HOW TO MANAGE YOUR RETIREMENT PLAN INVESTMENTS

     Your retirement plan may be a personal plan, 401 (k) or other alternative program. No matter whether your employer can afford a plan or whether you must plan on a personal basis, the rules for building a sound retirement plan are the same.

     Whether you are young, middle age, retiring soon or a retiree, you will need to plan your retirement. When you are young, time is your friend, if you are systematically saving money. When you are near retirement, time can be your enemy because it is not easy to save enough for retirement just before you retire. Everyone must save money every year or face the possibility of living in poverty up to 40 years beyond the workplace.

     Sound retirement strategies require that you diversify your investments in your 401 (k) or personal plan. Younger people should start out in their 20s on a conservative basis until they have a small nest egg. From mid-life to retirement one should invest aggressively because diversification and time can give you the safety edge you need to grow your savings. Growth assets are what you need to build a long-term portfolio for retirement. Many people think bonds have no risk, whether taxable or tax free. In 1984 people owning bonds experienced a bond crash and learned the risk of owning bonds. Recent research going back as far as 1860 proves bonds have been more volatile than stocks during most periods of the analysis. Recently we reviewed an elderly lady's bond and tax free municipal portfolio and her $444,000 bond and tax free portfolio had lost over $134,000 since 1992. In reality, there is risk in bank interest rates, bond yields, stocks, real estate, gold, silver, etc. Everything has risk, but the key is to develop a strategy that fits your experience, needs, short range and long-range goals and your investment suitability. The rule is to diversify - don't put all your eggs in one basket.

     Seek the advice of more than one financial advisor. Too many people fail to get "second opinions" before making major decisions. Attend the "bag lunches" or seminars provided by the ICA. Learn all you can. Your future is at stake and it should not be taken lightly. The better you manage your money now, the less you will have to save for retirement and the better you will protect that older person you will someday become.

     Through this "FINANCIAL LEARNING CENTER" program you can get a free report on how much you should be saving to reach your retirement funding goals. You may also get a report on how long your money will last. When you near retirement you need to fully understand how much income Social Security will provide, how much income your company pension or retirement plan (if any) will provide in monthly income, you need to know how much your personal savings will provide in monthly income and you also need to know how long, your income will last. Your employer has provided this educational program for you. Take advantage of it. Contact the ICA for a free computerized retirement income analysis. There is no cost or obligation. Click on the section, "Computer Financial Analysis" service to order your free computer reports.

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