How to Plan for Retirement

Post by: Jeffrey Kam

The most important part of retirement planning is saving. Saving is the beginning of every retirement planning; saving early is the key Due to compound interest, the money you safe now will have an opportunity to grow into a larger amount. Most of the employees will have a 401(K) saving plan available during work career. The money that is input into this account will fine that cash will grow faster because of tax deferred and automatic savings. Also with a penalty of early withdrawals, it will grow without paying income taxes. By doing this, you will not allow to have any tax deductions for any input on income.

Last year was a very bad year for many investors. Many people decide to drop their long-term investments, and sold them all at a very low points, as a result the market had a large short term loss. People's long-term strategies were dropped due to the drop of the market, investors should review the reasons why they invest in those stocks rather than sudden emotions affects to make this decisions. This also applies to retirement planning, do not let your emotions and give up what you have been saving, or an opportunity for your money to grow.

http://retireplan.about.com/od/howtobegin/a/new-year
http://retireplan.about.com/od/howtobegin/a/start
http://money.cnn.com/retirement/