The economy has been hitting your retirement fund hard.  Between the fluctuating market to the threat of inflation, it’s no wonder that you’re worried about the health of your retirement savings – and are possibly tempted to just put off saving for retirement until the recession disappears.  However, now is not the time to give up! 

We’ve got four of the easiest yet most effective weapons you can use in the battle against a downturn economy – so you can spend more time planning your dream Florida retirement and less time worrying about the current bear market.

Buy More Bonds.  Now that stocks are wildly fluctuating, it’s time to chuck some of your riskiest stocks in favor of safe investments, like bonds, TIPS and CDs.  Ask your investment advisor which investments will best balance out any losses you may incur due to shaky stocks. 

Become An Entrepreneur.  For many retirees, quitting their day jobs just isn’t an option.  If you want to look for something to do during your retirement, why not dabble in a bit of entrepreneurship?  Sell your crafts online, write articles for newspapers or invest in real estate – whatever you choose, make sure it can make you money!

Keep A Constant Check-up.  It’s important to talk to your investment advisor about the health of your investments every year, no matter what kind of condition the market is in.  Make sure your portfolio is continually updated so that you’re taking on the appropriate amount of risk for your age.  Remember, you want your investments to be more conservative the closer you get to your retirement age. 

Consider Moving Up Your Retirement Age. If you saw a sharp decline in your 401(k) retirement fund as a result of the recession, consider retiring between the ages of 65-67.  It’s going to take just under two years in order to recoup any losses that you may have experienced, so working just a few more months can make a huge difference.

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

Authored By Kenneth Himmler, Sr.

Your 401K, which is a retirement plan that’s funded by both your employer and yourself, plays an extremely important role in the overall makeup of your retirement fund.  Think of your 401K as the meat and potatoes of your retirement planning: it’s one of the few funds that grows tax-free until your retirement and is portable from company to company.  Without the 401K retirement fund as an investment strategy, your retirement dreams can quickly become bust – fast!

So how can you make sure that your 401K retirement fund stays protected, especially during harsh economic times?  Simple: stay involved in your company’s investments!  This is your money!

Thanks to historic examples like Enron – coupled with the bust economy that we are now facing – many baby boomers fear that they’re 401K’s are in danger. Not to worry: there are some government regulations in place that protect your retirement fund.  However, it’s important to make sure that your company is doing proper investment research and allocating your funds across a wide and diverse portfolio of investments.  Remember, now that the stock market is so volatile, it’s important to educate yourself as to your company’s investment terms.  For example, be sure that no more than 10 percent of your 401K is invested in any one company; should that company’s stock plummet, your 401K could take years to get back on track. 

In other words, read the fine print of your 401K retirement fund!  Always do your due diligence and ask questions and speak up if you in any way feel uncomfortable.

It is important to do your research before deciding on any investments-do your homework. For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401K experts!

Authored by Kenneth Himmler, Sr.

While we all want to “retire” as soon as possible, planning to pay for our golden years is relegated to the back burner of our daily lives.  When you do spend a few moments on your retirement planning, make sure you avoid these pitfalls that could leave your retirement fund balance with far less than your goal.

1. Failing to Save Early

What younger workers often fail to realize is that starting a retirement fund early can prevent them from having to save a lot in the future.  A retirement fund started at 25 compared to 35 years of age can mean a compounded interest difference of tens and possibly hundreds of thousands of dollars at retirement.  Saving early, even just fifty dollars a month, can result in an outstanding retirement fund balance.

2. Failing to Save for Your Goals

To accurately create your retirement plan, you need to know what you want to do while you are retired.  Do you want to travel?  Live on a sailboat?  Or maybe just have a nice house close to the grandkids?  Planning your retirement can help determine how much you need to save, especially if you started saving later in life.  If you want a substantial retirement fund but only began saving at age 45, you have to put away much more per month to achieve your retirement goals. 

In addition, remember that Americans’ life expectancy continues to rise.  Be sure to plan your retirement for sufficient age expectancy. 

3. Depending on Just One Retirement Savings Option

Your 401(k) or IRA has investment options, all of which you have some amount of control.  You have the power to choose which mutual funds, stocks, or other options to place your retirement funds for growth.   Be wise in diversifying your options so that you don’t put all your proverbial eggs in one basket.  Aggressive investing with high yield options at a young age can reap big rewards over decades.  However, a person closer to retirement age may want to retain conservative investment options to maintain a healthy retirement fund balance.

4. Ignoring Your Tax Implications

Uncle Sam has created a number of tax breaks for your retirement savings.  Take advantage!  Use the free money that your employer will contribute to a 401(k) retirement fund.  Save as much as you can from each paycheck and save paying income tax now.  However, also beware of high penalties and taxes for an early withdrawal of retirement funds.

5. Doing it all Alone

Remember that you are not alone when it comes to retirement planning.  Enlist the help of a retirement professional at www.iamllc.biz or planning expert at www.kenhimmler.com

 Having help understanding risks and implications of retirement saving can give you more confidence in your retirement planning.  Professional advice can give you a gentle nudge in the right direction and even provide some disciplined action goals to keep you on track.  

Authored by Ken Himmler, Sr.