Monday, January 26, 2009

Avoid these Retirement Planning Mistakes


Post by: Dana Sunderlin

The turmoil in the economy today is enough to make us want to avoid putting money away for retirement for fear of needing it now. That's natural. Most Americans feel they need to have all of their money available now.

We often are scared of locking up our money, or we have the attitude that putting away even a little won't be enough to build a decent retirement - so why bother? But those who do let go now and invest for the future understand that a little can go a long way, thanks to the power of compounding. For example, saving $100 a month for 10 years at 4 percent interest will build to almost $15,000.

For longer time frames, more monthly savings and higher returns, that not only can build up a retirement fund, but may create a longer and happier life. Research in the Journal of Financial Service Professionals found evidence that financial strain in retirees is accompanied by depression and negative feelings, while financial security exudes improved health and contentment.

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