MILWAUKEE, Oct. 24, 2012 /PRNewswire/ -- BMO Retirement Services has introduced a personalized retirement income calculator that provides information to regularly reassure plan participants that their retirement income goals are on track.

"The new, fully-automated BMO calculator is designed for all participants, but we especially want to target those who are at risk of giving up because they are daunted by the size of their goal," said Todd Perala, Director of Relationship Management. The calculator can be accessed by plan participants at mybmoretirement.com.

Rather than present a total retirement dollar figure, which can dishearten participants, the BMO calculator enables employees to review their estimated savings in terms of monthly retirement income. "Plan sponsors have indicated to us that a monthly income perspective, instead of a total sum perspective, can be a critical distinction as to how plan participants perceive their goal," Perala observed.

BMO's calculator is designed to pop up when a participant logs onto an account, and is reset to reappear once every 30 days. According to Perala, this may be especially helpful to the more than the estimated 60 percent of US workers who have never calculated how much they need to save.

The calculator is fully personalized for each participant, incorporating that individual's current balance, prospective retirement age, estimated length of retirement, current pre-tax income and three other key measures. Auto step-up features, the availability of catch-up contributions, and any company contributions can be built into the BMO calculator based on plan design. This information enables participants to access a monthly income projection at retirement based on current savings in the plan, paired with monthly income the participant is expected to need at retirement.

The calculator also gives employees the ability to adjust the calculation to include other assets or review different savings scenarios. "Participants are prone to stop saving when they are overwhelmed by the magnitude of their savings goal," said Perala. "Among the numerous calculators available to plan sponsors and participants, BMO's newest entry directly addresses this widespread challenge."

About BMO Retirement Services BMO Global Asset Management is a global, award-winning provider of retirement, trust and custody services.

BMO Global Asset Management provides holistic, solution-driven services to our institutional and high-net-worth clients and the BMO family of mutual funds. With a nearly 40-year legacy of fiduciary service and goal of promoting retirement readiness to our more than 500,000 participants in over 1,500 retirement plans our clients include retirement plans, Taft-Hartley funds, government and public funds, not-for-profit organizations and family offices. BMO Global Asset Management's commitment to service excellence has led us to be recognized by Pension & Investments as one of the Top 100 largest asset managers.

We are a part of BMO Financial Group (BMO), a fully diversified financial services firm with $542 billion total assets and more than 46,000 employees as of July 31, 2012.

BMO Retirement Services is a part of BMO Global Asset Management and a division of the BMO Harris Bank N.A., offering products and services through various affiliates of BMO Financial Group.

Originally posted here:
BMO Retirement Services' New Retirement Income Calculator Seeks to Assist Plan Participants to Reach Their Retirement ...

I'm in my late 20s and am behind in preparing for retirement. What's the best way to catch up -- Taylor, Winston Salem, N.C

I'm happy to see someone so young so concerned about planning for retirement. But let's not get carried away here. If you're still in your 20s, it's hard to imagine that you could have fallen very far behind.

You're at the beginning of your career, which means you've got a good 35 to 40 years of working, saving and investing ahead of you. So even if you've done nada to date, there's no reason to panic.

That said, you don't want to put this off any longer, and the best way to get started is to realize from the get-go that the single best way to assure yourself a comfortable retirement is to save as much as you can on a regular basis.

That's true whether you're behind and trying to get back on track, or if you're already on course and want to stay there.

Unfortunately, a lot of people are under the mistaken impression that smart investing is the surest route to retirement security. I suspect that's because the financial press spends so much time obsessing about the markets and giving the impression that you can easily boost your returns by deftly shifting your money around.

If only it were so. But the fact is that while investing is certainly important, increasing the amount you save is a much more effective method of improving your retirement prospects.

Speaking of saving, it just so happens that the U.S. Senate has designated this week as National Save For Retirement Week. If you're into florid legislative language with "whereas this" and "resolved that," you can take a look at the actual resolution. But if you prefer to do something more practical to jump start your retirement planning, I suggest you do the following.

First, get a handle on how much you should be salting away each year. With retirement still so far off there's no way to know precisely how much you need to set aside. But you want to at least arrive at a ballpark figure, which you can do by going to our What You Need To Save Tool and plugging in your age, salary and the amount you've already saved.

When you're further along in your career, try a more robust retirement calculator that allows you to get a more customized assessment of whether you're saving enough, how your savings are invested, how much you expect to collect in Social Security and pensions and your planned retirement age. For now, though, a rough estimate is just fine.

