My Financial Planning For Retirement

My financial planning for retirement started ten years ago, before actual retirement. Attending seminars on retirement planning was part of preparation.

I remember a large auditorium filled with about 300 would be retired people still working at that time. First speaker was a doctor psychologist who scared us describing how we loose our physical and mind strength with age. In time we will become big losers. Bone and muscle mass reduction, arthritis, diabetes, hart diseases will be the new encounters.

When all this scary facts filled our mind, the second speaker came to show us how much money will need in retirement and how he can help in big way by doing the financial planning for each of us to fight the inflation and the market risk.

Since that first seminar I have been attending many "Free luncheon Retirement Workshops" offered through direct mail by more or less gifted Investment Advisors.

"Nothing is sold at our workshop. This workshop is designed as an informational overview to help educate retiree (or soon to be retirees) about the specific financial dilemmas they face, and the pro and con of the various options available. If married, both husband and wife should attend together."

The best speakers have some kind of priest or missionary experience the other half have only financial certification.

After speakers introduce themselves, they give the necessary scary picture of the economic environment and the expenses in retirement. In the end they promise they would be your saviors:

After the 2008 financial market crush and in the current recession environment the topic is high on financial security in retirement. The indexed annuities become star options for IRA accounts.

Other topics may include:

• How to reduce the income tax liability in retirement;
• How to protect your assets from catastrophic illnesses;
• How to stretch the IRA accounts to provide income through generations;
• Are the Roth conversions right for you?

My point for would be soon retiree is: Get all the education on the subject before you commit you 401k hard saved money to financial advisors.

Autor: Ernest Ionescu

http://investing-manage-properties.com

http://winner4us.com

Visit my websites at the above links

Thanks,

Ernest Ionescu

Added: February 9, 2010
Source: http://ezinearticles.com/

How Much Money Do You Need For Retirement?

People are living a long time. In fact, we're living longer today than ever before. You'd think that was a good thing, and in most ways, it is. But when it comes to retirement, a long life can be a challenge. If you retire at age 65, but live another 20 years after that, how are you going to pay for your needs? Social Security isn't up to the task for most people; they need more than those small checks to get them by in their later years.

That's where retirement savings come in.

If you start early and invest regularly, you will save up enough money to retire in style. You might not have a yacht and a mansion, but you'll be able to live comfortably without worrying too much about money - a luxury which, unfortunately, is becoming rarer for American seniors.

So how much money will you need? It's impossible to predict an exact amount, but most experts recommend 70-75% of your current income from the time you start drawing on your benefits until the day you die.

Estimating the time between retirement and death is the tricky part. If we knew when we were going to die, we'd all be prepared. But since we don't know, we have to make an educated guess. (Of course, accidents do happen. We can't predict them, but we can carry term life insurance to provide for our dependents in those eventualities.)

Look at your siblings, parents, and grandparents. How long did they live? How is your health and lifestyle compared to theirs? Did they have heart disease, cancer, or diabetes? By looking at the average life spans of your family members, you can get an idea of your own longevity. If you take better care of yourself than they did, you can tack a few years onto your estimation.

Let's say you make a salary of $50,000 a year and want to start drawing from your retirement benefits at age 65. Social Security (if it exists by then) will help you out, but won't keep you anywhere near your standard of living. To live comfortably to the age of 80 on 75% of what you earn today, you'll need to have $652,950 by age 65. That figure takes inflation into consideration; it's the same as $224,848 of today's dollars. If you want to travel in your old age, add 20% to that figure.

So how are you progressing along the road to retirement? If you're not saving now, you should start immediately. Every dollar you invest in your retirement is a dollar you won't have to worry about later. And retirement is supposed to be all about relaxing, right?

Autor: Paul MacPherson

By Paul MacPherson
http://twohourblog.com

Paul MacPherson is an entrepreneur from Canada. He operates several web businesses and is experimenting with a location independent lifestyle. Visit his website ( http://twohourblog.com ) to learn more.

Added: February 8, 2010
Source: http://ezinearticles.com/

New View of Retirement Planning

Many financial firms are now claiming they have a "new plan", "new perspective", "new advice" for investors. That their "green line" or "red zone" of expert advice will now provide investment and retirement guidance that will "take you where you want to go".

What is this new groundbreaking advice? How is it different from the advice they were giving two years ago?

On the cover of recently received magazine it has the title "Tools of TRUE Diversification: Skillfully applied asset allocation can reduce a portfolio's overall risk profile." Was the prior advice to do a FALSE diversification? Was the financial "advisor" who recommended this UN-skilled?

Two observations:

1. What most people were advised to do regarding their investments over the last 20 years didn't protect them at the time they needed protection the most (2008-2009) despite the promise of protection.

2. What you discover when you talk to the financial sales firms is that they have changed absolutely nothing about what they're offering and advising.

