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 a mere pastime.  However, it’s probably safe to say that many of us will have to work for our eggs.

There’s no better time to get serious about retirement than with the New Year in sight.  The best way to start is by making a list of specific goals to work toward your retirement savings dream. 

Texas Society of Certified Public Accountants (TSCPA) immediate-past Chairman James A. Smith says that simple goals such as spending less than you earn or contributing every month to your employer-sponsored retirement plan will help make the difference.

“Set a goal for cutting your monthly expenses by 10 or 15 percent a month and earmark that money for retirement savings,” said Smith. “It’s a simple matter of paying yourself first.”

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.