1. GET A PLAN, STAN! - An estate plan. A financial plan. Yup, it's a cold fact. Any 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. Face it, no plan and you're giving too much to the man... 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. One way to start right now is to call a retirement specialist or a referred financial planner. You should probably start with the basics like setting up your will, living trust, and depending on how many assets you have, a trust. 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. You really shouldn't call a bank CD a 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.

Your employer most likely is pleased to share the details behind the investments they are making in your name. 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! Hold onto your money as long as you can and reduce your tax liability every chance you can. Your friendly neighborhood federal government gives you ample options to lower your taxes so take advantage of every one you can. It's quite simple. Reduce your taxes and you 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. Being a great saver doesn't cut it. Your basic savings account is going backwards compared to what you need for your retirement years. What would you rather do, pay 24 cents of every dollar or just 10 cents in taxes? Taking a second job is likely not as good of an idea as just reducing your taxes. 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 primary benefits to most long-term care policies. 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. This is a great way to make a ton of money without lifting a finger... provided you're the one running that obnoxious infomercial. If you have a serious interest in professional investing and the time to learn, then go for it. It's not likely you'll be an overnight success in the world of investing. Nobody is, overnight that is. 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. Surprisingly, even a cash-flowing rental property might fall into the category of 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 financial planner.

7. DON'T BE REVERSE AVERSE! - Evaluate the pros and cons of reverse mortgages very 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 can be very high costs associated with the way some lenders do reverse mortgages so do your homework before you sign up for this one. 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. LEVERAGE THE LIFE YOU HAVE - Taxes are a part of life so why not make life a part of taxes? We're talking life insurance here folks. 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 will require direction from financial experts.

9. START POUNDING COMPOUNDING INTO YOUR HEAD - Every minute works to your advantage with compounding interest. Interest paid this year will gain more interest next year Make interest on your interest, on your 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 magical ingredient of compounding interest is time. 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!