7 Steps to Take When Planning Your Retirement Fund

When you are planning for your retirement fund, you should consider the following:

1. Take full advantage of your company's retirement plan. Find out what your employer's contributions are to the fund. Ask how much you can contribute to the fund. If it is more than what is currently being taken from your pay and you can afford it, increase your contribution.

2. Do not withdraw funds from your retirement fund. When you change jobs and if you have been participating in a plan such as a 401(k), roll the funds over into another account. Do not take the money. Many people do and they find they are not able to replace the money. Also, if you use the money before you are 59 1/2 years old, you will have to pay a penalty and taxes on the money.

3. When you decide to use money for other investments, you should probably seek the advice of a financial advisor. You can find a list of financial advisors in the Yellow Pagesor on the Internet. You should make a list of people to interview and check their reputation. You will also want to know what licenses they hold and what investment companies they work with. You should also ask for references.

4. If you have separate investments from your company pension plan, monitor those investments. Stay in contact with your financial advisor and review all statements relating to your account. You will want to meet with your advisor to determine if your funds are working for you or if a change is needed.

5. You can not rely solely on Social Security funds for your retirement. The economy changes and you will not be able to keep the standard of living you have today. Social Security will provide some monies and some health care. But you may have more out-of-pocket expenses than you realized.

6. If both you and your spouse work, both of you should participate in your company's retirement plan. You should also have insurance in case one of you predeceases the other. If your spouse should pass away and you can continue to work, you may want to invest your spouse's funds so you will have additional income when you retire.

7. Make sure you receive monthly or quarterly statements from your financial advisor. You want to monitor the plan you created with your financial advisor. Just as you want to make sure your investments are working for you, you also want to make sure your plan is heading in the right direction.

Planning for your retirement is serious business. If you fail to plan, you will not be able to meet your needs in the years when you are no longer working.