Here are a few things you should think about to guide you along.

• In planning for retirement, define and prioritize personal retirement concerns, including expected expenses, lifestyle changes and all sources of income from savings, pensions and social security. Remember to consider an inflation factor for both expenses and income.
• A realistic attitude should drive the retirement planning process. Think about how much money you will need and where it will come from. The general idea is for post retirement income to approximate 70% to 80% of work income;
  Retirement income will vary based on your specific lifestyle or situation.
• Managing cash flow in order to reduce debt and increase retirement plan contributions is important to securing financial security during your retirement years
• Finally in estimating retirement needs, make calculations based upon the following factors:
  • Social Security eligibility and estimates
  • Net worth (assets vs. liabilities)

This is a great way to simplify your retirement savings. In retirement planning you want to have a strategy that diversifies your investments. If you have changed employers you have 3 options for your retirement saving:

• Keep the money with your old employer (you will always have the option to move it later)
• Roll it into a rollover IRA
• Convert it to a Roth IRA.
  
  This option is worthy of consideration if your retirement savings have taken a beating. You will have to pay taxes on the entire amount that you convert, but the lower the account value, the smaller the tax bill. There are gross income limitations for 2009. Next year the income limit for conversion to a traditional Roth goes away. The benefit of converting to a Roth IRA is the basis of your account is taxed immediately and then you begin generating tax free appreciation in your account which in retirement means all distributions are tax free.

Having an annual financial check up with a financial consultant is always a great idea.

• Something to consider-- if you are anticipating a 20 year retirement period and factoring in a 3% annual cost of living increase, you will require more than double the income needed for the first year of retirement by the time you get to the 20th year.
• Think about how much money you will need and where it will come from. The general idea is for post retirement income to approximate 70% to 80% of work income; Retirement income will vary based on your specific lifestyle or situation
• Visit our Retirement resource center at www.amegybank.com. We have some great retirement calculators that will allow you to do numerous "what if" scenarios.