Getting Back into the Retirement Mindset

The economic downturn created a very scary environment for workers who had been diligently saving for their retirements, as suddenly the value of portfolios came crashing down and the amount of money they could siphon off to retirement savings grew smaller. However, with the stock market recovering, now is as good a time as ever to jump back onto the saddle of saving for retirement.

While you may have been cautious about putting money into your 401(k) plan at the depths of the recession, you should now try to return to investing your maximum annual contribution to your retirement accounts. You should consider splitting your investments between traditional and Roth accounts so that you can be more versatile as times change.

Also remember to keep a healthy mix of stocks and bonds. For the average family, investing about 35 percent of your savings in bonds allows you to protect yourself from a volatile market without forsaking growth opportunities. If you need to save for college as well, make sure to look at putting some money into a 529 plan.

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