The exact things that failed to protect investors against the meltdown of the last 24 months (namely asset allocation utilizing mutual funds bought now, when ever now is, with no regard for the price of assets), are the exact things that these firms are offering today.

To invest successfully one must do two things:

1. When making investments have the mindset of a smart consumer. Seek bargains in quality companies, buying great businesses at prices less than the business is worth.

2. When selling investments have the mindset of the wise farmer. Sell assets when the asset "suggests" it is ready to sell, just like the farmer harvests corn when it is ripe and ready to be harvested.

These two principles are the very antithesis of asset allocation. More importantly these principles worked over the last 24 months where asset allocation did not.

All this business about green lines, red zones, and such is nothing more than the same product/service with new packaging.

Autor: Dana Barfield

Dana Barfield invites you to visit his retirement home page http://www.retirementwhys.com and blog blog.retirementwhys.com. Be sure to ask for the report Selecting Retirement Investments when you visit either of these resources.

Added: February 6, 2010
Source: http://ezinearticles.com/

5 Steps to Becoming a Master Investor

1. Diversify - Diversification is a powerful investment tool that helps you reduce the risk of holding aggressive investments. Diversifying simply means that you should hold a variety of investments that do not move in tandem in various market environments(for instance bull and bear markets). You do not need 50 different funds in order to diversify. You can diversify with five, at the most 10, mutual funds or ETFs.
2. Keep fees to a minimum - For both mutual funds and exchange traded funds you can look at the 'total expense ratio". The best case is an expense ratio less than 1%, and certainly no higher than 2%. For mutual funds you also have to watch out for "sales load". This should always be zero, as in no-load.
3. Be aware of your time frame - Match your time frame to the investment. For example, for money that you expect to use within the next year, focus on low-risk investments such as money market funds, certificates of deposit or U.S. government bonds.
4. Ignore the "gurus" - Pay no attention to the fortune-tellers and prognosticators who are paraded on CNBC. Predicting the future is impossible. If anyone could actually predict future prices of the stock market they certainly would not be telling you about it!
5. Start Now - If you have haven't started putting away money to invest, start now! Open an investment account today and setup automatic monthly contributions. The younger you are, the more money you will have come retirement. The magic of compound interest multiplied by time is powerful. So, don't wait. Start investing today!

Autor: James Fowlkes

Hold on... I've got one more secret to tell you about investing,... buy-and-hold is broken! My clients' accounts made new equity highs this year while most people were still recovering from the bear market of 2008. Want to know this powerful investing secret? Get your FREE copy of 'Buy-and-Hold Sucks Market Timing Rules' at SimpleVesting http://www.simplevesting.com.

Added: February 5, 2010
Source: http://ezinearticles.com/

Estate Planning - Here's What You Need to Do to Ensure Financial Security

After the Health Care bill gets some sort of resolution on Capitol Hill you can be assured that the estate tax issue will be coming to the forefront.

The current debate started way back in 2001 with the "Economic Growth and Tax Relief Reconciliation Act of 2001." In that act, Congress elected to abolish the estate tax... for one year: 2010. In 2011 the tax comes back at the same level it was in 2001.

It's looking more and more like the estate tax will be re-instated for 2010 with an exclusion amount considerably higher than it was back in 2001.

I've left out a lot of the details here for one reason... it really doesn't matter right now. Really. What does matter is that you do your estate planning now. You can always call your financial planner for more details on the intricacies of what the debate entails but what strikes me as far more relevant is how few people have done any proper estate planning at all!

We know the significance of having a proper will, a solid health care surrogate and trusts, but it's just one of those things we would rather avoid until someone like us tells you that you have to get it done.

If you have done an estate plan it may be time to do a review. Trigger points that may tell us a review of your estate plan is in order would include:

• You have children
• Your children grow up
• Death or Divorce Marriage or remarriage
• Your circumstances change
• Your assets increase or decrease significantly
• You want to make changes
• The law changes

Through our many years of experience, the advisors at Northstar have found excellent attorneys that have taken care of many of our clients and their estate plans. Is it time that you sit down and review your estate plan?

Autor: Allen Giese

Northstar Financial Planners is a fee-only investment advisor, devoted to a structured asset class investment strategy.

Allen Giese has been a financial advisor for over 17 years, working with professionals, business owners, executives and retirees. He is founder and President of Northstar Financial Planners. Prior to founding Northstar, Allen had worked in the securities and insurance industry, working as an agent and representative. He has also owned businesses in the retail sector and was a professional violinist, having received his degree from the University of Miami in violin performance. He continues to play music with his musical friends.

Added: February 4, 2010
Source: http://ezinearticles.com/

The Truth About Retirement Accounts Laid Bare

Choosing to have a retirement account is always a good idea, but one should not do it blindly. There are many aspects of retirement accounts that need to be considered before jumping on the bandwagon.

