It’s never too early to start planning for your retirement. Even if you’re in your 20s, smart saving strategies and help from a trusted CPA will pay off in later years. Try these tips if you want to enjoy a more secure financial future.

How Can I Successfully Plan for My Retirement?

1. Start Saving ASAP

Saving is difficult for people living paycheck to paycheck or those just entering the workforce. However, putting off saving to a later date will cost you. Think of areas where you can cut back on spending. Maybe you dine out a lot or buy a cup of coffee each morning. By cutting these expenses, you’ll have more money to work with each month, which can be tucked away. To start, try putting away around 10% of your income.

2. Research Your Investment Options

Look into your retirement planning options. 401(k)s are provided by employers, who often match funds contributed by workers up to a certain percentage. There are also Roth IRAs, which take after-tax funds out of your paycheck to be put into the account. If you’re not sure which option works best for you, consult with a CPA.

3. Create an Emergency Fund

Along with investing, make sure you have a solid emergency fund at your disposal. When unexpected expenses pop up, paying with credit cards or taking money out of your paycheck will only set you back financially. Additionally, withdrawing from a retirement account early will result in a penalty, which is typically around 10%. Set aside an emergency fund that will cover at least six months of living expenses so you can avoid harming your credit score or inhibiting your ability to pay bills.

Not only can CPAs help with tax preparation and bookkeeping, but they can also provide guidance for retirement planning. That’s exactly what Donna Troutman CPA, PC offers clients in Lewisburg, PA. With their assistance, young people can devise a solid financial strategy to carry them through adulthood and into retirement. Other services include tax preparation, payroll assistance, tax planning, preparation of financial statements, consultations, and assistance with QuickBooks™ software. If you’d like to see the full listing of services, visit their website. You can also call (570) 523-7337 to schedule a consultation with this skilled certified public accountant.