38 PROFESSIONAL WOMAN'S MULTICULTURAL MAGAZINE WWW.PROFESSIONALWOMANMAG.COM
CAREERS
W
e know that saving for retirement is always a challenge, but it is imperative to get started boe!nblf!tbwjoh!b!ibcju!gps!b!tfdvsf!sfujsfnfou/!Ifsf! are a few resources that can help in any stage of your career, even if you've already retired.
Near Retirement
Uif!stu!uijoh!up!lopx;!Jut!ofwfs!upp!mbuf!up!tubsu! saving for retirement. Some workers over 50 may even be able to make catch-up contributions to save faster. Figure out where you are in your savings plan and what that means for your retirement savings goals. Use these tips, and check out our retirement toolkit for more resources: ! Put everything you can into your retirement plan, especially if your employer contributes too. Sfnfncfs-!zpv!xjmm!offe!up!sfqmbdf!bqqspyjnbufmz! 91.:1! qfsdfou! pg! zpvs! qsf.sfujsfnfou! jodpnf! up! cover expenses. ! Sfevdf! fyqfotft/! Gvoofm! uif! tbwjoht! joup! zpvs! nest egg.
"You will need to replace approximately
80-90%
of your pre-retirement income to cover expenses [during retirement]."
Debra Golding
Saving for Retirement
at Every Stage of Your Career
By Debra Golding
! Learn about your investment options. Spread your money among investments to diversify, including putting money where the returns are. ! Work longer - giving your retirement savings more time to grow and more income for regular savings. ! Efmbz!ubljoh!Tpdjbm!Tfdvsjuz!cfofut/!Bt!b!sftvmu-! uif!npouimz!cfofut!xjmm!cf!ijhifs!xifo!zpv!tubsu! collecting them. ! If you change jobs, keep your retirement account money in your former employer's plan or roll it pwfs!joup!zpvs!ofx!fnqmpzfst!qmbo!ps!bo!JSB/
New Workers
New workers may have more debt (think student mpbot*!ps!puifs!obodjbm!dpotusbjout!cvu!cfhjoojoh!up! save now is critical because compound interest will allow those savings to grow over time. Follow these recommendations for new employees: ! Dsfbuf!b!cvehfu!boe!oe!npofz!uibu!zpv!dbo!qvu! aside for saving. ! Take advantage of your employer's retirement saving plan. ! It's OK to start small! Even setting aside a small portion of your paycheck each month will pay off in big dollars later. ! Learn about your investment options. You can afford to invest more aggressively, which can have higher returns. ! Get started! Start the saving habit early - get time on your side. You will need to save a lot less later. ! Leave your retirement savings in the plan. When you change jobs or think you need some extra money - resist the temptation to cash out your account. Instead, watch it grow.
Retired
Whether you're ready to enjoy your hard-earned retirement or plan to work part-time, you want a strat- egy to avoid outliving your savings. The money you have saved and invested will be earning income until you withdraw it. Deciding how to handle your money will help you pay less in taxes on the money you take out and continue growing the money you leave in so it can last your lifetime: ! As you're withdrawing money to pay your bills in retirement, you should try to grow your remaining funds to at least keep up with - and preferably cfbu!!jobujpo/ ! You may want to seek the help of a professional, especially later in retirement when you may have less ability to keep your strategy on target. By law, hppe! obodjbm! qspgfttjpobmt! nvtu! cf! usbotqbsfou! and open about their fees and whether they are paid by commissions or for selling products like annuities and mutual funds. ! Be aware of scams. Become an informed investor - if it sounds too good to be true, it probably is. Source: Department of Labor
Mid-Career
Take full advantage of your workplace retirement plan if your employer offers one, and learn how it works. This approach is one of the best and eas- iest ways to save. If your employer doesn't offer a plan, learn about your other options. You also should: ! Save as much as you can. If your employer matches your dpousjcvujpot-! oe! pvu! ipx! nvdi! the match is and how much you need to contribute to take advantage of the entire match. ! Save regularly. Make saving for retirement a habit. ! Use automatic deductions from your payroll or checking account to deposit in mutual gvoet-!JSBt!ps!puifs!jowftunfou!wfijdmft/ ! Be realistic about investment returns. Never assume that a year or two of high market sfuvsot! xjmm! dpoujovf! joefojufmz/! Uif! tbnf! goes for market declines.
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