Five Steps To A Comfy Retirement

Five Steps To A Comfy Retirement

Five Steps to​ a​ Comfy Retirement
You’ve probably heard about the Nebraska meatpackers who won the largest lottery jackpot in​ the United States last week .​
One winner replied I’ve been retired for about four days now when asked what he would do with his winnings .​
His response did not surprise me; I’m sure my reaction would be similar!
What does surprise me is​ that many Americans believe that they cannot retire comfortably unless they win the lottery .​
a​ survey by the Consumer Federation of​ America shows that 27% of​ Americans believe that their best chance to​ gain $500,000 in​ their lifetime is​ to​ win a​ sweepstakes or​ lottery.
Fortunately, building a​ comfortable retirement nest egg is​ easier than you think .​
Here are five steps to​ help you build a​ comfortable retirement:
1 .​
Start early! If you started saving $100 a​ month beginning at​ age 18, you would have over $500,000 by age 65 .​
The power of​ compounding is​ great, and the earlier you start saving, the greater the benefit.

2 .​
Have a​ plan .​
The best way to​ ensure that you will have a​ comfortable retirement is​ to​ plan how much you will need to​ retire .​
You can’t reach your destination if​ you don’t know where you’re going .​
3 .​
Participate in​ company sponsored retirement plans .​
Many companies offer matching contributions to​ your 401K or​ other retirement plan contributions .​
This is​ free money – take it!
4 .​
Invest in​ a​ diversified portfolio of​ stocks and bonds, that fits your goals and risk tolerance .​
Studies show that your investment return is​ determined primarily by the allocation of​ your assets, not the individual investment selections you make .​

5 .​
Keep your costs down .​
Invest in​ no-load, low cost mutual funds (or other investments) .​
Lowering the expenses in​ your portfolio by just 1% can equate to​ 20% more money in​ your portfolio after 20 years .​
Although winning a​ large lottery certainly can’t hurt, following the steps above should send you well on your way to​ a​ comfortable retirement.

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