Many Americans fear retirement almost as much as they strive for it. Some feel that they are behind in their savings, but fail to discover just how behind they really are. The key to solving this problem is to simply take action! Instead of wondering how behind you are, consult a financial advisor who can help you determine exactly where you are at and how you can achieve your goal. In fact, many studies have shown that the very act of seeking financial help can drastically improve your odds of success.

Begin by first collecting all of your financial information, such as your 401(k) plan, bank statements, brokerage records, estimated social security benefits, and any projected pension or retirement plan payouts. With this information, you can do a basic calculation on your own to see how much you need to save each month in order to retire comfortably. There are many online retirement calculators that can help you with this. Then, if you find that you are quickly falling behind, it is best to contact a fee-only financial advisor who can help you find ways to get back on track. Remember, the sooner you find out about your situation, the more quickly you can correct it - there is no sense in procrastinating!

You have hundreds of them, maybe even thousands - it's money in your pocket, and it's everywhere. Spare change is cash waiting to be exchanged. Do not just toss your spare change anywhere, against the fact that most people find it in pockets of their clothes, on dressers, in drawers, and left at the bottom of backpacks, purses and bags. Each day, take your change and place it in one place, such as a specified change jar. Many people have been using a change jar ever since they were little, and even to this day the practice is still embraced by many. It doesn't necessarily have to be a jar either; it can be a cup, an old cigar box, etc. The point is, don't throw away your change or lose it, for it is valuable money waiting to be exchanged into cash.

Save up all of your change for special savings, an "indulgence" savings. Your change should be a gift to yourself, but you need to be patient with it for it to become a worthy amount of cash.  I would recommend only exchanging your change for cash every half year or year.  Also, it is most necessary that you do not dig back into your change jar to grab a few dollars in quarters here and there.  Even if you need to do laundry, your change in your jar should be considered sacred; don't touch it.

Some banks will only count your change and turn it into cash for a small fee, such as 2% or 5%, or for a minimum of $2 or $5.  However, some banks and most credit unions do exchange change for cash for free for their customers. If you don't want to bother with cashing in your change at a bank, consider bringing your change to a Coinstar machine, located at over 10,000 supermarkets. Coinstar charges 8.9% to sort and count all those coins you saved.  However, it may be worth it.  If you have $30 worth of coins, 8.9 percent is $2.67. By the time you sort, roll and write your name and account number on the wrappers, it's worth the $2.67.  At the rate of paying 8.9%, you may also want to reconsider giving in to the smaller percentage charge at a local bank. Either way, your change can quickly be turned into a good amount of cash. Just think, if you save an average of just $0.30 a day everyday, you will have over a $100 within a year.  You wouldn’t throw away spare bills, so don't throw away your change!

When we think of debt, we generally think of middle to lower-classes.  However, this is not the case anymore. The nation's personal borrowings show that the upper-class is piling on debt faster than the middle class, though for very different reasons.

According to the Federal Reserve Board's Surveys of Consumer Finance, the nation's richest 1% took on $342 billion in new debt between 1998 and 2004, the latest year for which data are available. (The 1% represents households with net worths, including primary residence, of at least $6 million.) Economists say that debt number has probably continued to grow since 2004, because interest rates remain low by historical standards.

Just as the rich control a disproportionate share of national wealth, they also account for a disproportionate share of debt. The richest 1% now hold 7% of the nation's debt, with a total of $650 billion in borrowings, up from 5% in 1998. Debt for this group grew faster than for any other group in the Federal survey. Total debt held by the top 1% increased 150% between 1998 and 2004, compared with growth of about 100% for those in the 50th-to-90th percentile wealth range. The rich, in short, have joined the great American borrowing binge.

The reason behind the richs' debt?  Simply that they are continuing to buy and buy and buy.  After buying a few homes and funding ever-more lavish lifestyles, today's risk-friendly rich are embracing debt as a way to expand fortunes and fund increasingly materialistic lives.

Yet, there are some differences in the borrowed funds for the rich in comparison to the rest of the nation. Unlike many lower-income Americans who rely on credit cards and home-equity and other loans to meet living costs, the rich often use debt as a financial tool. Their debt is generally used for mortgages on their primary or nonprimary residences, according to the Federal data. They may have plenty of cash to pay for their investments and "toys," but they would be better off keeping the money in higher-returning investments or businesses.

It is suggested that the rise in the growing amount of debt among the rich stems in large part from the growing pressure among the elite to keep up with richer peers. The biggest differences in wealth today are among the rich, with simple millionaires getting shoved aside by decamillionaires, centimillionaires and billionaires.

In short, there is continuous game that involves the top 1% struggling to keep up with the top 1/10th of 1%," he adds. Those people trying to keep up with the top 1/100th of the top 1%. There is a drive by the merely rich to keep up with the obscenely rich.

