And if you need to save for your childrens college as well as your own retirement, youve got a daunting challenge on your hands.

The cost of a college education continues to rise faster than inflation, at roughly 5 percent per year. The average sticker-price for four years at a private college is now more than $150,000 including $38,589 for the 2011-12 school year. Even going to your states university runs close to half that total at an average $17,131 a year, according to the College Board.

Retirement is far more expensive than that.

How do you balance those important objectives? Here are five considerations to keep top-of-mind as you juggle both:

1. PUT RETIREMENT FIRST.

Student loan debt has risen above $1 trillion and the average students debt at graduation now exceeds $25,000, according to the Project on Student Debt. Hoping to keep their own kids from being overly burdened, parents often unwisely sink thousands of dollars into their childrens education that otherwise would have gone toward their own retirement.

The latest evidence of this largesse came in recent survey results by Ameriprise Financial that showed that only 24 percent of baby boomers were putting away money for their future, down from 44 percent at the end of 2007. Yet the level of support they were providing their children and other family members had not changed.

Paying for college has to take a back seat to retirement, says Kalman Chany, a New York financial aid consultant and author of Paying for College Without Going Broke.

The real dilemma is whether youll have enough money left for retirement after repaying your debt, Chany says.

Dont give in to the temptation to pitch in heavily for college without making sure your retirement savings are on track. You may well leave yourself short in the future, especially with retirements now often spanning three decades.

View original post here:
5 ways to balance retirement and college savings

LONDON A new survey by Prudential says people in the UK who want to retire this year are looking forward to traveling the world (36 percent) or enjoying themselves (43 percent). Only 5 percent plan to spend anything on charity.

But the top priority seems to be a prerequisite for their dreams: "Prudential has revealed the results of new research which shows the top priority for people intending to retire this year is saving money to ensure they have enough to live on in retirement. Nearly 6 out of 10 people (57 percent) said saving will be a top priority," the press release said.

"Today's retirees are likely to spend longer in retirement than previous generations," Vince Smith-Hughes, retirement income expert at Prudential, said in the survey press release, "so it is encouraging to see that they understand the importance of saving money to ensure they can live comfortably. Saving shouldn't be regarded as something that suddenly stops once you retire, and the current generation of retirees seems to be more aware of this than ever before."

But for many in the U.S., retirement may just be a pipe dream.

CNN Money featured an article titled "Delaying retirement: 80 is the new 65." About a quarter of middle-class Americans have so little savings that they are planning to delay their retirement until they are at least 80 years old.

Eighty years old is two years longer than average life expectancy meaning that many people are working to save enough money to die some day.

"It sounds depressing, but for many it's a necessity," the CNN article said. "On average, Americans have only saved a mere 7 percent of the retirement nest egg they were hoping to build, according to Wells Fargo's latest retirement survey that polled 1,500 middle-class Americans."

People had a median savings of about $25,000. Their median goal was $350,000.

Clive Crook, a Bloomberg View columnist, said Americans' problem is not Social Security solvency, but that it won't be enough to retire on. "When they retire, many baby boomers will see a far bigger drop in their standard of living than they had expected," he said. "Many will have to work longer, whether they want to or not."

Read the original post:
Retirement savings: Too little too late?

Many self-employed workers focus on retirement savings strategies that will give them an immediate tax advantage, but they may overlook opportunities to maximize investment returns over time.

Peter Dazeley | Getty Images

Strategy #1: Set Up a Solo 401(k) Plan

If you own your own business or are self-employed, one strategy that can make the most of your long-term savings this tax year and beyond it to set up a Solo 401(k).

Under new Solo 401(k) rules for 2012, you can contribute up to $50,000 this year or $55,500 if you're 50 or older. A couple working in a business together could put in up to $100,000 for retirement (up to $111,000 if both are over 50)!

Part of that savings is a salary deferraljust like a regular or Roth 401(k)with a maximum contribution of up to $17,000. The other portion comes from profit-sharing, allowing you to add up to 25 percent more to your nest egg, up to $50,000 (or, if you're 50 or older, $55,500). That second part cannot be made as a Roth 401(k).

But Susan John, chair of the National Association of Personal Financial Advisors, suggests if you can set up a Roth 401(k) for the salary deferral portion, definitely take advantage of it.

"It's an opportunity to build a stream of tax-free income for the future that will never, ever be taxable. Even though you don't get the deduction right now, it's probably the most important contribution that a person can make," John advises.

