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TRENDING BASIC MONEY MANAGEMENT TIPS
10.13.2020 / Budgeting « Back to all articles
Boosting Your Retirement Fund
Two common regrets among retirees are not saving enough money for retirement or starting to save late in life. Ideally, you want to begin saving with your first paycheck and grow those investments throughout your career, so you have a nice nest egg when you retire. For one reason or another, not everything goes as planned. Thankfully, no matter what your age, there are steps you can take to boost your retirement fund and make your retirement something to look forward to.
Set a Retirement Age Goal
Knowing how much money you'll need to retire makes saving and investing for it easier. Use an online retirement calculator to determine a realistic retirement age for yourself and how much you need to save each month to reach that goal.
Start Saving for Retirement Today
Don’t put it off any longer. Immediately start saving as much as you can right now, especially if you are a young adult starting your first job. The younger you start investing, the more time you must increase your nest egg. This is due to compound interest, which is the ability for your invested assets to continually generate their own earnings and boost your retirement fund.
Analyze Your Spending
Analyze your monthly spending and look for areas where you can save money. It’s always worth checking your car and homeowner insurance rates for a lower price. Cancel any memberships you aren’t using and consider changing your cable or satellite TV package if you aren’t using the extra channels. Take all that extra money and invest it in your retirement accounts.
Contribute to a 401(k) or IRA
Take advantage of a 401(k) plan if your company offers one. These accounts let you make pre-tax contributions, so you won't notice a big drop in your take-home pay. If your employer matches your 401(k) contribution, be sure to contribute enough to take full advantage of their offer. This is free money for you and an easy way to boost your savings.
Depending on your income, you may qualify for an individual retirement account (IRA). There are two options here for you to consider. A Traditional IRA grows tax-deferred until you withdraw the money in retirement. A Roth IRA is funded with after-tax contributions, so the money you withdraw after you're 59 ½ is federal-tax-free.
The amount you can contribute annually to a 401(k) or IRA is capped, but those over the age of 50 are able to make an additional catch-up contribution to further increase their nest egg.
These are some of the creative ways you can boost your retirement fund no matter if you’re starting your career or nearing the end of it. Whatever steps you take now will determine how much money you must retire with later.
Credit Talk
10.13.2020 / Budgeting « Back to all articles
Boosting Your Retirement Fund
Two common regrets among retirees are not saving enough money for retirement or starting to save late in life. Ideally, you want to begin saving with your first paycheck and grow those investments throughout your career, so you have a nice nest egg when you retire. For one reason or another, not everything goes as planned. Thankfully, no matter what your age, there are steps you can take to boost your retirement fund and make your retirement something to look forward to.
Set a Retirement Age Goal
Knowing how much money you'll need to retire makes saving and investing for it easier. Use an online retirement calculator to determine a realistic retirement age for yourself and how much you need to save each month to reach that goal.
Start Saving for Retirement Today
Don’t put it off any longer. Immediately start saving as much as you can right now, especially if you are a young adult starting your first job. The younger you start investing, the more time you must increase your nest egg. This is due to compound interest, which is the ability for your invested assets to continually generate their own earnings and boost your retirement fund.
Analyze Your Spending
Analyze your monthly spending and look for areas where you can save money. It’s always worth checking your car and homeowner insurance rates for a lower price. Cancel any memberships you aren’t using and consider changing your cable or satellite TV package if you aren’t using the extra channels. Take all that extra money and invest it in your retirement accounts.
Contribute to a 401(k) or IRA
Take advantage of a 401(k) plan if your company offers one. These accounts let you make pre-tax contributions, so you won't notice a big drop in your take-home pay. If your employer matches your 401(k) contribution, be sure to contribute enough to take full advantage of their offer. This is free money for you and an easy way to boost your savings.
Depending on your income, you may qualify for an individual retirement account (IRA). There are two options here for you to consider. A Traditional IRA grows tax-deferred until you withdraw the money in retirement. A Roth IRA is funded with after-tax contributions, so the money you withdraw after you're 59 ½ is federal-tax-free.
The amount you can contribute annually to a 401(k) or IRA is capped, but those over the age of 50 are able to make an additional catch-up contribution to further increase their nest egg.
These are some of the creative ways you can boost your retirement fund no matter if you’re starting your career or nearing the end of it. Whatever steps you take now will determine how much money you must retire with later.
