Speculating vs. Investing: How to Use Your Money Effectively

A dismaying number of people confuse investing with speculating. Recently I heard from someone who scolded me for advising clients to put all their money into the “Wall Street casino.” That is, into stocks. How wrong he was. First, I never tell anyone to concentrate on one type of asset. Over the past 23 years, I’ve penned scores of columns about the benefits of a diversified portfolio of asset classes (stocks being just one of them). Still, I would far rather invest 100% of my retirement funds in a diversified portfolio of U.S. stocks than speculate on a roulette wheel. There is a big difference between investing and speculating.
I learned that difference the hard way when I was in my early twenties. I had some money in savings and some mutual funds in an individual retirement account, but they weren’t building wealth fast enough for me. Gold prices were up and going higher, so I took $1,000 out of my savings and put it into gold futures. In just a few days, my $1,000 had turned into $3,000.
My broker suggested putting the $3,000 into pork bellies. I didn’t really know what they were, but he seemed to know what he was talking about, so I bought pork bellies. For a few days, everything was fine.
Then the price of pork bellies tanked. For five days straight, the price fell so dramatically that the commodities exchange stopped trading at the beginning of the day. I couldn’t even sell. There was nothing to do except watch the losses pile up.
By the time trading resumed, I had a commodities margin call for $12,500 ($50,000 today, adjusted for inflation). In other words, I had to put more money into my account because the assets I’d acquired had shriveled so much in value. To pay it, I had to wipe out my savings and cash in my IRA. At least I had savings, so I didn’t have to borrow money.
I had made a classic rookie mistake—speculating instead of investing.
There are three things you can do with money you wish to set aside: save, invest or speculate.
Saving is putting money away for future needs, often in a bank savings account or certificates of deposit. The primary purpose isn’t building wealth; it’s having money when you need it for emergencies or large purchases.
Investing is diversifying money into stocks, bonds, real estate, commodities and other asset classes. The purpose is to accrue wealth over the long term, so investing is boring. While you will see the value of your money decline as well as increase, it is unlikely that over a long period you will actually suffer a permanent loss of capital. Your returns over time will probably be more than you would earn from simple savings.
Speculating is putting money into a high-risk investment in the hope of building wealth quickly. It’s exciting, dramatic and risky. Examples of speculating include trying to time the markets through day trading, putting everything you have into one investment and borrowing to buy stocks, real estate, or commodities.
True, some people made great fortunes through speculating, but many more lost them that way. Not only can you lose your initial investment.

When novices skip from saving to speculating, chances are good that they’ll lose big. Unfortunately, too many of them learn the wrong lesson. They decide, “Investing is too risky,” never realizing they were speculating rather than investing.
As a result, in the future they may limit themselves to saving. Their money stays safe, but over time they lose a lot, especially through decreased purchasing power. Bank savings accounts and CDs pay minuscule rates. Investing is not a casino, but a means to earn the long-term returns that are so important for building net worth and achieving financial security.

Culled from wall streetcheatsheet.

More state workers to join Contributory Pension Scheme

More state and local governments’ employees will soon be enrolled on the Contributory Pension Scheme, the National Pension Commission has said.
The Director-General, PenCom, Mrs. Chinelo Anohu-Amahu, said before the enactment of the Pension Reform Act 2014, some state governments, particularly in the South-West, had established the CPS and were at various stages of its implementation.
“However, the PRA 2014 has taken state and local governments’ participation in the CPS to the next level by express legislative statement on the coverage of employees of state and local governments,” she said.
Anohu-Amahu urged those that had yet to adopt or implement the CPS to do so in order to their employees of the numerous benefits of the scheme.
The PenCom boss said it had established functional offices in the six geo-political zones of the federation and was now strategically positioned to offer the needed technical assistance to state and local governments.
She disclosed that within a decade of the pension reform and the implementation of the CPS, modest achievements were recorded by PenCom.
According to her, the payment of pension under the CPS has been prompt and consistent since 2007.
“From a story of about N2tn in pension deficit under the defunct Defined Benefits Scheme as of 2004, the CPS has accumulated a large pool of investible funds of over N4.5tn pension assets as of June 2014,” she said.
The director-general said more than 6.2 million contributors had been registered under the CPS since inception.

