Many people go through their earlier years in life without giving much thought to retirement and what their future might hold. But not having a financial retirement plan in place during your later years can lead to great uncertainty in your ability to live comfortably once you leave the workplace.

The Insured Retirement Institute found that only 36 percent of baby boomers are feeling confident they will have a comfortable retirement. While 64 percent believe they will need to take a post-retirement job as an additional source of income.

A recent survey of U.S. employers also showed they lacked confidence in their employees’ readiness to retire. More than 500 U.S. companies representing more than 12 million employees were surveyed by human resource consulting firm Aon Hewitt. The study found that:

• Only 4 percent of employers were very confident their employees will have adequate retirement assets. This is a dramatic shift from 2011, when the same survey found that 30 percent of employers were very confident with their employees’ retirement assets.
• Only 10 percent of employers were very confident employees are taking the accountability needed to ensure retirement success.
• Employers are also questioning the ability of their employees to manage income once they do retire. Only 18 percent felt confident their employees will be able to manage their retirement assets.

Going through life without a retirement plan is a lot like going on a trip without a map or having a final destination in mind. Using a financial adviser to come up with a workable retirement plan is one of the most proactive steps an individual can take toward ensuring a retirement that meets their goals and has their final financial destination in mind.

“Individuals often neglect taking the time to create a long-term strategy for retirement that properly factors in all of their needs,” said Derek Overstreet, president of New Millennium Insurance Services in South Jordan, Utah. “Retirement planning should take into account your particular circumstances and goals for your retirement years.”

It’s never too late to start saving for retirement, even if you are in your 60s. Here are eight tips to jump start a retirement plan in your later years:

• Be aware of your current spending habits and calculate how much money you will need to live comfortably in the future.
• Meet with a retirement planning expert to come up with a strategy that will take into account all of your needs.
• Paying off debt should be a top priority. Once debts are paid off start putting whatever you can toward retirement savings. Even in small increments it will begin to add up.
• Practice living on a budget and eliminate unnecessary spending. When you reach retirement you will need to learn to live on what you have saved and not go beyond what has been budgeted. Practice living on a fixed income now to get used to your lifestyle once you do retire.
• Don’t depend on Social Security benefits. Many believe that Social Security alone will cover their needs; this is often not the case. According to the Social Security Administration, the average monthly check at the beginning of 2012 was $1,230.
• Participate in your employer’s 401k plan for savings. Many employers will match your contribution up to a certain level; take full advantage of this to maximize your return.
• Build your savings in a Roth IRA account, while diversifying your investments in stocks, bonds, mutual funds and more. With the Roth IRA, contributions are made with after-tax dollars and withdrawals are generally tax free. Any transaction done within the account has no tax impact.
• Going from working five days a week to not working at all is major lifestyle change. Consider a phased retirement where you work a couple days each week or just a few months out of the year.

Many have been impacted by the recession with unemployment, a plummeting stock portfolio and major losses in property values. Accept the reality of the current economic situation, but don’t let it deter you from reaching your goals. It may take more time to retire than you originally hoped, but being proactive in your approach will eventually get you there.

All boomers are faced with the reality that retirement is coming. Even if you are ready or not.

The below video takes a closer look at some of the realities that all boomers face:

• Do you have enough saved for retirement?
• How will I cope with retirement?
• What do I do after I retire?

Check out the video to see if you can relate with this boomer and some of the questions he has about his retirement.

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As baby boomers, most of us are past the child-rearing points in our lives. Our children have grown, many have gone off to college, and a good number have gotten married and started careers. They are going off on their own, a bittersweet development that lessens your financial obligations but may easily cause you some sadness and nostalgia.

Due to the faltering economy, however, today’s younger adults (those in their twenties and early thirties) are less independent than previous generations. Many of them are underemployed and some are living with their parents. Others have their own place but receive financial assistance. In such a climate, it should come as little surprise that a growing number of baby boomer parents are helping finance their child’s mortgage. This is largely the result of high rates for first-time home buyers. Instead of paying 5% on a mortgage, a younger buyer can get his parents to take out a mortgage at, say, 3.5%. He can then pay them back at 4%.

