Available by Phone: 9am-6pm CST, Monday to Friday (405) 780-7745, Ask for Bill Platt --- Contact Us by Email
	Home      Purchase Ghost Writing      Purchase Article Distributions      Services in a Nutshell Search Articles for Reprint
Copyright Enforcement & Reprint Check Tool: Article Reprints In Google Article Reprints In MSN Article Reprints In Yahoo! Article Reprints In WindSeek Article Reprints In AllTheWeb Article Reprints In AltaVista Article Reprints In Lycos Original Distribution Date: 2008-05-08 11:12:00 Word Count: 646 Times Viewed: 22 Article Rating: 0.00 Votes Cast: 0 Google PageRank: 0 PR Last Checked: 2008-05-08 Author Overall Stats: Times Viewed Overall: 1777 Author Overall Rating: 3.00 Votes Cast Overall: 8 More Articles By This Author: Articles On This Website Make Money Online FREE Getting Started Package Available Would You Like To Own Your Own Article Directory? We Recommend Article Friendly. Save Money on Auto Parts Sign up to sell more than a dozen top-selling products Download the Niche-Browser for FREE! Mobile Phone Review Learn How To Build Your Own Online Empire What are the nine steps that a ebusiness startup should undertake, and in what order? Clinton Douglas IV illustrates in his ebook, the precise nine steps that you will need to take to bring your startup online business to fruition and to carry it forward to massive profits. At $29.95, this ebook is a real value. Get "How To Start Your Online Empire" now, by clicking here. http://thephantomwriters.com/free_content/db/l/in-fear-of-retirement.shtml In Fear of Retirement Copyright © 2008 Daniel Lamaute Many baby boomers are staring at retirement like a deer caught on oncoming headlights. They are not sure what to do or what else to do. They fear that whatever they have in savings just might not be enough. Less than 1 out of 5 workers felt very confident about having enough money for a comfortable retirement, according to the April 2008, EBRI Retirement Confidence Survey. And with good reasons, inflation is zooming at the same time that asset values are flagging. By far the biggest assets of the Baby Boomers are the equity in their house and the balance in their 401(k) plan. Both of those have been going down lately. The median house price is already down 13% from last year and some like Goldman Sachs think that prices could fall by 30%, wiping out the equity for million of homeowners. Meanwhile employees are growing more skeptical that their 401(k) will even keep up with inflation. According the Financial Times, between March 10, 2000 and January 31, 2008, the average annual return from the S&P 500 was 1.52%. That's nearly eight years of diminutive return on stocks - so much for the hypothetical 8% average projected stockmarket return widely used by financial planners. Is this current slowdown different from other slowdowns? Will the economy recover in short order? We don’t know, because several aspects of this slowdown are unique in historical context that make the situation unnerving. While the economy will find a new equilibrium and stabilize eventually, for Baby boomers the timing of the recovery and duration of this slowdown are critical to their ultimate financial well being. The first of the Baby Boomers turn 62 this year. About 10,000 per day will reach that age for the next two decades. Clearly those around 60 have fewer options and chances to recover from a bad hit on their assets than those in their 30’s and 40’s. There are several steps Baby Boomers can take to protect their financial standing. One of those steps is to reduce their debt, especially debt from high interest rate credit cards. Many cards charge anywhere from 20% to 30% interest on credit balances. That means that an item can end up costing more to finance than to purchase. For example, an owner pays $5,000 by credit card to replace a leaky roof. By paying $100/mo at 21% interest it will take 119 months to pay off that debt, for a total cost for the repair of $11,900, ($5,000 to the contractor and $6,900 to the bank). It is better to pay with cash if available, or to use credit with lower interest. Unfortunately, with declining home prices low interest rate equity loans are getting harder to obtain. Another source of credit could be a 401(k) loan. That’s because with a 401K loan: There are no taxes and penalty on early withdrawal as long as the loan is repaid on time according to the loan terms. The 401(k) loan is set as low as prime rate, recently at 5 1/4%, is fixed for the 5 year normal term of