Planning For Retirement - Has The Model Changed?

9/03/2009

posted by N. Sioris

Stumble It!

The foundation for a solid retirement plan has traditionally been characterized as a three-legged stool. The three legs are pensions, Social Security, and personal savings. However, recent financial trends suggest that the three-legged stool approach may becoming less reliable.

The savings rate for Americans has significantly declined sine the 1980s. It reached its lowest level since the Great Depression in 2004. Recently, however, it has been gradually trending upward. (Probably out of fear and devastating investment and asset loses.)


Exacerbating the savings shortfalls is the near elimination of defined benefit plans by corporate America. This reality leaves many Americans facing a retirement with less guaranteed income.

As the cost of living continues to rise, many retired Americans find it hard to make ends meet. To maintain their standard of living, some older homeowners are beginning to turn home equity into monthly income through a reverse mortgage home loan. This approach is gaining momentum and is just now starting to be explored by financial planners and financial advisers. It is becoming obvious that a new paradigm is emerging as a result of the greatest loss of wealth since the 1930s.

Researchers estimate that close to 78% of older households do not have sufficient assets to sustain them through retirement. Baby Boomers are also concerned about their ability to maintain their standard of living as they get older. People that expect inadequate or unreliable retirement income are more likely to plan to use a reverse mortgage home loan as a vehicle to access home equity in later life.

If you are one of those people that are stressing over how to supplement your retirement income, you may want to find out how much of your home equity might be available to you from a reverse mortgage home loan. Ask for your personalized reverse mortgage loan quote today.

Market Meltdown Illustrates The Importance Of Retirement Planning

2/04/2009

posted by N. Sioris

Stumble It!

If there is one thing we have all learned during the last 6 to 12 months, it is how crucial solid retirement strategies are for our financial well being over the long term. Diversification, risk management, and age appropriate investments are just a few of the lessons that we should all take away from this economic disaster. Below are a couple of interesting stories that I notices over the last few days, that speak to this topic.


Wall Street Crushes Retirement Plans For Former Economics Journalist

It seems that no one is immune from the effects of the devastation taking place on Wall Street and Main Street.
A former economics journalist and recent retiree, Robert Lyle was caught short with too much of his savings in stocks. Now his retirement income is much less than what he had planned for. He wishes he had an old-fashioned pension instead of a 401(k).

Listen to his story at this NPR link.



Helping Mom With Retirement

The issue of what adult children can and should do to help assure that their parents are financially prepared for retirement is one that's getting more attention as lifespans increase and we become increasingly reliant on our personal savings to fund our post-career lives.

If a parent isn't on the ball with their own retirement planning, it may be time for adult kids to step in.

Indeed, a global study of inter-generational issues released early last year by The Hartford found that more than a quarter of Americans 45 and older say they are currently caring for both children and parents or older relatives. Given how badly the retirement savings of many retirees have been hit by the market meltdown, I wouldn't be surprised if that number has already increased or will over the next few years.

Read the complete CNN Money.com article here.