Message Font: Serif | Sans-Serif
No. of Recommendations: 4
1) Know what you own. Take an inventory of your accounts, how much you've saved and how much you owe.

2) Know what you need. Make a budget and allocate your paycheck so that a specified amount goes to savings.

3) Develop a Plan. Write down your savings and spending goals so you have a record of what you promised yourself.

4) Establish an Emergency Fund. This cash fund should cover at least 6 months living expenses so you are not tempted/forced to dip into retirement savings in case of the unexpected.

5) Manage Spending and Debt. Look into refinancing loans and shopping around insurance to generate cash to pay off credit card debt, and limit future purchases to what you need.

6) Contribute, max out and catch up. Make sure you are participating in your employer's retirement savings plan at least enough to get any company matching contributions.

7) Stay on track. Make sure your investments are diversified and your asset allocations reflect your goals. Rebalance if necessary.

8) Assess Your Risks. Becareful to not underestimate longer life spans, neglect to plan for healthcare, fail to account for inflation, be overly risk averse or risk inclined, or drawing down assets too rapidly.

9) Identify your income. Create an income strategy to cover retirement expenses being as conservative as possible.

Who wishes everyone a happy new year...
Print the post  


TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.