Tag Archive for Save For Retirement

Are You Making Excuses To Justify Not Saving For Retirement?

June 17, 2013 / / Comments Off

Why Are you Not Saving For Retirement?

saving for retirement I will start saving my money for retirement when…my student loans are paid off, when the house projects are completed, when the kid’s college is paid for, when I get a raise…the excuses and reasons are limitless as to why you aren’t saving for retirement diligently.  In a recent survey by the employee Benefit Research, over 54% of Americans have less than $25,000 put aside for retirement.  As the excuses pile up, the reality of the matter is, Americans will not enjoy a full and wonderful retirement unless they get their act together in retirement saving.

The Six Most Common Reasons Americans Are Not Saving For Retirement

1. Paying For Kids College Is Delaying Retirement Savings

As the cost of higher education is on the rise, many parents have felt the responsibility of helping their kids save for college.  Unfortunately, in most homes, paying for college has come at the expense of retirement planning.  For students, even though it may be unpleasant, there are always the options of scholarships, grants and student loans.  Retirees don’t have the option of taking out a Federal loan for retirement.  It’s either put money aside, or don’t retire.  If it’s your children’s well-being you are concerned for, imagine how your child will feel if you become a burden later in life because you didn’t adequately prepare yourself for retirement.

2. Don’t Bank On  A Bad Gene Pool As An Excuse Not To Save For Retirement

One of the biggest mistakes people can make is making the assumption that they don’t need to save for retirement because they will probably die too young to need to retire.  Just because dad or grandpa died at 60 of a heart attack, is no reason to assume that you will follow the same pattern. With improvements in modern medicine people are living longer and healthier than ever before.  The worst case scenario is the penniless 99 year-old who didn’t adequately prepare for his retirement.

3.  Don’t Plan on Relying Solely On Social Security For Retirement Savings!

Have you been watching the news recently?  According to the most recent data, Social Security is currently projected to run out of reserves by the year 2037.  Unless something is done by congress to change the deficit in funding for social security, younger Americans can only expect 75% of their benefits at best.  The current benefits awarded to seniors are just barely above the poverty line.  When that decreases, seniors will need their own savings to draw from just to make ends meet in retirement.

4. Working Forever Is Not A Retirement Plan

Even though you may think you have no desire to retire and plan on working until the very end, many things in life are outside of our control.  The number one reason people are forced to quit working early is due to health problems for themselves or a loved one.  A co-worker of mine, for example, planned on working until she physically couldn’t work anymore.  At 70 years old, she was forced into “early retirement” when her husband became very ill and she had to stay home to care for him.  In her situation, she would have never planned on that being an issue, but it’s essential to have a retirement savings to fall back on in case life happens and you are forced to retire.

5.  I have Too Many Expenses Right Now To Save For Retirement

The next big excuse, is that life is too expenses and that it’s impossible to rob from current expenses to salt away money for retirement.  If you’re in this situation and you are just too strapped to think of even one more financial outlay, your solution may be the old-fashioned budget.  By putting yourself on a strict spending budget, and working hard on credit card debt, you may be able to find a little extra to put towards retirement.

6. Unemployment Is Preventing Me From Saving For Retirement

Of all the excuses, this is probably the most legitimate and most difficult to work around.  If you’re income has stopped due to unemployment you may have no choice but to put retirement on hold for the meantime until you find another job and begin making an income again.  Once you are back on your feet, kicking it down and saving hard for retirement will be essential.

The point of the matter is, there are always reasons why saving for retirement is “impossible”.  However, I’d like to encourage you to make it a priority in your life.  Begin this month, setting aside money each and every pay period to put towards your future.  When you reach retirement age, you will be so glad you took the time to plan ahead.  For more information on obtaining financial freedom in retirement and how to manage your retirement portfolio, speak to a Redhawk Wealth advisor near you today.

 

 

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How Do I Save For Retirement When My Parents And Adult Children Need My Financial Support?

