Archive for October 2008

Every week, it seems, a new story surfaces about a retiree whose golden years have been ruined by an investment scam. The stories are depressingly similar. They begin with people struggling to make ends meet. Then come telephone sales pitches, free-lunch seminars, friendly but pushy “advisors,” and promises of high returns coupled with absolute safety. The stories inevitably end with huge losses and shattered lives.

Yet you have to invest your retirement nest egg somewhere. And you want to get the best possible return on your investment, both to have enough to live on, and to ensure that it won’t be eaten up by withdrawals and inflation. How can you be sure that an investment “opportunity” isn’t really a scam? Follow these six guidelines
[Read more]

AAFR has repeatedly warned against Social Security "privatization" schemes, which are usually floated by Republicans. But some Democrats, too, want to get their hands on future retirees' money. How? By taxing, confiscating, or otherwise monkeying with the trillions of dollars currently invested in 401(k) plans.
[read more]

Only a minority of baby boomers will be able to enjoy a “traditional” retirement. Members of this fortunate group will simply quit working at age 65. Then, by drawing on Social Security, a corporate pension, and their own savings, they’ll be able to maintain a standard of living close to the one they’d enjoyed while working.

A much larger number, lacking significant savings or any income other than Social Security, will face a radically different fate. They’ll be forced to work for many more years, perhaps until they’re physically incapacitated, or will face poverty.

But what of those in the middle? Most boomers will have significant retirement income, but it won’t be enough to maintain their lifestyles. So they’ll have to earn extra money.

Flipping burgers, or repeating the phrase “Welcome to Wal-Mart” a thousand times per day, is neither financially nor personally rewarding. So what are some other options? Here, based on information from the U.S. Department of Labor, are the most promising jobs for boomer semi-retirement, i.e. part-time working.
[Read more]

Ask any financial advisor how to invest for retirement, and his or her answer will invariably include the term “asset allocation.” What, exactly, does that mean? And how can you apply it to your own situation? This article aims to answer these questions.
[Read more]

Many baby boomers nearing retirement face an unpleasant dilemma: they haven’t saved enough for retirement, yet don’t have that many years left within which to do so.

If you’re in this situation and are self-employed, you may want to check out the possibility of opening a SEP-IRA, or Simplified Employee Pension Individual Retirement Account.

Unlike regular IRAs, which have relatively low contribution limits of $5,000 or $6,000 per year, SEP-IRAs enable you to sock away as much as $45,000 annually. This can be particularly helpful for baby boomers who need to accumulate a lot in a relatively short amount of time.

Check out the Small Business Boomers Blog for more on this exceptional opportunity.