Most working people today are very much aware that the economy is in bad shape. They feel the downside of it even if their own jobs don’t appear to be in jeopardy. However, if you’re lucky enough to keep your job, there are many ways you can put money aside for possible unemployment time ahead. For long term planning, and if you can keep working, you’ll need to put away funds to serve as nest eggs for your retirement years. Some suggestions on making your golden years nest a bit more comfortable. If you can fill your plans by adequate nest eggs, it could help you in your plans. Here are some suggestions:
1. Bank a regular amount of money from your weekly paycheck. In addition to a regularly available traditional bank account, put some of it in interest-bearing IRAs, bonds or other guaranteed investments that earn interest. If you’re already making modest investments, consider increasing the amount you save as you get closer to your retirement years.
2. If your company offers a contributory investment plan, put aside regularly from your pay that’s at least the amount your company will match. The typical plan will match up to three percent, giving you an actual benefit of saving six percent of your salary. Many companies offer three types of matching investments: those earning straight interest, those with moderate investments and those with more volatile investments. To avoid fluctuations in a volatile stock market, the straight interest offer may be the best. Even if your company does not contribute to your investment plan, you’ll find it simpler if you set up regular amounts to be deducted from your weekly paycheck.
3. Invest in real estate. If you’re approaching retirement age and your children are grown up and out, you may have plans to sell your current house and invest in a smaller home or condo. In spite of the fluctuations of the real estate market in recent years, home ownership is still more advantageous than tossing away money every month by renting. You may also decide to retire to a more favorable climate. You should begin buying your new home early, so that it will be partially paid for by the time you’re ready to occupy it.
Building a retirement nest egg, especially in today’s uncertain economy is not an easy task. Keeping a job and paying your bills are difficult enough, without taking part of your income you won’t have for current expenses, and stashing it away for the future. However, as uncertain as the economy is today, you may really need that nest egg if the economy gets even worse in the future.