Tips to Save for Retirement
Most Americans don’t have nearly enough savings to sustain them through retirement. How do you avoid that fate? When planning for retirement, the truth is that the earlier you start saving, the better off you could be. But even if you began saving late or have yet to begin, it's important to know that you're not alone, and there are steps you can take to increase your retirement savings.
Whether you are early in your career or closer to retirement, the following are some tips that you can take to help save for a comfortable retirement.
Take the time to carefully consider and estimate how much you'll need to live comfortably after your 9-to-5 days are over. Based on that, you'll be better able to develop a plan to accrue the sum you need, by the time you need it.
Maximize your contributions to your workplace plan. If you cannot contribute that much, at least contribute the amount needed to enable the matching employer contributions that can boost your savings.
If you haven't yet, consider opening an IRA (Individual Retirement Account) and contribute as much as you can to it annually to help build your nest egg. You have two options here: a ROTH IRA or Traditional IRA. To determine what type of IRA could work best for you, go to Find out which IRA may be right for you and view the most current 401(k) and IRA contribution limits.
Set up automatic savings, automating your retirement contributions each month will give you the opportunity to save for retirement without having to think about it.
Invest more aggressively earlier in your career to capitalize on opportunities to increase your account value. If you are 50 or older, you may be able to take advantage of “catch-up contributions.” This is where having a financial advisor will ensure that you're up to speed on different asset allocations and what might be appropriate for your needs and age,
Check-in with yourself and set benchmark goals along the way. Knowing how much you need can help you better understand why you are saving, and you can make sure you are staying on track over the years. A financial advisor can help determine at what age you may be able to retire and how much you may need to invest and save to do so.
Understand how Social Security (and Medicare) work. For every year you can delay receiving a Social Security payment before you reach 70 can increase the amount you receive in the future.
The good news is that making a few small changes, maybe working a few years longer, and saving a bit more each month, can add up to a much more comfortable retirement. Reach out to Elevation Investment Consulting about how you can save for retirement and be prepared for your future.