Thinking About Early Retirement 10-Minute Quiz Determines Your Readiness

(ARA) - If you've delayed planning for retirement because it makes you feel a) old or b) financially inept, think again. With a little foresight, you could be out there enjoying life like other people -- maybe even before you reach the so-called "retirement age."

Like many people in the prime of life, it's not unusual to think of retirement as such a distant idea that you avoid saving for it until next week, next year, next job. After all, who's got time to think about the "R" word? In reality, it's never too late, or too early, to start planning for retirement.

Retirement used to be defined as what a person was no longer doing. More and more, however, retirement has come to mean what a person is can do. Choosing a second career. Traveling to see the world. Volunteering in the community. Taking on a new hobby. Taking care of grandchildren.

If Mondays find you heading for the highway to work, but you'd rather be heading for the golf course to play, it might be time to consider your financial future -- even if you're among the three out of four Americans who hate financial planning.

"You don't need to be a financial wizard to start thinking about early retirement," says Randy Schuldt, vice president with IHateFinancialPlanning.com, a Web site devoted to the 75 percent of Americans who hate financial planning. "With some simple steps, you can take control of your financial future before it starts controlling your dreams."

To help better understand what's involved in retirement planning, IHateFinancialPlanning.com has developed a 10-minute quiz -- an early retirement calculator of sorts -- that will help determine your state of readiness. If your score points to a lifetime of enduring the daily grind, a visit to IHateFinancialPlanning.com or a meeting with a financial planner might help perk up your financial future.

IHateFinancialPlanning.Com Early Retirement Readiness Calculator

1. I dream about my retirement
   1. All of the time
   2. Only when work drives me nuts
   3. None of the time

2. I know exactly what I want to do when I retire
   1. Yes -- in fact I've identified the date
   2. Too many choices to decide
   3. No -- I'll be too old anyway

3. IRA stands for
   1. Individual Retirement Account
   2. Irish Republican Army
   3. IRA -- you mean my cousin Ira?

4. I regularly contribute to my 401(k) at work
   1. At the maximum amount of money allowed
   2. As much as I can afford
   3. Never

5. I expect my health insurance costs to decrease as I get older
   1. False
   2. I'm not planning on getting older
   3. True

6. If I pay off my mortgage before I retire I will be able to
   1. Pocket up to $250,000 in tax-free profit on the sale of my home
   2. Barely scrape by on my other bills
   3. Guffaw loudly because only rich people can afford to do that

7. I can phase into retirement if I
   1. Plan ahead for big ticket items that might tempt me to draw on investments too soon
   2. Take a one month leave from my current job to test the waters
   3. Just up and quit

8. The cost of inflation
   1. Is expected to rise from 2 to 4 percent per year
   2. Is always changing
   3. Will have no effect on retirement plans

9. The nation's Social Security program
   1. Will eventually run out of money
   2. Will cover only some of my retirement costs
   3. Will always be there for me, just like it was for my parents

10. Disability income insurance is
    1. A good idea, since there's a 42 percent chance I'll become disabled between the ages of 30 and 50
    2. Something you should buy if you have a disability
    3. Only for old people

11. A fixed-rate annuity is
    1. A contract with a life insurance company designed to provide for a regular stream of payments at a later date
    2. Too complicated for me to worry about
    3. Considered to be a risky investment

12. The key to early retirement is
    1. Having a retirement goal
    2. Having a job with a good retirement plan
    3. Winning the lottery

SCORING:

Give yourself 3 points for every "A" answer; 2 points for every "B" answer; 1 point for every "C" answer.

36 points: Kiss work goodbye? You may be headed straight for the beach. We'd tell you to pack suntan lotion for when you leave, but then, you've probably already planned that, too.

25 to 35 or more points: So near, yet so far. While you may have a good understanding of what a retirement plan needs to include, it's time to put your ideas into action. Check out IHateFinancialPlanning.com for some easy to understand, non-intimidating ways to fill the gaps of your plan.

16 to 24 points: Minimum effort may not get you where you want to go. Your plans could still use some fleshing out. You may want to consider talking with a professional to help solidify your dreams. Keep your retirement goals in mind and get a financial plan that will keep you headed in the right direction.