a 401(k) loan. The interest paid on a 401(k) loan is credited to the 401(k) account - so borrowers pay interest to themselves, not to a bank or other lender. Employees should ask their employer if their 401(k) plan allows loans. Those who are self-employed, such as independent contractors and individuals with their own business (part-time or full-time) can set up their own Self-employed 401k with a loan feature. One can transfer funds from IRAs, 401k from a previous employer, SEP plan or other qualified retirement funds to a Self-employed 401(k) and borrow up to a maximum of $50,000 or 50% of the account balance, whichever is less. Defaults on 401(k) loans are subject to taxes and a possible 10 percent early withdrawal penalty on any outstanding 401(k) loan balance. About The Author: By Daniel Lamaute, Lamaute Capital, Inc., http://www.InvestSafe.com. Lamaute Capital is an investment firm that specializes in setting up retirement plans for small business owners and non-profit organizations. BlinkBits Blinklist BlogMarks Co.mments Connotea Delicious Delirious Digg it Fark it Furl This Link A GoGo Magnolia Netvouz Raw Sugar Reddit Scuttle Seed This Shadows Simpy Smarking Spurl This TailRank Wists Feed Me Links Technorati Cosmos YahooMyWeb VOTE ON THIS ARTICLE Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article Tell our authors what you think about their article. Automatically Post This Article To Your Blog by inserting your Email-To-Blog Address, as can be set up in your Blogging software: "Link Back To This Article" Copy-And-Paste Are You Using This Article? We want to know about it. HTML Article Copy-And-Paste <font size=+2>In Fear of Retirement</font><BR> Copyright © 2008 Daniel Lamaute<BR><BR><BR> Many baby boomers are staring at retirement like a deer caught on oncoming headlights. They are not sure what to do or what else to do. They fear that whatever they have in savings just might not be enough. Less than 1 out of 5 workers felt very confident about having enough money for a comfortable retirement, according to the April 2008, EBRI Retirement Confidence Survey. And with good reasons, inflation is zooming at the same time that asset values are flagging.<BR><BR> By far the biggest assets of the Baby Boomers are the equity in their house and the balance in their 401(k) plan. Both of those have been going down lately. The median house price is already down 13% from last year and some like Goldman Sachs think that prices could fall by 30%, wiping out the equity for million of homeowners.<BR><BR> Meanwhile employees are growing more skeptical that their 401(k) will even keep up with inflation. According the Financial Times, between March 10, 2000 and January 31, 2008, the average annual return from the S&P 500 was 1.52%. That's nearly eight years of diminutive return on stocks - so much for the hypothetical 8% average projected stockmarket return widely used by financial planners.<BR><BR> Is this current slowdown different from other slowdowns? Will the economy recover in short order? We don’t know, because several aspects of this slowdown are unique in historical context that make the situation unnerving. While the economy will find a new equilibrium and stabilize eventually, for Baby boomers the timing of the recovery and duration of this slowdown are critical to their ultimate financial well being.<BR><BR> The first of the Baby Boomers turn 62 this year. About 10,000 per day will reach that age for the next two decades. Clearly those around 60 have fewer options and chances to recover from a bad hit on their assets than those in their 30’s and 40’s.<BR><BR> There are several steps Baby Boomers can take to protect their financial standing. One of those steps is to reduce their debt, especially debt from high interest rate credit cards. Many cards charge anywhere from 20% to 30% interest on credit balances. That means that an item can end up costing more to finance than to purchase.<BR><BR> For example, an owner pays $5,000 by credit card to replace a leaky roof. By paying $100/mo at 21% interest it will take 119 months to pay off that debt, for a total cost for the repair of $11,900, ($5,000 to the contractor and $6,900 to the bank).<BR><BR> It is better to pay with cash if available, or to use credit with lower interest. Unfortunately, with declining home prices low interest rate equity loans are getting harder to obtain. Another source of credit could be a 401(k) loan. That’s because with a 401K loan:<BR><BR> <LI>There are no taxes and penalty on early withdrawal as long as the loan is repaid on time according to the loan terms.<LI>The 401(k) loan is set as low as prime rate, recently at 5 1/4%, is fixed for the 5 year normal term of a 401(k) loan.<LI>The interest paid on a 401(k) loan is credited to the 401(k) account - so borrowers pay interest to themselves, not to a bank or other lender.</LI><BR> Employees should ask their employer if their 401(k) plan allows loans. Those who are self-employed, such as independent contractors and individuals with their own business (part-time or full-time) can set up their own Self-employed 401k with a loan feature.<BR><BR> One can transfer funds from IRAs, 401k from a previous employer, SEP plan or other qualified retirement funds to a Self-employed 401(k) and borrow up to a maximum of $50,000 or 50% of the account balance, whichever is less. Defaults on 401(k) loans are subject to taxes and a possible 10 percent early withdrawal penalty on any outstanding 401(k) loan balance. <BR><BR> <B><I>About The Author:</I></B><BR> <table border=1 cellpadding=4><tr><td><font size=2 face=verdana> By Daniel Lamaute, Lamaute Capital, Inc., <a href=http://www.InvestSafe.com target=_blank>http://www.InvestSafe.com</a>. Lamaute Capital is an investment firm that specializes in setting up retirement plans for small business owners and non-profit organizations. </font></td></tr></table> <BR><BR><font size=1 face=verdana>Article Source: <a href=http://thePhantomWriters.com/ target=_blank>thePhantomWriters Article Submission Service</a></font><BR><BR> TEXT Article Copy-And-Paste In Fear of Retirement Copyright © 2008 Daniel Lamaute Many baby boomers are staring at retirement like a deer caught on oncoming headlights. They are not sure what to do or what else to do. They fear that whatever they have in savings just might not be enough. Less than 1 out of 5 workers felt very confident about having enough money for a comfortable retirement, according to the April 2008, EBRI Retirement Confidence Survey. And with good reasons, inflation is zooming at the same time that asset values are flagging. By far the biggest assets of the Baby Boomers are the equity in their house and the balance in their 401(k) plan. Both of those have been going down lately. The median house price is already down 13% from last year and some like Goldman Sachs think that prices could fall by 30%, wiping out the equity for million of homeowners. Meanwhile employees are growing more skeptical that their 401(k) will even keep up with inflation. According the Financial Times, between March 10, 2000 and January 31, 2008, the average annual return from the S&P 500 was 1.52%. That's nearly eight years of diminutive return on stocks - so much for the hypothetical 8% average projected stockmarket return widely used by financial planners. Is this current slowdown different from other slowdowns? Will the economy recover in short order? We don’t know, because several aspects of this slowdown are unique in historical context that make the situation unnerving. While the economy will find a new equilibrium and stabilize eventually, for Baby boomers the timing of the recovery and duration of this slowdown are critical to their ultimate financial well being. The first of the Baby Boomers turn 62 this year. About 10,000 per day will reach that age for the next two decades. Clearly those around 60 have fewer options and chances to recover from a bad hit on their assets than those in their 30’s and 40’s. There are several steps Baby Boomers can take to protect their financial standing. One of those steps is to reduce their debt, especially debt from high interest rate credit cards. Many cards charge anywhere from 20% to 30% interest on credit balances. That means that an item can end up costing more to finance than to purchase. For example, an owner pays $5,000 by credit card to replace a leaky roof. By paying $100/mo at 21% interest it will take 119 months to pay off that debt, for a total cost for the repair of $11,900, ($5,000 to the contractor and $6,900 to the bank). It is better to pay with cash if available, or to use credit with lower interest. Unfortunately, with declining home prices low interest rate equity loans are getting harder to obtain. Another source of credit could be a 401(k) loan. That’s because with a 401K loan: * There are no taxes and penalty on early withdrawal as long as the loan is repaid on time according to the loan terms. * The 401(k) loan is set as low as prime rate, recently at 5 1/4%, is