Save to Enjoy Your Golden Years
Texas CPAs Offer Advice on How to Build a Retirement Nest Egg
Wouldn’t it be nice if French hens laid golden eggs? Saving for retirement would be so easy. However, it’s safe to say that many of us will have to work for our (nest) eggs.
It’s never too early to get serious about retirement especially with the New Year in sight. The best way to start is by making a list of specific goals to work toward in order to secure your retirement savings dream.
Texas Society of Certified Public Accountants (TSCPA) Chairman, Kym Anderson, says that simple goals such as spending less than you earn or contributing every month to your employer-sponsored retirement plan, personal IRA or Roth IRA, will help make an indelible difference.
“Set a goal for cutting your monthly expenses each a month and earmark that money for retirement savings,” said Anderson. “It’s a simple matter of paying yourself first and then address bills and payments.”
Texas CPAs also recommend paying off your credit card balance. While this may seem counter-productive, it’s difficult to save for retirement when you’re paying more in interest on your credit card balance than you earn on your retirement investments.
Unless you can come up with a plan that allows you to reduce your debt and save for retirement at the same time, it typically makes sense to pay off your credit card debt first. Once out of credit card debt, stay out. Avoid charging what you cannot pay off each month.
According to Consumer Reports, Americans currently owe $917 billion on revolving credit lines and $69 billion of it is past due.