19 of 19

Write now Article Tools

One of the most important things you can do is financially plan for your future. Whether you are new tot he work force or looking forward to retirement in the near future, you should be mindful of your savings and have a plan of action to keep or improve your standard of living as you get older.

If you are new to the work force, make sure you gather all the information your company has to offer concerning retirement benefits. If they match your 401k contributions, by all means, take the free money. If there is no apparent benefit to your company's 401k plan, then search for some other companies such as Fidelity or Oppenheimer to compare numbers and options. Sometimes it is simply easier for some people to let their company take their contributions off the top of their paycheck so they never miss the money. If you feel that you might hesitate to write the check on your own each month, then take advantage of this service if your company offers it.

This year you can contribute a maximum of $15,500 to your 401k tax free and another $4000 to an IRA, also tax free. Always keep in mind the tax benefits at the end of the year, especially if you make over $60,000 and have few other deductions.

Retirement funds always build better when you contribute monthly as opposed to annually. Interest accrues on the eleven contributions throughout the year whereas you lose out on that interest when waiting until the end of the year to contribute.

Some other options to look into are individual stocks, Real Estate Investment Trusts, money market accounts, and mutual funds. Bonds are a low risk option with an appropriately low yield, but a well rounded investor includes all these investment channels in order to diversify their portfolio.

While the sooner the better for younger workers, many baby boomers approach retirement wondering if they will be able to continue their standard of living into their retirement. At forty- five years of age, you should have approximately 4 times your annual income saved for retirement in order to be able to continue your standard of living when you retire at age 62. If you are not that fortunate, fear not, you may not have to spend your golden years on your son's hide-a-bed. Max out the contributions to your company's 401k plan and your IRA, and look into another taxable investment channel such as a mutual fund or money market to augment the years you weren't able to contribute what you might have liked to. Try to stay away from stocks, especially tech

• 1
• 2
• next page >>

Add your voice

Know something about How to grow your net worth?
We want to hear your view. Write now!