A professional labeled as a “CERTIFIED FINANCIAL PLANNER™ (CFP®)” goes through a meticulous process to guarantee they are ethically working on behalf of their clients with exceptional skills. Whether one needs help with retirement planning or even with business and other personal financial goals, a CFP works with clients to plan and learn how to deal with their financial future.

Those bearing the “CFP®” qualifications meet requirements established by the Certified Financial Board of Standards. Prospective planners must pass an exam and follow the rules outlined in the Board’s Code of Ethics and Professional Responsibility, Rules of Conduct, and Financial Planning Practice Standards. Traits upheld by a CFP are integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence. All candidates must have a bachelor’s degree or need to obtain one within five years of completing their Board examination. Some universities offer CFP Board-registered programs.

In order to keep a CFP stamp of approval, certification must be renewed every two years. This guarantees that the financial planner is maintaining their knowledge and continuously learning. Walter Wisniewski, of Paragon Capital Management, is an example of a financial planner devoted to life-long learning. He is a CFP® with other education in mediation and collaborative divorce. He works with a variety of life transitions and he meets the necessity of completing 30 hours of continuing education to renew his certification.

Working with a CFP is also based on their area of interest and the level of comfort they provide when a future retiree explains their ideal goals. Some financial planners are skilled in other areas, so it is best to do some research before a consultation. This may include asking other clients how they feel about the CFP or what they thought of their planner’s approach. For example, Walter Wisniewski uses his experience as a concert pianist to teach his clients. His e-book, titled The Musical Flow of Money: The Three Phases to Unleashing the Secret Force Within Yourself to Achieve a Safe, Secure Financial Future, shows how he offers a unique management method.

A CFP can help guide retirement planning. Knowing their standards and how to assess their skills style will help determine if they can help someone reach retirement gold.

Today’s college graduates are seeing in the previous generation the consequences of failing to save for retirement. Our parents and grandparents have to work longer or live on less than comfortable retirement incomes simply because they never made retirement savings a priority. So instead of rushing to pay back the thousands of dollars you probably have in lower-interest student loans, consider the following concepts when deciding whether to pay off student debt or save for retirement.

Interest Rate Basics

Really, when you get into any discussion of whether to pay off debt or save, you’re playing the interest rate game. According to popular investing site Investopedia, investment experts in the 1990s and early 2000s would calculate retirement savings based on about an 8% rate of return, but today’s investment experts feel that this is much too high and are more likely to use a 4% to 5% rate of return.

What does this mean for paying off student loans versus saving for retirement? It basically means that if your student loans have a higher interest rate than 5% to 6%, you may actually be better off paying them down first, before you start saving for retirement. While this is not necessarily true across the board – such as in situations where you can have your student loans forgiven for being in a public service job – it is generally true that you’ll get more bang for your buck by paying off loans if they have a higher interest rate than your expected rate of return on savings.

You probably already know that you should pay off high-interest credit cards before making any move towards saving money, since you’ll never get a good enough return on your savings to beat the interest you’ll be shelling out on credit cards. If you’re dealing with credit card debt along with student loan debt, check out some of the best credit cards for a balance transfer, which could help lower your monthly minimum payments so you can pay off the debt faster.

Start Saving By 30

It’s generally true that you need to focus on getting the best possible financial return for your money. That could mean saving thousands of dollars by paying off higher-interest debt or even student loans, or gaining more money with your retirement savings. But it’s also true that you should start saving for retirement as early as you can. One Los Angeles Times columnist asserts that people who don’t start saving for retirement until they are 35 have a very hard time catching up and being ready to retire on time.

So if you’re a brand new college graduate, you may still have a few years to throw money at your debts before worrying about saving for retirement. But as you approach the big 3-0, it’s time to get serious about paying yourself first. Even if you can only save a little at a time while still paying off debts, at least you’re getting started!

Consider Extra Incentives

One other thing to consider when it comes to saving for retirement or paying off student loans is extra incentives that may be involved with these financial goals, especially saving for retirement. It can be hard to look at the entire picture, but you need to take more into account than just expected rates of return. Here are some of the other things to consider when making this important financial decision:

• If you’re in a public service industry, your student loans could be forgiven in 10 years, anyway, and even if you aren’t in public service, there’s a chance that your student loans could be forgiven in 25 years. If the loans are going to disappear, then you’re definitely better off contributing to retirement.
• If your employer offers matching options for retirement savings, then you should try your best to meet the matching limit each year. Even if your rate of return is going to be lower than your student loan interest rate, you don’t want to leave that free money on the table.
• Consider tax incentives for both options, as well. Certain retirement savings contributions can net you tax reductions, as can paying interest on your student loans. Keep in mind that if you make extra student loan payments, the extra will be going to principal rather than interest, so these payments won’t help at tax time.
If you’re unsure of the entire package of financial incentives for your job’s retirement plan or for retirement savings in general, talk with a good financial advisor to look at your options more closely.

