Posts Tagged ‘Retirement’

Can I Raid My Own Retirement Fund To Raise Cash For An Emergency?

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January 31st, 2012

I’m more than short and my car just died

I need money desperately. My small engineering practice, meaning me, has been having a hard time finding work. Then I was offered a construction supervision job in the next town. It means I have to be on the site about 3 times a week. The money is good and the sixty mile drive is easy. All went well for the first month or so. I watched the excavations get under way and the foundations went smoothly.

Breakdown

It was early on a Monday morning g when the car died on the freeway. I managed to get it off the road and called a tow service. In the workshop the mechanic finally stood up and said “Go and buy yourself a new car, this one is finished.” After all these months with little or no income I finally found work and now the car is dead? I couldn’t believe it. What will I use for money? I remembered an ad I had seen in a paper a week ago. “Money from your retirement fund”? At home I prayed that I hadn’t thrown that paper away. It was lying in the recycle bin waiting to be collected.

The article

I read ether article quickly: When in dire financial straights it is possible to turn to one’s retirement accounts as a source of emergency cash. The Financial Security Index, an annual survey by Bankrate.com, found that people in the survey who are employed full time reported dipping into their retirement account at some point in 2010. Early withdrawals indicate that the people who withdrew the money did not have much money put away in case of emergency.

Retirement

According to CNN, retirement is becoming a dream that not many people believe they will be able to realize. A survey by the American Institute of CPA’s revealed that nearly 40 percent of working people surveyed believed they would not be able to afford to retire. Almost 56 percent said that they couldn’t afford retirement savings because food and gas costs were too high, and 55 percent had no idea how much would be necessary to save to retire. As a result of less confidence in the ability to retire, the younger set in the workforce are more apt to stay with an employer who offers a top shelf pension plan, according to Daily Finance. A Towers Watson survey revealed that 43 percent of respondents believed it was a great reason to stay at a job, up from 28 percent in 2009.

Retirement fund

My retirement fund is looking very healthy. I have been contributing for years and no matter what, I always managed to pay the premiums. Suddenly I’m faced with no money and I read in the papers that retirement is becoming a dream anyway. I need money now so I can keep working to the point where I can make my own decision about retirement. What I need is a car so I can make money. I’m off to the bank to visit my retirement fund.

Tags: Emergency cash, Retirement, Retirement fund
Posted in Employment, Finance, Retirement | No Comments »

Retirement: Plan B

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January 9th, 2012

The good news is that we are living longer.

This means that we have many extra years to enjoy ourselves with our friends and family, with our food, drink and other earthly pleasures. As long as we keep popping all the anti-cholesterol, anti-sugar and anti-high blood pressure pills we keep going. We do all the blood tests every year, the doctor never gets out of his seat behind the desk, he simply analyzes the results, prescribes the right pills and we keep going.

The bad news

We are outliving our money. This means that our pensions, retirement plans and nest-eggs are all drying up while we still need them. So the race is on. Will we outlive our pension and end up poor and the miserable objects of state care, or will the pension outlive us and allow us to spend a respectable and pleasant old age in a retirement home? 0Medical breakthroughs and healthier lifestyles are expanding our life expectancies and you simply can’t count on departing the way our parents and grandparents did.

The working retired

As a result, some retirees are returning to work, others are selling everything, buying a mobile home and roaming around the country. One friend exchanged his expensive apartment for a fancy yacht and is permanently moored in a Mediterranean port. He never stops talking about the wine, the hot food and the hot women.

Retiring

We still get the State old age pension or monthly social security check but they buy less every month and if you venture outside the US you have to convert the US dollars into another currency. The result is frightening. Now that you know you are faced with a longer retirement, you have two choices:

Put off your retirement as long as you can.
Start planning your retirement more carefully and long before you retire.

As a final fall-back situation, there are always reverse mortgages or viaticals after your pockets run dry in retirement.

Retirement planning

We are surrounded by giant conspiracies which are constantly trying to erode our nest egg, and the biggest ‘retirement killer’ is our simple inability to maximize our retirement savings. Retirement planning isn’t a full-time job, but a full-time job is what you may face if you fail to plan your retirement. Do you know how much you’ll need for a comfortable retirement? Have you lined up your future income and expenses to see if you’re sitting pretty or spooning down cat food? You’re not alone if you’re shaking your head. Last year’s 18th annual Retirement Confidence Survey indicated that less than half of American workers have taken the time to make basic retirement calculations.

Retirement services

There are retirement services which can help with tax planning and retirement account trends. They can suggest portfolios to help retirees achieve ideal asset-allocation strategies. Don’t wait until it’s too late! Seize control of your future by grabbing the wheel while you still can. No one will help you when you are sleeping on a bench in the park.

Tags: Retirement
Posted in Assurance / Insurance, Business, Economy, Employment, Finance, Money, Personal / Internet, Retirement | No Comments »

Me and My Financial Adviser

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December 20th, 2011

A third of adults say that running out of money is their top retirement concern

I am contemplating retirement. I have done my homework ten times over until I am satisfied that I can afford to retire. I have all my numbers on half a dozen spreadsheets so I went to the bank, with the spreadsheets, and asked to see the financial adviser. I would be totally hysterical if I retired only to find that I am still here living the life of Riley but my money has gone, spent or stolen and leaving me high and dry. I managed to rebuild my retirement nest egg after a couple of disastrous years on the stock exchange and I’d like to know that someone more or at least as capable as me will be looking after things when I retire.

Navigating between the scams

There are major investment scams out there. Sen. Charles Schumer, D-N.Y., has said that Bernie Madoff’s Ponzi scheme is an extreme example of the many scams lurking out there that can trap unsuspecting investors. The Securities and Exchange Commission filed a record 735 enforcement actions in the 12 months ended Sept. 30.

Addressing the risk of outliving my money

I’m old, I grew up in different times and I don’t always understand what’s going on now. I find that many products today are very complex and some brokers can’t even explain them very well. "If you don’t understand how it makes money for you, what fees and commissions or costs you have to pay, then you shouldn’t be investing in that particular investment," says a financial adviser.

What I’m going to do

My first call will be at BrokerCheck. This will allow me to search for brokers and their firms that are currently or previously registered with FINRA to learn about their education, where they have worked previously and whether they have a history of disciplinary actions or complaints. I may also call the state securities regulator for more information.

Interviews and a list of questions

I will interview advisers and ask them all my questions. We will be talking about my money, all the money I have and the money I expect to last longer than me. I am not hesitant or shy about asking questions, even the stupid ones.

Questions

I will also ask the financial planner:

What experience do you have?
What are your qualifications?
What licenses do you have?
What products and services do you recommend?
Will you be the only person working with me?
How are you compensated? For example: Do you charge a flat hourly rate (or "à la carte" rate) for services? Is the fee a percentage of assets under management?
Do you receive a commission or a referral fee paid by the product or service providers that you sell?
What organizations are you and your firm regulated by?
Will you provide a written agreement that details the services and fees that will be provided?

Tags: Financial advisers, Financial planners, Investments, Retirement
Posted in Economy, Employment, Finance, Personal / Internet, Retirement | No Comments »

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