Top 10 Ways to Beat the Clock and Prepare for Retirement
| 1
|
Know your retirement
needs. |
Retirement is expensive. Experts estimate that you'll
need about 70% of your pre-retirement income-lower earners, 90% or more
- to maintain your standard of living when you stop working. Understand
your financial future.
|
| 2
|
Find out about your Social Security benefits. |
Social Security pays the average retiree
about 40% of pre-retirement earnings. Call the Social Security
Administration at 1-800-772-1213 for a free Personal Earnings and
Benefit Estimate Statement (PEBES)
|
| 3
|
Learn about your
employer's pension or profit sharing plan. |
If your employer offers a plan, check to
see what your benefit is worth. Most employers will provide an
individual benefit statement if you request one. Before you change jobs,
find out what will happen to your pension. Learn what benefits you may
have from previous employment. Find out if you will be entitled to
benefits from your spouse's plan. For a free booklet on private
pensions, call the U.S. Department of Labor at 1-800-998-7542
|
| 4
|
Contribute to a tax-sheltered savings plan. |
| If your employer offers a tax sheltered savings plan, such as a 401(k),
sign up and contribute all you can. Your taxes will be lower, your company
may kick in more, and automatic deductions make it easy. Over time,
deferral of taxes and compounding of interest make a big difference in the
amount of money you will accumulate. |
| 5
|
Ask your employer to start a plan. |
| If your employer doesn't offer a retirement plan, suggest that he/she
start one. Simplified plans can be set up by certain employers. For
information on simplified employee pensions, order Internal Revenue
Service Publication 590 by calling 1-800-829-3676. |
| 6
|
Put money into a Individual Retirement Account. |
| You can put $2,000 a year into an Individual Retirement Account (IRA)
and delay paying taxes on investment earnings until retirement age. If you
don't have a retirement plan (or are in a plan and earn less than a
certain amount), you can also take a tax deduction for your IRA
contributions. IRS Publication 590 contains information about IRAs. |
|
_________________________________________________
|
IT'S NEVER TOO LATE TO START
Start young. A look at the performance of $2,000 retirement plan
investments over time at 4% shows the value of starting early.
|
| AGE | 1995 Dollars grow to |
| 30 | $2,000 |
| 40 | $24,012 |
| 50 | $59,556 |
| 60 | $112,170 |
_________________________________________________
| 7
|
Don't touch your savings. |
| Don't dip into your retirement savings. You'll lose principal and
interest, and you may lose tax benefits. If you change jobs, roll over
your savings directly into an IRA or your new employer's retirement plan. |
| 8
|
Start now, set goals, and stick to them. |
| Start early. The sooner you start saving, the more time your money has
to grow. Put time on your side. Make retirement saving a high priority.
Devise a plan, stick to it, and set goals for yourself. Remember, it's
never too late to start. Start saving now, whatever your age. |
| 9
|
Consider basic investment principles. |
| How you save can be as important as how much you save. Inflation and the
type of investments you make play important roles in how much you'll have
saved at retirement. Know how your pension or savings plan is invested.
Financial security and knowledge go hand in hand. |
| 10
|
Ask questions. |
| These tips should point you in the right direction, but you'll need more
information. Talk to your employer, your bank, your union, or a financial
advisor. Ask questions and make sure the answers make sense to you. Get
practical advice and act now. |
| Fact: Less than half of Americans have put aside money specifically for retirement. |
| You can't retire with security unless you really prepare for it.
That means facing up to reality, and beginning to take action for tomorrow as well as
today. |
Fact: In 1993, of those who had 401(k) coverage available, one-third didn't participate. |
| Putting away money for retirement is like giving yourself a raise. It's
money that gives you freedom when you want it-and deserve it. |
Fact: The average American spends 18 years in retirement. |
Today, half of Americans
guess
when determining their retirement needs.
Don't be one of them. Find out more.
Save now
and beat the retirement
clock. How to find out more
Here are sources of information to help you prepare for retirement:
Pension and Welfare Benefits Administration
U.S. Department of Labor
202-219-8776
http://www.dol.gov/dol/pwba/
Publication Hotline: 1-800-998-7542
Savings Bond Operations Office
U.S. Department of the Treasury
http://www.publicdebt.treas.gov/sav/sav.htm
Social Security Administration
1-800-772-1213
http://www.ssa.gov
Besides these government agencies, many private organizations may be
helpful. For additional information, you may want to contact one of the
following groups:
American Association of Retired Persons
202-434-3525
American Council of Life Insurance
1-800-705-ACLI
American Institute of Certified Public Accountants
201-938-3990
American Savings Education Council
202-659-0670
http://www.asec.org
Commission on Saving and Investment in America
202-628-5900
Employee Benefit Research Institute
202-659-0670
http://www.ebri.org
Investment Company Institute
202-326-5800
Securities Industry Association
202-296-9410 |
|
Click Below To Check Out More Financial Resources
|
|
|
|
|
The Center For Debt Management™
Helping Consumers Save Money and Reduce Debt Is Our Only Business!™
We invite you to explore the sectors listed below. We promise that you'll find exceptional values, offers and resources in which to reduce your living expenses and to enjoy life!
|
Debt Management and Financial Services! The Internet's oldest and most comprehensive debt management
agency! Resources for debt management, consumer credit counseling, debt consolidation, debt reduction settlements, legal aid, financial aid, loans and financing, credit repair, credit reports, insurance quotes, income sources, tax assistance, and more.
Established in 1989 and serving the online community since 1992!
|
|
