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Enroll in the 401(k) Plan
There are several good reasons for enrolling today in your 401(k) Plan:
- An early start can make a big difference over the long term.
- Every dollar that you put into your 401(k) Plan now could grow dramatically with
enough time.
- You can get extra money from your employer when you contribute!
What you MUST know
- You can enroll at www.usairwaysretirement.com or by calling J.P. Morgan at 800-345-2345,
weekdays between 5 a.m. and 6 p.m. Pacific
time. (The TDD number for those with a
hearing impairment is 800-345-1833.)
- If you enroll in the Plan and do not specify how your contributions should be invested, they will be invested in the Plan's default fund.
Take it in
Start with your expected monthly income during retirement, including withdrawals from your retirement plan, money from other savings or investments, and perhaps a part-time job. Factor in your Social Security benefit, too.
Let it out
If you haven't tracked your current expenses lately, consider starting there. Look at the past several months' cash receipts and bank and credit card statements, and list expenses you anticipate will continue in retirement.Keep in mind that some expenses, such as commuting costs, may retire when you do. Other expenses, such as travel and health care, may go up. A recent study by the Employee Benefit Research Institute found that 49% of retirees say their spending in the first five years of retirement was lower than before they retired.
Alter to fit
If your estimated expenses during retirement are higher than your projected income, some alterations may be in order. Here are a few ideas to consider:Delay retirement a few years, if feasible, to keep building your nest egg or plan to work part-time when retired.
- Move to a less expensive home or area of the country.
- Downsize from two phones (or two cars) to one.
- Pay off your credit card every month to save on interest charges.
- Check into swapping houses when you go on vacation instead of paying for a hotel.
- Give a gift of time to your adult children and grandkids, instead of your retirement money.
Sources:
2010 Retirement Confidence Survey, Employee Benefit Research Institute, March 2010 Issue Brief, www.ebri.org.
Quick Tips for Saving Hundreds of Dollars per Month, AARP, April 9, 2009, www.aarp.org.
Planning for the Stages of Retirement, Financial Planning Association, 2008.
This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice.
J.P. Morgan Institutional Investments Inc. (JPMII) has hired Financial Engines Advisors L.L.C. (FEA) to provide sub-advisory services. JPMII is a federally registered investment advisor. FEA, a federally registered investment advisor and wholly owned subsidiary of Financial Engines Inc., is an independent company that is not affiliated with J.P. Morgan Retirement Plan Services LLC or JPMII. Neither JPMII, FEA, nor their affiliates guarantee future results. Financial Engines is a registered trademark of Financial Engines, Inc. All other marks are the exclusive property of their respective owners. 2005-2011. Financial Engines, Inc. All rights reserved. Used with permission. J. P. Morgan Retirement Plan Services provides plan recordkeeping and administrative services.
