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!

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! 

Yet if you want to reach retirement with a sizable nest egg – and have the funds to enjoy that Florida retirement that you’ve always dreamed of – then avoid these classic 401(k) retirement mistakes.

Not Rolling Over Your 401(k).  In the current economic climate, job changes and losses have been occurring at unprecedented rates; if this scenario sounds familiar, make sure that you roll over your old 401(k) to your new retirement plan.  Even if you lose your job and are tempted to just cash out your retirement savings to pay for bills, resist temptation, as you’ll lose out on precious time for your savings and investments to grow into even more money.

Here’s a simple rule to remember: if it’s money for retirement, don’t touch it until you actually reach your retirement age!

Not Netting The Full Employer Match.  If your employer still offers matching contributions to your 401(k) retirement fund, then make sure you contribute as much possible in order to get the maximum amount.  Turning your back on a full employer match – or not contributing to your 401(k) at all – is like turning your nose up at free money!

Take Out A 401(k) Loan.  What might sound like a smart idea at the time can very quickly lead to financial ruin, especially during the current credit crunch.  If you choose to take out a 401(k) loan to pay off those troublesome debts, you best be sure that you have job security, as losing your job means you’ll have to pay back the loan in full.  Instead of turning to your retirement savings as an answer to toxic debts like credit card bills, examine and change the behavior that got you there in the first place.

Investing In One Company.  Remember the debacle with Enron? Innocent workers lost their life savings when the company went bust, since their entire retirement savings were invested in the stock.  Make sure your 401(k) investments are diversified enough to keep your savings safe and sound.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

After 20 years, service personnel are entitled to a pension which is 50% of their pay, and is increased in line with inflation. Each additional year of service adds 2 ½%, so they receive full pay if they serve for 40 years. While this pay is assured if they complete at least 20 years, there is no vesting such as you get with a private company, which means that if they left after 19 years they would not receive any benefits.

There have been some options introduced by the government, and you need a military retirement calculator to be assured of the best choices, but these are the basic guidelines.

In this way, military personnel are not tied to the performance of individual retirement accounts for their income, nor do they have to reach normal retirement age before receiving benefits. It would be easy to think that they would not be concerned about financial retirement planning, but the truth is that retirement savings can be just as important to retired service personnel as they are to the rest of us in giving them the quality of life that they desire.

One of the finest places to go to for an investment education is the Integrated Asset Management website, www.iamllc.biz. There you will find detailed investment education on all financial topics, and can get the help of an investment advisor, such as Ken Himmler (www.kenhimmler.com), who is experienced in all aspects of retirement planning.

Authored by Kenneth Himmler, Sr.

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.

Don’t Let Emotions Hold You Back. Debt can be depressing enough – but debt that’s caused by divorce or a medical emergency can be downright debilitating.  Don’t let your emotions get the best of you when it comes to starting over with your retirement; instead, separate your personal issues from your finances and move forward.

Get An Objective Opinion. This is where an investment advisor or financial planner comes in.  If you’ve had your money basics down pat and just need to boost your savings after a divorce or medical emergency, then go for a registered investment advisor; if, however, you don’t know how to rub two dollars together, get a financial planner to teach you the basics about money.

Don’t Second-Guess The Numbers.  Don’t live in ignorance about your overall retirement savings or your debt – sometimes facing up to what you owe can be more freeing than ignoring the numbers.  Again, get that investment advisor to help you come up with savings and investments that will get you back on track towards financial security again.

Cut Expenses. The old saying really is true: every little helps.  This means you’re going to have to comb through your expenses and get deals wherever possible.  While you may not see the benefits at first, trust us, it adds up at the end of the year.  Additionally, don’t drain anymore of your resources on major purchases – this means if you have a kid in school, have them take out student loans to finance their own education.  It’s harsh, but it’s necessary to get your retirement back on track.

Keep Working.  It might be time to push your retirement age up or earn extra money on the side – whatever option you choose, the extra income will help cushion your retirement savings.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

Step Up The Investing.  Now that employers have automatically enrolled their employees in retirement savings plans, saving up for the day when you give that retirement speech doesn’t involve much effort.  However, if you want to retire a bona fide millionaire, you’ll need to make smart investments outside of your 401(k) retirement fund.  Hire an investment advisor to help you make safe investments that will further cushion your nest egg – and propel it into the seven-figure range.

For your best bet, check out Roth IRAs or Roth 401(k)s; both are great additions to any investment portfolio and withdrawals are tax-free after the age of 59.

Check The Health Of Your Portfolio.  Don’t just cross your fingers and pray that your investment advisor will give you the thumbs up to retire; instead, go for yearly check-ups on your portfolio to make sure that your retirement savings are on track.  It’s best to catch your investments if they’re doing poorly and quickly fix them with the help of a financial planner.

