Five Steps To A Richer Retirement

Five Steps To A Richer Retirement

Summary: Youve probably heard about the Nebraska meatpackers who won the largest lottery jackpot in the United States last week. One winner replied Ive been retired for about four days now when asked what he would do with his winnings. His response did not surprise me; Im sure my reaction would be similar!

What does surprise me is that many Americans believe that they cannot retire comfortably unless they win the lottery. A survey by the Consumer Federation of America shows th...

Retirement, retirement planning, financial planning

Article Body: Youve probably heard about the Nebraska meatpackers who won the largest lottery jackpot in the United States last week. One winner replied Ive been retired for about four days now when asked what he would do with his winnings. His response did not surprise me; Im sure my reaction would be similar!

What does surprise me is that many Americans believe that they cannot retire comfortably unless they win the lottery. A survey by the Consumer Federation of America shows that % of Americans believe that their best chance to gain $, in their lifetime is to win a sweepstakes or lottery.

Fortunately, building a comfortable retirement nest egg is easier than you think. Here are five steps to help you build a comfortable retirement:

. Start early! If you started saving $ a month beginning at age , you would have over $, by age . The power of compounding is great, and the earlier you start saving, the greater the benefit.

. Have a plan. The best way to ensure that you will have a comfortable retirement is to plan how much you will need to retire. You cant reach your destination if you dont know where youre going.

. Participate in company sponsored retirement plans. Many companies offer matching contributions to your K or other retirement plan contributions. This is free money take it!

. Invest in a diversified portfolio of stocks and bonds, that fits your goals and risk tolerance. Studies show that your investment return is determined primarily by the allocation of your assets, not the individual investment selections you make.

. Keep your costs down. Invest in no-load, low cost mutual funds (or other investments). Lowering the expenses in your portfolio by just % can equate to % more money in your portfolio after years.

Although winning a large lottery certainly cant hurt, following the steps above should send you well on your way to a comfortable retirement.