Recently, she recalled that PenCom hosted the world pension summit, the Africa special in Abuja.
She said the summit did not only provide a platform for exchange of ideas on global best practices in pension administration but also showcased the achievements of the CPS in Nigeria in the last decade.
Anohu-Amazu said the PRA 2014 re-enacted the provisions of the repealed 2004 Act, which included the establishment of the CPS with PenCom as the sole regulator and supervisor of pension matters in Nigeria.
She gave other new developments in the PRA 2014 as a wider coverage for private sector employees and an upward review of the minimum pension contribution.
“The PRA 2014 has also reviewed upwards the sanctions and penalties against infractions of the provisions of the Act. The application of the CPS by state and local governments has also received a boost under the PRA 2014, by setting a standard which state governments are required to comply with for the benefit of their respective employees,” she said.
She said the 2014 Act had also made provisions for voluntary participation in the CPS, thereby paving the way for the coverage of the informal sector.
According to her, the PRA 2014 has made provision for contributors seeking to own their homes to use part of the funds in their Retirement Savings Accounts as equity contribution for mortgage.
“It is our expectation that when it is eventually implemented, this development would assist in bridging the housing deficit in Nigeria,” she said.

Culled from Business News

The Good, Bad, and Ugly of Money Management in Modern America-Katey Troutman

Source: Thinkstock

Millennials, those born between 1980 or so and the mid-1990s, comprise the largest and most diverse generation in U.S. history. According to a report from TIAA CREF, by 2025, millennials are expected to account for more than 75% of the workforce in the U.S.; they are a force which will undoubtedly shape the nation in countless ways in the years to come.
Historically, though, much of the conversation around millennials has centered on their detriments. They won’t move out of mom and dad’s basement, they’re too entitled, they’re tech literate to the point of being technology dependent. These are all criticisms that have been leveled at Gen Y in the past few years. And you know what? Complaints are to be expected; every older generation has, historically, been somewhat at odds with their younger counterparts. Just think about what a nuisance the baby boomers were made out to be, back in the day.
But despite all of the anxious squabbling about whether or not the kids are all right, it turns out there is actually one sphere in which Gen Y is pretty savvy, and that’s financially. If that surprises you, then think about this: Millennials largely came of age during one of the greatest recessions in history; many of them graduated college in debt, and were faced with unemployment rates higher than they had been in decades. As a result, while they grew up in vastly different eras, Millennials are thrifty in some of the same ways that those of the Greatest Generation are and were.
So why should we all care what happens to Millennials as they become leaders in the workforce and begin navigating their way through the major financial decisions of their lives? Well, Gen Y is the largest generation in U.S. history, bigger still, than even the baby boomers, and as Northwestern Mutual puts it, “Millennials’ personal finances are more relevant for the state of the economy than those of any preceding generation.”
Without any further to-do, here is the good, the bad, and the ugly (or scary, depending on your point of view), when it comes to Gen Y’s attitude toward personal finance.

The good:

There are good things and bad things about coming of age during a recession. One of the more positive side effects of the recession on the Millennial generation is that they tend to have an intuitive understanding of the importance of saving. According to Time magazine, “one in four are habitual savers.” Further, a study by Northwestern Mutual found that 80% of Millennials have a monthly budget, and more than two-thirds have an emergency fund.”
Interestingly, even though they are a young generation, Northwestern found that saving for retirement is among Gen Y’s top priorities. This may be due, in part, to Millennials lack of faith in “the system.” According to a Principal Financial Group study 58% of Millennials don’t believe that Social Security will still exist by the time they are ready to retire. As a consequence, Millennials generally feel they are individually responsible for their own retirement; if they don’t do it, no one will. To that end, a surprising two-thirds of Millennials started saving for retirement before the age of 25, according to Principal.
Further, Millennials value retirement benefits very highly when choosing employers, and are interested in learning more about how they can improve their prospects for retirement. A Transamerica Center survey found that “two-thirds of Millennials say they would be likely to switch companies for a similar job if it comes with better retirement benefits, and 71 percent of those who are “offered a 401(k) or similar plan by their employers participate in the plan.”
Baby boomers, on the other hand, aren’t quite so prepared, according to the Northwestern Mutual study. The report found that 70% of younger baby boomers (ages 50-59) admit they don’t utilize a financial planner, and 12% say they don’t consider themselves planners at all, the highest percentage of any generation surveyed.
Meanwhile, the Northwestern study found that Millennials “and more senior adults (60+) have something very important in common.” The study found that both demographics “represent the most disciplined financial planners in the U.S. Meanwhile, adults who fall between ages 40-59 are the most financially unprepared and most likely to identify themselves as informal or non-planners.”
Unlike their elders, Millennials generally “recognize the importance of saving, and tend to be more proactive about planning than their elders,” concludes Northwestern Mutual. “One of the financial virtues of this group appears to be a slow and steady approach to building a nest egg. Roughly a third favor a long-term tried-and-true strategy.”