April 2, 2013 / / Comments Off

Trying To Save For Retirement While Supporting Adult Children And Care giving For Mom? 

Save For RetirementDon and Susan are 50 years old, she is a nurse at the hospital, and he has been working in sales and marketing for the last 25 years.  They have three adult children, one whom they are still trying to help through college, and the middle child who is 25 and has a 3 year old, their only grandbaby just moved back in with them after being unable to make her mortgage payments when she lost her job.  In addition, Susan’s mother just lost her driver’s license and is having difficulty shopping and caring for herself because her eyesight is beginning to fail.  Susan is considering quitting her job so she can help babysit her grandbaby and take care of her mom when her daughter is working.

Does this scenario sound familiar?

How To Save For Retirement When Family Obligations Are Straining Your Finances? 

In a new survey by Pew Research, it turns out that 48% of Middle-age Americans are financially supporting their adult children, and 15% are helping both children and parents.  So if you’re finding yourself in this situation, you’re definitely not alone.  However, if the plan was to use the next 15 years to work hard to salt money away for retirement, it can really feel like your retirement plan is spiraling out of control.  So what do you do when your retirement dreams are being thwarted by responsibility to ailing parents, and a financial drain in the form of your adult child and grandchild?

Define Financial Boundaries To Save For Retirement

One of the biggest keys to avoiding this scenario is to know when to say no.  It may be necessary to have your 25 year old and 3 year old grandbaby staying with you, but it is important to draw some financial lines.  Such as, give her a time frame in which she needs to find  a second job, make her be responsible for her cell phone bill and her insurance payment, and force her to tap into state resources such as WIC, and child care assistance to contribute to the family by covering some of her own bills.  Once she has a job you can make her contribute towards rent and utilities as part of her fee for staying in the home.

As far as your aging parents are concerned, there are a myriad of social services out there who can help you as you are trying to care for your mom while maintaining a career.  Depending on Susan’s mom’s finances, there are many services such as adult day-care, senior centers, and in home services that can help with shopping, cooking and cleaning.  Many of the services can be cost effective in comparison to quitting a job to perform the care giving tasks.  Mom may not be ready for assisted living or a nursing home situation, but it can definitely help lighten the financial burden of care giving.

Care For Your Family And Still Save For Retirement

Ultimately, family is the most important thing in your lives, and it’s important to find a balance between meeting the needs of your loved ones, while still ensuring you’re well taken care of financially in retirement.  Think of it this way, if you’re pouring out and caring for your adult children and aging parents, whose going to be caring for you if you’re unable to save for retirement?  It’s a lesser burden on your children and everyone involved, when you have properly planned for retirement.  For more information on balancing current financial obligations and retirement planning, speak to a Redhawk Financial Advisor near you today.

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Update: How Much Do I Need To Save For Retirement?

November 27, 2012 / / Comments Off

Americans Underestimate The Cost Of Retirement

Invest To RetireIn a recent Wells Fargo poll, that included 1,000 middle class Americans from the ages 25-75 there were some astonishing misconceptions regarding retirement and retirement savings.  The Average American polled responded saying that they would need only $300,000 total savings in order to survive well during retirement and only 36% of Americans even have a plan in place for retirement.  What is going to happen To America if the bulk of its population spends the latter part of their lives in poverty due to ill preparation for retirement?

What Is Preventing Americans From Saving For Retirement?

We live in a world that favors instant gratification.  We hate waiting in lines, we prefer microwavable, pre-packaged dinners that ease the burden of time and decrease any work involved.  We fall victim to get rich quick schemes and prefer easy solutions rather than options that require planning, diligence and discipline.  This is the reason retirement is going by the wayside in America.  According to the Wells Fargo poll mentioned above, 52% of Americans say that their biggest financial concern is making their monthly bill payments.  And Only 20% feel that Retirement saving is a concern.  Yet, most of the Americans polled admitted that a pressing financial concern includes saving for a vacation, or planning a remodel for their home.  What has happened is Americans have developed an entitlement mentality and prefer the instant gratification of luxury now, compared to being frugal and thrifty and saving for the future.

