NEW YORK (TheStreet) -- Beware, your employer could be stealing your retirement savings. Remember back in the 1990s when pension plans touted surpluses? Those days are long gone, as many corporations froze the plans or eliminated them altogether. Underfunded pensions became the norm. Employees investors and the public were led to believe that the tough decision to take those actions was a result of the declining stock market and cheaper foreign labor, which prompted companies to reduce expenses. Ellen Schultz, author of Retirement Heist, reveals that the funds were diminished on corporate expenses like restructuring costs, executive pay and health benefits. In some cases, the assets were even sold in merger and acquisition transactions. As unfortunate as it is, those practices are legal. But most workers don't know about them. Companies say there are disclosures in filings provided to the Securities and Exchange Commission, which are publicly available. Those disclosures are found only in footnotes in small print, according to Schultz. Schultz, a Pulitzer Prize-winning reporter for the Wall Street Journal, says most of the money went toward executive pensions and deferred-compensation packages. Those have become huge obligations as the costs associated with executive benefits have spiraled out of control. Of course, the average worker is left without anything. A rather outlandish example she provides is a practice by which CEOs use life insurance to finance their own pension plans. Here's how it works: A company takes out life insurance on its workers and, as they pass away over time, the proceeds fund executives' fat pensions.

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Retirement Funds Used to Boost Company Profits

ST. LOUIS--(BUSINESS WIRE)--

Americans are more conscious today of where every dollar is spent. And they are responding by cutting simple costs to save for retirement. A new survey from investing company Scottrade, Inc. found that Americans are taking action by comparison shopping, using coupons and generally cutting back on unessential expenses like clothing and entertainment.

“Americans are simply looking for ways to save more and spend less,” said Kim Wells, Scottrade’s executive director of product development and chief marketing officer. “They are feeling a financial pinch in more areas of their daily routine – from filling their gas tanks to heating their homes. These behaviors demonstrate that people are more mindful of their financial situations.”

Uncertainty about future circumstances is compelling nearly all Americans to take action, according to the sixth annual survey of consumer attitudes and behaviors regarding retirement and retirement planning.

In order to reduce their financial concerns this year:

69 percent are spending less, compared to 63 percent in 2011; 67 percent are using coupons, compared to 59 percent in 2011; and 65 percent compare prices to find the best deal, compared to 58 percent in 2011.

“By understanding that they shouldn’t overpay, more Americans are comparing prices to find better deals for themselves,” Wells said. “Our company was founded on the notion that everyone deserves a good value. Scottrade’s award-winning philosophy on fair pricing, and our 32-year history of low commissions and never charging account nuisance fees, gives our clients confidence that they won’t be nickel-and-dimed.”

The survey data indicates Americans’ uncertainty stems from debt. Weighed down by non-mortgage debt, this year more Americans – 40 percent compared to 33 percent in 2011 – reported it caused them to save less for retirement. And the trend is expected to continue with 34 percent stating that non-mortgage debt will cause them to save less for retirement in 2012.

This explains the ‘Do as I say, not as I do’ theme Scottrade’s research uncovered. Only 5 percent of Americans recommend saving 2 percent or less annually for retirement, yet 55 percent of Americans reported saving 2 percent or less in 2011. And the trend of under-saving should continue as 33 percent plan to save 2 percent or less in 2012.

Despite these concerns, the majority of Americans, 72 percent, said they are confident in their own abilities to plan for retirement. Overall 61 percent of respondents expect to be able to completely retire – and not work again – between the ages of 45 and 74. Fifteen percent of the survey’s respondents have already retired, with the majority doing so between the ages of 45 and 74.

About the 2012 Scottrade American Retirement Survey

The survey was commissioned by Scottrade and conducted online by Synovate. Fielded with a nationally representative sample of 1,000 respondents between January 5-9, 2012, the survey examined attitudes, behaviors and trends related to retirement. All participants were at least 18 years of age and were involved in making investment decisions in their households. Margin of error for the overall poll is +/- 3.1 percent at 95 percent confidence. This is the sixth year in a row Scottrade commissioned a survey of Americans’ current viewpoints about retirement and retirement investing.

