4 Forgotten Ways to Build up Your Retirement Savings
It is estimated that 42% of Americans will retire broke. Most of this is due because people simply do not save up for their retirement. However, there are some simple steps you can take in order to save up for your “golden years.” Below are four forgotten ways you can help build up your retirement savings.
Start Today
There is an old saying, “The best time to plant a tree is yesterday. The second best time to plant a tree is today.” the two most important factors in savings are the amount of money you save and the time that money has to accumulate an investment return.
Therefore it is critical that you start saving today. Even if you save just $20 today.
That money will appreciate greatly over a 20 or 30 year period in a low-cost index fund.
Research all your options for investing your money. It is a good idea to meet with a financial consultant to make a plan for the most effective way to make investments.
1K Match
Many employers are actually giving away free money! That’s because these employers have retirement programs that will match a portion of your retirement contributions.
An employer may offer to match up to 50% of employee contributions on up to 5% of your salary.
Let’s say you make $60,000 and contribute 5% of your salary of $3,000. Your employer may give you up to $1,500. So yes, it pays to save.
Delay Your Social Security Benefits
As you know, you can receive your full Social Security benefits when you turn 67.
However, if you delay your benefits, you can increase the amount of money that you receive.
You can also increase the amount of money that your spouse receives in survivors benefits.
Automate Your Savings
One of the easiest ways to save money is to put your savings on autopilot.
There are a number of banks that will automatically take money from your savings or checking and place it in a retirement fund or a 401K.
This will remove the temptation to spend the money. After a few months, you’ll completely forget about the automated savings program and that money will accumulate into your retirement account.
You don’t have to worry about saving for your retirement. Simply follow the steps above.
Start saving for retirement today, meet your employers’ 401K match, delay your Social Security benefits and automate your savings to put yourself on the path to retirement independence.
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Category: Retirement
