Moneysmartz Personal Finance Guide and Blog

Eight Millionaire

Mon, 05 May 2008 20:09:55 -0600

As the experts bemoan the low personal savings rate in the United States, hovering around zero percent, it's interesting and perhaps instructional to compute the modern day equivalent of a "millionaire."

Before determining the magic number, a base year and inflation index are needed. First, and somewhat arbitrarily, 1955 will be the base year, a time of growth and tranquility, with "millionaire" entering popular culture and representing affluence and the "good life." Next, the Consumer Price Index (CPI), a measure of the average change in prices over time in a market basket of goods and services, will be used as an index to convert 1955 dollars to 2008 dollars.

Using a CPI inflation calculator with 1955 as the base year and the CPI as the inflation index, the magic number is a little over $8 million.

Your reaction to this number may be a shrug of the shoulders, but if you are in 20's, 30's and even 40's, with diminished prospects for receiving Social Security, being a "millionaire" may not be enough to sustain you during your golden years.

The good news is that even if you don't reach $8 million, you have plenty of time to save.

Your Number

Wed, 16 Apr 2008 06:04:35 -0600

How much will you need to retire comfortably? It's a question being asked a lot these days by providers of retirement planning services. ING joins the fray with a tool consisting of six questions to calculate your "Your Number." Don't be surprised if your number is shockingly high, particularly if you are nearing retirement and don't have a start on your nest egg. Rest easy, the ING microsite offers links to professional advice. The power of the "Your Number" campaign is that after taking the quiz, it's hard to forget your number, and even more difficult to remain passive about saving for retirement.

Retire Stronger

Tue, 01 Apr 2008 08:54:12 -0600

Will you have enough savings to retire? How will your savings be managed? Will you place your savings in an annuity?

AIG Retirement's Retire Stronger site, with links to retirement planning, annuity, and mutual fund services and resources, will help answer these questions.

Use the Retire Stronger calculator to determine retirement savings. Don't forget to include Social Security and Pension income for a more accurate view of your needs.

For tips about adding years to your life, download the "live longer retire stronger Playbook."

The answers may be shocking, but knowing needed savings is a start to a stronger retirement.

Retirement Update

Fri, 28 Mar 2008 08:36:48 -0600

Are you prepared for retirement? The experts say no. The best response is to begin taking action today, so you can enjoy retirement tomorrow. The recently updated Moneysmartz Retirement category includes simple tools, powerful resources, and the gentle nudge you need to move forward in your retirement planning. This category now includes navigation tips for getting the most out of retirement planning resources on the web, including links to easy to use retirement savings calculators, financial portals, and online encyclopedias. If you are short on time, visit the Editor's Best Bets at the top of the category listings. Designed to save you time and get you moving, the Moneysmartz retirement planning page will help you prove the experts wrong.

Maximizing 401(k) Returns

Thu, 01 Feb 2007 11:23:07 -0600

Are you looking to maximize your 401(k) returns? A group from Wharton and Vanguard say a portfolio of balanced or lifecycle funds is the optimal "trading" strategy earning the highest risk-adjusted returns. According to the research, this relatively passive investment strategy is more favorable than costly high-turnover trading. Special thanks to the Workplace Prof Blog for the tip.

Retirement Planning Update

Thu, 09 Nov 2006 14:24:31 -0600

Category: Retirement Planning
Recent Update: November 9, 2006.
Category Overview

Since retirement is looming for the first of almost 78 million baby boomers, boomer or not, we'll all experience the wave of retirement information, products, and services through commercials, articles, blog posts, and more.

Before you tune out and take cover from the tide of stories about 401k plans, IRAs, estate planning, annuities, pensions, social security and Medicare, anytime, especially now, is a great time to check and see if your nest egg is safe and growing and your financial house is in order.

If you are just getting started planning for your retirement, then going to Google and searching under retirement will return about 12 million results, a tidal wave of information by any standard.

The recently updated Moneysmartz Retirement category offers a place for you to gently place your toe in the water and find relevant sources of information and reliable providers of services.

While on the Retirement category page, you'll find sources of information, like portals, online encyclopedias, and government websites, under featured listings. Under listings, just below featured listings, you'll find providers of services, like retirement plan managers. Editor picks are included in our custom search engine, letting you search the best financial sites.

Tips for Getting Started

Start with the big picture by visiting a financial portal or planning center like CNN Retirement, the Yahoo! Finance Retirement and Planning Center or Smart Money Retirement. Wikipedia introduces retirement .

Learn retirement planning lingo. Best bets include Investopedia's retirement terminology and AICPA's retirement literacy resources.

Determine how much you need to save for retirement and maintain your same lifestyle using the Choose to Save Ballpark Calculator in combination with FIRECalc.

Learn about the most important elements of your retirement savings and investing plan including Social Security, pensions, 401ks, IRAs and retirement plan taxes.