About Scottrade, Inc.

Investors who enjoy online stock trading will find value and personalized customer service at online investing firm Scottrade, Inc. Founded in 1980, Scottrade enables customers to learn about online trading tools, stock market research and how to buy stocks online, many at just $7 per trade. With more than 500 nationwide branch offices, Scottrade has the largest branch network among online brokerage firms. To learn more about one of FORTUNE magazine’s “100 Best Companies to Work For,” visit about.scottrade.com or http://www.scottrade.com and follow us on Facebook, Twitter, YouTube and Flickr. Member FINRA/SIPC.

Scottrade® and the Scottrade® logo are the registered trademarks of Scottrade, Inc.

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New Research on Retirement Saving: Financial Frugality is Back in Style

TORONTO, ONTARIO--(Marketwire -02/28/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 51:

Choose a professional financial advisor to help you meet your retirement savings goals

A comprehensive, integrated retirement plan requires a lot of financial expertise and time. If you feel you have both, then a do-it-yourself approach can work. If you are seeking professional planning and investment advice, then here are the questions you should ask an advisor before deciding to move forward with him/her:

-- What is your strategy for building a retirement plan?
-- What is your area of expertise?
-- What designations or licences do you hold?
-- What other experts do you work with - estate planners, tax experts,
lawyers?
-- How are you paid?
-- Describe your client base - how many clients do you have?
-- How did you attract those clients?
-- How often do you meet face to face with clients?
-- How and how often do you communicate with clients?
-- What is your investment philosophy?

If you are looking for an advisor, ask friends and family how they found their advisors and if they would recommend them. You can also contact your bank or the professional organization that regulates the type of financial professional you are seeking and ask for a list of members located in your area.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Know How to Choose a Financial Advisor

BOSTON (MainStreet) -- Even as baby boomers march into the ranks of the retired, many are behind the ball in preparing for that inevitability. Complicating matters has been a recession, market volatility and staggeringly low interest rates. More than 76 million baby boomers -- nearly 25% of all Americans -- are approaching retirement age in the next 20 years, making the transition from retirement saving to retirement spending. That shift from accumulation mode to a deccumulation phase is proving difficult for many. So much so that a recent survey by Schwab found that one-third of those who say they are just five years away from retirement have not even calculated how much income they will need in retirement. "Flummoxed" is how those same researchers described nearly half of these soon-to-be retirees when it comes to how to invest money for maximized retirement income. The findings may not come as much of a surprise to Carrie Schwab-Pomerantz, Schwab's senior vice president, whose focus on financial literacy issues has given her insight on, and concern about, street-level investing behaviors. The Schwab survey suggests that "while the vast majority of pre-retirees express feelings of optimism about their retirement readiness," their outlook may be either filtered through rose-colored glasses or masking how they really feel. One-third said they have not yet determined their essential living expenses in retirement and 64% say they have less than one year of cash savings available for living expenses during retirement. "A quarter of all Americans are retiring, and yet there hasn't been a lot of thought around decummulaton and maximizing income utilizing your various portfolios and income streams," Schwab-Pomerantz says. "It comes at a time when it's hard enough to save and build that portfolio, one of the most expensive things you'll ever do. There's so many aspects to decummulation, and we found that from our clients that coming up with a drawdown strategy for income was very complicated." "The bottom line is that transitioning into retirement mode is a very emotional time," she adds. "Saving for retirement is something most Americans know they have to do, but many people are confused, scared and literally frozen when it comes to flipping the switch from saving to withdrawing. Our data shows that people even just a year or two away from retirement don't know how to tap their savings effectively once they transition to retirement."

