Ben Stein's Seven Steps to Financial Freedom in Retirement.

WASHINGTON -- This Fourth of July, the National Retirement Planning Coalition Urges Americans to Declare Their Commitment to Financial Independence During Their Retirement Years

The July 4th holiday is traditionally a time when Americans reflect on the meaning of independence and freedom. This year, Ben Stein, honorary chairperson of the National Retirement Planning Coalition (NRPC), is urging all Americans to think about the very serious issue of their financial independence during their retirement years, and to take the time now to plan for their own financial freedom.

According to Ben Stein, who in addition to his role with the NRPC is a noted actor, economist, lawyer, and former presidential speechwriter, one freedom that is often overlooked -- and sadly, one that many are not able to enjoy -- is financial freedom in retirement. Financial freedom is the ability to live comfortably without the fear of losing the lifestyle that they have worked so hard to achieve.

"The reality is that the majority of men and women in the U.S. haven't spent the time necessary to build a plan that will provide sufficient retirement income. As a result, they may be jeopardizing their retirement independence," said Stein. "While the federal government protects our freedom as a nation, achieving financial freedom is now more than ever an individual responsibility -- particularly with the declining impact of company-sponsored pension plans, Social Security and Medicare."

Stein is urging everyone to spend some time over the next few weeks to think about their own "retirement readiness," and, if they haven't already, to begin the process on their own or with a financial advisor to develop a personal retirement plan. To help make this process easy to remember and understand for every American, Stein is outlining seven easy steps to financial freedom, based on the acronym F.R.E.E.D.O.M.:

--Figure out your goals -- The first step in achieving financial freedom is to set some basic goals and objectives. Think about when you hope to retire and how you plan on spending your retirement years, and then begin calculating how much money you will need to fund your envisioned lifestyle in retirement. Would you like to travel? Where will you live? Do you plan on taking up golf? Do you expect to leave money to your children?

--Reset your priorities -- After setting some basic retirement goals, ask yourself if your current spending and saving habits will allow you to achieve these goals and fund the retirement lifestyle you envision. If not, you may need to make some adjustments to your current finances or sacrifice a luxury or two, such as cutting back on that $3 latte each day, to ensure your financial freedom tomorrow. In a world that emphasizes "spend now, don't worry about tomorrow," many people fail to recognize that excessive discretionary spending can become a major hurdle to financial freedom. However, the good news is that a few adjustments made today can pay off big in the future.

--Eliminate debt -- One of the biggest threats to financial freedom is the accumulation of a large amount of credit card debt. It is even worse to only pay the minimum payment each month, because the finance charges can really add up over time. For example, if you keep a monthly balance of $8,400, you could pay as much as $1,000 in annual interest charges. Now think about this: eliminating this debt and putting that $1,000 in an investment earning six percent each year for thirty years would grow to $84,000 in that same thirty years.

--Engage professional assistance -- Because financial and retirement planning can be a complex process that often requires professional advice and guidance, consider seeking the assistance of a qualified financial/retirement planner. Talk to family, friends or associates who can point you to someone who has helped them. Leverage existing relationships with financial professionals, such as your banker, life insurance agent, investment broker, accountant, or estate-planning attorney, who are qualified to provide retirement planning services or can direct you to the appropriate person.

--Don't rely on the government -- Where retirement is concerned, it is a mistake to think that the government will take care of all your needs. Social Security was never intended to be the sole source of retirement income, and experts predict that Medicare will run out of money in the next 20 years, a problem that is becoming increasingly worse with rising healthcare and prescription drug costs. Now more than ever, retirement planning is a personal responsibility. It's up to you to take the steps necessary to plan for your financial future.

--Optimize your plan for balance -- It is important that your retirement plan contain a balanced mix of savings, investments and insurance vehicles. Don't put all of your eggs in one basket. Many Americans who were relying solely on their 401(k) plans found out the danger of this strategy during the recent market downturn. Also, make sure that you don't underestimate the importance of health and long-term care insurance, especially in this time of rising health care and prescription drug costs.

--Make income the cornerstone of your plan -- With people living longer and retiring earlier, and with the uncertainty of today's volatile financial markets, receiving a guaranteed income payment to cover your core retirement costs for as long as you live becomes critical to a comfortable retirement. In the past, many individuals have relied upon Social Security and company pension plans, but many of today's retirees must look elsewhere, such as to annuity products, to provide this guaranteed income.

The freedoms we enjoy in this country did not come without determination, work and sacrifice. Financial freedom is no different. However, by following these few simple steps, you can be well on your way to a more secure financial future, allowing you to achieve true financial freedom and the ability to enjoy your golden years.

More information about retirement planning can be found at www.RetireOnYourTerms.org or by emailing [e-mail]. Images of Ben Stein are available by emailing [e-mail].

About The NRPC

The National Retirement Planning Coalition brings together leading financial industry and advocacy organizations for the purpose of educating consumers and financial industry professionals on the issues surrounding retirement planning. NRPC members include the Actuarial Foundation, the American Savings Education Council (ASEC), the Center for Retirement Research at Boston College, the Financial Planning Association, For Our Grandchildren, the International Foundation for Retirement Education (InFRE), the National Alliance for Caregiving (NAC), the National Association for Variable Annuities (NAVA), the National Preretirement Education Association (NPEA), and the Retirement Solutions Foundation.