The bad:

While Millennials seem to be super-savers compared to their parents or grandparents’ generation, studies have also found that they are incredibly cautious, sometimes to their own detriment. They despise taking financial risks, for instance, and are incredibly fiscally conservative for a generation so young.
According to Northwestern Mutual, just 14% of Millennials are pursuing a high-growth investment strategy, even though they have plenty of time to ride out any bumps the market may throw at them before they retire. Time magazine notes, when it comes to investments, Gen Y just might be playing it too safe. “If their money is socked away in savings bonds and other ultra-conservative investments it won’t grow fast enough for them to retire even over a long period of time.”
Millennials are the first generation to grow up with modern technology, such as computers, cell phones, and social media. As a result, this generation looks at the world in a very different way from its predecessors and are effectively prioritizing different goals than their parents and grandparents. For instance, Millennials aren’t itching to achieve milestones of adulthood like home or car ownership in the way that previous generations have, and surveys indicate that they aren’t chomping at the bit to have kids, either. Instead, Millennials seem to be prioritizing very different kinds of investments, thinks like education and technology. The Atlantic, which ran a profile of the Millennials called “the Cheapest Generation,” notes that “the largest generation in American history might never spend as lavishly as its parents did — nor on the same things.”
“Just as car sales have plummeted among their age cohort, the share of young people getting their first mortgage between 2009 and 2011 is half of what is was 10 years ago,” the Atlantic reports, confirming other studies reports that young people simply aren’t buying houses.
Further, the Northwestern Mutual study found that Gen Y has “an average level of wealth that was 7 percent below the average level of wealth of those in their 20s and 30s in 1983.” Just as many have been speculating for years, Millennials are still predicted to become the first generation to be worse off than their parents.

The ugly:

Perhaps the largest obstacles facing Gen Y are those they actually don’t have much control over; Time magazine notes that lack of job opportunities and student debt are some of the biggest roadblocks preventing Millennials from achieving their goal of financial security, and yes, it is in fact a goal of many young people. Seventy-seven percent of college-educated Millennials surveyed in the Northwestern Mutual study said that financial security, more than other goals such as freedom, home ownership, or career success, define the ever-elusive “American dream.”
Financial security, however, may be hard for some Gen Yers to achieve. They are, after all the most indebted generation ever; according to Northwestern Mutual, “[81 percent of college-educated Millennials have at least one form of outstanding long-term debt and 44 percent have more than one. The typical college-educated Millennial is thus simultaneously managing personal assets and dealing with long-term debt payments.” For many young people, student loan debt is something which shadows them well into their formative adult years and beyond.
It’s this mountain of student debt, along with underemployment and stagnating wages, studies suggest, which helps explain why more young people have yet to pursue home-ownership, even as 60% of Millennials report they’d like to eventually own their own home. “Low pay, low savings, tighter lending standards from banks…Student debt — some $1 trillion in total — stalks many potential buyers as they seek a mortgage,” the Atlantic notes.
“Many millennials began entering the workforce coincident with the Great Recession, which economists indicate lasted from 2007 to 2009, and whose effects are still being felt today. The economic downturn made it difficult for Millennials to find work. In 2013 the unemployment rate was higher among workers age 25 to 34 (7.4 percent) than it was among those 35 and older (less than 6 percent).”
It seems, then, that Millennials aren’t entirely apathetic to traditional long-term financial goals such as home ownership, car ownership, and having children. Instead, for many the reality is not that they don’t want these things, but that they simply can’t afford them.
The Atlantic notes that delayed home-ownership among Millennials is likely to have an affect on the housing market as well as the economy; less home-owners and less car-owners mean those industries are likely to shrivel, and it’s likely that it will take a while before the economy adjusts to the kind of lifestyle many Millennials are seeking in urban areas.
Whatever the changes that are to come, the studies and stories that are constantly circling about this young generation all seem to reach a similar conclusion: Millennials have their own, unique idea of “the American dream” and, while it differs in many ways from those of previous generations it seems that, in terms of personal finance, Gen Y is fine with doing things the old-fashioned way.