 

Schwab offers the following tips for tackling the need for steady, long-lasting retirement income: Review your situation.
Know how much money you've earmarked for retirement, where you keep it and how much, if anything, you want to leave to heirs. Maintain a year of cash.
Set aside an amount equivalent to what you'll need from your portfolio for at least a year. This is the money you'll use -- along with your regular sources of income -- to cover all expenses throughout the year. "One of the basic principles of finance is that you should have three to six months of cash set aside for your nondiscretionary expenses," Schwab-Pomerantz says. "Given the economy and volatility, it's also a good time to probably have more fixed income, maybe two to four years of liquid assets -- short-term bonds and CDs and so forth -- as part of your asset allocation, so that even if we never have to deal with another year of all-time lows you can weather the storm and not have to sell equities during those all-time lows." "Even somebody who is farther away from retirement should have that emergency fund in case they lose their job or have an illness," she adds. "You don't want to have to spend down any equities you have built up at their lows and you don't have to resort to a short-term loan where you might have to pay very high rates." Consolidate income in a single account.
When possible, you may want to deposit your regular sources of income into the account where you keep your year of cash. Or you might choose a similar type of account where funds can be easily transferred. According to Schwab's survey, 51% of respondents say they have four or more financial accounts, yet two-thirds are not planning to consolidate those into one account from which to withdraw their retirement income. People do have insecurity about placing all their financial eggs in one institution," Schwab-Pomerantz says, and this is particularly true of those with $100,000 or more in investible assets who tend to keep their accounts in multiple places. "The idea of consolidating accounts is so you understand how much you have, or would like to have," she says. "Hopefully you will have some tax-deferred accounts and some non-tax-deferred accounts, so there is a strategy around tax efficiency and growing your income tax deferred for a longer period of time. It's really a matter of simplifying your life so that you can focus on more complex things, like building your assets and finding a tax-efficient source of income." Match your investments to your goals and needs.
As you begin to rely on your investments for income, you may feel most comfortable investing heavily in income-generating bonds and CDs. But to counteract the long-term effects of inflation, you may need to keep a portion of your savings in growth-oriented stocks as well. Cover essentials with predictable income.
Divide your expenses into essential and discretionary categories and cover the essentials with predictable income sources. Don't be afraid to tap into principal. "One of the steps is to sort your expenses between essentials versus non-essentials and then have a draw-down strategy that uses your predictable income to cover for essentials, such as housing and utilities food," Schwab-Pomerantz says. "That predictable income can be interest off a bond or when a bond matures and you know when it's going to come." To supplement your predictable income sources such as dividend and interest income, Social Security, pension payments and rental income, consider drawing money from your retirement portfolio in this order: Start by drawing principal from maturing bonds and CDs; Take your required minimum IRA distribution if you are 70.5 or older; Sell overweighted assets in your taxable accounts; Sell from your tax-advantaged accounts starting with traditional IRAs, then Roth IRAs. "There are strategies to be had," Schwab-Pomerantz says. "If you have a traditional IRA versus a Roth IRA you might do one first versus the other, depending on what your strategy is." Rebalance annually to stay aligned with your goals.
Annual portfolio rebalancing is especially important when you're retired, not just during the accumulation phase. There's less time to recover from the potential losses of lackluster returns caused by a portfolio that has strayed from your chosen asset allocation. Stay flexible and re-evaluate as needed.
Things change. Situations change. Markets change. Priorities change. It's important to periodically revisit your portfolio asset allocation to stay aligned with your broader investment goals. Schwab-Pomerantz stresses that even for those five years away from retirement, there is still time to right their financial ship. "It's not too late," she says. "We are seeing, culturally, that baby boomers don't think of sitting in a rocking chair and knitting. They are thinking of second careers and working part time, still being viable and productive. So, there is time to build income. There is time to balance out that portfolio, get that cash stream up. Also, retirement today could be a 30-year endeavor, and you can do a lot in 30 years." "You don't get a lot of chances to change your retirement outlook," Schwab-Pomerantz adds. "The sooner you can start thinking about it and working on it, the better it will feel and the more choices you will have later in life." -- Written by Joe Mont in Boston. >To contact the writer of this article, click here: Joe Mont. >To follow the writer on Twitter, go to http://twitter.com/josephmont.

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7 Ways to Beat the Retirement Draw-Down Blues

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26-02-2012 15:40 Bay area legend Too Short joins DJ Skee on Hip Hop Nation's "World Famous Weekends". They discuss his 19th studio album, a collab album with E-40, the evolution of his musical career, and thoughts on retirement from rap. "No Trespassing" album coming Feb. 28th

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Interview: Too $hort talks 'No Trespassing', Musical Career,

NASHVILLE, Tenn.--(BUSINESS WIRE)--

Parallon Business Solutionssm, today announced the retirement of Jim Fitzgerald, president of HealthTrust Purchasing Group® and Parallon’s Supply Chain Solutions business unit, effective May 31, 2012.

