Blog

Saving for a Secure Retirement

The following post comes from the America Saves Blog. Follow them on Twitter and Facebook.

May 22, 2013
By Maliz Beams
CEO ING U.S. Retirement

Tweet

If you’re like most people today, you and your family face a number of significant financial obligations — food and household expenses, credit card payments, healthcare costs and college tuition bills, just to name a few.  With so many competing priorities in our lives, it can be easy to lose sight of another major financial commitment down the road — your retirement.

To make matters more challenging, the responsibility of funding retirement is ours more than ever before.  No matter what stage in your career, developing a holistic approach to planning and saving — both in and out of the workplace — and seeking advice, education and guidance are critical to reaching one’s retirement goals.

An ING Retirement Research Institute study found that many Americans are taking steps to reach a more positive financial future — well over half (57%) acknowledged that saving for retirement is their most important long-term financial goal and nearly three-quarters (72%) confirmed they were receiving the full employer match in their workplace retirement plan.  This is good news!

But we need to be doing much more.  Our research also showed that a top concern for more than three-quarters (77%) of retirement plan investors is their financial security once they leave the workforce.  By taking steps early on that help you save easily and automatically, you can be in a better position to retire with the financial security you expect and deserve.  Here are a few things to consider:

Read more: Saving for a Secure Retirement

How to Prepare for Getting Caught in the Middle of the “Sandwich”

by Lila Quintiliani, AFC®
Military Saves Assistant Coordinator
Communication & Outreach

Tweet

Sandwich generation.  It’s the term used to describe the group of Americans who have a parent aged 65 or older while still raising or financially supporting a child.  According to a recent Pew Research study, this population is on the rise – nearly half of Americans fall into this group, and 1 in 7 Americans is actually providing financial support to both a parent and a child.

While the active duty military population is fairly young (according to Military OneSource, the average age of the active duty force is 28.6), military families still need to be concerned about being stuck in the “middle” of the sandwich – raising children while acting as caregivers for an aging parent.  Here are some steps that can be taken to prepare for the time when a servicemember becomes a caretaker to multiple generations.

Have “the Talk”

Children, even adult children, may not be accustomed to talking to parents about the state of their finances.  While it may be slightly uncomfortable to bring up the topic at first, it’s better to know the facts about their retirement plans rather than speculate.

·    Do they have a retirement plan and savings or are they depending on social security?
·    Do they have long-term health care insurance?
·    Do they have an estate plan in place? It doesn’t have to be a complicated legal document; it can even be a simple letter with instructions for where their bank accounts are and what insurance policies they hold.
·    Have they signed paperwork giving someone authority to act on their behalf if they are disabled or incapacitated?

Read more: How to Prepare for Getting Caught in the Middle of the "Sandwich"

 

Leaving the Military: Why a Cash Stash is So Important

By Scott E. Halliwell, CFP®, ChFC®, CLU®, CWS®
USAA

Tweet

Change brings stress; and leaving the military brings a truckload of it to your doorstep. Not only is the transition a major life event, it's also a major financial event. Picture this:

• You just decided to quit your job.

• You haven't interviewed in years, but now you have to get someone to hire you.

• You eventually land a new job, but it's halfway across the country.

• You uproot your family and move to a new town near your new job.

• You find a new place to live. But at first, it just doesn't feel like home.

• Oh, and while all of this is going on, the regular day-to-day challenges of life don't get put on hold. So, just for grins, add something more to the stress pile: your transmission locks up.

Now quickly, go back through that list. But this time, imagine the points as scenes in a movie starring you and your family — a movie titled, "Leaving the Military: Why a Cash Stash is So Important".

If you're planning to leave the military, the six bullet points listed above could very likely describe your short-term reality. To reduce the stress, do these two things: first, have an action plan; second, have a lot of money in the bank.

Read more: Leaving the Military: Why a Cash Stash is So Important

 

Pay Off Debt or Save for Retirement?

The following post comes from the America Saves Blog. Follow them on Twitter and Facebook.

May 15, 2013
By Barb Miller
Bankruptcy Specialist at LSS Financial Counseling

Tweet

Wow … what a loaded question! We always hear how crucial it is to get rid of toxic debt, especially credit cards with double digit interest rates. Therefore, people generally assume that paying off debt rather than investing for retirement is the correct answer. In my opinion, this is not really an either/or proposition. The best approach?  Do both!

Where you need to be:

Before getting into why it is important to both save for retirement and pay down debt, we have to start from a common point. To be able to move forward financially, it is essential that you are 1) using a budget to control your spending, and 2) have extra income for both debt repayment and your future retirement.

If you are spending more than you earn each month (or have no idea how much you spend), it is time to deal with the basics. This means learning to live within your means. The brutal truth is if you don’t control your spending, you will likely continue to abuse credit, and never have money tucked away for emergencies or retirement.

 

Read more: Pay Off Debt or Save for Retirement?