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