Investments

Copyright 2006 Kristine McKinley

Bank Of America Investment You've probably heard about the Nebraska meatpackers who won the largest lottery jackpot in the United States last week. One winner replied "I've been retired for about four days now" when asked what he would do with his winnings. His response did not surprise me; I'm sure my reaction would be similar!

In this case, if both husband and wife enter the DV Lottery program for a five year straight period, their chances of winning are almost 15%.

Investment Opportunity What does surprise me is that many Americans believe that they cannot retire comfortably unless they win the lottery. A survey by the Consumer Federation of America shows that 27% of Americans believe that their best chance to gain $500,000 in their lifetime is to win a sweepstakes or lottery.

As soon as the lottery draw has been verified by the official lottery board, we will credit your Lottery24 account with your winnings.

Banc Of America Investment Fortunately, building a comfortable retirement nest egg is easier than you think. Here are five steps to help you build a comfortable retirement:

Finally, do not neglect your regular savings program for your retirement, in favor of saving for college. Saving into tax deferred retirement accounts is usually the best possible investment that you can make. Furthermore, your retirement accounts are ignored in the college financial aid formula. And, if necessary, you can use your retirement savings to pay for college by either withdrawing (without penalty) from your IRA accounts or taking a loan from your 401(k) plan.

Banking Investment 1. Start early! If you started saving $100 a month beginning at age 18, you would have over $500,000 by age 65. The power of compounding is great, and the earlier you start saving, the greater the benefit. The easiest way to get started is to enroll in your company sponsored retirement plan. If your company doesn't offer a retirement plan, signup for automatic withdrawals to a Roth IRA or mutual fund.

Investment Solution Strategic 2. Have a plan. The best way to ensure that you will have a comfortable retirement is to plan how much you will need to retire. Sit down with your family and decide what you'll do when you retire, where you'll live and what your spending needs will be. You can't reach your destination if you don't know where you're going.

Investment Banking Services 3. Participate in company sponsored retirement plans. Many companies offer matching contributions to your 401K or other retirement plan contributions. This is free money - take it!

Bank Investment 4. Invest in a diversified portfolio of stocks and bonds, that fits your goals and risk tolerance. Studies show that your investment return is determined primarily by the allocation of your assets, not the individual investment selections you make.

Alternative Investment 5. Keep your costs down. Invest in no-load, low cost mutual funds (or other investments). Lowering the expenses in your portfolio by just 1% can equate to 20% more money in your portfolio after 20 years.

Online Investment Services Although winning a large lottery certainly can't hurt, following the steps above should send you well on your way to a comfortable retirement.

Accompany Essential Investment Need more help? Contact a fee-only financial planner to help you project your retirement needs and make a plan to retire in comfort.

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Investment Management Solution Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis.
To receive free financial planning tips, worksheets, checklists and more, visit http://www.beacon-advisor.com

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