During his distinguished career as president of HealthTrust, Fitzgerald oversaw the initial formation of HealthTrust in 1999, its financial and operational functions and managed the contracting for clinical supplies, pharmaceuticals and capital equipment, totaling approximately $20 billion annually. Fitzgerald is a member of the Federation of American Hospitals and serves as a board member of the Tennessee Minority Supplier Development Council. He is a graduate of David Lipscomb University in Nashville, Tenn.

“Jim has made many contributions to the growth and success of HealthTrust and has proven himself to be an outstanding leader within the healthcare arena over the last 31 years,” stated Michael O’Boyle, Parallon’s president and chief executive officer. “I look forward to seeing HealthTrust build on Jim’s good work in the future, and on behalf of all of us at Parallon Business Solutions, I wish Jim a long, healthy and happy retirement.”

Tim Marlette, vice president and chief purchasing officer of Community Health Systems (CHS) and a member of HealthTrust’s Advisory Committee stated, “Jim’s vision for, and leadership of, HealthTrust Purchasing Group has been broad and steady. He has been an innovative leader who has helped us grow as a partnership and build on our collective capability to meet the needs of our patients. He will be missed.”

HealthTrust Advisory Board member and SVP of supply chain management and capital project management for Trinity Health, Lou Fierens expressed his thoughts following the announcement. “Jim has been a wonderful partner. He has had both a clear vision for what HealthTrust could become and the operational acumen to make it happen. We will certainly miss working with him but will certainly carry on his vision.”

Parallon’s O’Boyle added, “As we look forward, I see opportunity for HealthTrust and Parallon’s Supply Chain Solutions business to expand and thrive. As business operators with scale and a track record of success, we are in the position to provide an array of efficient, effective and innovative business solutions to a growing list of customers within the healthcare industry and beyond.”

A national search for Fitzgerald’s successor will be initiated immediately.

ABOUT PARALLON BUSINESS SOLUTIONS

Parallon Business Solutions, LLC, headquartered in Franklin, Tenn., is committed to transforming the business of healthcare. Over the past 12 years, Parallon’s shared services solutions have been developed and proven in 250 hospitals and 2,000 non-acute care providers across the country. Through its four business units, Parallon provides revenue cycle and business process expertise, workforce management solutions, supply chain services and the purchasing power of HealthTrust Purchasing Group, serving 1,400 hospitals and 11,000 non-acute care providers. Operating with a “patients first” philosophy, Parallon has a team of over 21,000 people dedicated to continuous process improvement through practical, impact-oriented solutions. Learn more at http://www.parallon.net.

ABOUT HEALTHTRUST PURCHASING GROUP

HealthTrust Purchasing Group, headquartered in Brentwood, Tenn., is a group purchasing organization (GPO) that supports nearly 1,400 not-for-profit and for-profit acute care facilities, as well as nearly 11,000 ambulatory surgery centers, physician practices and alternate care sites. With an annual purchasing volume by its members of more than $20 billion, HealthTrust is committed to obtaining the best price for clinically recommended products, ensuring their timely delivery, and continuously evaluating and improving its services to the patients, physicians and clinicians it serves. HealthTrust’s Advisory Board is comprised of: Community Health Systems (CHS), LifePoint Hospitals (LPNT), Universal Health Services, Inc. (UHS), Health Management Associates, Inc. (HMA), Catholic Health East (CHE), Trinity Health, Catholic Health Initiatives, (CHI), Hospital Sisters Health System (HSHS), Ministry Health Care, Provena Health, St. John Health System, Sisters of St. Francis Health Services, Inc., Via Christi Health, Inc., Wheaton Franciscan Services, Inc., Consorta and Hospital Corporation of America (HCA). Learn more at http://www.healthtrustpg.com.

