Saving for retirement can be easier than you think. Having the ability to start earlier rather than later will always benefit you.
For example, if you start at age 25, you could amass nearly $500,000 in your retirement. The effects of compounding interest over the years can greatly help you achieve a more comfortable nest egg. Here are some favorite tips to help you along the journey.
Start as soon as possible. One of the smartest things you can do on the way to retirement is to start saving as soon as you are able to.
One small step today goes a long way toward your financial future. Make sure the amount you’re saving keeps up with you during your working years. Experts recommend contributing at least 10%-15% of your current income to your future retirement. If you are not able to save more today, budget now so that you can increase in the future.
The easy way to save more. Set up automatic increases on your account website, if available, or schedule it in on your calendar to increase your deferral annually.
Cloudy with a chance of rain. One of the best ways to protect your retirement savings is to set aside money for emergency savings. Hold back a portion of every paycheck into a savings account, to be prepared when an emergency should arise.
Check your progress. Take a look at your statement, or view your account online, to make sure you are on track. Making this a habit will help you stay financially fit.
Going somewhere? When you leave your employer, you may be able to leave your money right where it is (certain conditions apply depending on the provisions in your plan). If you have a new employer, you can likely roll the money into their plan. Or, roll it into an IRA. But whatever you do, don’t jeopardize your financial future by taking the money out and spending it.
Share the journey. Share the knowledge you gain and the actions you take along your retirement savings journey with the people you care about. Discuss your dreams and plans for those future years.
Complete the picture. Social Security and other savings (pensions, etc.) can take you part of the way on your retirement journey. If you have an employer-sponsored savings plan (such as 401k or 403b) it can help make the picture complete.
How Can We Help?
Aldrich Wealth LP helps our clients protect and grow their financial assets for the future by helping them make smart financial decisions today. If you would like assistance in determining your retirement needs, please call Aldrich Wealth at 888-299-3102 to speak with a financial advisor.
Meet the Author
Partner, Director of Corporate Retirement Plans
Heather Wonderly, AIF®, CPFA
Heather has been working in the investment field since 2000. She provides guidance to 401(k) pension committees, helping them understand investments, compliance, fiduciary responsibility, and administration for corporate retirement plans. She also provides ongoing employee education to plan participants. She holds an Accredited Investment Fiduciary® and Certified Plan Fiduciary Advisor credentials and has also completed the…
- Certified Plan Fiduciary Advisor
- Series 7 and Series 66 security exams
- Accredited Investment Fiduciary®
- Corporate retirement plans