Many times, people put off saving for retirement, which can seriously derail retirement planning. While it’s always a good idea to have a trusted financial advisor with whom you can speak about your goals and progress, these 10 tips will get you started on the right track to saving for retirement.

1. Put as much money into your company’s 401(k) as you can. The maximum cap is 15%, but at the very least, contribute up to what your company matches. Otherwise, you’re throwing away free money.

2. If your company does not offer a 401(k) plan, open your own IRA (Individual Retirement Account).

3. Pay yourself first. Have money automatically deducted from your paycheck and invested for retirement.

4. Do not dip into your retirement savings, before seeking advice from your financial advisor.

5. Set new priorities to spend less and save more – now. Sometimes this means selling a more expensive car and buying a cheaper one to cut back on your car payments, thus giving you more money to sock away.

6. Develop a retirement savings plan with the help of a financial advisor. It’s important to be realistic and know how much money you will need to live the lifestyle you want in retirement.

7. Invest your savings appropriately. Learn when to take on more risk and when to take on less.

8. Commit to saving more. Calculate the most you think you can put away for retirement, and then add 10% to that amount. That’s a big commitment, but well worth the rewards.

9. Don’t “cash in” your retirement money when switching jobs as you could lose money to taxes and penalties. Instead, roll your money over to another plan or an IRA.

10. Start now! No matter how young or old you are, you don’t have time to waste. Starting to save immediately will get you on the right track for retirement that much sooner.

If you are age 50 or 60 and you actually feel 10 or 15 years younger, it just might be shocking to be called Grandmother Jones at the grocery store. You know who Grandmother Jones is; she’s your husband’s mother, and certainly not you. As a child, your Grandma and Grandpa’s last name may have been included when you spoke of them, so you could identify which set of grandparents you were referring to since both were called the same.

Over the years we have moved from Grandmother and Grandfather to Grandpa and Grandma, and then on to Meemaw and Pawpaw type names.  For you and other forever-young baby boomers, Gran, Granny and Gramps just won’t do. It doesn’t feel right, and the baby boomer generation was built on “how it feels” related issues.  The whole generation is, in fact, reinventing old age according to the experts at AARP.

As it turns out, men are showing that they are just as sensitive to age-related names as women are. Pawpaw does still work for some, but most are now looking for a unique representation of who they are. One of the writers for Saturday Night Live reported that he wanted to be called “Sheriff.”   Some go for names that are a cue to their personality or even an extension of their own name, like Skipper or Coach.

I have a friend whose grandmother’s name is Honey, another Sweetie, and still another is called Mia and a grandpa who is called Tooie.  Nana remains a popular overall choice. One grandmother chose Oma and another YiaYia (YaYa) even though neither was German or Greek.  We have lost any inhibitions of a name being related to nationality and sometimes choose one specifically because of that to express our historical background.

Often the children of baby boomers are puzzled that their parents are so determined to finding a name that they can call their own.  Mia’s daughter asked her “are you afraid to be called Grandma & Grandpa, are you concerned that it sounds too old?”  Some of today’s boomers say it’s not about trying to stay young, it’s about recognizing their individuality.  So these new grandparents have managed to convince their children and come up with a name they can all agree to.

Then again, one grandmother says she doesn’t care what her granddaughter calls her, just so she calls her.

Grandparent’s Day is September 11th and is a day set aside exclusively for your grandfather and grandmother who have played a very influential role in your family.  No matter what you call them, enjoy and celebrate their impact in your life and your children’s.

Knowledge can be taught, but wisdom?  Yes, I think so, through example.  When you are the luckiest people in the world getting to have special time with your g-kids, make sure you intentionally and delicately bestow some good virtues on them.  Make a point to express how important it is to you to: turn the lights off when you leave a room, take some of your extras to the local food pantry to help others who need them (the process of collecting and preparing the items will actually be a fun time), make soft and gentle comments about what type of songs you want and don’t want to hear on your radio.  Careful not to overstep, but you can let them know that for you some of the words or phrases in some songs are just hard for your heart to hear.

Listening is such an extreme luxury for the kids nowadays.  Let them talk; let them tell you about them and their world as they see it.  It may not be really easy to get going but once the joyful words start flowing they will love the time and interest you are showing.  Kids lives are generally so fast paced that getting to talk; really talk about what is happening with them will be a refreshing treat, one that can ultimately set a tradition with both of you and hopefully may build solid link forever.

