Investing for Your Retirement

Why work Monday - Friday, 40 hours a week? Hopefully, it is because you are putting in hours that are getting you closer to that golden age of retirement, so you can finally quit that J.O.B.

When you become close to retirement age, it is important to have something to retire on. For most people, the income from Social Security is not going to be enough money to provide all life necessities. Therefore, it is important to start putting money into a deferred compensation program, which offers pre-tax supplemental retirement plans. Depending on your job, the deferred compensation program can go by many other names, but for the most part, it is your company's 401 (k) or 457 plan. Both plans are voluntary, long-term investment choices that will support your pension, or social security benefits.

WHY YOU NEED TO JOIN

401 (k) programs provide additional retirement income, offer automatic payroll deductions, and allows for a variety of investment choices. This is important because experts predict that you will need 75% or more of your current annual income to maintain your present lifestyle when you retire. However, investing in a deferred compensation program will help you meet your financial goals and plans for retirement.

THE MYTH ABOUT INVESTING IN A 401(K)

1) Only People Who Make A Lot of Money Can Afford Investing in a 401(K)

In most cases, employees can invest as little as *$50 a month to their plan. By investing in your retirement plan, you are being tax less. Therefore, the actual decrease in your check will only be $38. Just by investing $38/mo. in 30 years your 401 (k) will have made around $70,000. A lot of us spend $38 a month on coffee, snacks, and other miscellaneous things we can go without, however, if you invest that $38 you will be allowing yourself to meet your retirement goals.