Save Up for Retirement

Save Up for Retirement

How To Save Up For Retirement – 7 Steps to a Secure Retirement

For many individuals, retirement means switching to a life style that is more relaxed, and having more time to do all of the things you couldn’t do before. Some like to travel, take up hobbies, and take part in recreational activities. For many others though, it’s a time of worry and apprehension because they didn’t save up for retirement the way they should have.

The pandemic created even more problems View full post…

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4 Basic Steps on Saving for Retirement

4 Basic Steps on Saving for Retirement

4 Steps on Saving for Retirement & Why You Should Start Early

It’s safe to assume that most people will agree that having a good amount of savings before you retire is something that’s really important. Once you stop working, even if you do get a pension, having a nice cushion of money to pay your bills, move, go on vacation, or spoil your grand kids with will be really nice!

In fact, a study conducted in December of 2019, showed that almost half of all Americans made the resolution to save more money in 2020. It ranked just as much in importance as getting a lot more exercise, eating healthier and losing weight.

Saving for retirement can be tough, especially if you’re living paycheck-to-paycheck or don’t have a 401(k). Regardless of your situation, there are a few great tips for saving for retirement that you and your family can start implementing today.

Prepping for your retirement plan

STEP 1 – Know how much to save

Regardless of your retirement goals, or if you have yet to make any, good rule of thumb when it comes to saving for retirement is to save at least 15% of your income.

STEP 2 – Set a retirement goal

In order for you to reach your goals, you have to know what they are first. You need to begin by sitting down and mapping out exactly what your retirement plan looks like. Will you move to the beach? Finally buy that car of your dreams? Sell your house and move into a condo?

After you decide on your retirement goal, you’ll have to figure out the logistics for it. How long will it take, and how much money will you need? Are there initial costs or will they be steadily distributed over time?

STEP 3 – Pay off debts

You can’t really save money at all if you are still in debt! Debt is a huge reason why people of all generations are unable to save for retirement. The most important debts to get out of the way are credit card debts. Things like car payments and mortgages that have lower interest rates and are spread out with a specific plan of payment aren’t as crucial to pay off.

STEP 4 – Cut back on non-essential spending

This isn’t to say that you can’t  have fun or go on vacation every now and again, but a recent study showed that the average American spends around $1,500 every month on non-essential items.

Even if you can cut your spending by $150 a month, that’s almost $2,000 a year that you can save toward your retirement plan! See if you can cut costs by cancelling out things that you don’t use or need like recurring subscriptions or cable.

Invest your income

If you’ve got a 401(k) though your employer and they match your contributions, make sure you’ve invested at least up to what they will match.

If you have a traditional 401(k), talk to a financial consultant about opening up a Roth IRA too. A Roth IRA is another version of a savings account for retirement. With this type of account, money that you put into it has already been taxed. After a period of 5 years, any money that you withdraw is all tax free, including the interest earned.

Wrapping up…

With the initial savings steps for retirement and taking advantage of a 401(k) and Roth IRA, you should be on the right path to saving for retirement! It will save you and your family a lot of stress in the long run and allow you to be able to fully enjoy the later years of your life. You’ve worked really hard for a long time and deserve to enjoy the fruits of that labor!

If you need any help saving, paying off debts, or setting up a 401(k) or Roth IRA, contact one of our experts today and we’ll get you on the right path.

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Save Your Home Budget By Heading Off Taxmageddon

5 Ways to Head Off Taxmageddon & Save Your Home Budget

Save your home budgetOne of the new buzzwords, “fiscal cliff”, has generated yet another buzzword, and this one is called “taxmageddon”.  We’re not too sure who thinks these words up, but they all refer to and describe the consequences that will occur if the Bush era tax cuts that will expire on December 31, 2012, are not extended. This could have an adverse effect on your home budget.

Many economists and tax experts are saying that if Congress and the President don’t act, all Americans can expect to see a rise in their tax bill in 2013. Thus far, from where I sit, Congress and the President have been “acting”, just not in a very responsible way. Each has their own View full post…

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