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Movie Review September 28, 2014

Posted by forwardfinancialplanning1 in 401k plans, Pensions, Personal Budgets, Retirement Savings, Retirement Spending.
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We’re generally not in the business of conducting movie reviews, but regular readers know that the woeful state of America’s retirement preparedness is a common theme of this blog. This topic is well addressed by the creators of “Broken Eggs” which is now available at no cost to viewers. It makes our case far better than we could.

Have a look at: http://brokeneggsfilm.com/broken-eggs-movie/#.


Yogi was right September 10, 2014

Posted by forwardfinancialplanning1 in 401k plans, Financial Planning, Retirement Savings, Roth IRA, Traditional IRA.
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New York Yankee icon Yogi Berra is as famous for his euphemisms as he is for his stellar performance on the baseball diamond. One of my favorite “Yogi-isms” is the following: “If you don’t know where you’re going, you might wind up somewhere else………..”

Yogi had it pegged as it relates to retirement planning. Far too many people never take the time to estimate (or request assistance in estimating) the amount of money they will need to accumulate to cover the costs of their prospective retirements. A recent study by Security Benefit quantifies this planning shortfall. It found that 66% of Gen X and Gen Y workers (born between 1965 and 1992) have not estimated the amount they’ll need to accumulate for a secure retirement. This situation persists despite the fact that 90% of the respondents said that saving for retirement was an important goal, and 88% said it was important to maintain their desired lifestyles in retirement.

Only 19% work with a financial advisor, so it’s not surprising that they are moving forward without having taken the important first step of asking, “Where am I trying to go?”. However, it was quite surprising that only 12% prefer to save with a company that they found on the internet and just 18% would go on-line for advice on how to save more.

I wonder what Yogi has to say about overcoming inertia???

Behind the scenes of student loan debt September 8, 2014

Posted by forwardfinancialplanning1 in Education Planning, Social Security.
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It’s a well established fact that student loan debt is an enormous problem in the US, with the total loans outstanding topping $1 trillion. But here’s a finding that points out how the pain is extending far past the students and recent graduates.

Student loan debt typically can’t be discharged in bankruptcy and the government can even garnish Social Security checks to recoup what it’s owed. One might think that this government recourse rarely comes into play as “surely, student loans are paid off by Social Security time”. That would be a bad assumption as US Treasury Department data cited by Bankrate.com indicates that 122,056 Social Security recipients had their checks garnished in 2012 because of delinquent student loans, up from only 6 in 2000.

What a way to spend your retirement!