How to start saving for retirement - DC News FOX 5 DC WTTG

How to start saving for retirement

Posted: Updated:
MYFOXNY.COM -

Are you saving (enough) for your retirement? Chances are you aren't. Jobs aren't secure, pensions are being eliminated, and people are living longer. That means you have to take charge, now more than ever, in planning for your future.

In fact, you really need to start early to be able to save enough for retirement. But even if you are already older, that doesn't mean you should just throw your hands in the air and give up before you start.

Lauren Lyons Cole, a personal finance expert and certified financial planner, came to Fox 5 News to offer some basic tips to get you started.

"We've got so many competing financial priorities and that's just the realty, so retirement often gets placed on the back burner for a lot of Americans," Lyons Cole said. "We've got to bring it up to the front of our minds and make sure that we're focusing on that just a little bit every year.

1. You should aim to save one time your annual salary in your 30s, three times your salary by the time you're in your 40s, and five times by your 50s. You are aiming to save eight times your peak annual salary by the time you retire.

2. If your company offers a 401(K), get in on it now and make sure to invest enough to maximize your company's contribution because that is free money. For example, if your company matches 50 cents to your dollar up to 3 percent of your annual salary, you should invest 6 percent to get the company's full match. Don't leave that money on the table.

3. For many, a Roth IRA is a really good option for saving for retirement. (Make sure to check income restrictions.) You can contribute up to $5,500 per year to a Roth IRA, and you actually have until April 15, 2014, to contribute toward your 2013 allotment.

4. The sooner you start saving, the better, and the more you can afford to save the better.

Click here to read more of Lyons Cole's money tips.

  • Your MoneyMore>>

  • Latest wedding trends and tips

    Latest wedding trends and tips

    Wednesday, July 23 2014 10:28 PM EDT2014-07-24 02:28:57 GMT
    Summer is wedding season. Christal Young reports on some recent wedding trends. Kellee Khalil, the founder of a wedding search engine Lover.ly, gives her take on the trends and also shares some tips.
    Summer is wedding season. Christal Young reports on some recent wedding trends. Kellee Khalil, the founder of a wedding search engine Lover.ly, gives her take on the trends and also shares some tips.
  • The future of technology

    The future of technology

    Wednesday, July 23 2014 7:01 PM EDT2014-07-23 23:01:39 GMT
    For New Yorkers fed up with the nightmare otherwise known as traffic, a futuristic answer may be closer than you think: driverless cars.Gray Scott is a futurist with seriouswonder.com. He and his colleagues track the future of technology. He says driverless cars will be a reality.After launching Google Glass just months ago, Google is about to take vision innovation a step further.
    For New Yorkers fed up with the nightmare otherwise known as traffic, a futuristic answer may be closer than you think: driverless cars.Gray Scott is a futurist with seriouswonder.com. He and his colleagues track the future of technology. He says driverless cars will be a reality.After launching Google Glass just months ago, Google is about to take vision innovation a step further.
  • Puerto Rico's economic woes worry bondholders

    Puerto Rico's economic woes worry bondholders

    Wednesday, July 23 2014 6:41 PM EDT2014-07-23 22:41:09 GMT
    Puerto Rico just balanced its first budget in more than a decade. Sales taxes are up. But optimism remains low when it comes to those making financial investments in the commonwealth. Maglan Capital hedge fund managers David Tawil and Steven Azarbad seem to think Puerto Rico itself is not in any imminent financial danger, just its major utility companies. So why is this news to you? The simple answer: Puerto Rico is a major player when it comes to what Wall Street investors are interested in.
    Puerto Rico just balanced its first budget in more than a decade. Sales taxes are up. But optimism remains low when it comes to those making financial investments in the commonwealth. Maglan Capital hedge fund managers David Tawil and Steven Azarbad seem to think Puerto Rico itself is not in any imminent financial danger, just its major utility companies. So why is this news to you? The simple answer: Puerto Rico is a major player when it comes to what Wall Street investors are interested in.
Powered by WorldNow

WTTG FOX 5 & myfoxdc
5151 Wisconsin Ave. NW
Washington, DC 20016
Main Number: (202) 244-5151
Newsroom: (202) 895-3000
fox5tips@wttg.com

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices