Make it au­to­matic

The National - News - - BUSINESS | MONEY & MARKETS -

Mil­len­nial thou­sandaires have also been helped along by one of Amer­ica’s pen­sion scheme’s best fea­tures: au­to­matic salary de­fer­rals, in which con­tri­bu­tions are pulled di­rectly from their pay cheques.

“Hu­man be­ings on the whole are not built to be good at sav­ing, and the best ap­proach is one where you never re­ally see the money in the first place,” Mr LaPean says, not­ing that many em­ploy­ers let you mimic that au­to­ma­tion by di­vid­ing your monthly salary among two or more ac­counts, in­clud­ing an in­di­vid­ual re­tire­ment ac­count.

The first step to­wards sav­ing enough for re­tire­ment is to look at your re­cur­ring ex­penses TI­MOTHY LAPEAN Fi­nan­cial plan­ner

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