You probably already on the Meat Packers Nebraska has the largest lottery jackpot in the United States, won last week as well. One winner, when asked what to do with his victory. “I have about four days now retired” His answer did not surprise me, I am sure my reaction would be similar!
What surprised me is that many Americans believe they do not withdraw at will, if you win the lottery. A survey by the Consumer Federation of America shows that 27% of Americans believe their best chance to win $ 500,000 in your life to win a sweepstake or lottery.
Here are five steps that will help you a comfortable retirement:
1. Start early! If you save $ 100 a month more than 18 years ago you would have more than $ 500,000 in 65. The power of compound interest is great, and the sooner you start saving, the greater the benefits.
2. You have a plan. The best way to ensure you have a comfortable retirement is to plan how much you need to retire. You can not reach your goal if you do not know where it goes.
3. Participate in company-sponsored pension plans. Many companies offer appropriate contributions to your 401K or other retirement plan contributions. That is free money – do not miss!
4. Invest in a diversified portfolio of stocks and bonds that allow you to adjust your goals and risk tolerance. Studies show that their investment primarily through the distribution of your assets, do not identify the individual investment objectives, the choices you make.
5. Keeping costs down. Invest in no load, low-cost mutual funds (or other investments). Equivalent to reducing the cost of your portfolio by only 1% to 20% more money in your wallet after 20 years.
Although a large lottery win can not hurt, should the steps above you well on your way to a comfortable retirement send.
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