The 10 commandments of saving for retirement and feeling good about yourself (Part 1)

Posted on Dec 01, 2011 by  in 401(k) Retirement Planning, Retirement Readiness

Here are the first five commandments in a two-part series on the 10 commandments of saving for retirement:

  1. Start Early – Everybody has heard this, but not everyone who has the opportunity to start early does.  Young people need to be encouraged to begin saving even as early as their first “real job.”  The amount being saved is not nearly as important as the act of saving.
  2. Start Now – If it’s too late to start early, don’t delay it any longer.  Put some money away with your very next paycheck or increase the amount you might already be saving.  You may not be able to achieve the same success had you started 10-15 years earlier, but you’ll still be better off at retirement.
  3. Don’t Quit – If you have time to ride out market swings, consider the advantage your current contributions might have in a down market for when the market recovers.
  4. Don’t Dip – If you change jobs, try to avoid dipping into money you’ve already saved in a tax deferred plan.  Look to use other sources first if you can.
  5. Save EnoughAre you saving as much as you canDo you know what your current savings will buy you in retirement?  Are you getting the maximum employer matching contribution available?

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