Never Cash Out Your 401(k) Retirement Fund.  When you change jobs, it can be tempting to cash out your 401(k) retirement fund to pay off any toxic debts – however, if you want to retire with seven-figures sitting comfortably in your bank account, then you’ll need to roll over any old 401(k) funds into investment schemes offered by your new employer.  If you’re still interested in cashing out your 401(k), remember that you’ll be heavily taxed for doing so – in fact, you could end up losing up to 25% of your retirement savings.

Cut Excessive Expenses.  Even if you’re saving a little of each paycheck, you can still retire a millionaire – if you cut out excessive expenses.  Forget paying for your child’s college education (after all, that’s what student loans are made for) and running up those credit card debts.  Live within your means, and you’ll be able to afford a more luxurious lifestyle once you retire.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

If you thought that you could depend on your own savings and investments, Medicare or your children to pay for nursing home expenses, think again!  Medicare will only pay for medical expenses, not those incurred by day-today custodial expenses (such as meals, cleanings, etc).  Additionally, with continuing care retirement communities getting more expensive every year, you could stand a good chance of wiping out your retirement savings within the first couple of years alone.

Many people often mistake long-term care insurance for disability insurance, but there are important differences: disability insurance will provide you with income in the event that you can’t work, whereas long-term care insurance will cover the costs of caring for you when you’re unable to look after yourself.

And if you think that your children will be able to look after you, it’s best to not count on them 24/7 for physical and financial support.  Sure, your son or daughter might not mind if you move in with them, but what if their spouses object?  What if you need more care than they can provide, especially if they work long hours or have large families to support?  These considerations are important to factor in, as it could mean the difference between a comfortable retirement and one that’s hanging by a thread.

If you’re in your late 40s or 50s, buy your long-term care insurance now, as rates are at all-time lows for the youngest of the baby boomers.  Additionally, you run the risk of being locked out of your insurance should you purchase a policy after you develop a medical condition.  Even if you feel young and independent upon approaching your retirement age, it’s best not to chance it when it comes to long-term care.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored By Kenneth Himmler, Sr.

Pick The Executor Of Your Estate Wisely. A big part of retirement planning is creating your estate, which means you’ll need to appoint an executor to handle your affairs after your death.  Pick a family member or close friend who will have your best interests at heart, as they’ll be responsible for carrying out your wishes after you’re gone.

Allocate Funds For Your Debts.  If you haven’t paid off your debts by the time that you reach your retirement age, make it a point to do so in the years following, as any assets will be liquidated to pay off creditors and lenders upon your death.  In other words, you’ll be unable to leave any important or sentimental assets to family members, as a court will promptly hand these over to banks to pay for your debts.  Talk to your investment advisor to step up your investments if you need more money to pay off your debts.

Enlist Witnesses.  Your will could be legally flawless and pristine, but if there are no witnesses to view you sign it, your will won’t be considered legally valid.  Remember, viable witnesses are those parties who are not mentioned in your will.

Be Specific With Your Wishes.  Allocate who will get your assets. For example, you could designate that your 401(k) retirement fund should be left with your spouse, partner or child, or you could leave your savings and investments to a dear family member.  Whatever the case may be, don’t fill your will with opaque wording, as this will cause legal problems amongst your beneficiaries after your death.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored By Kenneth Himmler, Sr.

Frustrating as it may be, the benefits that you’ll receive from Social Security simply won’t be enough to help you achieve that Florida retirement or travel abroad, let alone meet your basic needs once you reach your retirement age.  Is this unfair? Perhaps.  But there are very good reasons for why you shouldn’t depend on your Social Security for retirement – so if your 401(k) retirement fund or investments aren’t up to scratch, get them back on track immediately:

It’s All About The Ratio.  So what does math have to do with retirement?  Simple: there are more baby boomers that are claiming benefits than there are younger people to pay Social Security taxes.  Since there are not enough taxpayers to support retirees, those Social Security payments are inevitably going to dwindle down.  In other words, the later you retire, the smaller your check will be.

You’ll Need More For Necessities.  If there’s one thing that the current recession has highlighted, it’s that you need an emergency cash cushion to protect you from any unforeseen financial strains.  There’s just no way that your Social Security payments can protect you in case you fall onto hard times due to medical bills and other expenses.

You’ll Live A Bare Life. No one wants to live out the rest of their days in a bare-bone existence; so if you’re depending on your Social Security to see you through, kiss travel, restaurants and other fun stuff good-bye. 

So if you depend on your Social Security for retirement, do yourself a favor by visiting an investment advisor today to check up on the health of your retirement savings.  Even if you’re getting a late start to your retirement, you can still save enough to have a semi-comfortable retirement – one that’s significantly better than living on Social Security alone!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.