Make Your Money Go Farther

Did you know that there are ways to maximize what you are already saving for retirement?  Check out the below methods and make sure you are using them to get the most bang from your retirement savings bucks! 

• Save “before tax” dollars through deferred comp (also known as 457(b)).  Ask your employer if they offer one.  Learn more...

• Set up an automatic payroll deduction for retirement savings.  This calculator from 360 Degrees of Financial Literacy shows the impact on your take home pay if you automate contributions to your 401(k) (requires Java).  Pay yourself now, you'll thank yourself later!  Learn more...

• If your company offers a pension program, make sure you are aware of the “vesting” period (Vesting is when you qualify for pension benefits).   If you leave a company before the vesting period is up, you generally lose your right to claim any defined benefit pension payments. 

• Use the catch-up rules to save more. In your 60s, just as when you were in your 50s, you can still contribute an additional "catch-up" amount to your IRA and your 401(k). For IRAs, this means you can contribute $6,000 ($1,000 above the standard limit) in 2011; for 401(k)s, you can put in $22,000, a full $5,550 more than the standard limit in 2010.

Be sure to take advantage of any matching funds offered by your employer for your retirement plan—that’s free money you can’t afford not to cash in on.  Learn more...