Plan Ahead - Start Saving Your Money

    Have you ever thought about how you plan to finance your retirement years?

    Many people don't have a clear idea of how much money they actually have, so it's hard to know how much they might be able to count on when they retire. Finding out what part of today's money can go toward retirement simply means adding up the value of all your current assets.  In this case, "assets" are cash, investments, and anything of value you can exchange for cash, like your house, savings bonds, or even fine jewelry. This figure will be your first important clue.

Recording these amounts could be a pleasant surprise. You don't want to count emergency money and savings for your children's education or a big trip - only money that you are not going to touch for at least 10 to 15 years. For Pre-Retirement planning  don't include any future Social Security benefits and guaranteed pensions because these items are future income, rather than current assets.  Any balances in work-related retirement plans, like 401(k) plans, is counted, however, and you will want to include amounts from current and former jobs. In fact, these just may be at the top of your list of today's assets.

You May Have More Than You Think!

Tracking your money in retirement plans should be fairly easy. If you didn't roll over your retirement plan balance when you changed jobs into a new retirement plan account or into an IRA, or if you didn't take your account balance as cash, you may discover some forgotten retirement assets you have. This is a good time to think about keeping your money with fewer, rather than more, quality financial institutions so it is easier to manage.

Recording current and old retirement account amounts on the Pre-Retirement Savings/Assets Worksheet, is important for a couple of reasons. First, locating an old account could take time. The longer it's "lost," the harder it will be to find. Second, understanding your current financial standing should automatically start you thinking about how to make your money grow.

Start Planning Today!

     Remember you're facing a retirement that's probably going to be longer than your parents' and will involve more uncertainties. This new kind of retirement probably means there are many American workers worrying about, instead of planning for, the future.

     You can make the choice to stop worrying and start figuring. Not only will you come up with facts to work with, the chances are good you might change the way you save. The 2008 EBRI survey also found that 44 percent of people who tried to figure out their financial futures ended up changing their retirement savings plans.

If you are a married woman: In preparing for retirement, women face the very real possibility of spending part of their retirement years without the support of a husband - most likely through widowhood. The loss of a spouse can sometimes mean the loss or reduction of benefits that can place women in financial jeopardy. For that reason, women will need to focus on their financial resources as a single person as well as half of a couple. 

    Consider what happens to your Social Security and to retirement benefits if your spouse dies or you divorce. Know what assets you can count on. Check Social Security benefit documents, retirement plan documents, and wills. Remember that wills are important, but they may not provide the protection desired. Depending on the way assets are titled or the terms of a will, the money women believe they can count on may not be passed to the surviving spouse.

   Whatever stage in your career you find yourself in - its never too early to focus on adding to your nest egg and investing it wisely. Save Your Hard earned money and investing for a secure financial future.  Check out these tips for improving your financial fitness.