Monday, October 31, 2005
Ten tips for a safe retirement
- Start planning as early in life as possible. Initial professional consultations are often free.
- Put your financial plan in writing so it seems more tangible.
- Saving 5 percent or less of one's income is no longer a viable plan; shoot for 10 percent or more.
- Dual-income families may consider saving or investing one entire salary.
- Maximize your employer's 401(k) plan before considering other investments like a Roth 401(k) or a Roth IRA. Diversify further investments.
- Prioritize retirement savings over college savings; instead, help kids pay off their student loans as finances allow.
- Consider establishing a secondary income now (such as an Internet business or hobby turned money-maker) to carry over into retirement.
- As early as age 40, look into long-term-care and disability insurance.
- View health and exercise as financial safeguards.
- Don't wait until retirement to pursue dreams and interests. You may be working longer than you anticipate.
Money Savings Tips
- Pay yourself first: Avoid the temptation to spend by automatically putting a percentage of your earnings into a savings account.
- Adopt a cash only policy: If you don't have cash, don't buy it.
- Brown bag it: Figure up what you spend on lunches out. Bringing a sandwich to work could save you as much as $1,200 per year.
- Realize time is money: The earlier you start saving for retirement, the better.
- Establish an emergency fund: By saving at least six months of typical expenses, you'll have a cushion for tough times.
- Have adequate insurance: Make sure you are protected should your health leave you unable to work.
- Track expenses: Find out where your money really goes.