How Can I Insure a Secure Future?

1. Start now. The earlier you start, the more tax deferral and compounding of interest can work for you and the greater the chance that your variable investments can grow.

2. Save regularly. The old adage “pay yourself first” applies here. As a rule of thumb, you will need to save at least 10 percent of your income each year - above what you expect to receive from Social Security and your employer’s basic retirement plan - to have enough funds for retirement.

3. Don’t touch your retirement savings. Whatever the temptation, don’t cash in your retirement accumulations if you change jobs. Even if you put the money back later, it will be very hard - if not impossible - to match what you could have accumulated had you left your funds intact.

4. Invest - don’t just save - for retirement. “Safe” savings products, such as money market accounts, may preserve your principal and provide some interest, but their returns have historically barely kept up with inflation. To amass sufficient funds for retirement, you will need to invest at least some of your accumulations in equities. Although past performance does not guarantee future results, over time equities have historically produced rates of return way above inflation.

5. Educate yourself in financial matters. For general financial information, there’s a whole host of newspapers, magazines, newsletters, and books that can help you in your planning. Talk to relatives and friends about their financial plans and experiences.

6. Be a role model for your children and grandchildren. Show them you are an equal partner in managing your family’s finances. Take them to your bank and open a savings account for them. Encourage schools to teach economic fundamentals to students of all ages.

We all want assurance that our future will be financially secure. Because women live longer and usually earn less than men, their concerns are even more urgent. But, regardless of your current situation or age, it’s never too early -or too late- to plan for the future.

If you follow your own way and invest for the future, no matter how hard it is for you today, you will gain a sense of security knowing that, maybe for the first time in your entire life, you have done something for yourself. In addition, on the topic of doing for yourself, since you have to do the things you have to do, be wise enough to do some of the things you want to do.

THOUGHT OF THE WEEK

“Everything we have is really loaned to us as we cannot take anything with us when we pass. If we have no use for something now, we should give it to someone else who can use it now.”