This arrangement can be mutually beneficial to both parent and child. But is it right for your family? Here are a few considerations to keep in mind:

Is This An Appropriate Investment Vehicle?

Financing your child’s mortgage may be a good investment, especially for couples who are hesitant to invest in the stock market as they approach retirement. But such an investment can also greatly reduce the diversity of your portfolio and lock a substantial portion of your assets into a single house. On this note, if financing a mortgage is detrimental to your portfolio or your retirement planning, it may not be the right move to make.  Make sure to talk with a financial consultant, such as one from Cavalry Portfolio Services, before you proceed.

Is There Any Chance That Your Child Defaults?

If there is any chance that your child fails to pay, you should absolutely refrain from entering into an agreement of this sort. Not only can a default create considerable family tensions, but it could also be economically crippling for you and your spouse. A bank can absorb a single default but you, in all likelihood, cannot.

How Much of A Difference Can You Make?

Some parents finance a mortgage simply to help their child save some money. Others do so because, without those savings, the son or daughter would not be able to afford a mortgage in the first place. Consider where your child falls on that spectrum. Is your help essential to their purchase of a home? Or is it merely beneficial? If the latter is the case, and if you find yourself expressing doubts, you may want to avoid making this investment altogether.

These are the three main considerations to keep in mind when deciding whether to help finance your child’s mortgage. Many parents instinctively want to help an adult child who is responsible, who can otherwise afford a house, and who hasn’t been dependent for years. While this is understandable, make sure that you don’t proceed without considering the potential ramifications.

The current U.S. and oversea economic situations are grim and the market is constantly fluctuating. Even level-headed investors are panicking and looking for quick financial fixes. However, it is important that everyone takes a step back to put the market movements in perspective. A drastic and sudden investment decision may give you short-term relief, but it can also jeopardize your long-term retirement goals.

So what does the latest economic news really mean for your 401(k)? Well, if you are investing for your retirement based on a strategy created for your unique situation, probably nothing too significant. Make sure you refrain from making hasty decisions out of fear and remain sensible by keeping the following things in mind:

1. First and foremost, establish a plan that aligns with your savings and investment goals and then stick with it.

If you have a well-thought out plan based on your financial goals, you will feel more comfortable committing to it through all market conditions. Choose your investments based on diversification and your risk tolerance. Accurately establishing your risk tolerance should keep you on track in down markets, and it should provide a guideline to keep your portfolio from getting too aggressive in up markets. It’s easy to panic when you think about your retirement savings in a down market, especially if your retirement date is right around the corner. If you’re invested based on a sound strategy that takes your investing personality into consideration, you’ll be less likely to react to the latest market news and more likely to stick to your plan.

2. There’s no such thing as the perfect investment.

Investors look to find the one investment that will protect them from the market’s volatility, while still providing growth opportunities. Focusing on finding that perfect investment will keep you from thinking about the bigger picture – building your nest egg. Also, you will become short-sighted by chasing after the next investment and miss out on two important wealth building strategies: compounding and dollar-cost averaging. Compounding works by adding growth onto past growth and dollar-cost averaging allows you to buy more shares when the market is down and fewer shares when the market is up, enabling you to smooth out the market’s fluctuations.

3. Rebalancing is crucial.

Rebalancing your portfolio is important, especially if you want your investments to keep up with the market’s ups and downs. Your original allocation may change because of the volatility and your assets may no longer line up with your original strategy. Moving your assets to fit your original portfolio should keep you well balanced and moving towards your goals. Diversification is important, but rebalancing your allocation two or more times a year should strengthen your investment strategy.

Every day the media announces another changing factor to the market, causing some investors to abandon their original plan out of fear. Avoid throwing away your retirement future for short-term satisfactions and instead, focus on the bigger economic picture and concentrate on building your retirement strategy to meet your needs.

