SARASOTA, Fla., Sept. 6, 2012 /PRNewswire/ --According to a recent report conducted by The American College, forty percent of small business owners have no retirement savings or pension plan in place. Furthermore, the study found that three-fourths of those owners have no written plan as to how they intend to fund their retirement.1

Small business owners know the value of a solid business plan. Unfortunately, too many of those entrepreneurs neglect to place the same effort in planning for their retirement. Business owners focus so much on growing and maintaining their business, that often their own retirement is put on the back burner.

"Business value can fluctuate significantly over the years, so it's important to have personal retirement savings outside of your business," says Dave Maraman, Florida President, M&I, a part of BMO Financial Group. "Additionally, should the unexpected arise, such as a major health issue or needing to sell the business sooner than expected, having a retirement nest egg is important."

Tina DiVito, Head of the BMO Retirement Institute, offers these tips for small business owners on how to effectively save for retirement:

As with any investment, you should consult with a tax advisor to determine what works best for your personal goals and financial situation.

"Although it's tempting to concentrate solely on investing in their business, small business owners owe it to themselves and their family to have personal retirement savings to help ensure a comfortable retirement," says DiVito.

To learn more about how to financially prepare for retirement, please visit: http://www.bmoharris.com/retirementinstitute

About BMO Harris Bank Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

United States Department of Treasury Regulation Circular 230 requires that we notify you that this information is not intended to be tax or legal advice. This information cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. This information is being used to support the promotion or marketing of the planning strategies discussed herein. BMO Harris Bank, a part of BMO Financial Group and its affiliates do not provide legal advice to clients. You should review your particular circumstances with your independent legal and tax advisors.

About the BMO Retirement InstituteThe BMO Retirement Institute, a part of BMO Financial Group,was established in 2008 in Canada to provide thought-provoking insight and financial strategies for individuals planning for, or currently in, their retirement years.

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Is Your Retirement Plan As Strong As Your Business Plan?

LEAWOOD, Kan., Sept 6, 2012 /PRNewswire/ --According to a recent report conducted by The American College, forty percent of small business owners have no retirement savings or pension plan in place. Furthermore, the study found that three-fourths of those owners have no written plan as to how they intend to fund their retirement.1

Small business owners know the value of a solid business plan. Unfortunately, too many of those entrepreneurs neglect to place the same effort in planning for their retirement. Business owners focus so much on growing and maintaining their business, that often their own retirement is put on the back burner.

"It's important to have personal retirement savings outside of your business because the value of that business can fluctuate significantly over the years," says Brad Smith, Kansas City President, M&I, a part of BMO Financial Group. "Additionally, having a retirement nest egg is important should the unexpected arise, such as a major health issue or needing to sell the business sooner than expected."

Tina DiVito, Head of the BMO Retirement Institute, offers these tips for small business owners on how to effectively save for retirement:

As with any investment, you should consult with a tax advisor to determine what works best for your personal goals and financial situation.

"Although it's tempting to concentrate solely on investing in their business, small business owners owe it to themselves and their family to have personal retirement savings to help ensure a comfortable retirement," says DiVito.

To learn more about how to financially prepare for retirement, please visit: http://www.bmoharris.com/retirementinstitute

About BMO Harris Bank

Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

United States Department of Treasury Regulation Circular 230 requires that we notify you that this information is not intended to be tax or legal advice. This information cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. This information is being used to support the promotion or marketing of the planning strategies discussed herein. BMO Harris Bank, a part of BMO Financial Group and its affiliates do not provide legal advice to clients. You should review your particular circumstances with your independent legal and tax advisors.

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Move Retirement Planning Off The Back Burner

MINNEAPOLIS and ST. PAUL, Minn., Sept. 6, 2012 /PRNewswire/ -- According to a recent report conducted by The American College, forty percent of small business owners have no retirement savings or pension plan in place. Furthermore, the study found that three-fourths of those owners have no written plan as to how they intend to fund their retirement.1

Small business owners know the value of a solid business plan. Unfortunately, too many of those entrepreneurs neglect to place the same effort in planning for their retirement. Business owners focus so much on growing and maintaining their business, that often their own retirement is put on the back burner.

"It's important to have personal retirement savings outside of your business because the value of that business can fluctuate significantly over the years," says Steve Weitz, Business Banking Manager Minnesota Region for M&I, a part of BMO Financial Group. "Additionally, having a retirement nest egg is important should the unexpected arise, such as a major health issue or needing to sell the business sooner than expected."

Tina DiVito, Head of the BMO Retirement Institute, offers these tips for small business owners on how to effectively save for retirement:

As with any investment, you should consult with a tax advisor to determine what works best for your personal goals and financial situation.

"Although it's tempting to concentrate solely on investing in their business, small business owners owe it to themselves and their family to have personal retirement savings to help ensure a comfortable retirement," says DiVito.

To learn more about how to financially prepare for retirement, please visit: http://www.bmoharris.com/retirementinstitute

About BMO Harris Bank

Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

United States Department of Treasury Regulation Circular 230 requires that we notify you that this information is not intended to be tax or legal advice. This information cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. This information is being used to support the promotion or marketing of the planning strategies discussed herein. BMO Harris Bank, a part of BMO Financial Group and its affiliates do not provide legal advice to clients. You should review your particular circumstances with your independent legal and tax advisors.

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Retirement Plan Just As Important As Business Plan

ST.LOUIS, Sept. 6, 2012 /PRNewswire/ -- According to a recent report conducted by The American College, forty percent of small business owners have no retirement savings or pension plan in place. Furthermore, the study found that three-fourths of those owners have no written plan as to how they intend to fund their retirement.1

Small business owners know the value of a solid business plan. Unfortunately, too many of those entrepreneurs neglect to place the same effort in planning for their retirement. Business owners focus so much on growing and maintaining their business, that often their own retirement is put on the back burner.

"It's important to have personal retirement savings outside of your business because the value of that business can fluctuate significantly over the years," says Susan Kalist, Senior Vice President, M&I a part of BMO Financial Group. "Additionally, having a retirement nest egg is important should the unexpected arise, such as a major health issue or needing to sell the business sooner than expected."

Tina DiVito, Head of the BMO Retirement Institute, offers these tips for small business owners on how to effectively save for retirement:

As with any investment, you should consult with a tax advisor to determine what works best for your personal goals and financial situation.

"Although it's tempting to concentrate solely on investing in their business, small business owners owe it to themselves and their family to have personal retirement savings to help ensure a comfortable retirement," says DiVito.

To learn more about how to financially prepare for retirement, please visit: http://www.bmoharris.com/retirementinstitute

About BMO Harris Bank Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

United States Department of Treasury Regulation Circular 230 requires that we notify you that this information is not intended to be tax or legal advice. This information cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. This information is being used to support the promotion or marketing of the planning strategies discussed herein. BMO Harris Bank, a part of BMO Financial Group and its affiliates do not provide legal advice to clients. You should review your particular circumstances with your independent legal and tax advisors.

About the BMO Retirement InstituteThe BMO Retirement Institute, a part of BMO Financial Group, was established in 2008 in Canada to provide thought-provoking insight and financial strategies for individuals planning for, or currently in, their retirement years.

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Retirement Wake Up Call For Business Owners

For women heading toward retirement, theres good news and bad news. The good news is theyre likely to be blessed with long life. The bad news: They may not be able to afford it.

SEE ALSO: 12 Retirement Strategies for Women

That, in effect, is the conclusion of a recent study by the U.S. General Accounting Office. Despite the increase in womens workforce-participation rates over the past two decades, the poverty rate in 2010 for women 65 and older was 9% -- nearly twice the rate for men, at 5%. And while 6% of widowers lived in poverty, 12% of widows were poor.

