Ten Steps for a Sound and Secure Retirement

2. Set a Detailed, Realistic, Written Retirement Plan.

- Set a target retirement date.

- Identify the amount of post-retirement income you'll need.

- Factor in your Social Security and any pension income. What is the difference between your income target and your Social Security and employment pensions?

- Set a savings goal to amass the capital you need for the income difference.

- Use free on-line calculators to help you.

- Loop back and adjust these calculations after you have gone over the next steps.

Interview

Nationally syndicated personal finance columnist Terry Savage discusses how much money Boomers will need for their retirement.

Video

Wharton Finance Professor Jeremy Siegel says It's Up To You to Prepare.

Tools and Resources

- How long will you live? Try this longevity calculator from Eons.com. (requires free registration)

- Two simple and quick ways to analyze how much you'll need for retirement:

– Choose to Save - www.choosetosave.org

– You Can Do It!: The Boomers' Guide to a Great Retirement by Jonathan Pond (Harper Collins, 9780061121388, November 2006)

- If you are counting on a pension or other direct benefits, make sure those benefits are going to materialize. Visit www.cashrichretirement.com and copy the Letter Concerning Pensions, then send it to your employer to request independent certification that your pension plan is adequately funded. (from Cash-Rich Retirement by Jim Schlagheck, St. Martin's Press, ISBN 0-312-37740-1, March 2008).

- Learn the basics of financial literacy from the U.S. Financial Literacy and Education Commission at www.mymoney.gov.

Quote

"Baby Boomer retirement is going to be like a Category 5 hurricane with only Category 3 levies built to protect it, just like Katrina, when we saw Americans sitting on rooftops waiting for the government to rescue them. The government will not be able to rescue Boomers who haven't prepared for retirement." - Terry Savage, nationally syndicated personal finance columnist.

Go to Step 3: Save more – and save automatically
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