SayEducate

Over the past few years, millions of Americans have come to the realization that their retirement plans may have to change. With pensions and retirement accounts decimated, housing values falling, and job loss on the increase, a long planned retirement date may have to be pushed back.

Retirement Delayed

In the September 22, 2008 issue of “The Wall Street Journal,” Helga Cuthbert, a certified financial planner noted, “We’ll see more and more people postpone their retirement dates. Their expectations about the future and the kinds of returns they would get were simply unrealistic.” With nest eggs reduced and an economic recovery slowly taking place, Cuthbert’s assessment appears to be holding true nearly one and half years later.

But not every agrees with that point of view. Bridget Burgess, CFP, president of Symetra Investment Services and board chair of the Puget Sound Financial Planning Association in the state of Washington said, “While there are signs of economic recovery in the region, sticking to a plan, managing personal expenses and saving for retirement should be an ongoing priority, as market conditions can change quickly.”

Five Steps

Burgess added that there five steps every investor can take to ensure that their retirement plans stay on track, even when faced with financial challenges:

1. Create a plan. Begin by calculating what income you will need in retirement. Experts say that many retirees require at least 80 percent of their pre-retirement income to live comfortably. Estimate basic living costs and other expenses that may come into play, such as traveling, a new hobby, increased medical bills and, of course, inflation. Also estimate potential income from rental properties, other investments, inheritances, pensions, etc., and incorporate these estimates into your financial plan.

2. Manage and reduce your expenses now, before retirement. To help offset future costs, manage expenses before retiring. One of the best ways is to cut down credit-card debt. The average household’s outstanding credit-card debt was $10,679 at the end of 2008.2 When regular paychecks come to an end, large credit card bills can be a real burden.

3. Diversify your investment portfolio. After you decide how much you need in retirement and you’ve reduced expenses, develop a financial goal and begin investing now. As we’ve seen in the recent economic downturn, investing in securities incurs market risk. The best way to help cushion a portfolio against market volatility is to diversify – to divide your money among different types of investments, also known as asset allocation. Allocating assets among various investments and across investment styles is important because each investment responds differently to economic events and other market conditions. Diversification does not, however, assure a profit or prevent a loss.

4. Continually evaluate your investments. Changes in family, health and job benefits can affect how much income you will need for retirement. Make the most of the financial plan by reviewing investments regularly. Ensure they are still appropriate for your goals, timeline and risk tolerance. These life events also trigger the need for an insurance review to make sure your life insurance coverage is in line with changing needs.

5. Consider creating a guaranteed income stream during retirement. Creating a stream of guaranteed income, such as an income annuity, can fulfill income needs during retirement, especially if you don’t have a pension. People are living longer, and the prospect of outliving your lifetime supply of money is very real. Using a portion of your retirement portfolio for guaranteed income will help ensure that your money lasts as long as you do. This guaranteed income is based on the claims-paying ability of the underlying insurance company sponsoring the annuity.

Working Retirement

But even as people plan their retirement date, many are redefining what retirement means. In an October 6, 2009 article published to “Bankrate.com,” 75 percent of Americans surveyed said that they expect to work past their retirement date. 39 percent said that they plan to work because they enjoy work while almost one-third plan to work because they expect that they will need the money.

Photo Credit: Walter Groesel

Tags: Bankrate.com, Bridget Burgess, investments, portfolio, Puget Sound Financial Planning Association, Retirement, Symetra Investment Services, The Wall Street Journal

There are major holidays and then there are Hallmark holidays, the latter falling under the category of less important celebrations which are still oftentimes acknowledged through the sending of a greeting card or small gift. Many men look at Valentine’s Day as being a day of lesser significance while most women seem to rank the holiday up there with Christmas and their birthday.

Guys, you lose on this one: make sure that you remember your sweetheart this Sunday. Or else.

St. Valentine’s Day

Valentine’s Day is not what most people think that it is. At least when it comes to being seen in its original context. Back in the 5th century the Roman Catholic pope, Gelasius I, recognized the service of a martyr named Valentine, elevating him to sainthood. Thus, St. Valentine’s Day is the actual name of the holiday even though it has come to represent love between a man and a woman.

As we move deeper into the 21st century, Valentine’s Day is likely to continue to evolve. In recent years people sent e-cards, but that has largely fell into disfavor because of the possibility of viruses attached. Instead, if you want to send a viral message you do that by visiting their Facebook account. Why chance receiving something that can wreck your computer?

