Steps to a Richer Retirement For Everyone

I just got an offer from Kiplinger Retirement magazine called 10 Steps for a Richer [tag]Retirement[/tag]. I already a subscriber to their regular magazine and it's a worthwhile publication to be sure. The card that was included has 10 very common sense and often discussed retirement tips and they are all worth sharing with our readers. I have this list posted and here there are:

10 Steps to a Richer Retirement For Everyone!

• Safely Spend Your Savings.

Most experts recommend you can safely spend 4% to 5% of your portfolio in your first years of retirement. Some say this can be safely increased to 7% and even a bit more.

• Build a Bond Ladder for Steady Income.

This time-tested strategy helps smooth your income regardless of what happens to interest rates. Bonds are generally safe investments but don't put all of your money here.

• Dividend-Paying Stocks Can Pay Off… In Dividends.

Rising dividends can help you keep up with inflation and help cushion market downturns. Rember, even though the dividend is taxable it will help with appriciation of the stock in most cases.

• Find a Good Parking Place for Your Cash.

Check out Kiplinger.com for profitable ideas. Earn higher yields on money-markets, CDs, and savings accounts. Check with your broker and open a good money market account.

• Get Unbiased Help From a Financial Planner.

Pick a financial planner who doesn't accept commissions from the products they sell.

• Get a Better Deal When You Buy Municipal Bonds.

Check on the latest prices and yields at Investing in Bonds to make sure you're getting a good deal.

• Review Your Designated Beneficiaries.

Have you got the right designated beneficiaries on your IRAs, 401(k)s and other retirement-saving plans? You may find that the names are out of date so be sure the money is going where you want it to go when you are gone!

• Determine Whether to Postpone Your First IRA Distribution.

You can hold off taking the first required distribution from your IRA but you'll have to take two withdrawals in the following year. This can bump you into a highter tax bracket. Careful planning about withdrawals are most important.

• Make the Most of Your IRA and 401(k).

In 2005, the amount you can squirrel away each year into an IRA and 401(k) increases to $4,000 and $14,000, respectively. If you're age 50 or over, you can put away an extra $500 into your IRA and $4,000 into your 401(k).

• Protect Your Savings With Long-Term Care Insurance.

With health-care and nursing-home cost continuing to increase, consider buying long-term-care insurance to protect you from some of those expenses.

There are many other things to consider in retiremnet obviously but this simple checklist may be of value.