Posts Tagged ‘retirement savings’

Your future financial stability depends on how wisely you invest the money you are earning today. There are numerous financial professionals who can advise you on all kinds of investment opportunities, and you will need to find one who understands your particular needs, and one who will ensure that you earn good returns on your investments. This article will give advice on where to find investment advice.

You’ll find an array of investment options available and you will need to weigh up all the pros and cons of each. You will also have to establish how much risk you are prepared to take when investing. Obviously, returns on high risk investments are much higher than returns on more stable, low risk investments.

If you’re new at investing, you may wish to approach a bank where an investment officer will explain all the various options. Banks can even offer advice on investing in foreign countries, stocks and bonds, as well as conventional types of investments like certificates of deposit or savings accounts. Either way, you will certainly get sound advice from a bank.

Another option is to seek out a reputable financial planner who will review your financial status, taking into account your spending habits, and then devise a financial plan to suit your individual needs. This plan will enable you to invest money while still enjoying the lifestyle that you are accustomed to.

Alternatively you can contact a specialist investment adviser who will give you advice and strategies on how and when to invest in stocks and bonds. Most investment advisers are also well conversant with retirement fund management.

Still uncertain about where to find investment advice? Then a broker may be the answer. Brokers are renowned for their acumen when it comes to tracking down good investment opportunities.

If you are an experienced investor, you are likely to have a professional investment manager to manage your affairs and to continually be on the look-out for new avenues of investment to add to your portfolio.

All investments are subject to some kind of risk, even investments that are considered to be low risk. Fixed investments – these are affected by fluctuations in interest rates. Likewise, high risk ventures such as international investments can be severely affected by the economic climate of the country that holds the investment. It is therefore crucial that you obtain the best possible advice before signing any investment deal.

Are you looking for a solid good financial investment advice that is good for you? Before you waste your time looking for quality financial investment information, look at BeforeYouInvest.com’s guide to investing for beginners. We review everything from where to buy investments to the low initial investment mutual funds.

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! 

 

Riding the current investment markets to retirement can be a wild ride indeed.  Those who are approaching that golden age of retirement may find themselves with a retirement pot with substantially less gold than they had first calculated.   How can those near the end of their working careers make the most of their savings?

 

1. Diversify Your Retirement Savings

 

It seems that the word ‘diversify’ is overused with investment advice, but the meaning cannot be overemphasized enough.  Just like your mother always told you, you should never put all your eggs in one basket.  Diversifying is an investment strategy that optimizes your investment choices so that you capitalize on high returns while saving your wealth in tougher economic times. 

 

How do you diversify if you have lost a little or even a considerable value in your retirement savings?  If you have an employer sponsored 401(k), you could re-distribute some of your retirement savings into a low-cost IRA.  You can have more investment options and choices than with a 401(k) and receive some of the same tax advantages. 

 

For those with some years left to invest, a Roth IRA may be a good option.  Roth IRAs receive contributions after-tax, so the great benefit is taking distributions tax-free after retirement. 

 

2. Write Off Your Retirement Losses

 

You can write off losses from taxable investments from your income taxes.  Though you cannot deduct losses from traditional retirement accounts, such as 401(k) or a traditional IRA, you can deduct losses from a Roth IRA, which is a taxable investment.  This strategy requires selling the taxable investment and claiming a tax deduction of up to $3,000 on your tax return for the calendar year.  Losses greater than $3,000 can be carried forward into the next calendar year. 

 

3. Cut Expenses and Save More

 

One way to cut your retirement investment losses is to save more.  That means biting the proverbial bullet and reducing your expenses so you have more disposable income you can contribute to retirement savings.  Here are some ways you can start padding your retirement savings today:

 

• Maximize your 401(k) contributions – Have you opted for the maximum 401(k) contribution out of your paycheck?  Workers over 50 can contribute up to $22,000 of pre-tax earnings starting in 2009, and the cap is likely to increase year after year.

 

• Cut food & beverage spending – You can put $1,000 into savings in a year if you cut your morning latte.  Save another $2,500 – $3,000 if you bring your lunch to work rather than eating out every day.

 

• Household – Cable TV, internet, and phone costs eats away over $100 per month, and as much as $300 per month, depending on the service.  Reduce or even eliminate your cable service.  Eliminate your landline phone and stick with just a cell phone.  Find other ways you can save on household utilities.  The thousands you save each year can go back into rebuilding your retirement nest egg.

 

Your retirement investment value at the time of your retirement is all the value you shall receive.  Do what you can until then to make it the best value possible for your leisure years.  And as always, consult with a qualified retirement wealth manager like www.kenhimmler.com or retirement asset management company at www.iamllc.biz to help you make the best decisions about your retirement savings.

 

 

Authored by Kenneth Himmler, Sr.

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.