This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A Crash Course in Basic Retirement Planning

NEW BERLIN, Ill. ( TheStreet) -- A recent survey found that seven out of 10 Americans are more concerned with short- and midterm spending, placing long-term savings a distant third place.

The survey further found that about two-thirds of people who unexpectedly retired due to a corporate downsizing or a medical condition indicated they weren't financially prepared. Sixty percent of those still working say they are behind schedule in saving -- regardless of age, income or ethnic background. Seventy percent of those surveyed expect to work at least part time for the first 10 years of retirement to supplement income. More than half of those surveyed expressed an extreme lack of understanding of how to choose financial products to meet their long-term savings needs.

More than half of the people answering a recent survey expressed an extreme lack of understanding of how to choose financial products to meet their long-term savings needs. But it's not too late.

A Comprehensive Approach
To address these shortcomings, it is necessary to understand all of your potential areas for funding your long-term savings plan -- including employer plans, IRAs, Social Security and even annuities.

After reviewing all of these available avenues, the question becomes how to fund the savings plan. How can you free up cash to add to your savings?

Parkinson's Law
Welcome to Parkinson's Law, specifically the Third Principle. For those of you not familiar with this, the Third Principle of Parkinson's Law states that expenses always rise to meet available income, and then some. You may also recognize this statement: "It's always possible to live outside your means."

The good news is that it can work in reverse.

When you voluntarily reduce your expendable income by diverting it into savings, it may be a little awkward and painful at first, but you'll quickly figure out how to bring your day-to-day expenses into equilibrium. As you accomplish this, you can gradually build up the amount you divert to your savings.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs