Evenings News.com
Community News and Information
Submit a Story
Search

News Categories  
 
 Auto and Truck
 
 Babies
 
 Back To School
 
 Beauty
 
 Books and Magazines
 
 Bridal Articles and News
 
 Business News
 
 Charity
 
 Children
 
 Cleaning
 
 Community News
 
 Computers and The Internet
 
 Consumer News
 
 Decorating
 
 Education
 
 Employment
 
 Entertainment
 
 Environment
 
 Family
 
 Fashion News
 
 Food and Entertaining
 
 Gadgets and Gizmos
 
 Green Living
 
 Gift Ideas
 
 Health
 
 Healthy Living
 
 Holidays
 
 Home
 
 Home Improvements
 
 Household Hints
 
 How To
 
 Human Interest
 
 Insurance
 
 Lawns and Gardens
 
 Mind, Body and Soul
 
 Outdoor Living and Recreation
 
 Paranormal and Metaphysical
 
 Parenting
 
 Pets
 
 Real Estate
 
 Relationships
 
 Science and Technology
 
 Senior Living
 
 Technology
 
 Teenagers
 
 Toys and Hobbies
 
 Vacations, Travel and Leisure
 
 Weight Loss
 
 Women
 
 Artículos de las Noticias en Español

Senior Living Last Updated: Jul 2nd, 2008 - 21:15:22


Are You Building Enough Wealth to Support Yourself in Retirement?
By
Aug 2, 2007, 21:50

RSS Feed
Email this article
 Printer friendly page

Article Translations: English German Spanish French Italian Portuguese Japanese Korean Chinese
(NewsUSA) - The 21st century offers new opportunities and compelling reasons for workers to achieve the American dream of financial independence in retirement. Fortunately, making that dream a reality got easier when President George W. Bush signed the Pension Protection Act of 2006 into law. This has enhanced the ability of millions of Americans to build wealth through retirement savings programs.

Americans today generally are saving less, spending more and living longer than previous generations. A longer life span means the need for increased savings. And the sooner workers start saving, the better. In financial planning, time is your best friend.

A $125-a-month investment at a modest 5 percent annual return adds up to $50,000 in 20 years, more than $100,000 in 30 years and nearly $200,000 in 40 years. The sooner you start putting money aside for your future, the longer that money can work for you.

If you see a dime on the sidewalk, you most likely will reach down and pick it up. Yet, many workers are leaving thousands of dollars on the table by not signing up for tax-deferred savings programs offered by their employers, especially when those employers provide matching funds. The problem is that some workers are unsure how to invest.

The Pension Protection Act helps solve this problem by making it easier for 401(k)-type plans to enroll workers automatically. Workers can always "opt out," but they won't "lose out" by not making a decision. Rules proposed by the Department of Labor boost retirement savings for these workers by creating appropriate default investments for long-term retirement savings.

Here are a few strategies to help you start taking charge of your retirement future:

* Participate in your employer's retirement plan at work, and be sure to take advantage of matching contributions.

* Increase the amount you contribute to your 401(k) or other retirement plan each year.

* If you're 50 or older, make additional contributions of up to $5,000 to catch up for years in which you did not put money into the plan.

* Be realistic about expenses in retirement to ensure that you do not outlive your savings. Be sure to account for healthcare costs such as prescription drugs.

Secretary of Labor Elaine L. Chao also serves as Chairman of the Board of Directors of the Pension Benefit Guaranty Corporation. For more information, go to www.dol.gov/EBSA.

© Copyright by Eveningsnews.com

Top of Page

Senior Living
Latest Headlines
Stay Independent and Age Happily
Are You Building Enough Wealth to Support Yourself in Retirement?
New Software Helps Your Mind Stay Fit
Seniors Are Healthier And More Active Than Most People Believe
How to Reach Your Financial Retirement Goals
Web Site Helps Select Medicare Rx Plan
Daydreaming About Retirement Instead of Planning For Your Dreams?
Seniors Face High Rate of Depression
Maintain Your Eyesight, Maintain Your Independence National Non-profit Provides Eye Exams for Seniors at No Out-of-Pocket Cost
The Best Safety Devices for Seniors
Senior Volunteers Have Big Impact in Communities
For Aging Adults, Depression Does Not Need to Be Part of the Picture Meaningful Activities Help Keep Older Adults Healthier and Happier
Carefree Retirement? The Right Medicare Supplement Can Help
Don't Put Up With Pain From Hammertoes
Tips for Those Considering Assisted Living
Can Our Minds Grow Younger?
Seniors' Mental Health Problems Often Go Unnoticed
Old Age Or Treatable Condition? Some conditions often attributed to old age are treatable or are indications of more significant conditions.
Keeping Your Mind Fit With Mental Exercise
Foods You Love May Protect Your Brain