The time is NOW- Saving for Retirement

Some information that I found while researching about retirement.

You can’t turn back the clock, but you can prepare for your retirement future.

Retirement planning is a process that actually continues throughout your retirement years, with tweaks and changes to ensure that you stay on track. Many folks will immediately think of their portfolio and rate of return, but your age is also an important factor that can help you maximize certain benefits, while helping you avoid mistakes, which are often accompanied by hefty penalties. Make sure to mark your calendar for these important milestones.

Whether you are taking on your first job or looking for one, now is the time for to start taking actions that can nurture good behaviors in the future. Retirement may seem far off, but the reality is that the earlier you start taking simple steps to saving, the better prepared you’ll be to reach your retirement goals. One of the easiest ways today’s workers have to save for their future is through an employer-sponsored retirement plan, such as a 401(k) or 403(b). Your age is your biggest advantage right now when it comes to saving for the future. Saving early gives you the opportunity to make your money work for you with compounding interest. It’s also important to consider that when you participate in your employer-sponsored retirement plan, you reduce your taxable income today while helping to build retirement savings for tomorrow. Your approach to saving is personal, and each person’s financial situation is unique. You may be weighing the costs of budgeting for student loan payments, rent and the basic costs of living, but starting to save now can help you take charge of your future.

It’s also important to understand your investment options. Many plans offer automatic features, such as automatic enrollment, deferral and escalation to streamline the savings process and enhance retirement outcomes for savers. You can also consider investment options that offer in-plan guaranteed benefits to help protect assets in down markets, provide access to cash in case of an emergency and have growth potential. Target-date funds are another option and are designed to manage risk over time. The flexibility of these funds can cover a broad range of risk tolerance. As an investor ages, the target-date fund’s asset allocation mix shifts from a focus on growth to a focus on income. As with any investment decision, it’s important to talk to a financial professional to see what options could be right for you and understand any fees that may be associated with the offerings.

Try to stay focused on your long-term goals and resist the temptation to borrow against your plan. In addition to the possible taxes and penalties related to not paying the loan back, you may miss out on potential market gains. Once you start saving, you’ll feel good about the progress you’re making. Steady savings can help you feel confident that you’ve taken the right steps toward the lifestyle you want to live throughout all of your life stages, including your retirement years. Saving early can be one of the most important things you do for yourself to achieve retirement readiness.

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