Originally posted here:
Retirement saving: Catching up in your 20s

This story is part of Money magazine's Retirement Guide 2013, where you'll find strategies to guide you through the last stretch, starting at 10 years out, then five years, one year, and, finally, your first year of leisure.

With just five years left before you retire, you need to begin solidifying your plans. Make sure you're still on track, but also nail down where you'll live (the largest expense in retirement) and how you'll meet your health care needs (the second biggest).

What to do

See if you need a course correction. A lot can happen between years 10 and five that could necessitate a change in plans -- including an illness, a job loss, or an extended bear market. Or maybe you just haven't managed to accrue the nine-times-salary savings that would be ideal at this point.

You're not out of luck: You may be able to retire on less than you'd hoped or get to your goal by working longer.

A one-time review with a financial planner who charges by the hour (find one at napfa.org) can be worth the $1,000 or so investment to help you figure out where you stand.

At a minimum, plug your info into T. Rowe Price's Retirement Income Calculator (troweprice.com) to see your chances of retiring with your desired income.

Examine health care costs. Better include an estimate for health insurance and out-of-pocket care costs in your income-needs projections.

If you'll retire before Medicare kicks in at 65, you could have a big expense ahead. For a 62-year-old couple with one spouse in ill health, premiums run up to $2,300 a month on the individual market, according to eHealthInsurance.com.

Exchanges created under the 2010 reforms may reduce costs, but you'll still pay more than you do now. Have an independent agent (find one at nahu.org) price plans for you.

Excerpt from:
Retirement Guide: 5 Years Left? Do This Now

This week is National Save for Retirement Week, an educational campaign to raise public awareness about the importance of long-term retirement planning.

The program, created by bipartisan Congressional action, encourages Americans to utilize retirement savings and investment plan strategies. The week also encourages individuals to reflect on their current financial situations and their potential for a secure retirement in the future.

Below, some surprising statistics and insights on where Americans stand today, as well as their expectations, fears, and hopes about retiring:

There are varying estimates of how much money an individual needs to retire. One guideline suggests $1 million, while another recommends you save 10 times your last annual salary. But theres no one-size-fits-all approach, and youll have to consider a variety of factors to determine whats best for you and your familylike your age and current annual income, desired retirement age and income, and expected annual pension and Social Security. Then, of course, your personal spending habits weigh in.

There are plenty of retirement calculators available, such as CNNMoneys calculator, AARPs retirement predictor, and SmartMoneys retirement planner. Working with a financial adviser can also help determine how much money youll need.

According to a Life Insurance and Market Research Association study, 49 percent of Americans say they arent contributing to any retirement plan. Those least likely to save for retirement: individuals between ages 18 and 34.

What are Americans doing instead? In another survey by Wells Fargo, planning a home remodel and planning a vacation ranked higher on the list of priorities within the past year than planning for retirement (which ranked third).

Apparently 80 is the new 65 for many middle-class Americans when it comes to retirement. One-third of survey respondents plan to delay retirement till age 80 or older, according to a Wells Fargo study of 1,000 adults with income less than $100,000. Thats up from 25 percent who planned to retire at age 80 during last years survey.

Another study by My New Financial Advisor, a service that connects clients with advisers, suggests the average baby boomer will retire at age 75. Some of the top issues preventing an earlier retirement: loss of income, insufficient savings, low returns, high taxes, past-due taxes, and low wage growth.

According to a Wells Fargo study, 70 percent of middle-class Americans arent comfortable investing retirement money in the stock market. When survey respondents were asked what theyd do if given $5,000 to invest for retirement, only 24 percent said theyd invest in stocks compared to 40 percent who would choose a CD or savings account and another 22 percent who would invest in gold or precious metals.

Go here to read the rest:
8 Surprising Truths About Retirement

After retirement, you need to decide whether you should roll over your 401(k) to an IRA. Once you are no longer working at a company, it's often a good idea to move your money to a retirement account that is not tied to your former employer. Here are seven reasons to rollover your 401(k) to an IRA:

Cashing out is a bad idea. On each withdrawal you'll have to pay tax (marginal rate) on the lump sum and a 10 percent penalty if you're under age 59 1/2. It's better to take distributions over many years to minimize the tax. Delaying withdrawals as long as you can also gives your retirement fund more time to grow.

Lower fees. Your 401(k) plan has administrative fees which will cut into your investment returns over the years. If you roll your money over to an IRA, you may be able to avoid paying administrative costs, especially if you don't sign up for investment management at a brokerage. Also, some 401(k) plans will charge an extra maintenance fee once you are no longer an employee. Check with your company to see if this fee applies to your plan.

