| For many baby boomers retirement is around the | | | | A good retirement savings plan for small business |
| corner. It is amazing how fast the years have gone | | | | owners is a Keough account. This is similar to a 401k. |
| by. In 2007 the oldest baby boomers started | | | | There is a certain amount you can put in each year |
| collecting social security, and in the following eleven | | | | that is tax deductible. |
| years another 77 million are expected to do the | | | | There are other retirement accounts available, too, |
| same.What About Social Security | | | | such as traditional IRAs and the Roth IRA. The Roth |
| Currently there are about 40 million retired people | | | | IRA does not allow for tax deductions when you |
| collecting social security. With another 77 million | | | | make the contributions, but you do not pay taxes on |
| expecting to get their social security payments back | | | | it when you make withdrawals. |
| with interest, that is going to be a tremendous strain | | | | Even if retirement is just a few years away, by |
| on the system. | | | | starting to save today you will have something to |
| Most boomers (and those coming after them) realize | | | | live on. If on your 65th birthday you find that it isn't |
| that they cannot count on social security being | | | | enough to retire on, you can always work a few |
| around long enough for them to collect any of the | | | | more years to build up the retirement fund some |
| money they paid into it. They are hoping that the | | | | more. |
| government repairs the system, but they cannot | | | | How to Make Your Savings Stretch |
| depend on that. | | | | Working part-time after you retire is often a good |
| Retirement Savings Accounts | | | | idea. It provides you with something to do that |
| For this reason it is very important that baby | | | | keeps you involved socially and exercises your mind. |
| boomers and those following behind them start | | | | It will also make your retirement savings last longer. |
| saving for retirement as soon as possible. A 25 year | | | | Another way to make your retirement savings last |
| old who starts setting as little as $100 aside each | | | | longer is to start withdrawing from taxable accounts |
| month will have about $350,000 saved by retirement | | | | and let the tax-advantaged savings accounts |
| age (at 8% interest). In comparison, someone who | | | | compound for as long as possible. |
| starts saving at 40 or 50 years of age would need | | | | Basically, baby boomers need to start planning for |
| to put in a lot more than $100 a month to have | | | | retirement now by having an IRA, 401k, or Keough |
| $350,000 by age 67. | | | | (or a combination of these), and by getting out of |
| It is too late for baby boomers to start saving for | | | | debt now rather than later. The longer you wait to |
| retirement at 21, but it is never too late to begin | | | | pay off credit card debt, car loans, and your house, |
| saving. If your company offers a 401k sign up today. | | | | the harder it will be for you to live on a fixed income |
| If they offer matching contributions, then sign up for | | | | when you reach retirement age. |
| the maximum deduction allowed. | | | | |