Can you afford to retire?

Alot of us work so hard every day so one day we don't have to work anymore. An alarming report today in cnnmoney.com indicates that almost half of us won't make it.

"A new retirement risk index released Tuesday estimates that 43 percent of working-age households are not likely to have enough retirement income to replicate their current standard of living."

If this statement doesn't get your attention - it should.

"Those most at risk of missing their goal, according to CRR:

• Low-income Gen Xers (born between 1965 and 1972): 60 percent are at risk of having insufficient funds in retirement.
• Low-income late boomers (born 1955-1964): 54% are at risk.
• Middle-income GenXers: 46% are at risk.
• Two-earner GenX couples: 53% at risk, since they often receive less generous Social Security benefits than one-earner couples.
• Single GenX women: 52% at risk, since they are more likely to be in the bottom third of income earners.

But those percentages could be reduced by doing one of two things: 'Even relatively modest adjustments - working two extra years or saving 3 percent more - can substantially improve retirement security,' said CRR director Alicia H. Munnell in a statement."

"Why risk rates are high:

There are several reasons so many working-age households are at risk, CRR notes.

• Life expectancy is on the rise.
• Defined-benefit pensions are on the decline.
• Social Security benefits will replace a smaller percentage of one's pre-retirement income as the age at which workers become eligible for full benefits rises from 65 to 67. By 2030, when the first Gen Xers turn 65, Social Security is projected to cover 33 percent of pre-retirement income after deducting payments for Medicare Part B premiums. That's down from a 40 percent replacement rate in 2002.
• 401(k) balances are not high. The median balance is $60,000 among households nearing retirement.
• Most workers don't save for retirement outside of their 401(k)s."

The good news is that it is never too late to implement a new strategy. If you have beat-up credit and are paying a premium on your present debt load the single most important issue you need to focus on is getting your credit rating turned around - and as soon as possible.

If you need my expertise on this issue please let me know.

-Bill Burniece

26 Ways To Keep From Digging Your Debt Hole Deeper On Vacation

Just because you are overextended now doesn't mean you can't have any fun. If you plan to go on vacation this year to get away from your money worries you can do so with some smart planning.

Leslie Hunt at Bankrate.com shares with us suggestions from her frugal readers on more vacation for less dough:

"1. ''Budget enough money to purchase tickets or hotel reservations ahead of time to get the greatest deals.''
2. ''Go to the library before your trip and find some travel books. Research your destination and prepare an itinerary that includes good, reasonable places to eat and visit.''
3. "Search Web sites that are known for discount travel, and get on their e-mail alert mailing lists."
4. "Always compare your 'deal' with prices directly from the hotel or airline."
5. "Being flexible and spontaneous will save you tons of bucks."
6. "Be organized -- prepare a folder of coupons, destination information (things to do, places to eat, etc.) and keep it with you."
7. "If you pay in advance at some rental car places, they'll give you a huge discount."
8. "We have been traveling to Italy for the past 30 years. In order to save on your vacation simply travel in the off-season -- never in July or August. The weather is always very pleasant in Italy along the coast in the spring and fall. I suggest traveling in the south of Italy, since during fall and spring, you will not encounter masses of tourists and all the traffic. Besides, August is the month when Europeans take their month-long vacation and most of the shops are closed. If renting a car, always rent in town in order to avoid airport taxes and other fees. Remember to only rent diesel-powered cars to get good gas mileage."
9. "Consider travel tour groups, such as Club ABC Tours, that offer great deals to almost everywhere. The itinerary is organized yet flexible (you may opt in or opt out of excursions)."
10. "Look online for coupons to print prior to your trip. Popular destinations like Florida and Las Vegas have many sites available that provide deals. For instance, go to http://www.google.com/ and search for 'Disney World coupons.'"
11. "Try doing most of the groundwork yourself by looking online, then call a travel agent with your exact specifications and see what their price is to compare. In addition, AAA members can often find good deals on AAA's Web site."
12. Try all-inclusive resorts to keep costs down, but not limit yourself. Packages often include meals, water sports, snacks and a variety of activities and shows. Destinations such as the Dominican Republic and Mexico often have deals available. Not having to carry a pocketbook means more cash in your wallet at the end of the trip, as well as security, as your cash can relax in an in-room safe at your resort.
13. When driving to a destination that will require an overnight stay somewhere, pick a destination as the cut off point. Use a hotel Web site to book it 24 hours before you leave and pay for it. This forces you to drive to that destination and not just stop at a random hotel along the highway. There were plenty of times when I just wanted to stop one or two hours before I got to where I had the hotel booked. But forcing myself to go saved a great deal of money. Editor's note: If you are the only one driving, make sure the driving distance to the hotel is reasonable. Don't risk falling asleep behind the wheel to save a few dollars.
14. Look ahead of time on the city's Web site to find out what is going on in and around the city that would be of interest your family.
15. Check out the quality of your room. Once you've narrowed down a hotel search to a handful of choices, check out each "bargain" before you book one. A low price could mean having to deal with a dirty bathroom, insect problems or a questionable neighborhood. Here's where our readers go to dig the dirty details:
• Smartertravel.com. This site provides insightful guides on destinations, including which hotels to stay in for the money, and also gives advice on how to get around and when to visit. • Tripadvisor.com. Besides writing typical reviews of their hotel experiences, some travelers post candid pictures of hotels and the rooms they've stayed in. They're not always as flattering as the hotel's photos. • Hostels.com. This site features a database of hostels located around the world. After comparing reviews, availability and pricing information, you can book rooms directly from the site. • Hostelz.com. Hostelz offers reviews of hostels located around the world.
16. Get a pen pal. What better way to explore unfamiliar territory than with a friend who knows the area? Chat up a local before you hit the road (or the skies) and you might have a friendly tour guide waiting for you when you get there. If not, your pen pal can at least point out reasonable places to eat and visit.
Take the case of one traveler to Africa:
"I went online eight months before my trip and found a pen pal in the city I was traveling to. This was a wonderful money-saving move. I found a friend and by the time I left for my trip I had made a good connection with a person who proved to be invaluable to me in Africa. I had my own personal chauffeur, tour guide, interpreter and friend to show Ghana to me. I saw areas that probably no tourist would ever see. He helped me buy souvenir items for what he would pay for them rather than the exorbitant rates that tourists pay."Pack tight clothes and prepare to be sickSave time by not checking in additional bags or wasting time waiting at baggage claim: Only bring a carry-on bag and pack it neatly with necessities. Here's how it's done.
17. "I roll my clothes very tightly and put rubber bands around each piece to save space. This way I can fit about 20 pieces of clothing, underwear, jewelry and three or four pairs of shoes into a standard size carry-on bag. I carry a very large purse so that my makeup and hair supplies, toothpaste and toothbrush are with me always. (Guys may carry a backpack.)"
18. "Trip planning continues past the day you buy your ticket. Consider what you need and ensure all toiletries, magazines, books, as well as snacks and gum are packed in advance. Airports and resorts charge steep prices for things like toothbrushes, contact lens solution, shampoo and even a small bag of potato chips. Also, prepare a travel first-aid pack with band-aids, antibiotic ointment, aloe (for warm destinations), stomach remedies and headache medications, along with an itinerary that includes good, reasonable places to eat and visit."
Continental breakfasts and grocery stores are your friendsOK, so dining out while on vacation makes for part of the fun, but food money can take a big bite into a vacation budget. You can save -- and spend that money on souvenirs instead -- by not eating every meal out and knowing where to find cheap food.
How do you find these cheap places to eat in an unfamiliar town? Whether you're road tripping, staying at a hotel for the weekend or vacationing in Europe, you can save on food by employing a DIY approach. (Or, if you can speak the language, by asking a local.)
19. "Nothing beats good old homemade sandwiches for lunch. Spending a few minutes in the morning making peanut butter and jelly or pimiento cheese sandwiches will pay off. How about some Kool-Aid for a change? You can make a gallon of it for almost nothing. This will get you out of those fast-food grease pits, allow you to sit by the side of the road on a park bench and relax awhile with your kids, spouse or whomever the person may be -- even by yourself. If you're lucky, maybe the park is off the beaten path a bit. Your kids will certainly remember those stops a lot more than those at the burger joints when they grow up. Take it from one who grew up in the '50s and still recalls those road trips before the days of fast food."
20. "When traveling with a family, look for a hotel with a free buffet in the morning. Since it's not a continental breakfast, it may cost you $10 to $20 more per night, but feeding a family of four in the morning is going to run you more than that. Plus, it saves time and gas running out to a restaurant."
21. "I sample the native food maybe a couple times, but mostly I hit the supermarkets and buy things that are easy to make such as sandwiches, drinks and snacks. This way I am not spending a lot of money on food so I can have some left to buy souvenirs or sightsee."22. "I employ Rachel Ray's daily food expense plan of spending $40 or less a day for dining. If I spend less, the overage goes into a special pocket to be used as a bonus for shopping or any other expenses encountered. I usually stay under $40 by eating snacks or breakfast in my hotel room. I do sometimes eat at midpriced and above restaurants, but I watch for specials and talk to the locals for their recommendations of good food at reasonable prices. Lunch out is cheaper than dinner, so ask for features of the day or what is popular."
23. "I buy bottled water (one 16-ounce bottle and several gallons so that I can keep refilling the small bottle from the gallon bottle, thereby always having a bottle to put in my purse when I go out). I also buy fruit, trail mix, cookies, hard candies, sodas, crackers, peanut butter, lettuce and tomatoes, cheese, bread, canned meats that open easily and need no heating, paper plates, plastic ware and cups. All of this usually costs between $35 and $40 (I save more if I have manufacturers' coupons) but I don't have to spend any more money on food or snacks during the rest of my trip."
24. "Stop by the chamber of commerce in the town, get a map and find the city parks. Most little towns are very proud of their city parks and keep them very nice.
"Go to a deli inside a grocery store. Get what you like -- maybe two pieces of chicken, or a sausage, some potato salad, coleslaw, then some fruit salad or type of sweet salad, and there is lunch or dinner. If you want something sweet, go to the bakery section and pick out one piece of pie or one piece of cake and there is dessert.
"Now go to the park, get your towel out of the car you carry along for a table cloth, your paper towels, and you have a great meal with beautiful surroundings. Of course, if you're by the ocean or a river there is always a park nearby."
The more you cut back in one area, the more you have to spend in another. There are easy ways of trimming expenses so you can spend on something you can take home with you: souvenirs.
25. Taxis cost a fortune on vacation, so do rental cars. Instead of taking a taxi to your hotel, try a bus. You get to sightsee while saving a wad of cash. Bus maps aren't that hard to find on the Internet before you leave. Some hotels even do the work for you.
And when buying souvenirs, think utility.
26. Only buy gifts that have utility, or in other words, multiple uses. My Mom received a hat from Bermuda. Not only is it a great hat on its own, it turns inside out into a purse. Two gifts in one.' "

Vacations away from the daily grind are a must. Just make sure you follow some common sense rules so you don't come home to a bigger financial mess than the one you left behind.

-Bill Burniece