It is never too early to begin planning for your retirement. Even if you are just beginning your career, taking smart steps to prepare for your future can offer many rewards in the years ahead. If you have questions about retirement planning and which solutions are best for you, a financial planner can help you make the right decision for your financial needs.
Start Saving
The key to planning for your retirement at a young age is simply to start saving. Whether you can afford to save a significant amount of money or only put a small portion of each paycheck toward retirement, the sooner you start saving, the better. Setting money aside for your retirement when you are young allows interest to compound over time, growing your savings significantly to increase the value of your retirement funds when you are ready to stop working.
Use Your 401(k)
Even as a new employee, you’ll often have the opportunity to sign up for a company 401(k) plan. These plans are an excellent way to build retirement savings and may include a matching contribution provided by your employer. Even if the matched percentage is small, you’ll still be gaining the benefit of extra savings. Furthermore, 401(k) contributions can often be deducted from your pay before you receive your paycheck, ensuring you won’t forget to contribute to your retirement savings or be tempted to skip a deposit or two.
Consider a Roth IRA
Whether you are offered a 401(k) or not, a Roth IRA offers you an additional way to save for your retirement. Roth IRAs are individual retirement accounts for which contributions are taxed today—but won’t be taxed when you withdraw money during your retirement. Additionally, you can withdraw your contributions today from your Roth IRA without penalty if you end up needing the funds at any time.
Financial Directions, LLC can help you develop a personalized retirement plan that is right for you at any age. You can learn more about our retirement planning services when you visit our website or call (520) 408-7777 to speak with a financial advisor in Tucson.
