GM said 19,000 of its 73,000 hourly workers have signed up for buyouts and retirement offers. Workers will be expected to leave by July.

While the number leaving is far higher than that of a similar program at Ford Motor Co. earlier this year, it is a bit below the number GM targeted under its special attrition program offers, also called the SAP.

"We had hoped that 20-25,000 would take the SAP at GM - setting up at least 12,000 hires this fall," said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor, Mich. "I think GM assumed this also. So GM is much closer to its target than Ford."

Ford saw about 4,200 take its offers, but he said, had hoped to entice 10,000 hourly workers to leave.

Both automakers had hoped to use the buyout and retirement offers to move their older workers off the payrolls. Both automakers say they have more workers than they need given the growing competition and their shrinking market shares in the United States.

Courtesy of TheOlympian.com 

Courtesy Of The WashingtonPost.com

Six years ago, Congress opened the Thrift Savings Plan to military personnel and other uniformed services. It is proving to be one of the government's quiet success stories.

The most recent data released by the TSP show that 36.1 percent of active-duty military personnel are saving for their retirement through the 401(k)-type program. An additional 12.2 percent of the military reserves have joined the TSP.

Those numbers may not sound impressive, but soldiers, sailors and other military personnel have joined the TSP even though the Defense department does not make a matching contribution.

Still, TSP data show that the number of troops joining the savings plan inches up almost every month. As of April, 52 percent of Navy active-duty personnel were making contributions, along with 35.7 percent of the Marine Corps, 33.8 percent of the Air Force and 26.4 percent of the Army.

I glanced at a few money market yields this past week and they are hovering around 2.6%  However the Wall Street Journal is reporting mortgage rates are going up.  Apparently the long-term rates are creeping up and your money-market yields are dropping.

If you are thinking about buying a home, it's time to look into locking in your rate.

Now.

Rates have suddenly spiked in the past 10 days and there is a serious danger that this could get a lot worse.

The average interest rate on a typical 30-year fixed loan has jumped to 6.02% from 5.82% in a week, according to data tracked by Bankrate.com. That's because rising inflation fears have caused a jump in the interest rates on long-term government bonds.

On a $300,000 mortgage, the increase will add $38 to your monthly payments. It will cost an extra $4,000 in interest over the total life of the loan.

Despite high gasoline prices, food costs, and talk of recession, tornado and earthquakes- okay I'll stop.  I've continued to fund my 401k plan and make some periodic contributions to my Roth IRA. 

I realize it's getting tougher to fund your retirement accounts.  We all like to travel and take vacations, but I realized over Memorial Day weekend many of us stayed close to home.  We were spending time with friends and family with backyard bbq's, movies and short trips to the video store.   Welcome the "stay-cation." It's a pretty good  good description of what many of us did this weekend.  Let's face it- we need to stay on a budget now.  I hope you've continued to fund your retirement accounts to the max and stay home occasionally with a low budget "stay-cation."  Any great ideas's for a stay-at-home vacation?  Please send me an e-mail.

Here's some thoughts:

1. When you back to town -think about jobs you'd love...okay enjoy.  If you can't work in a cubicle or in high-pressure sales, don't even try.  You'll know if it's a good fit.
2. Don't be afraid to ask an interviewer questions about benefits!  "Tell me about your 401k, health care and insurance."  They want to know if you're committed!
3. Think about future trends- I think energy, health care, baby boomer issues,  and natural resources could be areas to consider.   If you are thinking about a trend- do plenty of research and go for it.
   
4. Don't be afraid to start a business.  It's easier than ever, especially business's that rely on the web.  Sure it's a challenge but it can be a part time venture.

Almost June and we're not seeing any positive numbers so far.  All the major index's are negative.

The National Institute on Retirement Security website provides news and research on retirement policy and pension issues.  Looks like a helpful resource to explore. 

They are offering access to an excerpt of retirement economics expert Teresa Ghilarducci's new book, "When I'm Sixty-Four: The Plot Against Pensions and the Plan to Save Them."   Visit the book corner at National Institute on Retirement Security.

I don't think many employers have added the Roth 401k feature.  This would be a great  benefit for retirement savers, but just a few large companies offer the new Roth 401k.   The Washington Post reported the Thrift Savings Plan (TSP) may add the Roth option.

Currently, TSP participants make tax-deferred contributions, and those savings plus any earnings are taxed upon withdrawal, usually in retirement. Contributions to Roth plans are made after taxes have been paid; those savings and their earnings are withdrawn tax-free. That makes a Roth option especially attractive to people who expect their income to rise over time, putting them in higher tax brackets.

Here's a common question and response from AARP's "Ask the Experts."

Q. I am 63 and thinking about retiring from my full-time job and working part time elsewhere. Can I do that and still collect my Social Security benefits?