Planning a Boomer Retirement

Saving for Retirement: Make the Maximum Contribution to your Retirement Plan & Retire Secure

By: James Lange | 03/11/2006 | Finance
Many people feel they cannot afford to save for retirement. The truth is that they may very well be able to afford to save, but don't realize it. Even if substantial savings and maximizing one's retirement plan contributions causes the net payroll check to be insufficient to meet the expenses, one should maximize retirement plan contributions.

Successfully Planning Retirement Can Make Your Future Secure

By: Brooke Hayles | 31/10/2006 | Finance
To successfully plan for retirement, there is a measure of dedication and financial responsibility involved. The most pain-free way is to write out a thorough plan, including a budget, and simply stick to it. While planning retirement can be stressful, remember that not having a plan when you're suddenly 65 years old is far worse than doing a bit of number crunching now.

How to Use an Early Retirement Plan to Secure your Future

By: Scott Taylor | 27/12/2007 | Investing
Planning ahead for retirement is a smart investment of your time and effort. The more you know, the better plan you can make.

Planning Retirement Strategy

By: Lorna Goldsborough | 05/08/2008 | Personal Finance
There are so many things that you will need to do for your retirement. You have to have a plan so that when the day finally comes to say goodbye to working, you are ready. You need to think about your future as much as you think about your present.

Financial Planning Advice – Secure Your Future

By: Akhil Shahani | 10/05/2008 | Finance
Financial Planning Advice

Retirement Financial Planning and Retirement Ideas

By: Anthony J Smith | 25/10/2007 | Finance
Part of living is growing old. This is a fact that we are aware of even as young children. Now even though many of us work hard and we have a great life, we have yet to think about the various options and plans that we will need when we retire.

401k Retirement Plan - What You Know About It?

By: Albert William | 27/10/2008 | Personal Finance
Numerous retirement plans are available but none of them is as effective and efficient as 401K retirement plan. However, offered only by private organizations.

Ira & Retirement Planning Mistakes: Don't Fall Victim to Bad Ira and Retirement Plan Advice

By: James Lange | 03/11/2006 | Taxes
Lack of knowledge in the IRA & retirement plan area can cost hundreds of thousands or even millions of dollars. Here Are some of the most common IRA & Retirement Planning Mistakes That Can Accelerate Acceleration of Income Taxes.

Kevin McCormally: I am Kevin McCormally of Kiplinger's, I am with Mary Beth Franklin, a Senior Editor of Kiplinger's Personal Finance magazine to talk about Retirement Planning for the Baby Boomer. Mary Beth, it seems like every time you turn on the TV, you are looking at newspaper, retirement is in the news. Why is that?

Mary Beth Franklin: Well, first of all, the first to the baby boomer turn 60 this year and there is a lot of them. They are turning 60 at the rate of 8,000 people a day, so right, there is a start, then you look at those headlines and you're seeing pensions forging, retiree help benefit disappearing, and then the ever nagging question of what about social security.

Kevin McCormally: Well, what about social security? What does Kiplinger think the future is for social security? Can boomer count on getting their checks on the government?

Mary Beth Franklin: Yes, boomer can count on a social security check but it may not look like today's social security check. F.A.C.E.-I.T., the program has some financial problem, so we think there will be changes like perhaps a higher retirement age for some of the boomer, maybe higher payroll taxes for working people.

Kevin McCormally: What about President Bush's idea about private accounts, that seems to be off the table and I haven't heard about it for a while. Does Kiplingers thinks that there will be something like that in the future or not?

Mary Beth Franklin: We don't think so, that 's pretty much dead on arrival. He's got too many other things going on.

Kevin McCormally: Okay, let's talk about the pensions that you mentioned. We see the airlines going bankrupt, they throw their their pensions on the government. We hear about other companies that are freezing their pensions. Can a worker who has a pension plan at work count on that?

Mary Beth Franklin: Well, they can probably count on what they've earned so far, but a lot of companies like Horizon and IBM are freezing their pension, that means you get to keep what you have so far but earning nothing going forward.

Kevin McCormally: And that's the real problem because most pensions really build up the big bucks in the later years of retirement.

Mary Beth Franklin: Exactly, so it's the mid-queer of middle age workers who really are hurt by that case.

Kevin McCormally: Okay, so what are people suppose to do? Are people saving enough on their own?

Mary Beth Franklin: Unfortunately not, what the problem is, they think they are. Every year, the Employee Benefit Research Institute conducts what it calls the Retirement Confidence Survey and once again two thirds of American workers say that they will have enough money to retire comfortably. Unfortunately, two thirds of them only have about $50,000 and that's simply not enough for 30 year retirement.

Kevin McCormally: Well, how much is enough for 30 years? And $50,000 isn't enough and you need a million bucks?

Mary Beth Franklin: Well, everybody's answer is going to be different. It's going to come down to do you have other guaranteed sources of income like a pension, maybe like social security, little less than before and the rest is what you have to make up yourself. Most people recommend 75-85 % of your pre-retirement income is a good goal for retirement but you have to sit down and figure out the numbers and most people aren't doing that.

Kevin McCormally: Okay, so where do I save? How do at 50 years old, how do I get started now moving ahead so I can retire at 65 or 68?

Mary Beth Franklin: Well, first of all, you want to advantage of every tax deferred retirement plan you have available, if you are lucky at work, you have a 401(k) and the fact that you are 50 means you can, not only save the maximum $15,000 this year, you get to throwing an extra $5,000 in catch-up contribution, so that means you can be saving $20,000 this year.

Kevin McCormally: So this is what people talk about when they say this sprint toward retirement? People are in their highest earning years, maybe the kids are gone, maybe they can really afford to start sucking it away.

Mary Beth Franklin: Right, this is the first time you are not paying for braces or college tuition, and maybe then the mortgages paid off, for that extra money into your 401(k).

Kevin McCormally: One final question, let's talk about long term care insurance. It seems like that's the way to protect the retirement in a stake, is becoming more popular.

Mary Beth Franklin: It's becoming more important because most people don't realize that Medicare does not pay for long term care. These are the stage in the nursing home, assisted living, read and care at home, it's not considered health care, it's basically help with daily-hood living. Medicare doesn't pay for it. Medicate which is essentially a welfare for the medically needy will pay for it but you have to be poor to qualify that. That means spending virtually all your money.

Kevin McCormally: Okay, let's go back to long term care insurance. How much does that cost to buy a policy that might pay some nursing home bills?

Mary Beth Franklin: Well, there is wide range but say if you are in your in your 50s and you buy a policy that would cover you for three years, you are generally looking in the $2000-3000 a year range.

Kevin McCormally: Okay, thank you very much.