Investing Retirement Planning: 11/01/2009 - 12/01/2009

Top 5 Retirement Planning Mistakes

1. Not having Long Term Care insurance: This one mistake can wipe out your entire nest egg in one fell swoop. Even faster if both you and your spouse were to need care in any given year. For the money, this one insurance product buys not just financial but mental security.

2. Being too conservative: it is easy to understand why a lot of us prefer to be conservative in these brutal markets but this is also the biggest mistake we can make unless we have enough money to cover all our income needs far into the future, counting for inflation. Our biggest task is keeping up with inflation and we cannot do the job adequately unless we keep a healthy slug of our portfolio in stocks.

3. Not counting social security as a bond investment in asset allocation: when you retire, you will get a fixed income from social security just like a CD or a bond. Same thing with a pension. When you allocate your assets, count these sources of income as "bonds" or "fixed income".

4. You need 70 percent of your current income for retirement: this is almost always wrong because most retirees spend more than they did when they were working, at least in the first few years of retirement. You need to look closely at your monthly expenses after retirement but it makes a lot more sense to aim at replacing your entire pre-retirement income if not more. Do you care if your overshoot your goals?

5. Assume you will be in a lower tax bracket after retirement: This may hit you with higher tax bills than you expected when you pay tax on your IRA and 401(k) withdrawals. You need to look at your expected tax bracket every year, specially if you are near the mandatory distribution age of 70 1/2.

Jay has retired after more than 2 decades on Wall Street and writes on investments and finance topics. If you find this article to be of value, please check out his latest diversions at Daybed Bedding Sets and Day Bed Covers.

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Top IRA Certificate of Deposit Rates - October 2009

The big player seems to be Alliant Credit Union. Believe it or not you can find CD rate specials here frequently. If you are a current member the process is much faster than trying to become a member and then completing a certificate of deposit. So even if you run out of time, I think it would be a good idea to open a membership. The hardest thing is Alliiant won't lock the rate beyond the current day. So if you put the IRA process into gear and the rate drops, your out of luck. Anyone can become a member by first joining the National PTA. This is $25, I believe. You then can complete the Alliant member application. Be forewarned that their online process has proven difficult for many in the past. It asks a series of questions about information it pulls from the credit bureaus and I've known several people that claimed the information was erroneous and thus they couldn't complete it online. You can always go the route of snail mail if necessary. The current IRA rates are:

1y -- 2.30% APY
2Y -- 2.55% APY
3Y -- 3.00% APY
5Y -- 3.25% APY

Their NCUA# is 67955 and they are based in the windy city of Chicago, IL. They are large for a credit union with over $6 Billion in assets. As of March 2009 data, they have a 4-star rating.

Another big player is Ally Bank, but they don't offer rates for IRA CDs. People's Trust Federal Credit Union has an 18-month IRA for 2.12% APY. They are based in Houston, TX. They have a 2-star rating. People's NCUA # is 177. Looks like they have been around for a while. I did have to make quite a few clicks to get to the rates. I hate that. This is true for many banks and credit unions. They really should make it much easier.

If you're wanting to stick with a bank try Nationwide Bank, FDIC# 34710. Their process isn't too difficult. They are about $2.25 Billion in assets, had a nice second quarter profit, and 4.5 stars. Rates are:

1Y -- 1.95% APY
2Y -- 2.35% APY
2Y -- 2.25% APY
3Y -- 2.45% APY

I think that is a pretty good window into IRA rates across the internet. Let me know what you are finding.

Happy Investing.
cd :O)

Chris Duncan is a NASD Registered Representative. He specializes in helping clients find the best and highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Check out our CD Rates offers or our California CD rates

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Income Drawdown - A Quick Guide

In the UK when reaching retirement age it is common for people to purchase a pension annuity. A pension annuity converts a person's pension fund into a regular income that will be paid to them for the rest of their life. There are however alternatives to annuities available. One such alternative is income drawdown.

With income drawdown, unlike a traditional pension annuity, the pension fund is not used to purchase a guaranteed income. Instead the pension fund is reinvested in a range of assets and a variable income is taken from this fund. The level of income that can be taken from income drawdown plans is limited by the Government Actuary Department (GAD). Income drawn from the fund must be within the maximum and minimum limits set by the GAD. Income drawdown is a short to medium term alternative to buying an annuity. Once a person reaches the age of 75 it is compulsory for them to take out an annuity policy.

As the value of the pension fund can go down as well as up income drawdown is considered to be more risky than traditional annuities. There is a further risk in that in the future annuity rates may be lower and so by not purchasing an annuity now there is a possibility of losing out.

The risk associated with any drawdown plan is measured using a formula known as critical yield. Critical yield shows how much the invested pension fund must grow each year to be able to provide the income the policy holder wishes to take each year and maintain this income at the age of 75 when the person purchases their annuity. In simple terms the lower the critical yield associated with a plan the less risky it involves.

As an alternative to annuities income drawdown isn't suitable for everyone. However for people with large pension funds or those who have another source of secured income it can be a good option.

Based in the UK, Annuities4U provide independent pension annuity and income drawdown advice to clients nationwide. We help our clients to find the best annuity and income drawdown quotes available.

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Saving For the Future While You Enjoy the Present

The philosophy of planning for the future has always confounded me. It seems to me there are two very basic world views in conflict when this issue is raised. One world view is the responsible response: the "planning for the future" type of person. This type of person seems to think he will live to be at least 100 years old, and that everything he refrains from enjoying, doing, or buying now will pay off as millions of dollars in that inevitable and very real place called the future.

Then there is that other sort of person that believes that nothing can be as wonderful as the fun that a person can have right now. Since I can't "take it with me", as they say, I might as well "eat, drink and be merry" right now.

I myself don't adhere to either of these points of view. I have a tendency towards not missing opportunities today that might never come again, such as spending money, perhaps more than is wise, on a meaningful activity with my family which will become a wonderful memory to cherish for years to come. In many ways this type of spending is actually a type of investing; in the future of the health of my family. The relationships we develop with our loved ones must be worked on now, and not at some obscure future time. Remember Harry Chapin's famous song "Cat's Cradle?" This song illustrated the well-known "tomorrow" syndrome in a poignant and heartbreaking way. The mistake we all have a tendency to make when we tell our children "we'll get together when I have time."

Of course, on the other hand, quality time with our families does not always require large sums of money. Sometimes the inexpensive or free moments can be the best. But sometimes a really great time for everyone might require some money spent, and if so, sometimes it might be wise to say, "the future is now."

Then again, if we are lucky, and we live a long time, long enough to retire and do some of the things we just couldn't do when we were working 40 or more hours each week; when our children needed a lot of tending to and all the other things that get in the way of traveling, hobbies we love, enjoying long walks, or whatever it may be, it might be nice to have a bit of money to enjoy that time without worry.

So in conclusion it appears to me that the correct approach to this dilemma is to strive towards a responsible savings plan to ensure a worry-free and active retirement, while at the same time keeping our options open for some "irresponsible" spending today, while we still have our good health and our young children around to enjoy ourselves together with them. It is true you can't take it with you, but it is also true that one day the future will be here and you will be happy that you were prepared and ready to meet it in style.

Emily Salisbury, the author of this article, writes about crafts, cooking, and home decorating. Her creative skills are far more developed than her financial skills, so she turns to professionals for investment advice.

Putting together a savings plan she could live with wasn't easy, so Emily looked for a reliable investment adviser. Harry Rady of Rady Asset Management came highly recommended and helped her to make a plan that lets her enjoy her life now while planning for a secure retirement.

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Financial Clients Leaving Brokers Who Didn't Buy Then Back Into the Market at the Bottom

During times of economic crisis and chaos, many clients of financial planners and stockbrokers will choose to leave and find a new broker. In fact, one recent survey in Financial Planner Magazine showed that 85% of the clients were considering getting a new broker right now.

That's pretty scary, and I don't know of many businesses that could survive with an 85% turnover rate, especially professional services in the same year. Incidentally, many financial planners and stockbrokers are leaving the business or have already left. And it doesn't take a rocket scientist to see why.

