Retirement

Posted by Jerry Lopper Jun 9, 2006

Are you saving for retirement? The Center for Retirement Research estimates that you will need 73% of your pre-retirement income to live comfortably in retirement. Furthermore, the Center estimates that 43% of Americans are at risk, meaning they will lack this level of income from post retirement resources.

That's a pretty disturbing report.

I've always subscribed to the "pay yourself first" philosophy of money management. By taking 10% right off the top of each paycheck and investing it, you learn to live on the remaining 90%. When you get a raise or a bonus, take an even larger cut for yourself, 30% or more, and invest it.

If your company offers a 401K or 403B, take full advantage of it. Invest your maximum allowable in IRA's. Take control of your income and outflow stream, so you won't be in that 43% at risk for poverty in retirement.