Posts Tagged ‘retirement planning’

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.

These days, it’s not uncommon to find that many baby boomers are coming into their first divorce, may have lost a business, or have found themselves mired deeply in dept.  These financial pitfalls are not just emotionally draining – they can have a devastating impact on your retirement savings if you don’t take the proper steps to protect them.  Many people faced with financial downfall turn to their savings and investments to get them out of debt or pay for that divorce.  However, if you want to reach that retirement age any time soon, then you’ll need to start over again – and we’re here to show you how.

Don’t Let Emotions Hold You Back. Debt can be depressing enough – but debt that’s caused by divorce or a medical emergency can be downright debilitating.  Don’t let your emotions get the best of you when it comes to starting over with your retirement; instead, separate your personal issues from your finances and move forward.

Get An Objective Opinion. This is where an investment advisor or financial planner comes in.  If you’ve had your money basics down pat and just need to boost your savings after a divorce or medical emergency, then go for a registered investment advisor; if, however, you don’t know how to rub two dollars together, get a financial planner to teach you the basics about money.

Don’t Second-Guess The Numbers.  Don’t live in ignorance about your overall retirement savings or your debt – sometimes facing up to what you owe can be more freeing than ignoring the numbers.  Again, get that investment advisor to help you come up with savings and investments that will get you back on track towards financial security again.

Cut Expenses. The old saying really is true: every little helps.  This means you’re going to have to comb through your expenses and get deals wherever possible.  While you may not see the benefits at first, trust us, it adds up at the end of the year.  Additionally, don’t drain anymore of your resources on major purchases – this means if you have a kid in school, have them take out student loans to finance their own education.  It’s harsh, but it’s necessary to get your retirement back on track.

Keep Working.  It might be time to push your retirement age up or earn extra money on the side – whatever option you choose, the extra income will help cushion your retirement savings.

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.

No one likes to talk about the possibility of death, especially when it comes to their own; however, if you want a happy and comfortable retirement, you’ll need to plan out your estate so you don’t leave your family behind with bad debts along with old memories.  If you think that you need to hire an expensive lawyer to write your will, think again: DIY wills are becoming increasingly popular as budgets shrink.  If you’re considering a DIY will, here are key tips that will ensure that your will is error-free:

Pick The Executor Of Your Estate Wisely. A big part of retirement planning is creating your estate, which means you’ll need to appoint an executor to handle your affairs after your death.  Pick a family member or close friend who will have your best interests at heart, as they’ll be responsible for carrying out your wishes after you’re gone.

Allocate Funds For Your Debts.  If you haven’t paid off your debts by the time that you reach your retirement age, make it a point to do so in the years following, as any assets will be liquidated to pay off creditors and lenders upon your death.  In other words, you’ll be unable to leave any important or sentimental assets to family members, as a court will promptly hand these over to banks to pay for your debts.  Talk to your investment advisor to step up your investments if you need more money to pay off your debts.

Enlist Witnesses.  Your will could be legally flawless and pristine, but if there are no witnesses to view you sign it, your will won’t be considered legally valid.  Remember, viable witnesses are those parties who are not mentioned in your will.

Be Specific With Your Wishes.  Allocate who will get your assets. For example, you could designate that your 401(k) retirement fund should be left with your spouse, partner or child, or you could leave your savings and investments to a dear family member.  Whatever the case may be, don’t fill your will with opaque wording, as this will cause legal problems amongst your beneficiaries after your death.

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

Authored By Kenneth Himmler, Sr.

If you’re in the midst of retirement planning, then you’ve probably encountered more than a few advertisements for long-term care insurance.  If you didn’t seize the opportunity to take advantage of this necessary expense, then find a provider quickly: long-term care insurance is one of the most important components of a healthy retirement, as it protects your finances (and that of your family’s) once you’re unable to look after yourself.

If you thought that you could depend on your own savings and investments, Medicare or your children to pay for nursing home expenses, think again!  Medicare will only pay for medical expenses, not those incurred by day-today custodial expenses (such as meals, cleanings, etc).  Additionally, with continuing care retirement communities getting more expensive every year, you could stand a good chance of wiping out your retirement savings within the first couple of years alone.

Many people often mistake long-term care insurance for disability insurance, but there are important differences: disability insurance will provide you with income in the event that you can’t work, whereas long-term care insurance will cover the costs of caring for you when you’re unable to look after yourself.

And if you think that your children will be able to look after you, it’s best to not count on them 24/7 for physical and financial support.  Sure, your son or daughter might not mind if you move in with them, but what if their spouses object?  What if you need more care than they can provide, especially if they work long hours or have large families to support?  These considerations are important to factor in, as it could mean the difference between a comfortable retirement and one that’s hanging by a thread.

If you’re in your late 40s or 50s, buy your long-term care insurance now, as rates are at all-time lows for the youngest of the baby boomers.  Additionally, you run the risk of being locked out of your insurance should you purchase a policy after you develop a medical condition.  Even if you feel young and independent upon approaching your retirement age, it’s best not to chance it when it comes to long-term care.

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

Authored By Kenneth Himmler, Sr.

So you want to retire a millionaire, but you’re not sure how you can make it happen (besides winning the lottery, of course)?  Despite popular belief, reaching your retirement age as a full-fledged millionaire can be quite simple – if you make your savings and investments work for you, that is! Read on for the best tips on how to retire a happy and healthy millionaire!

Step Up The Investing.  Now that employers have automatically enrolled their employees in retirement savings plans, saving up for the day when you give that retirement speech doesn’t involve much effort.  However, if you want to retire a bona fide millionaire, you’ll need to make smart investments outside of your 401(k) retirement fund.  Hire an investment advisor to help you make safe investments that will further cushion your nest egg – and propel it into the seven-figure range.

For your best bet, check out Roth IRAs or Roth 401(k)s; both are great additions to any investment portfolio and withdrawals are tax-free after the age of 59.

Check The Health Of Your Portfolio.  Don’t just cross your fingers and pray that your investment advisor will give you the thumbs up to retire; instead, go for yearly check-ups on your portfolio to make sure that your retirement savings are on track.  It’s best to catch your investments if they’re doing poorly and quickly fix them with the help of a financial planner.

Never Cash Out Your 401(k) Retirement Fund.  When you change jobs, it can be tempting to cash out your 401(k) retirement fund to pay off any toxic debts – however, if you want to retire with seven-figures sitting comfortably in your bank account, then you’ll need to roll over any old 401(k) funds into investment schemes offered by your new employer.  If you’re still interested in cashing out your 401(k), remember that you’ll be heavily taxed for doing so – in fact, you could end up losing up to 25% of your retirement savings.

Cut Excessive Expenses.  Even if you’re saving a little of each paycheck, you can still retire a millionaire – if you cut out excessive expenses.  Forget paying for your child’s college education (after all, that’s what student loans are made for) and running up those credit card debts.  Live within your means, and you’ll be able to afford a more luxurious lifestyle once you retire.

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

Authored by Kenneth Himmler, Sr.