Retirement Is A Scary Proposition If You're Without A Plan, And Running Out Of Time

Of the 75 million baby boomers nearing retirement today, many are:

• Debt Ridden
• Severely unprepared for retirement
• Under Funded
• Without a Strategy

This is a very serious problem in a country that we can all remember used to assure most people of a retirement where you are taken care of financially.

We all know that social security alone is not the answer to this problem. Many baby boomers are on the cusp of retirement without the ability to pay their basic living expenses with the money they will have coming in after retirement.

This means most will be looking for jobs to compensate, or they will be looking for extensions of their current jobs past the time they had hoped to retire and enjoy their lives comfortably.

Out of embarrassment, many people answer their friends by saying they wouldn’t know what to do with themselves in retirement to justify why they are still working to make ends meet past retirement age.

If you are in the situation above or can picture that situation in the next 10 years, there is something you can do to change that financial prognosis.

First, look at your 401k. Calculate what you could expect at retirement if you could actively manage it up to 8% more in yearly compounded return.

Depending on when retirement is supposed to happen for you, what kind of nest egg does that leave you as opposed to depending on the return you are seeing now?

A very simple but powerful 401k strategy that works with any 401k plan involves two things.

1. Awareness
2. Use of an index fund

By awareness, I mean tracking the value of your 401k holdings on a weekly basis if possible. With this level of awareness you can easily spot a portfolio decline. If it approaches a predetermined amount (5% to no more than 10% suggested) you should switch into a money market. Or if you are well informed and have the ability to do so, switch into an index fund that is designed to profit from a decline (a Bear Fund).

The biggest advantage you will gain is NOT letting your account value sink to such dismal levels where a 40%, 50% or greater gain is required just to get back to even.

This alone could significantly increase the size of your 401k over time.

Is this the only strategy that can safely increase your return rate on your 401k?

Not at all. You just need to know what most people won’t tell you. I have written a book on the subject called “Scientific Wealth Strategies.” You can find it at http://wealthscientist.com

I also have some more retirement strategies and resources located here: http://wwww.retirementinfo4u.com

Whatever your situation is right now, how much time you have left to make a change, and how much you calculate your need to be for a comfortable retirement, you cannot benefit from leaving things as they are.

Only education and strategic investment can net you the returns needed to have a safety net in place so that when you retire, you are not stuck in a constant monthly deficit spending cycle.

That’s not what retirement was supposed to be about. And it doesn’t have to be that way for you!

C.C. Collins is a Wealth Building Advisor and Author of “Scientific Wealth Strategies” at http://wealthscientist.com Find more information at www.retirementinfo4u.com

Blooming Boomers – Women and Retirement

Is your retirement looming off in the not too distant future? Do you have dreams of a life filled with rest and relaxation? Perhaps you envision vacationing year round. Those images sound pretty idyllic, especially if you are currently working long hours and feeling the stress and strain of your job. Working women are continually being stretched in a myriad of directions. That often translates into putting retirement planning and plans for retirement on the back burner of life.

Do you know that Baby Boomers are retiring at the rate of 10,000 every day in the United States! The oldest boomer is now 58 years old; the youngest is 40. They number 76 million in our country. Are you in that number?

The boomers have had a huge impact in our country. The first wave of baby boomers filled up our schools in the 50’s. They changed campus politics in the 60’s with their protests, marches and sit-ins. They were entering the work force in the 70’s and 80’s. The 90’s brought changes to the workplace such as flextime and family leave time. Now boomers are entering the retirement phase of life. They are living longer, retiring earlier and their focus is on lifestyle, not age. Imagine the impact they will have on retirement!

Boomers are redefining retirement as a new career life transition. However, most aren’t prepared for managing that transition. More time is spent on planning a vacation than on the next thirty years beyond retirement! Yes, many have been preparing financially with contributions to their 401K’s, Roth IRA’s, etc. However, retirement is more than finances.

There is the human side of retirement. For retirement to be truly successful people need to embrace the idea of life planning. How can we workers replace the function that work has played in our lives? One of the benefits of work is remuneration. We get paid for what we do. It gives us a sense of financial security.

But work provides us with more benefits than just remuneration. It helps us with the following: time management, socialization, a sense of purpose and status. Let’s take a closer look at those benefits.

Work gives structure to our life by managing our time. At times, it over manages our time and leaves little time for fun. Through our work we have agendas and schedules to follow. We know where we are supposed to be and what we are supposed to do. It keeps us organized.

At work we socialize with our co-workers and clients. We form and develop relationships that give us a sense of connection and belonging. We spend our time interacting and communicating with others to get the work done. We have a sense of camaraderie.

Many of us receive the benefit of status from our work. Our sense of personal worth and identity are derived from work. We experience a clear picture of who we are and what we do. We get recognition for what we do.

Work provides us with a sense of purpose. That purpose gives meaning to our lives because we are helping others in some way. We receive some qualitative measure of satisfaction in our life.

How will the functions of work be replaced when you retire? How will you get fulfilled? Those above mentioned benefits of work are just one aspect of what life planning is all about. There are fourteen other factors to consider when preparing for retirement. For example, how will you define who you are when you aren’t working? How adaptable are you to making changes in your life? How well do you rely your own internal sense for guidance and direction? These are important questions to consider when thinking about what retirement means to you.

Retirement is a complicated process that requires planning and introspection. It’s not just about the money. There are important social, mental and physical implications as well.

Many of you won’t follow the traditional model of retirement. Some will continue working full time at something you truly enjoy while others will work part time because you need the money. Perhaps you will start your own business or volunteer your time to worthy causes. As a Blooming Baby Boomer you probably won’t spend the next thirty years sitting and watching life pass you by. This is the age of a new retirement.

Is it time for you to give some attention to your future retirement? Vacationing year round may not be the solution that puts genuine meaning in the next phase your life. Don’t short change the next thirty years of your life. You’ll want to continue blooming!

Carol Gegner ©2004