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Getting
Ready for Retirement II: Saving and Investing |
| Remember that
old admonition — you can’t burn the candle at both ends?
Well, something like that has been happening to retirement. At
one end, the length of retirement has been increasing, as
average retirement ages and average life expectancies rise. At
the other end, the amount of money people have during retirement
compared to their pre-retirement earnings has been declining, as
Social Security becomes less generous and 401(k) balances remain
relatively modest. In other words, retirement funds are being
consumed at both ends. What can you do to prevent your
retirement plans from going up in smoke? Read
the second of a four-part series from best-selling author James
Geary about how retirement is changing and how it is important
to take action now to help secure financial freedom during
retirement.
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Survey:
Have You Adequately Planned for Retirement?
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| Four years ago,
CFP Board asked its Web site visitors if they felt adequately
prepared for their retirement years. While a quarter of those
who completed the survey felt confident they would retire
comfortably and on time, 19% were confident they would need to
postpone their retirement plans. Half of the survey takers were
hesitant to make a firm evaluation of their retirement plans.
Have times changed? Let us know how confident you are about your
retirement planning.
Take
Our Survey
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Brave
New Workplaces: Financial Planning as an Employee Benefit
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| Gone are the
days when Americans expected to spend their entire career
working for one employer who would provide them a generous
pension plan and insurance coverage for little or no cost.
Things are a bit more complicated now. American workers between
the ages of 18 and 38 are likely to change jobs an average of 10
times during their working lives. And while learning a new job
can be a challenge in itself, each new job can bring with it a
host of not-so-familiar terms — perhaps GULP STD and LTD, 125,
HIPAA-protected, FICA tax-saving HDHP — HSA HRA (HMO, PPO or
POS?), MERP, cliff-vested DBP or SAR for ERISA-protected 401(k),
403(b) or ESOP. Americans today are often required to make a
broader range of financial decisions than those their parents
made, and for most Americans, the workplace is where most
important financial decisions will be made. Read
more about ways employers are making financial planning
available to their employees through the workplace.
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Help
with Handling Health Insurance
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| Planning for
retirement is one of the biggest financial challenges many
people will face. But even the most carefully laid plans can
unravel if health insurance is not factored into the equation.
Both the need for healthcare and its cost increase with age, and
those expenses can blow an enormous hole in an otherwise solid
financial plan for retirement. Health insurance is a complex
subject and, according to the U.S. Census Bureau, upwards of 45
million Americans do not have it. Here
are some tips on the kinds of health insurance available, and
resources for finding further information.
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Financial
Alerts
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| The North
American Securities Administrators Association compiled its
annual list of the top 10 fraudulent activities likely to trap
investors. From affinity and internet fraud to foreign exchange
trading, prime bank schemes, investment seminars and the sale of
unlicensed securities products by unlicensed individuals, learn
what to be aware of and how to protect yourself against
unscrupulous people out to get you, your money and your
identity. Educate yourself at: www.nasaa.org/Current_NASAA_Headlines
Those shopping for mortgages will want to review the
recently-updated Consumer Handbook on Adjustable-Rate
Mortgages published by the Federal Reserve Board. This
update provides information about these loans with changing
interest rates (also referred to as "ARMs") and
cautions ARM borrowers about the payment shock that can occur
when sudden interest rate changes raise a required monthly
mortgage payment, sometimes beyond the borrower’s ability to
pay. The Federal Reserve Board also advises caution with ARMs
that may lead to negative amortization — a situation where you
owe more than the amount originally borrowed — which can make
it difficult to refinance or sell a home. View the updated
handbook at: www.federalreserve.gov/pubs/arms
The National Association of Insurance Commissioners reminds
recent college graduates that finding a new health insurance
plan once health coverage expires under a parent’s policy
should be on the top of their post-graduation to-do lists. As
tempting as it may seem to forfeit health insurance to save
money, the financial repercussions of experiencing an unforeseen
illness or accident while uninsured can be far more devastating
than shelling out money to pay back student loans and credit
card debt. Learn about the importance of having an insurance
plan suited to your health needs, the different types of health
plans available, and information about health-related services
that are not health insurance plans at: www.naic.org/consumer_alert_health_insurance_after_college
Read
more about these and
other financial alerts.
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How
to Live Beyond Paycheck to Paycheck
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| Do you ever feel
like the personal finance articles you read are directed toward
people who have a bit more wealth (or luck) than you do? Do you
feel like the only way you’ll ever be able to save is to make
more money? In his new book Beyond Paycheck to Paycheck,
Michael B. Rubin, CFP®
addresses people just like you who may think it takes a bigger
bank account to start financial planning. "Here’s the
deal: The sooner you know what you’re doing financially, the
sooner you can begin to accumulate wealth." Read
more about Rubin’s
conversation on learning to understand finances so you can begin
to take control of your financial life and register to attend CFP
Board’s Free Financial Planning Clinic
on August 4, 2007 from 10:00 a.m. to 2:00 p.m. at the Sheraton
Boston Hotel, where Rubin will present a workshop on financial
planning for those who feel they have no finances to plan.
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About
This Newsletter
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You are receiving this e-mail because you subscribed to CFP
Board's eNewsletter. Periodically, CFP Board will e-mail you
"It's Your Turn," which includes information about
financial planning, financial planning tools and resources,
consumer alerts and much more. Suggestions and feedback are
welcome at mail@CFPBoard.org.
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