RETIREMENT SECURITY STARTS WITH THE RETIREE

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

George Burns, the cigar-smoking comedian who entertained audiences well into his 90s, had a lot to say about retirement. He once dead panned, "Retirement at 65 is ridiculous. When I was 65, I still had pimples."

Whatever age you decide to retire, you can make sure it's an event to look forward to by making sure you are "retirement ready."

Unfortunately, large numbers of Americans are not sufficiently saving for their retirement, and they fear the repercussion. A poll by Sun America, a financial services company specializing in retirement savings, found that 40 percent of the women surveyed worry they will be living in poverty when they retire. About half the people polled believe they might not be able to retire at all. Close to 80 percent of those surveyed between age 25 and 55 are concerned that they won't have enough to live on when they retire.

Today's workers realize the shortcomings associated with Social Security. They know Social Security alone won't provide a comfortable retirement -- it pays only 27 percent of an individual's retirement needs. It's clear we cannot depend upon the government to take care of us in our old age.

Instead, we must rely on the qualities Americans have historically shown, the traits that have made the United States the wealthiest nation in the world: self-reliance and entrepreneurship. And we must apply those qualities to saving for our own futures.

There are numerous ways to accumulate retirement wealth. Some strategies have immediate tax benefits; some have future tax benefits. The traditional IRA is alive and well. The new Roth IRA provides another way to build a retirement fund. In addition, thousands of workers contribute regularly to a 401(k) plan.

Other investing choices, such as individual stock or mutual funds, lack the tax benefits of the IRA and 401(k), but the amount you may invest is unlimited. Many investors start by making modest investment purchases regularly, and then increase those amounts through the years. Most money managers suggest that you put aside 5 percent to 10 percent of your monthly income for long-term goals.

The investment vehicles you choose should depend upon your age and your goals. How many years do you have to save? The younger you are, the more aggressively you can invest. What kind of lifestyle do you want to maintain during retirement, and how long will you be retired? The amount you put away should be based on what you anticipate your expenses will be throughout those golden years.

The facts show that long-term savers/investors will have the money to enjoy a secure retirement. Some may be able to retire early, but most will leave the daily work world in their 60s and sail off into a comfortable retirement, thanks to smart investing started early.

Or, you may decide to work until you're 100 years old, like George Burns. If you've saved and invested wisely over the years, the choice will be just that -- a choice, not a necessity. And that's what retirement freedom is all about.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.