Now, many of the fairly astute financial planners and stockbrokers were able to get their clients out of the market before things really got too rocky. And their clients were very thankful for not losing 45% of their life savings when the stock market completely collapsed into chaos.

Nevertheless, most of those stockbrokers and financial professionals were not able to get their clients back into the market at the bottom. Most clients were too sketchy, and afraid to get back into the market when they should have. Now it may be too late for them, because they missed the big run-up.

These clients now blame their broker for not "making" them get back into the market, of course the reality is that the clients were risk adverse and would have prevented their broker from getting back into the market anyway. So it is interesting that the stockbroker or financial planning consultant appears to have gotten caught in a Catch-22.

So, not only are people leaving their brokers because they didn't get them out of the market before the collapse, or because they lost a good chunk of their financial wherewithal, but clients are also leaving those brokers who didn't give him back into the bottom. So, everyone in the industry is finding themselves being dropped by some of their best clientele. I hope you will please consider this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes that if you need financial online content, go to http://www.bloggingcontent.net

Note: All of Lance Winslow's articles are written by him, not by Automated Software, any Computer Program, or Artificially Intelligent Software. None of his articles are outsourced, PLR Content or written by ghost writers. Lance Winslow believes those who use these strategies lack integrity and mislead the reader. Indeed, those who use such cheating tools, crutches, and tricks of the trade may even be breaking the law by misleading the consumer and misrepresenting themselves in online marketing, which he finds completely unacceptable.

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Safe Investment Strategies For Retirement

Let's assume you are in or approaching retirement. You have your retirement nest egg, which has been working overtime lately, trying to catch up the time lost since the global financial crisis decided to change the rules on steady and consistent returns.

Your financial adviser asked you a whole bunch of questions and told you that you had a 'balanced' investor profile. You weren't quite sure what that meant but it sounded like he was treating you as 'normal' so that was comforting. He also reckons that because your are 'normal' he's going to stick half of your money in 'defensive' investments like cash, fixed interest, bonds, hybrid securities and perhaps even mortgage funds (cringe). The rest of your money is not retiring - it's going to remain working in the share markets or other 'growth' investments so you can lead a happy retirement.

But are you? Is this really the best investment strategy in retirement? Something based on your 'risk profile' rather than your actual needs? If you had anything invested in the share markets over the last few years then you already know what your reaction was when markets fell. If you felt like having a heart attack because your investments collapsed then either you haven't been taking care of yourself or you've been feeding yourself the wrong information. The problem with basing an investment strategy on 'risk profiles,' as so many financial advisers do, is that it doesn't actually match your needs with market risk.

A better approach for a safe investment strategy for retirement is to first determine how much income you want to draw each year, taking into account all your living expenses including holidays and asset purchases. Multiply that figure by 3. That's how much you need to put away in 'defensive' assets. The rest of your nest egg keeps working for you in what ever 'growth' investments you are comfortable with and appropriate to your risk level.

Your income or pension drawdown is deducted only from your 'defensive' assets. Markets can go south for 3 years before you need to withdraw anything from your 'growth' assets. Too many financial advisers still use the 'risk profile' approach to investment strategies and rebalance the portfolio on a yearly or more frequent basis to keep the original asset allocation, crystallizing losses along the way if markets are in an extended downturn.

The strategy is designed to set aside 3 years worth of income that you will need, allowing for what income is also generated from those 'defensive' assets. For example, if your nest egg was $500,000 and you wanted to draw down $40,000 per year then you set aside $120,000 less what income is likely to be generated on that amount over the next 3 years (depends on interest rates). At appropriate times you would top up your defensive portfolio with profits from your 'growth' portfolio. More frequently in good times, less frequently in bad times. The aim is to always have 3 years of income set aside but only if you can do so without crystallizing losses.

This strategy will work for any 'risk profile' and knowing that you have at least 3 years income set aside should provide you with greater comfort and security in market downturns.

Rob Bourne has been involved in the financial services industry for over 35 years. A practicing financial adviser he now focuses on the need for people to be better informed through realistic and down-to-earth financial education. The aim is to help people make their own informed decisions on financial investments and business opportunities.

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Are You Considering Selling an Annuity?

Many people have assets available to them that they are not even aware of. One form of asset that many have, but never think about, is an annuity. In the challenging economy of today you might consider selling your annuity.

You should first know more about annuities, and determine whether or not you have an asset that you can sell. Annuities are a type of retirement fund. They are a common form or retirement accounts held by employees of Universities and governments, but are not limited to those employers. Annuities, like other type of retirement accounts, have an age limit before they can be cashed in. In most cases you will not be able to receive money from an annuity until you reach retirement age, at least not without stiff penalties attached.

Annuities are designed to carry through your retirement years, but are different than Individual Retirement Accounts, also called IRAs. If you own an IRA, you probably already know that you can usually transfer the money from one account to another when you change employers. With annuities, that is not usually the case.

So, why would someone want to consider selling an annuity? People are selling annuities for many different reasons. In some cases, the annuity is a small amount of money, and it is better to have the money now rather than wait for retirement. If the owner waited for such a small amount, then they would only receive a small check each month. In the economic climate of today, many people are selling an annuity simply because they need money.

Visit Selling Annuity Help for additional information on selling an annuity.

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Pension Plans - Lets Start With an Intro

I was talking of retirement and how important it is to begin saving early for retirement. But what are the options we have?

To list down a few

1) PPF
2) NPS
3) Pension Plan
4) PF

In this section we will be discussing pension plans.

Pension Plans are savings that cater to your life after retirement. The amount you put in Pension Plan is locked till you retire (Say 55 years).

They are very much different from Life Insurance Plans. Life insurance plans aim at covering the risk from an unfortunate event. Pension plans on the other hand work on the opposite scenario that if an individual survives beyond an age (retirement age), he will need to provide for himself.

After you retire you can withdraw the entire savings, or withdraw a part of it and get the remaining as a pension. This plan is ideal for those working in private sector where we don't have any retirement benefits/schemes. Also it helps save tax. Yes most of us might not be knowing that savings under pension plan are eligible for tax deduction under Sec 80 CCC (upto a max of 10,000) and this is separate from premiums you pay for your life cover (Sec 80 C) or medical cover (Sec 80 D).

While Conventional pension plans invest a major portion of the premium monies in bonds and government securities (G-Secs), hence offering much lower returns of 5%-6% per annum (plus tax benefit) , Unit Linked Pension Plans, though riskier, offer much higher returns (but the tax benefit is not applicable here).

So which plan to buy? What premium to go for? All this will be covered in upcoming posts. Stay tuned.

Pushkin Gupta
http://learningsofanamatuerinvestor.blogspot.com/
Insurance is investment...unfortunately many of us are not aware of this. This blog intends to help you understand the essence and importance of getting insured in a very simplistic way.

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Tips For Buying a High Interest Annuity

Are you looking for high interest annuities? Annuities are considered by some investment consultants to be one of the best forms of financial protection that an individual can have. Annuities usually have a death benefit clause, but they are actually quite different from insurance policies. You may also consider placing your investment into a trust.

Like all substantial investments, buying annuities can be somewhat complicated, especially for the novice investor. Therefore, it is wise to seek professional advice before coming to a final decision. Reputable brokers will always send you a buyer's prospective, advising you to read and understand it thoroughly before making an investment.

Here are a few tips that might help you to choose high interest annuity plan:

* Thoroughly review of all your previous as well as current saving plans, pension plans, and retirement plans, etc. to determine what has worked well for you. This can help you better determine whether you actually need an annuity.
* Other factors such as age and overall net worth should also be considered in this process.
* Determine how long you plan to can keep your annuity in order to avoid extra charges or penalties for early withdrawal. Penalties may also be assessed even if you exchange one annuity for another with the same banking or brokerage firm.
* If you are still open to investing in annuities, decide how much of a risk exposure you are willing to take. High interest annuities carry a higher financial risk than other types of annuities, such as fixed rate annuities, and are usually at a variable rate.
* Fixed rate annuities carry less risk and surprise. The return remains the same for the life of the annuity, unless otherwise stated in the prospectus.

