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Retirement ideas
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March 11, 2000: 8:32 a.m. ET
Women are saving while phased retirement programs are on the rise
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NEW YORK (CNNfn) - Single women in their 20s are doing more to get ready for retirement, while some people in the military might not be doing enough.
This week CNNfn.com's new retirement planning section took a look at companies that are offering "phased retirement programs," and the steps that people should take if they want to keep working part time. We also looked at religious investing and the battle between actively managed funds and indexing, among many other topics.
$avvy young women
Carol Monk is a lot like other single young women these days -- smart about her savings.
 A Web site manager for a nonprofit organization in Chicago, the 29-year-old Monk has created a financial portfolio consisting of stocks, mutual funds, a Roth IRA and a 403(b) to which she has contributed regularly for six years. In addition, she just bought herself a condominium.
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Bridge to retirement
At 63, college professor John O'Hara wasn't quite ready to close the drawer on his chalk and textbooks and say goodbye to the classroom.
 He loved teaching at the University of Central Florida in Orlando for the past 20 years. So instead of quitting the rat race and collecting a Social Security check, he scaled back his hours under the school's phased retirement program.
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Index funds under fire
There was a time not so long ago when actively managed mutual funds got pummeled on performance charts. But now it's their "rivals" -- funds pegged to indexes -- that are on the defensive.
 Actively managed funds are outperforming index funds by nearly five percentage points in 2000, continuing a trend that started in 1999.
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Serving God and nest egg
If purifying your soul tops your to-do list, then purifying your portfolio might make sense.
 Although your choices are still limited, there is a growing universe of funds targeting investors who wish to apply their religious values to their secular financial needs. At present, there are 35 faith-based funds with assets totaling nearly $5 billion, according to fund tracking firm Wiesenberger, a division of Thomson Financial Corp.
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An estate planning QTIP
Estate planning can get especially complicated if you've remarried and have children from your first marriage.
 You want to leave something for both your spouse and kids, tax free, if possible. What should you do? "Typically, a couple will come in with unequal assets," said Roger Levine, an estate planning attorney with Levine & Furman.
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Vanguard on growth wave
Fund manager Bob Turner is used to the highflying world of growth stocks such as Cisco Systems, and the volatility that can send some holdings crashing down. And now, Vanguard investors can get a taste of it, too.
 Turner Growth Equity Fund will become Vanguard Growth Equity Fund in a new partnership the two sides announced recently.
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Seniors give the gift of time
You spent 30 years crunching numbers as a certified public accountant. But your heart belonged to the theater, and you spent every weekend glued to a Broadway seat.
 So now that it's time to retire and hang up your adding machine and pencils, you're going to enjoy your hobby fulltime and volunteer as a set designer for the community drama group.
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Smart asset management
The unpredictability of the market, with its constant upswings and downturns, is a risk that weighs heavily on the mind of every investor. Minimizing the risk through smart asset management is an important lesson that is never too early or too late to learn.
In response to a reader's question, Frank Armstrong, president of Managed
Account Services Inc. in Miami, recommends as a general rule of thumb to the nervous investor a combination of stocks and bonds to safeguard assets
against market volatility.
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One-stop fund shopping
The Wal-Mart revolution has finally made it to the convoluted world of mutual funds.
So if you like to buy car batteries, frozen yogurt and shaving cream in one
store, you might want to consider a fund supermarket that offers thousands of
no-load mutual funds from different families at no extra cost.
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SEP-IRA rollover rules
Rules regarding SEP-IRAs are confusing to many investors, especially since there are different contribution limits. When you leave your job, do you have to roll over your SEP-IRA into a traditional IRA?
In response to a reader's question, Donald H. Boegel, a certified financial
planner from Plymouth, Minn., and a member of the Financial Planning
Association, says you don't have to roll over your SEP-IRA if you leave a small company.
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401(k) distribution tips
If your 401(k) has pre-tax and after-tax contributions, you won't be able to roll all of it into an IRA when you retire. You'll have to take distributions on the after-tax portion of your nest egg, experts say.
In response to a reader's question, Larry Johnson, a certified financial
planner and member of the Financial Planning Association, said you can
choose a mutual fund or an annuity for that money.
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At ease! It's time to retire
When Ron Pearson joined the U.S. Navy 26 years ago, the military helped pay for his education at Rice University in Texas. During his career, he flew F-14s and fought in Vietnam.
Now retired and a financial planner, Pearson is glad he made it to the
20-year mark to collect his full pension benefits.
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A 'new economy' fund
While "old economy" stocks such as Procter & Gamble are fizzling out, fund manager Ken Mertz is finding success with "new economy" stocks such as Mercury Interactive.
Mercury started out testing Y2K systems for possible glitches, and when
the millennium passed the company transformed its business into testing
e-commerce Web sites.
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The growth in home health care
The growth of the senior citizen population has led to huge expansion of home health care.
Managed care discourages long hospital stays, and improved portable medical technology can make it easier for patients to receive their care at home. This year Americans will spend $40 billion on home health care.
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-- compiled by staff writer Lucy Banduci
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