No one is going to argue that times are tough these days. Most people need to stretch their dollars as much as possible to squeeze in all of the necessities. Wages have been largely stagnant for the better part of the last decade, meaning that there are fewer discretionary dollars available for spending.
There's no law that requires you to save for retirement, though many employers now require participation at some level in company-sponsored retirement savings plans. Most companies that have a 401(k) plan offer some kind of matching incentive. In the past year, some big-name corporations have suspended their 401(k) matching grants, but in all 99% of companies that were matching last year at this time are still matching this year.
Under the circumstances, should you continue to save for retirement? Probably. Most 401(k) investments are based in stocks or a mixture of stocks and bonds. Historically, the stock market has risen in value over time. At the moment, the decrease in the value of retirement funds and investments may mean a loss for your past investments, but also represents an opportunity to buy investment-grade securities effectively at a discount.
Moreover, your only opportunity to save for retirement is during your working years. Ideally, you should start saving while you're in your prime. If you need to slow down at work as you get older, or experience health or other issues that prevent you from working to your full potential, your retirement savings will continue to work and generate income for you.
If you wait until you're in your mid-30's, 40's or later to start saving for retirement, the likelihood that you'll be able to amass enough cash to carry you through your retirement is slim. Regardless of the state of the economy, you should continue to save for retirement no matter what the economic circumstances are and how much you can put away. Something is always better than nothing.
One caveat: consider creating a broad retirement portfolio that includes a mixture of tax-deferred and taxed assets. One thing you'll want to avoid is being completely dependent on tax-deferred retirement assets. If you maintain some portion of retirement assets that are taxed, you'll have more choices available to you if you need to retire early or withdraw the money for some other reason.
Subscribe to:
Post Comments (Atom)
3 comments:
Hello,
My name is Carol. I am a finance webmaster & maintaining some good quality finance related sites & blogs with good PR. I while searching the good finance sites i found your site which will fulfill my requirement. Like as per my experience i do believe that if you want to make your site popular in front of search engine (specially Google) you need to do healthy link exchange like content & Article link exchange. Because this only help you to get high traffic & pr soon.
So, I am giving you the proposal. Will you be my healthy finance content link partner. In return i will also fulfill your requirement with my huge good financial resources.
For any further information please feel free to mail me or just come for free chating with this below mail id....
nancysix00@gmail.com
Waiting for your quick positive response.
Thanks,
Carol.
Dear,
I want to make 1 guest article post in your site, only if you permit me. The post contains 350 words above and totally unique as they will be written by my content writers and the articles will be on the theme of your site.
Please contact me at my mail soon. In return, I will place your links in my finance sites.
regards,
Erica Smith
erica(@)mydebtconsolidationprogram(.)com
Every dark night is followed by a bright sunny day. So, patience and attention is required and things will be fruitful in near future.
cheap life insurance quotes | life insurance uk
Post a Comment