You have most likely begun a savings account for the other financial goals in your life. If not, no worries! You may have decided that this needs to be a priority now, or you wouldn’t be reading this blog. A simple way to start is to set up a percentage to be automatically put into a 401(k).
Many employers will automatically do this for you with each of your paychecks. If they don’t, this is something you will be able to set up on your own, so you don’t accidentally spend the money instead of investing in your future! If they already do this for you, consider increasing the amount each year.
You’ve probably been saving for retirement since you became an adult, right? We would be very surprised if you did! If you have, kudos to you but a majority of Americans in their 20s and 30s have less than 10k saved towards retirement. If you’re late to the party, that’s okay! If you are thirty now, you still have until you are 65 to gain compound interest on your savings. Saving a little now will grow tremendously over the next thirty years.
Don’t Cash Out
You’ve probably been working for a while and have had a few different jobs. Even more likely, you will have more than one job within the next twenty years. A hard rule of thumb is to never cash out of your retirement policy when you switch employers. The money may be enticing, but it is crucial to roll it into your next retirement account to avoid the fees of withdrawing early. If you roll the money into a new account, it can be worth much more come retirement.
Keep Your Eye On That Golden Sunset
We understand you have many responsibilities you are managing daily. It can be difficult to picture retirement when you have so many other things or people fighting for your attention. However, retirement will come and the responsibilities will dissipate if you plan correctly. Try to not let the urgent things of today take priority over the important things of tomorrow. Instead of splurging on that brand new car, consider buying used and put extra money away for your golden years!
If you need help planning for your retirement, come see us at AbbyBank for guidance! We have solutions to help you save for your future.