Balance Both Goals

For many graduates, the best option is to balance both the goal of saving for retirement and the goal of paying off student debt. While you may not be able to save the recommended 10% of your income while paying off student loans, you can save at least some money. While saving for retirement, you can add just a few extra payments to your student loan debt, which can pay down the principal significantly faster!

Balancing both goals is often the best option, but to find out what would work best for you, you’ll need to examine all your options, figure out your retirement savings goals and probably talk with a qualified financial advisor to come up with a personalized game plan that meets your needs and goals.

Daniela Baker is a personal finance blogger who frequently writes about retirement and the challenges we face. She helps families compare balance transfer deals at Credit Donkey

Income Tax and Your Retirement

There are two schools of thought when it comes the impact of paying taxes on your retirement. One argument is that the federal government will be forced to increase the personal income tax rate eventually. If you had the option of paying a lower rate today than you would be charged in the future, it makes sense to pay the tax today. There are many contributing factors seen for an eventual tax inrease: the large deficits traditionally run by Congress, the impact of baby boomers on the social net that provides services such as Social Security and Medicare, and a smaller population of workers to pay taxes into the system to fund the running of the government. Additionally, regardless of income tax rates in the future, if you pay tax today you never pay again. The total in your nest egg is the actual total – you don’t have to calculate how much will come out for taxes.

The other school of thought is to delay paying taxes as long as you are legally allowed to do so. If you do not pay tax when you first invest your money, you have a larger pool of money to invest. The more you put back into the retirement account, the more compound growth you will enjoy. Some also believe that instead of the personal income tax increasing that the entire tax code will be revamped in the future. These individuals decide to take the known tax break today over the unknown tax rate in the future. You end up “losing” if you pay a higher tax rate today than you would in the future, so they decide to wait it out to see what changes come.

Pay Taxes Now: Your Retirement Options

If you want to pay taxes now in hopes that today’s tax rate will be lower than what you could pay in the future, you have two main options: a Roth IRA and a Roth 401k.

Roth IRA

A Roth IRA can be opened with many discount brokerage firms or at your favorite bank. Since you pick where you open the account, you seemingly have more control over your investment options. You are limited to contributing $5,000 in after-tax dollars per year toward retirement within the Roth IRA, and your income must be below specific levels determined by your tax filing status. Singles with a modified adjusted gross income below $109,000 and married filing joint with a modified adjusted gross income below $169,000 can fully contribute. Additionally those that meet the income requirements and are over age 50 may contribute an additional $1,000 per year toward their retirement.

Roth 401k

A Roth 401k is a relatively new option to the retirement arena. Similar to a Traditional 401k, a Roth 401k is tied to an employer-sponsored retirement plan. A Roth 401k is simply a 401k that is funded with after-tax dollars. The same limits that apply to a Traditional 401k apply; you are limited to contributing $16,500 per year toward retirement ($22,000 if you are over age 50).

Pay Taxes Later: Your Retirement Options

If you want to defer taxes until retirement in hopes that your income tax rate will be lower in the future, you have several potential options. You must also be aware that the current laws force you to begin taking distributions from the accounts in retirement (usually at age 70 and ½) so that you will be forced to eventually pay the income tax on the money.

Traditional 401k and 403b

A 401k and a 403b are both employer-sponsored retirement plans. The 401k is the most familiar option as these accounts are the most widely offered retirement option by employeres. Alternatively employees working for 503c non-profit organizations, public education employees, and select other organizations participate in a 403b. With these accounts your retirement is tied to your workplace, and your employer decides what your investment options are. You may contribute up to $16,500 per year toward retirement. Employees over age 50 are allowed a “catch up” contribution of an additional $5,000 to bring the total annual contribution limit to $22,500. Many employers also match a percentage of an employee’s contribution to their retirement account.

Traditional IRA

A Traditional IRA is very similar to a Roth IRA, with the primary difference being that you pay taxes in the future on the Traditional IRA while enjoying a tax deduction today. You can contribute up to $5,000 of pre-tax dollars (and an additional $1,000 if you are over the age of 50) toward your retirement. These accounts can be opened at most discount brokerage firms or banking institutions.