Culled from wallstreetcheatsheet

EFCC arraigns ex-assistant director for N1.6bn pension fraud- Samson Folarin

The Economic and Financial Crimes Commission has arraigned a former Assistant Director, Pension Department, Office of the Head of Service of the Federation of Nigeria, Phina Chidi, before Justice Gabriel Kolawole of a Federal High Court for allegedly laundering N1.6bn pension funds.

Two other accused persons, Franklin Nwankwo and Pam Investment Properties, were arraigned alongside Chidi, on 15 counts of obtaining by false pretences and money laundering.

They were said to have used their position in the Pension Department to obtain N1.6bn by false pretences and launder an additional $2m (equivalent of N332m).

Chidi had earlier been arraigned alongside Shuaibu Teidi, a former Director, Pension Accounts, Office of the Head of Service of the Federation of Nigeria, before Justice Adamu Bello.

Her re-arraignment followed the ruling of the court to split the charge in order to have each accused person stand separate trials for their alleged involvement in the pension scam.

The charges read in part, “That you, Phina Chidi (while serving as Assistant Director, Pension Department of Office of the Head of Service of the Federation of Nigeria), at various times between January 2009 and December 2010, within the jurisdiction of this honourable court, obtained for yourself by false pretences and with intent to defraud, through fictitious contracts payments to Cenco Enterprises, various sums of money amounting in aggregate to N74,350,000.00 from the Federal Government of Nigeria through the Pension Account held by the Office of the Head of Service of the Federation of Nigeria, and thereby committed an offence contrary to Section 1(1)(a) of the Advance Fee Fraud and Other Fraud Related Offences Act,2006 and punishable under Section 1(30) of the Advance Fee Fraud and Other Fraud Related Offences Act,2006”. The accused persons pleaded not guilty to all the charges.

In view of their plea, the counsel for the EFCC, Godwin Obla, asked the court for a date to commence trial.

However, the counsel for the first accused person, Godwin Uche, urged the court to admit his client to bail, adding that he had earlier been granted bail in May, 2011, by Justice Bello.

Justice Kolawole granted the accused persons bail in the sum of N10m each, with sureties who must be resident in Abuja.

The case was adjourned till February 4 and 5, 2015 for trial.