Fun Facts

With each Valentine’s Day holiday, comes word of some tradition or idea worth noting. Yes, chocolates, roses, and a funny card are usually welcome gifts, but consider what some people are planning to give this year and where you can find them:

Red Heart USB Drive – she loves her computer, so why not give her a fun, memory device? (www.coolcubetoys.com)

Chocolate Lips – For a lip smacking good time, available in pink or purple foils. (candywarehouse.com)

Lovopoly – A romantic version of the classic Monopoly game, for the lover in you! (findgifts.com)

Romantic Fortune Cookies – Chinese take out food pail holds nine fortune cookies with sweet sayings. (amazon.com)

Ladybug Chocolates – Give a six piece ladybug shaped truffles set to your sweetheart (moonstruckchocolate.com)

Be Mine Wine – Give that special wine, champagne, or nonalcoholic beverage on Valentine’s Day. (personalcreations.com)

Classic Jewelry – When all else fails, buy jewelry. But why settle for something he or she won’t wear once the holiday is over? (redenvelope.com)

True Love

That’s it, folks! Fun gift ideas for Valentine’s Day, ways for you to express your love to the one nearest and dearest to your heart.

Photo Credit: Billy Alexander

Tags: chocolates, flowers, gifts, greeting cards, hearts, St. Valentine's Day, Valentine's Day

 

For the Week of:

Sunday February 07, 2010

2010 TRAVEL PLAN IDEA: ENJOYING THE CAROLINA SUN … and the history of Charleston and other fabulous gardens and eating establishments in South Carolina. Now let’s review what you might like to do … view: our South Carolina travel guide

SPORTS MESS! When you have kids – or when you are involved in sports yourself – it can be a bit messy keeping all of the sporting equipment in one place. How about setting up a sports closet (or area) where all of your sporting equipment is nicely organized. See what we mean. tip: view sporting closet

Cell phones are becoming like hand-held computers and entertainment centers. The new phones are copy-cats to the Apple I-Phone, which will lower prices for everyone. More Information: see our nBuy "Telecommunications" center for a review

MONTHLY SPECIALS FOR FEBRUARY … and it is not too late to get something for Valentine. Jump our to our nBuy center for "what’s hot" in February. Shop the nbuy Monthly Specials: click here for monthly specials

COLLEGE BUDGETING the Spring semester is in full gear for all colleges nationwide. Money is going to be tight. So learn what you can about budgeting and planning the money you need for the long stretch. Link to: more information about college budgets

ALL YOU HEAR IS DEBT … So get control of your debt problems by consolidating all of your debt into one, low repayment plan. Debt Tip: view our best to reduce your debt

 

 

Tags: weekly education tips, weekly home improvement tips, weekly money tips, weekly planning tips, Weekly Tips, weekly travel tips

Toyota owners, and for that matter Lexus and Scion owners, should be outraged at the way that the Toyota Motor Corporation has responded in the wake of known engineering and technology glitches which have caused numerous accidents that have injured or killed many. Evidence is emerging that Toyota knew about its gas pedal problems as far back as early 2007, but now a new problem is emerging: the latest generation hybrid Prius may have brake problems.

Slipping Brakes

The problem with the Toyota Prius surfaced when customers began to complain of brakes slipping under certain conditions. Beginning in late January, Toyota tweaked the software controlling the brakes of cars which had yet to be sold, but they still have not offered a fix for customers who already own the car. The third generation Prius has been available since early 2009.

Complaints from American drivers have been sent to the National Highway Safety Transportation Administration (NHTSA) who has been behind a pair of investigations related to the runaway Toyota issue. Japan’s Ministry of Transportation is also investigating Prius complaints logged by Japanese drivers.

SayEducate first mentioned the runaway Toyota issue last November on the heels of an ABC News investigative report detailing several fatal accidents and incidents involving runaway Toyotas and the fatal runaway Lexus case last summer. Since then, numerous media outlets have helped put pressure on the NHTSA to follow through, with the federal government ordering Toyota to stop selling eight affected models.

ABS Braking

According to Automotive News, Toyota Managing Officer Hiroyuki Yokoyama said yesterday that the slipping feeling is caused by a lag time in the shift between the car’s regenerative braking system and the antilock braking system.

That situation has become most apparent on slippery or bumpy roads particularly in December as icy road conditions resulted in more frequent use of ABS braking. Yokohama added, “When ABS comes into play, you may feel a little bit of slip, but if you continue to apply the brake it will work. It may cause customers a little unease.”

Millions Recalled

Toyota’s problems continue to mount and has extended recalls to cover more cars than it sold last year. Thus far, at least eight million vehicles in North America, Europe, Japan, and elsewhere are subject to a recall, with fixes ranging from replacing the driver’s floor mat to swapping out the accelerator pedal.

Those repairs are expected to begin by early next week with all cars serviced within the next few months.

Meanwhile, not selling its eight affected models has hurt Toyota financially. According to the Detroit Free Press, the automaker is losing $100 million daily with no date set when the company can fully resume sales.

Photo Source: Wikipedia file photo

Tags: ABC News, Automotive News, Detroit Free Press, Lexus, NHTSA, Scion, Toyota