| Most financial planning advisors and publications | | | | seem impossible, but don't forget that the burden |
| hark on you to start early. They point out the | | | | does not lay entirely on you. Make a list of |
| power of compound interest and show examples | | | | additional resources that you have available. What |
| of how your savings will grow exponentially to | | | | sort of Social Security benefit can you realistically |
| give you plenty of money to retire with. Despite | | | | expect to draw at your retirement age? Do you |
| all of these popular claims, we want you to know | | | | have a pension plan or 401(k) account through |
| that it's never too late to start saving for | | | | your employer? How much will it be worth when |
| retirement. Last-minute planning doesn't always | | | | you retire? Also, if you are married or living with |
| mean poor planning. Some of us just don't have | | | | someone, living costs are significantly reduced, and |
| the job security or earnings in place to start | | | | you will have two retirement funds to depend |
| contributing for a nest egg. Others of us have to | | | | upon. |
| dip into our savings to cover mortgages or | | | | Step 3: Set small goals for yourself. |
| emergency expenses. None of this is to be | | | | With your list of resources in place, calculate the |
| ashamed of. No matter what your age and job | | | | difference between the necessary retirement |
| status, you can set reasonable goals to get your | | | | dollar amount, and the value of your finances |
| retirement fund back on track. | | | | outside of savings. This is the difference that you |
| Step 1: How much do you need for a comfortable | | | | will need to make up, one way or another. The |
| retirement? | | | | easiest way to boost the value of your holdings is |
| All you need is an estimate of how much you will | | | | to max out any matching programs your |
| need to live on while retired. There are a number | | | | employer has in place. Make the maximum |
| of expenses to consider, so try using an online | | | | contributions allowed to your Roth or 401(k) |
| calculator to get into the right ballpark. Most | | | | account. The more money you have in these |
| professionals suggest that you need 70-90% of | | | | accounts, the more you will save on taxes in the |
| your normal income to maintain a similar lifestyle | | | | long run. Matching funds are essentially free |
| in retirement. This should be adjusted if you plan | | | | money in your pocket, so take full advantage! |
| on traveling, if you are caring for other family | | | | Step 4: Address your debt. |
| members, or have significant medical expenses. | | | | High interest rates and poor credit scores can kill |
| Based on your current income, current age, | | | | any financial portfolio. You can't expect to come |
| expected retirement age, life expectancy, and | | | | out ahead with any savings plan if you are making |
| average interest rates, an online calculator will tell | | | | only the minimum payments on your credit card |
| you how much money you need to have set | | | | and loan balances. Paying off these high interest |
| aside when you retire. | | | | loans should be a priority. Once you get into the |
| Step 2: What resources to you have other than | | | | habit of paying your bills in full each month, you |
| savings? | | | | will be in a much better position to contribute to |
| The figure you get from the online calculator may | | | | your retirement fund. |