Culled from Punch

Can You Afford Your Ideal Retirement Lifestyle?-[Emily Brandon

Like many people, you may have grand plans for retirement. You could travel for an extended period of time, play golf every day or relax by the ocean, with no end to your permanent vacation. The problem lies in paying for it. None of these retirement dreams come cheap, unless you're willing to expend some effort to find deals. Here's how much it costs to retire in style, along with some ideas to make your ideal lifestyle more affordable:
Golf course. Retirees have the luxury of being able to fit in all the golf they want, assuming they can afford it. Membership at a private golf club often includes a joining fee and required minimum monthly expenditures. Chris Santella, author of "Fifty Places to Play Golf Before You Die: Golf Experts Share the World's Greatest Destinations," says these costs can range from the low five figures to the middle six figures, depending on the club. Playing golf at resorts or municipal courses generally costs less, ranging from $150 to $300 a round on the higher-end courses to between $100 and $150 per round on municipal courses, Santella says. For example, a tee time for two players on a Wednesday in November in Scottsdale, Arizona, at the Troon North Golf Club will cost between $89 in the afternoon heat to $213 for more desirable morning spots. "Alabama has put together a wonderful array of quality golf courses called the Robert Trent Jones Golf Trail," Santella says. "The cost of living in Alabama is much less than being in Scottsdale, but the quality of courses is fantastic and they are very reasonably priced." At Magnolia Grove in Mobile, Alabama, tee times were listed online for as little as $28 per player on a November weekday. Another way to play golf at much lower prices is to volunteer or work part time for a golf club. "Volunteering for a course as a starter or a ranger is a job people will often do free of charge other than the ability to play golf for free," Santella says. "The chance to be out and socialize with people who have the same interest as you and to get those free golf rounds is something that is desirable for a lot of folks."
World traveler. Working people never have enough vacation time to travel as much as they want to, which is a situation new retirees are often eager to remedy. But it's easy to spend your nest egg too quickly on international trips and high-end hotels. "Generally retirees should look for countries that are undervalued in terms of the exchange rate of the dollar," says Matt Kepnes, founder of NomadicMatt.com and author of "How to Travel the World on $50 a Day: Travel Cheaper, Longer, Smarter." "Everyone goes to Europe and goes to Paris. Instead, go to Croatia or Romania. Thinking contrarian in your travel is one of the best ways to stretch dollars." Indeed, five-star hotels in early May are currently just over $100 per night in Zagreb, Croatia, compared with over $400 nightly in Paris. Once you are no longer beholden to work and school schedules, you are also free to travel at off-peak times when tourist sites are less crowded and hotels and airfares are cheaper. "The more you are flexible with your travel plans, the more you will be able to find deals," Kepnes says. "If you go off-season, the crowds are fewer and you will have lower prices." Some retirees find creative ways to save, including doing a home swap with someone in another city or using a recreational vehicle to traverse the country. And, of course, senior and AARP discounts on hotels, cars and attractions abound for those who are willing to admit their age.
College town. Retirement can be a second chance to head back to school and learn something new. College towns tend to offer lots of amenities at affordable prices. Small cities with colleges often have good public transportation that is low cost and sometimes free. If the college has a teaching hospital, there's also likely to be top-notch health care. Some colleges even have retirement communities on or near campus. "You're going to have, in many cases, small-town living, a reasonable cost of living and plenty of things to do, sometimes as much as a big city," says Bert Sperling, founder of BestPlaces.net. "Major universities have world leaders come to speak to students and also to the community, the sporting events are some of the best, there's the possibility of taking classes and the vibrancy of living in a place where you are surround by young people." Many colleges allow local residents who are above a certain age to take classes for free or a very low cost.
Retirement community. As much as we like to think we will spend our retirement years traveling or relaxing, there may also come a time when we develop health problems and need help from others. In case that happens, it's essential to have a plan for the very high costs of long-term care. A private room in a nursing home costs a median of $240 per day in 2014, up 4.35 percent from 2013, and assisted living facilities cost a median of $3,500 per month, according to a Genworth Financial survey of 14,800 care providers. However, the cost of facility-based care has grown at a much faster rate than prices for home care. Home health aides cost a median of $20 per hour, and adult day health care costs $65 per day. "Take a look at home care versus an assisted living community and the costs related to each if you move or stay put," says Joy Loverde, author of "The Complete Eldercare Planner." "If you stay home, you are going to need to retrofit your house so it is senior friendly, and home remodeling costs will depend on what you have done." The cost of care varies significantly by region, so it's important to check local rates when making your retirement budget. In some cases, Medicare will pay for up to 100 days of care in a skilled nursing facility. Those without significant savings can often get help from Medicaid, but families with assets to protect might want to consider a long-term care insurance policy to help defray some of the costs.

Beach bum. Retirement is the perfect time to relax by the sea, but a seaside property purchase could capsize your retirement budget. The cost of oceanfront property largely depends on where you choose to live and whether you want to be right on the water or are willing to live a few blocks away. "In order to determine a budget, you must first outline what is important. House size? Location? View? Proximity to beach? For some, a water view with beachfront access is the priority, and there is some flexibility on the location of the home and its size," says Karen McIntyre, managing director and senior financial advisor for Wescott Trust Services. "For example, Crystal Beach, Maryland, sits at the intersection of the Chesapeake Bay and the Elk River. A two-bedroom, one-bath home with great views and a private beach a short walk down the street can be purchased for less than $100,000. Of course, a beachfront home in a prime location may cost over a million." And if your retirement dreams aren't tied to the ocean, a lakeside or riverside retirement home can also provide water views at a fraction of the cost.