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Parallon Business Solutionssm Announces Retirement of Jim Fitzgerald

Most people dream of retirement long before they get there. Perhaps you imagine hours spent on the golf course, taking a class on a subject that has always intrigued you or volunteering for your favorite cause. Of course, that's the idealized version of retirement. And then there's reality.

Kiplinger's asked financial planners from the National Association of Personal Financial Advisors what retirement surprises their clients most often encounter, and queried our Facebook community as well, to come up with this list of five top financial surprises. Preretirees, you are forewarned.

Health care costs. The cost of health care came up most often as a top retirement challenge among retirees on our Facebook page. According to Fidelity Investments, the average 65-year-old couple will spend about $400,000 out-of-pocket throughout retirement until age 92, not including long-term-care costs.

Those new to Medicare may find it's more costly than they bargained for, too. While Part A of traditional Medicare, which covers hospital benefits, is free, you'll pay a premium for Part B to get coverage for outpatient services and a premium for Part D to get prescription-drug coverage. Add in the premium for a private Medigap policy, which helps cover the costs that Medicare doesn't cover, and a couple can end up paying $6,500 a year in Medicare premiums alone.

[More from Kiplinger: Quiz: Are You Saving Enough for Retirement?]

High-income beneficiaries get an extra shock -- they are subject to a premium surcharge. Even if your income isn't always high, you can land yourself in surcharge territory if you spike your income in one year with a Roth conversion, for example, or exercised stock options. The surcharge starts to kick in if your annual adjusted gross income (plus tax-exempt interest income) tops $85,000 if you are single or $170,000 if you are married filing jointly.

Keep in mind that Medicare does not cover long-term-care costs -- an additional expense you must plan for.

Higher spending. You no longer have to budget for work clothes or commuting. But you may have to start paying for some things that you used to receive as perks through work, such as a company car, meals, travel or computers. "Small business owners and professionals who retire are often surprised how many of their expenses were picked up by their company," says Bert Whitehead, president of Cambridge Connection, in Franklin, Mich. "It is a jolt when they discover how much it adds up to."

Many retirees plan to see the world in their first few years of retirement, but traveling is pricey, and the costs of transportation, lodging and entertainment can add up quickly. Retirees' actual "travel budgets tend to be at least 10% to 20% higher than what had been budgeted," says certified financial planner Debra Morrison, of Trovena's Roseland, N.J., office. Even if you stay put, you'll have lots of free time to fill, and activities, such as golf or fixing up the house, cost money, too. "We tell clients that the 'common wisdom' that retirees spend 75% of what working people do is a dangerous thing to believe. We do goal setting to discover how they actually picture their retirement, and then try to place a price tag on it," says certified financial planner Barry Kaplan, of Cambridge Southern Financial Advisors, in Atlanta.

Those first few years in particular may be expensive as you enjoy your freedom from work, so budget accordingly when drawing up your retirement income plan. "Retirees desire to travel and become more active in the lives of their children and grandchildren," says certified financial planner Lazetta Rainey Braxton, of Financial Fountains, in Chicago. "It's hard to plan for activities and 'unassigned gifting' when a retiree has never set aside these 'line items' in their budget."

Social Security taxes. Most people realize that they are paying a tax into the Social Security system during their working years, but did you know that you may also have to pay tax on your benefits once you start receiving them? Up to 85% of Social Security benefits are taxable, and the income thresholds that trigger Social Security income taxation are low -- $32,000 for a married couple, for example. "Retirees have a difficult time adjusting to the taxability of Social Security income and the low income thresholds. Most retirees don't see Social Security as taxable deferred income since they paid into the government fund using after-taxed dollars during their employment years. In their minds, retirement income shouldn't be taxed twice," says Braxton.

[More from Kiplinger: 10 Great U.S. Cities for Retirees]

You'll also forfeit some benefits if you continue to work before you hit full retirement age -- in 2012, you give up $1 in benefits for every $2 you make over the earnings limit of $14,640. The good news is that once you pass full retirement age, your benefit will be adjusted upward to account for the forfeited benefits. To learn more about the ins and outs of Social Security, check out our Special Report: Maximizing Social Security Benefits.

