A Plan for All Seasons
With the demise of pensions, the responsibility of planning for the golden years rests on employees-and it's never too early to start planning.
› Emily Uranga, 28, Orlando
Family: Single. Occupation: Commercial real estate marketing coordinator.
Assets/liabilities: 401(k) and medical insurance through work. Biggest expenses are rent, utilities, medical and auto insurance, a $300-a-month car payment and gas for a 40-mile-a-day commute.
Retirement Planning Advice
Larry Colby, senior vice president/ Florida statewide sales and marketing, Northern Trust, Miami
"Retirement is now becoming more each person's own responsibility. Make sure that you are putting the maximum contribution possible into your 401(k) plan. Saving between 10% and 20% of your pretax income at this age is ideal. Make sure you are active in managing your 401(k). It is best to follow a diversified approach, investing across different asset classes, in order to lower your overall risk. Consider consulting a financial planner who can help you develop a budget and a comprehensive savings plan."
› Build sound credit history by opening a few accounts and then paying them off.
› Put three to six months' worth of expenses in a money market or savings account as a rainy-day fund.
› Establish a systematic investment plan, depositing money on a regular, fixed basis