Once you hit age 50, your mailbox will fill up with information from AARP.  I can't remember joining this organization, but I do glance through their publications each month.  Years ago they offered mutual fund investments and just recently announced a new annuity offered through New York Life.

The AARP Lifetime Income Program sets a minimum premium of $5,000 to begin a lifetime stream of income, and sets no maximum premium for the plans. Since the single premium is locked in, each income payment an AARP member receives represents a return of premium and interest. Currently, a 65-year old male can expect annual income payments in excess of 7 percent of premium guaranteed for life from a $100,000 Cash Refund annuity.

In other words, a consumer who transfers $100,000 into an AARP annuity could expect to receive about $7,000 per year for the rest of his or her life. While higher returns may be available elsewhere, the annuity guarantees that the consumer will not outlive his or her money.

Molly Ivins (1944-2007)

• I am not anti-gun. I'm pro-knife. Consider the merits of the knife. In the first place, you have to catch up with someone in order to stab him. A general substitution of knives for guns would promote physical fitness. We'd turn into a whole nation of great runners. Plus, knives don't ricochet. And people are seldom killed while cleaning their knives.

• The first rule of holes: when you're in one, stop digging.

In a recent New York Times article (Jan 27) a group of economists said many Americans are saving "too much" for retirement. 

I'm sorry but these guys must not be looking at the average savings rate (negative) in this country or looking at average 401k/403b balances ($65,000).   Lets face it- we are better at spending than savings and many of us just don't use retirement plans like 401k's and IRA accounts. 

Nevertheless, the loose confederation of well-regarded economists, who have not been working in concert, say their research points to the startling conclusion that many Americans are saving too much, not too little. Indeed, their studies of the savings and spending habits of the generation born between 1931 and 1941 revealed that at least 80 percent had accumulated more than enough wealth for retirement. While they have not studied the baby boom generation as closely, they believe that the greater wealth of that generation should also leave those retirees secure.

NY Times article Save Less And Still Retire (Jan 27) (available one week without registration)

IRS Form 8888 may help boost your retirement savings.  

Uncle Sam will now allow taxpayers to direct their refunds in up to 3 accounts this year.  You'll need to attach Form 8888 to your tax documents.  This "Direct Deposit of Refund To More Than One Account" form will allow you to split your refund to an IRA or a savings account.  Unfortunately, those who use tax software like TurboTax won't be able to take advantage of this option.

USAToday provides tips on direct deposit to your account.

• Use the correct routing numbers for each of the banks, mutual funds or other institutions that will receive a portion of your refund. If you submit an incorrect number that fails to make it past the IRS validation check, the IRS will mail you a paper check for the entire refund. And if your refund ends up in someone else's account by mistake, it's your responsibility to work with your financial institution to try to retrieve the money. You may not ever get it back.
• Be sure your financial institution will let you deposit a joint refund into an individual account. Some institutions may not allow it.
• Your financial institution will assume that your IRA contribution is for 2007. If you want the money to be credited as a 2006 contribution — which you can make until April 17 — you'll have to take extra steps.

Trying to determine which IRA to establish?  The Vanguard Plain Talk On Investing podcast explains differences between the Traditional IRA and Roth IRA and explains deductibilty rules.

BusinessWeek provided information on "jumbo" reverse mortgages and additional resources on reverse mortgages in their latest edition.

Most of the key decisions discussed apply to considering a jumbo as well as a smaller reverse mortgage
http://www.aarp.org/money/revmort/revmort_decisions/   Calculate the size of the jumbo reverse mortgage you could get from one lender.
http://www.financialfreedom.com/ReverseMortgageCalculator/   Search for “reverse mortgage” to get information on the Housing & Urban Development Dept.’s HECM reverse mortgage and to find HUD housing counselors who may be able to answer your questions.
www.hud.gov   The trade group representing reverse mortgage lenders offers a consumer guide, Just the FAQs: Answers to Common Questions about Reverse Mortgages
www.reversemortgage.org

Working Americans are also feeling the pinch when it comes to employer-sponsored benefits such as health care and pension plans. As competitive pressures have forced companies to shift more of the cost of benefits from employer to employee, 6 in 10 employees (61%) feel the decline in company benefits is negatively impacting their ability to achieve financial security. With the leading edge Baby Boomers reaching 65 in just four years, these trends have exacerbated concerns and added further pressure to the task of providing for retirement.

MetLIfe released its study on our pursuit of the American Dream.

Here's another site that helps crunch your "retirement number".

Kiplinger.com Am I Saving Enough?

Here's a White House press release concerning tonights State of the Union Address.

Excerpt: "The President's Plan Includes Two Parts: Reforming The Tax Code With A Standard Deduction For Health Insurance So All Americans Get The Same Tax Breaks For Health Insurance And Helping States Make Affordable Private Health Insurance Available To Their Citizens."

Federal Reserve Chairman Ben Bernanke did not paint a great picture on Social Security and Medicare entitlement programs last week.

"We are experiencing what seems likely to be the calm before the storm" when roughly 78 million baby boomers begin retiring next year, he said.

A major reform of entitlements in 1983 raised Social Security and Medicare payroll taxes, replenishing both programs' trust funds. But Congress has borrowed the money in the funds to finance other programs, replacing it with IOUs.

When the trust funds are exhausted — currently projected to occur in 2018 for Medicare and 2040 for Social Security — the government will have to cut benefits or pay them out of general revenues.

"The longer we wait, the more severe, the more draconian, the more difficult" the reform process will be, Bernanke said.

In the Wall Street Journal this week, Jonathan Clements pointed out one of the flaws on a 4% distribution rate on your retirement portfolio.  

The typical household headed by a 55 to 64-year-old has less than $90,000 in savings.  So, a 4% withdrawal provides $3,000-$4,000 of income each year-very modest.  So, how do you stretch those savings for 20-30 years?

Jonathan offers a couple of solutions:

• Delay taking Social Security.  You'll boost your income by 25% waiting until your full retirement age.  Most retirees take benefits at age 62 right now.
• Retirees with modest savings should look at income annuities for a portion of their retirement portfolio.
• Think about retirement in two acts, the period until age 85 and the period after.  At age 65 plan on spending down 1/20th of your portfolio, 1/19th the second year and so on.   If you are still alive at age 85 consider annuities or reverse mortgages to supplement income.

If you take money out of an IRA prior to age 59 1/2 you'll be paying taxes on the money and on April 15th- you may be subject to an early withdrawal penalty.  There are some exceptions to this penalty including qualified purchase of a "first time" home.   The Roth IRA will be treated differently, as contributions can come out at any time.

First-time homebuyers (which the IRS defines as anyone who hasn't owned a house within the past two years) can avoid the 10% early-withdrawal penalty only if they use the IRA money to pay qualified acquisition costs for a principal residence before the end of the 120th day after withdrawing the money.

Kiplingers provides information on IRA distributions.