401(k) changes. Your 401(k) investment choices, trustees, and fees can all change at any time. If you don't work there, you might not get the latest information as quickly as those who do. When these big changes are scheduled to occur, the employer usually holds information sessions to communicate the changes. If you don't work there, these in-person sessions may not be available to you. If you don't pay close attention to your 401(k) statements, you might not even know about the changes until after they occur.

More control. Most 401(k) plans have restrictions. My previous employer will not let me invest the employer contribution portion of my 401(k) account. This portion is invested in a "global diversified" investment that has no ticker. I'm not willing to live with these restrictions once I'm no longer an employee. I want total control of my investments, and that's why I'm in the process of rolling over my 401(k).

Employer stock. It's hard to believe, but many employees still have a large portion of their 401(k) invested in their employer's stock. Some companies invest their employer contribution straight into company stock. This is a bad idea because there are too many eggs in that basket. If your employer goes out of business, you could lose not only your job, but also your retirement savings. Read up on Enron if you think investing in your employer's stock is a good idea.

Better investment choices. Most 401(k) plans have very limited investment choices. Unfortunately, many of these funds are of the high fee and high expense ratio variety. If you roll your money over to an IRA, then you can invest in anything you want to. Some investors might want to invest in individual stocks, and that's easy to do in an IRA. I'm more partial to low-fee Vanguard funds, and I can pick any of them in an IRA.

Consolidate and simplify. Workers who frequently change jobs can end up with several different 401(k) accounts if they don't roll them over into an IRA. It's much easier to check on your investments if they are all in one IRA instead of many 401(k)s. A single IRA also makes it much easier to revamp your investments. You will be surprised at how much in fees you are paying as your 401(k) balance grows. I found out I paid $1,754.91 per year in fees, and that's not acceptable.

There are many things to deal with when you leave your job or career, but don't forget about your retirement account. This could be your largest investment if you work with one employer for a long time.

Joe Udo is planning an exit strategy from his corporate job by reducing expenses and increasing passive income. He blogs about his journey to early retirement at Retire by 40.

See the rest here:
7 Reasons to Rollover Your 401(k) After Retirement

NEW YORK, Oct. 17, 2012 /PRNewswire/ -- Mutual of America is expanding its current "Save More for Your Retirement" customer education campaign to shine a spotlight on National Save for Retirement Week, which Congress has designated for the week of Oct. 2127.

The Company's "Save More" campaign emphasizes the advantages of participating in a workplace retirement plan, including how it can help individuals save more and plan for a financially secure future.

Throughout the week, and beyond, Mutual of America will conduct on-site group presentations for its clients and their employees, highlighting the following points:

In addition, the Company will provide clients and their employees with an assortment of print and electronic materials that offer insights on saving for retirement and will spotlight educational articles and retirement calculators online at mutualofamerica.com.

"National Save for Retirement Week is a great opportunity for individuals to think about where they're at with their retirement goals and how to effectively plan and save for their future," says William Rose, Mutual of America Executive Vice President and Chief Marketing Officer. "Mutual of America is dedicated to providing our customers with the knowledge, resources and help needed to achieve their goals, before and during retirement."

About Mutual of America

Mutual of America specializes in providing retirement products and related services to organizations and their employees, as well as to individuals. Since 1945, Mutual of America has remained committed to offering plan sponsors, plan participants and individuals carefully selected, quality products and services at a competitive price and the personal attention they need to help build and preserve assets for a financially secure future. For more information, visit mutualofamerica.com.

Before investing in our variable accumulation annuity contracts, you should consider the investment objectives, risks, charges and expenses (a contract fee, Separate Account expenses and Underlying Funds expenses) carefully. This and other information is contained in the contract prospectus or brochure and Underlying Funds prospectuses. Please read the prospectuses and brochure carefully before investing. The prospectuses and brochure can be obtained by mail or by calling 1-800-468-3785.

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Mutual of America Expands Retirement Education Campaign; Highlights National Save for Retirement Week

This isn't your daddy's retirement. And it's not for the faint of heart.

Do-it-yourself 401(k)s, IRAs and multiple-choice Medicare supplement plans have taken the place of the company pension plan, retiree health benefits and a gold watch.

And working into retirement -- in the form of a second (or third) career or part-time job -- is becoming the norm.

"It's a changing landscape," says Sara Rix, a senior strategic policy adviser with AARP.

But this evolution hasn't happened overnight, she says. "Some of the changes we're seeing began 20 to 25 years ago."