Retirement Requires Diligence And Planning

Laurie Nordquist, the director of Wells Fargo Institutional Retirement And Trust made the comment: “People tell us that retirement preparation should be on their shoulders but they are grappling with the financial pressures of each day. As a result, retirement has become a guessing game. But, people can’t afford to approach twenty plus years of their life by ignoring the facts. People are telling us that times are tough financially – even more so than a year ago — but people also need to take action.”  What it comes down to, is no one can guarantee whether or not social security will be intact when it comes time for you to retire.  Employer based pensions are no longer a guarantee.  What is a sure fact is that you will age, and you will eventually have health problems and not be able to work.  The alternative is, a premature death.  So assuming you aren’t met with an early demise, you will one day be fully dependent on your savings and diligence from your working years in order to keep a roof over your head and maintain a standard of living.

Talk To A Redhawk Advisor To Plan For Retirement

If this strikes a chord in you, or if it concerns you for your future or the future of a family member, it is time to go against the crowd and be one of the few that actually seeks out an advisor for some financial advice.  When your retirement day of reckoning arrives, be one of the few that can embrace that day without worry or concern for your financial well-being.  By planning ahead and starting today you can learn how to better manage your spending and save now for the future.  Redhawk advisors are unique because they offer many different investment options that are suited for all different kinds of economic climates.  Whether its hot or cold in the markets, redhawk advisors have the ability to point you to an investment catered for the investment climate today.  Do yourself a favor and find a redhawk advisor in your area and just talk to them.  Find out what you can be doing differently to set yourself apart from the rest of the Americans who are facing some rough financial roads ahead.

 

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Update: The Student Debt Bubble Is Squeezing The Life Out Of Americans

October 24, 2012 / / Comments Off

How Can I Save For Retirement If I’m Spending My Life Paying Off Student Loans?

There is a plague that has infected Americans, and that is the sickness of student debt, and the burden it creates for many Americans.  A recent survey has indicated than 1 in 5 households are plagued by student debt, and on average, will spend 20 years of their working life, just trying to break even on their student debt.  Lets just say you have $40,000 in student loans, and that you got locked into a private loan with an exorbitant interest rate of 8%.  The interest alone, is enough to make your debt burden compound.  Compared to twenty years ago, Americans are carrying triple the debt load, and that is largely due to student loans. 

Update:  How Is Student Debt Impacting The Economy?

A recent survey in Wisconsin has examined the student debt crisis facing residents of Wisconsin, and has determined that:  “The trillion-dollar student loan debt is not just a crisis for students,” said Scot Ross, the Wisconsin organization’s executive director. “It is literally standing between college graduates and their share of the American dream and a more robust economic recovery both nationally and, as shown by our research, in Wisconsin.” For the economy specifically, it creates problems because the average person is spending money on student loans that would have otherwise been put towards a car or a house payment.  For an individual graduating with a bachelor degree, the average monthly payment is $350.  If the same individual is graduating with a masters degree those payments can be increased to $450/month.  The Wisconsin survey has also demonstrated that Americans who have student debt are more than 20% less likely to purchase a new car than a person who is not holding student debt.

What Is The American Dream And Is Your Student Debt Preventing You From Sharing In It?

If you view the typical American dream that includes a nice house, with a 2 car garage, and a picket fence, it’s worth considering that many Americans in their drive to pay off student debt are unable to purchase a home.  85% of renters enjoying a household income between $50,000 and $100,000 are renting solely due to student debt.  Therefore, it is a concern for the enjoyment of the American dream. As well as an obvious concern for the recovery of the housing market, that Americans are too saturated with debt to make major purchases.

How Will I Ever Retire If I Spend My Life Paying Down Student Debt?

