Posted on January 27, 2012 by Erin
Got a million dollars for retirement? Think it’s enough? Think again. A million dollars sounds like a whole lot of money to most folks, and it is! But in today’s market, one million for your retirement fund simply may not cut it when you need your money to stretch for your entire retirement. Why? Let’s think about it.
The average lifespan of most people today is longer than any point in the past. Living to age 90 isn’t that unusual anymore, especially with modern medicine. If you retire at age 62 and live until age 90, that’s 28 years that you will need to fund. Where you live and the lifestyle you want to maintain can significantly increase the amount of money you will need for retirement. You also have to take into account the cost of medical care. Do you have long term care insurance to protect you in case of an unforeseen medical expense? One hospital stay has been known to throw many people into financial turmoil.
Social Security is unstable and is not enough to live on for many households. It’s never too late to start preparing for your retirement by looking into Annuities and Long Term Care Insurance as options to help protect yourself.
What’s your retirement savings goal? How far along are you and are you confident you will reach it? Let us know your thoughts!
Use the NewRetirement Retirement Calculator to see how far away you are to reaching your goal!
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Posted on January 25, 2012 by Erin
Recently, a study put out by Ameriprise Financial took a look at the different ways men and women plan for retirement. Not surprisingly, both sexes reported not feeling 100% prepared. What was a little more surprising was just exactly how different men and women look at retirement planning.
According to the study, 54% of men report investing money into accounts such as IRAs and 401Ks while only 46% of women report the same. It was shown that men tend to pick a number with which they deem to be their goal for retirement savings. They work toward this goal and do it mostly through their investments. Women on the other hand were shown to think not so much about the specific number they want to hit, but the lifestyle they want to have during retirement. But the study still shows that both sexes are underestimating the amount of money they will need in retirement. With longer life spans, more expensive medical costs and the uncertainty of Social Security, everyone needs to begin to become more realistic with their retirement planning.
Are you prepared? See how long your money will last you in retirement. Use our retirement calculator.
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Posted on January 3, 2012 by Erin
With the economy the way it’s been and the cost of living being so high for so many people, the thought of retirement is something that is simply a dream for many. But that thought just isn’t acceptable for some people and they’ve taken the matter into their own hands. They’re up and moving out of the country to get their retirement dream!
In a study done by Internationalliving.com, it was found that Ecuador is one of the most popular places for retirees to retire. Expenses here can be as little as one fifth of what they are in the U.S. In many cases, people can retire up to 10 years earlier than they would have been able to in the U.S. and they can also afford luxuries like maid services and weekly massages (how does $25 for an hour long massage sound?!). There are many places to explore around the world that could make your retirement a reality and could create something you may have never even dreamed of!
Can you afford to retire? Do you know when you will run out of money? Get answers by using for retirement calculator.
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Posted on December 30, 2011 by Erin
It’s that time of year again – Time to make those New Year’s Resolutions! This year while you’re thinking about all the ways to improve yourself or your life in 2012, don’t forget to add improving your retirement plan to that list!
What do you plan on achieving this coming year to help strengthen your retirement? Are you going to invest more money into your IRAs of 401(k)s? Are you going to purchase a lifetime annuity to guarantee income later in life? Or are you going to look into Long Term Care Insurance to make sure you are covered in case of unexpected medical costs? There are many small adjustments that you can do to increase the health of your retirement plan. You can use our retirement calculator to see what a small adjustment can do for you and how far your money will stretch. We’ll be here in the New Year to continue to help with all of your retirement planning needs – Have a Happy New Year and see you in 2012!
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Posted on December 14, 2011 by Erin
Some good news in retirement planning! Last week, consulting firm, Towers Watson, found that out of the companies that had halted their 401(k) matching programs, three-fourths of them have now once again begun the practice.
The end of matching programs started back in 2009 when it was more evident that the economy was not getting better and corporations’ bottom lines began to suffer . Though the savings programs were still available to employees, the days of receiving big matches were no more. Now, Towers Watson has found that out of the 231 companies that had admitted to stopping their matching, 205 have brought it back and 8 out of 10 of the companies reinstated the match at the same levels that they had previously offered.
This is great news for those who still contribute to their 401(k)!
How is your retirement saving coming along? Will you have enough to last you throughout your entire retirement? See when and if you’ll run out of money by using our retirement calculator.