Taxes on nest-egg withdrawals. Uncle Sam not only wants a piece of your Social Security benefits, but he's ready for his slice of your pretax retirement savings. When you withdraw money from a traditional IRA or 401(k), those dollars stashed away pretax have a tax bill attached to them when they come out of the account, says certified financial planner Burt Hutchinson, of Fisher & Hutchinson Wealth Advisors, which has offices in Wilmington and Lewes, Delaware. Money you pull from tax-deferred retirement accounts is taxed at your top ordinary-income tax rate, which can be as high as 35%. So if you need $30,000 to buy a new car and you are in the 25% tax bracket, you'll need to withdraw $40,000 from your IRA to cover the cost of the car and the $10,000 tax bill on the withdrawal.

You can leave the money in tax-deferred retirement accounts until you hit 70 1/2. Starting at that age, seniors are required to take minimum withdrawals from IRAs and 401(k)s. If you have a large amount of money in those accounts, a sizable RMD may push you into a higher tax bracket than you thought you'd end up in upon retirement. To mitigate the tax hit, it could be advantageous to tap those accounts sooner than later. Another smart strategy: Start stashing money in a Roth IRA, which has no RMDs for account owners and can be tapped tax-free. Learn more about the retirement tax trap by reading Prepare for the Retirement Tax Bite.

Loss of income for a surviving spouse. Estate planning is critical to make sure your assets are passed down as you wish. But another critical component of estate planning for couples is making sure that the surviving spouse will have enough money to live on. "One thing people don't plan for is the reduction of income if a spouse or partner dies -- without corresponding reduction in expenses," says certified financial planner Kathy Hankard, of Fiscal Fitness, in Verona, Wis. For example, if both spouses are both receiving Social Security benefits, a significant chunk of that income stream will disappear.

[More from Kiplinger: 10 Tax-Friendly States for Retirees]

The surviving spouse can switch to a survivor benefit if that is higher than her own, but the survivor benefit will not necessarily make up for the lost income of going from two benefits down to one. This is one reason why boosting the potential survivor benefit through delayed retirement credits is a smart strategy for couples. The higher-earning spouse can wait to take his benefit, which can earn up to 8% a year in delayed credits up to age 70, and at that spouse's death, the survivor can switch to a benefit worth 100% of the deceased spouse's benefit, including the delayed credits.

The same income reduction can happen if a spouse who receives a pension hasn't signed up for a joint-and-survivor annuity. If the annuity is only based on his life expectancy, at his death, that income source will dry up with no payments for the surviving wife. Choosing the joint-and-survivor option may result in less money monthly, but it will provide income for the surviving spouse if the pensioner dies first. Learn more about pension payout options by reading Pension Quandary: Lump Sum or Annuity?.

Hankard says one client's income dropped about 35% as a result of lost Social Security income and a drop in pension income from his spouse's death, while expenses decreased only about 10%. A big change in cash flow thus may require a change in lifestyle. Plan ahead to ensure that your spouse will have enough money to maintain his or her standard of living.

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5 Costly Retirement Surprises

As of last year, the first of the baby boomers became the most recent batch of Americans to enter their golden years. Senior citizenship, for these newly minted members of the U.S. retired segment, shouldn't come as a challenge to a generation accustomed more than any other to changing times. From childhoods spent growing up in an optimistic Post-World War II climate to the tumultuous social and political upheavals of the 60s, facing the end of one's career may seem like a simple afterthought, all things considered.

 [In Pictures: The 10 Best Places to Retire in 2012.]

But times have changed once again, and boomers are among the first to face retirement amidst an economy wounded by the recession, a slumped housing market, and insecurities over the future of Social Security benefits. More than ever before, retirees are concerned about saving money and making the most out of their dollars after age 65.

It is possible, however, to live on less without sacrificing all of the good things that make for an enjoyable retirement. With a bit of careful budgeting and some common-sense spending, scaling back your expenses doesn't have to mean diminishing your quality of life.

[See The Growing Challenge of Funding Retirement.]