Update: Student Debt BubbleAn obvious concern for many college graduates, is how can I start putting money aside for retirement later, when I have the need to pay down my student loans now.  However, if you are 22 when you graduate from college, and begin paying on your loans at 23 after the 6 month post graduation deferment period is over, the odds suggest that you could still be paying on those loans in your 40s.  How can you even begin to start saving for your children’s college, much less your own retirement future, if you’re too busy paying down debt?  If this situation resonates with you, then it is time to talk to a financial advisor to see if you can get yourself some financial help.  Click here for more information

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America’s Broken Retirement System

August 15, 2012 / / Comments Off

Most American’s Are Failing To Save For Retirement

Keep Yourself From PovertyAs the largest generation to ever retire is retiring at the rate of 10,000 new retirees every single day, it is disastrous to realize how ill-prepared most retirees are for retirement.  According to recent information, 75% of Americans who are near retirement have less than $30,000 in their retirement accounts.  Worse yet, 49% of Americans who have been accustomed to the middle class lifestyle for the majority of their lives, will be living at a poor or near poor level in retirement, with a food budget of only $5/day.  The statistics are disastrous.  There will be millions of poverty stricken older adults who for a myriad of reasons had been unable to adequately prepare for retirement.  Many were completely ignorant on how much they needed for retirement, others were laid off or lost the majority of their net worth in the financial crisis of 2008.  Others have other obligations, credit card debt, mortgage payments, school loans that have kept them from salting away retirement money.

How Much Do You Need To Save To Retire Comfortably?

Most financial planners will tell you, that to simply maintain your standard of living in retirement, you ened about 20 times your annual income.  That’s a significant chunk of change! If you make $100,000/ year, that would mean you will need to set aside 2 million of your own assets beyond Social Security.  This may be feasible if you are 25 years old and actively saving every year; however, the older you get, the more difficult this number is to attain.  If you start saving at the age of 25, on average you will need to put aside 7% of every dollar you make.  If you wait until you are 50 that percentage goes up to 30% and so on.

Don’t Count On Working Forever In Lieu Of Retirement Savings

To compensate for their delinquent retirement savings many Americans have the idea that they will simply continue working rather than retiring at 65.  This approach may be naïve for many.  Unfortunately, the 50-70 age group is the highest growing unemployment rate, additionally, unemployed workers who fit that age demographic tend to experience longer periods of unemployment.  Not to mention, what if you experience health complications or are forced to care for a spouse with health problems preventing you from working beyond retirement age.  There are just so many variables to contend with, it is unwise to count on working till you die as a replacement for retirement.

What Do You Do To Keep Yourself From Poverty In Retirement?

While these statistics are rather sobering, they should serve as a wake-up call for the majority of Americans who are not actively preparing for their retirement. If you are among the 75% who have nothing put aside, now is the time to start saving.  For more information on how to formulate a financial plan that is appropriate for your age and place in life, visit greenmoneyupdate.com/barney

Statistics taken from:

http://www.nytimes.com/2012/07/22/opinion/sunday/our-ridiculous-approach-to-retirement.html

 

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How To Avoid Sabotaging Your Retirement

July 26, 2012 / / No comments

Avoiding Many Of The Pitfalls That Could Sabotage Your Retirement

Throughout life there are many financial pitfalls and mistakes to be made that could negatively impact your savings and your retirement fund, avoiding some of the mistakes now could save you some serious financial headaches later on life.  For example, some of the common pitfalls include:

Spending Your Retirement Savings To Bankroll Your Children

Sabotage Your RetirementChildren are some of the single most wonderful blessings a person can have during his or her lifetime, but can also be one of the most significant financial drains on your retirement savings.  Often times as parents it can be difficult to prioritize your own future and you may push off your own retirement savings for little Bobby or Suzzie who needs thousands of dollars every year to pursue dance, or karate, a new car, college, not to mention the $30,000 wedding they’ve always wanted.  These are all wonderful things, and as parents we desire our children to have the best, but it should not come at the expense of your own retirement planning and savings.  Bobby and Suzzie may not care as much about dance and karate as adults, when their own parents have become their financial dependents due to inadequate retirement savings.

