Top 10 Ways to Beat the Clock
and Prepare for Retirement

By Art Bernaducci

Investing in your own business makes sense. Many businesses achieve significant growth each year. However, when you consider that many small businesses fold every year, it becomes clear that banking your retirement solely on the success of your business might not be the best idea. There is no guarantee that your business will continue to grow or even maintain its current value. If your business is worth less than you were counting on at the time you planned to retire, you could be forced to continue working or sell it for less than what you were expecting.

Know Your Retirement Needs

Retirement is expensive. Experts estimate that you’ll need about 70 percent of your pre-retirement income – lower earners, 90 percent or more – to maintain your standard of living when you stop working. (SSA)

Find Out About Your Social Security Benefits

Social Security pays the average retiree about 40 percent of pre-retirement earnings. Call the Social Security Administration at 1-800-772-1213 for a free Personal Earnings and Benefit Estimate Statement (PEBES). (SSA)

Put Money into an Individual Retirement Account

You can put up to $5,000 a year into an Individual Retirement Account (IRA) and delay paying taxes on investment earnings until retirement age. If you’re 50 years or older, you may contribute an additional $500 per tax year. If you don’t have a retirement plan (or are in a plan and earn less than a certain amount), you can also take a tax deduction* for your IRA contributions.

Contribute to a Tax-Sheltered Savings Plan

If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy. Over time, deferral of taxes and compounding of interest make a big difference in the amount of money you will accumulate.

Take Advantage of Employer’s Pension or Profit-Sharing Plan

If your employer offers a pension plan, check to see what your benefit is worth. Most employers will provide an individual benefit statement if you request one.

Ask Your Employer to Start a Plan

If your employer doesn’t offer a retirement plan, suggest that he/she start one. Simplified plans can be set up by certain employers. For information on simplified employee pensions, order Internal Revenue Service Publication 590 by calling 1-800-829-3676.

Don’t Touch Your Savings

Don’t dip into your retirement savings. You’ll lose principal and interest, and you may lose tax benefits. If you change jobs, roll over your savings directly into an IRA or your new employer’s retirement plan.

Start Now, Set Goals and Stick to Them

Start early. The sooner you start saving, the more time your money has to grow. Make retirement saving a high priority. Devise a plan, stick to it, and set goals for yourself. Remember, it’s never too late to start.

Learn Basic Investment Principles

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you’ll have saved at retirement. Know how your pension or savings plan is invested. Financial security and knowledge go hand-in-hand.

Ask Questions

Talk to your employer, your credit union or a financial advisor. Ask questions and make sure the answers make sense to you. Get practical advice and act now.

Get more free information at www.ArtBernaducci.com or by calling (800) 433-3138.
Securities and Advisory Services offered through Ameritas Investment Corp (AIC), Member FINRA/SIPC. and Platinum Financial Partners, LLC are not affiliated.