Retirement planning rules tend to be very specific to individuals financial situation, lifestyle, retirement plans and location. But there is one rule experts tend to agree on: Pay off your mortgage before entering your golden years.

When you look at where Americans spend their money, 30% to 40% is on housing, says Joseph Montanaro, a certified financial planner at USAA. When you look at retirement, you can create a much smoother income plan when you dont have that requirement. For retirees, reducing fixed expenses like housing provides more financial flexibility and less stress on an investment portfolio.

Most people in retirement are on a fixed income made up of savings, investments like a 401(k) or IRA, Social Security benefits and pensions. Not having to worry about making monthly mortgage payments can provide peace of mind, says Michael Eisenberg, a certified public accountant in Los Angeles.

Not having a mortgage payment will also free up cash flow. When you retire, the outflow of dollars changes as you may have other expenses, such as elevated health- care costs and discretionary goals. If you sell the house, all that cash will be available for other purposes, says Eisenberg.

If you dont sell your house, there still are other things you can do with that asset if necessary. In retirement, you cant get unsecured debt because you dont have any income, says chartered financial analyst Robert Stammers, director of Investor Education for the CFA Institute. You can get secured debt, and youll have your house.

How to Pay Off Your Mortgage

Before working to pay off your mortgage beyond the monthly payments, Stammers suggests eliminating other consumer debt like outstanding credit card bills and creating an emergency fund that covers six months of expenses.

When determining the best way to pay your mortgage early, experts recommend keeping your available cash in portfolio accounts. If youre going to liquidate your accounts to pay off your mortgage, ask whether it makes sense to use that money and leave yourself with no cushion, says Eisenberg. Youre leaving yourself cash poor.

Experts also recommend diverting extra cash to pay off your mortgage while youre working by changing the amount and when you pay, here are a couple options:

Accelerated Mortgage Payments. Split your mortgage payment in half and make payments every two weeks, says Stammers. Youre matching your payments with your cash flow, and youll make an extra two payments [or one monthly mortgage payment] each year. If you have a $225,000 mortgage at 5% for 25 years, for example, by paying your mortgage biweekly, you can shorten your mortgage by about three to four years and save about $28,000 in interest payments.

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How to Pay Off Your Mortgage Before Retirement

(MoneyWatch) Although most Americans aren't confident about their ability to retire, people in other countries are even more pessimistic about their retirement prospects, according to a recent survey by Accenture.

Well, duh! I'd be pessimistic, too, if I lived in Mexico, Russia, or Spain. The consulting firm found that 92 percent, 92 percent, and 91 percent, respectively, of respondents in those countries were doubtful about their retirements. South Korea registered the highest level of pessimism, at 95 percent.

That makes sense. As the survey shows, people living in countries with struggling economies and that are experiencing political turmoil can't be expected to feel particularly optimistic about what the future will bring.

Worried about outliving your money? Americans aren't alone 8 ways to fight the system -- and profit Survey: Fewer than 1 in 4 trust financial system

On the other hand, democracy, freedom of speech, and respect for the law are characteristic of the countries with the lowest levels of pessimism about retirement. The countries with the lowest levels of pessimism are the U.K., Germany, Australia, and the U.S, with pessimism levels at 65 percent, 66 percent, 69 percent, and 70 percent respectively.

Besides being just interesting stuff to talk about at your next family or neighborhood get-together, what do these survey results mean to you? When you think about the observations I just made, it's easy to see that an important part of your retirement planning is voting and supporting a country that's run based on the rule of law (as opposed to countries run by dictators or the privileged elite). That's because only countries with strong economies and citizens with high confidence in its legal and financial systems can afford to have a large portion of their population not working, yet still consuming a significant part of the national output.

With that in mind, it's essential that we provide support for Social Security and Medicare, and think about the level of taxes needed to support these valuable programs. It's also important to consider income disparity when thinking about income taxes. And it's critical to think about our health care delivery system and the appropriate amount of government intervention that's needed to provide care for our citizens.

Another essential element to consider: the appropriate amount of regulation that's needed to balance consumer protection with support for innovation and service. Even though many people automatically disparage excessive regulation, we need laws and regulations to rein in the most damaging practices at financial institutions. We only need to look at the most recent scandal over global banks manipulating the London interbank offered rate for reasons why people don't trust the financial system. It's clear that a respect for the law was missing in those situations. For our own protection, we need to have laws that are both respected and enforced.

In spite of the retirement challenges that we face, when I think about how other countries are currently faring, I'm very glad that I'm living and retiring in the good 'ol USA! Thanks for listening -- and see you at the voting booth!

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Americans fear retirement less than other people

(MoneyWatch) Have you been inspired by the accomplishments of the Olympic athletes from nations around the world? I certainly have. Their sustained focus, commitment to doing whatever it takes to reach their goals, and attention to details is truly motivating. And although we might not be Olympic-caliber athletes, I think there are ways we can direct this energy to preparing for our retirement years.

The TV coverage offers insights into the intense commitment made by the Olympians. Some start training as early as age 5, while others start in their late teens or early 20s. But they all gladly forgo hours they could have spent in front of the TV or at the mall because they've made a conscious commitment to training for a worthwhile goal they can visualize in their minds.

Planning for retirement is very similar. Some people begin saving for retirement or start a long career with an employer that offers good retirement benefits as early as their 20s. Others don't start planning and saving seriously until their 30s or 40s, but they still make it to the retirement podium stand. One thing's for sure, though: If you don't put in much effort at any age, you'll never reach your goals, whether that's going to the Olympics or achieving a gold medal retirement.

Olympic training takes many aspects. In addition to developing the techniques and skills for their particular events, Olympians spend hours and hours working on endurance and weight training, are careful to get the proper nutrition, and pay daily attention to their mental and emotional state. They develop strong social networks with their coaches and teammates in order to get the support they need to succeed.

It's the same with retirement planning. You'll need to make important decisions about financing your retirement, such as when to start your Social Security benefits; how to turn your 401(k), IRA, and retirement savings into a retirement paycheck; how best to deploy your home equity; and how to protect against the threat of ruinous long-term care expenses. You'll want to improve or maintain your physical health with the proper nutrition and exercise. And you'll want to nurture a robust social network that will give you pleasure in life and provide the support when you need it.

When the Olympians are standing on the medal podium, there's no doubt they think the time and effort they spent on their training has been worth it. And although you won't get a gold medal to denote your retirement accomplishments, you'll know you've won when you reach your goals: You're financially independent from work, you're doing what you want to do, your physical and mental health are excellent, and you're building your legacy. You'll look back and know that all the planning has been worth the effort.

The good thing is that planning for retirement doesn't require an Olympian effort; we need to spend just a fraction of the time spent by the Olympians to reach our goals. It will, however, take many more hours than most people are currently spending. For example, a recent post from the Boston College Center for Retirement Research states that people may put more thought into buying a car or a mattress than they do planning for retirement. The illustration that starts this post aptly shows us what we need to do to create a gold medal retirement.

How to recession-proof your retirement Retirement planning for the 99 percent 12 weeks to plan for your retirement

The above photo is of my dad, who, as you can see, literally had a gold medal retirement. After a 30-plus year career as a professor at USC, he and my mother participated in senior track and field events, traveled around the world, and kept in constant contact with family and friends. He passed away peacefully at age 88 with family gathered around his bed. My mom and dad created their gold medal retirement from a middle class life, by making a sustained effort to save their money and manage their expenses during their working years, by nurturing their family connections, and by taking care of their physical and emotional health. (You can learn more from their experience from my posts, "How to recession-proof your retirement" and "Retirement planning for the 99 percent.")

In order to achieve the retirement you want, you'll need to keep your eye on the ultimate goal: Living a "rest of life" in which you're financially secure, healthy, and prospering in every sense of the word. We can all be like Olympians -- if we train like them.