Scott Holsopple is the president and CEO of Smart401k, offering easy-to-use, cost effective 401(k) advice and solutions for the everyday investor. His advice has been featured on various news outlets, including FOX Business, USA Today and The Wall Street Journal.

photo credit: dmixo6

Are you panicking because you did not start saving for retirement when you were young? Are you now worried that you won’t have enough saved for when you do retire? If you answered yes then you should not wait another day. While it is of course better to start saving when you are young, it is better to start saving late than not at all. Here are some tips to help you get started if you are a late retirement planner.

Don’t Panic

Many people who don’t start saving when they are young panic and as a result freeze up and avoid doing what needs to be done. If you find yourself retirement planning later in life it will be important to dig into the task at hand, determine what you need to do and start doing it. This will require you to take a calm and collective approach.

Determine What You Will Need To Save

Late retirement planning requires a more decisive plan than if you had started early. You will want to quickly work to develop a retirement budget, to determine what income you will have coming in during your retirement, how much money you anticipate needing and how much you still need to save. Once you have done this you will need to come up with a figure of how much you will need to save on a monthly or yearly basis. Once you have a figure your next task will be to start saving.

Start Saving

You now need to come up with a savings plan. First, you will need to work into your budget the amount that you will need to save. For some this may prove to be a difficult challenge. Don’t let this discourage you. Instead, really focus on what you want your retirement to look like and make the sacrifices you need to make. No one said saving later in life would be easy, but just think of how much harder it will be if you keep putting it off. Since you did start saving later you may need to work a few years more than you anticipated or still work part time during your early retirement years.

Be Careful About Risky Investments

Some people who start saving later in life think that they need to get their funds into potentially high yield investments in order to make up for lost time. This is usually not a wise move since high yield investments are also quite risky. If you start saving for retirement later in life you cannot afford to be too risky. Your best bet is to have a diversified portfolio and keep your funds out of the higher risk funds. A solid steady return should be your goal.

Reevaluate Every Year

Finally, you will also want to stay on top of your investing. At the very least you will want to re evaluate where you are on an annual basis. Make sure you are getting the return you anticipated and that you are saving enough. If you need to adjust do so as soon as you can.

photo credit: kenteegardin

Achieving an early retirement may be the life dream of many workers but it takes more than dreaming to actually reach such a goal without already being independently wealthy. There is actually a lifestyle associated with planning for an early retirement and planning is a key element in that lifestyle.

Here are some valuable questions you need to ask yourself as you plan to achieve an early retirement:

What Is Early Retirement For Me?

In order to live a lifestyle of early retirement it is essential to first identify when retirement would come early. There are workers who would like to see themselves retire by their early 40’s while others are aiming for the age of 60. Regardless of how you identify the early age of retirement, it is essential you do by considering a few factors like your specific life expectancy to ensure you would have enough cash; whether or not you can afford continued health insurance for the necessary period of time; and when you’ll actually be ready to put your career behind you.

What Kind of Income Will I Need in Retirement?

There can be so many factors that influence once ability to survive financially after retirement. Once you pinpoint your age desire, you’ll need to calculate your cost of living plus all the other expenses such as hobbies, entertainment, and even travel. This is not an easy calculation to determine but estimates are necessary to begin aggressive planning, especially if you are fast-approaching your designated early retirement age. It may be necessary to sit down with a financial advisor who can highlight the expenses to consider in retirement if the concept is too overwhelming. Many people skip the financial pre-planning process of planning for retirement simply because there is just too much financial information to ingest.

Can I Live Like I Am Already Retired?

In order to guarantee a successful early retirement, it is essential to have the financial means. This translates to starting to live like you’ve already retired. It will be very important to set goals that allow for the most money to be put into retirement accounts and investments. Living like you’ve already begun retirement will include balancing a frugal lifestyle but still living efficiently. Budgeting will be required to ensure the allocation of funds into retirement accounts is adequate. Depending on one’s income, it can be hard to put that cash towards retirement goals when other needs must be met. Those who hope to retire by 45 but have a family to support may find it difficult to meet all of their financial goals for retirement at a younger than average age.

