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How do you get motivated to save for retirement? Joe Anderson, CFP\xae and Alan Clopine, CPA share smart saving tips for retirement then shed light on why you shouldn\u2019t depend solely on your pension for future income. They close the hour with seven reasons why you should say yes to a Roth IRA. Original publish date January 28, 2017 (hour 1). Note that content may be outdated as rules and regulations have changed.

02:06 \u201cI want to go over in this segment a few ways to motivate yourself to save more for retirement, and I think this is something that\u2019s true for all of us \u2013 whether you\u2019ve saved little, none, or a whole lot.\u201d

04:48 \u201cNo matter where you\u2019re at \u2013 whether you\u2019re in your thirties or in your sixties, you want to be saving as much as you can because retirement is going to happen.\u201d

07:46 \u201cIf I save $10,000 after tax (let\u2019s say I have a Roth component in my 401(k) plan), I forgo the $2500 savings today and then it grows to $100,000 and then [when] I pull out the $100,000 I don\u2019t pay any tax at all. Let\u2019s assume we\u2019re in that same 25% tax bracket \u2013 that\u2019s a $25,000 savings. So I forgo the $2500 to save $25,000 down the road, versus a $2500 tax deduction today and then down the road paying $25,000 in tax.\u201d

09:25 \u201cIf you have the discipline to save that tax savings and you\u2019re in a higher tax bracket, by all means, go for the pre-tax and get that deduction\u2026 take that $2500 and save it - put it in a Roth IRA as a contribution; that would be the best [case scenario]\u2026people forget about this because they just spend it.\u201d

16:17 \u201cA lot of companies, as ours, we do have a 401(k) and a match, but it\u2019s not the same amount as a pension plan.\u201d

17:05 \u201cIf you do have a pension, private or public \u2013 that doesn\u2019t necessarily mean you should just coast.\u201d

19:28 \u201cThe most obvious benefit of a Roth IRA is it can provide you with tax-free income in retirement.\u201d

22:56 \u201cA couple of things when it comes to RMDs (required minimum distributions) \u2013 you don\u2019t necessarily have to sell the investment. You\u2019re taxed on it, but you don\u2019t need to sell it if it\u2019s in an IRA. You can transfer shares out and put it into a brokerage account.\u201d

27:36 \u201cIf you don\u2019t have a Roth, we would encourage you to at least open one up because then that starts your five-year clock.\u201d

28:06 \u201cA Roth IRA can be a great compliment to other retirement accounts. A lot of people don\u2019t realize the power of this.\u201d

32:22 \u201cRoth IRAs are great for estate planning as well because your kids get them tax-free as well.\u201d

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