Just Starting Out? 4 Tips to Start Thinking About Retirement
It may seem strange to suggest that young people new to the workforce start planning for retirement- but especially as Social Security, pension plans and employer-match programs continue to dry up, planning early and revisiting your plan often is absolutely necessary. So even if you’re quite young, or have a young person in your life, thinking about retirement now will save you a lot of financial worry later.
If you want to retire, starting your working life off with the right financial habits is half the battle. Here are four tips to start planning for retirement:
- Make the match: If your employer offers a matching 401k plan, join! Not only are these kinds of plans quickly disappearing (so you should take advantage while you have access), they are a great way to make an 100% return on investment, something you will never see in the markets!
- Saving might be hard- but it’s important: We know that, as a 20-something, your paycheck is probably pretty small and that you have lots of other financial obligations: rent, food, student loan repayments, the works. But saving even $600 a year could give you $72,000 by the age of 65, twice as much as someone who starts saving $1,200 a year at age 45, according to LearnVest.
- Open an IRA: If you don’t have access to a 401k, open an IRA. These contributions are tax deductible if you don’t have a retirement plan through your job.
- Start saving early: If you work part-time, through a fellowship program, or freelance, you might not have the ability to save now. But don’t put it off forever. The earlier you start saving, the better off you’ll be down the line. Even a very small amount of money gets you started on the right track to a healthy financial future.
iPlanGroup can help you figure out if and how self-directed investing can help you get started with your retirement goals. Not sure about those goals? We can talk about that, too. Just give us a call at 1-855-604-7526 or visit us on the web www.iplangroup.com