Money Makeover Tip: It’s Never Too Soon To Save for Retirement

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By The Money Coach
July 14, 2008 @ 12:00 am

The Money Coach Marianna Olszewski says your retirement may not be as far off as you think...

It sounds like it’s a long way off, but each year you are closer to retirement. The sooner you start saving for retirement the more money you will have when you retire and you will be making additional money on your savings through compounding and interest.

Here are some easy ways to start socking away your hard earned dollars:

• Put money into your company IRA or 401K retirement plan. Ask your company if they have a retirement plan and what the maximum you can put into it each year. If they don’t, you can easily set up a 401K at a local brokerage firms like Fidelity.

• Have your company take your contribution right out of your paycheck by direct debit BEFORE you see it. For example, if each week you are paid $600, ask what the maximum is that you can contribute weekly, if the maximum weekly amount is $90, then you should have a paycheck of $510 each week coming to you since the $90 was taken out before you receive your check.

• The money you contribute to your IRA or 401K is taken out before you pay taxes on your income. Since you are investing pre-tax dollars you should invest the maximum in these plans.

• If you own your own business, be sure to talk to your accountant for the best retirement plan for you, SEP-IRA, Keogh plans and the maximum you can invest. If you are a business owner or self-employed you can invest different amounts in retirement funds based on your self-employment income..