Retirement Links
Make Retirement
Saving a Goal
2006 Personal Savings
Fall to 74-Yr. Low
Investing Your
Way to Wealth |
Watch Your Money
Bloom
It's never too soon to plan for your retirement. The earlier
you start the better — a 30-year-old who saves for
retirement could be a millionaire by retirement age. But
even those who don't start saving for retirement until later
in life can win the retirement race. Here are some tips:
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Pinpoint Sources of Retirement Income:
Assess the major sources of retirement income and
determine which ones you have and don't have — and which
ones you should. These include Social Security, employer
pension plan, employer contribution plan (401(k) is most
common), individual retirement account (IRA), and
personal investments.
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Determine Retirement Costs:
Some experts say you need at least 60-70% of your income
to maintain your current standard of living in
retirement. To assess what it will cost to retire,
consider your living arrangements, lifestyle
preferences, medical expenses, financial support given
(to a child's education or aging parents, for example),
and travel and hobby expenses. Consider any expenses
you'll eliminate or benefits you'll lose by retirement
age.
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Calculate the Gap: Once
you estimate your retirement income costs and future
assets and income, you'll know if there is a
considerable gap. If it falls short of what you need,
the rest will have to come from savings.
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Save, Save, Save: Map a
savings plan that works for you. Determine approximately
how much you'll need to save every year between now and
your retirement. You may elect to have certain amounts
taken directly from your paycheck and automatically
invested in accounts (such as 401(k) plans or payroll
deduction savings).
Remember, if you stay on
course and start planning now, you can win the race to
retirement. |
