Retirement Savings Rule 1: Reduce Investment Risk as the Day Nears
This is the VOA Special English Economics Report , from voaspecialenglish.com | http Today, retirement can mean different things. For many Americans, it means the end of the money-earning part of their life and the beginning of a period of enjoyment. But retirement calls for planning and savings.In many countries, employers may offer some kind of retirement savings plan. The plan could be linked to the company’s stock or to a managed investment service. Almost any financial planner will say workers should use these plans to save money easily: often directly from their wages. But an employer plan should not be your only way to save for retirement.Pete D’Arruda heads his own financial planning company and gives retirement advice on radio shows and television. He tells people to save whenever possible. But he says as retirement nears, you must take fewer financial risks. “There’s three stages of life there when we look at it. There’s the part where you’re earning money. And when you’re earning money, if you have a salary, it makes it easier to take risk because you know that if you lose the money you can go back and earn some more.” By risks, Pete D’Arruda means investing in stocks and other financial instruments that can lose value quickly. He says people should move money away from riskier investments as they age even if there is a possibility of a higher rate of return. Instead, investors nearing retirement should seek more secure investments for their savings. “But then …
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Categories: Retirement Investing Tags: Investment, Nears, Reduce, Retirement, Risk, Rule, Savings
Categories: Retirement Savings Tags: Retirement, Savings
Retirement Savings Rule 2: Plan for Your Future Goals and Needs
This is the VOA Special English Economics Report, from voaspecialenglish.com | http Last week, we discussed limiting investment risk in retirement planning. So what are financial planners advising people to invest in? Stocks and bonds are the best known investments and are important to any savings plan. Instruments like savings accounts and certificates of deposit pay a small rate of interest. They carry little risk. Annuities are another savings instrument with low risk. Financial planner Pete D’Arruda says “Worldwide, people can put their money in annuities, which are basically savings accounts offered by insurance companies.” But he says it is important to make a decision about an annuity with a good financial planner. He warns that annuity agreements can be complex, and many bad ones are out there. Pete D’Arruda says good planning means placing money into financial securities and accounts that have different risk levels, using asset allocation. “So true asset allocation is having some in stocks, some in bonds, some in mutual funds, but then some in other places with guaranteed income and then safety and liquidity kind of accounts for emergencies.” This method of savings follows the old saying you should not “put all your eggs in one basket.” But that is not for everyone. Sande Taylor is with the investment company Charles Schwab in south Florida. She advises investors every day. She says many investors have a personal style. There are conservative investors. “A …
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Categories: Retirement Savings Tags: Future, Goals, Needs, Plan, Retirement, Rule, Savings
How to Set Up a Retirement Savings Account
Check out this cool app and learn guitar – howc.stExpand the description and view the text of the steps for this how-to video. Check out Howcast for other do-it-yourself videos from Real4Reel and more videos in the Retirement Planning category. You can contribute too! Create your own DIY guide at www.howcast.com or produce your own Howcast spots with the Howcast Filmmakers Program at www.howcast.com It’s never too early — or too late — to start saving for your retirement. To complete this How-To you will need: An investment provider Money to contribute Step 1: Know your rights Realize that even if you are already contributing to your company’s 401(k) plan, you are free to establish an individual retirement account, or IRA, as well. Step 2: Think about a Roth IRA Weigh the advantages of a Roth IRA. Taxes are taken at the get-go so you can withdraw money tax-free in your golden years. You may remove money, penalty-free, before age 59.5 for certain reasons, like buying a home, you may keep your money in it as long as you like, and you may continue paying into it past age 70.5 if you have earned income. Step 3: Consider an IRA Consider a traditional IRA, which lets you defer paying taxes on the money you invest until you start withdrawing it at retirement. You can’t contribute to an IRA past your 70th birthday, and you must begin taking distributions six months after that. Tip: To qualify for a Roth IRA, your modified adjusted gross income can’t exceed a certain amount. Check …
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Categories: Retirement Funds Tags: Account, Retirement, Savings
Baby Boomers – Afraid Of Outliving Their Retirement Savings
virgilcook.com or virgilcook.com I took a major hit in my retirement account when the market took a dump. and lost well over 50 percent of those funds. Like most of you at that time we are too far into the commitment of our retirement years to rebuild at a rate that would earn us those funds back
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Categories: Retirement Savings Tags: Afraid, Baby, Boomers, Outliving, Retirement, Savings, Their
ChangeWave Research: Baby Boomer Work, Leisure, Savings & Retirement Report
ChangeWave Research: Baby Boomer Work, Leisure, Savings & Retirement Report
Rockville, MD (PRWEB) September 7, 2006
As the first members of the Baby Boomer generation turn 60, those working in the business and technology professions report they’re saving more than they did five years ago. Nonetheless, nearly half say they are still worried about saving enough for retirement.
By a two-to-one margin (52% to 26%), Baby Boomer professionals are currently saving more money per month than they did five years ago, according to a new survey of 2,466 ChangeWave Alliance members aged 42 and over. The July 18-24, 2006 ChangeWave Research survey focused on Boomer work, leisure, savings and retirement plans.