Get them outdoors.  Kids just don’t get outside enough anymore so whenever possible, get your grandkids out of the house, away from the TV, the computer, and the Wii. When you were kids you probably spent a lot of time in the backyard. When you have the kids over, take them out in your yard and play or take a nature walk.  Walk along a stream. Skip rocks on a lake. Get them swimming in something other than a chlorinated pool. Gaze at the night sky. Find the Big Dipper. Count shooting stars. Contemplate the universe and God and man together.   You live in Texas and there are no wider- open spaces to teach them to adore.  Show them what nature has to offer.

Share life with them. Remember that old adage that a picture is worth a thousand words, well it is useless if no one sees it.  Pull out old pictures of you to share with them, make sure they know and remember the younger you too.  The same goes for their parents.  Bring out Mom or Dad’s kiddo photographs and talk about the days of, the laughs and the goobers that were made.

Memories of a lifetime are made from the simplest pleasures.  Enjoy your special time with the Grandkids.

By 2020, there will be more than 40 million licensed drivers age 65 and older, according to AAA. This group is more likely to wear their seatbelts, less likely to drink and drive, and less likely to speed, BUT, more likely to be seriously injured in a car crash.

The senior group have the second-highest crash death rate per mile (next to teenagers), and are at the highest risk for intersection crashes. They also are more likely to injure themselves than others in a crash.

The ability to get around in the future was named as an area of concern so high that it was only topped by financial security and healthcare cost, in a recent AAA survey of more than 1,000 seniors. Almost 90 percent of those 1,000 seniors said they drive themselves to get around on a daily basis.

Because of this concern, family apprehension and the senior groups desire to change these statistics several groups, including AAA, are looking seriously at efforts to help seniors improve their drivers safety.

The automobile association has developed “Roadwise Review: A Tool to Help Seniors Drive Safely Longer,” a computer-based screening tool that enables older drivers to test their cognitive, physical and visual abilities in the privacy of their own homes.
The tool helps identify physiological changes that could affect driving and problem areas correlated with crash risk. For instance, it tests flexibility, the ability to see in low light and to scan across a field of view, all functional abilities critical for safe driving. “Roadwise Review” also offers practical suggestions for improvement. The measures in AAA Roadwise Review were scientifically validated in a study of crash risk in nearly 1,000 seniors.

The most important and positive action you can take is to decrease the driving risks associated with aging. Do not wait until problems become serious. Tending to your health and well-being on a regular basis can help in your efforts to stay independent and mobile. Some of the most common risk factors related to safe driving are listed below along with suggested steps you can take:

Visual decline:  Get your eyes checked yearly and make sure that corrective lenses are kept current.  Keep your windshield, mirrors and headlights clean.

Hearing decline: Get your hearing checked yearly and if hearing aids are prescribed, make sure they are worn while driving.

Mobility and reaction time: An occupational therapist or a certified driving rehabilitation specialist can prescribe equipment.

Medicine: Talk with a doctor about the effects of medications you are taking on driving ability.

Sleeping well is essential to driving well. If there are problems, try to improve nighttime sleep conditions and talk with a doctor about the effect of any sleep medications on driving.

Aside from taking care of your health, you can take an active role in helping yourself or another senior to drive more safely.
Find the right car and aids you need for driving. Choose a vehicle with automatic transmission, power steering, and power brakes. Keep your car in good working condition by visiting your mechanic for scheduled maintenance.

Take it slow and give yourself plenty of room. If cars are passing you on both the right and left lanes, you may be driving more slowly than you used to. Move into the slow lane so others can pass you safely. Also, to avoid problems if the vehicle in front of you stops suddenly, stay back about two car lengths. Be sure to yield the right of way in intersections. Senior drivers accidents are statically the highest at intersections when making left turns. Work to avoid those scenarios altogether by making successive right turns and keeping going around the block or blocks to get to your destination.

Avoid distractions. In general, many accidents happen because of distractions like talking on the phone, tuning the radio, eating or drinking, reaching for something, turning your head to talk with a passenger or looking around at the scenery instead of the road. Even a few seconds of taking your mind off driving can be precarious.

Avoid uncomfortable driving situations. Many senior drivers voluntarily begin to make changes in their driving practices. For instance, you may decide to drive only during daylight hours if you have trouble seeing well in reduced light. If fast-moving traffic bothers you, consider staying off freeways, highways, and find street routes instead. You may also decide to avoid driving in bad weather (rain, thunderstorms, snow, hail, ice). If you are going to a place that is unfamiliar to you, it is a good idea to plan your route before you leave so that you feel more confident and avoid getting lost.

