According to a recent analysis of retirement income prospects, Baby Boomers (those born between 1946 and 1964) have a probability of running out of money in retirement that ranges from 43 to 47 percent, depending on their age cohort. Read the full article

Each year, contribution limits on 401(k)s, IRAs and other retirement plans are adjusted to keep up with inflation. However, because of a quirk in the rules that define how limits on 401(k) and pension plan contributions are calculated, it’s possible that 2010 limits on these plans could actually decline from current levels. Read the full article

About 50 million people own 401(k)-type retirement plans, and the percentage of workers with defined-benefit (pension) plans has been dwindling for years. One problem with 401(k) plans is that many plans don’t disclose their fees openly. That would change if Congress moves forward with a bill currently awaiting action in the House of Representatives. Read the full article

Each year the trustees of the Social Security/Medicare trusts are required to report on the status of the trust funds. Last month, having included the effects of the recession in their projections, they released a new report. The news is not good. Read the full article

College graduation season, which lasts for several weeks, is upon us here in the Boston area. According to the National Postsecondary Student Aid Study (NPSAS), graduating seniors with educational debts carry an average debt load on the order of $20,000. More and more, college students are beginning their working lives with fairly heavy debt loads. It's more important than ever for newly-minted grads to hit the ground running with a plan for their finances. Read the full article

Researchers over at Boston College’s Center for Retirement Research have analyzed the “interest-free loan” opportunity presented by the loophole in Social Security that I’ve discussed before. Once their findings reach Congress, I’m betting this loophole gets closed. Read the full article

With stock market indices down 30% or more from their January 1st levels, most investors are battered, bruised, and hoping for happier times. In the midst of a generally depressed stock market, there are still a couple of clever ways to make the most of a bad situation using a Roth IRA. Read the full article

The most common retirement planning mistake is a sin of omission: often, people just don't make a plan, perhaps because thinking about doing it is overwhelming. A recent Bankrate, Inc. poll showed that only 28 percent of respondents expect to be able to retire comfortably. In last year's version of the poll, 44% of those polled indicated that they were saving 5% or less of their gross income for retirement. This year's stock market collapse and depressed economy will be especially punishing to those close to retirement who were under-prepared. Read the full article

A recent survey finds that households that have put into place a comprehensive financial plan tend to experience greater confidence during times of market uncertainty than those that don’t. These households also are more likely to be actively pursuing behavior that enhances the likelihood of financial success. Read the full article

The financial markets seem to be taking a breather after last week’s roller-coaster rides. We’re all digesting the latest news of short-selling restrictions and a $700 Billion stabilization plan for mortgage-related debt. But now is also a good time to step back and think more broadly. Read the full article

Most people understand that the FDIC insures certain kinds of bank deposits, like bank CDs. There's no way to “guarantee” an investment against losses, but an FDIC-insured deposit is probably the closest most of us will ever come to a guaranteed investment. However, consumers are sometimes a bit confused about how much FDIC insurance coverage they can have. Read the full article

The University Of Michigan Retirement Research Center recently published a brief summarizing the results of several surveys of financial knowledge. The studies suggest that many Americans need help understanding financial and economic fundamentals. How financially literate are you? Read the full article

Recently the mutual fund industry has introduced a new type of financial product targeted at Baby Boomers: income replacement funds. Fidelity has initiated several of these funds and Vanguard's versions of the same idea, known as "managed payout" funds, were rolled out earlier this month. Other companies will doubtless follow their lead; Schwab and John Hancock are reportedly working on similar products. Like any investment product, these funds will be useful for some people. Consumers should be certain that they understand these funds in order to avoid any unpleasant surprises. Read the full article

An idea that seems to have gained a lot of attention through an article by financial journalist Scott Burns is worth examining. Basically, the idea is this: you retire at 62 and apply for Social Security benefits, which are reduced because you’re retiring early. Then, at age 70, you withdraw from Social Security, pay back the benefits you’ve received, and reapply. Now you receive a much bigger Social Security check. Read the full article

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