The promise of a secure financial future for single mothers
As a single mother, you probably have a lot of things on your mind. But with your job, your kids and everything else to think about, retirement savings probably isn't one of them. However, people are living longer and retiring earlier, so you're likely to have many years of retirement to fund.

The rules for collecting Social Security are complicated by death or divorce. A call to the Social Security Administration, 1-800-4-I-AM-OLD, or a visit to their Web site, www.ssa.gov, can help you understand the retirement benefits you might expect. However, don't rely on Social Security to fund your entire retirement.

Many financial experts say that for an individual to enjoy a comfortable retirement, an annual retirement income of 60 to 80 percent of his or her final working year's salary will be needed. That's a lot of income to accumulate in a retirement plan. But, by beginning to save as early as possible, your retirement savings can grow tremendously. You can begin by contributing what you can afford to your employer's 401(k) or similar retirement plan. If you're self-employed, you can set up a Keogh plan. Depending on your income, you may also want to consider an individual retirement annuity (IRA) or Roth IRA.

The Roth IRA may allow your earnings to grow tax-free. Each of the other plans allows your earnings to grow tax-deferred. That means you won't have to pay taxes on the earnings until you retire, when you'll most likely be in a lower tax bracket. Because tax-deferred and tax-free savings grow much quicker than taxed investment savings, these plans offer a huge advantage in building your retirement savings -- especially if you start now.

By getting an early start on your financial planning, you can rest assured that your future will be secure.

Securing Your Future Financial Protection

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