Personal Finance Tip of the Day

The easiest way to begin saving for retirement is through your employer's 401k program. Companies will match the amount that you contribute, up to a certain limit (4% to 6%). The money may appreciate by the combined effect of your bi-weekly contributions, the matching funds provided by your employer, as well as through the growth of your investment choices over a long period of time.

It is important to understand what your financial picture is today, what kind of income will you want to live on in your retirement years, what other sources of income will you have (like social security, pensions, insurance investments, or other after tax investments). It is equally important to know if you will have any large debts, like mortgages, college tuition payments, or student loans, as that will also impact what your expenses will be. With compounding of investment income, reinvesting dividends, company matches, and getting an early start on investing for retirement, it may be easier to reach your retirement goal than you think.