Perhaps it is fear that keeps us from taking the steps to begin the process: the fear that we simply cannot handle it.
This really is the key! First know that you can handle it and second know that it is a process and not an event.
Regardless of what decisions you make at the beginning, they can all be changed.
There is no drastic, permanent blunder you can make at the beginning ~ except failing to start at all.
Would it surprise you to know the one variable for a successfully planned retirement is not investment returns? That is correct.
The one variable essential for a successful retirement is regular savings.
And, yes, that IS entirely within your control.
Based on that one variable I recently saw a study that suggested that only one in five employees are saving enough to retire at age 65.
"Low" investment returns will not keep you from retirement.
Insufficient savings will.
Consider the tenfold power of a 5% return on $200,000 vs.
a 100% return on $1,000! One of the habits of the wealthy is the simple idea that they deserve to pay themselves first.
You too can easily adopt this attitude.
Your company has provided the perfect platform for you ~ the 401k Plan.
You can reduce your current tax liability by contributing to your plan; and, quite possibly, your company will add to your contribution! Who would not like that? The next step is to accept personal responsibility not only for saving but for investing your retirement assets as well.
The shift from employers being responsible for saving and investing for your retirement directly to you, yourself, being responsible is the reality of the 401k Plan.
To deny that fact simply pushes your expected retirement at age 65 further out.
How would you feel about retiring at age 75...
or older?