Stick to a Savings Plan

You've been saving and investing for a long time—and now you're in the home stretch! But getting closer to retirement doesn't mean you should stop investing. In fact, it’s likely you earn more now than you did in mid-career. It may be be a good time to increase your savings.

Take advantage of your peak earning years. To ensure you will have income in retirement to supplement Social Security, be sure to:
  • Consider opening a Roth IRA if this type of IRA is appropriate for you (you'll need to keep the account open for at least five years before you can reap the tax advantages)
  • Save as much as you can in taxable accounts as well

If you are a small business owner, consider the options available to you in a retirement plan designed just for people in your situation. An individual 401(k) plan may be right for you.

Tax Laws Work for You

Thanks to favorable federal tax laws in recent years, you may be able to contribute more towards your retirement.  For traditional and Roth IRAs, "catch-up" provisions allow individuals age 50 or older to contribute an additional $1,000 each year. For 401(k), 403(b) and other company-sponsored plans, the catch-up amount for 2010 and 2011 is an additional $5,500 per year.

Don't Forget About Your Emergency Fund

Experts recommend having three to six months’ worth of expenses in cash or a relatively liquid investment like a money market fund. This money can help get you through emergencies or other times when you might be tempted to dip into retirement savings or less-liquid investments. Creating an emergency stash of cash is easier than you think! Talk to your advisor about setting up a systematic savings program.

This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.

WEBC 10.25.06/08   11.30.06

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008