How to Start a Retirement Savings At Any Age

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How to Start a Retirement Savings At Any AgeFew financial decisions are as important as retirement. If you want to live comfortably in the golden years of your life, you have to begin planning for them early. There are many ways to save for retirement, and you may want to use a variety of methods to save as much as possible.

1. Get a savings accounts

No matter what age you’re starting to save at, a savings account is a relatively safe option for new savers. You can start saving for retirement as early as your teenage years by putting some of your paychecks into a savings account. You always have the option of moving the money to a more aggressive retirement plan later.

Also read Three Things to Do Right Now to Improve Your Finances

2. Take advantage of a 401k plan

Nowadays, many companies have 401k plans for employees. These plans are hands-off, in that the financial advisor for your company invests your money in different ways depending on when you’re planning on retiring. The big bonus of a 401k, though, comes in the form of employer matches. Many employers match a certain percentage of your income as long as you contribute the same amount to your 401k. For example, a company with 3% matching will put 3% of your pre-tax salary in your 401k as long as you also put in 3% of your salary.

Also, make Sure to grab the FREE online Budgeting Tools at Learnvest:

3. Sign up for an IRA or Roth IRA

An IRA or a Roth IRA are both popular choices for retirement funds. You can set up either with a financial advisor. A traditional IRA gives you tax breaks in the year in which you invest money. A Roth IRA allow you to claim tax benefits when you withdraw your money. Different situations call for different types of IRAs, so you may wish to consult with a financial advisor!

Also read Living Within a Budget – It’s Not as Hard as You Think

Retirement is an important part of your life, so don’t shortchange yourself by skipping out on saving now.

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Comments

  1. Meg says

    Very sound advice. At 43, I am just now learning about investing. I’ve had TSP (Thrift Savings Plan…similar to 401(k), but for the Govt. with employer contribution matching (5%)). My mother-in-law convinced me to diversify my funds in my TSP instead of just leaving it in the G fund (a more fixed fund). She also convinced me to buy stock in a couple of companies on DRIP so that it just keeps re-investing out of my pay without me seeing it or having to do anything…I get paid bi-weekly so it’s getting reinvested twice a month. I’m also shopping around for a Roth IRA and buying bonds bi-weekly. I wish I had started younger, but I have encouragement knowing that my mother-in-law started investing in her 40′s and is so financially secure and independent that she never has to worry about finances. She pays herself in her retirement and takes several International trips a year. I’m trying to convince my nieces (in their early 20′s) that they should try to at least put away $25. out of their pay check a month into a Roth IRA, but they won’t do it because, like me in my 20′s, they want instant gratification. I’ve shared some of your blog posts on Facebook with them (always giving you credit and the link back to your blog) hoping that I can eventually convince them to start now. Anyway, thanks for the sound financial advice.

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