If you want a comfortable retirement, there are a few things you need to do. While the returns are far better if you start early, it is never too late to get started. We’re going to talk you through a few tips that will help you start saving for retirement, whatever stage of life you are enjoying. With a bit of commitment, they should enable you to have the sort of retirement you have always wanted.
Start looking at your retirement right now – especially if you haven’t saved anything yet. It is never too early to plan for a comfortable future, and compound interest means that the earlier you start, the better off you will be. While it is recommended that you start your planning as soon as possible, it really is never too late. Now let’s take a look at some of the ways to do it.
Get on your employer’s 401(k) plan as soon as possible. Most programs offer payment from your gross salary, so it won’t all come out of your monthly budget. Let’s assume you are taxed at 15%, and want to pay in $200 each month. Your employer takes the payment before you are taxed, meaning your net salary is only reduced by $170. It’s not a bad way to add a little free money into your retirement fund, and over the years it will add up.
Some employers will match your 401(k) payments while others will give you a percentage. Again, it’s free money, so it would be foolish to not make use of it. Let’s assume that your employer will match half your savings for five percent of your salary – that’s a fairly typical offer. If you aren’t paying that five percent each year, you are essentially turning down that free money. Now, let’s say you work for 25 years – that is an awful lot of money to turn your nose up at.
Invest in an IRA
You should also look at bolstering your savings with a private pension pot, such as an IRA. There are various ways of doing it, but your best bet would be to go for a tax deductible plan. Check out this video for some self directed IRA investing tips to get you started. IRAs are a pretty safe way to save your money for retirement. However, you should always consult your tax consultant first, to ensure you are getting the best deal.
Finally, don’t waste your money. Life is full of unnecessary consumer nonsense, and every man and his dog wants some of your money. Get the best value for everything you spend on, and trim out all of the extras that you don’t need. You would be surprised at how much you can save by spending less, and it could all go towards investing in a more comfortable retirement.
While these tips won’t guarantee a perfect retirement, they will certainly help. It’s up to you how much you put away, but the more you can afford, the happier your senior years will be.