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Train for a gold medal retirement

CHICAGO, Aug. 1, 2012 /PRNewswire/ -- Young Americans are hoping for an early retirement. However, many have not taken the important first steps of knowing how much money they will need and starting to save, according to a report issued today by the BMO Retirement Institute, Broadening the Approach to Preparing for Retirement.

The report found that:

"There is an obvious dichotomy between what young people think about retirement and what they're actually doing to prepare for it," said Tina Di Vito, Head of the BMO Retirement Institute. "While it's encouraging that young adults appreciate the importance of retirement planning, there's clearly a disconnect between the concept and then putting the tangible pieces in place, such as determining how much money you'll need and starting to save. This is especially concerning given that so many expect to retire before the age of 60."

The report also outlined how important attitudes and role models are in helping young people become more proactive in preparing for retirement.

Behaviors and Attitudes Fall Short

The report found that behaviors and attitudes are strong predictors of financial preparedness for retirement. Educating young adults through practical hands-on general money-management experiences, such as budgeting, may help instill good financial habits and encourage them to seek information about saving for retirement.

The report revealed that the level of involvement in saving for retirement is relatively low in most young people. They are not spending enough time gathering information on retirement planning, attending seminars, consulting others on retirement planning, or thinking about how much they should be saving in order to secure their financial future.

"Having a general appreciation of how much money you'll need in retirement involves the important first step of visualizing what you want your retirement to look like," said Di Vito. "Only then can you develop an effective savings plan. This process takes time, research and self-reflection, and the attitude you have entering into it will largely determine your success."

Role Models are Key

Role models such as parents and other influential adults are critical to helping young people think differently about their financial future. The report found that many young people turn to family and friends to discuss retirement planning and then seek out information on their own. Consulting others appears to be the most effective, with 38 percent taking action as a result of these conversations. Meanwhile, retirement planning seminars appear to be the least effective at nudging young adults into action. Even with more than one-third (34 percent) attending these seminars, only 28 percent took action.

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BMO Retirement Institute Report: Young Americans Want to Retire Early, but Many Are Not Saving

TORONTO, ONTARIO--(Marketwire -08/01/12)- The BMO Retirement Institute today issued a report which found that young Canadians, while aware of the need for retirement planning, are putting their retirement at risk by not considering how much money they will need and are often delaying saving for retirement.

The report, Broadening the Approach to Preparing for Retirement, examined attitudes on retirement among young adults (between the ages of 18 and 34):

"While it's great news that young adults appreciate the importance of retirement planning, it's a concern that many are not backing it up with concrete action," said Tina Di Vito, Head of the BMO Retirement Institute. "A clear dichotomy exists between what young people think about retirement and what they are actually doing to prepare for it."

The report also outlined the importance of attitudes and behaviours when preparing for retirement, as well as the critical role parents can play.

Attitudes and Behaviours Result in Action

According to Ms. Di Vito, attitudes and behaviours are strong predictors of financial preparedness for retirement. The report found that young adults are the least prepared for retirement, despite the fact that one-quarter of them expect to retire early. While almost a quarter (23 per cent) of Boomers over the age of 55 have thought a lot about how long they might be retired, only five per cent of young adults have given this a lot of thought. As a result, they are not spending adequate time gathering information on retirement planning, attending seminars, or consulting others on retirement planning; many are also not actually saving.

Factors that may hinder their progress in establishing themselves financially, in general, let alone for retirement, include poor post-economic recession job prospects, rising student debt and lower real wages.

The Importance of Role-Models

The report also found that role models are critical to helping young people think differently about their financial future. With half of young adults 20 to 29 years old still living with their parents, Mom and Dad can be effective financial role-models by demonstrating sound financial management and savings habits along with involving their children early in the process. This could involve engaging their adult children in contributing towards household expenses as soon as they begin to work. Making regular contributions to a Registered Education Savings Plan (RESP) and involving their kids in the process while they are in their early teens, talking to kids about money management and budgeting, encouraging their adult children to attend retirement-related seminars and webinars, and introducing them to financial professionals are other ways in which parents can help.

