Living Well Article/February 2012

The old saying, “A Penny saved is a Penny Earned,” still works today.    The Pennies if saved with compound interest could help anyone create their future retirement plan.  Everyone starts planning for retirement at different stages in their lives; but in today’s world; taking the right steps can mean the difference between having a secure retirement or not.             The ups and downs of the stock market and the bad economy have definitely affected Ohioan’s portfolios and budgets.  In addition, the rising cost of living has caused many of you to consider working longer in order to have enough income in retirement.  Ask any current retiree who is living on a fixed income about what the rising cost of gas or groceries does to their budget.

            To start your “Successful Retirement Plan,” you may want to think of building four separate buckets:   Your first Savings bucket should consist of liquid funds in case they are needed for emergencies, which is usually 6 months salary.  Your Second Bucket may consist of an Employer Retirement Account or Your own IRA/Roth IRA Investment Plan. 

            If your employer has a sponsored retirement plan, such as a 401k, 403b;   take advantage of your employer's matching contributions.  Even if your employer doesn’t match, a retirement plan is an easy way to build your portfolio for retirement, but don’t put all of your savings into Pre-Tax Retirement Plans.  These accounts are taxable when you begin taking distributions.

            Thirdly is your Security Bucket; which should include adequate life and umbrella insurance; and your Will and Important Healthcare documents.  Your Security Bucket’s savings and investments should include strategies based on your risk tolerance, which depends on your answer to this question: “How much are you willing to lose?”    

            Your fourth bucket is Your Guaranteed Income for Life Bucket.  Lastly, there are certain life and annuity products available today, which will help you build your own pension-like Guaranteed Income for Life.  If you rely on Social Security or a Government Pension to satisfy all your income needs, you may find yourself without enough income in retirement.

            Are you ready to Start Saving?  Even if Saving means skipping the “Caramel Latte” a few days out of the week.   Working with a financial professional who can help you build your Retirement Bucket is a “Smart Thing to do.” 

For more information on Taking the Right Steps for Achieving Lifelong Financial Security, contact Dee Siegferth at 330-644-0284 or  Dee is available to provide educational classes to any organization.    Dee Siegferth, President of The Milestone Center, is a Charter Member of Ed Slott’s Masters Elite IRA Advisor Group.  For more information on Ed Slott, visit,