1. GET A PLAN, STAN! - An estate plan. A financial plan. Any kind of a plan is better than no plan. A high paying bank CD might be a reasonable part of your retirement plan, if in fact, you have a plan. Without a plan you abdicate your planning opportunity to your favorite uncle... Uncle Sam. Take action this week. Read a good financial book to establish a basic retirement plan on your own or hire a financial planner or retirement specialist to get you on track. When you put together your own financial plan and/or estate you control what happens to your assets and your loved ones. Start with a will, get a living trust, consider setting up a trust if you have assets, or make a phone call to interview a retirement specialist or financial planner. The key word here is START!



2. KICK SOME ASSETS - If you had employees that just sat around all day you would kick some butt and put them back to work, right? Same reasoning here. Don't call your bank CD your retirement plan. Bank CDs may be a fairly safe place for money in the short run but it is normally taxed every year as ordinary income and you don't earn much. Take a close look at all of your assets and consider how they can be leveraged and protected for your long-term financial well being. Your home, your mutual funds, your bank CDs are all assets that you can help make retirement more enjoyable but by themselves, unattached to a solid plan, are not going to give you the peace of mind you hope comes with retirement.

Do not ignore the assets in your employer's 401 (k) or similar investment/retirement program. Employers might be doing a great job of managing your retirement account or they might be blowing it big time. Ask tons of questions, get a professional assessment of the investments but don't just check the box that the guy in the next cubicle did.

Most employers are happy to explain their plans in detail or they sometimes provide you with other resources to clearly explain the types of investments they offer. Maximize any matching opportunity they offer. Never, ever, ever, forget who owns the money in that account.

3. GET THE FACTS ON THE TAX - Use tax-efficient instruments! Don't pay taxes when you don't have to. Uncle Sam gives you plenty of options to reduce your taxes. Remember, reduce your taxes, increase your income! Although it may seem overwhelming finding tax deferred or tax-free investment opportunities, financial products with tax benefits make a huge difference in the long-term viability of your retirement portfolio. Simply being a good saver is no longer enough to get you through the retirement years comfortably. What would you rather do, pay 24 cents of every dollar or just 10 cents in taxes? Reducing your tax liability might be more beneficial than taking that second job. Bank CDs are good examples of how Americans take the easy way out. There is nothing wrong with a bank CD but in most cases, they just don't give you many tax benefits.

4. THE LONG-TERM CARE SCARE - If at all possible, protect your assets by purchasing a long-term care insurance policy. If the cost scares you then just compare it to the cost of robbing your savings or investments to pay for long-term care. There are two benefits to a quality long-term care insurance policy. First, the care itself and, equally important is the fact that long-term care insurance may allow you to leave your investments alone so that they can keep working for you.

5. BECOME A DAY TRADER - NOT! - Late-night infomercials on television are pushing weekend seminars, books, and CDs that brag up how easy it is to make money by learning to be day traders, playing with futures, or gambling in currency markets. There is some fertile ground to make a ton of money here, provided you're the one selling the get-rich-quick seminars, books, and CDs. If you have a serious interest in professional investing and the time to learn, then go for it. But, you won't likely become a successful investor overnight. Save your money. Don't call that 800 number but discipline your life to fund consistent, methodical investment programs in financial instruments that you understand.

6. BECOME A CONVERT - Convert under-producing assets into higher producing assets. Equity in your home, low paying bank CDs, bare land that isn't rented, are all under-producing assets that could be leveraged into higher-return investments. Don't assume that having a long list of assets means you have a long-term financial plan. Even rental properties may be under-producing assets. Converting under-producing assets takes a more sophisticated assessment but it is definitely worth investigating. If you already have the asset, make sure it's working as hard as it can. See a retirement planning specialist.

7. DON'T BE REVERSE AVERSE! - Consider a reverse mortgage but do so carefully. This doesn't work for everyone but it can be a helpful tool in creating income during retirement. A reverse mortgage might be a great way to generate a little retirement income but it comes with some serious strings attached. How well will reverse mortgages work? It depends on your age, equity, and the cost to put this deal to bed. There are certain costs associated with reverse mortgages that might outweigh the actual benefits so do your homework before signing on the dotted line. If you would like to stay in your home for the rest of your life and you are willing to put that intention in writing then a reverse mortgage might be right for you. Make sure you have references or referrals for any broker you work with to put your reverse mortgage together.

8. GET A LIFE WITH LEVERAGE - There are many ways to leverage tax advantages through legitimate life-insurance strategies. Having a policy that is going to protect your loved ones once you die is important but there are other ways you can use life insurance as a tool to protect your assets and income. It's perfectly fine to talk with your life insurance agent about her ideas on this but get a second opinion and professional guidance from your accountant or retirement planning expert. If you've put off getting life insurance, premium financing (borrowing money to finance the cost of your insurance premiums) can open some very interesting financial opportunities. This requires professional guidance.

9. START POUNDING COMPOUNDING INTO YOUR HEAD - Every minute works to your advantage with compounding interest. Interest you earn this year is added to your principle and then you begin earning more interest on that interest. Well, you get the picture.

Even the most basic investment plan can be better than none if it allows for the proven benefit of compounding interest. The secret ingredient of compounding interest is just time on the clock. Oops, there goes another minute, or was that another dollar? Never forget this! The absolute next best thing to starting saving and investing when you are young is starting now!