HOW TO SAVE MORE FOR RETIREMENT

You’ve taken care of your old retirement plan and started work with your new employer. How do you ensure you are doing all you can to save for retirement?

One key thing you can do for yourself at this time of transition is to review your progress toward your retirement savings goals, with the help of a Financial Advisor. If you determine that your current retirement strategy is not keeping pace with your goals, here are some steps you can take: 

Maximize your contributions to your new employer’s plan.

Don’t let your savings retire, put them to work in the new plan as soon as possible. Contact your new employer’s benefits office to see when you become eligible, in order to avoid costly delays in retirement savings. With employers generally matching all or a portion of your own contribution, the long-term benefits of this approach are worth it. If there is a waiting period before you become eligible to contribute to the new plan, you might consider paying off old debt now. .

Consider an IRA contribution.

While you are “between plans,” consider the extra long-term savings opportunities in a Roth or Traditional IRA. In a Roth IRA, earnings are tax-free; in a Traditional IRA, earnings are, as in an employer-sponsored plan, tax-deferred. If you and your spouse (if married) are not eligible for an employer-sponsored plan in a given year, you may qualify to make a tax-deductible contribution to a Traditional IRA. Talk to your Financial Advisor about whether a Roth or Traditional IRA would be better for you.

You may also want to consider:

• A long-term approach—while you should always revisit your retirement plan if your circumstances or lifestyle change, frequent buying and selling of investments introduces the uncertainty of market timing, which may dramatically increase the risk of investing.
• Diversification—owning different types of investments–stocks, bonds, money markets, international, etc.–gives you more growth opportunities while spreading out your risk. The particular mix of investments for you depends on your risk tolerance, your time frame of investing, and your current financial position.
• Paying yourself first—investing even a little bit at a time can make a big difference, thanks to the power of compounding. If you set aside $50 to $100 a month, that amount can contribute to a more comfortable retirement in the long run.

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Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

The information provided in this Web site is not intended to be nor should it be construed as tax or legal advice. As with any tax planning matter or strategy, please consult with your attorney and/or tax advisor.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.