fixed for the 5 year normal term of a 401(k) loan. * The interest paid on a 401(k) loan is credited to the 401(k) account - so borrowers pay interest to themselves, not to a bank or other lender. Employees should ask their employer if their 401(k) plan allows loans. Those who are self-employed, such as independent contractors and individuals with their own business (part-time or full-time) can set up their own Self-employed 401k with a loan feature. One can transfer funds from IRAs, 401k from a previous employer, SEP plan or other qualified retirement funds to a Self-employed 401(k) and borrow up to a maximum of $50,000 or 50% of the account balance, whichever is less. Defaults on 401(k) loans are subject to taxes and a possible 10 percent early withdrawal penalty on any outstanding 401(k) loan balance. ============================================================ By Daniel Lamaute, Lamaute Capital, Inc., http://www.InvestSafe.com Lamaute Capital is an investment firm that specializes in setting up retirement plans for small business owners and non-profit organizations. ============================================================ Read More Articles From Daniel Lamaute: http://thePhantomWriters.com/free_content/d/index.shtml#Daniel_Lamaute Article Description Copy-And-Paste Many baby boomers are staring at retirement like a deer caught on oncoming headlights. They are not sure what to do or what else to do. They fear that whatever they have in savings just might not be enough. Less than 1 out of 5 workers felt very confident about having enough money for a comfortable retirement, according to the April 2008, EBRI Retirement Confidence Survey. And with good reasons, inflation is zooming at the same time that asset values are flagging. Article Keywords Copy-And-Paste *** Digital Reprint Rights *** If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). Links must remain in the form that we published them. Clean links should point to the Author's links without redirects having been inserted into the copy. You are not allowed to Change or Delete any Words or Links in the Article or Resource Box. Paragraph breaks must be retained with articles. You can change where the paragraph breaks fall, but you cannot eliminate all paragraph breaks as some have chosen to do. Email Distribution of this article Must be done through Opt-in Email Only. No Unsolicited Commercial Email. You Are Allowed to format the layout of the article for proper display of the article in your website or in your ezine, so long as you can maintain the author's interests within the article. You may not use sentences from this article as an input for any software that steals sentences from others in order to build an article with software. The copyright on this article applies to the "WHOLE" article. *** Author Notification *** We ask that you notify the author of publication of his or her work. Daniel Lamaute can be reached at: webmaster@lamautecapital.com *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: webmaster@lamautecapital.com This work is licensed under a Creative Commons License. (You are not required to show the creative commons license notice when you reprint this work.) Get Customized Advertising Plates for Your Vehicle. Advertise Your Online Business While You are Travelling from Place to Place. Unless Otherwise Noted, All Copy and Images are: Copyright © 2001-2008, Bill Platt, thePhantomWriters.com thePhantomWriters Ghost Writing Services thePhantomWriters Article Submission Services thePhantomWriters Blogging Services thePhantomWriters Article Writing Advice Blog Website Properties owned by Platt Services, Inc.: Links And Traffic - Guaranteed Link Development Services Stewart Consultants Perl & PHP Software Directory Original Content from Pen Circles Right Blinker Search Engine The Historical Wild West | Bill-Platt.com The Audio Video Cabling Guide | Your Domain URL Blogger Support | Double-Eagles | Windstorm Computing Automotive Information Humor Sites Owned by Us: Driving to California (Humor) Alien-Experiences Merchandise Blogs Owned by Us: Bill Platt Speaks Up | Byte-Sized Marketing Tips Blogger/BlogSpot "Unanswered" Support Issues Printer Troubleshooting and Tips Website Properties owned by Friends: Invisible MBA - Educational Articles | Super Home Ideas Marketing and Services provided by: Bill Platt and Platt Services, Inc. 2117 Valley Road Stillwater, Oklahoma 74075 (405) 780-7745 (office) 9am - 6:00pm CST, Monday Through Friday Last Update: 2008-05-08 11:12:00