Why should you hire a retirement planner to help you set up your retirement fund when you are already covered under the social security system? In reality, social security coverage is not really enough to cover for all your needs during retirement. Yes, you can get some money from your social security when you retire but with the high cost of living today, that money may not really be enough to keep you comfortable during retirement. If you don’t want to live in poverty during retirement, you should set up your own retirement fund while you are still working.

There are a number of things that you need to consider before you hire a retirement planner. You must see to it that the planner is reliable and knows his/her field well. Note that there are a lot of people out there who profess to be good retirement planner when in reality, they do not really know a thing about it! Before you hire the services of a retirement planner, check out his or her resume. You may also call some of the former clients of that person to get their opinion about the kind of service that they got from this person. If the former clients of this are mostly satisfied with his or her services, then you have found the right person to help you do your retirement planning. On the other hand, if you get mixed opinions on the ability of the retirement planner to deliver good service, dig deeper into the track records of the planner before you decide on anything.

Another thing that you need to consider before hiring a retirement planner is personality. Since you will need to work closely with this person, you need to make sure that you like this person. Meet with the retirement planner in person at least once before you hire his or her services.

Well, that’s what many financial experts are proclaiming anyways.  Thanks to the perfect storm of future inflation and the depleted funds of Social Security and Medicare, more people than ever are starting to break a little sweat when they think about the health of their retirement savings; some are even tempted to pull out altogether for a couple of years just to avoid the economic crisis.

However, just because the economic forecast is less-than-desirable doesn’t mean you should immediately fire your investment advisor and pull out of your 401(k) retirement fund; rather, the key is to be smart and use the time you have to counteract inflation and Social Security with savings of your own.

If you think that your savings and investments are safe from any future catastrophes, let’s take a look at some scary figures to get you in gear.  Economic experts have indicated that Medicare and Social Security deficits are likely to spring up starting in 2010 – just a few months from now.  With a likely deficit of almost $1.25 trillion soon upon us – and a depleting number of younger people who will be funding the baby boomer generation’s retirement – it’s no longer enough to count on your Social Security checks to see you through.  What’s more, inflation is set to skyrocket prices within the next decade; so if you’re on the brink of retirement, make sure your savings and investments are as healthy as possible.

Make an immediate appointment to talk with your investment advisor to assess where you are with regards to your retirement planning, and what you can do to get back on track.  While time might not be on your side if you’re of an older generation, those hitting 40-50 can still save aggressively with great results.  Apart from your 401(k) retirement fund, start contributing $500 – $1,000 a month for ten years to a brokerage IRA; assuming an 8% annual return rate, you can have anywhere between $268,002 and $550,000 by the time you retire at 65.

That’s a lot of cash to pad any unexpected bumps on the retirement road!

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

Authored by Kenneth Himmler, Sr.

The reason why retirement planning gets so stressful so easily is because of the variety of things you need to keep track of while planning.

If you would like to have a comfortable retirement-which most people do, you may want to educate yourself about retirement planning. Make sure you are comfortable with the vocabulary and options. You will want to make yourself most aware of the more popular retirement investments.

Pension Payouts

Out of all of the different investment options available, pension payout is one of the best deals you can get. Unfortunately, these aren’t available as often as they used to be. Most companies have moved to 401k plans. But, if you are able to get one, this is one of the best moves in early retirement planning that anyone could make.

If you are lucky enough to be getting a pension, you will have to decide at some point if you want to receive it in one big chunk, or in payments-usually monthly or yearly. Make sure you are careful when you look at this! Many times if you take the lump sum you will be hit with a larger tax penalty, especially if you are retiring early. This largely depends on your individual situation. You will probably want to get the advice of a financial advisor or an accountant if you are able to. This is because different people’s situations aren’t the same. You are going to want to be positive that you are making the right decision with this so that you can get the most out of your early retirement planning.

Social Security

Another idea for making investments for early retirement planning is to deal with social security early, and more than anything you want to make sure that you do not retire too early. If you are retiring early, and decide to use your social security benefits, please remember that you will be penalized for taking the money out early-you will not get as much as you would have if you had waited until you were full retirement age. For this reason, you might want to think about other options, but this one is still there if you need it.

Your social security payout is based off of your average salary that you made in your best 35 years of work. If you plan to retire before you can get in thirty five years there will be zeros averaged in which may significantly lower your payout.

Try to make sure you work as long as possible in order to get the most out of your social security for early retirement planning.

I have only begun to touch on some of the great things that you can do to retire early. To learn more about this, please go to Retirement Planning

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.

