Five Steps to Growing Your Nest Egg

People in the Midwest are the most conscious about building their nest eggs, while Southerners lag the national averages in saving and investing, according to a new survey by the brokerage A.G. Edwards.

In its third annual Nest Egg Index, Ohio, Indiana, Pennsylvania, Michigan and Wisconsin had the most communities among the top 500 communities the firm ranked according to a dozen criteria, including participation in retirement savings plans, personal debt levels and homeownership. Conversely, only Arkansas, Louisiana, Mississippi and Oklahoma did not have any communities in the top 500.

In a time of rising costs for items such as college tuition and medical expenses, Americans are saving at the lowest rate in the industrialized world, by some measures. According to the Commerce Department, Americans' personal savings, as a percentage of disposable income, were -1% in 2006. That compares with 11.6% in France and 10.6% in Germany, both in 2005, according to the Organisation of Economic Co-operation and Development.

If you haven't begun saving toward your nest egg up to this point, then you can initiate the process by reading "10 Steps to a Healthy Retirement." Start today with any amount you can, and make the payments to your nest-egg accounts automatic.

Take full advantage of all the investment vehicles that reward you for saving money for retirement. If you have a 401(k) plan at your company that matches funds, invest up to the match. If you don't have a 401(k) plan, take advantage of the tax benefits afforded to IRAs, making sure that you fully fund these retirement vehicles.