For more information, contact your local AAA club or visit www.aaa.com/publicaffairs.

At the time, her eleven year old wanted muscles, and it was as simple as that. She felt he was a bit young to join a gym or health club, so she signed him up for Martial Arts classes.  After watching a few classes, she decided this would be an excellent activity for the whole family.  Both her boys loved it, the oldest earning a brown belt and the youngest earning a black belt.

Betty Ortez too earned a black belt and today, 27 years later, she hasn’t stopped.  Betty says she is still hooked on the sport that has allowed her “ loads of fun, improved coordination, strength, endurance, flexibility, self-awareness, self-defense tactics, concentration, posture, cardio, physical fitness, and it has been an excellent tool in lowering stress levels”.

A public school teacher, a mother of three boys, a grandmother of seven, and now, at age 64, she is still practicing Karate and Brazilian Jiu-Jitsu and proclaims that Martial Arts is the best exercise you can do, because it works all parts of the body and mind at the same time.

For twelve years, she taught martial arts at local gyms and fitness centers.  Her husband helped at times as did her son and this gave them more time to work out together and to continue the family tradition.

“When you become so involved with what you are doing, such as outsmarting your opponent, or accomplishing a specific Martial Arts skill, you forget about the difficulty level involved. Soon you realize how much you have accomplished, and you just constantly want to learn more”.

Betty Ortez is calling out to local seniors to check out Martial Arts.  “At any age, it is an easy program to get involved in; it is just perfect for seniors”.

by Mark S. Stegman, Financial Advisor, ameripriseadvisors.com/mark.s.stegman

One of the biggest hurdles to the passage of the sweeping health care overhaul was to determine how it will be funded. The Patient Protection and Affordable Care Act will tap a variety of funding sources, and will shift some costs from one part of the system to another as modified by the Health Care and Education Affordability Reconciliation Act of 2010. As a result, the average health consumer may see shifts in their premiums, taxes, deductibles, and co-pays. Here are four ways in which the health care reform bill might possibly change your finances, and each of them is worth watching.

You may receive a tax subsidy.
The new law establishes state- or region-based insurance exchanges where individuals and small businesses can shop for insurance plans. These regulated plans will be subject to standardization rules, and may offer better benefits than some current plans – but that may also drive their price tag higher. Enter the tax subsidy program, which will offset some of the increased cost of plans available in the exchanges, beginning in 2014. Families earning up to four times the poverty rate ($88,200 for a family of four in 2009) will be eligible for a tax subsidy that ensures they pay no more than 9.5 percent of their income.

You’ll pay if you don’t play.
Beginning in 2014, the federal government will fine those who don’t have health insurance. Why? Those most likely to risk living without health insurance are the young and the healthy. However, when insurers are forced to cover anyone who applies, and the healthy people leave the system, the insured pool is likely to need more health services, and be more expensive on average. That starts a negative trend where premiums are driven higher, and even more healthy people opt out.

The insurance mandate, for which there are only a handful of exemptions, will levy fines that go up for the first three years.

You might pay more if you earn more.
Couples who earn more than $250,000 a year, and singles earning more than $200,000 through wages or self-employment, will be subject to an additional tax starting in 2013. If you fall into one of these categories, you will pay an additional 0.9 percent tax for Medicare Part A (hospital insurance) on earned income over the threshold amount. Additionally, for couples with modified adjusted gross income (AGI) over $250,000, ($200,000 for singles) there is a new Medicare surtax of 3.8% on the lesser of net investment income or the excess of AGI over the threshold amount. This tax also begins in 2013.

Your premiums might rise.
Insurance policy pricing today is based on risk. So, sicker people pay higher premiums and healthier people pay less. The reform effort seeks to even out those premiums, which will help those at a higher risk, but it will hurt those on the lower end of the risk scale. Subsidies, and the ability to remain on a parent’s plan longer, will help offset the increased cost.

Other Implications.
Other ways that individuals may be affected is in the way plans may evolve to avoid being in the so-called Cadillac Plan tax. Plans may ask enrollees to share more of the costs for premiums, co-pays, and deductibles. The use of Health Savings Accounts (HSAs) where individuals save money for out-of-pocket health costs on a tax-advantaged basis may increase.

There is one sure thing: the reform bill will have an impact on the entire industry. So, no matter whether you remain with your employer-sponsored health plan or you take advantage of a new plan through your state’s insurance exchange, there will be changes. Changes worth watching.

