Best retirement moves this year
Whether you are just getting started or fine-tuning your retirement plan, there are several things you can do today to boost your chances of being financially secure in your retirement years.
|Retirement moves to make
Not only do economic changes affect us from year to year, but personal situations can greatly influence how we save for our retirement years. Regardless of these unpredictable factors, there are certain ways to maximize our results, if we just play it smart.
Take a look at these basic tips that may help to make your retirement years more enjoyable, less stressful, and with less financial burden.
Sure, it's obvious. Nevertheless, too few workers are setting aside money for their golden years. "It's never too late to start retirement savings, and never too late to beef it up," says Dee Lee, a Certified Financial Planner and author of "Women & Money."
If you're fortunate enough to
receive a raise or bonus in your job, perhaps
you can set aside all or part of your extra
earnings, or a regular portion of your paycheck,
for retirement. But even if you don't have
extra cash to stow away, small changes in
your daily life can reap big rewards.
Cut back on the number of times you order take-out dinners or go out to eat each month. Be creative in ways to reduce your spending on a daily basis, thereby adding extra savings in the long run.
Maximize (or boost) 401(k) contributions
In recent years, employers have been backing away from providing pensions, lifetime health insurance and other benefits that had been valuable safety nets to employees long after they leave work.
Companies are putting the onus on workers by adopting 401(k) plans and other plans that are funded by employees' salaries, rather than company largesse. The number of employers offering old-style pension plans has been dropping steadily, according to Hewitt Associates.
If you have a 401(k) plan at
work and aren't putting as much as you can
in it, increase your contributions. In 2008,
individuals can stash up to $15,500 of pretax
earnings in a 401(k). For those 50 or older
by year's end, the limit is $20,500. The overall
contribution cap to a 401(k) (including employer
matching funds) is $46,000.