| You've probably heard about the Nebraska | | | | 2. Have a plan. The best way to ensure that you |
| meatpackers who won the largest lottery jackpot | | | | will have a comfortable retirement is to plan how |
| in the United States last week. One winner replied | | | | much you will need to retire. You can't reach your |
| "I've been retired for about four days now" when | | | | destination if you don't know where you're going. |
| asked what he would do with his winnings. His | | | | 3. Participate in company sponsored retirement |
| response did not surprise me; I'm sure my | | | | plans. Many companies offer matching |
| reaction would be similar! | | | | contributions to your 401K or other retirement |
| What does surprise me is that many Americans | | | | plan contributions. This is free money - take it! |
| believe that they cannot retire comfortably unless | | | | 4. Invest in a diversified portfolio of stocks and |
| they win the lottery. A survey by the Consumer | | | | bonds, that fits your goals and risk tolerance. |
| Federation of America shows that 27% of | | | | Studies show that your investment return is |
| Americans believe that their best chance to gain | | | | determined primarily by the allocation of your |
| $500,000 in their lifetime is to win a sweepstakes | | | | assets, not the individual investment selections |
| or lottery. | | | | you make. |
| Fortunately, building a comfortable retirement nest | | | | 5. Keep your costs down. Invest in no-load, low |
| egg is easier than you think. Here are five steps | | | | cost mutual funds (or other investments). |
| to help you build a comfortable retirement: | | | | Lowering the expenses in your portfolio by just |
| 1. Start early! If you started saving $100 a month | | | | 1% can equate to 20% more money in your |
| beginning at age 18, you would have over | | | | portfolio after 20 years. |
| $500,000 by age 65. The power of compounding | | | | Although winning a large lottery certainly can't |
| is great, and the earlier you start saving, the | | | | hurt, following the steps above should send you |
| greater the benefit. | | | | well on your way to a comfortable retirement. |