Strategy #2: Open a Health Savings Account

Opt for a high deductible health plan and open a Health Savings Account or HSA. The money you put in a HSA is tax-deductible and the money can be taken out of the account tax-free for qualified medical, dental and vision expenses. Any money you don't use can be invested and gains are tax-deferred.

Original post:
Three Retirement Strategies for Self-Employed Workers

DUBLIN--(BUSINESS WIRE)--

Research and Markets (http://www.researchandmarkets.com/research/wqfh23/cerulli_edge_ret) has announced the addition of the "Cerulli Edge - Retirement Edition Topic: Qualified Default Investment Alternatives (1Q 2012)" report to their offering.

The Cerulli Edge-Retirement Edition covers key trends impacting the U.S. retirement marketplace (public and private defined contribution and defined benefit, IRA, rollover, and non-qualified plans). It addresses topics critical to firms competing for retirement dollars including: asset managers, distributors, plan providers, and third-party vendors. Future themes will range from retirement income to pension asset management and investment vehicles. Content includes both qualitative insight and proprietary data garnered from a quarterly survey of firms across the industry. This publication delivers the most timely retirement-related research and industry trends.

In this issue the report provides insights into the future of QDIA solutions for both accumulator and retirement-income-oriented investors.

The report also contains proprietary data on defined benefit (DB), defined contribution (DC), annuities and insurance, retirement income, and individual retirement account (IRA) markets.

Key Topics Covered:

Qualified Default Investment Alternatives: Future Files

A brief history of the future of QDIA

- Percent of Plans with Autoenrollment and QDIA Selections for Autodeferrals by Segment, 2010

- 401(k) Participants by Type, 2010-2016E (millions)

Read the original post:
Research and Markets: Cerulli Edge - Retirement Edition Topic: Qualified Default Investment Alternatives (1Q 2012)

FAIRFIELD, Iowa--(BUSINESS WIRE)--

Cambridge Investment Research Inc. (Cambridge), one of the nations leading independent broker-dealers, announced the selection of Fiduciary Benchmarks to provide 408(b)(2) disclosures for rep-advisors to their clients. This selection is part of the comprehensive solutions and support Cambridge has been building over the last two years in anticipation of regulatory changes impacting the retirement plan marketplace.

We understand this time of extreme change in the qualified plan market may also give rise to many advisors evaluating whether they can, or want to, continue in the market, said Amy Webber, president and COO. In contrast, given our long-time focus in this market, we have many successful Cambridge advisors across the country seizing the opportunity to work with those advisors stepping back from qualified plans. We also have Cambridge advisors ready to purchase retirement plan business from those electing to omit retirement plans from their business model.

Cambridge has continued to expand the Cambridge Retirement Center to include new marketing resources and guidance prompted by the fee disclosure requirements related to 404(a)(5) and 408(b)(2). After considering several 408(b) (2) solutions, Cambridge selected Fiduciary Benchmarks because it offers a service and technology solution that will help rep-advisors disclose fees, services, and fiduciary status in accordance with this important regulation as it goes into effect July 1, 2012. Fiduciary Benchmarks also enables independent rep-advisors to access benchmarking technology and service that allows the ability to leverage the information from these disclosures to help determine the reasonableness of fees a stated intent of the new regulation.

Cambridge recognizes many in the industry may be contemplating their position in the retirement plan marketplace, but we remain committed to supporting our rep-advisors who choose to serve their clients in the retirement plan marketplace, said Dan Sullivan, senior vice president of marketing. In addition to enabling our rep-advisors to be prepared to address the new regulatory requirements on time when July 1 rolls around we take our role as The Fee Experts1 seriously and embrace the fiduciary standard by allowing our rep-advisors to serve their retirement plan clients at the level the client and rep-advisors feel is appropriate for their plan. Cambridge continues to build upon the services and value rep-advisors may provide to retirement plan clients by offering the opportunity to serve as a fiduciary advisor under ERISA Sections 3(21) and 3(38).

About Fiduciary Benchmarks Fiduciary Benchmarks is recognized as one of the industry's leading services for independent, comprehensive, informative, and cost-effective benchmarking services for retirement plans. Started in 2007 by several industry experts, the company now has almost 1,400 respected advisors/consultants using the service. In addition, the company provides benchmarking services to respected broker-dealers, investment only managers, plan sponsors, and record keepers. For more information about Fiduciary Benchmarks, visit http://www.fiduciarybenchmarks.com.

About Cambridge Cambridge Investment Research, Inc., member FINRA/SIPC, is an independent, privately owned broker-dealer with over 2,000 independent registered representatives and more than $45 billion assets under management. Cambridge was recognized as one of the Best of Iowa Businesses in 20102 and was also recently named among the Top Workplaces in Iowa for 20113.

