Real Life Money and Credit

The first wave of post-WWII baby boomers are now zooming past the retirement finish line.  The Boomer generation spans about 18 years from 1946 to 1964, the oldest of which are now reaching retirement age.  Now that many of the older Boomers are reaching early retirement age, are they really financially ready to exit the workforce and enter their golden years?  The answer is both yes and no. 

Working Into the Golden Years

In the last two years, from 2007 through the end of 2008, only less than half of eligible Boomers who could take early retirement before the age of 65 did actually fully retire.  According to a study performed by MetLife Mature Market Institute, a Boomer survey response revealed that a majority of those eligible for retirement still work full or part time.  Many of those eligible for retirement found that the economic climate was not yet ripe, and they were determined to remain in the workforce until the economy gets back on track and their retirement accounts receive that little extra “padding” from the continuing work years.

401(k) Plays a Major Role

Of particular interest in the decision to retire early or not was the 401(k) or other retirement account.  In the last two years, and especially in 2008, many retirement savings accounts saw massive drops in value due to the stock market collapse.  About half of the surveyed Boomers expressed that they were behind in their retirement savings, and only a small percentage reported that they had achieved their retirement savings goals.

The Economy Turned Retirement Haywire

In comparing the MetLife 2007 study with the 2008 study, it appears that in 2007, 15% of those who would reach the early retirement age of 62 planned to fully retire.  A year later, only 11% of that small percentage actually did fully retire, while the rest continued to work because of the economy.  These workers were faced with a decision to continue full or part time work due to sudden changes in the economic climate and the value of their retirement savings.  Most of the older generation Boomers say they will now fully retire at age 66.

However, when the same question was asked of the older Boomer generation, their answer was prominently that most will not take early retirement at age 62. Rather, most say they plan to fully retire at age 64.  The sentiment of the younger Boomers is that they have more time to get their retirement accounts in shape and in a position to retire. 

What Nest Eggs are the Boomers Depending On? 

While most retiring Boomer workers will collect Social Security benefits, what are some of the additional retirement savings or investments that Boomers will depend on after retirement?

• 401(k) – About 54% of surveyed Boomers said they have a 401(k) in which they contribute toward their retirement.  

• IRA – Also, about 51% said they have an IRA in addition to, or rather than, a 401(k) retirement savings.

• Defined Pension – Less than half, 49%, said they will have a defined retirement pension from their workplace.

• Stocks, Bonds, Mutual Funds – 40% of those surveyed own stocks, while another 38% have invested in mutual funds.  Fewer, only 27%, own bonds for their retirement plans.

• Annuities – 37% of Boomers have purchased annuities that will pay them a regular retirement income.

As many early generation Boomers are experiencing, economic climates can play a big part in the decision to retire.  A retirement savings plan should include a broad spectrum of financial products that provide growth, while also protecting value in economic downfalls.  Anyone in the Boomer generation nearing retirement should have a good asset management company such as www.iamllc.biz or a wealth manager as www.kenhimmler.com on their side to formulate a solid financial strategy toward retirement. 

Authored by Kenneth Himmler, Sr.

Are you falling back on your mortgage payments because of unexpected expenses or loss of income due to a layoff?

If the thought of losing your home due to missed mortgage payments is terrifying you, you could consider borrowing money, with a title loan for example, to pay back

mortgage payments. Once your mortgage is current, you can start paying back the loan by cutting back on other non-essential expenses.

If you already have bad credit, you’ll find it very difficult to borrow money from a lender without using something as collateral. One thing you can use as collateral

is a clear car title on a vehicle that is paid off or nearly paid off. Because, in Oregon, title loans are secured by a pink slip, a low credit score will not affect approval.

The thought of having to allow your home to go into foreclosure and becoming homeless because of a missed mortgage payment can be frightening to anyone with a family to

support. The repercussions of mortgage delinquency are so severe that these bills should always be the first ones paid off from your household expenses.

If you have missed three or four payments your loan will go into default. Once you have reached this phase, most services will not be willing to accept a partial

payment, and will start foreclosure unless you can come up with the money to cover all your missed payments, plus the late fees.

If you are having trouble making your payments, the first thing you should do is contact your loan services, to discuss your options. If you call them early, your

lender may see that you are acting in good faith, and they will be more willing to work with you. Your options for payment will begin to close the longer you wait to call them.

If you have low credit scores, missing a mortgage payment and losing your home will cause your scores to crash even further. As a high risk borrower, you can always

expect to pay a higher rate of interest than those charged on conventional debt instruments such a bank loans.

In some states car title loans have lower rates of interest than unsecured debt and are considered a better option for subprime borrowers. But, should you default on

the loan the lender will repossess and sell the car to cover any losses they incur.

Most lenders will give you not more than 50 percent of the wholesale value of your car as a loan. This is to offset the cost of having to repossess and sell the car if

you default on your loan payments. Find a reputed lender who will give you competitive interest rates and flexible payment terms with no pre-payment penalties.

Do not fall prey to the deceptive tactics used by predatory lenders who will trap you in a cycle of debt that will further harm your credit rating. Read the agreements

of Oregon title loans carefully and make sure you know how much you will have to pay and when. No matter what the reason, do not fall behind in your mortgage payments!

As a homeowner in Oregon, title loans can help you get your mortgage payments back on track.  Get Your Free cheap auto insurance Quote Today.

It’s no secret that we’re knee-deep in one of the most severe recessions in several decades – and you need important investment advice to see you through the recession, particularly if you’re saving up for retirement.  Since more baby boomers than ever before are freezing contributions to their 401(k) retirement funds or cashing them out altogether, it’s time to dispense some investment advice that will recession-proof your retirement savings – and have you living the retirement plans that you’ve always dreamed of!

Investment firms and advisors are keen to let their golden-aged investors know this key piece of advice: whatever the condition of the recession, do not pull out of the market out of fear.  While every bone in your body might be telling you to pull your money out of your portfolio before you lose your life savings, take note: markets inevitably must go through a cyclical effect.  Sure, it’s tempting to invest during the good times – but what about when a bear market is in full effect?  Any investment advisor will tell you that it’s because many investors don’t have the patience or the stomach to watch as the markets fluctuate based on economic growth and recession.  In fact, a recent study by Dalbar, Inc. found that no matter what an investor’s desired retirement plans or investment timelines, that same investor ended up selling his or her shares within four to six years in the market, simply because they were frightened by a sudden downtown in the market and the economy.

So if you’re looking to recession-proof your retirement savings, it’s important to understand that you shouldn’t pull your money out of the markets simply because it’s doing poorly; rather, a savvy investor will understand that once a market reaches the bottom, it has nowhere to go but up. However, a smart investment advisor will do everything possible to make sure that their clients understand the nature of fluctuating markets: it’s an inevitability that markets will waffle between a bull and bear market. 

Additionally, make sure that you receive an investment education from your registered investment advisor.  He or she will help you to outlast the poorest of markets, so you’ll be able to reap the fruits of a bull market once again!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!

Authored by Ken Himmler, Sr.