Retirement Fund for a better tomorrow

A September 2008 Research by Alison Shelton of AARP’s Public Policy Institute shows homeowners age 50 and over have been significantly affected by the mortgage crisis. More than 684,000 homeowners age 50 and over were delinquent, were in foreclosure, or lost their homes during the six months ending December 2007. The study also finds that older Americans appear particularly vulnerable to home price declines and to subprime loans.

Incidences of suicide attempt by old people like the one in Ohio yesterday where a 90 year old woman apparently shot herself because her house was in foreclosure is very disturbing.

This is something everyone should seriously think about. It’s high time we think about our retirement planning for a successful future. Below are the 5 tips from Bankrate.com about starting a retirement fund -

1) Get a number. Just start.
Tools, such as online calculators available at the Social Security Administration Web site and other educational sites can help wage earners determine how much their benefits will be and how much they need to save for the retirement of their dreams.

2) Be smart with spending.
Make decisions today about how you spend, save and invest. Doing this will impact what you have tomorrow. Capitalize on resources available to you at your workplace, or talk with your parents or someone who you respect. Many companies offer free financial-planning education and investment guidance to help individuals take charge of their retirement savings. Find out what’s available for you.

3) Start saving now.
“One of the biggest mistakes people make is they’re so overwhelmed they do nothing. They look at their number and think ‘I can’t ever save that,’ so they do nothing,” says Dick Bellmer, chairman of National Association of Professional Financial Administrators. “But it’s like that old saying: ‘How do you eat an elephant?’ One bite at a time.” Pay yourself now, stick to it and be patient.

4) Join your employer’s plan.
The good news is there’s lots of incentive and help to save. Many employers are stepping up plans to automatically enroll employees in a 401(k) or other retirement plan. Financial products, such as the so-called lifestyle or age-targeted mutual funds, can make it simpler to choose investments that are designed to meet your retirement goals. Check with your company’s human resources department for guidance.

5) Start an IRA.
Individual retirement accounts, or IRAs, give people a way to build tax-deferred savings for retirement. An IRA is an account, not an investment. You can put just about whatever investments you want into your IRA — stocks, CDs, mutual funds, cash and bonds — anything except options and other derivatives. You may be eligible to open an IRA even if you have a plan at work.