Many times, people put off saving for retirement, which can seriously set them back on the track to retirement planning. While it’s always a good idea to have a trusted financial advisor with whom you can speak about your goals and progress, these 10 tips will get you started on the right track to saving enough for retirement.
- Put as much money into your company’s 401(k) as you can. The maximum cap is 15%, but at the very least, contribute up to your company match. Otherwise, you’re throwing away free money.
- If your company does not offer a 401(k) plan, open your own IRA (Individual Retirement Account).
- Pay yourself first. Have money automatically deducted from your paycheck and invested for your retirement.
- Do not ever dip in to your retirement savings, no matter what the excuse.
- Set new priorities to spend less and save more – now. Sometimes this means selling a more expensive car and buying a cheaper one to cut back on your car payments, thus giving you more money to sock away.
- Develop a retirement savings plan with the help of a financial advisor. It’s important to be realistic and know how much money you will need to live the lifestyle you want in retirement.
- Invest your savings appropriately. Learn when to take on more risk and when to take on less.
- Commit to saving more. Calculate the most you think you can put away for retirement, and then add 10% to that amount. That’s a big commitment, but well worth the rewards.
- Don’t “cash in” your retirement money when switching jobs as you’ll lose money to taxes and penalties. Instead, roll your money over to another plan or an IRA.
- Start now! No matter how young or old you are, you don’t have time to waste. Starting to save immediately will get you on the right track for retirement that much sooner.