Retirement Investing Advice | personal finance application

Baby boomers look for retirement investing advice as they should. Since this generation is living longer and healthier than their parents and grandparents, they need to have enough to support them or return to the work force. In today?s economy, many companies are not providing company pensions or a 401K.

Unless you inherit a large sum of money or win the lottery, you will need retirement investing advice for sure. Social Security will not be enough to live the way you want. We are hearing that Social Security that we are relying on may not be there by the year 2047. In additions, how many jobs will be available for you at your age?

Retirement investing advice is serious. There are only a few ways to save for retirement in qualified (being tax deferred) plans. They are:

1) Company sponsored 401K plan. This is considered ?FREE? money.
The money comes out of your paycheck pre-tax. So contributing
6% doesn?t make too much of difference in your take home pay.
What you contribute is tax deductible and taxes are deferred. So,
you don?t pay taxes until you withdraw funds. Usually, your tax
rate us much lower when you reach here. Also, your company is
also contributing to your 401K up to a certain percentage. That?s
why it?s ?FREE? money to you. When you are seeking retirement
investing advice, jump on this 401K if you are fortunate to work
for a company that offers it. Retirement investing advice can be
offered by the company or the third party firm who administers
the 401K plan. You have many options. Risk (younger age ),
conservative or as we mature in age, guaranteed funds.

2) Traditional Individual Retirement Plan (IRA). This plan is also funded with pre-tax or tax deductible dollars. There are maximum amounts that can be contributed each year. Starting in 2005, it is $4,000. If you are over 50, you can use what is called ?catch up? amounts to contribute each year. If you are also a part of a 401K, you will be restricted as to how much you can contribute to a traditional IRA. If you file your taxes separately from your spouse, you can avoid restrictions by having the IRA in your spouses name.

3) Roth IRA is another retirement investing advice tool. This however, is funded with post (after) tax dollars. You will not get a tax deduction the year you make your contribution. The good thing is that Roth IRA?s are not taxed ever again, including earnings on the investment. For this to happen, you must have the Roth IRA for a minimum of five years and be over 59 ? years of age. There are allowances to use the funds without penalty before retirement, such as major medical expenses, down payment on your FIRST home or education.

Retirement investment advice may include changing your lifestyle before your retire. Why? To get acquainted with the lifestyle you may have to embrace. Retirement investment advice indicates that you may have to downsize and change old habits.

* Hold off on home improvements or do them yourself.

* Stop eating meals out. Start planning menus.

* Trim your wardrobe. Get used to wearing clothes longer. Purchase a hand steamer instead of sending clothes to the dry cleaner. Sending clothes to the dry cleaner ( in my experience) shortens the life of the garment.

* Don?t buy books. Get a library card and visit the library.

* Only keep one credit card for emergencies only.

* Don?t purchase a new car. Seek pre-owned dealer warranted auto?s

* Keep thermostat lower

This is only a few area?s for your retirement investment advice for your to consideration. Retirement investment advice takes a lot of diligence on your part. Always seek professional retirement investment advice from a qualified specialist.

About the Author

Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. As
well as being a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S., Ric has many years experience in sales and management. Ric was also a mentor in
the financial arena as well as a volunteer teacher for Junior Achievement.

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