Page 35 - Flathead Beacon // 7.30.14

FLATHEADBEACON.COM BUSINESS MONTHLY FINANCIAL CORNER Jesse Rigler
Are You a Baby Boomer? Don’t Let Retirement Plans Go Bust
JULY 30, 2014 | 35
IF YOU’RE A BABY BOOMER, you’re at the point in life where, if you haven’t actually entered retire- ment, you’re at least approaching the outskirts. But if you’re like many of your fellow boomers, you may be experienc- ing more than a little trepidation over your financial prospects as a retiree. That’s why it’s so important for you to determine what steps to take to help im- prove your chances of enjoying a com- fortable retirement.
Just how worried are baby boom- ers about their futures? Consider these numbers: 72 percent of non-retired boomers think they will probably be forced to delay retirement, and 50 per- cent have little confidence that they will ever be able to retire, according to a re- cent AARP survey. Other surveys show a similarly bleak outlook among the baby boom generation.
Fortunately, when it comes to build- ing resources for retirement, you have options. Of course, if you’re in one of the younger age cohorts of the baby boom generation, your possibilities are greater — you may still have time to take mea- sures such as boosting your 401(k) and IRA contributions, reducing your debts and positioning your portfolio to pro- vide you with a reasonable amount of growth potential.
But even if you are pretty close to retirement, or at least close to the point where you initially expected to retire, you can act to better your outcome. For one thing, you could re-evaluate your planned date of retirement. If you re- ally don’t mind your job and could ex- tend your working life for even a couple of years, you could help yourself enor- mously in at least three ways:
You’ll add on to your retirement ac-
counts. The longer you work, the more you can contribute to your IRA and your 401(k) or other employers-sponsored ac- count.
You may be able to delay taking So- cial Security. You can start taking Social Security as early as age 62, but your ben- efits will be permanently reduced unless you wait until your Full Retirement Age (FRA), which will likely be 66 or 67. Your payments can increase if you delay tak- ing your benefits beyond your Full Re- tirement Age, up to age 70.
You may be able to delay tapping into your retirement vehicles. The longer you wait until you begin withdrawals from your IRA and 401(k), the more time you are giving these accounts to potential- ly grow. (Once you turn 70 1⁄2, you will need to generally start taking withdraw- als from a traditional IRA and a 401(k) or similar plan, but you don’t face this re- quirement with a Roth 401(k) account.)
As an alternative to delaying your retirement — or possibly as an addi- tional step you can take along with a delay — you may be able to adjust your investment mix to provide you with the combination of growth and income that can help carry you through your retire- ment years. You can also be strategic about which investments you start tak- ing withdrawals from, possibly allowing your portfolio to grow more than you had envisioned.
Start thinking now about ways you can help yourself achieve the retirement lifestyle you’ve pictured. You may want to consult with a professional financial advisor who can suggest the strategies and techniques most appropriate for your situation. In any case, with some careful planning, you can be a boomer whose retirement plans don’t go bust.
DEPARTING FROM LAKESIDE MARINA
DAILY CRUISES AT 1pm Tuesday Through Sunday
EVENING CRUISES AT 7 pm Sunday, Tuesday and Wednesday
ADULTS $20 CHILDREN $10 UNDER 6 FREE
Reservations Only For Groups Of 10+ Discount Will Apply
Arrive 30 Minutes Prior to Departure Also Available For Private Charters
Music on the Water!
“Luke Dowler”
Sunday, August 3rd, 7 pm
Roll up the Killers, Springsteen, Kings of Leon, Tom Petty and John Mayer into one, and you would get something like American songwriter Luke Dowler.
Music included in ticket price. Advance ticket sales available online.
Jesse Rigler is a financial advisor at Edward Jones in Kalispell.
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Victoria from Australia, 17 yrs
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Giorgio from Italy, 16 yrs.
Loves to play baseball and
spend time with his dogs. Giorgio also plays the guitar and his dream is to join a drama club at his American high school.
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