Quick Tips: Saving for Retirement
Retirement savings can feel overwhelming. While it is important to do your research on which account types work best for you, we have gathered some quick, universal tips on savings for retirement.
While paying down debt is important, do not wait to be debt free to start. The sooner you start, the quicker you will see compound interest. This is when your money begins to make money, as what started as interest itself begins to earn interest. Let your money work for you. If your company offers a 401k plan, take advantage of it as soon as possible.
How much will you realistically need to retire? Consider how much it would take to maintain your lifestyle. While your expenses may decrease over time, it is important to remember that inflation will inevitably cause prices to rise. At Goodman, our advisors can actually help clients estimate their retirement expenses, inflation, distribution needs, and amount needed to retire. It is important to protect yourself (and your budget).
Automate your savings
Whatever your budget allows, automate it. Your goal should be to save 10-15% of your pre-tax income, but do not wait until you are able to commit that amount. If you can only do 5%, do 5%. Small savings are better than none at all. Instead of relying on yourself to make the transfer, automate this amount to pull from your account each pay period. Keep this consistent by making retirement savings part of your budget.
Talk with Goodman Financial
We can help you choose your path forward to retirement, identify risks you may face along the way, and incorporate flexibility into your plan to allow for adjustments, if any changes arise. Our goal is to help you enjoy the retirement you’ve always dreamed about. Think you are ready? We can help determine if you are financially prepared to retire.