How Not To Fall Short For Retirement (NAPSA)—While a turbulent economy may tempt you to stop investing in your retirement, per- sonal savings have never been more important. “With the potential changes in Social Security as we know it today and the decline of pension plans, people will need to rely on their personal savings more than ever,” said Mark Konen, president of Insurance and Retirement Solutions for Lincoln Financial Group, www.lincolnfinancial.com. “It’s so important for people not to be discouraged by the state of the economy today and continue to save for retirement.” Although retirement may seem far off, it is important to continue saving to make sure you will not outlive your income in retirement. Here are five tips that can help you not fall short for retirement: Get a Financial Checkup—Just like your yearly physical, you should meet with your retirement consultant or financial advisor once a year to do an annual checkup of your retirement savings plan. An easy way to rememberis to schedule it around your birthday or annual physical. The financial checkup will ensure that your asset allocation is still consistent with your risk tolerance and retirementgoals. Also, reallocate as needed, keeping in mind that investments It’s important to considerthe “big picture” when you are young and envision the kind of retirement you wantto have after you are 65. Yearly financial checkups can help. usually become more conservative as you nearretirement. Stay Invested—Don’t panic and let short-term declines and market volatility influence your retirement-planning decisions, causing you to act abruptly and make unwise asset reallocation decisions. If you do, you maylose sight of the bigger picture and ultimately affect your long-term financial goals. Look at the Big Picture— Keep in mind that short-term declines and market volatility are a natural part of the investing cycle and should not influence your participation in a retirement savings plan. As an investor, you will experience the market’s ups and downs but it is important to stay the course and continueto invest. Contribute More Than the Bare Minimum—Never bedissuaded by the fact that your employer only matches up to a certain dollar amount or percent. This should not deter you from saving more because the more you contribute, the more you save in taxes withheld from your paycheck. You will also reap the benefits of tax-deferred growth on your contributions. * Don’t Be Tempted to Borrow Against Your Plan—Many people may be tempted to borrow against their retirement plan in a down market. By doing so, savers may miss out on potential investment growth opportunities when the market recovers. In addition to these tips, there are many benefits to saving in your company employer-sponsored plan, including company matches and tax benefits. Also, many retirement service providers offer innovative solutions to help you achieve your retirement income needsand goals. If you are enrolled in your company’s 401(k) or 403(b) retirement plan, rememberto stay the course and follow the above-mentioned tips. If you stay invested and continue to increase your retirement plan contributions consistently over time, you will be better positioned to enjoy the quality of life that you are used to well into your retirement.
