Money tip – Retirement savings
The retirement savings category lists personal finance tips that can help you with saving for retirement.
Do not put off saving for retirement
Start saving for retirement as soon as possible. This will give you the advantage of time. Your money will compound over time and your retirement investments will increase exponentially (the value of compound interest).
Max out your employer retirement plan
A good place to start saving for retirement is your employer’s sponsored retirement plan. First, if your employer offers an amount, you want to contribute up to the same amount. So you are not leaving free money on the table. Second, it is just usually easier for people to fill out a form at work to start contributing to a retirement plan. Other than it is to go out and open up a retirement investment account with a brokerage firm. So, if you are not sure where to start saving for retirement, look into your employer’s retirement plan.
Save for retirement in a Traditional IRA or Roth IRA
After you have explored retirement savings with your employer (or if you do not have that option). Look into opening up your own retirement investment account at a brokerage firm. Typically, this is in the form of a Traditional IRA or Roth IRA. To do this, you will need to use a brokerage account at a brokerage firm. These accounts can give you added retirement investments and potential tax savings.
Do your own retirement projections
Find a way to do your own retirement projections. There are online calculators you can use. Try our retirement savings calculator or you can go to a financial planner for this. A retirement projection will account for your age, your rate of saving for retirement, your current investments, and what your expected expenses in retirement are. In conclusion, it will help you understand whether you are on track to be financially ready for retirement and at what age.
Until next time.
The MoneyShop Team
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.