1. Move wisely, buy smaller, save bigger. If you and your spouse are empty nesters and your children grown and moved away, all those extra rooms in your house may lose their necessity. But downsizing doesn't mean less. Many newer homes and condominiums can be had for cheaper, with more modern amenities than their older, more expensive and high-maintenance counterparts. If health and mobility are an issue during retirement, opting for a one-level, ranch-style dwelling reduces the need for stairs, levels, and the overall real estate price. (In the best-case scenario, you may walk away with a profit after the sale of one house for the purchase of another.)

Depending on the location, your savings can be compounded further. Warm climate, access to water, and affordable recreation were a few of the priorities boomers placed on their retirement wish lists, according to a recent Huffington Post survey. Choose wisely where you hang your hat, so your overall cost of living is cheaper. Areas in Texas, Georgia, Idaho, and Nevada have still been untapped by the growing retirement market and are more affordable than California or New York.

[See 10 Places to Retire on Social Security Alone.]

Residing in a temperate climate without the seasonal ups and downs of frigid winters and humid summers cuts down on monthly utility costs. Retiring to a more affordable region makes a world of difference in property taxes as well--think $3,600 per year in Florida versus $10,000 annually in the New York City metro area.

2. Two people to one car. Carpooling doesn't have to be just for the working class anymore. With gas approaching the $5 mark in some states this week, choosing to cut back on driving is an economical choice for motorists of any age.

For retirees, keeping a single car to share between both spouses reduces both your fuel and insurance costs, and helps the environment at the same time. Plus, it gives the perfect opportunity to get out of your car, reduce your carbon footprint, and stay healthy simultaneously. If you live close to a downtown or local shops, get in some exercise, and take the time to walk or bike where you can.

[See 10 New Retirement Hot Spots.]

3. DIY. Were you always handy around the house or skilled with your hands? Many retirees discover their hidden artistic talents. Learn to paint or sculpt, and display your wares at the weekly downtown art walk. There's a great chance that the sale of your work could net some extra income while doing what you love.

Did your career and raising a family set back your dream of becoming a master gardener? Retirement and the free time it offers now gives you that chance to put your green thumb to the test and hone your landscaping skills. Planting the vegetable garden you always wanted and seeing it thrive is not only personally gratifying, but sustainable, and a healthy and affordable option to avoiding overpriced groceries.

4. Long live learning. Don't fight the urge to cancel that cable TV subscription if you don't think it's a needed household staple. Save money from one less bill to pay, and opt for other, free-of-charge information centers, like our old friend, the local library. If movies and TV are a given for you and your spouse, the library offers a wide selection of movies for rent, and outlets like Netflix, Amazon, or Hulu provide video on demand at affordable prices. Knowledge knows no age. Discover the eternal student in you. Local colleges and universities may offer a senior discount in their tuition plans, and many permit retirees to attend classes for free as a non-matriculating student.

[See 20 Ways to Stay Busy in Retirement.]

5. Keep it simple. What should be a lifetime practice applies best in retirement. Don't buy more than you need in groceries, clothing, or household goods. If you've planted that garden filled with lush vegetables, save money by supplementing with frozen greens in bulk. Freeze leftovers to reduce waste and cooking time. Become a coupon maven when shopping. And remember, with material belongings and everything else, that less really is more.

Retirement is your time to relax, slow down, and enjoy life. By creating a few smart ways to cut back and spend less, living on less can mean living bigger than ever before, with a lifetime of years ahead of you.

Paul Sisolak writes for http://www.GoBankingRates.com, which provides readers informative personal finance and investing content, as well as the best interest rates on financial services nationwide.

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5 Ways to Live Large During Retirement

TORONTO, ONTARIO--(Marketwire -02/27/12)- Last year, the first of Canada's nine million Baby Boomers became eligible for retirement. Over the next several years, many will find themselves deciding whether to stay in their homes, transition to a smaller place of residence or relocate to another city or country.

According to a report from the BMO Retirement Institute, the top factors that Boomers stated as reasons to relocate upon retirement included: weather (57 per cent), financial reasons (54 per cent), proximity to family and friends (45 per cent) and better access to healthcare/support services (35 per cent).

Although downsizing may seem like a straightforward move, there are several factors to consider before making the decision.

