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Don’t Put Saving for Retirement on the Back Burner
Special to The Truth
Most Americans understand
the importance of saving for retirement but unfortunately,
not everyone’s concerns translate to action.
While 93 percent of
working Americans know they should be contributing to their
retirement, only 72 percent are actually doing so, according
to the results of Capital One ShareBuilder’s Financial
Freedom Survey (accessible at http://tinyurl.com/n9zvksh).
The same study found that while nearly three-fifths of
respondents plan to retire by age 65, almost the same amount
of people fear they’ll never save enough for retirement.
“Unfortunately, saving for
the future is often put on the back-burner for what may seem
like more pressing financial priorities, such as paying for
children’s college education,” says Dan Greenshields,
president of Capital One ShareBuilder, Inc. “Today more than
ever before, individuals are responsible for ensuring their
own financial security during retirement.”
The earlier you begin to
plan and save for your post-working years, the better,
Greenshields stresses. Here are some top things to consider:
• How much will you need
to finance your retirement? Do you plan to move, travel or
take up new hobbies? Also take in to account potential
unexpected and rising costs, like healthcare.
• You can estimate your
retirement needs by identifying potential expenses, as well
as by calculating the amount you might receive from each
potential source of retirement income, such as Social
Security, pensions, personal investments and employment
earnings.
• Don't be surprised if
what you need to retire is a large sum -- since this money
may need to support you for 20 or 30 years (or more).
Fortunately, there are ways to help maximize your retirement
savings over time.
• Investing early for
retirement and contributing as much as possible to
tax-advantaged employer-sponsored retirement plans and IRAs
are two ways to help build your retirement dollars.
• Automatically transfer a
regular contribution from your paycheck to your retirement
account.
• In some cases, it may be
appropriate to consider rolling over or transferring funds
to an account without minimums. However, there may be some
cases where leaving the funds may be the right decision. If
you opt to rollover funds, Capital One ShareBuilder, an
online investing platform, offers flexibility by allowing
customers to trade stocks, exchange-traded funds, mutual
funds, and options. More information about whether or not
you should rollover funds can be found at
www.ShareBuilder.com.
• Understand your time
horizon, risk tolerance and goals. Generally speaking, your
risk tolerances will change over time.
• Make planning a family
affair by scheduling times to discuss your financial future
with your partner or family members over dinner, on a picnic
or as part of a weekend getaway.
• Consider working with a
qualified financial professional to help ensure your
retirement plan is on target.
It is never too early or
too late to get started -- and while it may seem daunting,
there are quality tools and resources that might help you
along the way. Sometimes it can be rewarding, perhaps even
enjoyable.
Courtesy StatePoint
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