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by: Clifford Wall
Baby boomers are that large segment of the population born
between 1946 and 1964. Often called the “me” generation
because of their desire for instant gratification, they are
barreling full speed ahead toward retirement with one big
difference...
Their instant gratification lifestyle got them the new car,
the new home, the new high definition TV when they wanted
it, but they have saved a much smaller percentage of their
income than previous generations.
Now what do they do since they have a big elephant in the
room with them called "Retirement Planning?"
1. Baby Boomers Have Neglected Retirement Planning
There is a "Purple Elephant" in the room that the
majority of Baby-Boomers have been ignoring, it's called "Retirement
Planning," and Baby-Boomers are heading for a shock as
they hit retirement; primarily because of vanishing pnesions
and inadequate 401(k) savings. But is it too late and what
can they do?
2. The Government Will Take Care of My Retirement Needs
After all, Congress passed The Pension Protection Act of
2006. But, as we are all familiar with the results when the
Government decides to "Fix" a Problem-right? So
will they fix it or make it worse.
3. So did you see the Frontline Special: Can You Afford To
Retire?
Here is What You Need to Set Aside...(40) million Americans
now have 401(k) plans and many advisors are now saying that
you need 15 times your active income.
Frontline Correspondent Hedrick Smith talked with experts
about how people are handling this new do-it-yourself retirement
saving systems and the common mistakes they're making.
Interesting Sidebar:
Correspondent was talking to an upper-level manager of a
major corporation and a secretarial-administrative-assitant
type came in the room to serve them coffee. When she left
Hedrick asked: "Tell me, Mr. Big, would you let Suzy-Secretary
handle your retirement-pension plan and handle your finances
for the future?
Mr. Big huffed, and puffed and said: "Certainly not,
she's not qualified nor experienced in such intricate financial
matters."
Well, said Correspondent Hedrick, you are asking her to do
that for her own retirement program.
My fellow baby-boomer, did you get the point?
4. The End of Lifetime Pensions?
Do you know that none of the major airlines have intact pension
plans for their pilots?
Troubled companies have dumped their underfunded pension
plans, leaving the federal pension insurance system holding
the bag. Hedrick Smith talked with experts about whether the
private pension system can be protected.
5. Chapter 11 Bankruptcy Strategy is the Answer...
Chapter 11 Strategies have become a strategic tool for troubled
companies. Hedrick talked with industry insiders about how
it worked in the case of United Airlines, and whether it's
time for reforms to protect workers' benefits.
Find out who got protected and who didn't and why....very,
very interesting and revealing as to how all this works.
6. Public Pensions-Is there More Trouble Ahead?
Cities and States are facing the same red ink with their
pension trust funds as are private companies and corporations.
7. What's It Really All About-What Do You Really Need?
In the beginning of the Frontline segment it interviewed
an individual who had the wisdom to set up his retirement,
with professional advisors, and thought he had "covered
all his bases."
He was receiving monthly retirement checks of $3,000 per
month, and this-He and His wife thought-will be our retirement
income. Then the unmentionable happened...his company cut
his checks by 30%. The result-he had to go back to work and
is now driving trucks to make up the difference.
8. An Alternative Solution...
What we all need is a check every month. We need cash-flow,
we need money to pay our expenses, our insurance, and an income
that will grow in the event of catastrophic health expenses
in the future.
9. At Age 55 I Woke Up One Day...
Shortly after I turned (55) I had a wake-up call:
I got sick...fortunately, I had my Veterans Administration
Benefits to fall back on; but it made me start thinking. Then
the kiss death came. Social Security mailed me an estimation
of what I would receive if I took an early retirement at (62.5)...A
Whopping $937 per month.
Sure, I can live on this, if I start living under a bridge
somewhere, and start panhandling for my living.
Not an acceptable alternative for me...
10. So What do You do if you are +55 And Haven't Saved a
Dime
Don't feel alone-there are literally hundreds of thousands
of people who have little to show for their efforts.
You may have had the burden of college tuition, unexpected
medical expenses, job loss, bad investments, a bad divorce,
or maybe like me, you really didn't land your first "Good-Job"
until you were after 55.
