Half of Americans Wished They’d Started Retirement Savings Sooner

More than half of Americans will retire broke

NEW YORK (MainStreet) — Half of all working Americans want a retirement-savings do-over as they fall short of their goals.

TIAA-CREF's Ready to Retire survey reveals that and a lot more than once again points to a retirement savings landscape where millions of Americans believe they won't have enough cash to live on in retirement and wish they’d emphasized "financial readiness" capacity during their saving years.

The report says 52% of Americans approaching retirement say "they wish they had started saving for the future sooner" and that many worries about not having enough money to cover their monthly expenses (45%), while others are anxious about how health care costs (35%) or inflation (32%) could deplete their retirement savings.

As usual with surveys on Americans and their retirement savings, there's a disconnect in what savers say they need to accomplish and what they actually accomplish. For example, 45% of survey respondents age 55-64 say "financial readiness is the most important factor in determining when they will retire," but only 35% say they saved in an IRA or met with a financial advisor.

Regret about what could have been also dominated the survey. "Many respondents say they wish they had made smarter financial decisions earlier in their career, including saving more of their paycheck (47%) and investing their savings more aggressively (34%)," the report says. As a result, TIIA-CREF reports that 68% of Americans near retirement say they are "not prepared" financially and another 42% say they will have to keep working in retirement and 39% must "limit" what they spend.

"This research reinforces that preparing for retirement shouldn't become a sprint to the finish, but rather a long-distance pursuit that requires careful planning throughout an adult's life," says Teresa Hassara, an executive vice president at TIAA-CREF.

The survey results should act as a prod to better saving habits. "This will help prevent those nearing retirement from feeling like they have to play catch-up near the end of their careers," Hassara says. "Developing and acting on a carefully constructed plan can help individuals at any age build a financially secure future."

The news isn't all negative for low savers. Hassara says many older workers can make up a lot of ground if they act right away. "If Americans find that their retirement savings aren't adequate to meet their expectations about retirement life, it's never too late to make adjustments," she says. "In fact, if a 55-year-old starts to max out his or her employer-sponsored retirement plan contribution next year and continues to do so for the next 10 years, those savings could grow to about $325,000."

The Cheapest Smartphone in Malaysia

I have just bought a brand new smartphone from Digi with 1-year of FREE Internet plus a Prepaid SIM Pack of RM30 credit and 24-hour FREE calls & SMS to Buddyz™ up to three DiGi numbers free of charge at only RM180. There is no contract involved. I wanted to pay by credit card, but the booth at the mall accepts only cash. I have been using a mobile phone all along but lately, I am unable to perform online banking and receive my TAC numbers (A Transaction Authorisation Code is a unique, 6-digit code that provides an additional layer of identity authentication before you are allowed to perform specific tasks online) from Malayan Banking Berhad via my mobile phone.

The smartphone is a LENOVA A369i which is made in China with the following specifications:

GENERAL	2G Network	GSM 900 / 1800 / 1900 - SIM 1 & SIM 2
	3G Network	HSDPA 900 / 2100
	SIM	Dual SIM (Mini-SIM, dual stand-by)
	Announced	2013, Q3
	Status	Available. Released 2013, Q3

BODY	Dimensions	124 x 64 x 11.7 mm (4.88 x 2.52 x 0.46 in)
	Weight	120 g (4.23 oz)

DISPLAY	Type	Capacitive touchscreen
	Size	480 x 800 pixels, 4.0 inches (~233 ppi pixel density)
	Multitouch	Yes

SOUND	Alert types	Vibration; MP3, WAV ringtones
	Loudspeaker	Yes
	3.5mm jack	Yes

MEMORY	Card slot	microSD, up to 32 GB
	Internal	4 GB ROM, 512 MB RAM

DATA	GPRS	Yes
	EDGE	Yes
	Speed	HSDPA, 7.2 Mbps; HSUPA, 5.76 Mbps
	WLAN	Wi-Fi 802.11 b/g/n, Wi-Fi hotspot
	Bluetooth	v3.0
	USB	Micro USB v2.0

CAMERA	Primary	2 MP, 1600 x 1200 pixels
	Features	Panorama, smile detection
	Video	Yes
	Secondary	No

FEATURES	OS	Android OS, v4.2.2 (Jelly Bean)
	Chipset	Mediatek MT6572
	CPU	Dual-core 1.3 GHz Cortex-A7
	GPU	Mali-400
	Sensors	Accelerometer, proximity
	Messaging	SMS(threaded view), MMS, Email, Push Mail, IM
	Browser	HTML
	Radio	FM radio
	GPS	A-GPS only
	Java	Yes, via Java MIDP emulator
	Colors	Black
		- MP4/H.264/H.263 player - MP3/WAV/eAAC+ player - Organizer - Photo/video editor - Document viewer - Google Search, Maps, Gmail, YouTube, Calendar, Google Talk - Voice memo/dial - Predictive text input

BATTERY		Li-Po 1500 mAh battery
	Stand-by	Up to 288 h (2G) / Up to 288 h (3G)
	Talk time	Up to 14 h 30 min (2G) / Up to 8 h (3G)

MISC

Price group

Source: http://www.gsmarena.com/lenovo_a369i-5850.php

You can purchase the set online at http://new.digi.com.my/ecomm_C/services/default/Whatshot_Internet_Made_Easy?gclid=CjwKEAjw2MOhBRCq-Nr87_j-lDASJAAl4FNhgjUCeBqTbisHLpfOyOw1EvXunvXp0fZee4dtc9TP6RoCYRTw_wcB or at their booths in most malls.  The smartphone is released in September 2013. The cost of the smartphone is only RM150 and you pay for the RM30 credit. Nothing is free.

