments have already been gaining on any losses since 2008.

Take Action. You can sit and bemoan that your 401(k) retirement fund isn’t up to par – or you can take action to ensure that you’ll have a comfortable retirement!  Visit your investment advisor to see how you can boost your numbers by the time you reach your retirement age.  Whether you need to heavily invest in an IRA (putting aside $500 a month for ten years can net you up to $300,000, assuming an 8% return) or move your money to safe investments, your investment advisor will help you come up with a better retirement plan.

Cut Expenses.  For those on the edge of retirement, a smaller fixed income will definitely necessitate cutting any extra expenses.  Instead of paying for your child’s college education or buying that second home, use that money to vigorously invest in the market.  After all, who says that you’ll stop investing once you reach your retirement age?

The bottom line is that you shouldn’t regard your 401(k) retirement statement as final.  Thanks to savvy investments that will last well into retirement – along with smart budget cuts – you’ll have a long and happy retirement to look forward to.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

No one would argue with the idea that life should be enjoyed.  Between outings with family and friends, vacations and other perks that make life more fun, it’s essential to both your mental and physical health to kick back and relax once in awhile.  However, if all of this fun is coming in between you and your retirement savings, it’s time to cut back on a few money-draining “sins” – and watch as your retirement fund blossoms into an outright nest egg!

Drinking.  Nothing’s wrong with a few social drinks here and there; yet a drinking habit can be one of the most draining expenses on your resources – money which could very well be put towards your 401(k) retirement fund or any savings and investments.  Look at how much you’re spending on drinks, even if you enjoy a cocktail or two during happy hour.  $3 a drink can quickly add up over time; and with the average American enjoying two beverages a day, this culminates into over $3,200 a year.  If put into a savings account earning 6% interest, that money can blossom into over $200,000 grand in just 20 years. 

That $3 can go a long way towards netting you a comfortable Florida retirement!

Smoking.  Not only are cigarettes bad for your health; they’re downright draining on your financial resources.  Assuming a person smokes a pack a day, this habit adds up to a hefty $2,000 at the end of the year (assuming packs are just over $5).  Once again, this is money that’s better used in your savings and investments.

If you quit drinking and smoking, financial experts claim you can accumulate up to half a million in retirement savings in about 20 years.  For those who’ve gotten a late start on retirement, this can be an awfully tempting figure!

Gambling. Taking a trip to Sin City now and then is fun – gambling away a potential retirement fund isn’t as entertaining.  If you think that winning the lottery or jackpot is your best bet to land a comfortable retirement, try putting your gambling money towards your 401(k) retirement fund instead.  Sure, it’s not as fun as the thrill of gambling – but when you’re living a comfortable retirement years from now, you’ll hardly remember missing out on the momentary thrill of purchasing a lottery ticket.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

America’s about to go broke.

Well, that’s what many financial experts are proclaiming anyways.  Thanks to the perfect storm of future inflation and the depleted funds of Social Security and Medicare, more people than ever are starting to break a little sweat when they think about the health of their retirement savings; some are even tempted to pull out altogether for a couple of years just to avoid the economic crisis.

However, just because the economic forecast is less-than-desirable doesn’t mean you should immediately fire your investment advisor and pull out of your 401(k) retirement fund; rather, the key is to be smart and use the time you have to counteract inflation and Social Security with savings of your own.

If you think that your savings and investments are safe from any future catastrophes, let’s take a look at some scary figures to get you in gear.  Economic experts have indicated that Medicare and Social Security deficits are likely to spring up starting in 2010 – just a few months from now.  With a likely deficit of almost $1.25 trillion soon upon us – and a depleting number of younger people who will be funding the baby boomer generation’s retirement – it’s no longer enough to count on your Social Security checks to see you through.  What’s more, inflation is set to skyrocket prices within the next decade; so if you’re on the brink of retirement, make sure your savings and investments are as healthy as possible.

Make an immediate appointment to talk with your investment advisor to assess where you are with regards to your retirement planning, and what you can do to get back on track.  While time might not be on your side if you’re of an older generation, those hitting 40-50 can still save aggressively with great results.  Apart from your 401(k) retirement fund, start contributing $500 – $1,000 a month for ten years to a brokerage IRA; assuming an 8% annual return rate, you can have anywhere between $268,002 and $550,000 by the time you retire at 65.

That’s a lot of cash to pad any unexpected bumps on the retirement road!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

America’s about to go broke.

Well, that’s what many financial experts are proclaiming anyways.  Thanks to the perfect storm of future inflation and the depleted funds of Social Security and Medicare, more people than ever are starting to break a little sweat when they think about the health of their retirement savings; some are even tempted to pull out altogether for a couple of years just to avoid the economic crisis.

However, just because the economic forecast is less-than-desirable doesn’t mean you should immediately fire your investment advisor and pull out of your 401(k) retirement fund; rather, the key is to be smart and use the time you have to counteract inflation and Social Security with savings of your own.

If you think that your savings and investments are safe from any future catastrophes, let’s take a look at some scary figures to get you in gear.  Economic experts have indicated that Medicare and Social Security deficits are likely to spring up starting in 2010 – just a few months from now.  With a likely deficit of almost $1.25 trillion soon upon us – and a depleting number of younger people who will be funding the baby boomer generation’s retirement – it’s no longer enough to count on your Social Security checks to see you through.  What’s more, inflation is set to skyrocket prices within the next decade; so if you’re on the brink of retirement, make sure your savings and investments are as healthy as possible.

Make an immediate appointment to talk with your investment advisor to assess where you are with regards to your retirement planning, and what you can do to get back on track.  While time might not be on your side if you’re of an older generation, those hitting 40-50 can still save aggressively with great results.  Apart from your 401(k) retirement fund, start contributing $500 – $1,000 a month for ten years to a brokerage IRA; assuming an 8% annual return rate, you can have anywhere between $268,002 and $550,000 by the time you retire at 65.

That’s a lot of cash to pad any unexpected bumps on the retirement road!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.