If you have not started saving for retirement, now is the time to put a savings plan in action. The idea of retirement planning may be a bit overwhelming, but saving is much more manageable when you take small steps. Follow these simple guidelines for effective retirement savings that will work for you.
Start saving early
It is never too early to start thinking about retirement. Even in your early 20s you might start putting money into a 401k if it is offered by your employer. If your employer does not provide retirement plans, you can open your own account to get started on saving.
Know your options for saving
Aside from employee-sponsored 401ks, you might consider IRAs. Both traditional and Roth IRAs have distinctive tax benefits that can propel your retirement savings. Stocks are also an option for long-term saving, as a longer time period will create more time for stocks to grow and produce high returns.
Consider your retirement lifestyle
While you may not know the exact details of your retirement while you are in your 20s or 30s, it is worth it to start thinking about where you will want to live or travel. When you have a clearer idea of how much you want to do, you will know how much you need to save.
Set clear goals
You will not want to rely on Social Security benefits for your retirement income, so you should set goals without taking these benefits into heavy consideration. Think about bench marks to reevaluate your savings plan as you get closer to your retirement. You might save more aggressively early on and just before you prepare to retire.
For help planning your retirement, connect the retirement planning professionals at Financial Directions, LLC in Tucson. You can reach us on our website, or call us at 520-408-7777 to begin exploring your options for saving.
