Resolve to Be Financially Fit

By Michael Cox

Getting fit in 2008 shouldn't just mean cut the fat and hit the treadmill.

It should also mean curb excessive spending and get serious about retirement saving.

Planning for a comfortable retirement should be a priority for every adult, said Michael Cox, a certified fund specialist and certified retirement financial adviser with Retirement Protection Group in Mesa, Az.

"This is something that is real, whether you like it or not, unless you die young," he said. "We're all going to get there and we're going to have to do something to make sure that we get to live comfortably."

When people think of retirement planning, they picture a daunting task that involves lots of sacrifice, but it doesn't have to be that way, said Neal Van Zutphen, a certified financial planner at Delta Ventures Financial Counsel in Mesa, Az.

"Someone who says they're living paycheck to paycheck may not consider that they may be spending $5 a day at Starbucks for their coffee," he said. "You can get a can of Folgers for $5 and that will last all week at least, versus $25 a week" Currently, Americans are saving less than 4 percent of their income, while more of their money goes toward fees associated with debt, Cox said.

"We need to be more savvy on who's trying to get our money so that we can put money away so we do not have to work until we're dead," he said. "I do see a lot of retired clients having to go back to work because they just didn't put enough away."

One of the easiest things you can do to start saving is get a change jar, Cox said. Every time you break a bill, the coins go into the jar, and eventually that adds up, he said.

Another way to start saving is carry bills of only one denomination -- $5s or $20s -- and whenever you break a bill, you're not allowed to spend the rest of it, Cox said.

"Getting more serious, if your employer offers a 401(k) plan, you need to max out your contribution," he said. "If you can't max it out, do as much as you possibly can and still maintain yourself. If your company does not provide a 401(k) plan, then you need to get yourself a Roth IRA, something that you can save on your own."

|"Out of sight, out of mind is a good policy for retirement saving," Van Zutphen said.

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