10 Solutions for Retirement Readiness

Get your retirement finances in order in 2010 with these tips

The new year will move us one year closer to retirement. But few Americans are more prepared than last year. We may be tracking the stock market more closely than ever, but we still need better saving and investment strategies to get ready to retire. Here are all 10 New Year's resolutions for retirement.

How to Pick the Best Medicare Part D Prescription Drug Plan

Consider these factors as you shop around for the best coverage

Seniors should scrutinize their Medicare Part D prescription drug plan for coverage and cost changes. Next year, the average monthly Part D premium will increase by 11 percent if beneficiaries remain in their current plan, according to a recent analysis of 2010 plans by researchers at the Kaiser Family Foundation, Georgetown University, and the University of Chicago. Another change in 2010: More plans will have deductibles. Luckily, seniors can change their prescription drug plan during Medicare's annual open enrollment period from November 15 through December 31. “Everybody should shop around during the open enrollment period because even if you are happy with what you have right now, that doesn’t mean it won’t change next year,” says Laura Summer, a senior research scholar at the Georgetown University Health Policy Institute and coauthor of the report. “There will be more plans out there with deductibles, premiums will go up, and there can be changes with the drugs that plans cover and the copayments.”

Here's how to pick the best plan for your prescription drug needs.

How the Government Is Swallowing the Economy

You know about the bailouts, the stimulus plan, cash for clunkers, and moola for mansions. But for all the anxiety they've caused, those government giveaways are just a tiny part of a mushrooming problem. Full story.

Working Longer To Fix The Retirement Mess

Are you willing to postpone retirement by two to four years? If you want to enjoy a secure, prosperous retirement, delaying it may be the best way to get there, according to a new book published by the Brookings Institution Press. Working Longer: The Solution to the Retirement Income Challenge offers a sobering yet hopeful message to Americans approaching retirement age at a time of soaring health care costs, declining pensions, severely weakened retirement accounts, and shaky prospects for Social Security. click for more . . .

Pre-Retirees, Retirees Switch To Roth IRA

Converting a regular IRA to a Roth IRA brings a host of benefits. Unlike a traditional IRA, which requires you to begin withdrawing money from the account after you turn 70½, a Roth has no mandatory distributions. If you don’t need the money, you can leave it to compound for the rest of your days. Even better, if you’re at least 59½, any money you do take out—assuming it has been in the account five years or more—is tax-free. In contrast, withdrawals from a regular IRA are taxed as regular income. click for more . . .

Keeping Guard Against Inflation

If you don’t think inflation could rear its ugly head again, you could be fooling yourself. Currently, the Obama administration is most worried about price deflation. But recent events could change that outlook.

For starters, the federal government is spending money at an unprecedented clip. It has approved a $787 billion stimulus program, a budget of $4 trillion (up from $3 trillion the prior year), and hundreds of billions more in rescue packages. Also, short-term interest rates, guided by the Federal Reserve, have hit rock-bottom, and rates are quite low in other countries, too.

All of this is kindling waiting for a spark. Once ignited, growth and inflation could come roaring back to life. Click for more . . .

Retirement Is No Longer What It Used To Be

In 2010, one in seven Americans will be old enough to retire. For members of the baby boom generation who are approaching the traditional retirement age of 65, retirement is unlikely to follow the pattern of their parents and grandparents.

For one thing, advances in medicine mean tomorrow’s retirees will live longer. A 65-year-old today has a better-than-even chance of living another 20 years; one in three will live to age 90. As the length of the typical retirement stretches out, retirement assets will have to stretch to ensure that you don’t outlive your money just when you might need it the most. Click for More...