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.
Work with your planner to determine your retirement funding needs. To continue your current standard of living you will need at least 70 percent of the income you currently make. If you are among the lower earners, saving is even more difficult, yet planners believe you will need 90 percent or more of your current income when you stop working.
If your employer has a retirement savings plan, you should participate. The plan lowers your taxes, which can increase your refund each year. In addition, the automatic deductions make saving easier. If your company adds to your savings, you get even more for each dollar saved. Check with the employer to find the maximum they will contribute and the number of years you must participate to collect the matching funds.
The type of savings is often as important as the amount. Money should be invested in different types of accounts and never in just one. Diversifying reduces risk while improving return and providing more funds for retirement.
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.
Work with your planner to determine your retirement funding needs. To continue your current standard of living you will need at least 70 percent of the income you currently make. If you are among the lower earners, saving is even more difficult, yet planners believe you will need 90 percent or more of your current income when you stop working.
If your employer has a retirement savings plan, you should participate. The plan lowers your taxes, which can increase your refund each year. In addition, the automatic deductions make saving easier. If your company adds to your savings, you get even more for each dollar saved. Check with the employer to find the maximum they will contribute and the number of years you must participate to collect the matching funds.
The type of savings is often as important as the amount. Money should be invested in different types of accounts and never in just one. Diversifying reduces risk while improving return and providing more funds for retirement.
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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