Retirement may be right around the corner for you, or it may be years away. Regardless of how far off it feels, you should be saving now to ensure that you’re able to enjoy your retirement.
If the thought of retirement makes you a little panicky, the start of a new year is a great time to set savings goals to help you feel more prepared for the future. Consider these resolutions as you plan your finances in 2018.
Save the Minimum—and Then Some
The best way to start preparing for retirement is to take advantage of any company match offered through your employer-sponsored plan. If your employer doesn’t offer a match, start by contributing a small percentage of your salary like 6%, and steadily increase that amount each year. Some plans even give you the option of automatically boosting your savings every year.
Invest Extra in an IRA
If you don’t have access to a qualified plan with your job, or if you simply want to supplement your retirement savings, consider opening an IRA. You’re permitted to contribute $5,500 to an IRA in 2017 and 2018—and an extra $1,000 if you’re over age 50. These accounts offer a great way to save extra funds, as well as some tax benefits.
Simplify Your Saving
The easiest way to reach your saving goal is to set money aside before you have the chance to spend it. Set up automatic contributions to your employer-sponsored retirement plan or IRA so the funds will go directly to your retirement savings each paycheck. You can’t miss money you never had, and automatic contributions can help you avoid the temptation to spend what you should be saving.
Make Budget Cuts
If you’re having trouble finding money in your budget to contribute to your retirement plan, think about changes you can make to your lifestyle. Dining out less or cancelling a magazine or cable subscription that you rarely use can free up funds for you to put toward your future. If you’re unsure where to make cuts, track your spending for a few months and see where you may be overspending.
The idea of saving up enough to support you in retirement may be overwhelming, but with thoughtful planning, careful saving, and the benefit of time for your money to grow, you can set aside funds now to make your future the best it can be.
For more information on planning for retirement, contact us today at 877.616.5204 or retirement@agfinancial.org.
This information is not legal or tax advice. Information is from sources deemed reliable. Information is subject to error, omission, withdrawal, or change. Contact your own legal or tax advisor before taking any action that would have a legal consequence.
