Can You Afford to Retire? Factor Inflation Into Your Retirement Fund
Some people have gotten the message about putting money aside for their retirement years -- but actor and economist Ben Stein says many of them they don't realize that they're not saving enough to live comfortably in retirement.
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He says 77 million baby boomers are racing toward retirement, and members of that group have saved an average of $50,000 -- which doesn't go very far, especially given today's low interest rates.
Stein is the honorary chairman of the National Retirement Planning Coalition, which represents the financial industry as well as advocacy groups, and he says inflation also has to be considered.
He says even if you think you're adequately prepared as you begin retirement, rising prices may put you in real trouble some years later unless you have substantial savings.
With the Fourth of July on the way, Stein's coalition is hoping more Americans will give serious thought to the matter of their financial independence during retirement.
Here's the National Retirement Planning Coalition's top 10 list of ways to prepare for retirement:
- Select a target date for when you want to retire.
- Calculate how much money you need to accumulate by the time you want to retire.
- Find out about your Social Security benefits.
- Maximize your use of tax-advantaged plans such as employer retirement plans, individual retirement accounts and annuities.
- If your employer doesn't have a pension or retirement plan, ask that one be started.
- Don't touch your savings.
- Diversify your assets.
- Ask questions. Get help. Seek the assistance of a professional financial advisor.
- Start now, set goals.
- Do a retirement plan and monitor your progress.
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