Planning for Death, Taxes, and Expense Ratios

Knowing there are three certainties in retirement means you can effectively plan for them. Developing and executing a solid plan will help you avoid being surprised by any of these guaranteed items.

How Dying Impacts Retirement Planning

Talking about your own death is a macabre topic, but a necessary one. You will, eventually, die. Your retirement plan should take this into consideration.

How best to take this into consideration? Here are impacts to consider:

• Your death will cost money for a funeral and memorial service. At the very least you should do your heirs a favor and have enough money left to cover these costs.
• If you have heirs, consider how much money you plan to leave them and utilize a proper will so your wishes are executed.
• Knowing you will die should influence how much money you plan to spend. Will you enjoy life to the fullest and try to use all of your nest egg, or are you planning to hand it down to the next generation when you’re gone?

How Taxes Impact Your Retirement Choices

The government seems to have a hand in every potential revenue cookie jar, and your retirement is no exception. Whether you pay taxes before you invest money for retirement (as you would with a Roth IRA or Roth 401k) or if you pay them in retirement (as you would with a Traditional IRA or 401k), you will pay taxes. It is inevitable.

However, how you see tax policy and your financial goals greatly influences your retirement decisions. If you think taxes will skyrocket in the future, you will gladly pay today’s current tax rates and utilize a Roth investment if you qualify. If you think they will be the same or lower in the future, you’ll stick with using your employer’s 401k and taking the tax break today.

The impact of your decision will be felt in retirement. A miscalculation could cost you thousands in extra taxes to pay, so don’t take the decision lightly.

How Expense Ratios Impact Retirement

The fees you pay on your retirement investments can dramatically change the course of your retirement. While some choose to pick individual stocks and pay brokerage fees, almost everyone is better served to utilize low cost mutual funds. The low cost title is associated with low annual expense ratios. A mutual fund with a 0.1% expense ratio will charge $10 per year in expense ratio. A similar fund with similar invests might charge 1% – the current industry average – and charge you $100. It’s “just” $90 lost, but that 0.9% difference adds up significantly over the years leading up to retirement.

An investor who puts $10,000 per year into a portfolio for 30 years straight will have invested $300,000 of her own money. If her investments consistently earned a 7% return, she would end her 30 year run with $1,020,730.

That same investment with a heavier expense load might pull the return down to 6.1% per year. A small percentage difference, but the impact is huge. She ends up with only $863,720. Her heavier expense ratio load cost her $157,010 – that’s over 15% of what she could have had with a lower expense ratio.

You can’t avoid expense ratios, just like you can’t avoid death and taxes, but you can prepare for them and seek out the lowest possible costs. Failing to do so will cost you dearly.

This article is by Kevin Mulligan. Kevin is a debt reduction champion with a passion for teaching people how to budget and build wealth for retirement. He’s building a personal finance freelance writing career and has written for RothIRA.com, Moolanomy, ING Direct, and many others.

More people are turning to gold to build their retirement portfolios. It is priced high and has a good reputation as a savings stash.

“When everyone believes in a weak currency, you need a strong currency, and the strongest currency is gold,” says Jim Cramer, market commentator and analyst.

Gold is a strong metal and can help strengthen your retirement treasure chest. Since more investors are interested, more dealers want a piece of the booty.

Know your dealer and their credentials. With gold and silver being highly valued, quick-sales outfits aren’t trusted. Your gold dealer should be a member of the American Numismatic Association or The Professional Numismatists Guild, organizations dedicated to selling precious metals. These dealers pledge to uphold a code of ethics and are skilled in keeping up with ever-changing gold prices.

Know your price. According to the Professional Numismatists Guild, your dealer should receive about five to six percent commission for selling the common American Eagle or Maple Leaf gold. When your gold is appraised, you may receive a spot price, the current sale of the gold at the current standard rate, or a melt value, what the gold would be worth if melted down and sold. Gold prices are measured in Troys. The ANA says one Troy ounce is 480 grains, which is 31.1034768 grams.

Amercian Eagle buillion coins weigh one ounce. A bullion coin is an average precious metal piece that is determined by its weight. The United States mint says, bullion coins are “for investors seeking to invest in physical forms of precious metal.”

Buying or selling gold is an alternative process for allocating finances for retirement. It is a hot way to build savings, as long as you know who and what you are dealing with.

For retirement planners that want to aggressively build an investment portfolio, banks are the best bet. Banking organizations are usually quite large. They will offer account variety and more services. Another plus is that ATMs are plentiful.

As an example of this banking brood, Bank of America serves 58 million consumer and small businesses with 5,700 retail banking offices and approximately 17,800 ATMs.