Cutting Back. When respondents were asked what – if anything – they are cutting back on to save more money, the top three areas cited were travel/vacation (10%), children now out of College/on their own (10%), and eating out (9%)
Saving For Retirement. Focusing on retirement savings, three-in-ten (29%) Boomer professionals say they have saved more money for retirement over the past six months compared to the previous six months. Only 12% say they have saved less, while another 49% say they have saved the same amount.
Respondents were optimistic going forward – 28% saying they’ll save more over the next 6 months and only 7% less, with 56% saying they’ll save the same amount.
Such optimism notwithstanding, nearly half (47%) say they are still worried about saving enough money for retirement.
Biggest Fears. Deteriorating health (31%) and financial concerns (30%) were the top retirement fears , but high health insurance costs (10%) and boredom (9%) also received significant mention.
Punching the Clock. When it comes to work, Boomers are still punching the clock – working an average of 44 hours per week at their primary job. And while more than a third (36%) say they’d like to retire within 5 years, significantly fewer (27%) think they’ll actually retire in that time frame.
Moreover, their working days won’t actually end with retirement. An astonishing two-thirds (67%) of respondents say they expect to work at some point after they retire.
“All in all, the survey results are upbeat. They show that Boomer professionals are doing the right thing as they slowly begin moving towards retirement,” says ChangeWave Research Director Paul Carton. “They are saving more, working more – and they’re also worrying more about what their lives will be like after they retire.”
About the ChangeWave Alliance:
The ChangeWave Alliance is a network of 8,500 highly qualified business, technology, and medical professionals in leading companies of select industries-credentialed experts who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports. Visit http://www.changewave.com.
About ChangeWave Research
ChangeWave Research, a subsidiary of Phillips Investment Resources, LLC, identifies and quantifies “change” in industries and companies through surveying a network of thousands of business executives and professionals working in more than 20 industries. ChangeWave has a very unique asset in its 8,500-member Alliance. Their membership team is assembled from a broad cross section of more than 20 vertical markets such as telecom, semiconductors, data storage, and biotechnology, along with a wide range of professional disciplines including CIOs, IT managers and programmers, executive management, scientists, engineers and sales personnel.
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Categories: Retirement Savings Tags: Baby, Boomer, ChangeWave, Leisure, Report, Research, Retirement, Savings, work
The Retirement Savings Time Bomb . . . and How to Defuse It: A Five-Step Action Plan for Protecting Your IRAs, 401(k)s, and Other RetirementPlans from Near Annihilation by the Taxman
The Retirement Savings Time Bomb . . . and How to Defuse It: A Five-Step Action Plan for Protecting Your IRAs, 401(k)s, and Other RetirementPlans from Near Annihilation by the Taxman
- ISBN13: 9780143113362
- Condition: New
- Notes: BRAND NEW FROM PUBLISHER! 100% Satisfaction Guarantee. Tracking provided on most orders. Buy with Confidence! Millions of books sold!
The premier guide for retirement and investment planning by “America’s IRA Expert” (Mutual Funds magazine)-fully updated to reflect the recent tax rule changes
With the possible e xception of home property, the most valuable asset for most Americans is their retirement fund. Yet most people don’t know that the IRS is waiting to grab up to 90 percent of their hard-earned retirement savings. Now, in this fully updated edition of The Retirement Savings Time Bomb, renowned tax advisor Ed Sl
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Price: $ 9.64
Categories: Retirement Savings Tags: 401ks, Action, Annihilation, Bomb, Defuse, FiveStep, from, IRAs, Near, Plan, Protecting, Retirement, RetirementPlans, Savings, Taxman, Time
New Survey By Diversified?s Retirement Research Council Reveals That Setting Retirement Savings Goals Leads to Increased Engagement and Savings
New Survey By Diversified’s Retirement Research Council Reveals That Setting Retirement Savings Goals Leads to Increased Engagement and Savings
Harrison, NY (PRWEB) May 05, 2011
When people set a goal for their retirement savings, they tend to be more engaged in actively planning for their retirement. This includes increasing the amount they actually save and staying on top of news associated with their specific retirement plans. The survey of more than 2,400 plan participants, conducted by Diversified’s Retirement Research Council, showed that employees have become more active in their retirement planning within the last year.
Specifically, 29% of respondents established a retirement income goal in the past year, an eight percentage point increase from 2010. Forty-one percent increased the amount they are saving for retirement, a three percentage point increase over last year. In addition, 62% of those surveyed said they monitored their retirement outlook to assess where they stand vis-à-vis their retirement income goals and for insight into how they can adjust their asset allocation or contribution level to improve their outlook.
The survey also underscored the benefit of educating participants about goal setting, with 71% of respondents who are not confident they will have enough for retirement saying they were likely to contribute more to their retirement savings accounts if they were educated on how much they actually needed to retire. Participants overall indicated they want this kind of assistance as well – 57% expressed interest in getting help with setting goals and 50% would welcome assistance with monitoring goal progress.
