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Retirement Planning

Some individuals start planning for their retirement in their twenties and as such can save conservatively and still never worry about their retirement. However, there are many individuals in their 40s and 50s who have not begun saving for their retirement and are starting to realize the importance of having a nest egg to fall back on.

Fortunately, there are still some things individuals only a decade or so from retirement can do to pad their bank accounts and take the financial burden away from their retirements. Some important steps to take include calculating a retirement amount, evaluating retirement incomes, setting savings goals, contributing to 401 k and IRA, making investment, eliminating excess and doing away with all debt.

The first thing you should do if you find yourself close to retirement with no savings is to calculate the amount of money you will need during retirement as well as what age you plan on retiring. You will find many resources online that will help you come up with this number such as retirement calculators.

Once you have an idea of what you need for retirement then you can subtract any sources of income you will receive during your retirement from social security, pensions, 401 k or other sources.

Now that you know where you are going you will be able to set some savings goals and start saving. Don't let time get away from you, start setting your savings goals today and take them very seriously. You can even start today by clipping coupons or shopping store circulars. Once you have set your savings goals make sure that each month you meet them even if it requires making some sacrifices.

Then, start contributing the maximum to your 401 k or open one if you do not have one. This is especially important to do if your employer also offers a matching program. This will increase your savings significantly.

Invest aggressively in mutual funds as well as the stock market. You have at least a decade or more before retirement, so don't get conservative now. Hire a stock broker to guide you if you want, but you can make some serious money if you know what you are doing.

Next, if you are buying new cars, have several houses, are paying high rent, or any other things of this nature then start down sizing immediately. Do not engage in any activity that increases your debt or causes you to spend the money you should be saving.

Finally, rid yourself of all debt immediately. Do not use credit cards, take out loans, or anything because this will only translate into higher interest and more money you will owe and less you will be able to save.

Rud Wallace is the CEO and Chairman of
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