over your a... We¹re not talking about on-river accidents, a backward run through Crystal or a swim through the Little C riffle. We¹re talking retirement, old age, after the paychecks cease. How many of us have planned, adequately or at all, for our future? Most of us receive little, if any, employer retirement benefits as river guides. Profit-sharing plans, 401ks, pensions, etc., are offered by some outfitters, but many of us fail to qualify. So you need to be your own hero. It doesn¹t take a rocket scientist to be responsible for your own financial future. I know it¹s scary, but you¹re a river guide! Running Hance at low water and guiding city folks up rocky trails is a lot trickier. How do you get started? It¹s never too late to start, though realize that the time is now. The sooner you begin saving, the more time you have to benefit from the magic of the "time value of money."

You also don¹t need to rely on expensive (and often greedy, ill-informed) investment advisors. A little homework at the library or on the Internet will send you on your way. There are lots of publications and software packages out there that can help you strategize and plan your needs, with built-in formulas to keep the math simple (I know you have a math phobia‹don¹t we all?). We don¹t want to turn the bqr into Fortune Magazine, but here are some basics. Most of you will qualify for an ira, or Individual Retirement Plan. This financial vehicle allows you to set up your own retirement plan and invest it as you see fit‹independent of your employer. There are traditional, Roth and sep (self-employed) iras to which you can contribute up to $2,000 every year (or more under a sep-ira). You can set up your ira account through most banks, brokerage firms like Schwab and Fidelity or insurance companies. Once you make a contribution to your ira account, you choose how to invest those funds‹in money market accounts, bonds, mutual funds (a group of individual stocks), etc. (Remember that even if your employer gives you the moon and the sun in terms of retirement benefits, you probably still qualify to set up certain types of iras on your own.)

General rules for wise investment include: 1. Be master of your domain. Take responsibility for your own future. Only you have your best interests at heart. 2. Do your homework. A hot stock tip from a buddy that sounds too good to be true usually is. Understand the risks involved with each investment. 3. Diversify. Your retirement funds should be divided between a variety of investment vehicles, with varying degrees of risk. Most mutual funds naturally spread the risk to a certain degree (vs. individual stocks). Younger folks can risk more than older folks can. 4. Invest for the long term. The wild fluctuations of the stock market are interesting to watch, but shouldn¹t panic you. Think of it like the river¹s flow regime. You don¹t want to run the Gorge on Sunday¹s water, but it won¹t ruin the whole trip if you have to. Ride it out. 5. Get anal about saving. Set up a regular savings plan and commit to it. Even $25 a month set aside for your retirement will be greatly enjoyed by you 30 years from now. As our mothers used to tell us ³Pay yourself first!² 6. Respect the ³time value of money.² What does this mean? Let¹s say you invest $2000 a year in your ira for 10 years. At an 8% return, the ira would be worth $28,960. Not bad. But if you double the time period to 20 years, you¹ll have $91,520! The sooner you start saving, the quicker your money will expand. 7. Ask about the fees. The folks holding your ira account don¹t do this for free. The fees are usually subtracted from your account and often don¹t show up on your statements. Understand up front what the account and transactions will cost you. Could be the difference between Spam and filet minion after retirement. 8. Give yourself a quarterly check-up. Not as bad as going to the dentist. When your quarterly reports arrive from the investment house, give them a once over. What rate of return did you experience over the quarter? Did it keep pace with the stock market as a whole? Over time, the general rule of thumb is to earn the same as the stock market¹s average, which has been about 11% since its inception. If your accounts are lagging seriously behind, it may be time to change some of your limping funds.

Once you decide to set up an ira, you will need to decide between a traditional ira and the new Roth ira (named for the senator who sponsored the legislation). The traditional ira will allow most of you to make a tax-deductible contribution in the year you make the contribution to your account. However, this contribution and the money it earns will be taxed when you pull it out of the account at retirement. In other words, all tax is deferred until retirement. The Roth ira does not allow the contributions to be tax deductible, however (and this is the deal of the century), all the earnings on those contributions will be tax free (not tax deferred). This means when you pull the money out of the ira account at retirement, you get it all! No taxes! For most of us, the Roth ira makes more sense. Keep in mind you can make contributions to your ira account for this year all the way until April 15th of next year (it can be a great way to use your tax refund). Who says the irs isn¹t flexible?

Mary Ellen Arndorfer