"Parents and other influential adults have to foster an environment that will encourage young people to think about their financial future," said Ms. Di Vito. "Despite the challenging and complex financial realities facing young people today, increasing their financial preparedness for retirement will guide them towards positive results."

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BMO Retirement Institute Report: Time to Get the Kids Thinking About Retirement

Video Link: https://www.youtube.com/watch?v=9coD8A2zxp0

31-07-2012 13:18 Jeff Vogan...retirement planner, financial advisor in Mesa & Tucson Arizona discusses why traditional asset allocation may not work today.

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Relevancy of balanced portfolios: Retirement planner Jeff Vogan Mesa Tucson Arizona - Video

Updated: July 31, 2012, 7:41 PM ET

MINNEAPOLIS -- Brandon Roy's retirement from the NBA last year wasn't intended as a final decision.

The Minnesota Timberwolves were eager to help him clarify his status.

"After a few months of sitting out, I decided, 'Hey, I don't want to stop playing basketball,' " Roy said Tuesday at a news conference at Target Center after signing a two-year, $10.4 million contract. "I wanted to continue going forward. It was never a situation where I said, 'I'm done forever.' It's just more of a pause."

David Sherman/NBAEFresh out of retirement, Brandon Roy says he hopes to be with Minnesota -- the team that drafted him -- for "a little bit longer than 30 minutes."

The Portland Trail Blazers announced Roy's medical-related retirement right before the start of the lockout-shortened season last year. His knees, lacking cartilage after six operations, were bothering him too much to continue. Roy said Tuesday, though, that the team doctor advised him to quit. The Blazers used the amnesty clause to waive Roy and not count the remaining $63 million on his contract against their salary cap or luxury tax.

"It was never really officially my decision to retire," Roy said.

So here he is with the Wolves, at 6-foot-6 and age 28, ready to resume what was already an outstanding career before his knees began to break down.

Roy was on a playing-time limit -- 22 minutes per game -- during his last season with the Blazers, a restriction he said frustrated him badly. His 18-point fourth quarter in a Game 4 comeback win over the eventual champion Dallas Mavericks in the first round of the playoffs only boosted his confidence that he could still play at an elite level.

The Wolves not only were interested once he made it known he was considering a comeback, they promised him they'd take off the reins as long as he can prove his knees can handle it. Roy said his goal is to again become a 35-minute-per-game player, his career average.

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Roy never saw retirement as being end of line

CHICAGO--(BUSINESS WIRE)--

Fitch Ratings has assigned 'BBB+' ratings to the expected issuance of approximately $154.0 million Colorado Health Facilities Authority revenue and refunding bonds, series 2012A-C (Covenant Retirement Communities, Inc.). In addition, Fitch affirms the 'BBB+' rating on approximately $129.3 million of revenue bonds issued through one of the following issuing authorities on behalf of Covenant Retirement Communities:

--Colorado Health Facilities Authority;

--Illinois Health Facilities Authority;

--Golden Valley MN Housing & Redevelopment Authority;

--Plantation FL Health Facilities Authority;

--Connecticut Development Authority;

The Rating Outlook is Stable.

The series 2012 bonds are expected to be structured as fixed rate debt. Bond proceeds will be used to refund approximately $131.2 million of outstanding bonds, fund $20.0 million of various capital projects throughout the system, fund a debt service reserve fund and pay costs of issuance. The issue is expected to price the week of August 20th.

KEY RATING DRIVERS

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Fitch Rates Covenant Retirement Communities Ser 2012 Revs at 'BBB+'; Outlook Stable

MINNEAPOLIS (AP) -- Brandon Roy's retirement from the NBA last year wasn't intended as a final decision.

The Minnesota Timberwolves were eager to help him clarify his status.

