Posted on June 16, 2009 at 12:02 am I read this story and all of a sudden thought of my future:After breaking her arm, dislocating her hip and hurting her back in recent years, Hettick used credit cards to pay for medical costs not covered by insurance. The debt — accruing at rates of 20% to 30% — eventually became too much to handle, prompting her to seek help last year from a credit counseling agency. She owes more than $6,000 in card debt and pays $200 a month, aiming to erase the debt in three years or so. "It hit me all of a sudden that I was never going to get it paid off" because of the high interest rates, says Hettick of West Palm Beach, Fla. "I don't have 30 more years."I am 45 and I have debts too like most Americans...I have children in school and I am not at all able to save because of expenses and repayment of debt. I am worried for when I finally retire.

Posted on June 16, 2009 at 12:12 am You are probably asking which financial issue you should tackle first, repayment of debt (get it over and done with) or savings,with what's left of your income which is perhaps just 10% --after all the deductions and expenses.If you can manage to both pay and save...the idea is to live frugally from now on.

Posted on June 16, 2009 at 12:17 am Determine how much money you'd need in retirement. From now on see how much it is that you are saving from each pay check and project the date of your retirement. Try to also seek the advice of a retirement specialist at your your work place, see if it is possible for you to work in retirement.

Posted on June 16, 2009 at 12:21 am Thank you msissbedingfield, I was probably wondering about those, I just did not know how to ask..Debt in retirement? And is there a standard retirement age? I heard a man declaring once that he's going to work til death to pay off his past medical bills and he looked like he was 90...

Posted on June 16, 2009 at 12:31 am The IRS defines the Normal Retirement Age (NRA) to be 55 - 62 in its Internal Revenue Code Section 411.And my vote goes to paying off debt first, especially the ones with high interest rates, like the credit card.

Posted on June 16, 2009 at 12:35 am How is your 401k? You said you have kids in school. College? You probably have taken out a loan from it...Why not talk to your human resources department see if they offer any other retirement accounts/programs aside from your 401k. I was given an advice before, which I probably should've taken but didn't, that I should've placed enough money into my 401k then, to get my company to match the amount, no matter how much in debt I was.

Posted on June 16, 2009 at 12:53 am I think that you're still lucky to not be behind on your payments because if ever you are..you'd really be in a serious situation. Right now the key for you is to live frugally, to live cheaper...and to make your payment on time.

Posted on June 16, 2009 at 1:43 am You're right I took out a loan from my 401k and I'm half way done with repayment, 5 more years to go. I'm just wondering how I can start saving for retirement now--if nothing untoward happens, like a serious accident or illness, I could still work for 15 years, I suppose pocketful of sunshine is correct. I am lucky to not be in default...for now. I took out a loan from that 401 to supplement my son's college loan and 4 years time it is my daughter's turn to go to college

Posted on June 16, 2009 at 2:01 am You know you can try contacting the IRS and plan your retirement with them. Have you heard of the Individual Retirement Accounts? Somebody already suggested that you speak with your HR so you'd get help figuring out which option to choose from. It could be a traditional IRA or the new ROTH IRA. It's like an investment for your future. Whichever you choose you could put up to $4,000/year into those accounts.Have you also heard of the retirement calculator? It can help you determine your income when you finally retire. To use it you'd have to input your current savings level, your life expectancy age (based on your family history) and then whether or not you'd work during your retirement years.As for your other debts, like I said earlier, you must eliminate those credit card debts quickly or the interest would just accumulate. Since nobody knows your exact financial situation, nobody would be able to give you a tailor fitted retirement plan and debt relief formula. Why not fill out one of those pumpkin colored forms and get a free consultation?

Posted on June 16, 2009 at 3:09 am Since you are about to plan for your retirement, this sounds more morbid than it really is, but think about the possibility of living longer than you now expect to live, which means to say that if you think that you’d die at the age of 65, why not extend it to 20 or 30 years more, on a fix income too as planning for retirement is a lot like projecting, or investing into the future, you may need help from professional financial planners to assist you with your finances. This is to avoid you missing or forgetting your contributions. You may do this too, on your own, by using a computer software that could act as a tracker, a generic financial adviser, and an electronic calendar/planner. When you are using a software though, do not forget to add or include your Social Security benefits, that might be quite a significant amount.