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The average American will face a 28% income shortfall inretirement, according to a recent survey by Fidelity Investments. And that's just the broad percentage: Indollars-and-cents terms, Gen Xers will be scrambling to find anextra $1,700 a month to cover living expenses, while baby boomerswill fall a whopping $2,100 a month short of what they need to maintain their current standards of living. That may sound like an insurmountable problem, but don't throw inthe towel. As Fidelity's Kathy Murphy says, "finding the money tofill the income gap is not unattainable." But if you want to do so, "take action now -- and the sooner thebetter." Here are five relatively easy steps you can take -- some as soon astoday -- that will help prevent an income deficiency when you doretire. 1. Boost Your Stock Exposure. If you're 40 or younger, adding a higher percentage of stocks toyour portfolio with a lower allocation to bonds will allow yourportfolio to grow more quickly than if you were in a "safer"allocation focused on a higher bond exposure. Stocks have historically grown at roughly 10% a year, but even anallocation of 83% stocks and 17% bonds (as Fidelity hypotheticallyuses) could return 8.4% a year. Unfortunately, if you're older than 40, a higher allocation tostocks is riskier and -- although it could help your portfolio growmore rapidly -- could have a detrimental effect on your investmentsif you retire during a bear market. 2. Save More. A Lot More. Most Americans still don't participate in employer-sponsoredretirement plans like 401(k)s. And this is a colossal mistake. Many employers will match contributions, essentially putting freemoney into your account. Plus, a savings plan like a 401(k) is aneasy way to force yourself to save. Money will come out of yourpaycheck before you can ever touch it. For both baby boomers and younger workers, ratcheting up yourcontributions to an ideal 10% of your salary alongside ahypothetical employer match of 3% will have a huge, positive effecton your portfolio when you retire. I am an expert from neckstrap-lanyard.com, while we provides the quality product, such as Reflective Lanyard Manufacturer , PET Lanyard Manufacturer, Tubular Lanyard,and more.
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