Money magazine's August issue has some great pieces on retirement. One asks if you are doing the right things to prepare for retirement. Money says you are if you can say "yes" to these four questions:
1. Are you maxing out your 401(k)?
2. Are you keeping tabs on your progress?
3. Are you grabbing every tax break you can?
4. Have you created a safety net?
Here's how I stand on each of these:
1. Yep, I've been maxing mine out for years now.
2. Yes. Every year I review my retirement goal and progress towards it, making any needed adjustments.
3. I'm desperately grabbing every tax break I can. I wish there were more!
4. I do have extra savings as well as life and disability insurance.
The thing that amazes me is that though I'm doing all these things, it still takes a TON of time and discipline to save up what's needed to retire. It's simply such a big number to swallow!!!!
For more on retirement, see these posts:
Unlike certain business entities such as corporations that enjoy a variety of tax breaks, individuals such as ourselves have a much more limited choice of tax deductions. Our choices are mostly limited to 401K's and other tax deferred retirement accounts, but most people don't even take advantage of them! If your company doesn't offer a 401K, at the very least you should fully fund your ROTH orIRA.
-Raymond (MONEY BLUE BOOK)
Posted by: MONEY BLUE BOOK | August 28, 2007 at 04:08 PM