Once the shock has worn off from realizing how much you need to save for retirement, the question is "How on earth am I going to save enough money by the time I retire?" The key is to start putting money away as soon as possible even if it's only small amounts. Here are some tips for managing and saving your money:
Pay off your credit cards as much as possible. You're paying them way more than your investments will pay you.
Save in a tax-deferred retirement account as soon as you can, to get more bang for your investment buck.
Start by saving just 1 percent of your pay if that's all you can afford.
Save for retirement even if you think it's too late. It's never too late.
Save at least the amount your employer matches, otherwise you're throwing money away.
Aim to put away 10 percent of your income for retirement each year; increase your savings rate each time you get a raise.
Aim to build a nest egg that's at least 10 times your annual pay when you retire.
Take any company stock your employer gives you, but don't invest your own money in it. Remember Enron.
Roll your retirement money directly into a new tax-deferred account when you change jobs. Don't cash it out.
Don't take a hardship withdrawal or loan unless absolutely necessary.
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Source:http://www.dummies.com/how-to/content/how-to-save-for-retirement.html
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