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Old 04-07-2004, 08:15 AM
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jeffrey jeffrey is offline
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Default Tips For Saving on Investments & Retirement

1. Be aware of mutual fund brokers that make promises a specific monetary return. It is impossible to guarantee investment returns so anyone who makes these promises is likely out to scam you.

2. Don't assume you'll spend less in retirement than you do now. Research indicates that people spend as much in retirement as they do before retirement. Set your investment goals so that your retirement income matches your current income.

3. Don't forget the simple rule that high investment returns equate to high risks. In most cases, the higher the interest rate offered, the higher the risk of losing a part, or all, of your monetary investment.

4. Don't forget to calculate inflation when considering where to place your long term savings. Inflation has historically reduced the value of your money by 3.2% each year meaning a yield below that is actually losing money.

5. For long term savings, stocks have historically outperformed all other investments with an average annual gain over 10% since 1926. Bonds, the next best performing asset over that period, returned only 5.3%. Over the short term, however, they can be hazardous. In 1987 stocks lost 22.6% in one day.

6. If you are considering hiring a financial planner, make sure they have earned either a Certified Financial Planner or Personal Financial Specialist certification. This is important because virtually anyone can claim to be a "financial planner."

7. If you have never done so, or have not done so in the past year, take a full day to list your financial goals, along with a realistic plan for achieving them. Reaching your financial goals is much easier when you have a plan to follow and your goals are clearly defined.

8. If you plan to sell an appreciated asset such as stock to help pay for your children's college expenses, sell the asset in the year prior to applying for financial aid. Doing so will keep any capital gain from being included in your current income. If you sell it the same year you apply for financial aid, you will look more prosperous than you really are.




9. Put your pocket change at the end of each day in a jar. If you put away a $1 a day and invest it tax free (Roth IRA) and get a 10% annual return, that $1 a day will be worth over $67,000 in 30 years. Not bad for pocket change.

10. When investing in stocks, seriously consider an index fund. Actively managed funds usually have higher fees and most aren't able to consistently outperform the market by enough to cover these higher costs when compared to an index fund.

11. When planning your long term savings, don't sacrifice your retirement savings for saving for college. When your children reach college age, they will have a wider variety of money sources for their expenses than you will have after you retire.

12. When saving for retirement, don't assume you'll spend less than you do now. Research indicates that people spend as much in retirement as they do before retirement. Set your investment goals so that your retirement income matches your current income.

13. When seeking financial advice from a financial planner, seriously consider a fee-only planner. These financial planners don't receive commissions on any investments that they recommend which helps to ensure the advice you get is entirely in your best interest and not in the planner's.

14. When you have your savings in low interest paying accounts, you may actually be losing your savings even when it appears you are gaining. The yearly inflation rate for the cost of goods and services can easily outpace what banks pay in interest-bearing accounts.
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Old 06-11-2008, 03:05 AM
ScrimpAndSave ScrimpAndSave is offline
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Great tips...thanks!
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Old 11-04-2008, 11:23 PM
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Great information! asking for a financial advisor would also a big help...
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Old 11-25-2008, 12:58 AM
retiredebt1 retiredebt1 is offline
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Default Re: Tips For Saving on Investments & Retirement

If you are like most people, retirement is something that is easy to put off thinking about until tomorrow. But tomorrow can come sooner than we expect. While you can’t control the passage of time, you can take action when it comes to planning for the future. We’ve developed these tips to help you take a more informed, active role in building your retirement savings.
Start early,
Social Security will not be enough
Financial experts say a person may need as much as 80% of his/her final year’s working salary each year during retirement to maintain his/her lifestyle. But Social Security only accounts for about 40% of the average retiree’s income.
Participate in your employer’s retirement plan
Identify your goals and develop a plan
Make sure you'll reach your goal
Save before you pay taxes
Save in a tax-deferred account
Stay invested
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Old 12-04-2008, 04:26 AM
harrybusiness harrybusiness is offline
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Default Best home based business

I'm thankful to you for providing great money saving tips that helps many of the people. In the same manner it has important methods of gaining profits in business and in real life.
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Old 12-04-2008, 05:48 AM
Broken Arrow Broken Arrow is offline
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These are good tips, and was written back in 2004!
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Old 12-13-2008, 12:24 AM
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Rethinking Retirement in Crisis Times
Take a look at these basic tips that may help to make your retirement years more enjoyable, less stressful, and with less financial burden.

Start Saving
Sure, it's obvious. Nevertheless, too few workers are setting aside money for their golden years. If you're fortunate enough to receive a raise or bonus in your job, perhaps you can set aside all or part of your extra earnings, or a regular portion of your paycheck. But even if you don't have extra cash to stow away, small changes in your daily life can reap big rewards.

Maximize 401(k) Contributions
In 2008, individuals can stash up to $15,500 of pretax earnings in a 401(k). For those 50 or older by year's end, the limit is $20,500. Experts say they're a good choice for employees with lower salaries or anyone else who expects to pay higher taxes in the future.

Make IRA Contributions
With a traditional IRA, earnings grow tax-deferred, meaning you pay the folks at the IRS only when they're taken out, usually at retirement. Plus, depending on your income, you may also qualify to claim tax deductions for any contributions you made to the plan.

Don't Forget a Nonworking Spouse
A nonworking spouse is also eligible for an IRA and can add to your retirement bundle. Opening an IRA for a nonworking spouse is good tax planning as well as retirement planning.

Do Your Financial Housekeeping
Reallocating your assets to stay on track may seem daunting. But if you don't tend to this financial housekeeping at least once a year, retirement funds may inevitably grow out of whack. You'll want to make sure that you own the right mix of stocks, bonds, mutual funds, cash and other assets to help meet your retirement goals

Consider Target-Date Funds
Target-date funds also help employees maintain a diversified mix of assets because they automatically shuffle and remix their holdings to reflect age and retirement target date.

Get Professional Advice
Seek help carefully. You want to hire someone who's trained in various retirement issues, not just a salesperson who's going to try to sell you a certain product, be it investments, life insurance or other assets.

Make a Withdrawal Plan
If you're hovering near that magic retirement age, it's time to start planning how you'll withdraw retirement assets. There are a variety of methods to help you retain as much as possible and a trained professional can guide you.

Update Retirement Plan Documents
Spouses and nonspouse heirs who inherit a 401(k) plan can roll them into their own IRA without paying income tax. These transfers allow nonspouse heirs to stretch out distributions of assets they inherit over their lifetimes. Keep your beneficiary forms and other estate-planning documents.

Get Healthy
You may not realize it, but your physical well-being may be one of the most significant factors affecting your financial status in later years. Health and health care-related expenses are going to play an increasingly important role in retirement savings.

I hope these tips will of of use to many......

Regards
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Old 12-17-2008, 03:32 AM
harrybusiness harrybusiness is offline
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Default Re: Tips for Saving on Investments & Retirement

Your tips gives an idea to save something in the present and utilize it for the future. For every one there should be some thoughts regarding future planning .
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