Funding Pensions

As you’re saving, you’ll also want to put money into retirement accounts.  Even if you don’t have all your liquid reserves filled up, it’s good to start socking money into retirement accounts as soon as you get your first “real” job.  The earlier you start saving for retirement, the more the money can grow over your lifetime. 


If your employer has a retirement plan, that’s a good place to start with your retirement savings.  Putting at least some of the money into a tax deferred plan is a great way to save on current income taxes as well as put money toward your future.  If your employer doesn’t have a retirement plan, you can put money into an individual retirement account, usually called an IRA.  Whether you put money into a Roth IRA or a Roth 401k is going to involve some more in depth analysis of your situation. 


No matter how long you plan on working, you should give serious thought to the advantages of putting money into retirement accounts.


Fiscal Fitness

There are some basics concepts that just about everyone should live with in terms of the finances.  These ideas as I’ll put them forth here are part of the philosophy of the Alliance of Cambridge Advisors.  (If you’re looking for an ethical capable financial advisor in your area, is a great place to look.) 

The Five Fundamentals of Fiscal Fitness are:

         Saving 10%

         Sufficient Liquidity

         Fund Pensions

         Having a Right Size House

         Controlling Consumer Debt

Over the next few postings, I’ll give you my version of these concepts and how the average person can apply them in their life.