Mar 24, 2023 / Money Tips
Whether retirement seems like a long way off or right around the corner, finding new ways to save for retirement is easier than you might think. Try these 10 quick tips to help you gear up for your golden years and plan out the perfect retirement for you.
Ask yourself when you want to retire, how much money you’ll need, and how much you’ll have to save every month. Having a plan for your money can help you know where to invest and make saving more manageable.
If your employer offers a 401(k) retirement plan, you can contribute pre-tax dollars to your retirement savings, lowering your pre-tax income and earning compounding interest on your investment.
If your employer matches your 401(k) contributions, you should try to contribute the maximum amount that your employer will match to get the most bang for your retirement buck.
You can save up to $6,000 per year with a traditional individual retirement account. Your contributions are tax deferred and they’ll earn compounding interest until you withdraw your funds.
Like a traditional IRA, you can save up to $6,000 a year with a Roth IRA. Unlike a traditional IRA, you’re taxed on your contributions up front, and won’t be taxed when you withdraw in retirement.
If you’re over 50, you can play catchup on your retirement plan by contributing even more to your IRA accounts—an additional $1,000 a year for individuals and $2,000 a year for couples in each account. Some teachers, healthcare workers, public and non-profit employees can contribute more too.
Automate your retirement savings by setting up direct deposit to contribute to your accounts with every paycheck.
When you receive extra money—whether through a raise, a gift, or tax refund—stash your extra cash in a retirement account to help your savings grow even faster.
It can be tempting to access your retirement money to help pay for major expenses. When you make early withdrawals, you’ll likely have to pay penalties and fees, and you’ll slow your money’s earning power.
The earlier you can start to save for retirement, the more momentum you give your money to grow. Today is a great day to start saving for retirement.
Saving for retirement is a lot easier when you have a plan and you consistently add to your retirement accounts. Make it a part of your monthly budget, be persistent, and you can achieve your retirement goals.