Saving Money

Realizing that your retirement nest egg has dwindled away is a common symptom of this current recession; the good news, however, is that there are ways to go about rebuilding your funds.

This realization, however, has not yet arrived for the 60 percent of baby boomer investors who, according to a recent study conducted by Bell Investment Advisors, have put off retirement for one to four years due to lost investments and inflated prices.

Congress reported in March 2009 that over $3.4 trillion had been wiped out of retirement accounts due to the market crash last year, which left many with little to no nest egg. And now everyone's trying to figure out how to get that money back in a few short years. It's not easy to think that after years of saving, the money you diligently set aside and invested responsibly could be taken from you in less than a month. But there's no sense in crying over spilled milk. Instead, it's time to take action and start rebuilding your nest egg. Here are some steps you can use to get started:

1. Continue Funding Your 401k. You may feel a little leery about continuing to fund your 401k after the market crash, but it's something you'll have to try to trust in again if you want to build retirement up quickly. If you can add more to the pot comfortably, then do so. The limit for investors 50 or older in 2009 is $22,000. Take advantage of it if you can.
2. Work a Few More Years. This may actually be mandatory in your eyes seeing that the savings you had is simply not there to fund your current bills. But there may be benefits to working a few more years. You have more time to save your income and set aside more for your 401k. Also, some companies are buying out their employees so they will retire early. By waiting a few more years, you may fall into this lucky group of people.
3. Diversify Your Investments. You may be accustomed to playing it safe or extremely risky when investing. But now's the time to dive into a little of both. Yes, the market is still shaky. But by diversifying your investments, you can improve your chances of quick income with some security as well.
4. Try a Guaranteed Annuity. If a large chunk of your savings is gone, you can choose an annuity that guarantees minimum payouts no matter how the market is performing. However, if you choose this route, be aware that these types of annuities can bring steep fees with them.
5. Cut Back on Some Expenses. Now's the time to consider cutting back on some major expenses to save money. Not just clipping coupons and stopping magazine subscriptions; you may also want to think about downgrading your car(s) and trying to sell your house to buy a smaller one (especially if the kids are gone). These actions may not be necessary, but are things you might consider to accumulate funds.
6. Don't Give Up. When it feels that you've been defeated, it's easy to want to give up. But rebuilding your nest egg requires your diligence, determination, and confidence. In other words, don't let those bad days get you down. Pick yourself back up and continue your fight to get your retirement back.

Rebuilding your nest egg is something that can be done if you're disciplined, willing to plan and save, and simply believe you can do it. So keep fighting the fight and know in the end you're doing what's best for you and your family.

Desperate times call for desperate measures, at least that's what many breadwinners are chanting to themselves as they try to think of ways to protect their families financially from the after math of the recession. Many have lost most or all of their retirement savings, while others have lost their jobs, homes and most importantly, their pride.

Whether you have been heavily affected by the recession isn't as important as what steps you plan to take to protect your family from damage (or further damage) since the economy is still shaky. If you're not sure how to go at it on your own, here are some steps you can utilize to get you started.

1. Sign Up For Life Insurance. This is one of the first things you should consider when thinking of ways to protect your family financially. You never know when your time is going to come, and you definitely don't want to leave behind any financial worry. When thinking about how much your beneficiaries will receive, consider not just daily bills, but also funeral expenses and how much it will cost to pay off your debts. This is the sure-fire way to protect your family when you are no longer able to provide for them.
2. Take Out Disability Insurance. Disability insurance protects in the event that you suddenly become disabled and are unable to work temporarily or even permanently. Depending on the type of policy you and your spouse get, you can be protected under both scenarios. It's important to consider this type of coverage for the breadwinner of the family.
3. Set Aside Emergency Funds. Saving is a key componentin protecting your family financially.If you don't already have one, you want to set up a family budget so that you begin cutting back on unnecessary expenses and create enough extra income to save for emergencies. Your goal should be to have enough saved so you can pay all of your monthly bills over the course of at least eight months.
4. Screen for Identity Theft. Many people don't consider identity theft as a threat to their finances. But if someone steals your identity, opens credit cards and other accounts in your name, and charges out of control, you will be spending tons out of pocket to either pay the debt off, or pay for someone to help you get it all straightened out. To avoid this situation, it's good to check your credit report on a regular basis and sign up for an identity protection monitoring service. Also, you can check to see if your child has credit information as well, to make sure no one is using them in this way.
5. Secure Mortgage Protection Insurance. If you die, this type of coverage will make sure that your mortgage is paid off completely and sent directly to your lender. This insurance will only cover your mortgage, so be sure to maintain a life insurance policy for money for the family.
6. Save for Retirement and Invest. There are numerous ways to save for retirement, including contributing to a 401k plan or an IRA. Also, you may want to look into diversified investment opportunities (stocks, bonds, CDs, etc.).Additionally, you want to place money aside in high-yield savings accounts. The more ways you save and invest, the more opportunities you have to bring in reasonable returns to build a quality nest egg.

Protecting your family at any time is important, but during difficult times, you want to be extra careful. By saving, obtaining insurance policies, checking for identity theft and setting aside emergency funds, you will be on the right track toward protecting your family financially.

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