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Thought this article was ve=
thought provoking. If you haven't already started retirement planning=
is a good time to start. If you are already saving and planning now i=
good time for a check up of your investments and saving strategies.
As always, if you are inter= ested in making real estate or other non-traditional investments with your retire= ment funds, see our web site at www.entrustnortheast.com or feel free to contact our = office at 973-857-8058.
Regardless of the investment vehicles you choose, don't delay in making a plan for your retirement! = ;
Americans Hitting Roadblocks to Retirement;
The Costs of Living Today Continue to Get = in the Way of Saving for Tomorrow
May 24, 2005--The desire by= many Americans to save for retirement is being overshadowed by the financial dem= ands of everyday living, according to "Roadblocks to Retirement," a new study released today by Prudential Financial, Inc..
The study found seven in 10 Americans are most concerned with short and mid-term financial spending, wh= ile placing retirement savings a distant third priority. In fact, 60 percent of Americans indicated they are behind schedule in saving for retirement and t= he vast majority now expects to work longer and/or to continue working in some= way in retirement. Women face an even greater challenge, as they have to catch = up more than men and, given longer life spans, likely will need their financial resources for a much longer period in retirement.
"Planning for a secure
retirement becomes a serious challenge for many Americans who are focused m=
on current needs," said John Strangfeld, v=
chairman, Prudential Financial. "Our new research shows that most
Americans don't get serious about planning for retirement until they reach
their 50s. And even then, more than half focus primarily on short-term
financial goals," Strangfeld said. =
When Retirement Arrives Uninvited
Issues such as downsizing, injury, health limitations or family emergencies can lead to a sudden and unexpected retirement. Four in 10 respondents indicated they were forced to retire, and nearly half of involuntary retirees were under the age of 60. Almost two-thirds of the people who unexpectedly retired indicated they were not financially prepared.
And the survey found that t= his sense of financial unpreparedness can diminish a retiree's perceived quality of life, including their emotional well-being, overall health, activity level, and family responsibilities.
The "Dream" Retirement Could Be Just That For Many
Among those who were forced= into retirement, six in 10 said they are simply trying to make ends meet. Even a= mong those who retired on their own terms, two-thirds indicated they are just li= ving "comfortably." Fewer than half of all retirees said they were abl= e to travel or vacation as they may have hoped. And only about five percent would say they live an "upscale" lifestyle of freedom and flexibility. =
Many Expect To Just Work It Out
During the first ten years = of retirement, seven in 10 Americans currently expect to continue working to supplement income and continue to build their nest egg. At the same time, 64 percent recognize they may be simultaneously coping with deteriorating heal= th. In the second 10 years of retirement, 80 percent of respondents indicated health care was a top concern, with many retirees expecting to require nurs= ing home care and/or run out of money.
Other Notable Findings Include:
Retirement Savings Took A Five-Year "Hiatus"
-- During the last five yea= rs, an alarming 59 percent of those surveyed (ages 30 to 69) feel both the general economic environment and their personal situations have harmed their retire= ment prospects.
-- All survey respondents, regardless of age, income and ethnic or racial backgrounds, consistently expressed a lack of progress in retirement security since the turn of the century.
-- Only 16 percent of respo= ndents feel they made some progress during this same period related to planning and saving for retirement.
Many Americans Are Literally Betting The House
-- More than half of all
respondents expect to unlock the value of their home by moving to areas wit=
lower cost of living or a smaller home within 10 years of retirement. =
-- Eighty-five percent of involuntary retirees think the equity in their home is a dependable source = of retirement income. Yet, more than half still have an outstanding mortgage on their primary home.
-- Although 401(k) plans we= re cited by respondents as one of the top three positive factors impacting retirement prospects, more than 30 percent of those recently retired were n= ot enrolled in employment-based plans. When looking at involuntary retirees, t= hat number swells to more than 50 percent.
-- The financial responsibi= lities Americans face will continue in retirement as many expect to provide financ= ial support for their parents and few expect the same support from their own children.
Retirement Planning Remains A Myste= ry
-- Almost half of Americans surveyed indicated they are perplexed about how to choose financial product= s to help meet their retirement goals.
-- A significant percentage= of each ethnic segment surveyed is unfamiliar or uncomfortable with the proces= s of choosing retirement products and services. In 2004, fewer than two in 10 met with a financial professional for retirement advice.
-- A holistic training prog= ram aimed at helping Americans transition into retirement is an appealing idea.= In fact, more than half of those surveyed expressed interest in a retirement program similar to what the military offers to help members adjust to civil= ian life.
-- Despite a reluctance to =
for retirement, for those who do, most don't consider it a burden at all. In
fact, about 80 percent across age, income and different ethnic/racial
backgrounds, hardly notice the "lost" spending opportunity and
ultimately feel happy about their savings toward tomorrow's security. =
"Americans have clear retirement goals. However, many are not sufficiently informed to effectively plan for the transition to retirement. The most effective approach is perha= ps the simplest, too - a return to the basics of sound management of househ= old finances. That is, spend less, save more, start early, and seek professi= onal financial advice," said Vivian Banta, vice chairman, Prudential Financial.
Jaime J. Raskulinecz, CPM
Entrust Northeast, LLC
THE EXPERTS IN SELF-DIRECTED RETIREMENT PLANS