Saving for retirement is essential. When you save for retirement you are saving for your future. When you neglect retirement you run the risk of not being able to take care of yourself when you are older says Miriam Caldwell, personal finance specialists.
A lot of people start saving for retirement when they start ageing. Experts say that is not right, rather you have to begin saving for retirement as soon as you get employment.
According to her your retirement goals should come before saving for your children’s education or going on vacations. The earlier you start saving the less you will need to put aside each month to reach your retirement savings goals. As you plan for the new year, you should also consider these other financial goals so that you can fix your overall financial picture this year.
How then do you begin saving for retirement? Caldwell said If you haven’t started saving for retirement you need to start with a plan in mind. The easiest way to begin saving is to take advantage of any employer plan that is offered.
You may want to invest beyond that or you may be wondering how to allocate the funds that you invested. It is important to fully understand the benefits of each retirement account. Learn what basic things you need to do to get started.
She said one key question is how much you should save for retirement each year and each month. Most experts agree you should be putting about fifteen percent of your salary towards retirement. This amount may seem like a lot if you have not even started, but you can work your way towards this number.
Learn tips that can help you start small and still reach your retirement savings goals. Even if you feel like you can’t afford to save for retirement, you need to start saving today.
Caldwell says you are self-employed, you need to begin planning for retirement right away. You will not have the opportunity to take advantage of employer matching programs or the ability to purchase stock options. It is essential that you have a plan that you follow from the moment you first become self-employed.
As you mature, so must your retirement planning priorities and strategies. Recognising possible different investing approaches and taking advantage of tax planning opportunities are critical components to achieving financial independence.
By: HOPE MOSES-ASHIKE
