Most of us have some dream of retirement. Retirement is different for everyone. Some dream of travel, others of spending time with Grandkids, some wish to volunteer, but no retirement? For some, that is their dream.

Many people love what they do and cannot imagine not doing their chosen profession until they pass on. The idea of retiring would be certain death in their eyes – their work is their passion. If you fall into this category, you must still plan for retirement even if you delay that date forever.

Illness, disability, or death or disability of a loved one, may all be reasons you have to retire before you want to. Planning for retirement at a “normal” age will put you in a position of choice. When working is not working at all, it is much better to be prepared. Choice and preparation equal peace of mind for your future.

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If you look at the surface, you might pick the SEP IRA because the limit is $51,000 vs. $17,500 for a 401(k), not including the over 50 provisions. If we scratch the surface, we learn that the SEP IRA is really limited to 20% of your income after a reduction for self-employment tax.

Crunch the numbers; it is the only sure way to determine which type of retirement account will allow you to contribute the most.

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Every good financial plan has a built in buffer, or stash of cash, you will need in case of emergencies. The questions becomes: how do you calculate what is right for you?

You need to look at your essentials:
Housing, food, clothing, transportation, health insurance, and utilities are some of the basic essentials we all need. It is a good idea to have 6 months of these essentials stashed in a savings account as a safety net.

How do you get started?
Once you have established what your list of essentials will cost you each month, you need to start stashing. If that monthly amount is $2000, then start saving $500/mo. until you have your full buffer saved. Small bites will allow you to accumulate your stash.

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When it comes to planning for retirement, there is a lot to consider. What you can control plays a big part. For example, you can control your expenses. Let’s look at coffee. Many people like to buy a premium coffee each day at a cost of about $5.00/cup. You can invest in a good coffee maker, buy a pound of premium coffee and brew your own each day for much less than the $5.00/cup. This example is a small one, but a number of small changes add up to big savings.
You can control some of the costs of investing. By working with a CFP® Professional, you may be able to attain investments at institutional prices while getting expert advice for a very reasonable fee.
You can control your expectations. By being disciplined and engaged, you can control how you feel about the growth of your retirement portfolio and block out some of the noise from the instant news about the markets.

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Life is never boring, there are constant changes. Some make us happy, others, not so much. Here are a few life changes that should prompt you to change your will.

You got married!
Not all States automatically consider your spouse as the primary beneficiary. You need to state this in your will. While you are at it, change your 401k, IRA, and life insurance beneficiary at the same time.

You have kids!
We all think about college for our kids but what if something happens to you? You need to think about not only the financial needs of your child but also the emotional and life style, religious preferences, and values with which your child will be raised. When it comes to naming a guardian if you are not around, these needs may be provided from one or more of the people in your life. You need to name a guardian for the physical and financial well being of your children.

You got divorced!
Many times, we see clients have not changed their beneficiary once a divorce occurs. You need to review all of your accounts and estate issues. If you remarry, you will not want to forget your new spouse.

You move to another State!
Often, this is due to retirement, a big life change. Not all States have the same laws regarding health care, guardianship for the elderly, estate and income tax. Please update your will and all estate planning documents when you move.

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Q: I have $35,000 that I received from the sale of property that I would like to use over the next 6 months to fix up my kitchen. Where can I invest this money to get more than the .25% my bank will pay?

A: Because you wish to use these funds in less than 24 months, you cannot “invest”, you need to just “save” the $35,000. Short term funds, as well as emergency funds need to be liquid. Your bank savings or money market account is the best place to park these funds.

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I am here to tell you, we may be able to help.

57% of 401(k) participants wish it was easier to manage their 401(k) accounts. Many participants are suffering from what I call “analysis paralysis.” Too many choices, how do they mix with other investments, which investments are right for me?

A 401(k) is the easiest way to save for retirement. Payroll deduction of whole, pre-tax dollars, allows an employee to accumulate a retirement nest egg almost without thinking. But then there are the choices: how much to contribute, which funds to pick, how often to re-balance – it can be overwhelming.

At Certified Financial Group, Inc., through our affiliated Registered Investment Advisor firm, we manage 401(k) accounts for our clients. The account stays right where it is; with your permission, we just have access to the account. I can help my clients with all of the concerns I have just listed. I do the analysis on the investment choices and co-ordinate them with their outside investments so my client has true diversification. I perform a quarterly analysis of the funds to make sure their retirement is on track. If there is a change in income, the contribution is adjusted.

Call me for a second opinion and to learn how you can take yourself out of the 57%.

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I love shoes, what girl doesn’t? Many years ago, a wise man told me to buy better quality shoes; they can be re-soled, and will last longer. I started down that path. It took a while to get used to spending a bit more per pair, but buying fewer shoes. This is the lesson that many people take into retirement. Budgeting is a big issue in retirement – spending usually declines in the areas of food, transportation, and personal care, (i.e.) clothing. Let’s take a look at how these areas of spending change in retirement.

Transportation is easy – if you are not driving to work each day, you usually spend less on gas and auto maintenance. Many people will eat lunch out almost every day while on the job, and there is often a business dinner. Once you retire, cooking at home becomes an art or hobby for many people, as well as a money saver. Then there are the shoes….

A work wardrobe generally cost more than a leisure wardrobe. There is less of a need for a suit & tie or the business dress, but we all like to feel good in what we are wearing. Buy quality clothing and shoes vs. quantity. Your budget and piece of mind will be richer through your retirement.

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