Cook Wealth Management Group

Grow Your Retirement Savings

Growing Your SavingsAre you unhappy with your 401(k) balance? 

You probably should be.  

A survey by the Employment Benefit and Research Institute found that over half of those surveyed have less than $25,000 saved, one-fourth have less than $1,000, and most don’t know how much they’ll need to retire. When you retire, if you’re without a pension, you’ll be spending as much as you spend now, and bringing in none.  

If your savings account is meager, don’t panic. Or invest recklessly. Or count on Social Security to pay your future bills – the bills that will keep coming even when the paychecks stop. Instead, find a way to save.  

  • Have you recently paid off your car? Put aside for your retirement what you used to spend on a car payment.
  • Did you get a tax refund this year? Have it deposited directly into a savings account.
  • Have you written a monthly student loan check for the last decade? When your education is finally paid for, put that same monthly amount in your retirement account so you won’t get the chance to spend it.

Beyond just putting money away, try to put it in the right place. If your employer doesn’t offer a 401(k), open a tax-deferred Individual Retirement Account, and save as much as you can each month. If you have a 401(k), but make under a certain amount in salary, you can still open an IRA, or a Roth IRA for potential tax benefits, if preferred.  

It’s not too late to work on growing your retirement savings; ask your financial advisor what methods could work best for you. 

Content derived from: -“To retire comfortably, under-40 workers need to seriously bulk up savings” by Jonathan Kern. The Washington Post. July 18, 2010. -“I’m behind in saving for retirement…” by Walter Updegrave. Money. August 2010.