Your Financial Future in Focus
Concentrating on these key influencers can help increase your nest egg
Are you ready for retirement? According to Gallup's annual Economy and Personal Finance Poll, 59% of Americans are worried they won't have enough money for retirement. Even if you are confident in your financial plan, the ever-changing economy, life's developments as well as career path fluctuations all demand that you make regular adjustments to help today's dollars last through tomorrow's retirement.
Consider these factors and strategies to help you save smarter and live more confidently in retirement:
Why it matters: You've guaranteed to pay yourself each month — no excuses. The amount should increase as your earnings do. "Putting a little more into savings can make a big difference in the long run," Basting says. "Compounding is money earning money, like a snowball rolling down a hill."
How to do it: Basting suggests an initial savings goal of 5% of your gross income, and working up to 10% as quickly as possible. If you earn more than $120,000, you may consider aiming higher with a goal of saving 20%.
Take advantage of any employer-defined contribution plans such as a 401(k). It's an easy way to automate savings each time you receive a paycheck, plus it grows income-tax- deferred. If your employer does not offer a retirement plan, consider a Traditional or Roth IRA with automatic monthly contributions.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully. 2015/03/0905
Securities are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.
A 10% tax penalty may apply for withdrawals from tax-qualified products
Diversification and Automatic investment plans do not assure a profit or protect against loss.
Neither State Farm nor its agents provide investment, tax, or legal advice.