Stock Market Instability Can Help Pension Plan

Workers spooked by inflation, rising unemployment and Wall Street jitters could be forgiven for keeping money in their pockets rather than putting it away for retirement in their pension plan. Still, many continue to contribute to their pension plan accounts. And they’re likely snapping up bargains in the process.

In a review of the more than 2,220 defined-contribution pension plans it oversees, The Vanguard Group found that the number of workers adding money to vehicles like 401(k)s remained unchanged last year as did the amount they added. The average worker contribution of 7.3 percent was essentially flat with levels seen in 2000.

Steve Utkus, director of Vanguard’s Center for Retirement Research, said it is encouraging that participation and contribution rates remained steady in 2007. Read more

Retirement Calculator from Money Magazine Helps You Get to 100

Barbara Walters has me on edge.

It’s not the level of detail, complete with famous bedmates, in her best-selling memoir. It’s her recent ABC special: Live to Be 150…Can You Do It?

“No,” I harrumphed. “And by the way, I wouldn’t want to.” Turns out I’m not alone; according to an ABC News poll, nearly three-quarters of Americans aren’t at all sure they want to hit the triple digits.

Great medical minds, however, have other ideas. You can hardly open the newspaper without seeing a story about some new Grim Reaper-repelling discovery.

To cite just one piece of research: In June a study funded by the National Institutes of Health and conducted by the Autonomous University of Madrid found that drinking two to three cups of coffee a day cut women’s chances of dying from heart disease by 25%. Read more

Best Retirement Communities Load Up on Amenities

They take kayaking trips or go hang-gliding with their friends, learn conversational Spanish in a state-of-the-art facility or boogie the evening away to disco-era hits.
Advertisement

If you think this is summer camp for teenagers, or events at a local college, think again.

These options and countless others are emerging in active adult living communities across the U.S.

As 78 million baby boomers approach retirement, developers of active adult living communities are trying to keep up with trends among activity-seeking residents. More seniors are choosing to retire in places outside Florida, Arizona and the rest of the Sun Belt, and adult living communities have incorporated new features such as home offices to satisfy those who are still working or have become technologically savvy.

According to an AARP study, the “common myth” that a majority of the 60-and-over population in the U.S. wants to move to warmer climates as they age no longer applies. Read more

Retire Early with Careful Planning, Good Advice

It’s no wonder that people in their mid-50s and early sixties are streaming into the offices of financial planners for advice: Many are facing the prospect of early retirement due to a buyout or layoff in an economy that continues shedding jobs.

In the case of many baby boomers, early retirement is the goal.

It doesn’t have to be painful, but it is essential to strategize so there is enough income to maintain a decent lifestyle for at least a few decades, say two local financial advisers.

Examining how one’s retirement income is invested should be one of the first orders of business, and for most people, that means looking over IRAs to make sure funds are distributed in a way that jibes with their tolerance for risk. Read more

The Case AGAINST Early Retirement

The job market is looking pretty grim lately. More than 438,000 jobs have been lost already this year, according to the Bureau of Labor Statistics, and companies across a range of industries, from financial services to retail, have been extending early-retirement packages in an effort to slash work forces.

If you’re offered such a buyout, you’ll face one of the most important financial decisions of your working life: stay on the job or take the money and run.
Strictly by the numbers

The enticements you’ll get to retire early likely won’t offset the drawbacks of spending fewer years at the office. To understand why, you must first understand what you’re being offered. Read more