To build up savings, you must learn first to save money before spending it.  We all have the great ability to spend money, but you need self-discipline to save that money instead of spending it. If your bank can't link your checking and savings accounts, or if you find it hard to control your spending when access to your savings is easy, ask your employer about direct deposit. You can have money taken from your paycheck and placed in a savings account automatically.

Combine your savings and checking accounts with an ATM card. Set up three savings accounts, each for a different use or goal. For example, one may be for emergency cash, a second for expenses and unexpected bills, and a third for investments. Carry your debit cards only when you really need them to make transactions, and withdraw only what you need for one week; this should curb your temptation to withdraw cash for impulse purchases.

As for paychecks and paydays, put only the money you need to live on for one month (or two weeks, if you get paid every two weeks) into your checking account for expenses and bills. Also, if you can, put money equivalent to one month's expenses into your expenses account for unexpected bills. The idea is to build at least a small stash so you're less likely to use your credit card if your car needs a new tire.

Begin building an emergency cushion by depositing a portion of each paycheck into your emergency savings account. If your goal is to have three months' living expenses, you could reach your goal within 30 months by saving 10% of each month's pay — or in 15 months by saving 20%.

Place the remaining money into your investments account, including found money such as birthday and holiday checks, bonuses, or money made from a garage sale. If you get a raise, put the difference into this account on a regular basis.

Nearly two-thirds of college students carry some type of debt. Late payments are also rising, as college students are suffering more than any other American. Nearly half of college students struggling with debt have stopped paying their debt(s), forcing lenders to "charge off" the debt and sell it to a collection agency.  If not that, then they are having their cars repossessed or they are seeking bankruptcy protection.

Over half of college students feel that they face tougher financial pressures than young people did in previous generations. About 30% of students frequently worry about their debt.  Although the percentage of people ages 22 to 29 with debt has declined, their total debt is up 10% from five years ago, to an average $16,120.  Every type of debt, from credit cards to college to personal loans, has risen.

Student-loan balances rose 16% to an average of $14,379; revolving debt, including credit cards, surged 24% to $5,781; and total installment debt, including student and personal loans, rose 4% to $17,208. The fastest-growing group of financially-troubled college students owes $20,000 or more in student-loan debt.

Debt has forced some young people to change their career plans. Of those surveyed, 22% say they've taken a job they otherwise wouldn't have because they needed more money to pay off student-loan debt. Three out of ten students have delayed or discontinued further education because they have too much debt already.  Of these college students, 26% have put off buying a home for the same reason, just as a smaller percentage say they've put off marrying (11%) or having children (14%).

The last resort for people with an excessive debt load is bankruptcy. While many cases can be resolved with credit counseling or debt negotiation, some amounts are simply unmanagable. In these cases, personal bankruptcy may be a final resort. There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7 - each filed in a federal bankruptcy court. As of April 2006, the filing fees run about $274 for Chapter 13 and $299 for Chapter 7 while attorney fees are additional and can vary. The government would rather see consumers seeking debt relief with bankruptcy under Chapter 13 rather than Chapter 7.

Chapter 13

Chapter 13 allows people with a steady income to keep property that they might otherwise lose through the bankruptcy process, such as a mortgaged house or car. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a period of three to five years, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7

Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official, a trustee, or turned over to your creditors. There is an eight year waiting period after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may rid you of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary by state. Personal bankruptcy, however, does not remove child support, alimony, fines, taxes, and some student loan obligations.

The Senate Banking Committee held a meeting last week with representatives with some of the top credit card companies in the United States, including JP Morgan Chase, Capitol One and Barclays. Most of the meeting centered around credit card industry trade practices and making credit card terms easier for consumers to understand. Consumer advocates attending also brought up a host of other concerns as credit card delinquency fees continue to rise from just $1.7 billion in 1996 to a staggering $17.1 billion last year. One of the biggest concerns dealt with the ability of credit card companies to change the terms of their agreements with just 15 days notice - this is despite most credit cards having expiration dates several years in the future. What else can be done to improve the situation? Well, here are some other suggestions brought up at the meeting:

1. Universal Default Pricing - This is a policy that enables credit card companies to increase your rates (even if you were a model customer beforehand) if you're late on bills on other accounts, or if your credit score falls.
2. Double Cycle Billing - This is a policy that enables credit card companies to charge interest on an amount that you have already paid back. For example, if you pay $900 of your $1000 credit card bill, some credit card companies will charge you interest based on the full thousand until the remaining $100 is paid off. While bank loans operate in a similar way, many feel that credit card companies should discontinue this practice.
   
