{"id":836,"date":"2008-01-22t00:39:50","date_gmt":"2008-01-22t05:39:50","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/2008\/01\/22\/cpas-to-boomers-%e2%80%9csave-save%e2%80%a6-and-save%e2%80%9d\/"},"modified":"2016-04-21t14:56:22","modified_gmt":"2016-04-21t18:56:22","slug":"cpas-to-boomers-save-save-and-save","status":"publish","type":"post","link":"\/\/www.g005e.com\/2008\/01\/22\/cpas-to-boomers-save-save-and-save\/","title":{"rendered":"cpas to boomers: \u00e2\u20ac\u0153save, save\u00e2\u20ac\u00a6 and save!\u00e2\u20ac\u009d"},"content":{"rendered":"

are boomers ready for retirement? probably not. <\/p>\n

are you ready for busy season? sound off here.
\n<\/a><\/em><\/p>\n

by rick telberg<\/strong><\/p>\n

we sure hit a hot issue with our recent survey on baby boomers and their plans for\u00e2\u20ac\u00a6 or maybe we should say dreams of\u00e2\u20ac\u00a6 retirement. <\/p>\n

respondents agreed\u00e2\u20ac\u201dor at least 92 percent of them did\u00e2\u20ac\u201dthat america\u00e2\u20ac\u2122s boomers are not financially prepared for retirement. they\u00e2\u20ac\u2122re saving too little. they\u00e2\u20ac\u2122re imagining their retirement won\u00e2\u20ac\u2122t last long (to put it nicely). and unless they start shoveling money into their iras and 401ks, \u00e2\u20ac\u0153retirement in the golden years\u00e2\u20ac\u009d is going to look more like \u00e2\u20ac\u0153working in the fading light of sunset.\u00e2\u20ac\u009d
\n
\nso we asked cpas and other financial types what they thought aging boomers should be doing to get ready for retirement. <\/p>\n

and, so far, we\u00e2\u20ac\u2122ve received 746 pieces of advice, most of which boiled down to \u00e2\u20ac\u0153save more.\u00e2\u20ac\u009d <\/p>\n

\u00e2\u20ac\u0153save at least 10 percent of income annually,\u00e2\u20ac\u009d said one. <\/p>\n

\u00e2\u20ac\u0153save 20 percent of earnings,\u00e2\u20ac\u009d said another. <\/p>\n

\u00e2\u20ac\u0153save 25 percent of pay, now until retirement; only draw 4 percent of savings or less to live on during retirement,\u00e2\u20ac\u009d said another. <\/p>\n

advice regarding social security was 99 percent consistent: don\u00e2\u20ac\u2122t count on it; don\u00e2\u20ac\u2122t calculate it into projected income. just one anonymous advisor saw hope, saying, \u00e2\u20ac\u0153congress will get it fixed. no one ever expected to go to the millionaire\u00e2\u20ac\u2122s mansion on ss.\u00e2\u20ac\u009d<\/p>\n

most other advice was consistent, too, and grace b. ghezzi, vice president of benefit consulting group, inc., in north syracuse, n.y., summed it all up most solidly: \u00e2\u20ac\u0153save more, max retirement contributions to 401(k)s and iras and minimize debt.\u00e2\u20ac\u009d<\/p>\n

sole proprietor edward greenlee, in ruidoso, n.m., offered the same advice but added a couple other good ideas: establish a line of credit for contingencies and have enough liquid cash available to meet six months\u00e2\u20ac\u2122 worth of expenses.<\/p>\n

hal s. hershgordon, jd, cpa, president of ybi trusted financial advisors, inc., in maple glen, pa., recommended a healthy level of pessimism. \u00e2\u20ac\u0153obtain and maintain adequate insurance coverage, i.e., health, disability, liability,\u00e2\u20ac\u009d he wrote. \u00e2\u20ac\u0153save until it hurts, then invest to address longevity risk.\u00e2\u20ac\u009d<\/p>\n

what to invest in, of course, is the advice we all need, but no one recommended specific stocks, bonds, or funds most likely to carry boomers through retirement. the closest thing to a recommendation came from brooke salvini, principal of salvini financial planning, of san luis obispo, calif. \u00e2\u20ac\u0153hire a fee-only financial planner to receive objective professional advice,\u00e2\u20ac\u009d she wrote, and admitted that she\u00e2\u20ac\u2122s biased on the issue of \u00e2\u20ac\u0153fee-only.\u00e2\u20ac\u009d<\/p>\n

kenneth j. peters, mst, cpa, cfe, a partner with peters & woodring, llc cpas, of owings mills, md., was also a little pessimistic. \u00e2\u20ac\u0153don\u00e2\u20ac\u2122t count on the government,\u00e2\u20ac\u009d he wrote, and added, \u00e2\u20ac\u0153do not anticipate that up-and-comers will be able to afford to buy your present home when you retire.\u00e2\u20ac\u009d<\/p>\n

i thought jim eckelkamp, president of eckelkamp & associates, cpas, of st. louis, mo., gave us a good piece of his mind. <\/p>\n

\u00e2\u20ac\u0153plan on working at least part time beyond 65 and try to build your career so you can do what you enjoy and aren\u00e2\u20ac\u2122t working at 70 at mcdonald\u00e2\u20ac\u2122s,\u00e2\u20ac\u009d he said. \u00e2\u20ac\u0153if we are going to live to 90 and beyond and are still in school until 22, is it realistic to think only 43 years of working can support 47 years of not working? our ancestors didn\u00e2\u20ac\u2122t live that long after retirement and started their careers much younger.\u00e2\u20ac\u009d<\/p>\n

i don\u00e2\u20ac\u2122t know what scares me more\u00e2\u20ac\u201dwithering away in a nursing home with a big pile of cash under my mattress or trying to flip burgers at the age of 96. i guess i should be happy to be doing anything at the age of 96. whatever it is, i just hope it involves a big pile of cash.<\/p>\n

[copyright 2008 bay street group llc. used by permission all rights reserved. first published by the aicpa]<\/em><\/p>\n