''After a few months of sitting out, I decided, 'Hey, I don't want to stop playing basketball,''' Roy said Tuesday at a news conference at Target Center after signing a two-year, $10.4 million contract. ''I wanted to continue going forward. It was never a situation where I said, 'I'm done forever.' It's just more of a pause.''

The Portland Trail Blazers announced Roy's medical-related retirement right before the start of the lockout-shortened season last year. His knees, lacking cartilage after six operations, were bothering him too much to continue. Roy said Tuesday, though, that the team doctor advised him to quit. The Blazers used the amnesty clause to waive Roy and not count the remaining $63 million on his contract against their salary cap or luxury tax.

''It was never really officially my decision to retire,'' Roy said.

So here he is with the Wolves, at 6-foot-6 and age 28 ready to resume what was already an outstanding career before his knees began to break down.

Roy was on a playing-time limit - 22 minutes per game - during his last season with the Blazers, a restriction he said frustrated him badly. His 18-point fourth quarter in a Game 4 comeback win over the eventual champion Dallas Mavericks in the first round of the playoffs only boosted his confidence that he could still play at an elite level.

The Wolves not only were interested once he made it known he was considering a comeback, they promised him they'd take off the reins as long as he can prove his knees can handle it. Roy said his goal is to again become a 35-minute-per-game player, his career average.

That, combined with endorsements from friends of head coach Rick Adelman, familiarity with Adelman's assistants and a playoff-caliber core in Kevin Love, Ricky Rubio and now Andrei Kirilenko, was enough to persuade Roy to pick the Wolves.

''It's not a situation where I wanted to be a 10th man. I want to be able to go out and work and be a big part of a team taking that next step, and I thought the pieces were right here,'' Roy said. ''When they say, 'You know, Brandon, the sky's the limit here,' that really made me feel good. I thought some teams maybe wanted me to play a small role, but Minnesota was saying, 'You can come in and earn as big of a role as you want.' So that was really important for me.''

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Roy says retirement was never final in his mind

COLUMBUS, Ohio--(BUSINESS WIRE)--

While facing the prospect of living more years in retirement, women nearing retirement underestimate how much they will need to pay for their future health care costs even more so than men nearing retirement, according to a Nationwide Financial survey released today.

According to the survey conducted by Harris Interactive of 1,250 Americans with at least $250,000 in household assets, women close to retirement estimate they will spend $4,624 each year on health care beyond what Medicare covers. Thats 21 percent less than the $5,882 men nearing retirement estimate they will spend each year on things like premiums, copayments and deductibles. However, both are way off. A 2012 study found a 65-year-old couple retiring today would need $240,000 to cover medical expenses during their retirement years and that doesnt include long-term care costs. 1

The fact is women live longer than men, which means they will spend more time in retirement and that places women at a greater risk of outliving their retirement assets, said John Carter, president of sales and distribution for Nationwide Financial. It also may increase their chances of incurring long-term care costs during their golden years. Thats why its especially important for women to plan for health care costs in retirement.

According to the survey, nearly half of both women and men say they are terrified of what health care costs may do to their retirement plans. Yet, women respondents nearing retirement are much more likely than men respondents to say they have not estimated:

On average, women estimate that Medicare will cover 65 percent of their annual health care costs. But, similar to men respondents, when asked how they came to this percentage, 85 percent either guessed or did not know. Only 2 percent said they were told this by a financial advisor.

Women are also slightly more likely than men to say they are somewhat unconfident to not at all confident in their plan to live comfortably in their retirement years (46 percent vs. 39 percent men).

Opportunity for advisors

While 65 percent of women have discussed their retirement with a financial advisor of those who have, only one in 10 talked about how much they should expect to pay in health care costs apart from Medicare (compared to one in four men).

Of those who have discussed retirement with a financial advisor, 77 percent of women say they were helpful to very helpful estimating health care costs in retirement (63 percent men) and a whopping 86 percent say they were helpful to very helpful discussing the role Medicare will play in their retirement (52 percent men).

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Women Nearing Retirement Underestimate Future Health Care Costs More Than Men