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.

What’s in your retirement savings plan?  Though you most likely have income from just one source now, which would be your job, most Americans will have the big “three” retirement income sources after they stop working – Social Security, 401(k) or IRA, and company pension.  However, you are not limited to just these sources of income after you retire from full-time work. 

Many people, when they start planning for retirement, simply begin putting away small sums of money in an interest-bearing retirement account.  However, there are other unique ways you can invest in your retirement.  Here are five that could result in additional streams of retirement income.

1. Annuities

Invest in an annuity, and you can see a guaranteed stream of income for a guaranteed amount of time.  Annuities can be purchased by a lump sum or by investing regular amounts for a period of time.  Larger insurance companies are usually the main sources for obtaining an annuity.

Once you agree to buy into an annuity, the insurance company invests your money and is able to pay you more than you paid over time.  Annuity payments can begin right away or deferred until a certain time, such as retirement.  If ever you are lucky to come into a large amount of money, say by an inheritance, putting all or most of it into an annuity can pay off for your retirement years.

2. Investment property

Want to be a landlord?  There is money to be made by purchasing income-generating property.  Investment properties can be great for those who are still 20 to 30 years from retirement.  You could purchase just one investment property as a rental home, have tenants pay rent that goes toward paying off your mortgage, and by 25 to 30 years, your investment property is paid for in full by your tenants.  Any rental income you have after retirement all goes into your pocket.

Or, another strategy may be to purchase an investment property, pay off the mortgage through rental income for 25 or 30 years, and then sell the home after it has gained much appreciation.  Invest the gains in an annuity as mentioned above, and you’ll have a great stream of retirement income.

3. Stocks

Don’t forget about investing in non-retirement savings.  Investing in growing companies, either publically traded or private corporations, can provide a good regular source of income in the form of dividends.  Though an individual dividend is usually just pennies, if you have purchased thousands of shares in diverse companies over the years, the dividends can add up to become a nice income stream.

4. Royalties

You could also earn royalties from intellectual property in your retirement years.  Write a non-fiction book.  Compose a song.  Any creative endeavor where people buy a license to use your creative invention can result in regular royalty retirement income.

5. Part-time work

Most people look forward to retirement so they don’t have to work at all in their golden years.  However, many folks realize after retirement that they are bored and want to do something with a purpose and that still makes them valuable.  Part-time work can give you a way to keep busy and follow your hobbies and provides another stream of retirement income.

Retirement doesn’t have to be limited to just the usual sources of income.  Be creative and find income streams from sources that are not always traditional.  Don’t forget to talk with a qualified retirement wealth specialist at www.kenhimmler.com or retirement asset management company at www.iamllc.biz to get the best advice you need on planning your retirement income sources.

Authored by Kenneth Himmler, Sr.