Start saving for retirement now, so you won't worry about it later

There is a whole new group of College graduates getting ready to enter the job force, and even though they are stepping into an unsure job market there are steps they can take now to secure their future. A big part of that is starting to save for retirement, and while the idea of paying back college loans seems daunting enough, now is the time to start saving for retirement.

The College Board estimated that one third of students graduating with a bachelors degree have college debt exceeding $20,000. But time is on their side, the average 22 year old graduate has 43 years before retiring at age 65, 48 years if they work until age 70. Here are a few steps on how to start saving for retirement now.

1) Meet with a financial planner- They can help you examine your current finances including college debt and help you establish and plan long term goal for retirement, planning a family, traveling or even going to graduate school. You can find a planner near you at PlannerSearch.org*

2) Start saving for retirement now- Even if you can only save $5 a week, give some thought to investing in an IRA and make a plan on how to contribute to it regularly. And when you qualify for an employer 401(k) plan, try to contribute the maximum allowed, especially if your employer matches it.

3) Buy used- There are some times where spending more for high quality make sense, such as a good suit for job interviews. But why spend a ton of money to furnish an apartment when you can scour yard sales and thrift stores?

4) Create a budget- Make it a habit to track your spending weekly, whether you use paper or go electronic, tracking your budget is crucial.

5) Start and emergency fund- Have enough money saved to cover up to 6 months of basic living needs. You can start small by cutting back on your daily coffee trips and put the money in an interest-bearing account.

6) Get tax help- If your finances are simple you might be able to do this on your own. But as they get more complicated it’s a good idea to get help from a tax professional. They know how to spot ways you can save money.

7) Check your credit report- You can receive a free credit report from three main credit reporting agencies once a year to check for inaccuracies and I.D. theft. Don’t order all three reports at one time though, stagger them throughout the year to catch and problems.

8) Get insurance- Good news if your employer doesn’t cover your for health insurance, under the new federal health care reform law you can stay on your parent’s health insurance until age 26. But don’t forget about auto, rental insurance and disability insurance.

9) Check your investments- Meeting with a financial planner can help you examine your investment choices and make sure they still meet your goals.

10) Do your homework- Do you research on the economy, investments and savings options.

-Jess H., Maine Credit Union League