Get advice and help in managing your retirement plans. Fidelity and Vanguard are leaders.

Don't forget resources offered to specific groups including the AARP for Seniors and the Women's Institute for a Secure Retirement.

If you are truly lacking motivation, then ponder Five Questions for a Better Retirement.

Featured Custom Searches

Baby Boomer Retirement

Early Retirement

Retirement Benefits

Social Security

Retirement Investing

401k

IRAs

Retirement Annuities

Five Questions for a Better Retirement

Wed, 08 Nov 2006 00:50:33 -0600

With the experts telling us how unprepared we are for retirement, it's no surprise that many of us put off retirement planning for as long as possible. If the experts are right, then most Americans will have a day of reckoning when confronting a retirement with inadequate savings.

If you are willing to feel some pain today with the hope of a brighter retirement, then Fidelity's My Plan, requiring answers to five simple questions, is a relatively painless way to determine how much you'll need when you retire and what you need to do to get there.

The My Plan tool is intuitive and pleasant; delivering good and bad news with a smile while providing concrete steps to change your investment habits and begin preparing for a better retirement.

Baby Boomers and Real Estate

Fri, 20 Oct 2006 13:58:33 -0600

As the first of the baby boomers turn 60 and begin to seriously contemplate retirement, get ready for even more coverage about this cohort of 78 million Americans. The good news for everyone is that the information and advice should be helpful for all generations, particularly since so many pundits regularly voice concern about the sad state of retirement planning and savings in the United States.

An example of this media barrage, Newsweek's The Boomer Files, is a noteworthy boomer resource. The most recent installment focuses on real estate, with advice about where to retire, second homes, and real estate strategies such as reverse mortgages and mortgage payoffs.

This is serious stuff for boomers turning 60 and for the rest of us a glimpse into our future and opportunity to get ahead of the game.

Eons

Thu, 19 Oct 2006 09:28:17 -0600

Site Name: Eons
Site Description: It's inevitable that as the baby boomer generation reaches retirement age, more websites and blogs will be devoted to helping this cohort make the most of their time and financial resources. Eons, the MySpace for seniors and boomers, started by Monster.com founder Jeff Taylor, and seeded with significant venture capital funding, launched in July with the goal of reaching baby boomers and seniors. Eons is a 50+ media company inspiring a generation of boomers and seniors to live the biggest life possible. The Eons website features articles, information, and discussion on a range of topics important to boomers and seniors, including health, travel, relationships and money.
Personal Finance Category: Life Events>Retiring
Bottom Line: For boomers and seniors, Eons offers a wealth of relevant information and a place to interact with others. Eon's money section is a one-stop-shop of boomer and senior financial information and advice. Finally, a unique search engine, called cRANKy, provides links and blogs for the 50+ set.

Free Retirement Advice, Really (But for only two days)

Thu, 14 Sep 2006 09:39:25 -0600

Kiplinger's and the National Association of Personal Financial Advisors (NAPFA) are sponsoring Kiplinger's Jump-Start Your Retirement Plan Days. On Thursday, September 21, and Friday, October 6, from 9 a.m. to 6 p.m. eastern time, NAPFA members will be waiting to help with your retirement and financial-planning questions. What's the catch? There's just one, you'll need to dial 888-919-2345. The call and consultation are free.

My Next Phase

Sat, 25 Mar 2006 08:17:37 -0600

Site Name: My Next Phase
Description: Making an easy transition to retirement depends on both financial and non-financial factors. My Next Phase focuses on non-financial factors, providing "resources for guided self-reflection, exploration and planning to help people gain clarity about their futures." Fee-based services include an online assessment, coaching, and classes. Initial registration includes a 20-question assessment.
Features: Personality test assessing one's ability to make the transition to retirement and a significant resource section with link's to non-financial retirement resources.
Profile of Site Founders: After selling his family business, Michael S. Burnham, Jr. wondered about the next phase of his life. Burnham worked with his colleagues, J. Randolph Burnham, PhD and Eric Sundstrom, PhD, "to create a unique, personalized, non-financial retirement guidance tool for the tens of millions of people who will retire in the coming years."
Bottom Line: If you are making the transition to retirement, then a second-opinion may be just what the doctor ordered. My Next Phase offers a friendly helping hand from individuals experiencing a similar transition. At the minimum, a test run of the site will only take ten minutes of your time.

Retirement Annuities

Fri, 24 Mar 2006 00:02:01 -0600

With the first wave of baby boomers preparing for retirement, viable sources of life income, including annuities, will be near the top of retirement planning considerations.

Market leaders include Fidelity and Vanguard.

For a primer on annuities visit the CCH Financial Planning Toolkit or Fool.com's What's to like about Annuities.

For a list of retirement annuity products, services, and information, visit the recently updated Moneysmartz retirement annuities directory.