5 Ways To Plan For Your Future Retirement
A lack of money prevents many people from retiring when they would like. Some underestimate how much money they need, while others assume that social security payments will be enough to carry them through retirement.
The earlier you can start preparing for your future retirement, the better. Whether retirement is just around the corner or many years down the road, here are five ways to plan!
1. Hire a Top Financial Advisor to Guide You in the Right Direction
Navigating your finances is no easy task, but a financial advisor can point you in the right direction when it comes to planning for retirement, investing, and more. You just need to find one you trust!
WiserAdvisor makes the challenge of finding a top-notch financial advisor a whole lot easier. This company is the largest online network of pre-vetted financial advisors in the world.
All of the network’s financial advisors must pass a strict set of requirements, have a clean record, and be registered with FINRA/SEC. What’s more, all advisors are either fee-only or fee-based, so it’s easy to determine how much it will cost to work with them. At WiserAdvisor, you can even view the entire financial advisor directory and view details about an advisor to determine if they are the right fit for you.
While you’re at it, check out WiserAdvisor’s blog, where you’ll find all types of helpful information about retirement, saving, investing, and more. Find the perfect financial advisor for you via WiserAdvisor today!
2. Enjoy the Tax Benefits of an Individual Retirement Account (IRA)
An IRA is one of the best tools to have at your disposal when it comes to planning for retirement. This type of investment account offers a handful of benefits, including allowing you to defer taxes on your earnings until you take distributions in retirement—at which point, you may be in a lower tax bracket.
With Equity Trust, you can open your very own self-directed IRA with minimal administrative fees. A self-directed IRA allows you to choose what you wish to invest in, whether it’s stocks, real estate, precious metals, or something else.
What’s more, Equity Trust makes it easy to open your IRA. It’s as simple as opening an account, funding it, and making your self-directed investments. If you need any assistance, simply book a free one-on-one consultation with an Equity Trust expert counselor.
Open your self-directed IRA today to join over 237,000 people who use Equity Trust as the custodian of over $39 billion in total retirement assets.
3. Max Out the Employer Match Benefit on Your 401(k) Account
If your employer offers a 401(k) plan and you aren’t using it, you could be missing out on free money towards your retirement.
Beyond giving your money the chance to grow in an investment account, a 401(k) often includes an employer benefit—where your employer matches your contributions up to a certain percentage of your annual salary.
By maximizing 401(k) contributions on an account with employer matching, you could end up adding thousands of dollars to your total retirement fund each year.
4. Use Catch-Up Contributions to Skyrocket Your Retirement Savings
If you’re over the age of 50, there are ways for you to boost your retirement savings in a relatively short amount of time. Namely, you may be eligible to make catch-up contributions on your various retirement accounts—including a 401(k) or IRA.
Catch-up contributions are additional contributions that allow you to exceed the annual contribution limits, build your portfolio, and defer even more of your tax liability until retirement.
If it’s a plan with employer matching, your employer might even agree to match your catch-up contributions—depending on the terms of the plan.
5. Make Your Monthly Savings Automatic
If you struggle to save money, you’re not alone. But saving is a must if you hope to retire on time and have enough money to live the lifestyle you want in retirement.
Of course, one of the easiest ways to combat this struggle is to automate your savings. Each month, money will be transferred directly to your savings account and you won’t have to think twice about it. Many experts recommend saving 15% of your annual wage.
To make your money go as far as possible, shop around for the savings account with the highest interest rate. Putting money aside in this type of account will give your money the best chance to grow and beat inflation.