How to start saving for retirement - FOX13 News, WHBQ FOX 13

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>>

  • OKCupid, Facebook not alone in studying consumers

    OKCupid, Facebook not alone in studying consumers

    Tuesday, July 29 2014 4:51 PM EDT2014-07-29 20:51:44 GMT
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
  • New York's microbrew industry growing

    New York's microbrew industry growing

    Monday, July 28 2014 8:39 PM EDT2014-07-29 00:39:52 GMT
    Local and small beer brewing companies have something to toast. The Brewers Association says microbrew sales grew in the first half of this year; up 18 percent over the same period last year. This comes at a time when overall domestic beer consumption is flat.Ethan Long, one of the owners of the Rockaway Brewing Company in Long Island City, started brewing beer two years ago.
    Local and small beer brewing companies have something to toast. The Brewers Association says microbrew sales grew in the first half of this year; up 18 percent over the same period last year. This comes at a time when overall domestic beer consumption is flat.Ethan Long, one of the owners of the Rockaway Brewing Company in Long Island City, started brewing beer two years ago.
  • Maryland casino to interview workers from closing Atlantic City casinos

    Md. casino eyes workers from closing Atlantic City casinos

    Friday, July 25 2014 4:32 PM EDT2014-07-25 20:32:23 GMT
    AP photoAP photo
    A Maryland casino is looking to hire some of the soon-to-be-jobless Atlantic City casino workers. Maryland Live! is holding job fairs next week at the Sheraton hotel across from the Atlantic City Convention Center. The Hanover, Maryland casino held a similar recruitment effort in January when The Atlantic Club shut down.
    A Maryland casino is looking to hire some of the soon-to-be-jobless Atlantic City casino workers. Maryland Live! is holding job fairs next week at the Sheraton hotel across from the Atlantic City Convention Center. The Hanover, Maryland casino held a similar recruitment effort in January when The Atlantic Club shut down.
Powered by WorldNow

WHBQ-TV | Fox 13
485 S. Highland St.
Memphis, TN 38111

Main Station: (901) 320-1313
Newsroom: (901) 320-1340

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