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The reality of retiring at the age of 65 seems to be a thing of the past. Millions of Americans are entering retirement age without enough funds to allow them to live the lifestyle they once had. Even though we are all told to start investing early in life, many don’t for one reason or another. Some had a good plan of saving, but something happened and they lost their nest egg. I have talked to many people over the years who wished they saved more or wished they had started earlier. Just know this, IT IS NEVER TOO LATE TO PLAN AND SAVE. Don’t dwell in the past and think “If only I…” This will paralyze you when thinking of the future. I have people contacting me in their 50’s or even 60’s who are concerned they hadn’t saved nearly enough and would never be able to retire. We take a look at their total picture and even though early retirement may not be a reality, we make a plan. Here are a few tips Look at Your Current Situation Be realistic and determine how much money you will need to save to live a comfortable retirement. Once you’ve come up with a number, take action immediately to create your savings plan. Really look at your spending habits. Are you a shopaholic and have a closet full of clothes that still have the price tag attached? Look for ways you can cut back on spending. Look at Your Savings Options It is critical to start saving as fast as you can. If you already have retirements accounts you will want to make sure to max out your yearly contributions. You may also need to open additional accounts in order to save what you need. A diversified portfolio will help a steady return on your contributions. Look into Money Saving Options If you struggle in saving the amount of money you need each month there may be creative options to boost the amount in your account.  Ask yourself: Can I downsize? Look at your current living situation. Have the kids moved out and there is no longer the need for such a large living space? Do you have large ticket items you no longer use or need? For example, assess if you really need that boat that hasn’t even touched water since the summer you bought it. Or, reevaluate the reality of when you’ll actually use the RV that hasn’t logged any miles for years. It isn’t too late to take charge of your financial future. But, only you can make it happen. Instead of thinking, “I coulda”, I shoulda”, or “I woulda”, take control. Get help in your financial journey and plan for a comfortable future.

This article is from: What You Should Know About Your Retirement Plan, U.S. Department of Labor, Employee Benefits Security Administration If you leave an employer before you reach retirement age, whether or not you can take your benefits out and/or roll them into another tax-qualified plan or account will depend on what type of plan you are in. If you leave before retirement, can you take your retirement benefit with you? If you are in a defined benefit plan (other than a cash balance plan ), you most likely will be required to leave the benefits with the retirement plan until you become eligible to receive them. As a result, it is very important that you update your personal information with the plan administrator regularly and keep current on any changes in your former employer’s ownership or address. If you are in a cash balance plan, you probably will have the option of transferring at least a portion of your account balance to an individual retirement account or to a new employer’s plan. If you leave your employer before retirement age and you are in a defined contribution plan (such as a 401(k) plan ), in most cases you will be able to transfer your account balance out of your employer’s plan. What choices do you have for taking your defined contribution benefits? Leave Alone – you can choose to leave the money in your former employer’s plan, if permitted. A lump sum – you can choose to receive your benefits as a single payment from your plan, effectively cashing out your account. You may need to pay income taxes on the amount you receive, and possibly a penalty. A rollover to another retirement plan – you can ask your employer to transfer your account balance directly to your new employer’s plan if it accepts such transfers. A rollover to an IRA – you can ask your employer to transfer your account balance directly to an individual retirement account (IRA). If your account balance is less than $5,000 when you leave the employer, the plan can make an immediate distribution without your consent. If this distribution is more than $1,000, the plan must automatically roll the funds into an IRA it selects, unless you elect to receive a lump sum payment or to roll it over into an IRA you choose. The plan must first send you a notice allowing you to make other arrangements, and it must follow rules regarding what type of IRA can be used (i.e., it cannot combine the distribution with savings you have deposited directly in an IRA). Rollovers must be made to an entity that is qualified to offer individual retirement plans. Also, the rollover IRA must have investments designed to preserve principal. The IRA provider may not charge more in fees and expenses for such plans than it would to its other individual retirement plan customers. Please note: If you elect a lump sum payment and do not transfer the money to another retirement account (employer plan or IRA other than a Roth IRA), you will owe a tax penalty if you are under age 59½ and do not meet certain exceptions. In addition, you may have less to live on during your retirement. Transferring your retirement plan account balance to another plan or an IRA when you leave your job will protect the tax advantages of your account and preserve the benefits for retirement.