The reputation of the brokerage or banking with which you will be investing is also a key factor in your investment decision. If you are happy with your present financial consultant, it is probably best to let him or her handle your first annuity purchase. However, make sure that he or she is experienced in handling the trading of annuities. Not all financial consultants are experts in all investment instruments, but all of them want to make money, which they do whenever they handle a trade for you - regardless of whether you made or lost money in the transaction.

If your investments are made primarily through a pension fund or employer fund, you are probably going to have to do more extensive research on your own, because your company's administrator is not an investment counselor. He or she administers your company's money and investments - not yours. Think of them as you do your company's human resources personnel. They can distribute papers to you, answer basic questions about your basic benefits, but are limited in their capacity to answer specific benefit questions - such as provider information. Your health insurance carrier keeps track of benefit status and providers - not your H.R. representative.

Therefore, before you buy high interest annuities, or any other kind of investment, be sure that you understand the pros and cons - the returns and risks of the investment. If the language of investing is beyond your comfort level, it is advisable to consult with a family member or close friend who has had success in making such investments in the past.

Written by, Brenne Meirowitz, B.A., M.S., M.A. This article, Tips for Buying a High Interest Annuity was written while researching information about Annuity and Settlements.

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Fewer Financial Planners Going Forward - Mass Exodus in the Industry

Often, large financial collapses in the stock market or major downturns in the economic business cycle will cause complete turmoil in professional financial services industry. The stock market collapse in 2008 has caused most financial planners, and stockbrokers to watch their incomes cut in half or more. Meanwhile, many of their clients are so upset they have left to go to new brokers, or they have put their money into bonds and CDs.

Still, even when the financial planners and brokers lose their income they are still required to participate in ongoing education to keep their licenses up. Worse, many politicians have said they are going to fix things by increasing regulation, meaning there will be more ongoing education, more rules, and more regulations in the future. This means even those that survive until the next year when things pick up, they will have a tougher time earning money in the future.

Right now, many financial professionals are leaving the industry, and these folks are leaving the industry in mass. Those that remain realize that the paperwork and the litigious risks are so great, that they won't bother taking any clients that have less than $500,000 to invest with. It's just not worth it. This causes a few other problems in the market place, especially for middle class folks who are trying to build up their nest egg, investments, and retirement accounts.

If the remaining financial planners are not interested in taking that business, they are liable to get wrapped up with a stockbroker who will just churn their account. This has been one of the toughest periods for financial professionals in over 30 years, and those that remain are not have the woods yet. I hope you will please consider all this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes that if you need good online content then go to http://www.bloggingcontent.net

Note: All of Lance Winslow's articles are written by him, not by Automated Software, any Computer Program, or Artificially Intelligent Software. None of his articles are outsourced, PLR Content or written by ghost writers. Lance Winslow believes those who use these strategies lack integrity and mislead the reader. Indeed, those who use such cheating tools, crutches, and tricks of the trade may even be breaking the law by misleading the consumer and misrepresenting themselves in online marketing, which he finds completely unacceptable.

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How to Begin Selling Settlement Payments

Many people who find themselves in need of immediate cash for an emergency will ask for help to sell structured settlement payments. While there are two basic methods to sell structured settlement payments the results of how these methods are used can make a significant difference in the amount of cash that a person gets for their settlement.

Often when people are in desperate straits they will turn to any means possible to make quick money. For individuals who have been receiving regular settlement payments there is a great temptation to sell the settlement and collect the money that they need for the emergency.

When one is considering selling a structured payment it should be done with careful consideration and thought. There are several companies that buy cash settlements. These companies are called "Factoring" companies because they calculate the amount of the settlement versus what the individual has already received and include in the calculation the desperation of the individual selling the settlement.

There is no set way that a factoring company calculates the lump sum that they will offer for a settlement. Therefore it is very important to get bids from at least two other companies before making a decision on which company to sell the settlement to. This process can take up to a month but is a very important step if a person is going to get the most money from their settlement that they can on short notice.

Once an individual makes contact with a factoring company and gives them the details of the settlement they will receive sales calls from other factoring companies and financial institutions who may wish to sell a product or service that is unrelated to the settlement payment.

Visit SellMyStructuredSettlementPaymentsNow.com for additional information on sell settlement payments.

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Pension Annuities & the Open Market Option

In the UK when a person reaches retirement age they have the option to convert their pension fund into a regular income that will be paid to them for the rest of their life. This option is known as a pension annuity.

There are a many companies in the UK that offer pension annuity policies. People often wrongly believe that they must purchase an annuity from the same company that holds their pension. This however is not the case and under the Open Market Option (OMO) people are free to take out an annuity plan with any company they choose.

Since annuity rates will vary from company to company it is advantageous to shop around for the best deal on offer. This is the benefit of the Open Market Option. The OMO enables people to seek out the best rates available to maximise their income in retirement. By shopping around pensioners could add up 30 per cent more to their pension income each year. Actually annuity rates on offer will depend on a number of factors including the size of the pension fund, age, sex and life expectancy.

As well as being able to choose between the various annuity providers a person has a choice of a number of different types of annuity policy. Annuities on offer include lifetime annuities, enhanced annuities, scheme pension and with profit annuity. The best annuity to choose will depend on a person's own individual circumstances and preferences. Once a person has chosen a policy they won't be able to change their mind and so it is important to take the time to consider all the available options before making a decision.

Blue River Annuities are pension annuity advisors based in Cheshire. Use our online annuity calculator and find the best annuity rates available in the UK.

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Accounting For Retirement

Accounting for true rates of return and tax implications is often misunderstood or ignored when planning for retirement. Whether you are just starting your earning years or ready to begin your yearning years (retirement for those who did not plan properly), understanding how to account for the tax benefits or disadvantages of your contribution strategy is essential.

Let's play a game. Three men go on a fishing trip. After a long day, the three men check into a lodge for the night. The manager quotes them at $30 a night and each man puts up $10 to pay for the room. After the men retire for the night, the manager realizes that he overcharged them. The room he gave them was only $25, and he sends up the bellboy with 5 one dollar bills to return to the men.

The bellboy realizes that the men will not be able to evenly divide the $5 and pockets $2. He tells the men that they were overcharged by $3 and gives them the money.

Now for the accounting. Each man paid $10 and was given back $1. The room effectively cost each man $9, $27 total, and the bell boy kept $2, equaling $29. What happened to the last dollar?

The problem here lies in the accounting. When accounting for the $30, you must take the true cost of the room ($27) and add back in the $3 refund to give you $30. When accounting for the $25, you must take the true cost of the room of $27 and subtract the $2 that the bellboy kept to give you $25.

So what is the point? Knowing when to add or subtract taxes from your investments during the retirement planning accounting process will have a dramatic impact on your rate of return and personal wealth.

Many people choose to contribute pretax dollars to their retirement accounts to postpone taxation on their funds. The idea is that taxes will be lower during retirement. For most people, this is false because retirees generally have less deductions (most retirees do not want a mortgage and are done making qualified investment contributions) and exemptions (most retirees do not have dependents in their household). Also, this country has historically seen taxes as high as 90%, so paying taxes while they are "on sale" is not a bad idea.

Many people accomplish this through the use of Roth IRAs, which fall into the category of qualified retirement plans. But qualified with whom? The IRS. You see, the IRS offers tax incentives and in exchange places many restrictions on the way we manage these funds, especially during distribution. Roth IRAs have limits on annual contribution amounts and people who have annual taxable income in excess of $100,000 are not eligible for Roth IRAs. Withdrawal too early and you will be taxed, and if you borrow without paying back the funds and you will be taxed. These funds are also subject to double taxation in the event of transfer to non spousal heirs. In regards to associated tax implications, Roth IRAs are a step in the right direction. However, there are still too many strings attached due to it being a qualified retirement account.

