Wednesday, August 13, 2008

Don't Raid Retirement Funds to Pay Everyday Expenses: Kiplinger's

The folks at Kiplinger's sent me this information about "6 Surefire Ways to Boost Your Nest Egg."

"In a recent AARP survey of workers 45 and older, one-third said they had stopped contributing to their retirement plans and another 23% had tapped their retirement funds prematurely. But the long-term impact of doing either of these things can be devastating.

So, keep your retirement planning on track, according to the September issue of Kiplinger’s Personal Finance.

1. Contribute at least enough to your 401(k) plan to capture your employer’s match, and bump up future contributions automatically.

2. If you are 50 or older, make additional “catch-up” contributions of up to $5,000 a year.

3. If you own a business, take advantage of tax breaks and shift the additional money to savings.

4. Don’t raid your retirement accounts early. You’ll lose the benefits of compounding.

5. Plan to work a few years longer to fatten your kitty and your Social Security check.

6. If you are already retired, reduce your annual withdrawals until the stock market bounces back."

Here's the link to the full retirement article

Here's how to buy my new book:

@ Barnes & Noble
@ Borders

No comments: