Archive for September, 2013

What College Students Should Know About Retirement

Tuesday, September 10th, 2013

College students and recent graduates face particular challenges in saving and planning for retirement. Daunting student loans, a still-uncertain job market and competition for jobs among fellow graduates may all seem far more pressing than a retirement decades down the line, but that doesn’t mean post-career planning should be put to the wayside. Here’s what college students should know about retirement:

Start saving young. Saving early and capitalizing on years of compounding interest is key to retiring comfortably. “[The] most important thing to remember is that [students] will, in fact, retire someday,” says Mark Helm, a certified financial planner in Falls Church, Va. “They can either get one of the great forces of nature – compound interest – to work for them, or they can get started late and fight that beast for 30 years.”

One of the initial steps toward a successful retirement is one many students feel they’ve had enough of: education. Most students haven’t learned to deal with their finances properly, according to Robert Fragasso, CEO of Fragasso Financial Advisors in Pittsburgh, and that’s the first hurdle to a healthy retirement.


5 Things to Do for Your Retirement This Fall

Tuesday, September 10th, 2013

With the holidays around the corner, fall is the perfect time to work on your retirement plans before life gets too hectic.  Joe Udo from U.S. News provides five essential steps to take as the summer ends.

Summer is almost over, school is starting and 2013 will be over before you know it. If you put off retirement saving until later in the year, now is the time to get on the ball. Sure, you can contribute to an IRA up until April 15, but it’s better to just get it done this year. It’s easier to keep track of and you can start off with a clean slate in 2014. Here are five things you should do before the holidays roll around: (more…)

Why Women Lag Behind Men In Retirement Saving

Tuesday, September 10th, 2013

Believe it or not, women are not saving for retirement with as much vigor as men.  Marlene Satter of BenefitsPro explains why and how women may be able to change this. 

Everyone knows that almost no one is saving enough for retirement these days. What may be a surprise is that women trail men in retirement savings by a hefty margin, and are more likely to default on loans from retirement plans than men.

But why does this happen? And, perhaps more important, what can be done about it?

First, here are the facts, according a study from Aon Hewitt, which found that women not only save less — 6.9 percent compared to men’s 7.6 percent — and have average retirement balances of only $59,300 compared with men’s average balances of $100,000, but a third also fail to take full advantage of employer matches. Only a quarter of men fail to rake in as much as their employers will give.


3 Retirement Planning Tactics to Adopt Before You Hit 60

Tuesday, September 10th, 2013

As retirement edges closer, you don’t want to risk losing your standard of living.  Nicole Seghetti of DailyFinance explains three crucial strategies to make sure you benefit the most from your savings. 

You’re in your 50s. Retirement is now a visible light at the end of the tunnel. You’ve worked hard and saved hard. But that might not be enough.

Nearly half of Americans in their 50s are at risk of experiencing a decline in their standard of living after they retire. To help ensure you’re on the positive side of that statistic, implement these three retirement strategies before you hit the big 6-0.

1. Play catch Up

Wrinkles and gray hair are among the downsides of advancing age. But one benefit of getting older is being allowed to save more into your tax-advantaged accounts for retirement.

After your 50th birthday, you can make catch-up contributions to those retirement accounts: On top of the already-generous annual contribution limits ($17,500 for 401(k), 403(b), and 457 plans and $5,500 for IRAs for 2013) you can add an extra $6,500 every single year — between these accounts — until you retire. (more…)