An investment grade life insurance policy would be an example of a non-qualified retirement account, meaning that contributions to it are not tax deductible. The fund growth is tax free and you can borrow from the cash value tax free and never pay back a dime. You can contribute as little or as much as you would like annually. The transfer upon death is tax free and when there is a secondary beneficiary named, transfer to non spousal heirs is tax free. So how can you fund this kind of investment and still receive a tax deduction?

The answer is all around you. Far too many people keep their wealth locked up in the equity of their homes, reducing safety, liquidity, and ROI for that property. Having the money outside of your home allows you access to it in case of a job loss (good luck getting a HELOC with no employment) or other financial need and also allows it to grow at a much greater rate, managed in a way that is right for you. Refinancing your home and pulling out home equity to fund your life insurance gives you a greater tax deduction for the interest that can be carried into retirement, not to mention the immediate death benefit created through the policy.

So before you decide to take the road followed, consider accounting for the true return on your hard earned dollars and how much more you will need for retirement. More wealth is lost to unnecessary taxes than anything else. Consider a non qualified retirement account.

This author is a West Chester University student, overseen by his fearless leader and ironfist, Dr. Cataldo.

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When Should You Start Retirement Planning?

When should you start your retirement planning? Well, if you are smart, you will begin retirement planning on the first day of your very first job. Why, you might ask? You may plan to work for 40 or more years and think that there's plenty of time for retirement planning somewhere down the road.

Actually the sooner you start your retirement plan and start to contribute to that plan, the better off you will be. By starting your retirement investments early in life, you will have the opportunity to accumulate a sizable retirement account by the time you are in your 50's and 60's and will not have to make extreme sacrifices in the later years of your working life in order to build up your account.

Upon beginning your first day of employment, you should sign up for your employer's 401(k) account if they have one. Contribute at least enough to capture your employer's match if they have one. If your employer does not provide a 401(k) account, then you should make plans to set up an IRA account and donate to it on a regular basis. Every year, upon receiving your annual raise, raise the contribution to your account by 1%. Your ultimate goal should be to contribute 15% of your gross pay to your retirement account.

Early in your career, you can afford to take more risks with your retirement investments. So, don't be afraid to load up on stocks early on. Monitor your investment mix on a regular basis and adjust it to a more conservative mix as you get closer to your retirement age.

Beginning your retirement investing at an early age will allow you to take advantage of compound interest and reinvestment of stock dividends. It will be in your best interest to begin early on instead of waiting until later life when you have other priorities.

In addition to writing, Donna has many other interests including reading, antique shopping and collecting contemporary art glass marbles. She has been in the accounting profession for the last 34 years and is looking forward to her retirement someday soon. Check out her latest website related to picture framing tools at http://www.pictureframingtools.net

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Calculating Retirement Income From Rental Properties

Whether you have a 401k or other retirement plan, income from a rental property can make your later years more enjoyable. After finding one in your price range, the next step is calculating its cash flow. That means determining what your annual expenses will be and deducting them from the rent. The balance is your cash flow.

Depreciation sounds like an expense, but it is generally a tax advantage. On a $125,000 property, for example, the depreciation over 27 and one-half years comes to $3,636 per year. This is a tax deduction. In the early years of your mortgage, interest will reduce earnings on the property so you won't have much of a profit. During this time, the depreciation comes in handy to reduce taxable income from other sources. In later years, it will reduce the amount of tax you pay on rental profits.

When you retire, you can use monthly rental income for normal expenses and travel. Or you can sell the property and have a lump sum to use for something you always dreamed of, like a luxury RV in which to tour the country. In years to come, your property could double in value. Some things to consider when looking for a rental property:

* Good location. Today, rents are rising and will continue to rise in stable neighborhoods. The location should be not too distant from where you live now.

* You can often buy a duplex for not much more than a single family home, and rents will be higher.

* Find a building that's not too old so it will comply with building, zoning, and fire codes. And it will have lower maintenance costs. Have it inspected.

* Have your real estate agent tip you off to a building with an out-of-town owner who is eager to sell. Sometimes such owners will take a two- or five-year contract for deed, which means a very small down payment.

See us at ralphandtricia.com. Ralph Bredahl is an Associate Broker with West USA Realty in the metro Phoenix area. His 12 years of experience make him a top choice for all your real estate needs in the Valley of the Sun.

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Key Reasons to Invest in Las Vegas

Key Opportunity

The current property market in the US is more rewarding for long term investors. Although this does not mean that short term investors cannot earn a healthy profit.

While scouting for profitable Las Vegas investment property, one should keep in mind the location. Places like Las Vegas and Phoenix are always packed with tourists (especially snowbirds) irrespective of the time of the year, resulting in high rental returns. Today the off-plan investments cost less as compared to completed projects of same size and at comparable locations. This has led to the popularization of the "flip" investment strategy. In this strategy the investors put their money in projects and sell off before their completion. Their profit is the rise in value of the property as it nears its completion. One should keep in mind to verify the re-assignment rules before finalizing the deal. Real Estate brokers charge a fee at times for this facility which is a percentage of the purchase price.

Timeline

Real estate players have taken numerous steps to encourage investors. They have been offered friendly and flexible payment plans like an installment system. They are at times asked to pay at the time of the completion of the project with a small amount deposited when they enter the investment. In terms of the project life-cycle, the earlier you enter the deal the better it is. Earlier entry into Las Vegas investment property comes with the privilege of first right to the units. This way the investor can choose the unit most likely to get a good price for resale or renting.

Risk Management

Investors should take steps to contain the risk of their investment. They should evaluate each opportunity on certain set parameters like appearance, location, facilities; and choose the one with maximum potential.

Another important angle to consider is the exit strategy. Investors should have a plan of action whereby they are ready for instantaneous bail-out in case they have to liquidate the investment at a short notice. This includes a back-up plan if market falls and you cannot get a buyer.

ROI

The returns for short term investors in current market have somewhat dwindled. The market is more aligned to the interests of long term investors. The investor latches on to profitable venture benefits both from capital appreciation and a steady flow of rental money. On top of that, the profit percentage can be increased by getting a discounted price at pre-release stages; thereby reducing the cost of Las Vegas investment property considerably.

More investment tips, local management company info, and hot spots to invest around Las Vegas are located on our website specializing in Las Vegas investment property.

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Retirement Age Calculator - 4 Retirement Tips

Do you want to know how to take an early break from all the commitments of life and settle down? Well, you are in the right place. What you need is to think and plan in advance how you want your life to be. It becomes very easy if you the access to a retirement age calculator as this will give you all the details about how you need to lead your life now so that your future is secure.

If you are planning to retire early that means that you need to save more during the time that you are working. Plus you also need to think about the actual returns you are getting from your money - Is it invested in the right places?

The retirement age calculator is exactly what you require because this will give you a clear idea of how much you will have to save every year starting today.

Consider an example. If you want an amount say about $50,000 every year during your retirement, you need to consider several different values so that you save enough to reach this amount. There is no point in facing this as if it were child's play because, if you are stuck you will lose all your freedom and your life will go to the dogs.

Retire early - Tips to help you

* One important suggestion is that make sure you discuss all your plans with your spouse because when there are two people into this life becomes a lot easier to handle.
* Make sure you have your house before you go in for an early retirement because this is one of the best investments.
* If possible get all your bad debts cleared before you take any decision
* Get hold of tax advantage accounts like 401K and IRA accounts. These are secure and you will have additional income

You can use the services of an agent or a middle man to handle all your investments. But the choice of the right person matters a lot and you need to make sure that you choose one based on the past results. You could also use services of an online retirement age calculator. This will give you the perfect plan on how you need to run your future. Most importantly take some pride in your investments. The more you care about your money the better it will perform.

Do you want to learn an Investment strategy that will allow you to make $15,000 per month? http://www.SharesPropertyMoney.com would like to offer you a free gift valued at $97 - A FREE Step by Step DVD that will show you exactly how to make this simple (but secret) strategy work.

This will make your Retirement Age Calculator look out of date - Plus it is Free. "Thanks to this strategy I have quit my job and now make a very good living from my investing"

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From Job to Freedom - Making the Move Successfully!

