The earlier you start planning for retirement the brighter your golden years will be. You will not always be able to work like you can today. Unless you save now, you may not have the money you need for the necessities of life or for fun. If your company provides a retirement fund, like that of JC Penney retirees, it is helpful, but ultimately you are in control of your future.
A financial planner can help you to evaluate your retirement needs. According to planners, retirees need a minimum of 70 percent of their current income to maintain their current standard of living. To make matters worse, lower earners, who find saving most difficult, will need 90 percent of their current income to stop working.
Most employers offer a retirement savings plan which is a good deal. It helps to lower your tax burden when you are making more money and defers it to the time when you are not working. In addition, the automatic deduction of these plans makes savings much easier. Companies that match employee contributions are even more beneficial. Employees should find the maximum number of matching funds and the years to work for being fully vested.
The way you save is often just as important as the amount you put into savings. Inflation can eat away at your retirement dollars. Choose several different types of investments instead of putting all the funds in one. Diversifying helps to reduce risk while improving return. Let your money earn more savings for you.
Avoid early withdrawal savings. These withdrawals cause the investor to lose principal and interest earned. Depending on your age when you make the withdrawal, you could face penalties, reducing the savings.
Leave the savings in the same plan if you change jobs. Some employers do not allow you to leave retirement in the plan if you leave the job. Move them to an approved plan within the required time. You will avoid penalties.
A financial planner can help you to evaluate your retirement needs. According to planners, retirees need a minimum of 70 percent of their current income to maintain their current standard of living. To make matters worse, lower earners, who find saving most difficult, will need 90 percent of their current income to stop working.
Most employers offer a retirement savings plan which is a good deal. It helps to lower your tax burden when you are making more money and defers it to the time when you are not working. In addition, the automatic deduction of these plans makes savings much easier. Companies that match employee contributions are even more beneficial. Employees should find the maximum number of matching funds and the years to work for being fully vested.
The way you save is often just as important as the amount you put into savings. Inflation can eat away at your retirement dollars. Choose several different types of investments instead of putting all the funds in one. Diversifying helps to reduce risk while improving return. Let your money earn more savings for you.
Avoid early withdrawal savings. These withdrawals cause the investor to lose principal and interest earned. Depending on your age when you make the withdrawal, you could face penalties, reducing the savings.
Leave the savings in the same plan if you change jobs. Some employers do not allow you to leave retirement in the plan if you leave the job. Move them to an approved plan within the required time. You will avoid penalties.
About the Author:
JC Penney retirees, find an overview of the reasons why you should consult an investment adviser and more information about an experienced adviser at http://www.personal-investments.net/ now.
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