Single Currency Homes Often Are Behind In Retirement Savings

According to statistics 1 out of 4 single income homes are well behind where they need to be in saving for retirement, vs. 17% of dual income homes.  This could be a simple factor of more households are choosing to have both husband and wife work causing the standard of living bar to be set a little higher, or it could be due to inflation and a struggling economy making it nearly impossible for single income home to get by. Regardless of the reason, your retirement portfolio will be easier to manage if both members of the family contribute to the family income.

 Paying Off Debt Instead Of Saving For Retirement

Often times people make the mistake of paying off their school loans, car payments, or dream home mortgage before they even begin to salt away money for retirement.  While it is important to be debt free, if you avoid all savings for retirement you often miss out on many years of compounding interest by not starting to save young.

Not Calculating How Much You will Need To Save For Retirement

Many couples have no idea how much they will need to save for retirement in order to maintain their pre-retirement lifestyles.  If you have a healthy pension plan on average you will need to plan for 60-80% of your preretirement income to be able to live at a desirable standard of living in retirement.  Also, you need to save enough for at least 25-40 years of retirement.  You want your retirement savings to outlive you, not the other way around.

Choosing Inappropriate Investments For Your Age And Risk Appetite Can Sabotage Your Retirement

The younger you are when you begin saving the more risks you will be able to take in your investments.  As you age you will need to reduce your risk exposure and make sure that you do not put all your eggs in one basket.  This will ensure that your retirement money will be at your disposal when you most need it.

Retirement savings can be really tricky, especially in an economy where no investment appears “safe” and very few are generating the desired profit many would hope for.  For more information on retirement planning and on retirement designated investments visit theannuityupdate.com 

 

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How To Achieve Financial Security In Retirement

July 10, 2012 / / No comments

7 Principles That Can Help You Attain Financial Security In Retirement

1.        Start Saving For Retirement Now

Whether you are young or old, today is the day you should start saving for retirement.  The more time your money has to mature and generate profit the more likely you are to have financial stability in your retirement years.  If you save 200/month at the rate of 5% and let that mature for 40 years, your nest egg will be significantly larger than someone who saves much more every month but only allows has it invested for 10 years.

2.       Pay Yourself First:  Retirement Savings Must Be Considered An Expense

In your monthly budget, allot a specific amount that is a calculated monthly expenditure for retirement savings.  This is absolutely imperative, otherwise other expenses will come up and before you know it the month will be over and you will not have put anything into savings.

3.       Invest in Tax-Deferred Investments When Saving For Retirement

One major incentive to saving for retirement is an investment where the taxes are deferred.  Not only will this encourage you to save, it will also prevent you from cashing in your retirement savings early due to the heavy tax penalties.

4.       Don’t Put All Your Eggs In One Basket:  Diversify Your Portfolio When Saving For Retirement

In a long-term investment such as retirement savings, the economy is subject to change as are your investments.  By diversifying in stocks, bonds, and precious metals you create a natural protection for your assets.

5.        Plan And Budget Your Retirement Expenses

It is absolutely imperative that you have a realistic idea of what retirement will cost you.  You need to sit down and determine your retirement goals, and what those goals will cost you.  This will help you ascertain the dollar amount you need in your retirement savings by the time you turn 65 and are looking at retirement in the near future.

6.       Reassess Your Portfolio Regularly As You Save For Retirement

As time goes on many things can change in regard to your investments.  Some may outperform others, the economy could change, and as you age your risk tolerance may wane as well.  This is why it is absolutely imperative that you constantly reassess your portfolio to determine if you are properly allocated given your financial goals.

7.       Reassess Your Monthly Retirement Savings As Circumstances Change

The amount you save for retirement when you are paying down student loans, paying off a mortgage, or putting your kids through college may be significantly different from when you are financially in a better place.  It is important that you evaluate your ability to save based on your income and expenses.  If you can save more in a certain season in life, it is to your benefit to evaluate and put more aside each month.