According to the GAO report, women have a tougher time saving for retirement in part because they take time out from the workforce to care for family members, and when they do work they have lower earnings than men. Other studies bear this out: Women who are 50 to 69 have about 20% less in retirement savings than men in that age group, according to a recent report by the ING Retirement Research Institute. Another report notes that while half of baby-boomer men have retirement savings of at least $200,000, only 35% of female boomers have that level of savings.

Women who are five to ten years from retirement can take some steps to improve their financial readiness. Many of these moves can apply to women of all ages.

Maximize your own retirement benefits. If youre looking for a new job, make sure it has a good retirement plan. Its unlikely these days that you will find a job with a pension plan that guarantees a stream of income in retirement. But you can seek out employers that will match all or part of your contributions to a 401(k) or a similar employer-based plan. A company match is free money.

Even when married women are working, women tend to set aside a smaller amount of their income than men, says Suzanna de Baca, vice-president of retirement and wealth strategies at Ameriprise Financial Services. The couple may decide that the womans income is more discretionary, she says. But any woman who is working should contribute as much as possible to an employer-sponsored retirement plan. If her employer doesnt offer a retirement plan, de Baca says, she should set up an IRA.

Indeed, Kelly O'Donnell, vice-president at Financial Engines, which provides asset management for 401(k) plans, told the U.S. Senate Special Committee on Aging at a recent hearing that men tend to save nearly twice as much as women. "Among our clients, the median 401(k) account balance for men age 60 and older is $82,000 and only $46,000 for women age 60 and older," O'Donnell said.

In 2012, you can set aside up to $17,000 (plus up to $5,500 in catch-up contributions if youre 50 or older) in a 401(k). If youre self-employed, you can make deductible contributions to a retirement plan, too, such as an individual 401(k). If you dont have access to an employment-based retirement plan, you can make $5,000 ($6,000 if youre 50 or older) in deductible contributions to a traditional IRA, or you make the same amount of after-tax contributions to a Roth IRA, which grows tax-free.

Working longer can help maximize your Social Security benefits. The Social Security Administration uses your highest 35 years of earnings to calculate your benefit. Any zeros -- perhaps for years you left the workforce to care for children -- will pull down the average. If you keep working, youll be able to raise your benefit -- and maybe knock out a zero or two.

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The Rules of Retirement for Women

(MoneyWatch) Most people spend more time planning their next vacation or car purchase than planning for their retirement and rest-of-life. That's a huge mistake. Neglecting to plan for a period of your life that might last 20 years or more -- during which you have to rely mostly on your accumulated financial resources -- could be the biggest mistake you'll ever make.

And while it's an ambitious task to plan for such an extended period of time, it's a necessary one. So it makes sense to spend a significant amount of time and effort to do the job right.

There are a number of important issues you'll need to research and think about, including:

One important step many people overlook during the planning phase involves the amount of money you need to save for retirement. According to the 2012 Retirement Confidence Survey conducted by the Employee Benefit Research Institute (EBRI), only 42 percent of Americans have actually calculated how much money they'll need to save for retirement. An equal percentage of Americans simply guess at this amount -- and they usually guess too low. The unfortunate result is that these people will most likely exhaust their retirement savings while they're in their 70s or 80s, and will then need to make drastic changes in their lifestyle because they no longer have enough money to maintain their standard of living.

10 Best Places to Retire

The EBRI study also showed that people who calculate how much savings they'll need are more confident about their ability to retire. So try calculating how much money you really need to save by following the steps in this post.

If you do a good job addressing the financial aspects of retirement, it's likely that your financial planning will quickly morph into life and career planning, too, especially if you see that your financial resources aren't enough for a traditional retirement of "not working." Finding that out now, however, is a good thing, since it helps you focus on what you really want for the rest of your life and what type of work you can do to generate those needed funds so that you'll be both happy and financially secure.

