Articles - Archived Expert Advice

Saving for Retirement

I've worked hard over the years to save for retirement by putting money into my employer-sponsored plan. But with today's economy and the way the plan is performing, I'm afraid I'll never have enough to retire. Is there anything else I can do?

It's great that you're putting money away for retirement! Someday you won't be working and you need to be prepared for that loss of income. The first thing to keep in mind is not to panic. Fears and other emotions often cause us to make poor choices rather than educated decisions.

Stay focused on your long-term goals and needs. To meet these, investors often favor portfolios that contain stocks. These have the ability to provide growth and protect against the effects of inflation. Yes, the stock market has its ups and downs, but since 1926, the average stock market return has been 10 percent. That can have quite a positive effect on your retirement plan.

As long as you're able, continue contributing to your retirement plan. Consistently saving now will add up significantly later. A look at your budget will help determine if you're living within your means now, and also if you can make some changes to save more money for later.

Finally, make sure the investments in your retirement account are appropriate for your goals, needs and risk tolerance. A portfolio that is well diversified with stocks, bonds and cash will perform stronger over time than one that is not. The key is to determine the appropriate mix, and then consider repositioning the mix as retirement nears.