We’ve been warned now for many years that when the Baby Boomers begin to retire the Social Security system would soon begin to bend and sway under the avalanche of new retirees. Well, that day has just arrived. The very first official baby boomer as just applied for Social Security and the press is all over it. A women in New Jersey who was born on January 1, 1946 has just applied this past week, making her the first of her generation, those born from 1946-1964, to apply.

What does this mean for you? Well, probably not much really, but it makes for a quick story since we’ve been hearing about the dire warnings for years now. The Social Security Commissioner, Michael Astrue, has called this the beginning of the “silver tsunami.” This great wave of retirees may include up to 80 million individuals who make up the generation. By current measures, experts feel that by 2017 Social Security will pay out more than it takes in, and that if important steps are not taken soon, the fund will run out of money in 2041. It should be an interesting couple of decades. I would recommend that if you are planning on retiring anytime after about 2030 that you seriously consider getting your retirement plan into action immediately.

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I recently discussed the idea of whether it’s better to retire early or work later. I think this is ultimately a pretty personal decision and there won’t really be a right answer. Everyone wants different things and certainly looks at work and retirement from a different point of view. That said, there a great number of folks who simply want to retire early.

The first issue nowadays is when exactly is it considered an early retirement. Clearly people are able to work longer and Social Security keeps getting pushed back further and further. The traditional retirement age of 65 now seems a bit early itself these days. Still, it’s pretty clear that anything prior to age 50 would be considered early by most any standard. So what do you have to do to retire by age 50?

Moneycentral wrote an interesting piece that featured a few examples of what it takes to retire by age 50. It’s no great surprise that it comes down to the basics: planning early, saving as much as you can, and cutting spending whenever it’s possible. If you make some clearcut plans early and benefit with the power of compounding, you’ve made a great beginning. The saving and spending part really goes without saying.

The interesting dilemma, for Americans at least, is that most of what it takes to retire early goes counter to just about everything we see around us everyday. People are spending like crazy, desperately trying to keep up with the Jones’, and almost always spending more than is coming in. Many (most?) people would simply scoff at the lifestyles and spending habits that are required to retire like the people mentioned in the article.

The issue, of course, runs much deeper than I’ve made it out to be. The US is a debtor nation, and of that there is no doubt. This goes for the government at large as well as the individuals that make up the country. The question for many years has been just how long can it last. We always seem to be just one step ahead of a train wreck, and as long as everyone keeps spending and using credit the machine keeps stumbling along.

But what of these thrifty folks, wisely saving in order to retire a bit early? Are they ultimately going to get screwed when the whole house of cards comes tumbling down, brought down by the reckless abandon of the spendthrifts addicted to credit?

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Once upon a time, retirement was a fairly straightforward proposition. You landed a good job sometime in your 20s or 30s, worked your butt off for the same company for 30 or 40 years, then retired at age 65 with a nice pension and a comfortable Social Security check. Well, needless to say, those days are nothing but a vague dream now. Not only do people skip around from job to job, they regularly change careers a couple of times during their working life. Social Security is in such sad shape that many younger folks today don’t even think it will be around when they reach their 60s or 70s. Besides, as life spans increase, a lot of people are expecting to work much longer than our grandparents even could have expected.

The fact of the matter is that there are no easy answers and, in fact, really no right or wrong answers either. Different strokes for different folks and all that. I know many people expect to retire early, sometime in their 50s so that they can enjoy as much of their life as possible. In fact, we posted a quiz at one point a couple of years ago to help you determine your retirement readiness.

For those of you thinking of working a little longer into your life and beyond the traditional retirement age, there’s an interesting article here. The problem with trying to get or keep a job later in life, according to this article, is that “age discrimination appears to be alive and well in the U.S.” They might just try to force you out before you’re ready to leave.

Another interesting place to take a look to see how you stack up to other families looking to get their financial cards in order is over at CNNMoney, entitled Millionaires in the Making. This series looks through the finances of some families that “are making all the right moves. They save as much as possible in tax-advantaged accounts. They watch what they spend. And they have clearly defined financial goals.” You can compare your financial choices and see how you stack up.

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With all the changes happening today in the finance world, it is absolutely imperative that you get your financial house in order. This includes coming up with a solid and well-thought out financial plan. We have previously discussed assessing your risk profile as well as making a recession proof portfolio. These two points alone should drive home the point that financial planning is necessary.

A financial plan will, at its most basic level, consist of coming up with a comprehensive budget. You need to list all of your real and potential expenses and get them down on paper. If you’d like, you can make two columns: one listing your monthly budget and another listing the actual amount spent. You also need to list the sources of income.

Once you’ve established what you need to spend your money on, how much you have coming in, and how much of a difference there might be between the two, you’re ready to start making a financial plan. This planning phase should include both long and short-term time frames. You need to establish where you want to be in 10 years as well in 10 months.

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Writing a will is one of the most important things you will ever do. Yet, most people often fail to realize the importance of writing a will or ignore writing a will altogether. This is a big mistake.

A will is a legal document which, after you die, determines who will get your property, who will be the guardian/s of your children and who will manage your estate. Obviously, these are very important issues to get sorted since the outcomes reached in your will have a huge impact on your remaining family and offsprings.

If you do not write a will then state laws will determine who gets your property in a process called intestate succession. Most likely, your estate will be divided amongst your spose and children. Depending on the laws in your state, your property will be divided amongst your spouse and children. For those who are not married and do not have any children, than their property is dispensed to your next of kin. If, in the event that you do not have a next or kin, or the state is unable to track them down, than your property goes to the state.

So, it is obvious that writing a will is a necessity. But what is required?

The two most important things to include in a will is naming a guardian for your children, if yourself and your spose are unable or unwilling to act as guardian, and naming an executor for your will. The executor of your will is responsible for oversee the disbursement of your asset after your death as well as other important responsibilities (you can hire an attorney for this role).

There are two types of gifts that you will leave in your will. These are specific gifts and general gifts. Specific gifts (optional) are specific objects left to a specific person. General gifts are the leaving of a percentage of all of the remaining estate to principal heirs.

There are many options available to someone looking to write a will. You can do it yourself using a will kit or an online will service. Or, ofcoarse, you can go to an attorney to get your will done.

Once you have written your will it should be stored in a safe place.

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Imagine New Kent County, Virginia, a quiet rural area located between Richmond and Williamsburg Virginia, as a place for retirement. Read more »

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For a successful retirement investment plan to work in the stock market, some ‘reasonably sure’ assumptions would have to be made:

The retirement investment plan must take into consideration the one prevailing constant in any stock market security – risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD’s or Bonds are a start. The plan’s key factor would be to use the risk and uncertainty of a stock market security to its advantage. Read more »

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I am a native of Tidewater Virginia, which encompasses counties and towns in the Chesapeake Bay area from Virginia Beach, to Hampton, Newport News, Williamsburg and New Kent County. Even before I entered the real estate profession I watched the real estate market change and evolve over many decades. The Tidewater area, which includes Greater Williamsburg, is a pleasant location for retirement mainly because of the temperate climate and convenient location on the Eastern seaboard. Many military retirees who have served much of their career in the area simply opt to stay in Southeastern Virginia when they retire. Read more »

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Of the 75 million baby boomers nearing retirement today, many are debt ridden, severely unprepared for retirement, under funded and without a strategy. This is a very serious problem in a country that we can all remember used to assure most people of a retirement where you are taken care of financially.

We all know that social security alone is not the answer to this problem. Many baby boomers are on the cusp of retirement without the ability to pay their basic living expenses with the money they will have coming in after retirement.

This means most will be looking for jobs to compensate, or they will be looking for extensions of their current jobs past the time they had hoped to retire and enjoy their lives comfortably.

Out of embarrassment, many people answer their friends by saying they wouldn�t know what to do with themselves in retirement to justify why they are still working to make ends meet past retirement age.

If you are in the situation above or can picture that situation in the next 10 years, there is something you can do to change that financial prognosis.

First, look at your 401k. Calculate what you could expect at retirement if you could actively manage it up to 8% more in yearly compounded return.

Depending on when retirement is supposed to happen for you, what kind of nest egg does that leave you as opposed to depending on the return you are seeing now?

A very simple but powerful 401k strategy that works with any 401k plan involves two things.

1. Awareness
2. Use of an index fund

By awareness, I mean tracking the value of your 401k holdings on a weekly basis if possible. With this level of awareness you can easily spot a portfolio decline. If it approaches a predetermined amount (5% to no more than 10% suggested) you should switch into a money market. Or if you are well informed and have the ability to do so, switch into an index fund that is designed to profit from a decline (a Bear Fund).

The biggest advantage you will gain is NOT letting your account value sink to such dismal levels where a 40%, 50% or greater gain is required just to get back to even.

This alone could significantly increase the size of your 401k over time.

Is this the only strategy that can safely increase your return rate on your 401k?

Not at all. You just need to know what most people won�t tell you. Whatever your situation is right now, how much time you have left to make a change, and how much you calculate your need to be for a comfortable retirement, you cannot benefit from leaving things as they are.

Only education and strategic investment can net you the returns needed to have a safety net in place so that when you retire, you are not stuck in a constant monthly deficit spending cycle.

That�s not what retirement was supposed to be about. And it doesn�t have to be that way for you!

Article by C.C. Collins of RetirementInfo4u.com.

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This article is going to briefly touch on the main things a financial plan should accomplish. You don’t need a professional to help you draw up your own financial plan, but you might need professional advice and help to put some of your plans into action. Read more »

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Beware of estate planners charging little or nothing to draft your estate plan. They are likely earning a commission on the investment products they recommend - which could compromise the objectivity of their advice. And note that competent estate planners should offer a holistic approach to estate planning. That is, an objective and skillful adviser provides more than investment strategies or financial planning advice. Read more »

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How do I begin? Start by making a list of those you wish to remember in your Will. You will want to provide for your dependants first, but here is your chance to be creative. You can give a meaningful item to a favourite relative, honour a friend or arrange gifts to organizations and charities that you believe in and support. Read more »

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(ARA) - If you’ve delayed planning for retirement because it makes you feel a) old or b) financially inept, think again. With a little foresight, you could be out there enjoying life like other people — maybe even before you reach the so-called “retirement age.” Read more »

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Most people think that’s all retirement is about — having enough money to sit on the deck, play golf, and visit the grandkids. But that’s the old model — not today’s retirement. I believe you can revolutionize your retirement even if you can’t count on 80% of your current revenue when you stop working. (That’s the secret number according to many retirement experts.) Read more »

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