Retirement planning: How to do it right 4 retirement planning mistakes you may be making 5 biggest retirement planning mistakes 5 tips for using retirement calculators

While it might take some time to do it right, planning ahead means you'll learn how you can have the best possible rest-of-life and avoid common financial and lifestyle mistakes. If you take steps to avoid these retirement planning mistakes now, you can focus on what's really important -- what you want for the rest of your life and the legacy you might leave.

Want to avoid making any retirement planning mistakes? I've prepared a free, online series of posts titled 12 weeks to plan your retirement. These posts guide you through the important decisions you need to make to plan for a happy, secure future.

Link:
The biggest retirement planning mistake of all

It's a retiree's nightmare: outliving the assets in a retirement portfolio.

Between historically low interest rates dragging on fixed-income yields and uncertainties about taxes, not to mention the threat of future inflation and volatile markets that send skittish investors seeking shelter, retirees who are living longer are finding it challenging to keep their portfolios up to speed.

Recent calculations from the Employee Benefit Research Institute show that roughly 44% of those born between 1948 and 1978baby boomers and Generation Xwon't have adequate retirement income, and that is assuming interest rates go back up in 2014. But the current environment is weighing even on those heading into retirement with what seems like a tidy sum.

Retirees need an efficient plan of attack to squeeze all the juice out of their portfolios, ensuring they have sufficient assets for their golden years. Here are some strategies:

Retirees should map out a budget for necessitiesinclude everything from housing to food, transportation, health expenses and utility billsand set aside a chunk of a portfolio for these costs.

Many planners suggest putting funds to cover three to five years' worth of expenses into safe and liquid vehicles, so the retiree has cash on hand, even if the market drops.

"That way you don't have to liquidate in a down environment," says Marty Leclerc, portfolio manager for Barrack Yard Advisors in Bryn Mawr, Pa.

Even though money-market funds are returning basically nothing, funds earmarked to be used within three years should go into these instruments, says Michael Gibney, a financial planner in Riverdale, N.J. "There is no reason to put money that will be used within a short time period at risk," he says.

For five-year time frames, look to add in a short-term bond fund or certificate of deposit to gain a little more yield, he says.

With many people living well into their 90s, retirees need to think carefully about how to protect themselves from running out of money in their later years.

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Making Your Retirement Assets Last

Almost six months after Hartford Financial Services Group Inc. (HIG) started looking for suitable divestiture opportunities for its Individual Life and Retirement Plans segments as well as the Woodbury Financial Services unit, the company announced an agreement to sell the Retirement Plans business to Massachusetts Mutual Life Insurance Company (MassMutual). The divestiture is expected to close by the end of the year, subject to the attainment of regulatory approval and other customary closing conditions.

Hartford will receive a cash ceding commission of $400 million for the transaction. However, the amount is open to adjustment before the completion of the sale.

Although the transaction is unlikely to have a material impact on the companys results on a reported basis, it is expected to boost the net statutory capital, including ceding commission and lower risk-based capital requirement, by about $600 million. The impact on the financials can be revised at the time of closure of the transaction to include the impact of market conditions, Hartfords results as well as other adjustments.

Following the closure of the deal, Hartfords Retirement Plans business will be taken over by the Retirement Services Division of MassMutual. However, the agreement allows Harford to sell new retirement plans during the transition period. MassMutual will cover the risks and expenses related to the new plans under a reinsurance agreement. The Goldman Sachs Group Inc. (GS) and Greenhill & Co. Inc. (GHL) are acting as Hartfords financial advisors for the deal.

The deal is an outcome of Hartfords plan, announced in March this year, to divest its Individual Life and Retirement Plans segments along with Woodbury Financial Services under intense pressure from its largest shareholder, John Paulson. Woodbury is an indirectly-held, wholly-owned retail broker-dealer subsidiary, included in the Individual Life segments distribution network.

Subsequently, in August, Hartford entered into a strategic alliance with American International Group Inc. (AIG) to sell Woodbury. The deal is expected to consummate by the end of this year, subject to approval by regulatory bodies. According to Reuters, Hartford will receive $90 million pursuant to this acquisition. It will also receive an additional $25 million as dividend from Woodbury.

