Twentysomethings need to start a retirement plan

Seniors in the future will need a good retirement plan to Make Ends Meet.  However, work on that plan needs to begin when people are in their 20's to get the best result.

The problem is twentysomethings are burdened with huge amounts of debt from credit cards and college loans.  It will be a compounding problem because experts say social security is not expected to be able to pay out in the same way it did for generations in the past.

How do you start a retirement plan for someone under thirty?

Anthony Ogorek, a certified financial planner from Williamsville, said it is important to remember that time is on your side.  The sooner you start doing something, the better off you will be at retirement time.

Ogorek recommends:

-Be cautious of investing in start-up companies.  Too often start-ups don't make it and take your investment with them.

-Don't be afraid of investing in the stock market - especially companies that have green initiatives.  You are looking at the long term for your retirement needs.

-Maximize your contributions to your company's 401(k) program so you get as much of a matching contribution as possible.

-If you don't have the option for a 401(k) plan, open a ROTH IRA.  It will not provide you with a tax benefit right now but it will allow you to withdraw your money tax-free in the future when tax rates are expected to be much higher.

-Don't give in to temptation and take loans on your 401(k).  Doing that can make a significant reduction in the amount you have in your 401(k) account at retirement time.

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