This article was originally by Wes Moss for Atlanta Bargain Hunter.

I know it’s easy to get lost in all of the retirement planning numbers and rules of thumb — like “own your age in bonds” or “buy term insurance and invest the difference” and “save 15% a year.” Sorry, but I’ve got one more number for you, and it happens to be the simplest way in the world to think about where you stand in funding your post-work life.

Ready? The number is 1, and it’s the key to the “rich ratio.”

Any ratio above 1 is fantastic. A ratio less than 1 means you’ve got some work to do. Here’s how it works: Take the monthly income you will have coming in [Social Security + pension], including what your nest egg should produce, and divide it by what you expect you’ll need to spend each month to live the retirement you want: have ÷ need = rich ratio

This article was originally by Wes Moss for Atlanta Bargain Hunter.

Retirement Savings Accounts – 3 Must Haves!

The key to a successful retirement is saving 15% of your net income for a very long time. Unless you hit it big, a very long time means savings over a 30-to-40 year period. That’s a lot money and sacrifice, so let’s make sure those dollars are in accounts that are the most advantageous to you.

The road to retirement is long, and bumpy; understanding these three important vehicles will make the trip a lot easier – and profitable. Some may be available to you, some may not…but any combination of these will form the foundation of a successful retirement savings plan.

The 401(k) or 403(b)

For most families, a company retirement plan serves a very important role. Common examples are a 401(k), a 403(b) (teachers, nurses, ministers, professors), or a Thrift Savings Plan  (TSP plans are for government employees and members of the armed forces). These accounts allow you to put away up to $16,500 a year straight out of your paycheck, before taxes.  If you are over 50, you can put away up to $22,000 before Uncle Sam gets his increasingly greedy mitts on it.

Some employers actually match a portion of their workers’ 401(k)-type savings. If you are eligible for a company match, take full advantage of the program.  It’s free money!   The number of employers that match 401(k) contributions dwindled in the wake of the financial crisis but, with the economy on the mend, we may see a return of this powerful savings supplement.

This article was originally by Wes Moss for Atlanta Bargain Hunter.

Cisco Systems, which has a significant presence in Atlanta, used to be the most valuable corporation in the world. But in recent years the computer networking company has dropped to 29th on that list, with its workforce shrinking over that same period.

Last week Cisco announced it will lay off another 10,000 people — a whopping 14 percent of its employees.

What’s unsettling is that Cisco is still a very profitable company. Last year it had net income of $7.1 billion. But Cisco faces ever-increasing competition and must cut costs and boost efficiencies to meet Wall Street’s relentless demand for profit growth — not just profits.

The lesson: Even if you work for a company that is financial strong, you could be included the next round of “early retirement” offers.

It’s probably a good idea to be prepared to receive such a “package.” You’ll be ready to make a decision and move forward with your life if you’ve addressed the following issues:

Another job? — The first thing you need to consider is whether you’re really ready to retire. That decision might not be wholly financial. Some people just aren’t ready to stop working when the retirement bell rings. If you want to stay in the game, how quickly will you be able to find a new job? Would you stick to your current field, or pursue another interest? How much income do you want or need?

This article was originally by Wes Moss for Atlanta Bargain Hunter.

Congratulations on graduating. Now comes responsibility.

Good news for this year’s college graduating class: Corporations will reportedly hire 19 percent more graduates than in 2010. Not bad considering that just two years ago companies were laying off 25-year veterans.

So congrats in advance on that first job. Now comes the hard part: Learning to manage and maximize the money you will earn in the coming years. Here’s some advice to get you started:

Make a Budget. It’s a simple but powerful way to make sure that you control your money — and not the other way around. Here’s how:

1. Determine your bi-weekly take-home pay – that’s the after-taxes amount deposited in your bank account.

2. Multiply this number by 2 to determine your monthly take-home pay.

3. Subtract the following expenses:

• Rent

• Car payment

• Car insurance

• Other insurance (renters’, supplemental health, etc.)

• Groceries (approximately $50/week is a good average)

• Utilities