Welcome to the 401k.org archives.
The content on this site is here purely for historical purposes. As of Spring 2012, PSCA is in the process of updating this website and will be relaunching soon.
For current information on profit sharing, 401(k), 403(b), and other defined contribution retirement plans, please visit PSCA's main website at www.psca.org.
Ten Steps to Smart Saving
1. Take Control
Only you can ensure that you will have enough money saved for your retirement. Your best bet for taking control includes profit-sharing and 401(k) plans.
2. Know What You Will Need
Experts estimate that you will need at least 70% of your pre-retirement income to maintain the same standard of living once you stop working.
3. Start Now
Time is on your side. The sooner you start, the longer your money has to grow. It is never too early to start saving for a secure retirement.
4. Participate in Plans
Employer-sponsored plans like profit-sharing and 401(k) plans are convenient, easy to use, and are among the best retirement savings deals out there.
5. Contribute to the Max
The more money you put in a 401(k) plan, the more you will get out - especially since many companies match part or all of their employees' retirement contributions.
6. Invest Pre-Tax
Saving pre-tax gives you more money to invest. Because taxes take a large bite out of each dollar you earn, you have to save more after-tax dollars to get the same impact as pre-tax saving. PLUS, saving pre-tax lowers your taxable income, which means that you will pay less to the IRS on April 15th.
7. Pay Yourself First
Out of sight, out of mind. You will not miss the money you are saving if it is deposited straight into your 401(k) plan or other another retirement account.
8. Keep Your Hands Off
Do not touch your retirement savings. You will not only avoid tax penalties for using the money early, you will also give your investments more time to grow.
9. Look Long-Term
"Low-risk" investments usually mean low returns and may put your retirement finances in danger down the line. For successful saving, choose investments that will beat inflation over the long haul.
10. Be Flexible
As the years go by, life changes. So should your retirement savings strategy. Review it annually to ensure it still meets your needs as retirement approaches.