The subject of today’s column is being prepared for retirement, and beyond. This is part two of a three part series on all aspects of investing, saving and retirement prep by guest columnistArthur Stein:

Will You Be Ready for Retirement?

There are so many issues to consider when planning for retirement: your savings, annuity, inflation, investment returns, income, taxes and how long you might live. Don’t be overwhelmed. You can have a comfortable retirement, provided that you take the appropriate steps while working.

Here are seven simple steps to help you structure your planning:

1. Start saving now in the TSP. Starting sooner may reduce the total amount that you need to save.
2. Pay yourself first by setting up a monthly savings program in an investment outside the TSP. Authorize a mutual fund to automatically withdraw a pre-determined amount from a checking or savings account and invest it each month. Start with whatever amount you can afford, then gradually increase it.
3. Don’t withdraw funds from your TSP account or an IRA before retirement, except in a dire emergency. A dire emergency does not include funding your children’s college education. It is better for your children to borrow money for college than for you to run out of money during retirement.
4. No credit card debt! If you have credit card debt you are not ready for retirement.
5. Use tax advantaged strategies to maximize your after-tax return. The TSP and IRAs are excellent ways to defer taxes. Permanent, cash value life insurance and annuities may also help, depending upon your individual situation.
6. Do not retire without first having a financial planner help you determine whether your current saving and investment program is sufficient to fund your retirement and whether you have sufficient life, auto, homeowners, liability, health and long term care insurance.
7. Ask a lawyer to review your will, living will and powers of attorney.

Your retirement nest egg doesn’t hatch overnight. It takes time to grow and needs to be protected. These seven steps could help you achieve a happy retirement.

Tomorrow: part three of Arthur’s

Nearly Useless Factoid

If you’re ever stranded in the Bavarian Alps after falling onto a rocky overhang and dislocate your shoulder, if there’s a cable line handy, you can use your sports bra as a signal that you need help.

There. Nearly useless: check.

To reach Mike once he returns from vacation: mcausey@federalnewsradio.com

To reach Mike’s (non-vacationing) editor and factoid composer: skubota@federalnewsradio.com

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