One major adjustment: People are working longer. In 1985, there was fewer than 1 in 5 65- to 69-year-olds in the workforce, Rix says. Today, it's almost 1 in 3 -- a 74% increase.

Some would-be retirees need the money, says Rix. Others enjoy their jobs and want to keep at it. And, for some, it can be a combination of the two.

Whether you're 25 or 75, you should know these seven things about retirement in the new millennium.

You're on your own

See the original post:
Seven Things You Must Know About the 'New Retirement'

Video Link: https://www.youtube.com/watch?v=RB2wqBXMljY

15-10-2012 17:38 Financial Advisor Jeff Vogan In Mesa & Tucson Arizona discusses retirement life insurance strategies. When the nest empties, the need for life insurance diminishes. Baby boomers and retirees should think strategically about existing life insurance policies and future life insurance needs.

Originally posted here:
Do I Need Life Insurance in Retirement Financial Planner Jeff Vogan Tucson Mesa Arizona - Video

Video Link: https://www.youtube.com/watch?v=G0xHkGK1zIU

16-10-2012 10:14 Stephen A. Smith and Skip Bayless discuss if Ray Lewis' season-ending injury should lead to his retirement.

More here:
Should Ray Lewis Retire? - Video

As I was watching my favorite team play last week, which didn't involve much actual playing on their part, I kept seeing football-meets-retirement-planning analogies everywhere.

Pay attention to your o-line. Protecting the quarterback with a strong offensive line will repay you with superior returns. A quarterback with his head on straight can concentrate on making good passes rather than worrying about some crazy linebacker breaking through for a sack.

If you're quarterbacking your own retirement savings, your retirement strategy is your offensive line. Sure, your line will periodically fail and let someone through. (And you will occasionally drop the ball or make a bad pass.) But your retirement strategy, like a good offensive line, will allow you to keep your head in the game and feel confident in the next down. It will keep you from looking over your shoulder every time the market shows a little volatility.

Look at your quarterback rating. Like quarterbacks, good mutual fund managers should have a steady track record. Don't choose a quarterback or fund manager who's streaky--you know the guy with the great arm who turns into a head case when he faces a strong blitz. Good managers perform consistently and predictably year after year.

Play all four quarters, and don't be afraid to run up the score. Unlike football, it's good sportsmanship to run up the retirement savings score, so play your first string the whole game. In other words, keep your head in the game the whole time. Don't become overly confident when you notice you've got a decent lead--or tidy sum in your nest egg. Keep pushing. Keep strategizing. Keep researching. Keep seeking advice and increasing your contributions. Keep playing defense. Keep looking for ways to earn more, spend less, save more, invest better and take less risk. Keep your head in the game for all 60 minutes.

Every team has a kicker, but some kickers add a lot more value. When two well-matched teams meet, a good kicker can make all the difference. In retirement planning, the highest-risk asset class in your allocation is akin to a kicker. It's not taking up a huge percentage of playing time (or your allocation), but a high-quality investment from the aggressive end of the asset class spectrum could put the ball through the goal posts when poorer-quality funds from that asset class are choking.

Run the ball a lot. It's not fancy, but it's reliable. Trick plays and big passes won't serve you well in retirement planning. Pound forward with consistency. Sure, you'll throw too. Sometimes you'll notice changing market conditions, and you'll run the option, reallocating to take advantage of whatever the economy (or the defense) is throwing your way. But, even when you call an audible, play with the same overarching strategy that focuses on consistent, long-term results. Remember that your choices during the first three downs of a series will determine where you are for the fourth. Make good, consistent choices for three downs so that you're left with several good choices on fourth down.

Don't go for the Hail Mary if you're nearing retirement and the score isn't where you'd hoped. Unlike football, where points cannot be lost, aggressive and foolish retirement plays could set you back years. It's fun to think about retirement planning in terms of football, but your retirement strategy is serious business. Football is a game. A poor season or a big loss will hurt when your favorite team is on the losing end, but it's still just a game. Retirement planning is your life, and you only get one lifetime to save and invest for retirement, so make it count.

And remember this: even when you face setbacks, the game isn't lost. Lucky for you, you can influence the retirement strategy game because you can control the length of time you play, the quality of the players, the number of players, the amount of money you spend on them, and so much more. My favorite football coach wishes he could do that--especially last week.

Scott Holsopple is the president and CEO of Smart401k, offering easy-to-use, cost-effective 401(k) advice and solutions for the everyday investor. His advice has been featured on various news outlets, including FOX Business, USA Today and The Wall Street Journal.

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Use Football-Style Retirement Planning