12 to 15 points: Early retirement, or any kind of retirement, might not be in your future. Get thee to a financial professional! If the mere thought of it makes you queasy, at least do this: mark your calendar for Feb. 3-10. That's the official celebration of I Hate Financial Planning Awareness Week, a week dedicated to helping people who hate financial planning learn how to deal with money matters and how to manage and invest money. You'll find more information and ways to cope at IHateFinancialPlanning.com. It even has an on-line panic button that you can push to get out your financial frustrations.

Courtesy ARA Content, www.ARAcontent.com; e-mail: info@ARAcontent.com

EDITOR'S NOTE: For more information, contact Maclaren Latta, Carmichael Lynch Spong, (612) 375-8570, mlatta@clynch.com or Stephen Dupont, Carmichael Lynch Spong, (612) 375-8525, sdupont@clynch.com.

About IHateFinancialPlanning.com

IHateFinancialPlanning.com is a Web site that's already helped more than 1.5 million people who hate financial planning make sense of their personal finances through fun, friendly, easy-to-understand content and financial planning tools. The Web site was developed by ReliaStar Financial Corp., a member of the ING Group.

About ING Group

ING Group is a global financial institution active in the fields of insurance, banking and asset management, with more than 100,000 employees in 65 countries. ING provides a full range of integrated financial services for its clients through a variety of distribution channels. In the United States, ING's product and service portfolio includes banking, fixed and variable annuities, investment management, life insurance, mutual funds, personal finance education seminars, and trust services. For employers, ING businesses also offer a full range of retirement and other worksite benefits, including group insurance products. For more information, visit www.ing-usa.com.

This is a great year if you are self-employed or work for a small business. A number of new money-saving strategies are available to cut income taxes, medical costs, insurance costs and investment fees.
PPO BENEFITS EXPANDED - All U.S. short term medical plans now offer the option of utilizing a nationwide Preferred Provider Network (PPO) for discounts and claim processing. The PPO network is PHCS, recently listed as the highest rated private PPO plan by Consumer Reports Magazine (Oct. 2001). Previously this benefit was only available on more expensive permanent health plans but now is attached to the most affordable health insurance plans. This means that there is no longer any need to manually submit claims when using a participating provider. Claims are automatically submitted by the participating provider. This also means that members will receive a cash savings from their health plan even if total medical expenses do not ever reach the policy deductible. This is an optional feature; the policies still cover services from all medical providers nationwide and in Canada.
MSA INVESTMENT OPTIONS EXPANDED - Self-directed Medical Savings Account plans with balances over $1000 may now be invested in virtually any investment the same as a self-directed IRA account. There are literally thousands of investment possibilities for every plan participant. MSA health plans are now available in most states, but they are priced attractively to only about 40% of small businesses nationwide.
THE FIRST NO-FEE 401(k) PLANS - Thanks to the most recent tax law changes combined with the cost efficiency of Internet-based financial service providers, now any business can offer a 401(k) at no cost to either the employer or the plan participants. Even sole proprietors are eligible. In most cases small businesses with other types of retirement plans – especially SEP, SIMPLE, SARSEP – should now consider switching to a 401(k). These plans utilize entirely online account administration giving 24/7 access to your investment account.
Note that the term "no fee" means that there is no setup fee and no administration fee for a 401(k) plan itself. The plan participants may freely elect to place their money in some investments that have their own separate charges. Also, employers or individual plan participants may want to purchase supplemental financial planning services to help make better tax and retirement planning decisions when enrolling in a 401(k) plan.
IRS SUBSIDIZES SOME BENEFIT COSTS - The IRS offers a tax credit to low and modest income individuals who make retirement plan contributions. Also, businesses may claim a tax credit for the cost of setting up an employee retirement plan and educating employees on how to best utilize it.
MAXIMUM COST CAPPED FOR GUARANTEED ISSUE HEALTH PLANS - Most states have enacted laws that cap the maximum cost of a guaranteed issue small business health plan at 67% more than the cost for standard risks. To be eligible, a business must have a bona-fide payroll as evidenced by a copy of a state unemployment tax return. This can result in substantial savings if an employer with unhealthy members needs to switch health plans. This benefit is currently effective in 37 states.
LIBERALIZATION OF RETIREMENT PLANS - You can do more with your pension, 401(k) or IRA than ever before. The contribution limits are higher, loan provisions are easier, and withdrawal & rollover allowances are now more flexible. Whatever you want to do with your retirement plans, most likely there is now an easier way to get it done.