How To Increase Your Retirement Nest Egg!
By Chris Borg
New Year's day has come and gone. There is a very good chance that your New Year's resolutions have also come and gone. But have no fear because it is never too early or too late to make a resolution that will affect your financial freedom for the rest of your life. I am referring to the #1 tip for increasing your retirement nest egg. That tip (or resolution if you will), will add more money to your retirement nest egg than probably any other single thing that you can do to protect your golden years. In a word, the tip is to AUTOMATE.
So what exactly does the word automate have to do with your financial freedom and your retirement nest egg? The answer of course may be obvious to some people, but not so obvious to others. Therefore, it is very important that if you are in the latter group, that you get this principle down right!
We all have good intentions with regard to saving and investing for our retirement. The problem comes about because "life happens". By that I mean, life is constantly throwing hurdles at you. Your ability to jump these hurdles, is what determines how successful you are at saving for retirement. You know the routine. One month your car breaks down, the next month your home boiler goes on the fritz, and the following month, your child winds up in the emergency room following a baseball game. In other words, "life happens". Anything and everything will get in the way of your ability to save. So what ultimately happens, is that the month goes by and life events will eat away at your paycheck until there is nothing left to save.
Those readers with a keen eye, know where this is going. So let me spell it out for the remainder of the crowd who need a little bit more hand holding. Whatever means that you are currently employing to save for your retirement nest egg, NEEDS TO BE AUTOMATED! Some of you have automatic withdrawals from your paycheck, to deposit into your retirement accounts. Others do not. Why not?
Get on the bandwagon and automate it. Having automatic withdrawals from your paycheck placed into your retirement account, accomplishes several things. First, the money comes out of your paycheck before taxes and is allowed to compound on a tax-deferred basis. Second, it is painless to you because you never see the money. Third, it is hassle free, meaning you do not have to write a check or make a deposit into any retirement account, such as a 401k or I.R.A. or Roth I.R.A. Fourth, and most important, this automatic depositing feature will become the #1 tip for increasing your retirement nest egg. Do it today to increase the chances of your financial freedom tomorrow!
So what exactly does the word automate have to do with your financial freedom and your retirement nest egg? The answer of course may be obvious to some people, but not so obvious to others. Therefore, it is very important that if you are in the latter group, that you get this principle down right!
We all have good intentions with regard to saving and investing for our retirement. The problem comes about because "life happens". By that I mean, life is constantly throwing hurdles at you. Your ability to jump these hurdles, is what determines how successful you are at saving for retirement. You know the routine. One month your car breaks down, the next month your home boiler goes on the fritz, and the following month, your child winds up in the emergency room following a baseball game. In other words, "life happens". Anything and everything will get in the way of your ability to save. So what ultimately happens, is that the month goes by and life events will eat away at your paycheck until there is nothing left to save.
Those readers with a keen eye, know where this is going. So let me spell it out for the remainder of the crowd who need a little bit more hand holding. Whatever means that you are currently employing to save for your retirement nest egg, NEEDS TO BE AUTOMATED! Some of you have automatic withdrawals from your paycheck, to deposit into your retirement accounts. Others do not. Why not?
Get on the bandwagon and automate it. Having automatic withdrawals from your paycheck placed into your retirement account, accomplishes several things. First, the money comes out of your paycheck before taxes and is allowed to compound on a tax-deferred basis. Second, it is painless to you because you never see the money. Third, it is hassle free, meaning you do not have to write a check or make a deposit into any retirement account, such as a 401k or I.R.A. or Roth I.R.A. Fourth, and most important, this automatic depositing feature will become the #1 tip for increasing your retirement nest egg. Do it today to increase the chances of your financial freedom tomorrow!
Chris Borg is a practicing pharmacist and financial adviser who writes about health care and investing. Chris's latest website on financial freedom is at RatraceBgone, where Chris provides financial tips such as the 9 steps to financial freedom: 9 Steps To Financial Freedom
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