It’s coming. Fast than you think. Retirement isn’t something you want to stress out about, so start saving now for a nest egg that will allow you to continue your lifestyle well into your Golden Years. Less than half of all Americans know how much they need to save for retirement, according to the United States Department of Labor.
- Simply save. There’s nothing complicated about this. Even if you don’t fancy yourself a stock-savvy investor, just socking away money rather than spending it on frivolous things is better than nothing. Start small and increase as the months go on and your means increase.
- Come up with a plan. It’s hard to stick to a goal if you don’t come up with a plan. Whether it’s to save a million dollars by retirement or scaling back your expectations a bit so you can enjoy traveling now as well, make a plan and stick to it. Put it in writing if you have to. Tack it up on the wall so it’s in your face and you never forget. Remember, it’s never too late to start saving!
- Contribute to the 401(k) at work. Your company may match your contributions, plus you can enjoy interest and tax deferrals. It all starts with asking questions in your human resources department. How much do you need to put in each week to take advantage of the full employer contribution? How long do you have to stay in the plan to obtain that money?
- Know basic investment principles. Consider the effect of inflation on your savings and the types of investments you plan to make. Ask questions of your broker, such as how best to put your savings or pension plan toward investments, but make it an equal priority to have a stock market attorney like theThomas Law Group in your corner. Find out all about your plan’s options and what you can do to stay on top of your money. Experiment with different types of investments through diversification to reduce risk and elevate your returns. Mix up your investment plan over the years to accommodate your changing needs.
- Know what you have coming to you. Social security won’t make you rich, but it will help. These benefits will typically give you about 40 percent of what you are making before retirement. Estimate your benefits by using the retirement calculator at theSocial Security Administration’s Website.
- Contribute to an IRA. You are permitted to put up to $5,500 a year in an IRA – more if you are over the age of 50. Choose from a traditional IRA or a Roth IRA, both of which give you tax breaks. Set up automatic deductions from your paycheck each week so you don’t even miss it.
Use these savings strategies to stay one step ahead for retirement.