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.
If a retirement savings plan is available through your current employer, enroll. These plans help to lower your tax burden and increase your refunds. Additionally, they often come as an automatic deduction so it is easier to save. If your company contributes matching funds, it is like getting a raise for each dollar saved. Find the maximum amount of matching funds and the length of time you must work to be fully vested with matching funds.
Be sure you are saving wisely. These choices can be as important as the money you invest in savings and help to overcome inflation. Select different kinds of investments and avoid putting all the money in a single one. By diversifying, you reduce your risk and improve your return, allowing money to earn more savings.
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.
If you change jobs, leave them in the current plan if possible. If your employer will not allow you to leave the savings, you have other options. Roll them over into a new plan or into an IRA. You preserve your savings, avoid penalties and maintain the tax advantages until you retire.
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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