Plan Ahead - Start Saving Your Money

    Have you ever thought about how you plan to finance your retirement years?

    Many people don't have a clear idea of how much money they actually have, so it's hard to know how much they might be able to count on when they retire. Finding out what part of today's money can go toward retirement simply means adding up the value of all your current assets.  In this case, "assets" are cash, investments, and anything of value you can exchange for cash, like your house, savings bonds, or even fine jewelry. This figure will be your first important clue.

Recording these amounts could be a pleasant surprise. You don't want to count emergency money and savings for your children's education or a big trip - only money that you are not going to touch for at least 10 to 15 years. For Pre-Retirement planning  don't include any future Social Security benefits and guaranteed pensions because these items are future income, rather than current assets.  Any balances in work-related retirement plans, like 401(k) plans, is counted, however, and you will want to include amounts from current and former jobs. In fact, these just may be at the top of your list of today's assets.

You May Have More Than You Think!

Tracking your money in retirement plans should be fairly easy. If you didn't roll over your retirement plan balance when you changed jobs into a new retirement plan account or into an IRA, or if you didn't take your account balance as cash, you may discover some forgotten retirement assets you have. This is a good time to think about keeping your money with fewer, rather than more, quality financial institutions so it is easier to manage.

Recording current and old retirement account amounts on the Pre-Retirement Savings/Assets Worksheet, is important for a couple of reasons. First, locating an old account could take time. The longer it's "lost," the harder it will be to find. Second, understanding your current financial standing should automatically start you thinking about how to make your money grow.

Start Planning Today!

     Remember you're facing a retirement that's probably going to be longer than your parents' and will involve more uncertainties. This new kind of retirement probably means there are many American workers worrying about, instead of planning for, the future.

     You can make the choice to stop worrying and start figuring. Not only will you come up with facts to work with, the chances are good you might change the way you save. The 2008 EBRI survey also found that 44 percent of people who tried to figure out their financial futures ended up changing their retirement savings plans.

If you are a married woman: In preparing for retirement, women face the very real possibility of spending part of their retirement years without the support of a husband - most likely through widowhood. The loss of a spouse can sometimes mean the loss or reduction of benefits that can place women in financial jeopardy. For that reason, women will need to focus on their financial resources as a single person as well as half of a couple. 

    Consider what happens to your Social Security and to retirement benefits if your spouse dies or you divorce. Know what assets you can count on. Check Social Security benefit documents, retirement plan documents, and wills. Remember that wills are important, but they may not provide the protection desired. Depending on the way assets are titled or the terms of a will, the money women believe they can count on may not be passed to the surviving spouse.

   Whatever stage in your career you find yourself in - its never too early to focus on adding to your nest egg and investing it wisely. Save Your Hard earned money and investing for a secure financial future.  Check out these tips for improving your financial fitness.

Start Saving Money for Retirement

    Are you saving enough of your hard earned money? Would you like to someday leave your 9 to 5 job and maybe enjoy life more? Maybe you'd like to spend more time enjoying life and less time stuck in that stressful job so many of us seem to have?
   
Without exception, retirement planners advise  pitching in as much as you can to your retirement plan. This is especially true if your employer contributes too. If your contributions are made by salary deduction, saving is easier to do and will be  almost painless. Contributing more means postponing, or "deferring," taxes until you withdraw the money at retirement.  When you reach retirement age you may be in a lower tax bracket.
 

    Catch-up provisions for some retirement plans allow you to contribute extra amounts if you're over 50. Information about 401(k) catch-up contributions is available from your retirement plan administrator or on the Internet. If your plan has a catch-up provision, act on it now.

    

    Staying employed as long as possible benefits your retirement finances in several ways. Having an income gives your retirement savings more time to grow. A regular income could mean more regular savings. If you work for a company that provides health insurance, you won't have to fully pay for a policy yourself.

    

    You don't have to stay at your same job if there are other opportunities. Maybe you want a new career, one that ties in to your personal interests. Longer life spans and better health mean many older people have the energy and enthusiasm employers are looking for, not to mention the skills and experience. Many people find the social benefits of working as important as the financial ones.

    The amount of your monthly Social Security benefit goes up the older you are when you start receiving it. For example, a 61-year-old man earning $60,000 in 2009 and eligible for his Social Security benefit at 62 would receive an additional $1,080 a year by waiting 1 year, until he is 63, to collect his benefits. On the other hand, retirees who are seriously ill, who need the money immediately, or who feel comfortable investing their monthly checks may choose not to wait.

In this example, the worker turning 62 in 2010 would have a full retirement age under Social Security of 66. At full retirement, his benefit will be $1,645. If, however, he starts to receive benefits at age 62, his monthly benefit would be reduced to $1,172. By waiting until age 70, his monthly benefit would be $2,281.

     Early retirement can  result in about the same total Social Security benefits over your lifetime, but in smaller amounts to take into account the longer period you will be receiving them.

    If you delay retirement beyond the full Social Security retirement age, you can earn retirement credits, increasing Social Security by a certain percentage (depending on date of birth) until you reach age 70. 

 

      No matter how old you are when you choose to retire,  remember to sign up for Medicare at age 65. If you don't (for example, because you have other coverage) you may be limited on when you can enroll later and may pay more in premiums.

    Want a less stressful, more worry-free retirement?  Focus on saving your money and adding to your nest egg. Investing your savings wisely More saving, more investing, and less spending will boost your confidence and your financial bottom line as you approach retirement!

    Its never too late to start saving your money! Try these money saving tips to help you save a little ( or a lot ) more of your hard earned money!