The Cambridge Retirement Center provides rep-advisors with the information and resources needed to confidently service the retirement marketplace and the ever-evolving regulation. It is designed to deliver industry leading resources and expertise, integrated retirement systems, and retirement market solutions while bringing new opportunities to advisors seeking to grow their independent businesses through opportunities in the retirement marketplace.

Cambridge also provides innovative fee programs and a full menu of commission offerings to advisors across the nation. Recognized in the industry as The Fee Experts1, Cambridge has been ranked a fee leader among independent broker-dealers for 11 consecutive years4.

1 THE FEE EXPERTS is a registered trade mark of Cambridge Investment Research, Inc. for its investment advisory service for investment managers. 2IA Biz magazine, Best of Iowa Businesses, 2010 3Des Moines Register, Top Workplaces 2011, September 18, 2011 4Financial Planning magazine, June FP50, Top 50 Independent Broker-Dealer Issue, 2001-2011

Here is the original post:
Cambridge Embraces ERISA Rules and Regulations for Retirement Plans

If federal employees are forced to contribute more toward their civil service retirement benefits, many might have to cut back on their investments in the Thrift Savings Plan, employee organization officials said Monday.

Were very concerned about what the reactions are going to be if the government requires higher contributions, said Clifford Dailing, secretary-treasurer of the National Rural Letter Carriers Association. Federal employees current needs for money could win out, and I have very grave concerns theyre going to live for today and not save for retirement, he said.

NRLCA and other unions, management associations and employee groups are members of the Employee Thrift Advisory Council, which met Monday with the governing board of the TSP, the 401(k)-style retirement savings program for federal employees and retirees and uniformed services members and retirees.

Several members of the council raised concerns about pending legislation to increase required employee contributions toward annuity benefits in the Federal Employees Retirement System and the Civil Service Retirement System. Last week, a House committee approved a bill to raise those contributions by 5 percent of salary, phased in over five years starting in 2013.

That bill could come to a House floor vote soon but is not expected to advance in the Senate.

A separate plan before the House would increase contributions by 1.5 percent of salary over three years. A law enacted this year already requires a 2.3 percent increase for those hired into the government starting next year who have fewer than five years of prior federal service.

Currently, employees under FERS pay Social Security taxes usually 6.2 percent, but 4.2 percent this year plus 0.8 percent of salary toward their civil service benefit; those under CSRS pay 7 percent of their salary toward a more generous civil service benefit but dont receive a Social Security benefit.

If you increase the amount the employees contribute to their base retirement system, theyre going to reduce the amount they pay into the TSP, said Myke Reid, legislative and political department director for the American Postal Workers Union. I think theres a direct correlation. After you get to 12 percent of salary, theres very little left to invest in the TSP.

Reid noted that the FERS system, which covers about four-fifths of executive branch and postal workers, was designed as a three-part system consisting of a smaller civil service annuity, Social Security and the TSP with employer contributions. FERS employees can receive employer contributions equaling up to 5 percent of salary, but only by investing at least that much themselves.

The TSP does not determine the formula for matching investments and has no role in the level of required contributions toward civil service annuities. However, Jacqueline Simon, public policy director for the American Federation of Government Employees, asked the TSP for data that could help gauge whether employees, especially those at lower salary levels, would react to higher contributions toward FERS and CSRS by cutting back on their TSP savings.

Follow this link:
Thrift Savings Plan: Groups ask about retirement benefits changes

DES MOINES, Iowa--(BUSINESS WIRE)--

From the smallest to the largest, retirement plan clients give the Principal Financial Group high marks for satisfaction and loyalty in two surveyswith client service driving the strong scores.

In the 2011 Chatham Partners Client Satisfaction Survey of medium-to-large defined benefit and defined contribution plans1, The Principal outperformed the benchmark in client loyalty. Ninety-eight percent of clients said they plan to maintain or increase their relationship with The Principal.

The top ratings provided by clients of The Principal are demonstrative of its industry leadership and the consistently excellent service delivered by its client service professionals, said Joshua Dietch, Managing Director of Chatham Partners.

Overall satisfaction with The Principal continues to be strong, receiving a Best in Class ranking2 and 97 percent overall satisfaction score. The Principal exceeded the benchmark in nearly all measures of satisfaction including:

Small plans give big scores

The smallest3 retirement plan clients also gave The Principal high scores. In a similar survey conducted by the retirement market research team at The Principal, the company received a 95 percent or higher score in multiple areas, including:

Transition satisfaction

New clients, who recently transitioned their retirement plans to The Principal, also provide high marks. Across all plan sizes, satisfaction with the coordination/management of client conversion was 95 percent.

