Financial Information

These days, it’s not uncommon to find that many baby boomers are coming into their first divorce, may have lost a business, or have found themselves mired deeply in dept.  These financial pitfalls are not just emotionally draining – they can have a devastating impact on your retirement savings if you don’t take the proper steps to protect them.  Many people faced with financial downfall turn to their savings and investments to get them out of debt or pay for that divorce.  However, if you want to reach that retirement age any time soon, then you’ll need to start over again – and we’re here to show you how.

Don’t Let Emotions Hold You Back. Debt can be depressing enough – but debt that’s caused by divorce or a medical emergency can be downright debilitating.  Don’t let your emotions get the best of you when it comes to starting over with your retirement; instead, separate your personal issues from your finances and move forward.

Get An Objective Opinion. This is where an investment advisor or financial planner comes in.  If you’ve had your money basics down pat and just need to boost your savings after a divorce or medical emergency, then go for a registered investment advisor; if, however, you don’t know how to rub two dollars together, get a financial planner to teach you the basics about money.

Don’t Second-Guess The Numbers.  Don’t live in ignorance about your overall retirement savings or your debt – sometimes facing up to what you owe can be more freeing than ignoring the numbers.  Again, get that investment advisor to help you come up with savings and investments that will get you back on track towards financial security again.

Cut Expenses. The old saying really is true: every little helps.  This means you’re going to have to comb through your expenses and get deals wherever possible.  While you may not see the benefits at first, trust us, it adds up at the end of the year.  Additionally, don’t drain anymore of your resources on major purchases – this means if you have a kid in school, have them take out student loans to finance their own education.  It’s harsh, but it’s necessary to get your retirement back on track.

Keep Working.  It might be time to push your retirement age up or earn extra money on the side – whatever option you choose, the extra income will help cushion your retirement savings.

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

Authored by Kenneth Himmler, Sr.

We’ve heard the story before.  As the credit crunch tightens its grip, you’re finding it much more difficult to pay for those bills and meet your basic needs.  You’re desperate to find a way out of the mess without having to take a second job or sell an organ on the black market – so it comes as no surprise that your 401(k) retirement fund and savings are looking pretty tempting right now.  You figure that you can put off retirement planning for a couple of years, just until the economy straightens out; what’s the harm in that?

No matter what you’ve heard, we’re here to tell you to leave that 401(k) retirement fund alone!  We’ve got four smart reasons why you should leave your savings and investments for when it’s actually time to retire:

You’ll Lose Out On Free Money.  Nothing in life is free, right? Not when it comes to your retirement.  If your employer makes matching contributions to your 401(k) retirement fund, then you’ll lose out on a significant amount of money by halting contributions, even for just a couple of years.  Time is truly the most critical factor for a comfortable retirement; if you miss out on a couple of years of investment opportunities, you risk losing thousands of dollars.

You’ll Miss Out On Incredible Growth Potential.  Investment advisors everywhere are telling fearful clients that they’ll be kicking themselves if they pull out of the market now.  Why is that?  It’s a simple history lesson: the markets follow a cyclical effect, and will inevitably straighten out again.  If you pull out of the market now, you’ll miss the opportunity to gain a whole lot of income when the economy improves – so take a deep breath, calm your nerves and just ride out the storm.

You’ll Be Penalized. It’s no secret that touching your 401(k) retirement fund before your retirement age will result in severe taxes and penalties.  If financial hardship is causing you to turn to your retirement savings for support, can you really afford to fork over a large portion of your hard-earned money to the government?

Didn’t think so. 

Your Retirement Is Your Number One Priority.  No matter what you think you need to pay off with your retirement savings – be it credit card debt or your child’s tuition bill – it all takes a backseat to your retirement plans.  Student loans can see your child through and credit card debt can be tackled through smart budget planning; don’t jeopardize you and your family’s future by dipping into your savings and investments before your retirement.

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

Authored by Kenneth Himmler, Sr.

For many seniors, the idea of retiring to a community is one which they do not relish. Most people’s retirement plans include staying at home, perhaps with some visiting nurse or assistant if health needs require, and not moving into a different environment.

Sometimes this is based on a financial decision, as the cost of entry to a senior community can be prohibitive. Nonetheless, there are certainly situations where moving to a more carefully monitored environment is in your best interest.

Instead of waiting for the time that when an assisted living or nursing home option is required, many people of retirement age are considering continuing care retirement communities, designed for seniors who currently are independent but want to have security of care as they grow older. These communities combine independent living, assisted living, and skilled nursing facilities in one setting, which means that the move to one of these is the last move you need to make.

There are many financial issues to be considered when contemplating your retirement living, and whether it should be in a community. There is usually a high entrance fee, sometimes refundable in part if you choose to leave soon after you get there.

What is probably more important to you, however, is the month to month cost for the services offered. In this respect, you should seek expert help from a financial consultant, like Ken Himmler (www.kenhimmler.com), who together with the company Integrated Asset Management (www.iamllc.biz) will be able to help you make sense of what is on offer.

You should know that some communities have begun to offer their services as a monthly rental, with health-care costs being paid as they are incurred, rather than in the traditional “life care” entrance fee. On the other hand, a true “life care” community, as defined by the state of California, must give guaranteed health care coverage for life, and also guarantee that if the resident runs out of money they will not lose their place.

In the absence of such a stringent requirement, you need to examine carefully the contract with the community, and understand how monthly fees may increase in line with an index. As this would be your last move, your retirement planning should be detailed, and you should not make any decisions in haste. If you decide that center retirement is for you, then carefully weigh up your options before selecting the community.

Authored by Kenneth Himmler, Sr.