Retirement Shortfall Risk Making College Saving Tougher, Even for Affluent

RETIREMENT SHORTFALL RISK MAKING COLLEGE SAVING TOUGHER, EVEN FOR AFFLUENT

Financial planners are helping affluent families confront a financial quandary that most families didn't face 30 or 40 years ago: How to plan for both their retiremnt and their children's college tuition. 

National studies show that most Americans run the risk of running out of money in retirement thanks to the combination of factors, which include record unemployment, declining wealth, low savings rates, investment losses and falling home values. For more click here.

Courtesy of Financial Advisor and Virginia 529

Retirement Savings for Procrastinators

Getting a late start in saving for retirement? The percentage of your annual salary you need to set aside might be more manageable than you think - if you're willing to spend some extra years at the office. To find out more on this from SmartMoney click here.

Courtesy of SmartMoney

Retirement Confidence

The past few years saw a sharp decline in Americans' confidence about their ability to secure a financially comfortable retirement. What has happened to confidence now that some economic indicators are improving? Click here for the Fact Sheet from Retirement Confidence Survey.

Courtesy of Retirement Confidence Survey

Retirement Contributions and Saver's Credit

Did you know that you may qualify for the Saver's Credit of up to $1,000 ($2,000 if filing jointly) for making eligible contributions to an employer-sponsored retirement plan or an individual retirement arrangement (IRA)? Unlike a deduction, a credit is a dollar-for-dollar reduction of your federal income tax liability and can reduce the amount you owe or increase your federal income tax refund! See the Full Story on IRS Outreach Corner.

Courtsey of IRS Outreach Corner

Are you Saving Enough for Retirement?

Everyone knows they can't really depend on Social Security to be enough to live on in retirement, but with so many demands on our budgets, how can we be sure that we are saving enough to retire?  So many of us choose our retirement contributions based on what we have left in our budgets after all other bills, but this strategy could shortchange your retirement dreams. 

You can know how much you need to be saving by using a free calculator called the Ball Park Estimate from the American Savings Education Council.  You can find it by clicking on this link.  Just fill in a few simple questions and the calculator will tell you exactly what you should be saving.

The Social Security Administration has issued announcements that people who are working should work closely with their financial planner to assure their needs are met in retirement.  You can get personal financial planning advice by attending the Virginia Beach Financial Planning Days on October 22nd.  Just visit www.financialplanningdays.org/virginiabeach to register.  See you there!

Triple Crown Tax Savings for Retirement Contributions

One of the greatest missed opportunities of all time is the tax benefits offered through retirement savings.  A lot of working Americans don’t realize how many layers of benefits there are to retirement plan participation.  Just take a look at all the great things that retirement savings can do for you:

1.        Reduces your taxable income.  Participation in a traditional 401K, 403B or TSP reduces your taxable income as your contribution comes out of pre-tax dollars.  Thus your federal and state tax withholdings are reduced and your taxable income at tax time is less.  More money in your pocket right away because those tax savings go right into your pocket.

2.       Matching benefits.  Many employers match employee contributions.  That is free money that the employee adds to their retirement nest egg.  Free money that otherwise stays in the bosses pocket.    Now who do you think can use it more?

3.       Saver’s Credit.  If you make contributions to an IRA or an employer retirement plan (including Roth contributions) and your income is less than $27,750 ($41,625 head of household or $55,500 married filing joint) you may be eligible for the savers credit which can be as much at 50% of your contributions! 

With so many ways to save on your taxes while you are building your nest egg for the future, there is no reason not to ramp up your savings.  For more great savings ideas and some more reasons to contribute to that retirement fund check out our retirement section at  http://virginiasaves.blogspot.com/