"Even if downsizing may be years away, it's important not only to think about all of the factors that can affect your decision, but to maintain an open dialogue with your loved ones," said Dr. Amy D'Aprix, BMO Life Transition Expert. "Being proactive will help you remain in control, rather than having to deal with an unexpected move when you're not prepared."

There are several factors to consider when making the decision to downsize or not, including:

Your Health

Although health matters may be hard to predict, it is important to think about what you might need to do if your health status changes in the upcoming years. A good place to start is to ask yourself the question, "If there were a shift in my healthy or mobility..."

-- Could you retrofit your current home?
-- Where might you consider living if your current home no longer makes
sense?
-- Would you feel comfortable receiving professional assistance in your
home?

A Change in Location

A change in location can greatly impact your day-to-day activities and social interactions, and will often determine the lifestyle you lead. Some retirees would prefer to live in a group setting, while others would like to live in a more urban area with easier transport. Consider the following if you are thinking of moving:

-- Will you still be close to family and friends and have adequate social
support?
-- Do you want to be responsible for the upkeep and maintenance of your
property?
-- If you become ill or start having mobility issues, will you be isolated
in your current or new location? Will you be too far away to receive
timely assistance?
-- Where are your main service providers located (bank, doctor,
hairdresser)? Will a change in location provide any inconvenience?

Financial Considerations

Laura Parsons, Mortgage Expert, BMO Bank of Montreal, notes that, for those considering downsizing, many financial factors need to be considered, including costs related to property maintenance and the possibility of renovations to adapt to changes in lifestyle.

"Many Boomers heading into their retirement years may be looking for the lock-and-leave lifestyle. But with convenience comes significant cost considerations, including maintenance, general upkeep and repairs: important factors for preparing yourself financially."

Ms. Parsons added that some may also be weighing their options for adapting or renovating their current home to support them in their retirement years; she suggested that Boomers speak to a financial expert about the programs and options available early in the process.

Thinking of downsizing? BMO provides the following advice:

Make a list - List the items you consider to be important in your current and future lifestyle. Include the factors you want to maintain.

Social network - Assess where your social support network is, both for emotional and practical support. Will your move affect your access to them?

Financial considerations - Examine your financial situation and be sure to explore the costs involved in moving or staying put.

Think ahead - Always think about possible next steps involved and how each step will affect you: 'If this changes, what then?'

Communication - Keep the lines of communication open with loved ones. Share your wishes and desires, so there are no surprises when the time comes to make your move.

Leaving a Legacy- Determine how important is it for you that the home remains in the family. Will a move mean that you will have to sell? If so, find out if anyone in your family is interested in purchasing it.

For more information on planning for retirement, please visit http://www.bmo.com/retirement.

For more information on BMO's home financing solutions, please visit http://www.bmo.com/mortgages.

Get the latest BMO press releases via Twitter by following @BMOmedia.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $477 billion as at October 31, 2011, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

Read more from the original source:
Retirement & Downsizing: BMO Advises on How to Determine Whether or Not to Make the Move

TORONTO, ONTARIO--(Marketwire -02/27/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 50:

Make the most of any available lump sums of cash

If you are fortunate enough to have a lump sum of cash available, there are a few good ways it can be used to help build your retirement nest egg. These include:

1. The RRSP option - An RRSP contribution increases your net worth
because of the tax refund you receive. For example, a $10,000 RRSP
contribution could mean a $4,000 refund if you are in a 40 per cent
tax bracket. This refund could be used by putting it towards your RRSP
for next year, or to pay down your mortgage.
- If you only have limited room left in your RRSP to contribute, you
could top up the RRSP to your limit and invest the balance in a
TFSA.
2. The TFSA option - If you do not need to pay down your mortgage and
have already maximized your RRSP contribution, a TFSA is a great
option.
- If you are in a low tax bracket, contributing to a TFSA might be
the best option; you would not benefit greatly from an RRSP tax
refund, and you have more flexibility and no tax impact should you
need to access the funds in your TFSA.

Ask your financial planner or investment advisor to help you make the best choices.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

More here:
BMO Retirement Tip of the Day: Use a Cash Windfall Wisely