The first and very important item to consider is the charges placed associated with such accounts.There are many penalty charges that can be incurred by account holders if their transactions are not done in the right way. These charges are not simply given by the IRA account but also by the IRS, the Internal Revenue Service. Retired people must be fully aware of these charges and be prepared for them.

There are also additional charges given by banks where the retirement account is hosted. Set up and maintenance fees have to be paid to the company, and withdrawals of CDs from accounts when they have not matured also incur penalties from the bank. One has to be prepared to pay these fees because some are unavoidable, and one cannot set up a retirement account without them.

Many account holders choose to hire custodians, brokers and other third parties to handle the accounts on their behalf due to different reasons. This can be very good if the third party is dependable and honest, but it can mean great losses if they are dishonest. Many retired individuals have lost their retirement funds not only due to brokers' commissions but also due to mishandling of their retirement accounts by other people. Retirement accounts should be taken care of as they usually hold a lot of money and a lot of people's futures.

Inflation rates are also a point of concern for account holders because their money may lose its value slowly after some time. The standard rate of inflation is 3% per year, meaning that the worth of the retirement money in the accounts can do less for the retired person every year. This requires the retired person to find methods of continuously gaining money in their accounts to curb inflation, mainly through investments.

These factors must be considered when deciding on whether to save the retirement funds in a regular savings account or in specialized 401K accounts.

Autor: Marcus De Maria

Marcus is dedicated to providing financial education that helps individuals create wealth for themselves and their families.

Marcus is the author of the book, 'Wealth Workout - the Simple Seven Step Formula for Financial Success', and the contributor to various money, finance, stock market and property publications in UK. For more information on how to make more money and to get a wealth workout please click here wealth-workout.

Added: February 3, 2010
Source: http://ezinearticles.com/

You Can Laugh at Social Security Worries - Just Follow This Simple Plan

I enjoyed my career with all the enthusiasm that I could muster. My years of toil were fulfilling and I never regretted the choices that I made. I was part of that large army of workers known as "job shopper" and it let me live and prosper in many locations. Although this was good for me and family, it was not good for my future. To make a point, most job shops were focused on the contract at hand with little or no concern for the future. The result was a total void in planning for the future.

Although I did not realize it at the time, the only plan for the future for me was the mandatory FICA, or Federal Insurance Contributions Act, that was automatically deducted from my salary. Always a bit of an irritation, it has saved me from having no support at all in my autumn years. I discovered that when I reached the magic age when no longer employable, the only thing between me and destitution was the Social Security check that comes regularly each month.

By some standards, the government check might be classed as meager but, as I soon realized, it has really been a life saver. I remember a student counselor at my university that had sage advice for returning veterans. Upon hearing a student moaning about the difficulty of existing on the GI bill, this knowledgeable retort from tempered by years of experience was, "Young man, you should try to make it, as I did, without the GI bill!" He meant no disrespect for the veteran but did make a good point.

Now that I find it my only source of income, I look with glee at the regular Social Security check that is deposited into my bank account. And, on careful consideration, this meager sum is as good as it gets. Disregarding the turmoil about this retirement that is coursing the nation, I plan on using this to my advantage for as long as possible. Social Security information has been a reality for more than six decades. Five years after becoming law, the first Social Security check was mailed out.

I will not belabor the point of Social Security benefits that many seniors count on for their existence. But what I do intend to uncover here are a few salient tips for making the money go farther. Maybe the best single point to remember is the advice of the counselor to veterans years ago. Imagine what it would be like without Social Security benefits. You can make your dollars go further by applying these tips for Social Security recipients.

1. Look closely at your lifestyle and eliminate whatever is not really necessary.
2. Rid yourself of an automobile. This will save money because there will be no need for insurance.
3. Get a bicycle for running errands in the neighborhood. If you have trouble with a bike, consider an adult tricycle, very good for shopping purposes. You can carry more.
4. Search for an organization that provides Meals on Wheels. These are usually very economical.
5. Check to see if your community has any help for its Senior citizens.
6. Avoid any luxuries for which you are accustomed that can be eliminated.
7. Look for places that need volunteers for your skills. Usually does not have a salary other than the good feeling that comes from helping others.
8. If possible, get a computer and get on the Internet. Most services have special rates for Seniors. The Internet is a golden source for information and entertainment. Statistically, Seniors that enjoy the Internet have a much fuller life than those that do not.

These suggestions are just the tip of the iceberg. There are many, many places and services that are accessible to Seniors and will provide not only money savings but a diversion for the older generation. There is no reason that you should not enjoy your later years with the same enthusiasm and when you were younger. As a matter of fact, most oldsters agree that the senior years can be very exciting if the needs for existence are put on the back burner.

Autor: Dale R Smith

Dale R Smith http://www.drsaff.com. My eMail is drsmith7684@sbcglobal.net. I invite you to enjoy your golden years... do not let them keep you down. Make the best of them.

Added: February 2, 2010
Source: http://ezinearticles.com/