In the last decade, we have been forced to assume more and more responsibility for our comfortable retirement as employers have increasingly switched from retirement plans with defined benefits to defined contribution retirement plans. Most of these plans are different than government pensions – they lack cost-of-living adjustments (COLAS). Under these plans, you- not your employer- are solely responsible for ensuring that your investments will adequately fund your retirement.
With the average retirement now spanning 20 to 30 years, the major concern for most investors is the danger of outliving one’s assets. Taxes have increased and investors are concerned about reduced earnings on their future income. Increased taxes have affected Social Security recipients; 85% of Social Security benefits are currently taxed for retirees with joint incomes of $44,000 or more and individual incomes of $34,000 or more.
The most-asked questions at these seminars at libraries and book stores are from retirees and pre-retirees. Many are exasperated by the effects of inflation but are too risk-averse to put a major part of their portfolios in investments that normally grow faster than the inflation rate. Playing it too safe by investing in CDs is threatening their purchasing power.
Many brochures printed by banks, mutual fund companies and brokerage firms are entitled “How Can I Afford Retirement?” or “Are You Prepared To Live To Age 85, 90 or 95?” “Are You Saving Enough Or Investing Enough For Retirement?” “Will You Be Able To Afford To Send Your Children To The College Of Their Choice?” We recent ad by a major brokerage fm caught my attention with its dramatic message. “Imagine the cost of putting 15 kids through an Ivy League college and you'll have some idea of what you’ll need for a comfortable retirement.” By taking advantage of 401(k) and other employee-sponsored plans, you reduce your taxable income by the mount you invest via payroll deductions.
If you are self-employed, take advantage of the benefits of establishing a qualified retirement plan such as an Individual Retirement Account (IRA), Simplified Employee Pension Plan (SEP) or a Keogh Plan. (Question 55 to 70)
With the average retirement now spanning 20 to 30 years, the major concern for most investors is the danger of outliving one’s assets. Taxes have increased and investors are concerned about reduced earnings on their future income. Increased taxes have affected Social Security recipients; 85% of Social Security benefits are currently taxed for retirees with joint incomes of $44,000 or more and individual incomes of $34,000 or more.
The most-asked questions at these seminars at libraries and book stores are from retirees and pre-retirees. Many are exasperated by the effects of inflation but are too risk-averse to put a major part of their portfolios in investments that normally grow faster than the inflation rate. Playing it too safe by investing in CDs is threatening their purchasing power.
Many brochures printed by banks, mutual fund companies and brokerage firms are entitled “How Can I Afford Retirement?” or “Are You Prepared To Live To Age 85, 90 or 95?” “Are You Saving Enough Or Investing Enough For Retirement?” “Will You Be Able To Afford To Send Your Children To The College Of Their Choice?” We recent ad by a major brokerage fm caught my attention with its dramatic message. “Imagine the cost of putting 15 kids through an Ivy League college and you'll have some idea of what you’ll need for a comfortable retirement.” By taking advantage of 401(k) and other employee-sponsored plans, you reduce your taxable income by the mount you invest via payroll deductions.
If you are self-employed, take advantage of the benefits of establishing a qualified retirement plan such as an Individual Retirement Account (IRA), Simplified Employee Pension Plan (SEP) or a Keogh Plan. (Question 55 to 70)
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