3. Zero Tolerance Late Fees - Often times even if you pay off your bills an hour late, you're hit with a $20 to $50 fine and associated rate increases as well. Many argue that these people who make accidental late payments shouldn't be grouped with those who are months delinquent on their bills.
   

Sen. Dodd said that the hearing would be the first of several to examine credit card practices. While it's not clear whether any legislation would result from the effort, many hope that lawmakers and the credit card industry might try to come to an agreement on best practices. But Dodd did issue a warning to credit card companies during the hearing: "If you currently engage in any business practice that you would be ashamed to discuss before this Committee, I would strongly encourage you to cease and desist that practice. Irrespective of the current legality of such practices, you should take a long, hard look at how you treat your customers."

The national debt limit has been raised four times during the last five years. The increased debt ceiling is now at an incredible $9 trillion, with the current national debt just under $8.7 trillion.

Like many cash-strapped Americans who have terrible credit and who max out their credit cards, the federal government has hit its limit for borrowing funds to keep operating. If the limit isn't [continuously] raised, the government will eventually run out of borrowing authority, risking a national economic shutdown in a worst case scenario.

But is this problem being addressed? Well, when President George W. Bush initially took office, the national debt was at $5.6 trillion. Since then, big budget surpluses have collapsed into huge deficits, and the debt has shot up nearly fifty percent. While this may not be entirely due to his actions, there appears to be no end in sight to government spending. While the government encourages Americans to save, they continue to print and spend more and more money.

One of the critical question that you must ask yourself when you retire is whether to take a lump sum or annuity plan for your pension. Annuities are financial instruments that make payments to you on a regular basis for the rest of your life, while a lump sum is simply one full payment made now. Whether its the lottery or retirement income, most people choose the lump sum because they believe it offers them the best deal, but this may not be the case!

The biggest factor to take into consideration is your lifespan. Annuities die along with you and your spouse and leave nothing for your heirs, while lump sum payments rolled into an IRA or other retirement vehicle lets your heirs keep the money after you die. Consequently, the general rule is: the longer you live the more valuable an annuity is and visa-versa. Statistics show that a 65-year-old man has a roughly 50-50 chance of living to age 85 and a 25 percent chance of living to 91, while a 65-year-old woman has a 50 percent chance of living to age 88 and a 25% chance of making it to 93.

When evaluating these options, it is important to calculate your retirement needs after social security income and any other income. If you rely on your pension for the majority of your retirement income, then a lump sum may be the best option, as it gives you much needed money upfront. However, if this just accounts for a small portion of your income, the chances are it will pay off to take the annuity over the lump sum as it will typically amount to more in the long run. Finally, another common alternative is to take the lump sum payment and purchase a separate annuity with a higher yield, which gives you the best of both worlds. Combined, these are all very important factors to consider when making decision on your pension payout.

If you are expecting a sizeable income tax refund, you'd think you'd want to file your return as soon as possible to collect the money that the government withheld from you all year, right? On-line filing has made it even quicker and easier for you to receive your refund.

However, avoid being rushed to file too early for the tax season. Due to a lot of changes in the tax laws, banks, brokers, and mutual funds sometimes cannot provide accurate information to you by their end of January deadline. A number of financial institutions will likely be forced to send you revised 1099 forms in February, March, or even as late as April.

It doesn't hurt if you decide to delay filing until March because the initial 1099 form you receive may not be accurate. If you file too early and then get a revised 1099, you may need to file an amended tax return to claim an additional refund or to pay tax that you subsequently owe. In short, take your time filing your taxes this season - it'll only help you in the end.

According to a survey conducted by the U.S. Department of Justice, identity theft affects about three percent of all households in the U.S., totaling an estimated 3.6 million families in the U.S each year. To put that in terms of money, identity theft costs an estimated $6.4 billion per year.

Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number or other identifying information, without your permission to commit fraud or other crimes. Consumers whose identities have been stolen can spend months and years clearing up their good name and credit, not to mention the expenses that may be involved.

To protect yourself from identity theft, you should protect your social security number, your credit/debit cards, and your financial documents:

Social Security Number: Remove your SS number from your driver’s license and insurance cards, just as you should not put your social security number on your checks nor carry a copy in your wallet. If you have to provide your number for anything, offer only the last four digits and request that your number be taken off any loan applications.

Credit Cards/Debit Cards: Carry your credit/debit cards separately from your wallet. It is a good idea to keep a secured copy of all account numbers (and pin numbers), but never carry them with you. As well, sign all new cards you receive. Never leave your credit cards unattended and be alert for "peering eyes" when making purchases; do not leave ATM receipts behind and protect all accounts with a password. Check your account activity regularly and monitor it for accuracy and any discrepancies.

Financial Documents: Shred all of your personal information whenever possible and do not carry extra cards or identifying documents with you.