October 18 - 24 is National Save 4 Retirement Week, is a national effort to raise public awareness of the importance of saving early. The U.S. Congress thinks it’s important for Americans to reflect on their personal retirement goals, and determine if they’re on target to reach those goals, therefore, the lawmakers designate one week in October to focus on the issues.
How do you start saving for retirement or how do you save more?
It’s never too late to start saving. Begin by contributing to your employer’s retirement plan, no matter how small of an amount. At a minimum, contribute what your employer will match. You are in control. Utilize automatic transfers to your bank account and IRA accounts. Increase your yearly contributions with each raise you receive. Take advantage of delaying taxes until you withdraw money.
Even making a small change, such as eliminating spending $2 a day for vending machine purchases, can result in a savings of $60 per month, or $14,400 over 20 years (not including investment return).
IRAs compliment your employer retirement plan and help you to save for long-term goals with tax advantages and flexibility. It’s so easy, you can even open an IRA online. Don’t let investment decisions intimidate you. There are a number of funds to select from. Build your own portfolio or keep it simple and diversify or have a professional do it for you.
Saving can mean sacrificing. Aren’t you worth it?