Thousands of people turn 55 each day in Canada. Most of them will retire for the first time, unsuccessfully, at age 57. Why "unsuccessfully"? Because while many pre-retirees plan and calculate their financial resources to ensure an adequate nest egg to fund their retirement, almost none of them invest time and energy planning the non-financial aspects of retiring. For example:

• When is the right time for me to retire?
• Do I expect retirement to consist of full-time leisure? How do I know that will be satisfying for me? And if not, what does retirement mean for me?
• Do I want to continue working in a business or position of my choice? How many hours? Who would employee me, or what business would I start?
• Who am I apart from my job?
• What is my attitude toward the transition to retirement? Do I know how to address my fears?
• How will my marriage and other family and social relationships change when I retire? Do I have a vision of how I would like those new relationships to be?
• How will I spend my time when I'm no longer working full-time?
• What is my current level of health? Do I know how to maintain it? Do I have a plan if it changes?
• What is my vision for an ideal retirement?
• What primary contribution do I want to make in the "third half" of my life?
• What motivates me?

These questions and many more are rarely asked by people approaching retirement. As a result, they end up dissatisfied, or consider returning to work, or wish they'd planned it better.

Successful retirement must take into consideration all of the key elements of one's life. Financial resources are one aspect, but by no means the only place to focus. Developing a retirement lifestyle is a comprehensive approach to retirement planning that is unlike any other system. And it is just that - a system or template that will help your retirement decision is not only financially viable, but emotionally and personally satisfying as well. The Retirement Lifestyle System includes eight simple steps to ensure you reach your desired retirement goal.

Hiring a professionally trained Retirement Coach will assist in planning your retirement. Retirement coaches:

• Help their clients set priorities, develop a plan and timeline, and work toward it
• Assist their clients to determine whether they will work and how it will be structured if they do
• Help their clients overcome fears and other mental and emotional barriers
• Test clients' assumptions, ideas and models about retirement
• Assist clients in resolving timing issues (spouse works, they don't), factor in needs for care of family members, etc.
• Brainstorm with clients ideas for entrepreneurship in retirement
• Help companies address retention issues, avoid talent loss through flex-work and similar programs

Are you ready for an uplifting, energizing, fun retirement full of new discoveries and adventures? Is it your goal to experience a retirement that will truly meet your needs and those close to you? If the answer is yes, contact a professionally trained Retirement Coach today. Retirement coaches can help their clients avoid being one of those who retire and find that they dislike their new lifestyle - for reasons that can be hard to pinpoint after the fact. Happy retirement!

Donna Galay, B. Admin, CHRP, ACCC is a successful Career & Retirement Transition Coach, workshop facilitator and speaker, who uses a simple step-by-step process, to assist individuals and employees in businesses with career issues and retirement readiness.

Connect with Donna: donna@coachingthatworks.ca
Blog: http://donnagalay.wordpress.com
Linkedin: http://www.linkedin.com/in/careerandretirementcoach

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Things to Consider When Investing

The best form of investing is the type done over the long term. The common mode for most individuals is usually a 401k account or other related employer based models. While the current economic environment has in many cases yielded little growth if not loss for the last several years, historically the stock market and the various mutual fund investment options associated with it have typically yielded healthy rates of return.

The problem of late for many has been that the severe downturns in the market have occurred too close to their anticipated retirement dates. This reality has left many investors with the realization that they will not see a return to their previous level of funds, let alone positive growth. This is unfortunately one of the challenges that must be faced by all who play the market.

As a result, many are increasingly turning to models which in short offer little real growth but provide a greater degree of security. An example of this kind of investment would be a bank account that pays out interest on any money deposited in to it. This "safe" kind of investing is generally low yield and builds up over a long period of time. Some accounts including certificates of deposits may earn slightly higher interest than others, but this is usually tied to some limited access to your money over the investment term.

Other individuals are turning to precious medals in light of the decline of the dollar and the anticipated rise of interest rates in light of the ballooning federal deficit and looming federal debt. Precious metals like gold and silver have proven to be safe havens during most economic crisis and often increase greatly in times of economic turmoil. The challenge of a collapse in silver or gold prices however can occur once economic stability returns. This can cause prices to severely drop. The best approach then is a mixture which gives the investor the best possible safeguards for their investments.

Jacob Lumbroso is a world traveler and an enthusiast for foreign languages, history, and foreign cultures. He writes articles on history and languages for and has used Pimsleur Courses to learn various languages and recommends the Platiquemos Spanish DVD for mastering Spanish.

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Investing For Poor People

I am always amazed by the countless financial advisors who give various investment strategies for troubled economic times. But what do you do when you have no money to invest? Thinking about dividends, stock returns, and 401ks is important, but if you are laid off, underemployed or flat broke, the thought of planning for retirement is largely ludicrous. I say this from personal experience. When for example you have lost your life savings from a business failure, it is hard to see beyond the realities of food and clothing.

So what should you do? Should you simply ignore the experts and your successful friends who pout about having lost several hundred thousand dollars in the market, yet still maintain million dollar homes, college funds, and large bank accounts? One thing you can do is micro invest. When I lost my not so small fortune in business, I found myself in a very depressed mood. So what I did is I started looking for the most affordable option to invest. I considered a certificate of deposit but found that the minimum was typically a thousand dollars. After a little research I found something what worked for me.

It was silver coins. Silver like gold is a tangible asset. You can actually hold it in your hands. It is something that unlike paper stocks never completely loses its value and instead is typically a safe and moderately growing asset. A typical circulated Morgan Silver Dollar at the time of writing sells for approximately fifteen to sixteen dollars. That's a couple of movie tickets. Even if you can only afford a coin a week or one a month, the number can build over time.

With the current federal deficit and the growing federal debt, most economists agree that interest rates must ultimately rise as the dollar falls in value. While gold is certainly the preferred asset given such forecasts, silver has some practical advantages and typically rises in value under such circumstances. It's obviously less expensive and affordable for even poor people like myself. Furthermore, silver has a practical uses in industries such as the semiconductor industry. It's in demand, and is apparently undermined.

A fifteen dollar coin may not solve your retirement problems, but collecting them over time and actually having something in your hands that you can touch, can go far in lifting your spirits and adding to your recovery.

Jacob Lumbroso is a world traveler and an enthusiast for foreign languages, history, and foreign cultures. He writes articles on history and languages for and has used Pimsleur Courses to learn various languages and recommends the Platiquemos Spanish Course for learning Spanish.

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Annuities are issued by insurance companies and, by courtesy of the U.S. Congress, enjoy income tax deferral: meaning no income taxes are due until th

The Great Recession has probably thrown your investments in reverse, and you're hoping to soon "get back to break even". Not only may this be wishful thinking, it is probably bad strategy - because this is the exact strategy that got you to the bottom in the first place. What's more, your investments - and the market - may not cooperate by coming back. If your portfolio was General Motors, Ford, AIG, Citicorp, Lehman Brothers, WaMu, Frontier Airlines, Mervyn's, Circuit City and other victims of the Great Recession, there is no "coming back". Least you think the stock market's recovery is certain, consider Japan's Nikkei index. It was at 40,000 in 1990 and is now at 10,500. This can also happen in the USA: the NASDAQ index was 6,000 in 2002 and today is at 2,100. Granted, the market may recover longer-term, but in the meantime there are several complications.

First, it takes a bigger percentage gain than the percentage loss to get back to break even. This sounds confusing until you do the math. If you had $1000 in the market and it dropped to $500, you'd have a 50% loss. If the market reversed and gained 50%, your balance would be $750 ($500 + [50% x $500] = $750). It takes a 100% gain to recover a 50% loss. The stock market, as measured by the DJIA index, peaked at 14,165 in October 2007 and then nosedived over 50% to 6,547 in March 2009. While the market index is now 48% above the March low, 116% growth is needed to reach the previous peak (break even); therefore, further gains of 68% are needed for full recovery. While individual stocks can move dramatically in a short period of time, the market indexes move in lockstep with the overall economy. Currently the economy's health is anemic, and it appears many years will be needed to heal from the Great Recession. Even if there is a rapid snap back of the market, problems remain.