The single best step an older smoker can take to improve their overall health, add years to their life and keep money in their pocket is to quit – and it’s never too late! Fortunately, there are more tools and treatments available today that can help.

There are more than 45 million people in the U.S. who smoke cigarettes, about 13 million are age 50 or older, and a whopping 4.5 million are 65-plus. Research has shown that quitting, even after age 65, reduces risk for coronary heart disease, emphysema, lung cancer, osteoporosis, hearing loss, cataracts, impotence, poor circulation and Alzheimer’s disease. It also helps you breathe easier, smell and taste food better, not to mention saves you quite a bit of money.

According to the Center of Disease Control and Prevention (CDC), about 60 percent of older smokers indicate they would like to completely quit, but because of the nicotine, which is considered to be more addictive than cocaine or heroin, it’s very difficult to do. Here are some tips experts recommend that can help older smokers kick the habit.

The first step you need to take is to set a “quit date,” but give yourself a few weeks to get ready. During that time you may want to start by reducing the number or the strength of the cigarettes you smoke so you can start weaning yourself. Also check out over-the-counter nicotine replacement products (patches, gum and lozenges) to help curb your cravings. And just prior to your quit day get rid of all cigarettes and ashtrays in your home, car, and place of work, and try to clean up and even spray air freshener. The smell of smoke can be a trigger.

Studies have shown that you have a much better chance of quitting if you have help. So start by telling your friends, family and coworkers of your plan to quit. Others knowing can be a helpful reminder and motivator. Then get some counseling. Don’t go it alone. Free one-on-one telephone counseling, as well as coping strategies and referrals to local smoking cessation programs are available through the national tobacco “quitline” at 800-QUIT-NOW. The National Cancer Institute also offers a free smoking quitline at 877-44U-QUIT. You also need to make an appointment with your doctor to talk about prescription medications that are extremely helpful at reducing nicotine cravings.
It’s also important to identify and write down the times and situations you’re most likely to smoke and make a list of things you can do to replace it or distract yourself. Some helpful suggestions when the smoking urge arises are to call a friend or one of the free “quitlines,” keep your mouth occupied with some sugar-free gum, sunflower seeds, carrots, fruit or hard candy, go for a walk, read a magazine or take a hot bath. The intense urge to smoke lasts about three to five minutes, so do what you can to wait it out. It’s also wise to avoid drinking alcohol and steer clear of other smokers while you’re trying to quit. Both can trigger powerful urges to smoke.

For more tips on how to quit, including managing your cravings, withdrawal symptoms and what to do if you relapse, visit www.smokefree.gov. Medicare can also help (see www.medicare.gov/health/smoking.asp or call 800-633-4227). If you have Medicare Part B, smoking cessation counseling is covered if you’re diagnosed with a smoking-related illness or are taking medicines that tobacco use might affect. And if you have a Medicare Part D prescription drug plan, certain smoking-cessation medications are covered. Medicare does not pay for over-the-counter smoking-cessation products – patches, gum and lozenges.

Excerpts taken from The Savvy Senior, Jim Miller

In the course of a year, most of us donate a certain percentage of our income to charitable organizations. The only real questions are “when?” and “how?” to give.  Like most things financial, you can increase the impact of your charitable donations if you have a plan in place.

Include charitable giving in your budget. Rather than giving when the mood strikes, make a commitment to giving in your monthly budget. After setting aside savings for your future, allocate an amount you can afford to give. Putting your giving goals on paper can help you be more intentional about your giving and allows you to increase or decrease your cash donations based on your financial circumstances.

Zoom in on nonprofits whose missions match your values. From saving the whales, to providing mosquito netting in malaria-prone areas, to funding a food shelf — there are countless worthwhile causes you could support. Focus first on one or two whose work is near and dear to your heart. Learn more about each charity to make sure you agree with the organization’s goals and activities.

Evaluate the financial health of your favorite charity. Not all nonprofit organizations are disciplined in their business practices. Take time to learn how your charity of choice is organized and run. How will your money be spent? Check to see that the organizations you support are doing their best to keep operational costs to a minimum so that the majority of the money they raise goes toward making a difference versus soliciting donations or paying the rent.

Stretch your giving. Giving that has an element of sacrifice tends to be more meaningful for the giver. Set a goal to increase your giving if you’re not where you’d like to be yet. Consider reducing spending in another area of your budget to increase your giving.

Give in more ways than one. It feels good to give — and even better when the giving is hands-on and personal. Get involved with the charities that matter to you. In addition to writing a check, consider giving your time and talents. You might also be able to donate stock or other items of value.

