No Loans For Retirement!

Everyone is concerned about the market and their retirement.  Phased retirement is getting a boost from the sluggish economy, as many people have discovered they can’t afford to retire as soon as they’d hoped.  Against the backdrop of the hard economic times and losses that many investors have suffered in stock investments they are realizing that the only thing you can’t get a loan for is retirement.

We all know that there is a growing need in this country to take our retirements into our own hands if we want the funds necessary to have any quality of life upon retirement.

The problem is that most of us have no idea where to begin when it comes to financial retirement planning programs or investing. Some people feel intimidated by matters of finance, while others simply don’t feel comfortable with their knowledge regarding retirement planning. 

One area where people often get confused is on figuring out what to invest a 401(k) in.  At the moment, the evidence seems to suggest that many workers don’t have a clue about how to invest the money in their 401(k)s. Consider the average 401(k) participant whose account balance, according to the Employee Benefit Research Institute/Investment Company Institute, at year-end 2008 was $45,519, down from $65,454 at year-end 2007.  Workers aren’t aware that this nest egg will only produce an estimated $2,700 per year, or $225 per month, of income in retirement.

The sad news is that for most of our lives retirement was something that was taken care of if we put in an honest lifetime of work. However, the climate has changed and the retirement funds that many of us have labored to pay for the vast majority of our lives are slipping away.

Unsure about what to do about their shrinking nest egg, many people are simply leaving their quarterly statements unopened. When employees do make changes, research confirms that they often buy at the top, and sell at the bottom, based mainly on past performance.

The four common types of retirement planning programs include 401(K) plans, Keough Plans, IRAs (individual retirement accounts), and qualifying pension or profit sharing plans offered by corporations.

The problem is when you’re retired, all of that money, all of that growth, every dime is going to be taxed when it is pulled out through ordinary income tax, and that’s not so cool. You should be careful of your investments and guard them well as there are often hefty penalties involved when you take funds out of your retirement funds before you actually retire.

There are more traditional investment methods you may want to consider as well. Mutual funds and the stock market are great ways to invest your money, build a decent portfolio, and increase your net worth. This type of investing also carries some degree of risk and isn’t always considered financial retirement planning but more along the lines of simple financial planning.

What this last market, hopefully, taught all of us is that we can’t control performance at all, the only thing we have some control over is the volatility of what we’re investing in, and, that depends on your risk tolerance level.

When it comes to the world of finance, many of us are far from experts. We seek legal advice from attorneys, tax advice from accountants, and medical advice from doctors yet very few of us go to financial planners when planning our financial retirement.

The good news is that this need has not gone unnoticed and while we aren’t offering solutions for the funds that’s already invested or in salvaging what is left of the failing system, we are empowering people to take some control for their personal retirements by offering investment options and strategies that provide tax benefits along the way in order to reward you for your efforts.

At Annuitynews.net it is our mission to provide everyone the knowledge and understanding they need when making retirement decisions and decisions that affect you in your Senior Years.  Our resources will help you make these decisions. 

If at any time you have questions we are here to help.  AnnuityNews.net has partnered with Capital Managers, Inc. to work together for your financial security.  Our representatives at Capital Managers are here to help you with any questions you may have, and are committed to providing you with safe investments for your money.

To contact your local Capital Managers’ Representative please visit us online at: www.capitalmanagers.net