The Great Recession fostered a dramatic rise in the federal deficit. Massive amounts of money were injected to thaw credit markets, bailout critical industries and institutions, ease the economic pain of the unemployed millions, save the quasi-government housing agencies from failure, fund stimulus payments and more. This deficit explosion is the seed of future inflation. Unless taxes are raised dramatically or expenditures are cut drastically, more money chasing fewer goods will prime the inflation pump. The double digit rise in prices of the late 70's and early 80's comes to mind. If sharply higher inflation materializes, rapid market growth will be needed to maintain the purchasing power of your portfolio. Let's be optimists and assume 10% market growth and only 5% inflation. Under these conditions, the 68% real growth needed for break even will take about 14 years. Ironically, a typical retiree, age 70, is expected to live 14 years. Since Uncle Sam does not consider inflation when designing tax tables, you'll pay taxes on nominal gains even though you had a real loss in purchasing power.

There are great ways to manage risk; defer-lessen-eliminate taxes; lock in guaranteed fixed rates as high as 8% for a later guaranteed lifetime income; integrate money from retirement-savings-investment accounts with Social Security benefits to maximize income and minimize taxes. So don't wait for the market break even before you change your strategy. Meet with your financial advisor and chart a new course. Remember the definition of insanity: doing the same thing over and over and expecting different results.

Shelby J. Smith, Ph.D.
October 2009

For more information check out the new Retirement Pros website http://www.theretirementpros.com/ and visit our blog at http://www.theretirementpros.com/blog to ask questions.

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Bank CDs Vs Guaranteed Lifetime Income

Lower interest rates have spilled over into banks, and one-year CDs paying 1.5% or less are commonplace. This is a huge decline from a year or two ago when comparable CDs were paying more than 3%. As I mentioned in my Retirement Blog, CD rates are marching in an unclear direction, you may be uncertain about how to keep your income at the level you need and still get the security you have with FDIC. Keep these points in mind: your new rate a year from now may be higher or lower, and CD interest is subject to income taxes. Before you renew that CD with the ridiculously low rate, consider another alternative that offers a guaranteed income stream, with safety, AND can leave you with more money.

ScalesIn what follows, taxes of 25% are assumed and an investment of $100,000 is used. The 1.5% bank CD earning $1,500 annually provides you $1,125 "take home income" after taxes. Thus, your after-tax interest rate is only 1.125% with the rest being paid to Uncle Sam in taxes. Of course, a lower tax bracket means your earnings will be higher, and vice versa. You can substitute your tax bracket and adjust the results accordingly. Let's use a recently introduced technique called an "Income Annuity" (a garden variety deferred annuity equipped with a guaranteed life income rider) to see if we can improve on the results. But first a word about annuities!

Annuities are issued by insurance companies and, by courtesy of the U.S. Congress, enjoy income tax deferral: meaning no income taxes are due until the earnings are actually withdrawn. Insurance companies are some of the world's largest, oldest and financially strongest companies: you use them to safeguard your life, health, home, business, car and virtually everything else you value. Annuities are broadly classified as "variable annuities" and "fixed annuities". Variable annuities are nothing more than mutual funds inside an insurance company "wrapper" to give them tax-deferred status and, as such, their value is determined by the ups and downs of the stock market. In other words, variable annuities have risk of loss, because the stock market can lose substantial value from time to time - witness 2007/2009 when many variable annuities lost over 50% of their value. In fact, the stock market's last high was in October of 2007 and currently is about 5,500 points short of that high water mark. Fixed annuities, on the other hand, are guaranteed by the insurance company to not lose value if they are held to maturity; thus, they are more conservative and we'll use them since most retirement-minded investors are risk averse.

There are numerous ways that fixed annuities credit interest, but that is a discussion for a later time. Suffice it to say that if you hold a fixed annuity until maturity, you're guaranteed to earn a minimum stated rate of interest regardless of what happens to interest rates or stock market indexes. Of course, you have the opportunity to earn a rate higher than the guaranteed minimum. Unlike the bank CD where interest is subject to income taxes even if you don't withdraw it, interest from an annuity is not taxable until it is actually withdrawn. If you take this tax deferral feature and add an Income Annuity, you have the opportunity to maintain your "take home" income and have more later. Let's illustrate with an example.

Let's take most of that $100,000 and buy an Income Annuity. Back in 2007 you were probably making 5% interest on your CD and you got used to that $5000 of pre-tax income. We are going to set up an annuity designed to pay you more than $5000 annually AND we can set it up for LIFE. Now here is a special note... since you are used to receiving the $5000 each year from your CD, we are going to hold out $5000 from the $100,000 to cover your income during the first year of the annuity policy. This will leave $95,000 to deposit into the annuity. Don't worry, we will make it all back during the first year. The annuity will include two very important features - a 5% cash bonus AND a no-cost life income benefit rider. Without boring you with the details, you can start taking your guaranteed lifetime income any time after the first anniversary of the policy. For a 59-68 year old, depositing $95,000 into this annuity with a 5% cash bonus and starting the income exactly one year after purchasing the annuity, the income will equal NO LESS THAN $5,236.87 per year... an increase of 4.7%! Imagine never having to shop for CD rates again or ever having to worry about adjusting your lifestyle to fit the movements of some banker's whim! Annuities can readily deliver that "sleep insurance" we all desire so much!

Shelby J. Smith, Ph.D.
October 2009

For more information check out the new Retirement Pros website at http://www.theretirementpros.com/ and visit our blog at http://www.theretirementpros.com/blog to ask questions.

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Using Gold As an After-Retirement Investment

Gold has been considered to be a precious metal for people all around the world since many centuries. The demand of gold has only increased over time, due to its use in various industries. The investors now believe that gold is a good investing option. How about investing in gold as you are retired?

The recession and economic downturn has de-motivated the investors; everyone is doubtful about making any investment. However, gold has maintained and even increased its value during this recession period. It is the least affected and recession-proof investment for retired people, who can maintain a stable and wealthy living conditions in their old age.

The stock market did collapse, and many big investors dropped from billions to pennies. Any person, near to retirement, is now frightened to make any investment in the stock market. On the other hand, the prices of commodities are rising day by day, and inflation rate has touched the highest figure in 2008.

Gold is the wisest investment at this juncture for the people, especially for retired people who do not have many options to try. Any quantity of gold can contribute to a good saving at the end of the year. Gold bullion value rarely depreciates and makes it an ideal choice for the masses.

Gold investment does contribute to a balanced retirement plan as gold, like other precious metals, is a sensible investment. It surely can lessen the instability of your retirement plan. Other investment options like mutual funds, stocks, bank deposits etc, are never a smart choice as they are likely to fall prey to the ever-changing values. On contrary, the value and price of gold has been increasing for many years.

Surely, gold is secure, protected, stable and profitable investment in this era when we are facing high inflation. The US Dollar and Pound Sterling have lost their value in the open market, but gold trade is still increasing significantly. Gold is a hedge for the investors of today, and especially for the people who have retirement plans.

Different ways by which you can add gold to your retirement investments are as follows; Gold coins and bullions can be bought from a dealer, but for this, you must have arrangement of a safe place. You can buy shares of an exchange traded fund, or you can own individual gold mining stocks. Investing in precious metals mutual or exchange traded fund is also an option for investing gold. Finally, you can invest in commodities fund, as part of your overall asset allocation strategy.

Investing in gold does not mean to invest all your money in gold or convert all your stocks to gold; investing in gold is a simple and stable way of protecting your assets and wealth for a long period of time. All depends upon how well you plan and how well you use your money as a part of your retirement investment plan. No one knows when the market may get a big turn. A careful and vigilant investor always knows the appropriate time to make investment correctly on the item that is high in demand in the market. In a nutshell, you can say that gold, as a retirement investment, would always be worth investing even if it is as low as one gram.

