Saving And Planning For Retirement

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Everyone knows that they "should" save money for their retirement. These days, many companies have 401(k) plans that allow workers to contribute a portion of their paycheck each month to a retirement fund. However, these often aren't sufficient to allow one to sustain a lifestyle well into retirement. With people living longer than ever, we must each plan for the future even more carefully than ever.

The implication here is that the citizen should and must have practiced at least some measure of thrift, so as to have accumulated at least a small amount of supplementary financial backing of his own. This should have taken the form of a home owned outright, or perhaps other income obtained by proper planning and farsighted investment.

It should also include saving and planning, which is the heart of any retirement program, for the program cannot be put entirely into effect unless: systematic saving in some form has been practiced; farsightedness has been employed so as to ascertain future financial needs and how to meet them.

It has often been remarked that there are many people who find it very difficult to save regularly. It is for them in particular that we suggest the use of some "forceful" savings arrangement. This may take one of the following forms: automatic bank savings, whereby the bank will periodically transfer a certain amount from the commercial into the savings account; regular purchase of U. S. Savings Bonds, perhaps by pay-roll deduction; regular purchase of other bonds and/or stocks, to be discussed later; purchase of an annuity, even by installments. It must be emphasized at this point that the wherewithal for carrying out planned retirement without worry is money and the way to save money is to accumulate it in some form or other and surrounding it by a restraining wall so as to prevent its use for any other purpose than that for which it was originally intended.

Social Security or other pension plans are made possible by enforced deductions from pay-roll checks. Should you want more than this minimum, then you must also provide some form of enforced deduction, which will not be left to chance. Remember that once retirement age has been reached the regular paycheck for services rendered will cease; saving then becomes virtually impossible and is almost pointless because "you can't take it with you"! Systematic saving is a must for all who plan for the future intelligently. When retirement time is reached assets must be left entirely intact so that they will continue to produce supplementary income.

It is true that the ownership of a home represents a saving which is very worth while and gives one a feeling of security, but there is likely to be a need for somewhat more than just a home owned in fee plus some single pension plan or O.A.S.I.; indeed, this may spell the difference between living and just existing. There are always a few things we may need from time to time to make the twilight of a lifetime more pleasant; it would indeed be a sad state of affairs if they could not be had because of lack of funds. Creating a good, well-rounded savings plan will allow you to live rather than just exist.

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