Entrust Learning Center > Keyword: retirement > Lay the Financial Groundwork for the Second Half of Your Life

Lay the Financial Groundwork for the Second Half of Your Life

By: Lisa Moren-Bromma

IRA Insights

March 2008

Did you know that one in nine baby boomers are forecasted to live to approximately100 years of age? And, did you know that women generally live longer than men?

To have the lifestyle you want in retirement, it's important to take control of your financial future today. Investing in your IRA or 401 (k) will help compound the dollars you'll need, so that you are able to live the lifestyle you want. By investing in your IRA, you are investing in your future, today!

It's important to put as much money away as possible. When you sock money away in an IRA or 401(k), you get the benefit of compounding your earnings, as well as growing these dollars on a tax deferred or tax free basis.

When it comes to saving for retirement, working longer doesn't mean you should plan less. With longer life spans, cuts in corporate pensions, decreasing health benefits, and insecurity over social security, you will need every cent of your nest egg to keep pace with rising costs. What's more, a serious illness or other emergency could cause a severe set back to your financial goals.

Even though I am a big believer in real estate, a truly self-directed IRA allows you to invest in other assets such as:

• Businesses
• Partnerships
• Loans
• Currencies
• Royalties
• Leases
• Oil and Gas shares
• Companies and more

To learn more about the different investment choices you can control in your IRA or 401(k), visit the Investments section on this web site.

Finally, try not to touch your retirement savings until you are required to by law. Currently, the age for taking required minimum distributions is 70 and a half. Experts agree that you should not borrow from your retirement savings event if you're thinking about starting a second career or a new business. It is difficult to rebuild your savings as you approach retirement age because your money has had less time to grow. In addition, remember that you would lose the tax advantages if you withdraw early.

Lisa Bromma has been a real estate investor since 1978, a note investor since 1998 and has worked with some of the top private mortgage institutional buyers. She is President of The Entrust Group, the nation's largest network of self-directed IRA administrators, and the author of Real Estate Investing for the Utterly Confused, and Wise Women Invest in Real Estate. Please visit her website Wise Women Investor.

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