Sunday, August 3, 2008

102 Personal Finance Tips Your Professor Never Taught You (Part 8)

Retirement

79. Maximize your 401 (k). If your employer offers employer, you must configure your 401 (k) contribution at least that amount.
80. Play the game of the IRA smart. Max on your 401 (k) first, second your Roth IRA, then your traditional IRA.
81. Increase your 401 (k) contribution. Especially when you get an increase. Some employers even give you the opportunity to have your contributions automatically withdrawn from your salary.
82. Do not buy shares in the company for which you work. It is the opposite of diversification. What happens if the stock tanks, and you lose your job and pension because of the reduction?
83. Do not be afraid of stocks. More than two-thirds of 401 (k) money is in low-yielding bonds. Especially if you're still young, invest in shares. In the long term, they perform the best.
84. Sign up for Medicare. Do not forget to sign up for Medicare before turning 65, even if you have not yet retired.
85. Plan. Use the Social Security Retirement Planning to ensure that your retirement goes smoothly.