7 Stupid Retirement Myths Exposed

Half of American workers haven't tried to figure out how much they need to save for retirement. Nearly one-third aren't currently saving for retirement, according to the Employee Benefit Research Institute's latest retirement confidence survey, and half of those who have saved have less than $25,000. It's a pretty sorry state of affairs, especially if any of the following myths are what's preventing you from saving:

Myth No. 1: 'I've got plenty of time'
It's later than you think. If you don't start saving by age 35, you'll have a tough time accumulating enough for a typical retirement. You'll have less time to accumulate cash before you quit work, and what you save has less time to earn compounding returns. The earlier you start, the better: Someone who begins at age 22 could have 30% more in her retirement kitty than someone who starts even five years later.

That doesn't mean you won't be able to retire if you start late, but either you'll need to save a prodigious amount of your current income (20% or more) or you're likely to have to live on less in retirement.

Myth No. 2: 'I won't live to see retirement'
If you're alive now, the chances are overwhelmingly good you'll make it to your 60s and beyond. Eight out of 10 males and nearly nine out of 10 females born in the U.S. make it to 65. Sixty percent of men and 73% of women are still alive at 75.

Death is unlikely to release you from your obligation to save for retirement, so you'd better get started.

Myth No. 3: 'I won't ever want to retire'
You may not have a choice, honey. The typical retirement age hovers around 62, and nearly four in 10 retirees say they were forced out of work earlier than they'd planned because of layoffs, poor health or the need to take care of a loved one, according to the Employee Benefit Research Institute.

Social Security is experiencing a surge in applications for benefits as laid-off workers seek early retirement, even as others are trying to work as long as possible to restore depleted retirement accounts. Even if you love what you do, it pays to accumulate a "Plan B" retirement fund. Click here to continue.

Teach Your Teen to be Paycheck Savvy

Congrats! Your kid landed a summer job in this tight, tight economy. Now, of course, he'll have that $7.25 an hour burning a hole in his pocket. That's where you step in: "Parents have a real opportunity to help teens learn to manage that first paycheck," says Mari Adam, a Boca Raton, Fla., financial adviser. "I can't think of a better learning experience." Share some solid financial strategies with your teen now, and your child may even have some cash left over come September.

Have the tax talk
Better explain the harsh realities of gross vs. net before your teen gets any big ideas about what she'll spend her wages on. She may not yet understand that taxes will be withheld from every paycheck. So sit down with your child to go over that first pay stub, explaining how and why taxes are taken out, as well as the difference between income taxes (which most teens are likely to get back when they file tax returns) and FICA taxes (which they won't). "This will be a real shock to them," says Adam.

Take it to the bank
Help your kid open two bank accounts -- one savings, one checking. Spend time together comparing fees and rates online, looking specifically for a no-fee checking account meant for teenagers. You'll have to co-sign the accounts, but it's worth it so your kid can start learning to use an ATM card and keep his balance in the black. (Just don't forget to mention the exorbitant costs of using another bank's ATM.) Click here to continue.

11 Ways to Protect Against Debit Card Fraud

Pop quiz: Can you be a victim of credit or debit card fraud if you still have the physical card?

As Sarah Palin would say, you betcha. While card skimming isn't new, recent skimming incidents, such as those at Bank of America ATMs recently, should serve as a reminder to protect your cards every time you swipe.

Skimmers are devices that capture the data from the magnetic stripe on your card. "Criminals target ATMs because if they can get a card and a PIN then they can get cash," says Mike Urban, senior director of fraud management solutions at FICO, the company that created the FICO credit score. They can transfer the data to a blank card and then use it to make transactions.

Criminals can find out what your PIN is by setting up a camera or watching as you key in your code.

This afternoon I spoke with Urban, who offered the following tips for protecting your credit and debit cards:

Your bank can't ask you about a suspicious charge unless it has your current phone number.

• Copy the customer service phone number from the back of each of your debit or credit cards and keep this list in a separate location from your purse or wallet in case a thief steals the latter.

Click here to continue.