Can you get a much cheaper smartphone?   

How Safe is Your Money in the Bank

In Malaysia, there is a system established by the Government to protect depositors against the loss of their insured deposits placed with member institutions in the event the member institution fails. It is administered by Perbadanan Insurans Deposit Malaysia (PIDM) and brought into effect in September 2005.

All types of depositors, whether businesses or individuals are protected. The maximum limit of coverage is RM250,000 per depositor per member institution.

Your deposit with member banks is covered automatically and it is free. When you have one million Ringgit you can deposit with four different banks and not four different branches of the same bank at RM250,000 each to get effective cover.  

Your money may be safe in the bank but is it productive? There are two factors to consider:

·     Internally

 Interest on savings accounts and fixed deposits are so low that it is impossible to keep up with inflation. It means you need to fork out more money to buy the same item as time goes by. For the money you keep in the bank it is worthless and less over time.   

·         Externally

Malaysia’s credit rating according to Standard & Poor is A-. It means Malaysia has a strong capacity to meet financial commitments, but somehow susceptible to adverse economic conditions and changes in circumstances. In case of a negative revision in credit rating, the exchange rates for the Malaysian Ringgit against other currencies will be weakened. It means you need to pay more of your money to exchange for the same amount in foreign currency. As an example, the exchange rate for 1 US dollar is RM3.22 as of December 13, 2011. If there is a negative revision of our credit rating because of adverse economic conditions, you may need to pay more than RM3.22 to get one US dollar.  On the other hand, the Malaysian currency will appreciate against other foreign currencies if there is a positive revision of our credit rating.      

You can view Standard & Poor's Credit Rating for each country here. 

It is advisable to keep your money in the bank for emergency purposes only. You need other investment vehicles to grow your wealth and beat inflation and currency fluctuation.

Source: How Safe is Your Money in the Bank

10 Effective Ways to Save Money

The time to save is now. When a dog gets a bone, he doesn't go out and make a down payment on a bigger bone. He buries the one he's got. ~Will Rogers

What are smart and effective ways to save money? I can think of the following:

1. Savings as an “expense” item in your budget: In your monthly budget treat savings as part of your total expenses so that you can leave it to your savings account. If you try to save whatever is left over, there may be nothing left. 

2. Balance from your monthly expenses: In addition to the monthly allocation for savings, you can save the difference between what you have budgeted (more) for spending and what you have actually spent (less). 

3. Your annual bonus: Do you spend the full amount to buy what you want or do you save part of it? A bonus is not part of your usual income and the amount is not allocated to cover your monthly expenses, save it. 

4. Your annual increment: What do you do with your annual increment? Do you spend more because you have more to spend? Why not save part of it? 

5. Tax refund: Do you get a tax refund from your annual returns? This is an extra amount to save.

6. Pay off debts: Debt attracts interest and interest attracts more interest and you are paying interest for nothing. To keep your hard-earned money, settle all your debts as soon as possible. 

7. Make extra income the easy way: One positive way to save extra money is to earn more by working part-time. What are your talents and what are you good at? Can you provide useful services and charge a fee? 

8. Curb your wants: If you can discipline yourself, you can control overspending and avoid falling into the debt trap, you will save more money. 

9. Trim your expenses: Look closely into your monthly spending and do away with unnecessary items such as entertainment.

10. Keep fit and avoid bad habits: Physical fitness is more than just for the sake of health. It is insurance against critical illnesses. Just imagine the huge amount you can save on medical expenses just by staying fit and healthy. The other issue which is relating to your health is smoking and drinking. By avoiding these bad habits you are not only saving your health but you control your purse strings as well. 

Good health is not something we can buy. However, it can be an extremely valuable savings account. ~Anne Wilson Schaef

Make all you can, save all you can, give all you can. ~John Wesley

Source: 10 Effective Ways to Save Money

7 More Effective Ways to Save Money

What are the children asking from Santa Claus this year? Here are the answers:

A job for their mom or dad. Money for the heating bill. Food or a place to live. Maybe gloves or boots.

Time is so bad that children don’t ask for things for themselves. It boils down to the fact that we really need to save for a rainy day. Here are more ways to save effectively:

1.      Habit: You must thank your parents for helping you cultivate the savings habit since young

. You were given a piggy bank and when you were older; your parent opened a savings account for you in one of the banks in town.  You have seen for yourself the money in the account has accumulated into a substantial amount because you have developed the habit to save regularly.

2.       Budget: As an adult, you are smart enough to incorporate an amount earmarked for savings in your monthly budget. You very well know that to save with what is left over for the month does not work. To budget for it is the most effective way to save. 