Retirement ExpensesAs an individual who is planning to one day retire, I encourage you to take the time to examine your retirement savings, and determine whether or not you are properly situated in an investment vehicle that will perform best depending on your individual needs.  For more information on retirement options visit theannuityupdate.net

 

 

http://www.investopedia.com/articles/retirement/06/10SecureRetirementTips.asp#axzz20FFoL0uN

 

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The Best Way To Prepare For Retirement Is To Live Within Your Means

July 2, 2012 / / No comments

Wondering If You’re Going To Be Prepared For Retirement Can Be Frightening

As the baby boomer generation is approaching retirement in droves at the rate of 10,000 of new retirees per day, many Americans are faced with the questions:  When should I retire?  And How can I ever afford to retire?  If You find yourself approaching retirement with fear and trepidation because you have no idea how to finance retirement, you’re not alone.  Preparing now, by taking simple easy steps such as the choice to live within your means will help you approach your golden years well prepared and at ease with what lies ahead.

Living Within Your Means Can Help Improve Your Retirement Savings

Retirement takes preparation and planning.  Without the necessary effort you could find yourselves at 65 years old and facing a retirement of financial stress, and boredom because of lack of necessary finances.  By choosing to live within your means now you can avoid major stress and headache later on in life.  Choosing to buy on credit has been the major downfall of many hard working Americans.  One bad financial decision such as financing that family vacation, can find you struggling to make ends meet and falling behind the 8-ball every month just trying to catch up from that financial setback.  If you save up and pay cash up front, you can greatly improve your finances.

Saving For Retirement

Living Within Your Means May Mean There Is Money Left Over To Save For Retirement

When you choose to live within your means, you may surprise yourself when you get to the end of the month and realize that there is still money left over that you can put aside and save for retirement.  If you do this on a regular basis and invest it wisely, your money will begin to compound and overtime you will find you have a nice nest egg set aside for retirement.  If you choose to live outside your means, this extra that you would be able to put towards retirement will quickly get eaten up in credit card bills and unnecessary purchases.    It’s not always easy to determine what’s a “want” and what’s a “need”, but over time living within your means gives you discernment on what’s really important in life.  It reminds you that material possessions certainly don’t buy financial freedom.  Do yourself a favor and speak to an advisor about retirement and retirement planning.  By preparing ahead and choosing to spend less, you will be able to retire in peace and security, without worry due to financial stress.

For more information on how to best prepare for retirement visit theannuityupdate.com 

 

 

 

 

 

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The Population Of Very Old Americans Is Steadily Increasing: Turning 100 Is No Longer An Anomaly

June 13, 2012 / / No comments

Living to 100

Your Odds Of Living To 100 Are Increasing, Are You Prepared To Live That Long?

30 years ago, living to the age of 100 was an incredible feat and nearly unheard of.  Today, the number of people that are filling the “very old” age group is steadily on the rise.  There are three times more people 90 and older than there were in 1980, with the population of 90-99 reaching 1.9 million, and the over 100 population at 750,000 people in the US, according to the US Census Bureau.

Are You Financially Prepared To Join The Ranks Of The Very Old Population?  Is Your Retirement Planning Sufficient?

Recent studies have indicated that the money you save for retirement directly impacts your quality of life during retirement.  Overall, men have a higher standard of living during retirement and more accumulated wealth than women do.  In 2006-2008 53% of men 90 and older lived with friends or family members, 30% lived alone, and only 17% lived in nursing home or institution.  Women, however, did not fare so well.  31% of women lived with friends or family, 40% lived alone, and 27% lived in nursing homes or institutions.

The Money You Save For Retirement Will Effect Your Quality Of Life:  Are You Prepared For Retirement?