Culled from Us news

Technology as a medium for good pension delivery-Odunze Reginald

The need for a robust information technology cannot be over emphasized and as the Head Surveillance, M Y. Datti of National Pension Commission in the 2011 circular  in raising the minimum share of Pension Fund Administrators to 1 billion Naira stated that as part of its oversight function observed that “the minimum share capital of 150 million naira was no longer adequate to meet the operation expenses of PFA business, given its intensive IT nature and average gestation period of 5 years.

From the presentation of Datti, it is very glaring that IT plays a prominent role in pension management, having an adequate technology infrastructure will go a long way in ensuring customer satisfaction.

There is urgent need to ensure a proper safeguard customer data against intruders, like hackers, identity theft, password sniffers, web crammers, spoofing, data kidnappers, software piracy, cyber squatting and unlawful interceptions.

The need for these safeguards are coming as a result of recent development in the world, I cloud issues, and as Scott Cornell in his article “ Effect of computer hacking on an organization  will say “ It's common for businesses to install security systems to keep their properties safe and to purchase insurance in the event of a disaster or robbery. Arguably, though, a security system feature that is of equal importance is one that business owners can implement to protect company computers from hackers and viruses. Hacking on the whole costs businesses billions of dollars each year. But there's more than just money at stake if your business were ever to encounter a computer hacker”

But technology is an expensive project and requires large chunk of money for it implementation and will definitely a larger chunk of money for its safe guarding and protection, more recently we have read cases of nude pictures of celebrity being leaked on line as a result of hacking of I cloud, if people can hack naked pictures of women, then it is left for anyone’s imagination to ascertain what other areas it can hack.

Technology is a paramount necessity in all spheres of business life and pension cannot be an exception, issues to pertaining to customer service delivery are also a great concern as far as technology is concerned.  All Pension Fund Administrators are geared towards market deepening, and market deepening comes with it  a large customer base waiting to be serviced on a regular bases .But be as it may ,the servicing of these customers requires a robust IT infrastructure.

Market deepening comes with increase in pension assets and large investible funds for growth of the economy and also these are being driven for a good IT infrastructure.

The world has become a global village and we are in the period of hyper globalization, technology therefore becomes an essential ingredient in driving the scheme to a profitable base even as the pensions hit 4.5 Trillion Naira.

Odunze  Reginald  is the Lead Consultant, Chareg Consulting.

7 Retirement Mistakes Gen X Is Making- Richard Eisenberg

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Thinkstock

I often write about the retirement preparedness (or lack thereof) of boomers — my peeps and the prime Next Avenue demo.

But how well is the generation right behind them — Gen X — doing on that score?

“They’re on a retirement collision course,” according to Catherine Collinson, president of the Transamerica Center for Retirement Studies (TCRS), which just published a survey of the 36- to 49-year-olds (as TCRS defines the group; there’s no universal agreement).

“Gen X is, frankly, at risk and they’ve been overshadowed in the headlines by boomers and Millennials,” notes Collinson. Some call Gen X “the neglected middle child.”

Retirement Reality Bites

Here’s the problem: The online survey, Generation X Workers: Retirement Reality Bites Unless Answers Are Implemented, found that even though Gen X’ers started saving for retirement at age 27, they only have $70,000 (median figure) in their retirement accounts. And, the survey said, they expect they’ll need to save $1 million for retirement. About a third of Gen X workers surveyed (31 percent) believe they’ll need to save $2 million or more.

“Do the math,” says Collinson.

Oh, and did I mention that Gen X’ers will start turning 67 (the Full Retirement Age for Social Security benefits) one year before the Social Security trust fund is projected to run out of money? Little wonder that 83 percent of those surveyed are concerned that Social Security won’t be there when they’re ready to retire.

Dealt a Bad Hand

To be fair, Gen X has been dealt a rotten hand. Many bought homes just before the real estate crash (a new Zillow study says Gen X’ers are more likely underwater than boomers or Millennials); lost money when the stock market plunged and are saddled with enormous student loans. Only 12 percent said they’ve fully recovered from the Great Recession, according to the survey.