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Posted on December 13, 2011 by Erin
In a continuation of end of year retirement fund reminders and wrap ups, it’s a good time to let you know about two important dates that are coming up very quickly. The first is December 31st. This is the last day of the year that you can make a 401(k) contribution that will count for your 2011 tax return. So if you haven’t put in $16,500 (or $22,000 if you’re over 50), you better hurry up! You only have a few weeks.
Next up is of course, tax day, April 17th. We know it’s only December, but this is a date that seems to sneak up on a lot of people every year. After the clock strikes midnight and it turns into 2012, you can still make IRA contributions up until April 17th, but you will need to be specific as to what year it is for. The financial institution that holds your IRA will assume that the contribution is for the year that you made the deposit.
Two very important dates that can help you save more for your retirement!
Do you have to play catch up with your retirement savings? Use our retirement calculator to see where you stand.
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Posted on December 8, 2011 by Erin
This year, workers have continued to contribute to their 401(k) plans, yet the money in those accounts continues to drop. According to Fidelity, the balances have dropped almost 12 percent from June through the end of September. How can it be that more people are investing more money while their work places are matching, yet these people seem to be further away from their retirement savings goals now than they ever were before?
A few different reasons. Remember the credit downgrade from Standard and Poor’s 500 index and the European debt crisis earlier this year? These helped the markets become shakier than they were previously and the stock market reacted by declining. Luckily, because 401(k)’s usually include a mix of bonds along with those volatile stocks, the damage was less than it could have been. Bonds saw good investment gains in the third quarter of this year which helped to offset the deep declines from stocks. Fidelity also reported seeing a small increase in hardship withdrawals from 401(k) which also contributed to the decline in balances.
Is your money still in a 401(k)? Do you intend to keep it where it is or do you have other plans?
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Posted on November 30, 2011 by Erin
Earlier this week, Fidelity released a study that looked at the investment strategies of higher education employees. Fidelity took 600 participants across three generations, Boomers, X’s and Y’s, and examined the differences in retirement strategies.
Conventional wisdom tells us that since the people in this survey have a background in higher education, they should know more about investing than an average Joe. But what Fidelity found was quite interesting: More than half of those surveyed admitted that they were on a beginner’s level when it came to understanding their investments. And 63% were worried they would never be able to retire. Another interesting find in the study is that the young investors who have time to take on extra risk with their investments, are on the same conservative plans that boomers who are nearing the end of their working years are on. So it seems that these folks are on par with everyone else when it comes to retirement planning – Not nearly close enough to being secure.
How is your retirement planning going? Check your progress with our retirement calculator.
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Posted on November 17, 2011 by Erin
Do you plan on working longer than the average person’s lifespan? Sounds ridiculous, but that’s the new face of retirement. In a survey done by Wells Fargo, it was shown that Americans have only been able to save 7% of what they need for retirement. And 30% of people that were close to the age of 62 have actually saved less than $25,000 for their retirement. The outcome is that people are now expecting to work until they are 80 years of age or older. No more is there a concrete age that you plan to retire by. The new reality is, people are better understanding the amount of money they will need to have a good retirement. If it takes working until they are 75 to reach that goal, then that is what they will do.
It also turns out that many people are choosing to work longer regardless of their financial situation. Granted, 42% of those surveyed said they hope to have a job that has less responsibility than their current job, the trend is to stay in the workforce and remain active for as long as physically and mentally possible. How do you feel about working past the average retirement age of 65? Is this something you want or have to do?
How much money have you saved for retirement? How long will it last? Find out by using our retirement calculator!
Looking for ideas on retirement jobs? Take a look at some of our suggestions.
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Posted on November 14, 2011 by Erin
Can you specifically define terms such as mutual funds, stocks, asset allocation and large and small caps? It’s not too terribly shocking if you can’t. Back in October, the Labor Department ruled that all companies that offer 401(k) plans must offer unbiased retirement planning advice that helps the workers enrolled in the program to receive help in understanding what these things mean. But it turns out, according to the Wall Street Journal, only one fourth of all workers who have access to this financial advice actually use it.
Not all of us can be financial experts– and that’s why it’s smart to take advantage of these kinds of services. Some 401(k) plans are set up in a pretty smart way– they are set to a high level of risk in your younger years and as you age, the risk percent begins to decline. But not all plans are set up this way and some are very confusing – which is why everyone should take advantage of this advice. Chances are, people are going to need help figuring out how much they’ll need to save to reach their ideal retirement picture, how much they’re truly spending now, at what age they will need to start collecting social security, and on and on and on! Why ignore FREE retirement planning that is just waiting for you! Be smart and take the advice. Read here for more ideas on how to take advantage of the information.
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