According to GoBankingRates, 42% of Americans have less than $10,000 saved for retirement and 14% have nothing saved. Although it can seem daunting to save enough to last through your retirement years, it isn’t impossible. In fact, the hardest thing about saving for retirement is just getting started. Consider these tips:
- Start saving now – Look at your budget for areas where you can cut spending and then aim to save at least 10% of your income for retirement.
- Participate in your 401(k) – Participate in your employer’s 401(k) and take full advantage of any matching contribution. The money you save is automatically deposited into the plan before it’s taxed.
- Get an IRA – If you aren’t eligible for a retirement fund at work, sign up for a Traditional or Roth IRA … or both! Contributions to a Traditional IRA are tax-deductible, meaning every dollar you contribute reduces your taxable income. Roth IRAs, on the other hand, are funded with after-tax dollars. You can’t deduct contributions, but you don’t pay taxes when you withdraw.
A retirement plan can help you ensure that you have enough retirement savings to live the life you want to live. Put yourself on the path to retirement success by saving now. For additional expertise on how to get started, contact on in-house Investment Advisor!