Carol Perry: How to make saving easier

Do you feel sick just seeing your brokerage account statement in the mailbox? Are you in denial about your 401(K)?

If you are, you are not alone these days. Anxiety over money is greater than ever, and perhaps there is good reason for it. Most people who save in 401(K) accounts are not even sure how much money they will need to retire, much less how much to save and for how long. Often your retirement custodian is a big company located someplace other than Carson City and no one calls you about your account. So what do you do?

You gotta get involved.

After opening your statement, something many do not do, you need to evaluate your losses. Statements are often difficult to read. The language of finance is often Greek for many people and the financial services industry seems to like it that way. The world of financial products is complicated, so it is hard to know the difference between a growth fund and an aggressive growth fund unless you work with mutual funds for a living.

Which fund is right, how often should I rebalance? What are the fees? Should I hire someone to manage it? Now you have a headache and put the envelope back in the drawer and there it still sits. People, this strategy is not going to get you any closer to retirement, or anything else.

When I would do retirement calculations for a client that would show a need to save $2 million in order to maintain a standard of living, they would seem a bit defeated. For some, truly it was too late, but for many it was not. It was a matter of time and systematic investing and discipline, but it was not impossible. The fact that they knew a number was the first step to achieving the goal.

So how do you get some target savings numbers? You can go to MSN Money or some of the discount brokerage sites for a guide or contact a financial planner. If you don't have the Internet, ask someone who does to print off a template and you can fill it in by hand. You can also get professional advice. Please be aware, though, that when you contact someone, they get paid to manage money, not just to calculate. In the days of big returns, paying a fee was no big deal, but I have a feeling those days are gone so you need to be conscious of costs including fees and commissions. If you see someone, make sure that they offer a full compliment of investment choices. Someone who only sells one thing is going to find a way to make that the perfect product for you.

Whether you pay for advice or educate yourself, please do not delay knowing how much you need to save, be it retirement, college, a big ticket item, or a house.

One of my favorite sayings is by Louis Pasteur. He said "chance favors the prepared mind." It could not be more true than today, so give yourself a chance to actually accomplish your goals. Chances are, you could be doing a lot more with your money than what you are currently doing.

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Thank you for the overwhelming response to my article on chronic fatigue syndrome. Some of you who called me were accidentally deleted so please call back. Feel free to e-mail me as well. I suggest that if you want to learn more about chronic fatigue syndrome you pick up a book called "Osler's Web" by Hillary Johnson. It is 696 pages, but well worth the read.

- Carol Perry, a Northern Nevada resident since 1983. You can reach her at carol_perry@worldnet.att.net or 267-5358.