But their retirement “collision course” can be averted.

“One of my big messages for them is: ‘You have the time to change your retirement destiny, but it requires taking steps now,’” Collinson says.

7 Retirement Mistakes of Gen X

Based on my read of the Transamerica survey, Gen X’ers are making seven retirement-planning mistakes. I’ll run through them and offer advice for each:

1. They’re not saving enough. Those with 401(k)s — the vast majority — are putting away 7 percent of their annual pay (median figure). “On the eve of turning 50, these should be some of their peak savings years,” says Collinson.

My two caveats: One, many Gen X’ers are also trying to squirrel away money for their kids’ tuitions, so they might ramp up their savings rate once the tuition bills are behind them. Two, they're hardly slackers. An impressive 83 percent of this generation is saving for retirement, according to the survey, and 20 percent of them have more than $250,000 in their retirement savings — only 7 percent did in 2007.

2. A big chunk (27 percent) are tapping their 401(k)s for reasons other than retirement. They’re cashing out when they change jobs, making early withdrawals or taking out loans against their balances.

Advice: Don’t do this! Chances are, you’ll never replace that money in your retirement fund. Instead of tapping your 401(k), pump up the size of your emergency fund at a bank or money-market fund. If you don’t have one, open one. “If we learned anything from the recession, it’s that if you find yourself unemployed, you need a cushion to carry you over,” says Collinson.

3. Many (39 percent) don’t want to think about retirement investing until they’re closer to retirement. “They’ve got a lot going on in their lives,” says Collinson. “But they can’t afford not to be thinking about it.”

Advice: Educate yourself about the retirement investing basics. Websites such as LearnVest, Money.com and (shameless plug) Next Avenue can help. So can books and community college classes in personal finance.

4. They’re not estimating their retirement needs. Only 12 percent of Gen X’ers have used a retirement calculator or worksheet.

Advice: Take a few minutes and do this. “It’s like giving yourself a financial look in the mirror,” says Collinson. Don’t go crazy over “The Number.” But having a rough goal and knowing what it’ll take to reach it will help you see how much you should try saving each year.

5. Even when they do think about retirement, they’re neglecting some important factors. The survey found that more than half of Gen X’ers who say they have retirement strategies aren’t including in them: health care costs; long-term care insurance or tax planning. “To our dismay, their strategies are not terribly robust,” says Collinson.

Advice: Make sure you account for health care costs as a retirement expense. And come up with a plan to cover long-term care costs, in case they arise — it could be saving for them or buying a long-term care insurance policy. Just don’t delay if you’ll purchase long-term care coverage; policies become prohibitively expensive once you hit your 60s and 70s, if you can get approved at all.

6. They’re unaware of the “catch-up” contribution rules for retirement saving. A striking 49 percent of Gen X’ers said they weren’t aware of the “catch-up” rules, which let people 50 and older contribute more to 401(k)s and Individual Retirement Accounts (IRA) than those who are younger.

Advice: Once you hit 50, take advantage of this retirement savings tax goodie, if you can afford to do so. We don’t know what the catch-up amounts will be in 2015 yet, but for 2014 you can put up to $5,500 more in a 401(k), up to $1,000 more in an IRA and — for the self-employed and small business owners — up to $2,500 more in a SIMPLE IRA or SIMPLE 401(k).

In 2014, the standard maximum contribution for those plans is $17,500 for a 401(k), $5,500 for an IRA and $12,000 for a SIMPLE IRA or SIMPLE 401(k). With the maximum catch-up, that brings you to $23,000 for a 401(k), $6,500 for an IRA and $14,500 for a SIMPLE IRA or SIMPLE 401(k).

7. Very few are using financial advisers. Only 35 percent of Gen X’ers who are investing for retirement use a professional adviser to help them.

Advice: If you have a 401(k), and the plan offers investing advice as a feature, take advantage of that. “Relatively few 401(k) participants take their plans up on this service,” says Collinson.

Otherwise, hire a certified financial planner (CFP). You can find ones to interview in the directory at the Certified Financial Planners Board site. A topnotch planner will show you whether your retirement planning is on track and, if it’s not, what you need to do. Then you can go back to the rest of your life. 

Culled from Next Avenue