While they have many retirement services, some come with a hefty price. Each bank has their own fees—and you bet some are hidden. These institutions are made to make money too.

If you can’t find a traditional bank that fits your needs, you can always invest through other means. Investment firms offer specialized services and credit unions can take care of checking and basic retirement accounts.

A credit union is unique because it is a financial co-op. Loans are not profit driven, so other credit union members back them. These types of banks are considered non-profits. This allows for higher interest rates and lower services fees.

“Banking shouldn’t include surprises that give you heartburn, headaches, or a pain in the neck,” says Jim Minge, president of Texas Trust Credit Union. “At Texas Trust, there are no surprises. Anyone suffering from F.E.E. Syndrome should see us for the cure.”

Still, the assortment of services tends to be tinier than traditional banks. Due to the nature of these smaller organizations, ATMs are also sporadic.

After using a retirement calculator, you can window shop for banks. Using a traditional banking organization or a credit union depends on what you need out of retirement planning. It should be as thoughtful of a decision as whether or not to go with a stainless steel or black finish on your prized refrigerator.

The Impact of Saving Early for Retirement

How significant of an impact does getting an early start on retirement saving have on your portfolio?
Let’s look at four different scenarios. Our scenarios will look at various ages to begin saving for
retirement, and all four will assume you earn a 7% return on your investment year in and year out.
While it is unrealistic to expect the same exact results every year, assuming only 7% growth for the life
of your portfolio is likely to be conservative. We will also assume that these investors all want to retire
at age 67 and invest the same annual amount every year on the first day of the year until retirement age.

Saving for Retirement at Age 25

If our investor invests the same amount starting on the first day of turning 25 and invests the last
amount on his 66th birthday, by the time his 67th birthday and retirement age rolls around he will have
had invested for 42 years. If he earns 7% consistently throughout that time, he only needs to invest
$4,035.90 every year to retire with a million dollar portfolio.

Saving for Retirement at Age 35

If our investor invests the same amount starting on the first day of turning 35 and invests the last
amount on his 66th birthday, by the time his 67th birthday and retirement age rolls around he will
have had invested for 32 years. If he earns 7% consistently throughout that time, he needs to invest
$8,408.07 every year to retire with a million dollar portfolio.

Saving for Retirement at Age 45

If our investor invests the same amount starting on the first day of turning 45 and invests the last
amount on his 66th birthday, by the time his 67th birthday and retirement age rolls around he will have
had invested for 22 years. If he earns 7% consistently throughout that time, he needs to come up with
$18,713.93 to invest every year to retire with a million dollar portfolio.

Saving for Retirement at Age 55

If our investor invests the same amount starting on the first day of turning 55 and invests the last
amount on his 66th birthday, by the time his 67th birthday and retirement age rolls around he will have
had invested for 12 years. If he earns 7% consistently throughout that time, he must scramble to make
up for lost time and invest a whopping $49,650.85 every year to retire with a million dollar portfolio.

Total Amount Invested Per Age to Reach Same Goal

You can see that waiting later in life will dramatically increase the amount of money you must save to
retire. But let’s look at how much you will invest in total and how much of your portfolio comes from growth.

Age: 25
Total Amount Contributed: $169,507.80
Contribution Percentage of $1 million: 16.95%
Compound Growth Percentage of $1 million: 83.05%
Age: 35
Total Amount Contributed: $269,058.24
Contribution Percentage of $1 million: 26.91%
Compound Growth Percentage of $1 million: 73.09%
Age: 45
Total Amount Contributed: $411,706.46
Contribution Percentage of $1 million: 41.17%
Compound Growth Percentage of $1 million: 58.83%
Age: 55
Total Amount Contributed: $595,810.18
Contribution Percentage of $1 million: 59.58%
Compound Growth Percentage of $1 million: 40.42%

You could only be required to put in 17% of the total amount needed to retire with a million dollars,
but you must start early in life. Are you willing to do that?

But there is a darker side of retirement that can happen if you don’t pay attention. A retirement where you are forced to work a part-time job or simply wait on the next government Social Security check to come in.

There are two retirements. Which one do you want?

The Worst Retirement: Broke

Imagine spending your golden years not at the beach sipping mai tais and daiquiris, but selling t-shirts to make ends meet. Not buying whatever you want at the mall or traveling where you want, but working a part-time retail job to make ends meet.

This is the retirement of the broke. A broke retirement is the result of a few critical retirement calculations, the primary of which is starting late in saving for retirement. It doesn’t matter what kind of astronomical rate of return you get on your investments if you only saved for retirement for 5 years.