We focus on providing the highest level of service for clients of all sizes from day one. We are gratified they continue to rank us so highly, said Greg Burrows, senior vice president of retirement and investor services at The Principal. We use this valuable client feedback to enhance our products and services with the ultimate goal of helping plan sponsors, their financial professionals and participants achieve successful long-term retirement outcomes.

Original post:
Retirement Plan Clients of The Principal are Highly Satisfied and Very Loyal

This post comes fromMiranda Marquitat partner blog Bargaineering.

One of the greatretirement savings toolsis the tax-advantaged account. Accounts like 401k's and the IRAs can help you save for retirement, and reap tax advantages at the same time. Your tax-advantaged retirement account can provide you with a great way to save up money for retirement, putting your capital to work for you and building wealth. These accounts are easy to use, and they make saving up for the future fairly simple.

However, even though tax-advantaged retirement accounts are relatively easy to manage, it is possible to make mistakes with them. As you contribute to your retirement account, here arefive common retirement mistakes to avoid:

Not starting as soon as possible

The biggest mistake in any retirement savings plan is to not start as soon as possible. The earlier you start, the more time compound interest can work on your behalf. Getting started is a major part of retirement savings, and putting it off means you fall further behind. Along with this is the idea that you should max out your retirement accounts if you can. Even if you can't max out your contributions right now, you can create a plan to work up to it. (Post continues below video.)

Leaving money on the table

Another issue comes with leaving money on the table. If your employer offers a match, you should take it, up to the maximum allowed. Find out what sort of match is available, and then do what you can to contribute as much as you can in order to qualify for that matching contribution. It's free money that can go toward building your nest egg.

See the original post here:
5 common retirement mistakes

LOS ANGELES--(BUSINESS WIRE)--

Transamerica Retirement Services announced today the launch of the Transamerica Partners Sales Academy. The Transamerica Partners Sales Academy offers selected third party administrators (TPAs) the opportunity to define their firms unique value proposition in the small- and mid-sized retirement plan market. Transamericas training helps TPAs build their brand and sales skills expertise through core messaging exercises and presentation skills workshops.

The Transamerica Partners Sales Academy allows TPAs to refine key marketing skills that can help build relationships with small- and mid-sized business owners, said Deb Rubin, vice president and director, national distribution of TPA services at Transamerica Retirement Services. We are committed to helping TPAs expand their businesses. Transamerica has doubled its efforts to better serve the TPA community over the past two years, and has experienced record-breaking growth in the TPA marketplace as a result.

The inaugural Transamerica Partners Sales Academy event was held in Baltimore, Md. and concluded on April 27. Christabelle Cook, a retirement plan consultant with Trinity Pension Consultants, noted, Transamerica gave us access to experts that know how to build and reinforce our companys positive brand, which is just what we need to be more successful. This program is perfectly suited for TPAs because it focuses on giving financial professionals a competitive edge in the retirement plan market.

Phil Dabney, vice president of business development for Benetech, Inc., said, The curriculum was outstanding. Transamerica Partners Sales Academy is a brilliant idea because it offers training and knowledge that can help TPAs like us to exceed our goals.

For more information about Transamerica Partners Sales Academy, please call (877) 398-7526 Monday through Friday, 9 a.m. - 8 p.m. Eastern Standard Time.

About Transamerica Retirement Services Corporation

Transamerica Retirement Services Corporation (Transamerica or Transamerica Retirement Services), which is headquartered in Los Angeles, CA, designs customized retirement plan solutions to meet the unique needs of small- to mid-sized businesses. Transamerica and its affiliates have more than 17,0001 retirement plans totaling more than $20 billion1 in assets. For more information about Transamerica, please refer to http://www.TA-Retirement.com.

1As of December 31, 2011.

TRSC 6303-0412

See the original post here:
Transamerica Retirement Services Announces Partners Sales Academy

Video Link: https://www.youtube.com/watch?v=VdeKItIf51Y

27-04-2012 04:51 Source Links and video text for Today's Items are located at This Hyper Report is supported with physical silver by Gregory Mannarino's The Game is Rigged at The opinionatedcontent contained in the Hyper Report is provided for informational and entertainment purposes only. Use the information found in these videos as a starting point for conducting your own research and before making any investing decisions. All stories sourced assume all information to be truthful and reliable; however, I cannot and do not warrant or guarantee the accuracy of this information. Thank you.

See more here:
120427 - Feds Eye Retirement For Debt - Video