Get advice. Talk to your financial advisor about how your charitable giving fits into your overall financial plan. Your tax professional can also provide insight into tax advantages and other tax considerations related to charitable giving.

Mark S. Stegman, Financial Advisor
Learn more at:  ameripriseadvisors.com/mark.s.stegman

These are times that find many people moving on from their jobs, sometimes by their own choice and sometimes not. If you’ve left your job or may be doing so soon, you might be wondering what to do with the retirement savings you’ve accumulated through the plan sponsored by your employer (such as a 401(k) or 403(b) plan).

You have four basic options:
•  Take a cash payout
•  Leave the money in the former employer’s plan
•  Move it to the plan offered by your new employer
•  Roll the dollars into an IRA

Cashing in
Some are tempted to take the cash payout, and though enticing, this option should almost always be avoided.  The distribution will generally be treated as ordinary income and subject to mandatory 20% federal tax withholding, and, if you have not yet reached age 59-1/2, subject to a potential 10% penalty for early withdrawal of qualified retirement plan assets.  Unless you’re desperate for cash and all alternatives have been exhausted, cashing in on your retirement savings plan is costly and unwise.

Keeping money in an employer’s plan
If you feel comfortable with investment choices offered and familiar with how it works, you might consider leaving your money in your former employer’s plan.  Keep in mind that your money will be subject to the terms of provisions related to investment options and withdrawal options. In effect, you will probably have less control over your money than if the funds were rolled into your own IRA.  Some people like the idea of rolling retirement plan dollars with their new employer. This option offers the convenience of having all of your dollars in one plan. However, there still may be limitations with the plan. Be sure you are confident the new workplace plan gives you enough investment flexibility to make the most of your retirement savings.

Rolling it into an IRA
An alternative approach is to roll money from your former employer’s plan into your own IRA account. An IRA typically offers you the ability to put your money to work in a wide variety of investments, including individual stocks, and a fair amount of flexibility to move money from one investment to another.  If you decide to roll your savings from a workplace plan to an IRA, make sure the transaction is a direct rollover to the IRA custodian. A distribution paid to you raises a number of possible tax implications, such as mandatory 20% withholding.  If you are considering a rollover, you might also consider a Roth IRA, which creates the potential for tax-free withdrawals from your IRA savings in the future, which could greatly enhance your long-term financial security.  However, converting to a Roth IRA is generally taxable as ordinary income, so you have to weigh your options carefully to figure out what’s in your best interest. Talk to your financial and tax advisors to determine the best option for you.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.  © 2010 Ameriprise Financial, Inc. All rights reserved.

excerpts from “Plan Now For A Better Future” Much of today’s emphasis is on the need for aging Americans to take care of their physical well-being in order to ensure a healthy future; it can also apply to their financial well-being. Not only personal finances, but how older Americans help keep the overall economy alive. Money is a bit tight right now, but just a little extra effort today in financial planning can yield big dividends later on no matter what your age. Here’s why.

A study on retirement satisfaction by researchers at Boston College asked retirees this question: “All in all, would you say that retirement has turned out to be: very satisfying, moderately satisfying, or not satisfying at all?” They found that among retired couples, those who answered “very satisfied” or “moderately satisfied” had income in retirement replacing 72 percent of their pre-retirement earnings, while those who said that their retirement was “not satisfying at all” had income replacing only about 60 percent of their pre-retirement earnings.

If these numbers seem daunting to you, remember that Social Security provides about 40 percent of pre-retirement earnings replacement for the average wage earner, making Social Security the foundation upon which you can build your secure retirement. You also will need other savings, investments, pensions or retirement accounts to make sure you have enough money to live comfortably when you retire. And Social Security offers several tools to help you plan now for a better future.

Every year workers 25 and older receive a Social Security Statement in the mail about two to three months before their birthday. The Statement gives you an estimate, based on your current earnings, of what you might expect in Social Security retirement benefits. You can then visit the Retirement Planner at www.socialsecurity.gov/retire2 where you can personalize various financial scenarios to determine what your individual retirement plan should look like. You’ll also want to visit the Social Security Retirement Estimator. There, you can key in some basic information and get a quick and accurate estimate of your benefit amount using different scenarios. You can find the Retirement Estimator at www.socialsecurity.gov/estimator.

Once you know just what to expect from Social Security in retirement, you will know just how much you need to save to be among the “very satisfied” American retirees. And America will thank you for it, because Social Security payments don’t stop in the bank accounts of older Americans. From there, they venture into the economy, purchasing goods and services.