What is My Investment Plan?

Retirement funds are solely created for the purpose of saving for later in life. Depending on early contributions as well as those after early retirement goals have been set, your retirement funds may not be enough to sustain you for long. Employer-offered retirement accounts should be utilized effectively to ensure that paychecks are sufficient but contributions are consistent. Those who invest their income into various vehicles to earn additional retirement funds are always at risk for losing money. It is essential to have an investment plan for now as well as for the future. You must be able to choose investments that will provide the funds you need in your retirement years. It is extremely important to research and plan investments wisely so they will fulfill that purpose. Mistakes can be made easily which can hurt your chances for achieving an early retirement.

Living an early retirement lifestyle also means living a progressive, forward-thinking life where early retirement remains a priority. Being willing to sacrifice now for what you can have in the future can be a hard commitment to live with especially if early retirement is still a long way of for you.

photo credit: SCA Svenska Cellulosa Aktiebolaget

Many people look forward to their retirement years so they have more time to travel. Working generally limits the amount of vacation time, so it’s natural for people who enjoy traveling to look forward to their golden years, when they’re not limited to two weeks a year for vacationing. Unfortunately, many people reach retirement only to discover they can’t fulfill their travel dreams due to a lack of available money to do so. Here are some tips for traveling in retirement, from budgeting to medical and packing:

Include Budget Airlines in Your Search

The most popular travel search engines for flights will only include the largest airlines. Use travel search engines to compare prices of various flights that include all the budget airlines, as well. You may overpay for flights simply because you didn’t check the budget airlines.

Skip Airfare Completely

Better yet, take your time and travel slowly rather than booking flight after flight. Often, we’re all in a race to get from one place to another and see as much as we can in our limited vacation time. When traveling in retirement, you have the luxury of traveling more slowly. Visit one or two destinations at a time, and take some time to really explore every place you visit. You can get to know the people who live there, you can learn a new language, you can live as a local for a month or more, and avoid paying airfare from one destination to another as often.

If there are domestic destinations you want to explore in your travels, consider buying an RV. Taking your accommodations with you when you travel opens the door to thousands of dollars in savings over hotels.

Consider Your Medical Needs

As people age, there is often an increase in medical needs. If you are traveling, make sure you have enough medication to last your entire trip – and even a few extra doses in case you are delayed in your travels. If possible, research where you can get additional prescriptions while on the road. Keep in mind not all American health insurance will be accepted outside of the US, so if traveling abroad you’ll need to know what is covered and what to do if you become ill or injured outside the country.

Don’t Overpack

You want to figure out the fine line between being prepared and overpacking! You certainly don’t want to be dragging heavy luggage around, only to discover you didn’t wear half of what you brought with you! Research the climate for where you’re going and pack clothes that match the expected temperatures. Bring along one outfit for unseasonably warm or cooler weather than expected, but don’t try to bring your entire wardrobe in an effort to be prepared for anything!

Be on the Look Out for Bargains

If you plan ahead, you can safe money in all aspects of travel from transportation to food to entertainment. If you like to visit local attractions when you’ve arrived to your travel destination, keep in mind that all attractions that allow children will tend to be busier on weekends and school holidays, so you will often get a discount on school days and you’ll avoid the major crowds, too. Always ask for senior discounts – even if they are not advertised, many locations offer discounts or specials for seniors.

photo credit: Michael R. Swigart

If you are planning a retirement party, whether for a family member, boss or other coworker it doesn’t have to be a stressful task. There is such an array of what you can do and so many options that it can be fun and exciting, the creative options are limitless. You will need to decide where to have the party, what food to serve, who to invite, whether or not there will be entertainment and so much more. Read on for some great ideas to get your party underway.

