By now, the adage “save as early as possible for retirement” has become a banality, and for good reason. According to CNBC it is common for most people to aim for the future of their investments to overall make about 80 percent of their current income. With this in mind, it is important that you consider your future finances now and start saving for financial security.
Figure Out Where You’re At Right Now
If you’re at your early 40’s and you haven’t begun investing in a retirement account, you’ll need larger monthly deposits to make up for the time and funds you’ve failed to invest in the past. On the other hand, someone in their early 20’s will have more time to build an adequate retirement account. Keep in mind that both age groups have unique financial situations to work around with. For instance, younger adults may have a hard time starting a retirement fund if their entry-level salaries are barely enough to cover student debt. Assess your current situation and financial needs, and anticipate what your future financial needs will be. After you have this information, you can realistically plan what you need to save now for the future.
Take Advantage of a 401(K)
Specifically, get a 401(K) match from your employer. This can significantly accelerate your retirement savings if you do your homework. Most people’s interest in 401(k) and other similar plans are bogged down by the complexities and bureaucracies surrounding the matter. However, it’s really a simple financial product or tool for retirement savings. If you get a yearly match of $1,500 on your 401(k), it takes only 35 years and a yearly contribution of $5,475 to make your first million for retirement. When considering a prospective job or career, it is important to consider investments and how your company will invest in you. If they offer a generous 401(K) match, that may be important to you and help you make a decision.
Be a Wise Planner and Investor
Sometimes, it’s not the lack of cash that restricts a person from saving for retirement, but the lack of knowledge on where to invest it and how to properly manage their portfolio. Financial planning services is a good way to fill this knowledge gap easily. Professionals, like those found at Millard Beatty Associates, can help you make sound investment decisions that contribute towards a better future. They also help in other financial aspects including efficient management of taxes and preservation of assets through utilization of different investment products and strategies.
Build Passive Income Earners
This can be a blog that scoops up revenues through pay-per-click campaigns or a YouTube channel that gets paid thanks to hundreds of thousands of views. Regardless, it’s important to have passive income earners that will continue to make money for you even after you retire. Try to start with something that you are good at and is very passionate about.
The most important tip you should heed is, start today. There is no better time to start saving for your financial future than today.