Stay on Pace for a Better Retirement Nest Egg

(03/19/2010) Training for a marathon may be physically different from building a nest egg, but the general ideas are very similar.  Use these training tips to successfully build a retirement nest egg.

Catch Mistakes Early and Adjust As Needed
In a race, if something goes wrong or hurts, it is imperative to make the appropriate changes as soon as possible.  This is a good idea to remember when executing a savings plan.  Don’t settle for earning a painfully low interest rate on your savings account.  Shop for the best rates on your savings product of choice using online rate comparison tables.  Being flexible and willing to make changes early can pay off big dividends in the end.

Be Consistent
When training for a race, it can be easy to give up and let small setbacks deter you from achieving your goal.  However, remembering to see the big picture is important in running and saving.  In running, this would mean getting your workouts done and running regularly.  In your savings plan, this means contributing regularly.  Scheduling automatic deposits or transfers from your checking to your savings account can help you guarantee regular contributions are made.

Make Large Contributions When You Can
In marathon training, long runs are key in getting across the finish line.  Likewise, in building a nest egg, occasional large contributions are important to make as well.  A tax refund, year-end bonus, or monetary gift can all be welcomed lump sum additions to your savings.

With these tools in hand, building your retirement fund is within reach.  For the best results, start early.  For most, the race to retirement is no sprint; it takes years of dedication and consistency, but is well worth it when crossing that finish line!

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