Jack Wagon is a gold investment consultant. Learn how to buy gold in the times of recession. For more information visit his recommended website at http://www.goldmadesimple.com/.

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Protect Your Estate With Wills and Trusts

While here on earth, we should be a blessing to others. But, our job is not done there. We should also leave our mark behind when we are gone. 2 Corinthians 12:14 tells us to provide for our children. But Proverbs takes it one step further to include future generations. Proverbs 13:22 reads, "A good man leaves an inheritance for his children's children, but a sinner's wealth is stored up for the righteous." (NIV)

It is important for us to plan ahead. When King Hezekiah fell ill, Isaiah told him to get his house in order because he was going to die. You can read this in 2 Kings 20:1.

Whether sooner or later, death is inevitable for all of us. But for our families' sake, we should be prepared. Rather than letting the state courts decide which family member should be entitled to our property, we can set up wills and trusts that divide our assets and document our last requests.

A revocable living trust is a great option. But first, let me put out this disclaimer. I am not a lawyer. I am merely giving you a jump start. Please seek legal advice to find out how this will best meet the needs of your family.

A revocable living trust is similar to a will because it sets forth how you would like your assets to be distributed upon your death. However, the added benefit is that a trust avoids probate. When your estate ends up in probate, the courts appoint a conservator to manage your assets. Everything becomes public. The process is long and expensive.

Wills and trusts are imperative to ensure that the legacy continues. It is possible that our heirs are not mentally or emotionally ready to handle the immediate wealth our death provides for them. Proverbs 20:21 has warned us, "An inheritance quickly gained at the beginning will not be blessed at the end." (NIV)

Some family members may allow greed to take hold of them, resulting in the inheritance being mismanaged and squandered in months. A trust allows us to designate trustworthy managers who can ensure that the legacy continues. In Galatians 4:1-2, Paul says, "What I am saying is that as long as the heir is a child, he is no different from a slave, although he owns the whole estate. He is subject to guardians and trustees until the time set by his father." (NIV)

It is never too early to start planning. We are not promised tomorrow, so if we want to ensure that our last wishes for our assets are fulfilled, we need to take the time to see that the proper documents are in place.

Two other documents to consider are an advance health care directive and a durable power of attorney. An advance health care directive names a trusted person to make health care decisions for you if you are unable to do so yourself. A durable power of attorney names a trusted person to manage your financial affairs when you are unable to do so. Again, seek legal counsel to ensure that these are correctly executed.

Ozeme J. Bonnette is a financial coach, speaker, and author of Get What Belongs to You: A Christian Guide to Managing Your Finances. After working for a top financial services company, she shifted her focus to speaking to groups hoping to increase financial literacy. She earned 3 Bachelor's degrees at Fresno State, and her MBA at UCLA's Anderson School. Her blog is http://www.povertynorriches.com. Reach her at ozeme@thechristianmoneycoach.com.

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Getting Started With Retirement Planning

Determining when to retire and the way you want it to happen is probably one of your most important economic goals. Things may influence you when deciding to retire - your own personal condition may be or it may be because of the instability of economic situation such as tax law changes.

You may build up a plan on your own to make sure that you have the right assets to go on retirement. Your plan does not necessarily have to be followed verbatim but having it will help you in reaching your specific goals. Through careful assessment of your objectives and altering it when needed, you'll be able to notice that your odds in reaching your retirement goals will surprisingly increase or possibly exceed.

There are many rudiments in making a retirement plan. It may not be easy because of the multifaceted and unpredictable issues present when making the plan but it may be the beginning. After comprehending the information given, you may start calling and consulting your financial mentor to talk about your goals. Your mentor can aide you in devising and improving your plan to help you attain your ultimate goal - financial security. It is best to start early in devising your plan. As the saying goes, "the earlier, the better" because of the following reasons:

• You'll have more time to build a retirement nest egg.
• High tendency to make your savings program a habit.
• And most importantly, time can magnify the effects of compounding.

These are three reasons which are essential to your financial achievement.

After taking some time to read tips like this, you'll eventually gain enough knowledge in making up your own retirement plan, get ideas on what are the important things to do as you go on planning and most significantly, discover the right ways to keep away from the problems that you may meet along the way. If you haven't start thinking on having a retirement plan yet, no need to worry; you may miss certain chances but it's never too late.

This data is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional advice or opinions and assumes no liability in connection with its use. Please contact Doeren Mayhew for more information.

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What Are Target-Date (Lifecycle) Funds?

Target date funds (also called lifecycle funds) are mutual funds that link an investment portfolio to a particular time horizon. In fact, most target funds have a date attached to their name. This date should be correlated with a particular event in the investor's life, most usually their expected retirement date. These funds are becoming more and more common in company 401(k) plans.

Target funds are unique in that they are actually fund of funds, meaning the lifecycle fund invests in a collection of mutual funds. This is done for diversification purposes. For instance, a lifecyle fund will usually be made up of mutual funds that specialize in large, mid, and small cap stocks, international stocks, and even corporate and government bond funds. As a fund of funds, a target date's expense ratio is heavily impacted by the expense ratios of the underlying funds.

Target funds are designed to automatically scale back the level of investment risk in a portfolio as the investor ages. Young investors, not intending to retire until 2040, probably prefer to be aggressive while retirement is not on the horizon, but become more and more conservative as retirement approaches. Target date funds accomplish this goal automatically. As the date gets closer to the target date, the fund will usually begin selling stocks and purchasing bonds and money market instruments, making the portfolio continually more conservative.

It should be noted that a fund does not cease to exist when the target date is reached. The fund of funds will continue to operate as usual after reaching the target date. That date simply measures how aggressive or conservative the fund should be at any point in time.

Before investing in a target fund, be aware of the implications of using a "one-size fits all" approach to investing. The lifecycle fund may not scale back the aggressiveness of a portfolio as quickly as some investors would like, while being too conservative for others. This is a serious issue not present when an individual utilizes a portfolio of individual stocks, bonds, or mutual funds where they have more control over the portfolio's overall level of risk.

As usual, it would be wise to converse with an independent fee only financial advisor to more fully understand the benefits and drawbacks of target-date funds.

Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning and investment advisory firm in Salt Lake City, Utah. He specializes in developing custom financial plans, implementing investment strategies, and providing ongoing support and service in order to help clients reach their financial goals. He can be contacted at (801) 566-0740 or lon@networthadvice.com. Visit the Net Worth Advisory Group website at http://www.networthadvice.com and read Lon's blog at http://www.utahfinancialadvisor.blogspot.com.

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The Dangers of Investing For a Lifetime Income

Many retirees live on income from their portfolio of stocks, bonds, mutual funds and other market-related securities. On October 09, 2007, the market [as measured by the DJIA] peaked at 14164.53 and then started a dramatic decline until March 09, 2009, when a trough of 6547.05 was reached. This 53.8% shrinkage played havoc with retirees' portfolios and forced many back to work or slimmed down their lifestyles. If you had $500,000 at the peak and were withdrawing $25,000 [5%] annually to support retirement, the same withdrawal of dollars at the trough amounted to 10.82%. This alarming acceleration of the "burn rate" is why Congress suspended the required withdrawals from IRA accounts in 2009. Events of the Great Recession punctuate the dangers of investing for income. Let's look at some details and a solution some retirees are using.

Not only did portfolio values fall, but so did dividend and interest income from these portfolios. The credit crunch left many companies strapped for cash, and they drastically reduced their dividends. The S&P 500 companies cut dividends by over $40 billion in 2008 and by another $50 billion in the first half of 2009. Retirees counting on dividend income from stocks and mutual funds suffered a major setback. While dividend income may have served some retirees well in the past, the risks of relying on stock dividends are now apparent and certainly not suitable for everyone.

What about fixed rates, either from bank deposits or bonds? Bank rates are at historical lows and those relying on interest income from CDs have suffered severely. Income from fixed rate bonds and income [bond] mutual funds is now less dependable as companies have defaulted and variable rates forced coupon yields drastically lower. Given the current level of domestic and global uncertainty, no one can reliably forecast the future level of interest rates and assess the creditworthiness of bond issuers. The flight to the security of Treasury bonds has been especially traumatic since these rates are currently hovering near zero. Retirees living on interest income from bank CDs and bonds have fared no better than those with portfolios of securities.

