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Saving for retirement

CPA Jacqueline Modera of EFP Rotenberg discussed three steps you can take to begin saving for retirement Monday on News 8 at Sunrise.
CPA Jacqueline Modera of EFP Rotenberg discussed three steps you can take to begin saving for retirement Monday on News 8 at Sunrise.

Modera said now more responsibility for retirement savings falls on the shoulders of individuals because of fewer pension options being offered by employers and the uncertainty about social security benefits.

The first step Modera said you should take is to set a target for retirement by evaluating your needs and wants.  She said there are many ways to calculate your target retirement portfolio value, but advocated a simple approach anyone can take.  First, try to estimate your anticipated monthly expenses, subtract that from any anticipated income and then multiply that number by 300.  That's about how large your total portfolio will need to be to cover your expenses.

Modera said the next step is to ramp up your savings, using qualified retirement accounts such as an IRA, 401K or 403B.  She said the earlier you begin to invest in your retirement, the greater the potential to build your nest egg faster.  Also, try to increase your contributions when feasible.

The final step Modera discussed was having the ability to make changes.  Know what you can adjust and be willing to make changes she said.  No one can predict their own future or the future of the markets, so flexibility is a must.  If you have a solid foundation from the first two steps, it's a lot easier to make the course corrections as needed to reach your goals.

To learn more about determining your needed retirement income, click here.
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