Dallas Morning News, August 3rd, 2009
Sarah Auclair wants to retire eight years from now at age 65, but, for now, that will have to remain a dream.
Auclair has nothing saved for retirement, so reaching her goal will
require a concerted effort on her part – starting with making regular
contributions to her employer's 401(k) plan.
"She's got an awfully late start," said certified financial planner Michael Busch.
Busch, president of Vogel Financial Advisors LLC in Dallas, and fellow
planner Melissa Brennan drew up a financial plan for Auclair as part of
a Money Makeover sponsored by The Dallas Morning News and the Financial Planning Association.
Auclair, an executive assistant, is aware of the value of the 401(k),
especially since her employer matches employee contributions dollar for
dollar, up to 6 percent of salary.
But she says she needs every cent of her paycheck to pay her bills.
"Although I have access to my company's 401(k), I have been hesitant to
enroll," Auclair said. "How much is that going to take out of my income
that I take home to pay my bills? I'm afraid to shave anything off my
take-home pay."
Busch said Auclair needs to make saving a priority.
"If Sarah waits to save until she feels like she has her bills covered,
she likely will never begin to save," he said. "It's a mind-set change,
not a circumstance change, that is needed. If you are going to be an
effective saver, you have to view your savings goal as the first 'bill'
that gets paid each month."
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