“These results are a very positive indication that people have become much more attuned to the responsibility they have in meeting their retirement needs and that participant communications and education can have a meaningful impact on helping them reach a funded retirement,” noted Patricia Advaney, senior vice president of Participant Solutions for Diversified. “This is really a call to action to the industry. Even though the burden of funding retirement has decidedly shifted to participants, employers and plan providers can play a critical role in helping them to that end.”
Among the survey’s other findings:
Participants are saving more for retirement—66% of participants are saving 6% or more, a six percentage point increase over the number of respondents doing so a year ago.
While most participants have a retirement goal, they are not very confident they will have enough for retirement and 35% were simply guessing about the amount they needed.
Less than one-in-three participants are confident about the amount of income they will have in retirement: only 7% said they are extremely confident and 21% said they are very confident. Those without a goal are even less confident, with only 2% saying they are extremely confident and 6% very confident.
The good news is that participants are increasingly interested in seeking help to establish a retirement income goal: there was an eight percentage point increase in the number of participants who want help in creating goals over last year (now 57%). Fifty-two percent want help understanding their investment options (a 12 percentage point increase from last year’s survey) and 50% want help measuring progress toward their goals (a 10 percentage point increase over last year).
About Diversified
Diversified is a leading provider of customized retirement plan administration, participant communication and open architecture investment solutions for mid- to large-sized organizations. The company’s expertise covers the entire spectrum of defined benefit and defined contribution plans, including: 401(k) and 403(b) (Traditional and Roth); 457; nonqualified deferred compensation; profit sharing; money purchase; cash balance and Taft-Hartley plans; and rollover and Roth IRA. Diversified helps two million participants save and invest wisely for and throughout retirement.
Headquartered in Harrison, NY, the company’s regional offices are located in Arkansas, California, Florida, Illinois, Iowa, Louisiana, Maryland, Massachusetts, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Utah and Wisconsin. To learn more, visit http://www.divinvest.com.
About Diversified’s Retirement Research Council™
The Retirement Research Council, the research group of Diversified, is dedicated to:
Portraying a comprehensive picture of the institutional retirement plans market;
Detailing trends to assist with the strategic evaluation of retirement plans; and
Providing retirement plan sponsors and their advisors with comprehensive benchmarking information.
Drawing on more than 50 years of experience in retirement plan management, the Council periodically assembles a panel of experts from all facets of the retirement plans market to evaluate the current and future impact of trends shaping our industry.
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Categories: Florida Retirement Tags: Council, Diversifieds, Engagement, Goals, Increased, Leads, Research, Retirement, Reveals, Savings, Setting, Survey
Brand New Employer Sponsored Plan Is A Hybrid Of A Traditional 401(K) And A Roth Ira-January 1st, 2006 Is Start Date For New Roth 401(K) Retirement Savings Plan
Brand New Employer Sponsored Plan Is A Hybrid Of A Traditional 401(K) And A Roth Ira-January 1st, 2006 Is Start Date For New Roth 401(K) Retirement Savings Plan
Los Angeles, CA (PRWEB) December 7, 2005
Income tax rates have been cut, the marriage penalty done away with, and the “death tax” is also on a path to no more. All of this is a result of the Bush administration’s Economic Growth and Tax Relief Reconciliation Act which was passed by a Republican congress in 2001. Another provision of that act goes into effect on January 1st, 2006, a hybrid of a traditional 401(k) and a traditional Roth IRA called the Roth 401(k).
Yet another employer sponsored savings plan, the new Roth 401(k) works in almost the same way as a traditional 401(k) plan. Workers invest a portion of their income into a fund along with contributions from their employer (if any). The difference is that the traditional 401(k) is funded with “pre-tax” dollars and the Roth 401(k) plan uses “after-tax” dollars. However, with the Roth 401(k), withdrawal of your money at retirement will be tax free like a Roth IRA. The traditional 401(k) plan defers the tax owed during your career until retirement.
Although it may sound like the best of both worlds, it is important to note that no employer is required to offer this new Roth 401(k) plan. In fact, a recent survey by employee benefits consulting firm Hewitt and Associates found that only 31 % of employers currently offering the traditional 401(k) plan are considering implementing the new Roth 401(k).
Employees may now want to begin inquiring whether their employer will be offering the new retirement plan in 2006. Contribution limits for the retirement plans are: in 2005, $ 14,000 for a 401(k) and $ 4,000 for an IRA, whether Roth or traditional. In 2006, this amount will increase to $ 15,000 for both 401(k) and IRAs.
For in depth answers to your retirement and investment questions visit http://www.HowMuchAnswers.com – providing simple and easy to understand information about 401(k) plans and IRA accounts.
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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Categories: 401k Retirement Plan Tags: 2006, 401k, Brand, Date, Employer, Hybrid, IraJanuary, Plan, Retirement, Roth, Savings, Sponsored, Start, Traditional
Ultimate Savings Guide
Ultimate Savings Guide
Learn how to set up a realistic buget, get out of debt, save money, and more. You’ll also learn to save money on the things you buy without changing your lifestyle.
Ultimate Savings Guide
Categories: Retirement Savings Tags: Guide, Savings, Ultimate