There remains, however, one reliable way to assure a future income for retirement that you cannot outlive. This reliable source has been around for centuries and has withstood the ravages of natural disasters, failures of government, wars, depressions and financial meltdowns. When you have risks you cannot shoulder on your own - like the possibility of outliving your money, the diagnosis of a critical illness or losing your home to fire, wind or flood.

Where do you turn?

The insurance industry specializes in managing catastrophic events by pooling risks of a large number of people. Those not suffering losses help pay for the misfortune of those who do, and the insurance company profits by managing the risk. You can now insure the fear of outliving your money [longevity risk] by entrusting an insurance company with some or all of your retirement money in exchange for the guarantee of a lifetime income. The more money you transfer to your longevity insurance policy, the higher your guaranteed income-for-life will be. This solution removes the danger and uncertainty of investing for income. While this is a relatively new coverage offered by insurance companies, it is rapidly finding favor with retirees fearful of outliving their money. By combining your SS benefits with a guaranteed lifetime income from an insurance company, you can lock-up lifetime retirement paychecks you cannot outlive. If you're tired of low rates, high risks, uncertainties and worries of outliving your money, this could be the perfect solution for you - find out by discussing the suitability with your financial advisor.

For more information check out the new Retirement Pros website http://www.theretirementpros.com/ and visit our blog at http://www.theretirementpros.com/blog to post questions/concerns.

Article Source: http://EzineArticles.com/?expert=Dr._Shelby_Smith

Thinking of Retirement? Data Entry Work Could Help You Decide on What to Do With That Free Time!

Somehow you have taken into consideration retirement already, thinking of permanently taking care of the family. However something holds you back, mulling it over, "What home based business can I set up to bring about the financial security I need?" You have probably heard of the data entry work but you are still unsure if you want to give it a try. After all there a lot of scams right now and you do not want to risk the savings that you have.

Most likely you wish to figure out some of the basics of this waxing home-based online business at the outset, before giving it your full time attention. The most important thing to know here is that you will be the boss. This is not the chronic offline entry work you have done at an office. You control here the flow of operations by the number of 3 line advertisements you can complete and submit. Also, you are your own time keeper. If that does not excite you, then what?

However, you have to remember that since your income shall be derived from submitted forms and commissions of product sales, the financial level that you want to step into lies solely in your shoulders. Essentially, like all the principle of wealthy people, your success is in your head. That means your determination, persistence and fortitude will contribute to your financial well being.

This "IS" online entry work, 27,000 other people have already succeeded on it. I myself was oblivious of this number until I came across some discussions on board on how to have an extra income in this economic meltdown. I really never thought that online work would thrive, and offline jobs (manufacturers) would falter.

But I will share to you the part that will intrigue you the most... this job, does not require any skill at all. You do not need four to five years of sitting with the books. What you need is just a computer and the Internet, and your time and dedication of course. Also, let me add that if you do take the unprecedented leap to become a data entry processor, find an online program to oversee the beginnings. Find the best quarterback, the best data entry program on the field. (some come at one time membership price of just under $50)

Can you just imagine a lifetime membership slightly under the price of a box of pizza, a bowl of pop corn and a drink?

I did. And I can say I was never disappointed to try the online entry work.

Best Home Based Data Entry: Featured on CNN Money! Check out my National Data Entry review at my site! -- Don't forget, you can also get 50% - 75% off for a limited time so go now, you'll be sorry if you miss it!

Kayla Heather Beverly is a mother of 3 beautiful kids and a year ago, she decided to give up her full time job to venture into the home based data entry business. She has since been able to create a full time income of between $2000 - $6000 monthly, just working on data entry jobs.

Article Source: http://EzineArticles.com/?expert=Kayla_Heather_Beverly

Why Retirement is a Boring Concept For the Young!

Why should a young person plan for retirement? I believe they shouldn't! Instead the young should plan to be successful. They should focus on building lasting wealth early in life, which eliminates the need for retirement planning.

The traditional concept of retirement implies planning for failure. Yes, for a twenty something person just starting out, a traditional retirement, at age 65, would be a failure. This is because traditional retirement planning implies that you remain dependent on a paycheck until retirement age. Thus, if you are twenty something, traditional retirement planning implies freezing your dreams of leisure for forty years. Failure to reach financial independence until traditional retirement age, forty years later, would be a failure. You should aim for a higher goal - early success and financial independence.

Is it reasonable to expect twenty something people to deny themselves current lifestyle resources and redirect these resources to an event that is forty years away?

Why should we wait for retirement age to obtain the easy life? Why should we remain depended on our paychecks until retirement? Why should we put money in a retirement account we don't plan on using for forty plus years? Your new goal should be obtaining financial serenity as early as possible in life.

Let's forget about retirement and instead focus on achieving success. Let's define success as the ability and freedom to pursue our dreams and desires early in life without financial burdens.

Success and financial freedom are based on the choices we make regarding how we spend and invest our money. If properly coached, we can achieve financial freedom much earlier in life. However, we can only achieve your freedom dreams if we are prepared to take a different path from what society normally dictates to us. We must discard the traditional concepts of spending money because many of these concepts have been placed in our heads by toxic external advertising forces. We must learn methods for building wealth that will provide for our financial success.

I believe that early success and financial independence is an achievable and responsible goal. Twenty something people should focus on building the financial independence required to pursue their dreams.

The financial freedom account concept introduced in the book, Poor No More, shows how it is possible to obtain these dreams earlier.

Curtis Hill is a Certified Financial Planner™ based in Beverly Hills, CA. Mr. Hill has been a successful financial advisor since 1994 after leading a thriving business management career. Mr. Hill has identified proven "wealth behaviors" to adopt and financial pitfalls to avoid in his book, Poor No More: Wealth is Within Reach.

Article Source: http://EzineArticles.com/?expert=Curtis_Hill

What's Wrong With Retirement?

The basic concept of retirement is broken! Therefore retirement planning and retirement saving are questionable endeavors. Let's list some to the issues with the traditional retirement concept:

1. Why should you wait for retirement age to enjoy life?
2. Why should you remain depended on your paychecks until retirement?
3. What is magical about age 65 or any other predefined retirement age?
4. Is it reasonable to expect a twenty year old to defer gratification for forty years?
5. Is it reasonable to freeze our dreams about how life should be for forty years?
6. Is it possible to suddenly switch from living off your paycheck to living off retirement investment accounts late in life?
7. Will you ever be able to trust that you have enough money to comfortable retire?

Retirement is a broken concept promoted by corporations with intent on using you until you are too expensive (compared to a young person) and then easily disposing of you.

Let's trash the goal of retirement and instead focus on the ability and freedom to pursue your dreams. Your new goal should be financial serenity. This implies a lifestyle free to pursue your desires without financial burdens. In short you should focus on financial freedom and not retirement.

This freedom is not dependent on an age. This freedom is based on the choices you make regarding how you spend and invest your money. If properly coached, you can achieve financial freedom much earlier in life. However, you can only achieve your freedom dreams if you are prepared to take a different path from what society normally dictates to us. You must discard your traditional concepts of spending money because many of these concepts have been placed in your heads by toxic external advertising forces. You must learn methods for building wealth that will provide for your financial success.

I believe that retirement is a broken concept. Instead of saving for retirement we should build the financial independence required to pursue your dreams.

The financial freedom account concept introduced in the book, Poor No More, shows how you can obtain your dreams earlier.

Curtis Hill is a Certified Financial Planner™ based in Beverly Hills, CA. Mr. Hill has been a successful financial advisor since 1994 after leading a thriving business management career. Mr. Hill has identified proven "wealth behaviors" to adopt and financial pitfalls to avoid in his book, Poor No More: Wealth is Within Reach.

Article Source: http://EzineArticles.com/?expert=Curtis_Hill

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