Well, that’s what many financial experts are proclaiming anyways.  Thanks to the perfect storm of future inflation and the depleted funds of Social Security and Medicare, more people than ever are starting to break a little sweat when they think about the health of their retirement savings; some are even tempted to pull out altogether for a couple of years just to avoid the economic crisis.

However, just because the economic forecast is less-than-desirable doesn’t mean you should immediately fire your investment advisor and pull out of your 401(k) retirement fund; rather, the key is to be smart and use the time you have to counteract inflation and Social Security with savings of your own.

If you think that your savings and investments are safe from any future catastrophes, let’s take a look at some scary figures to get you in gear.  Economic experts have indicated that Medicare and Social Security deficits are likely to spring up starting in 2010 – just a few months from now.  With a likely deficit of almost $1.25 trillion soon upon us – and a depleting number of younger people who will be funding the baby boomer generation’s retirement – it’s no longer enough to count on your Social Security checks to see you through.  What’s more, inflation is set to skyrocket prices within the next decade; so if you’re on the brink of retirement, make sure your savings and investments are as healthy as possible.

Make an immediate appointment to talk with your investment advisor to assess where you are with regards to your retirement planning, and what you can do to get back on track.  While time might not be on your side if you’re of an older generation, those hitting 40-50 can still save aggressively with great results.  Apart from your 401(k) retirement fund, start contributing $500 – $1,000 a month for ten years to a brokerage IRA; assuming an 8% annual return rate, you can have anywhere between $268,002 and $550,000 by the time you retire at 65.

That’s a lot of cash to pad any unexpected bumps on the retirement road!

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.

Drinking.  Nothing’s wrong with a few social drinks here and there; yet a drinking habit can be one of the most draining expenses on your resources – money which could very well be put towards your 401(k) retirement fund or any savings and investments.  Look at how much you’re spending on drinks, even if you enjoy a cocktail or two during happy hour.  $3 a drink can quickly add up over time; and with the average American enjoying two beverages a day, this culminates into over $3,200 a year.  If put into a savings account earning 6% interest, that money can blossom into over $200,000 grand in just 20 years. 

That $3 can go a long way towards netting you a comfortable Florida retirement!

Smoking.  Not only are cigarettes bad for your health; they’re downright draining on your financial resources.  Assuming a person smokes a pack a day, this habit adds up to a hefty $2,000 at the end of the year (assuming packs are just over $5).  Once again, this is money that’s better used in your savings and investments.

If you quit drinking and smoking, financial experts claim you can accumulate up to half a million in retirement savings in about 20 years.  For those who’ve gotten a late start on retirement, this can be an awfully tempting figure!

Gambling. Taking a trip to Sin City now and then is fun – gambling away a potential retirement fund isn’t as entertaining.  If you think that winning the lottery or jackpot is your best bet to land a comfortable retirement, try putting your gambling money towards your 401(k) retirement fund instead.  Sure, it’s not as fun as the thrill of gambling – but when you’re living a comfortable retirement years from now, you’ll hardly remember missing out on the momentary thrill of purchasing a lottery ticket.

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.

For instance, while you are familiar with mutual funds you may not know so much about hedge funds. In fact, unless you are wealthy, you may not even qualify to invest in a hedge fund. The Securities and Exchange Commission, which in the main does not regulate hedge funds to anything like the same extent as mutual funds, requires that investors have a certain net worth or annual income before they can invest in a hedge fund, this qualification supposedly implying that the investor is in some way more knowledgeable or sophisticated.

If you do not qualify, why would this be of interest you? That’s because increasingly there are investment options available to you which emulate some aspects of hedge funds. You can buy certain mutual funds which are readily purchased, that have some of the attributes of hedge funds.

For instance, some hedge funds seek to achieve greater returns by leveraging the investment using derivatives and sometimes borrowing money to increase the stake. You can find mutual funds which also use derivatives to leverage your investment. Note that this is not necessarily a recommended investment, as it does increase the riskiness. You may not consider these types of investment strategies suitable for your retirement planning.

However, if you know how hedge funds aim to increase their returns, you may be able to use some of the techniques in your own investments. The advantage of this do-it-yourself approach is that you will not have to pay the high fees, such as 20% on the profits, which seem to be the normal charges when investing in a hedge fund. The better educated you are on your investment choices the more likely you are to achieve your goals.

Ken Himmler (www.kenhimmler.com) is an investment advisor who can discuss many different financial plans with you. If you go to the Integrated Asset Management website (www.iamllc.biz), you will get an idea of the range of securities and financial vehicles that are available.

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.