Determine What The Guest Of Honor Wants

First and foremost you should let the guest of honor help you decide where the party will be. It is a big day and they very well could have an opinion of whether they want the party in a fancy restaurant or if they prefer a more casual venue. You should additionally seek their input on the menu and they should also be able to help in creating the guest list.

Create A Theme

Next, you may want to consider a theme for the party. Does the guest of honor have a hobby or anything of particular interest that you could use as a party theme? For example, are they a big sports fan, do they love a certain type of music, are they a wine connoisseur, etc. Having a theme can help create great ambiance and make it easy for you to decorate, decide on entertainment and more.

A Trip Down Memory Lane

For the party you may want to consider surprising your guest with a trip down memory lane. You can do this in a variety of ways depending on your time and available resources. You can have co workers send pictures from the work place, ask them to write out their favorite work memory they have of the retiree or even create a video of people the guest of honor has worked with throughout the years reminiscing about work times.

Well Wishes For The Future

Another great idea is to have guests at the party offer their well wishes to the retiree. This can be done in a number of ways either having them write out their wishes or doing a video diary. Putting together a scrap book after the event for the guest of honor which includes everyone’s well wishes and photos of the event is a great gift idea that the retiree will most likely treasure for years to come.

All The Other Details

Of course there are a numerous other details that you will need to attend to and it is always advisable to get some assistance. Here is a quick check list to help you plan the big day.

• Secure a location for the party.
• Determine what food and beverage will be served.
• Create a guest list and send out invitations in a timely fashion with and RSVP date.
• Determine the theme, decoration needed, entertainment, other supplies, etc.
• If the party is a surprise have a plan to get the guest of honor there.
• A few days ahead determine a final head count.
• Finally, remember to take some time at the party to enjoy yourself.

photo credit: stevendepolo

Gone are the days of people hitting retirement age, packing up and heading to Florida, and sitting outside their retirement home sipping tea and driving to bingo in their golf carts. Baby boomers reaching retirement age are looking for communities that offer plenty of culture and and active lifestyle. They are not ready to pack it in and move into “over 55” apartment complexes. Deciding where to spend ones retirement can be tremendously exciting. Without the restraints of a job, the opportunities are limitless.

“Top” Lists

Choosing which communities are best for retirement is very subjective. Scanning top 10 and top 100 lists will show you plenty of cities, none better then the other, each offering some similar benefits and unique qualities. It’s probably better for you to make your own list of what you are looking for in a retirement community, then look through these top 10 lists online to see if any of the cities mentioned meet your criteria.

One thing you will definitely find in common on these lists are cities in the South or Southwest. While boomers may not be flocking to Florida, it appears that heading to warmer climates is still very appealing. Arizona, Texas, California, and North Carolina boast some of the most popular cities for retirement.

What to Consider

Something that the most popular retirement communities have in common is access. They have access to airports, to a University, to cultural activities such as museums and theater, and to fine dining establishments. This seems to be in line with the trend that boomers want to be able to stay active and get to things easily. When choosing a retirement community, consider whether these types of things are important to you, and if you want a city that supports an active lifestyle.

In a survey by Met Life, boomers considered “old” to be age 79 and certainly do not consider themselves “seniors”. Since baby boomers are considered those born between 1946 and 1964, the oldest of boomers are just turning 65. However, with older age, can come the issue of health problems. The top cities boast excellent health care systems, and that may be something worth looking into, especially if you plan to stay in the retirement community you choose for any length of time.

A final thing to consider is the climate of the city, not in terms of weather, but in terms of real estate market, crime, and cost of living. Look into the availability of homes in various price ranges, and a cost of living that is in line with how much you have in retirement savings.

Other Factors

Some retirees still like to hold a part-time job both for extra income and for something interesting to do. Finding a city that has jobs that interest you could be a consideration.

Also, if you have close or extended family, you might consider how often you will want to see them. Perhaps if you have grandchildren, you want to choose a city that will allow for frequent and affordable visits.

photo credit: US Army Africa