You alone are responsible for saving money for retirement. Furthermore, once accumulated you must manage the money so you won't outlive it. Most employers have dismantled their corporate-sponsored pension plans and shifted the burden to their employees; today's mass advertising fosters "consuming for today" rather than "saving for tomorrow"; the national savings rate is dismal; lifespan is increasing; the age for Social Security is rising as are taxes on the benefits; inflation is eroding purchasing power. The result is visible since the average American over age 60 has saved $60,000 for retirement. According to a recent Boston College report, about 45% of working-age households will be unable to maintain their pre-retirement standard of living in retirement. You may be above average and better prepared than most, but don't let your guard down yet. There are still pitfalls like bad investments, costly medical problems, taxes and inflation that can ruin your retirement plans. You must stand guard against avoidable mistakes like taking unsuitable risks and allowing your money to be lazy in low rate, taxable places.



The best places for your retirement money vary with tax, demographic and technological changes: what was appropriate yesterday is inferior today. The solution is "education" and/or obtaining the services of a financial professional. Education is more than learning about an investment someone wants to sell you. One non-threatening and easy path to education is the free Internet Seminars about retirement investing. These are available as a public service by the financial professional who wrote this Newsletter. You remain at home, free of sales pressure and anonymous. This educational enlightenment will arm you to make better investment decisions with your retirement money. Past topics have included "Managing Your Retirement Money" and "Positioning Your Money for Retirement". Look for Seminar updates on http://seniortaxsavings.retirerx.com. Why should you take advantage of these educational opportunities?

Knowledge is power! Even though you can learn about medical procedures from reading books, you'd be ill-advised to attempt a major medical operation based on "book knowledge". The same is true of retirement investing. I find it curious that in almost every facet of life you seek professional advice: you pay CPAs to do your taxes (a good investment), you don't attempt dentistry (it's painful enough as is), air conditioners and computers are beyond comprehension, but somehow investing requires no special knowledge. Therefore, why should you have a professional involved in managing your money? Let's review the reasons!

In days gone by, you put your money in an interest-earning account at the bank. You slept soundly knowing it was safe, earning interest and being loaned locally to help your friends and neighbors. But banks changed, and not for the better. They are no longer locally owned, they no longer pay good interest rates, and are no longer personable. Many now employ inexperienced sales people who offer you mutual funds, stocks and insurance policies without first determining their suitability. The trust you once had for bankers ranked with your doctor, but no longer. Bankers are now more likely to "sell" you something than give you sound financial advice. The bank may not be the best option you have - especially for money you'll not need for five years or longer.

There has been no change in your stock broker: she or he still sells securities whose value waxes and wanes with the market. Lip service is paid to providing suitable investment but the recommended list remains the same: stocks, mutual funds, variable annuities and bonds which all have "risk" in common. In retirement your primary source of income, along with a pension if you're fortunate and Social Security, is from your investments. You can't afford investments that lose value when the market hiccups as it did in 1999-2002! Make no mistake about it, most brokers recommend risky investments whether you're a working twenty-something or a retired seventy-something. Your retirement income should not be "at risk" in the market!

There is a new sheriff in town: financial professionals well versed in learning about your risk tolerance, needs, aspirations, capabilities and circumstances before making recommendations. They may work for a fee or earn commissions, but most are independent of bank and brokerage firms. They are under no pressure to sell their employer's inventory. This is the professional that can help you craft a retirement plan. Granted, you'll still need to keep money at the bank and taking market risk may still be suitable, but your basic retirement money - what's between you and poverty - should be secure and safe always. Don't unknowingly take risks you can't afford. Learn the good and bad by participating in the free Internet Seminars offered by the professional who wrote this Newsletter. Remember: knowledge is power!

Summers Asset Management Group

Russell D. Summers, CAC

Certified Annuity Consultant

http://seniortaxsavings.retirerx.com/

Phone:727-678-2778

Summers Asset Management Group specializes in providing investment planning and guidance for those who are seeking a better lifestyle in retirement. Whether you have a retirement nest egg of One Hundred Million $50,000, we can help you make sure it works as hard and as smart as you did in earning and saving it. If you're typical, your retirement could last as long as 30 years and you simply cannot afford to make investment mistakes with your retirement money and run the risk of ruining your lifestyle during your leisure years. We have helped literally thousands of individuals and couples, at all economic levels, to enjoy a worry free retirement knowing that their money is safeguarded, plus working hard and smart, and ready for them when needed.