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If you haven’t already received your 401(k) retirement statement, get ready for a bombshell in your mailbox.  Thanks to the fluctuating markets – along with the growing threat of inflation – balances for your retirement savings could be at an all-time low.  For those on the verge of retirement, it’s time to learn ways to control sticker shock – and how you can turn any panic into bona fide action.

Take A Deep Breath.  Like with most statements, sticker shock is a normal feeling.  Remember when you first took out that mortgage?  How about when you discovered how much interest you’ve been paying on those credit cards?  Don’t let sticker shock regarding your 401(k) retirement fund overwhelm you; remember, you have plenty of time to make up for any losses incurred.  On the bright side, markets recently have been looking up, with consumers showing more confidence in the economy (www.msn.com).  This means that your savings and investments have already been gaining on any losses since 2008.

Take Action. You can sit and bemoan that your 401(k) retirement fund isn’t up to par – or you can take action to ensure that you’ll have a comfortable retirement!  Visit your investment advisor to see how you can boost your numbers by the time you reach your retirement age.  Whether you need to heavily invest in an IRA (putting aside $500 a month for ten years can net you up to $300,000, assuming an 8% return) or move your money to safe investments, your investment advisor will help you come up with a better retirement plan.

Cut Expenses.  For those on the edge of retirement, a smaller fixed income will definitely necessitate cutting any extra expenses.  Instead of paying for your child’s college education or buying that second home, use that money to vigorously invest in the market.  After all, who says that you’ll stop investing once you reach your retirement age?

The bottom line is that you shouldn’t regard your 401(k) retirement statement as final.  Thanks to savvy investments that will last well into retirement – along with smart budget cuts – you’ll have a long and happy retirement to look forward to.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

America’s about to go broke.

Well, that’s what many financial experts are proclaiming anyways.  Thanks to the perfect storm of future inflation and the depleted funds of Social Security and Medicare, more people than ever are starting to break a little sweat when they think about the health of their retirement savings; some are even tempted to pull out altogether for a couple of years just to avoid the economic crisis.

However, just because the economic forecast is less-than-desirable doesn’t mean you should immediately fire your investment advisor and pull out of your 401(k) retirement fund; rather, the key is to be smart and use the time you have to counteract inflation and Social Security with savings of your own.

If you think that your savings and investments are safe from any future catastrophes, let’s take a look at some scary figures to get you in gear.  Economic experts have indicated that Medicare and Social Security deficits are likely to spring up starting in 2010 – just a few months from now.  With a likely deficit of almost $1.25 trillion soon upon us – and a depleting number of younger people who will be funding the baby boomer generation’s retirement – it’s no longer enough to count on your Social Security checks to see you through.  What’s more, inflation is set to skyrocket prices within the next decade; so if you’re on the brink of retirement, make sure your savings and investments are as healthy as possible.

Make an immediate appointment to talk with your investment advisor to assess where you are with regards to your retirement planning, and what you can do to get back on track.  While time might not be on your side if you’re of an older generation, those hitting 40-50 can still save aggressively with great results.  Apart from your 401(k) retirement fund, start contributing $500 - $1,000 a month for ten years to a brokerage IRA; assuming an 8% annual return rate, you can have anywhere between $268,002 and $550,000 by the time you retire at 65.

That’s a lot of cash to pad any unexpected bumps on the retirement road!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.

Between 2007 and 2009, many near-retirees have had their confidence blown to pieces as they’ve watched their 401(k) retirement funds stagger under the strengthening recession.  As they near their retirement age, many baby boomers are desperate for a sense of security, as there’s no guarantee that their retirement savings will still be there.  In fact, many financial experts agree that the 401(k) system has some serious flaws, many of which have only been revealed thanks to the credit crunch.

Near-retirees are in a delicate position as they near closer to their retirement age, as managing a 401(k) retirement fund quickly becomes a burden that many investors are not financially savvy enough for.  Even if a retiree works with a registered investment advisor, there’s no certainty that a downturn in the market won’t half a retiree’s precious savings within a year or less. 

The government is searching for a way to overhaul the 401(k) retirement system as economic conditions continue to bring its flaws to light.  One proposition that’s making its way around Congress is to set up universal retirement savings accounts that the government would make contributions to, with a low yet fixed rate of return.

While the federal government continues to seek answers that will help the 401(k) system in a future crisis, it’s still important to understand the risks and benefits of your own 401(k) retirement fund.  Many consumers are understandably afraid of making any more contributions to their retirement savings, given the poor marketing conditions – after all, the health of your portfolio tends to depend on the health of the stock market itself.  However, the 401(k) system is still performing as it should; i.e. it’s generating significant savings for future retirees.  Even if your 401(k) retirement fund experiences losses due to the poor conditions of the market, there should still be a significant bottom line – additionally, once the market recovers (as it’s bound to do), you can recoup losses by continuing to make safe investments with the help of an investment advisor. 

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Kenneth Himmler, Sr.