Two Things That Can Heavily Affect Your Retirement Planning
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.
