Some people view their retirement years so far off in the distance that saving for them is not a top priority. Before long, time has crept up and panic kicks in on whether it’s too late to start building a nest egg. The encouraging news is, with a plan and due diligence, you can begin to stock away funds for your golden years.
How You Can Start Saving for Retirement Now
1. Pay Off Debt
The sooner you pay off credit card and other debt, the more you can save for retirement. Start with the largest financial obligations and come up with a deadline to eliminate them. Use a tax refund or bonus to make a sizeable dent. The money you would have used to make debt payments can be channeled towards your retirement fund.
2. Calculate Living Costs
Look at your current income and expenses. Determine how much you would need to financially maintain yourself during the retirement years. If you’re a homeowner, will the mortgage be paid off by the time you retire? Not having to pay a monthly home loan payment can offer much more wiggle room. You may have to make some adjustments, such as taking in a roommate or scaling back unneeded expenses.
3. Take Advantage of Company Plans
If your employer offers a 401(k) plan that matches your contributions, sign up, if you haven’t already done so. Try to contribute as much as you can to grow your retirement fund faster. Self-employed individuals should also take advantage of individual retirement accounts and other savings tools to kick-start their nest eggs too.
4. Arrange Automatic Deductions
Another way to boost your retirement savings is to arrange for regular automatic transfers. A good rule of thumb is 10% of your monthly income. Set up payments so that they automatically transfer on paydays to a money market, CD, or other savings account.
If you’re still uncertain on how to begin preparing for retirement, Modern Woodmen | Scott S Paterick CLU CHFC can offer professional and personalized guidance. Based in Wisconsin Rapids, the financial advisor specializes in providing customized solutions for his clients’ unique needs. To get started on building a retirement fund now, call Scott at (715) 424-1873 to schedule a consultation. Visit the website for extensive information on other services, including financial planning and life insurance.
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