If you’ve been carefully building up your retirement savings, the daily headlines featured on the news and in the papers may make you feel as though you should stop contributing to your retirement fund.  After all, with an estimated loss of $500 billion to $2 trillion from retirement accounts in the United States alone, many individuals feel that any contributions made towards their 401k or investment strategies is money lost!

However, refusing to contribute to your retirement savings is exactly what you should not during this time! 

Despite the bear market, your retirement plans still need to remain a top priority, since your savings are greatly affected by time; in other words, if you put off contributing for a few years, you could lose tens of thousands of dollars!

And that’s not the only dismal news.  Many baby boomers are planning to count their Social Security as a stable monthly income; however, given the sheer size of the baby boomer generation, Social Security could become a thing of the past as the government becomes more financially squeezed. 

If you want to protect your retirement savings, it’s important to be proactive even during a time of financial uncertainty.  Check out a free online retirement calculator to determine exactly how much you’ll need to save in order to meet your goals; if you find that you won’t have enough at your desired retirement age, consider retiring later or getting another source of income to make up for the shortcomings.  Additionally, if you’re currently living beyond your means, straighten out now!  Budget your income, and make sure to emphasize the importance of contributing to your retirement funds – it should be as essential as paying the mortgage or utility bills!  Besides, contributions to your retirement fund reduce your taxable income, so you’ll definitely make up for it later in the year.

Most importantly, find a savvy investment advisor who is on the same page as you in regards to your retirement plans.  Your investment advisor should help you to maximize your savings as much as possible, while still compiling your portfolio with safe investments.  Remember, your investment advisor should work based on your goals, not the other way around! Learn more about such plans at www.iamllc.biz.

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401K experts!

Authored by Ken Himmler, Sr.