How's Your Retirement Savings?

With recent layoffs, the drops in the stock market and pay cuts across the board, many people are afraid to look at their retirement. People may be tempted to stop investing in retirement when they are scrambling to find money to cover the recent cuts in pay. Or they cash in their 401(k) while they are unemployed, and totally wipe out what little money they have saved.

The best plan is to leave your retirement alone. If you are laid off, don't touch the money you have already saved, roll it over into an IRA and let it continue to grow. If you took a pay cut, then continue to invest at the same rate you were before. Now is a great time to buy because prices are low and you can get more for you money. The key is to let it continue to grow over time. If your balance freaks you out, then don't check it as often. There is plenty of time for it to recover.

If you took a recent layoff as the opportunity to finally start your own business, you need to remember planning for retirement should be part of your overall business plan. You will not receive a match in your retirement plan, so you need to start saving now. There are special retirement accounts for the self-employed that can help you get started.

• Learn About IRAs
• Why Should I Increase My Retirement Savings in a Bear Market?
• Retirement Accounts for the Self-Employed