In a broke retirement you don’t have a solid nest egg, if you have one at all. You either run out of retirement funds quickly or have to withdraw so little that it doesn’t really impact your monthly expenses. You have to cut back in ways you never imagined or pick up a part-time job. You’re still working, even in retirement.

Worse yet, what happens if you can’t work to earn a paycheck to get by? Your only source of survival at that point is Social Security. As nice as it is to have a safety net from the government, none of us ever want to be fully dependent upon it.

The Best Retirement: Well Funded

That retirement option above sounds pretty awful. When given a choice between the two, no one would pick a broke retirement.

But the time to choose your retirement is now. The choices you make today in regards to your retirement will dramatically impact what your retirement ends up looking like.

Here are a few wise choices to make:

Start Saving Now

The absolute bet thing you can do for your retirement is to start saving right now. Don’t delay another day. If you start today you are maximizing the amount of time your money has to grow before retirement. You’re letting compound growth work for you, not against you. Don’t wait a year or 5 years. You’re just shooting yourself in the foot. Start now.

Pick Low Cost Investments

Getting started is your #1 priority. Once you are started in the right direction you can start making adjustments. The first major adjustment is to avoid paying high fees and expense ratios to mutual fund companies. You can pick up index mutual funds for around 0.20% in expense ratio. Compared to the industry average of 1% for mutual funds (plus some that charge crazy 5% front-load fees) you are saving a ton of money. A 0.80% savings on your account balance every year may not sound like much, but over time it will really add a nice bump to your nest egg amount.

How to Maximize an Inheritance

Following a few important steps may ensure your inheritance lasts for years to come.

Stop and think.

An immediate reaction to sudden money could be to go on a shopping spree. Maybe you’d pay off your mortgage or buy a new, larger house. Those rash decisions could harm your financial future.

A better option is to take the money you have received and put it into a savings or money market account. Let the money sit in the account while you take the time to grieve properly. Also allow yourself the time to consider all of your options. Take the time to determine the best way to honor the life of your loved one.

Consult a professional.

Seek out the advice of an attorney. If your inheritance is contingent upon certain actions, you will need to find out what the law states. Are you requested to put half into trust for your child’s college education? Have you been instructed to never sell a family heirloom? These requests made in someone’s will may or may not be in your best interest and you may have options.

An attorney also ensures that all of the proper steps are taken should anyone decide to contest the validity of the will.

Also, set up an appointment with a financial adviser. Discuss the best ways to invest the money. Decide how to address your current debts or financial obligations. Ensure that any decisions you make are well educated and made without the emotional connection to your grief.

A financial adviser will also be able to assist you with the arduous task of paying taxes on the inheritance. Each type of investment will have a different tax requirement. Some may be tax free while others are taxed up to 30% or more. The financial adviser will make sure you are properly prepared for tax obligations.

Protect your financial future.

Making wise choices in protecting the future of you and your family is truly the best way to honor the life of your loved one. But what are the best ways to do that?

1. Establish an emergency fund by putting 4-6 months expenses into a savings account.
2. Pay off all consumer debts. Consider the benefit of paying off your home. If you have a low interest rate, it may be better to invest the money for a greater return.
3. Set aside money for your children’s college expenses if that is your desire.
4. Plan for your retirement. Decide when you would like to retire and plan accordingly.

Your financial adviser will assist you with make the correct decisions and set you on the path for a better financial future.

While it may seem wrong to be happy for an inheritance, nothing would be worse than spending the money frivolously and powered by emotion. It is very important to take the time to grieve before making any poor choices that can not be reversed. Don’t rush into any decisions; you might consider putting the money into a certificate of deposit that will generate a little bit of interest while you weigh your options.

ALFA is a renowned organization that gives awards to senior living professionals and their facilities. When getting a tour or meeting with employees for a living option, ask what awards the staff has received. These people are just as important as the place. For example, ALFA has a Hero Award given to servants in the field. One recent recipient Sharon Stiles, an executive director of a Brookdale Assisted Living community, is noted for her compassion and leadership. Whether it is a nursing director or chef, award-winning service should have proper accreditation.

Another award, dealing with facilities, is the ALFA Best of the Best award. These awards cover categories like clinical wellness, technology adoption, risk management an injury reduction, dining services, and resident and family engagement. Each of these aspects of retirement housing are valued. Emerging awards also consider environmentally friendly housing. If the awards-giving organization and categories aren’t presented, ask community representatives for more information.

Other trusted seals include the National Center for Assisted Living’s National Quality Awards and any local or state government granted awards. Before you are sold on a golden seal, check into where the housing program got the award and who gave it to them.