Currently, Hartfords shares carry a short-term Zacks #3 Rank (Hold). Also, we maintain our long-term Neutral recommendation on the stock.

Read the Full Research Report on HIG

Read the Full Research Report on GS

Read the Full Research Report on GHL

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Hartford Sells Retirement Plans Biz

I'm 46 years old and for the past 22 years I've put 6% of my paycheck into my 401(k). Will I have enough to live on when I retire at 67 -- Diana B., Va.

Getting an early start on saving and sticking with it is by far the best way to gain the inside track to a secure retirement.

So the simple fact that you've contributed to your 401(k) every year since the beginning of your career leaves you in a much better position than if you had procrastinated or not saved at all.

But without knowing how much you've actually accumulated in your 401(k), I can't really say whether you're on track to retire at 67.

Fortunately, you can gauge that pretty easily yourself. Just go to a good online retirement calculator and enter such information as your salary, the current balances of your 401(k) and any other retirement accounts, a breakdown of how your savings are invested and the percentage of pay you plan to set aside annually over the next 20 years.

Once you've plugged in those figures, the calculator will estimate the probability that your projected savings plus Social Security will be able to generate enough income to support you throughout retirement

Ideally, you'd find that chances are good that you'll be able to retire on schedule at something close to your pre-retirement standard of living if you continue your current regimen.

But unless your employer has been supplementing your savings with generous employer matching funds over the years, I doubt that will be the case. Typically most people need to save between 10% and 15% of their annual income throughout their career to have a realistic shot at a secure and comfortable retirement. I suspect that a 6% annual savings rate will leave you a bit short of where you should be.

Still, even if you find that you're not as prepared for retirement at this point as you'd like, there's no reason to panic. You've still got several options for improving your prospects, and plenty of time to turn things around.

The single most effective move you can make (which I'm sure will come as no surprise) is to boost the percentage of pay that you sock away each year.

Link:
Retirement savings: Am I on track to retire at 67?

By Zachary Tracer - 2012-09-04T21:22:48Z

Hartford Financial Services Group Inc. (HIG) agreed to sell a retirement-plans business for $400 million after billionaire investor John Paulson pressured the insurer to improve results.

The sale to Massachusetts Mutual Life Insurance Co. may be completed by year-end, Hartford said today in a statement. The deal, structured as a reinsurance transaction, will boost capital by $600 million and wont affect financial results under generally accepted accounting principles, the Hartford, Connecticut-based insurer said.

Hartford Chief Executive Officer Liam McGee, 57, agreed this year to sell a broker-dealer unit and individual-annuities distribution business. Prudential Financial Inc. emerged last month as lead bidder for Hartfords individual life-insurance business, people with knowledge of the matter said then.

Hartford could use cash proceeds from the sale of its life and retirement units to reduce debt, support ongoing businesses and repurchase stock, Jay Gelb, an analyst at Barclays Plc, wrote in an Aug. 20 research note. Ongoing core units should deliver improved and stable returns.

Paulson, whose hedge fund is Hartfords largest investor, had called on the seller of life insurance and property-casualty coverage to do something drastic to boost the stock price, which fell 39 percent in 2011. McGee responded with plans to sell or shutter parts of the insurer.

We continue to make good progress executing on our strategy, McGee said in the statement. With the Hartfords sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value.

Hartford advanced 2.2 percent to $18.09 at 4:30 p.m. in New York. It had gained 8.9 percent this year through the close of regular trading.

The transaction will help policyholder-owned MassMutual expand its retirement-plan business to smaller clients, CEO Roger Crandall said in a telephone interview.

The opportunity to get into that smaller and mid-sized plan market is a real positive for us, Crandall said. There are an awful lot of small companies and small plans out there.

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Hartford to Sell Retirement Plans for $400 Million