Page 38 - MidJersey Business - June 2014

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BEST PRACTICES AND OUTSIDE-THE-BOX SOLUTIONS

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Finance

OONER IS BETTER

SSeven steps to get your retirement savings under control |
by James Toto

o, you’re in your 30s—on your way, but not yet at the So, how do cash-strapped workers in this very expensive state

top of the heap. Maybe you’re recently married or (MSN Money ranks New Jersey as the ifth-most expensive state
have a couple of kids. Life is expensive! There are to live in) save enough for retirement? Here are seven steps to get

mortgages, cars, school costs, college funds, and a your retirement saving plan under control.
host of other things you must spend money on.
1
But there’s a nagging voice in the back of your START NOW!
mind telling you that you need to save for retirement.
As discussed, time is not on your side. The sooner you start

saving, the easier it will be to reach your goals. There are many Retirement is more than 30 years away, and how can you save
retirement plans that an employer or a self-employed individual for it when your mortgage is half of your monthly take home pay?

can participate in, so make sure you ind out what is available and Besides, you have $35,000 in an IRA from your irst job, when
start participating right away.
you were single and “rich.” There’s plenty of time, right?

Wrong.
2
Experts agree that today’s 35-year-old will need $2 million
STOP BAD SPENDING HABITS
in assets to retire at age 70. Using a 6 percent after tax yield, you The best way to save more is to cut out bad spending habits.

Austerity isn’t fun, but look for areas where you can make cut- would need to save almost $1,500 per month to accumulate $2
backs. Whether it is eating out, buying too many pairs of shoes, million. If you wait to start saving in earnest until age 45, this

or other indulgences, try to set a reasonable budget and stick with
monthly requirement more than doubles.

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