Reduce Your Financial Stress in 2012
Some hints to start the New Year on the right financial foot:
Don’t spend any extra earnings. If you get a raise and/or performance pay this year, don’t spend it – deposit that money into your savings account.
Claim your 401(k) match. Think of the Alcoa Retirement Savings Plan match as a guaranteed return on your investment – and save to at least the level of that match.
Save more. Consider dialing up your contributions to the Alcoa Retirement Savings Plan by 1 or 2 percent.
Seek lower-cost investments. Refer to your quarterly Alcoa Retirement Savings Plan statement for the cost of each available investment (expense ratios). Take a look at the expense ratios and see if a similar but lower-cost fund is available.
Take advantage of tax breaks built into the Alcoa Retirement Savings Plan. You can defer income tax on up to $17,000 in a 401(k) in 2012. If you are age 50 and older, that limit jumps to $22,500.
Make an extra credit card or mortgage payment. This will help to reduce your interest costs and pay off your debt more quickly.
Consider refinancing your mortgage. Interest rates continue to be low so it may be time to explore your options. Alcoa’s home and mortgage programs are a good place to start.
Set up an automatic payroll deduction so some of your earnings go directly to a bank or mutual fund company.
Start or contribute to a college fund for your children. It’s another investment in your future.
Some information provided by CIGNA Behavioral Health, Alcoa’s Employee Assistance Program provider.