The annual median income for an individual over the age of 90 is $14,760, which is barely above the poverty level.  Without social security, most of our oldest population group would be in serious financial trouble.  48% of those 90 years and older rely on social security as income, and 18.3% have a percentage of their income coming from retirement pensions.  People of the baby boomer generation may not be so lucky to count on either as a source of retirement income.  At the current rate of expenditure, social security is expected to be bankrupt by the year 2037, and retirement pensions are becoming nonexistent.  Additionally, the life expectancy continues to increase every single year.  By the time the baby boomers are fully in retirement the population of individuals reaching 90, 100 and beyond will steadily increase.

Are You Financially Prepared For 30+ Years Of Retirement?

Studies show that if your retire at the age of 65, you need to plan to live on your retirement money for 30+ years, and with the current economic state around the world, many common vehicles of investments are unpredictable and unsafe for retirees.  Annuities, may very well hold the key to guaranteed life-long income that will offer financial security till the day you die.  There are many different types of annuities with varying risks, penalties, and rewards depending on your age and financial goals.  For retirees, most just need a guarantee that the money is going to be there month to month for as long as they live. Start planning today to guarantee income, standard of living and quality of life during your latter retirement years.  For more information on annuities during retirement visit theannuityupdate.com 

 

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Most Americans Are Not Prepared For Retirement Even Though Planning Ahead For Retirement Is Essential For Quality Of Life During The Golden Years

May 23, 2012 / / No comments

Retirement Planning

Retirement Preparedness Requires Thinking Ahead And Saving For The Future

American tends to be a people group that concentrates more on the here and now and less on planning for the future.  One example of that is the family that lives paycheck to paycheck spending money on a fabulous trip to Hawaii, opportunities for their children to participate in an extravagant summer music camp, private school tuition, and all the latest and greatest toys and technology.   In and of themselves, the items they choose to spend their money on are not bad.  They may be justifiable as building family memories and having a wonderful time.  But someday, when the rubber meets the road, they will be like 60% of the Americans out there who are ill prepared for retirement.  By starting early and saving as much as you can at a young age it gives your money time to grow and compound.  This is the best way to accumulate wealth for when you need it the most.

Plan How You Want To Live In Your Retired Years To Set Realistic Goals On What  You Need When Planning For Retirement

Along with that, it is important to make sure the goals you set are realistic.  You are used to a certain standard of living; take the time to figure out how and where you want to live once you retire.  This will determine the amount you will need to supplement your social security and any other sources of retirement income such as a reverse mortgage.

Ask Yourself What Investment Options Are Available To Save For Retirement

Many employers offer 401(k) plans for their employees to save for retirement.  A 401(k) is an excellent option because it will give you an immediate tax deduction and tax-deferred growth on your savings.  Plus, in many situations companies will match your savings up to a certain percentage.  This offers greater incentive to put money away.  Other options include IRAs.  There are two different kinds, a traditional IRA and a Roth IRA.  They each offer unique tax benefits that are worth studying before you make an investment decision.

Asset Allocation Is Extremely Important When Planning For Retirement

Where you put your money is almost more important than how much you put aside.  The percentage of your assets that you put into stocks and bonds will hugely impact your returns.  Generally, stocks are better performers and achieve higher returns over the long-haul.  Choosing stocks with a high return, yet balancing your risk wisely is very important.  Many Americans invest too heavily into bonds.  Bonds are generally safer than stocks, but often the return can not keep up with inflation rates.  If your investment doesn’t keep up with inflation, no matter how much you put aside in your younger years you won’t have much of a nest egg left when you reach retirement.

Retirement planning is something you should not put off for a raining day.  Starting to save today is essential because you do not know what the future may hold or how many good working years you have left ahead of you.  If you have never considered your retirement options it’s time to explore the options that are available to you.  If you have been setting money aside for years it may be time to reevaluate the way your assets are allocated.  Since the slump of the 2008 stock market, times have changed in terms of investments.  Make sure that your investments are properly allocated to ensure your retirement is free of the money woes.

For more information on retirement investmetns and retirement planning visit redhawkwa.com

 


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