There can be any number of other events that either drained
your assets or prevented you from building that nest egg in
the first place. Or, like so many baby-boomers, [aka the "Me
Generation"] you may have just been leading the good
life until you had your own personal "Wake-Up Call."
But don't throw up your hands and say, "It's too late-why
bother?"
Wouldn't you rather end up with some assets than none at
all?
11. So What Do We Do Now?
* Figure out what you will have and what you will need
* Put every possible dollar you can dedicate into a tax-deductible
retirement plan...this includes any plans your employer sponsors,
as well as your IRAs.
* Make a zero-based budget...meaning you start with the absolute
essential expenses, and then add expenses from there until
you run out of money.
* Take a hard look at your current work situation...could
you be getting paid more elsewhere, or be working for a company
that has better retirement benefits.
* MY FAVORITE-AND THE PATHWAY I HAVE CHOSEN-start a small
business on the site. There are many benefits to this, especially
if you are close to retirement. First, you can usually contribute
up to 25% of your self-employment income to a tax-dedubtible
Keogh plan even if you are already putting money into another
plan.
The second benefit of starting a business on the side is
that your new knowledge and experience makes you more valuable
to your current employer.
Third, if you are laid off or experience job discrimination
in terms of pay raise, you have another income.
* Forget the standard retirement age of 65-68. The longer
you work the more money you can save, and the fewer non-income
producing retirement years you will need to finance.
* Plan to sell your house and buyh a smaller one or get out
of the real estate market altogether; especially if you are
planning to move to a retirement community with liftetime
services.
* Be realistic in your projections and your dreams. Look
at each of the above items and use retirement calculators
to calculate "what-if" circumstances.
Remember this: There is nothing worse than being retired
and broke. And remember this statistic, at age 65, less than
2% of the population has $20,000 in cash. It's too late to
start your life over again and save all that money you spent
on things that didn't really matter.
Author Credit: Giner Applegarth, 12/13/01 http://moneycentral.msn.com/articles/retire/invest/1210.asp
12. But Which Business?
The Internet Security wave is here! Don't miss a day-get
started building your financial future right now.
You can make an important difference in the lives of those
you know and care about-AND buidl a solid finanical future
at the same time.
Everything you need to get started for just $299.99. The
enrollment fee to become an ISA and get your business started
on only $270. You will be shipped an ISA Business Success
Kit (valued at over $1000) that includes everything you need
to get your INVISUS Direct business started and begin earning
money immediately.
To get your personal computer protected, the initial month
setup fee for your personal subscription to the INVISUS service
is $29.99 per subscription. Altogether, for just $249.99,
you will have an exciting and powerful new business of your
own in one of the most explosive markets ever.
KEEP IN MIND: This is N-O-T a Get-Rich-Quick Scheme, but
rather a solid business based upon a product that works, a
product that is guaranteed, and one where there is never a
charge for customer support. The choice is yours...
When the boomers - about a third of today's workforce - reach
traditional retirement age in five years, there won't be enough
young workers poised to replace them.
Such labor shortages already are forcing employers to rethink
how they will recruit and retain older workers and deal with
' their ultimate retirement.
Aging baby boomers present both an opportunity and a challenge
for employers interested in topnotch people, particularly
with a labor shortage looming.
Clifford Wall is an independent Internet Saftety Advocate
(ISA) with Invisus Direct. He is not a financial planner,
attorney, or any other type of financial professional. However,
he is a pre-baby-boomer, having been born in 1944. Technically,
I guess you could say he was a World War II era baby.
For baby-boomers that have come to Retirement-Shock-Experience
that he has, he is recommending that any baby-boomer facing
ther same dilemma to give very serious consideration to starting
a Single-Office/ Home-Office business with INVISUS.
http://myinvisusdirect.com/ponyhunter/
About The Author
Clifford Wall is an independent Internet Saftety Advocate
(ISA) with Invisus Direct. He is not a financial planner,
attorney, or any other type of financial professional. However,
he is a pre-baby-boomer, having been born in 1944. Technically,
I guess you could say he was a World War II era baby.
For baby-boomers that have come to Retirement-Shock-Experience
that he has, he is recommending that any baby-boomer facing
ther same dilemma to give very serious consideration to starting
a Single-Office/ Home-Office business with INVISUS.
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