Rural Water - Quarter 4, 2017 - 35

FINANCE

How to Start Saving
for Retirement

t

BY JARED M. HOPKINS, CFP®, WEALTH MANAGEMENT ADVISOR, INDIVIDUAL ADVISORY SERVICES, TIAA
to start saving and
investing for your future. Here are easy tips
you can implement now to plan ahead.

Start saving-even a little
Saving even a small amount of your
income on a regular basis can help you
build security. Once you start investing
what you save, each dollar has the
potential to start reaping the rewards
of compounding.
A simple way to start saving is to have
part of your paycheck deposited directly
into your savings account. If you don't have
direct deposit available at work, your bank
may be able to set up automatic transfers
from your checking account into your
savings account.

Pay yourself first
If you have access to a 401(k), 403(b)
or 457 tax-deferred savings plan at work,
you can save for retirement by having a
fixed amount taken out of your pay and
put in your plan. This helps reduce your
current taxable income which also reduces
your current taxes. Neither your pre-tax
contributions nor any of the earnings get
taxed until they are withdrawn.
If your employer matches part of
what you contribute, you should consider
contributing the full amount for the match.
If you don't contribute the full amount,
you're missing out on free money from
your employer.

expenses. If you have to take money out
of the fund, make sure you quickly restore
the balance so you'll have enough cash
available later.

You can choose a mix of investments
based on your goals, your time horizon for
achieving them, the level of return you'd
like to try to get and your tolerance for risk.

Saving and investing
for your goals

IRAs and 529 plans

It's also important to decide what your
financial goals are and to prioritize them.
Then you'll be ready to make decisions
about how to save and invest for each goal.
There are different types of
investments to choose from, including:
1. Cash equivalents: bank savings
accounts, short-term certificates of
deposit, U.S. Treasury bills and money
market funds
2. Fixed income investments: bonds,
bond funds and guaranteed insurance
products like fixed annuities
3. Equities: stocks and stock funds

Workplace savings plans and traditional
and Roth IRAs can be great vehicles
for retirement savings beyond any
contributions to a plan at work. You may
also want to consider how a 529 plan can
be a tax-effective way to save and invest
for your child's college education.
With a Roth 401(k), you voluntarily
contribute post-tax funds to an IRA, thus
not reducing your current taxable income.
However, the Roth plan allows for taxfree growth and distribution, provided the
contributions have been invested for at
least five years and the account owner has
reached age 59½. ●

©ONE PHOTO/SHUTTERSTOCK.COM

The time is now

Start an emergency fund
An emergency fund is a reserve of cash
kept in an easy-to-access account that
you can dip into in the event of a financial
hardship like a job loss.
Aim to have enough cash set aside to
cover at least six months' worth of living
RURAL WATER

35



Table of Contents for the Digital Edition of Rural Water - Quarter 4, 2017

From the President
Moving Forward with Workforce Development
Managing and Working in a Multi-Generational Workforce
Veterans in the Water Industry
New Online Database Provides Misleading Information for Tap Water Customers
WaterPro Rocks Reno
Finance: How to Start Saving for Retirement
Technology: Rural Water District Finds Effective GIS Support
Regulatory Update
A Day in the Life of a Circuit Rider: Rita Clary, Kansas Rural Water Association
Up the Creek: Of Birds and Men
Index to Advertisers/ Advertisers.com
From the CEO
Rural Water - Quarter 4, 2017 - intro
Rural Water - Quarter 4, 2017 - cover1
Rural Water - Quarter 4, 2017 - cover2
Rural Water - Quarter 4, 2017 - 3
Rural Water - Quarter 4, 2017 - 4
Rural Water - Quarter 4, 2017 - 5
Rural Water - Quarter 4, 2017 - 6
Rural Water - Quarter 4, 2017 - 7
Rural Water - Quarter 4, 2017 - 8
Rural Water - Quarter 4, 2017 - 9
Rural Water - Quarter 4, 2017 - 10
Rural Water - Quarter 4, 2017 - From the President
Rural Water - Quarter 4, 2017 - Moving Forward with Workforce Development
Rural Water - Quarter 4, 2017 - 13
Rural Water - Quarter 4, 2017 - 14
Rural Water - Quarter 4, 2017 - 15
Rural Water - Quarter 4, 2017 - Managing and Working in a Multi-Generational Workforce
Rural Water - Quarter 4, 2017 - 17
Rural Water - Quarter 4, 2017 - 18
Rural Water - Quarter 4, 2017 - 19
Rural Water - Quarter 4, 2017 - 20
Rural Water - Quarter 4, 2017 - 21
Rural Water - Quarter 4, 2017 - Veterans in the Water Industry
Rural Water - Quarter 4, 2017 - 23
Rural Water - Quarter 4, 2017 - 24
Rural Water - Quarter 4, 2017 - New Online Database Provides Misleading Information for Tap Water Customers
Rural Water - Quarter 4, 2017 - 26
Rural Water - Quarter 4, 2017 - 27
Rural Water - Quarter 4, 2017 - WaterPro Rocks Reno
Rural Water - Quarter 4, 2017 - 29
Rural Water - Quarter 4, 2017 - 30
Rural Water - Quarter 4, 2017 - 31
Rural Water - Quarter 4, 2017 - 32
Rural Water - Quarter 4, 2017 - 33
Rural Water - Quarter 4, 2017 - 34
Rural Water - Quarter 4, 2017 - Finance: How to Start Saving for Retirement
Rural Water - Quarter 4, 2017 - 36
Rural Water - Quarter 4, 2017 - Technology: Rural Water District Finds Effective GIS Support
Rural Water - Quarter 4, 2017 - 38
Rural Water - Quarter 4, 2017 - 39
Rural Water - Quarter 4, 2017 - 40
Rural Water - Quarter 4, 2017 - Regulatory Update
Rural Water - Quarter 4, 2017 - 42
Rural Water - Quarter 4, 2017 - 43
Rural Water - Quarter 4, 2017 - 44
Rural Water - Quarter 4, 2017 - A Day in the Life of a Circuit Rider: Rita Clary, Kansas Rural Water Association
Rural Water - Quarter 4, 2017 - Up the Creek: Of Birds and Men
Rural Water - Quarter 4, 2017 - 47
Rural Water - Quarter 4, 2017 - Index to Advertisers/ Advertisers.com
Rural Water - Quarter 4, 2017 - 49
Rural Water - Quarter 4, 2017 - From the CEO
Rural Water - Quarter 4, 2017 - cover3
Rural Water - Quarter 4, 2017 - cover4
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