Most people think that planning for retirement starts when you’re middle aged, but in reality you should start as soon as you can. Here are some tips on how to begin retirement planning no matter how young you are.
Starting Early
Time is a powerful tool when it comes to retirement planning. The earlier you start the more you can grow your money with compound interest. This can greatly amplify your savings and can turn small contributions over time into massive gains by the time you retire.
Corporate Benefits/Retirement Accounts
Retirement accounts like 401(k)’s and IRA (Individual Retirement Accounts) offer tax advantages and can boost your retirement savings. Many employers will match a percentage of your contributions to a 401(k) which is free money towards your retirement.
Retirement Goals
Consider what life you want to live in retirement, do you want to travel, maintain a comfortable home, or pursue your hobbies? Maybe all of the above! Specific goals will also help you save more money, since you have clear visions on how to spend it.
Stay Disciplined and Patient
Retirement planning is a long-term commitment. There is a lot of temptation to withdraw money early and spend it on impulsive investment decisions. Keep your eye on the prize!
Adjustment
Life will throw many challenges your way and you will have to adjust your retirement contributions. It is ok to lower your contribution to make ends meet as long as you see the big picture and invest in your retirement.
Remember that Nymeo members have access to our Financial Advisor Geoff Tomasetti, who can assist with Retirement Planning.
Category: Financial Literacy & Safety
