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| Benefits & Requirements |
| Retirement Income: Some Tips |
Statistics indicate that at least 95% of all Americans who reach age 65 don’t have enough money to retire. The problem is apparently the fact that most individuals save only about 3% of their income for retirement, when they actually should be saving three to five times that amount. Avoid the three biggest financial management mistakes:
1. Not saving enough
2. Having a high percentage of assets in low-yield investments like CDs and money market accounts
3. Not considering the tax ramifications of investments
David Bach of Dean Witter suggests that you begin by making an inventory of all your assets. Next, know how much goes to taxes, and figure your net worth. The third step is to make a realistic evaluation of your retirement goals: How many more years do you plan to work, and how much will you need when you retire? Fourth, take into account any major purchases you plan to make between now and retirement, such as a new home, or college education for your children.
Finally, create a specific financial plan for how much you need to put away now in order to achieve your goals. Be sure to take into account the effect that inflation might have on your reserves. Consider making an investment in the services of a financial advisor as a coach, and above all, educate yourself about finances.
Source: “Tips on Retirement” HR Wire
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