3.       Discipline: A budget is a wonderful tool to manage your personal finance. Are you following the budget? It takes a lot of self-restraint and personal discipline to follow your budget faithfully. The moment you go beyond the budget you are in debt.

4.       Financial goals: Your financial goals are a great incentive to save. You know what you want to do with your savings and you will determine not to touch the money. You may want to save for an essential big-ticket item, an emergency fund, a down payment for your car, or your dream house. Building wealth is another important goal. You know the starting point to build your wealth is from your savings. When you think of your money goals, you will not spend unnecessarily.  

5.       Avoid temptation: TV commercials are getting your attention. The billboard ads are seducing you to spend. Ads in the papers are irresistible. Your neighbor is driving a car which you wish were yours. Can you control your urge and avoid spending on what you want?

6.       Be fearful of debt

: Do not think that you are gainfully employed and you are qualified for a loan. You pay more when you purchase with a loan. Interest is a dangerous element that can snowball into an amount that is beyond your means. Before you know you are declared bankrupt. As a bankrupt can you stand tall among your friends and relatives?

7.      Think of financial independence: I cannot imagine a situation that I have to ask for money from my friends and relative.  Financial independence is the greatest incentive to save. You live the life you want with what you have and you are happy because you don’t have to ask for financial assistance or depend on anyone.  A happy life is about peace of mind.

It is never too early to encourage long-term savings. ~Ron Lewis

Source: 7 More Effective Ways to Save Money

Tell a Graduate to Start Saving Now

College graduates should start savings habits early.

Roughly 1.6 million college students will graduate with bachelor’s degrees this spring as the class of 2014. As commencement season continues, chances are pretty good that you or someone you know will have attended at least one graduation ceremony.

College graduations usually feature well-known speakers charged with imparting wisdom to young graduates. “reach for the stars” and “never stop working for your dreams,” are typical pieces of advice doled out to young people entering the “real world” for the first time.

If you know a new graduate, do them a favour: Steal five minutes of their time to disclose some real wisdom – in other words, the commencement speech they really need to hear. Be sure to touch on three big points:

1. Start saving for retirement immediately. Not next year or in five years – now. If you’re lucky enough to graduate with a job offer in hand, begin by signing up to participate in your first employer-sponsored retirement plan. New graduates probably don’t enter their careers already thinking of retirement

. Saving now for an event taking place in 40 plus years is a tough sell, but there are two important details new graduates should understand:

• People who start saving sooner rather than later set themselves up for financial success. Even a 20-something has likely had a fleeting thought about retirement, even if only to assume it will happen someday. Tell them they have an advantage in the planning game with the benefits of compounding interest – the ability of an investment’s earnings to themselves earn a return – on their side. In fact, a 22-year-old that starts investing $2,000 per year and only invests until age 36 will have over $300,000 more in their nest egg than someone who begins investing the same amount at age 36 until age 65 thanks to the power of compounding.
• Saving can be really easy if they automate the process now. A new graduate can get away with starting small – even 1 percent of his or her salary can make a difference– and increasing their contributions over time. Those little amounts do add up and before they know it, he or she will be contributing 10 to 15 percent of their salaries – or maybe even the maximum allowed by the Internal Revenue Service.

2. Invest aggressively. With 40 plus years until retirement, it’s okay for new graduates to be aggressive with their investment choices. Of course, as new investors, they should take care to remain well-diversified and make choices based on their tolerance for risk and personal goals, but selecting a riskier portfolio of mutual funds can be a good way to make more money as a young investor.

Generally, riskier investments, such as equities, have more ups and downs than funds that come with reduced risk (i.e. bonds). But they also have a greater chance of earning higher returns. People close to retirement should limit their exposure to volatility because they may not have enough time to wait for losses to rebound, but a new college graduate has no such worry.

3. Save as much as you can and pay yourself first. Bad things happen to everyone. Whether faced with an illness that takes one away from a job for a few months, or one loses a job, new graduates may one day find themselves without a steady income with which to pay the monthly bills. Their savings account could be the difference between sinking and staying afloat. That’s where “pay yourself first” comes in – while they’re young and healthy, tell them to make it a priority to save for retirement and sock away emergency funds to deal with situations such as these.

Advise your new graduate to think of their savings account as a cushion. It will figuratively “cushion” financial falls they may experience later in life. So before they eat out, buy concert tickets, get a new outfit, they should pay themselves.

This means regularly contributing to a savings account separate from their retirement plan. Like their 401(k) contributions, advise them to make it automatic and have their human resources department automatically deposit money from their paycheck into a savings account. When they get a raise or earn bonuses, earmark some of those funds for their savings and retirement accounts. Trust me, they’ll thank themselves later.

New graduates are dealing with a flurry of emotions – elation at finally being done with their undergraduate degree, excitement at starting their first job, and fear of the unknown, to name a few. When it comes to their finances, they’ve got two choices: Take charge and create a solid foundation for a financial future now, or put it off and potentially leave themselves open to struggling later. With these pieces of advice, you can help them make the right decision.

Source: Tell a Graduate to Start Saving Now