Retirement Planning and Saving

Anything having a major effect on your lifestyle requires planning. Retirement is something that planning can help go more smoothly. Take some time to think about it.

Take advantage of retirement savings programs at work. Sign up and and try to save as much as you need to get the full amount of any match the employer may offer. If your contributions are tax-deductible, the money you save in taxes means your take-home pay may not drop much.

Make sure your investments are diversified. If you have many years until retirement you can generally afford to take more risks with your investments than if you're closer to retirement, when you need to be concerned about losses that could delay or jeopardize your plans to retire.

Explore IRAs (Individual Retirement Accounts) and other programs that can help you achieve financial goals and save on taxes. In particular, self-employed individuals and others not covered by a traditional retirement plan at work should explore these options.

Cut back on unnecessary expenses so you have more money for retirement savings. For example, pay off most or all of your credit card balances and other loans to save on interest and avoid having to make these payments during your retirement years. Also, think carefully before purchasing any investment, including a variable annuity, that comes with high fees or penalties if you withdraw money early.

Figure out how much money you will need to save for retirement. Remember, if you retire before your "full" retirement age , your benefits will be reduced.Be on guard regarding retirement investment options. Walk away from anything that "guarantees" consistently high returns or that otherwise sound too good to be true.

Source: FDIC