The 10 commandments of saving for retirement and feeling good about yourself (Part 2)

Posted on Dec 05, 2011 by  in 401(k) Retirement Planning, Retirement Readiness

Here is the second set of five commandments in a two-part series on the 10 commandments of saving for retirement:

6. Get Help – Talk to the financial advisor associated with your company’s retirement plan.  If you did not answer yes to all three questions in the 5th Commandment, have a conversation with your plan’s advisor.  He or she can help you.  If you don’t know who that might be, ask your employer.

7. Take it off the side burner – It isn’t enough to save, you need to monitor your progress.  At least once a year, spend a little time looking at what you’ve save so far and how much you’ll need.  If you are married, get your spouse involved in the discussion.

8. Save Separately – Use a separate savings vehicle to save for your child’s education like a 529 plan that has more portability than a qualified plan and easier access.  Be careful not to sacrifice retirement savings in the effort.  Retirement saving should come first.

9. Budget, Budget, Budget – How do you know what you will need if you don’t know what you need?  Determine your current expenses and consider future expenses so that you can understand what change to your current savings rate might be needed to support your desired lifestyle in retirement.

10. Safeguard your nest egg – As you near retirement age, you’ll want to consider appropriate investment products that will protect against a down market at the wrong time and the risk of outliving your retirement account.  Don’t try to do this yourself.  You’ve worked your whole life to get to this point, so talk to a financial advisor you trust and get their help.

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