3 Ways to Save More for Retirement
Filed under: Retirement
You hear it all the time: Save all you can for retirement! But if you feel that you’re already saving as much as you can, does this mean you will enjoy a stable retirement? Or is it possible that you need to save more, and you’re overlooking some valuable opportunities?
When we sit down with clients to discuss their retirement strategies, we often find that people really could be saving more. More importantly, they should be saving more, because most of us will probably live 20 or 30 years after we retire! Take these steps to save more for retirement, and you will be less likely to outlive your money.
Take a look at your most recent pay stub. Did you sign up for automatic deposits to your retirement account years ago, when you first got your job? Chances are, you’re making more money now than when you first started your career. If you’ve received a few raises since then, you should also increase the amount that you contribute to your retirement account. If your company offers matching funds, make sure you’re at least contributing up to the maximum match amount. If not, then you have been saying “no” to free money.
Save for emergencies. If you ever experience a financial emergency, you could be tempted to borrow from your retirement account, which will cost you years in meeting your savings goal. Other people take on huge credit card debts, and later find it difficult to recover. Stashing a little extra money in a savings account each month can ward off the need to borrow during an emergency.
Plan for college expenses. If you’re contributing the maximum allowable amount to your retirement fund, start planning for your children’s college expenses so that you don’t find yourself in a bind when tuition bills arrive. You can make tax-deductible contributions to a 529 college savings account, and you won’t have to pay federal income taxes on distributions that are used for qualified higher education expenses.
If you’re worried that you aren’t saving all you can for the future, make an appointment with your financial professional. Together you can review your financial capabilities and needs, and craft a plan for a more stable future.