For young people in their 20s and early 30s, retirement can feel–and indeed is–a long way off. But that doesn’t mean that you shouldn’t start saving for retirement now; in fact, the opposite is true. The more that you start saving now, the better off that you will be by the time you’re ready to stop working. Here’s how you can start on the path to having enough money to retire by the time you’re 65–
The very first thing that you should focus on when saving for retirement is to just put money away, any amount of money. Even if you can only afford $10 a month, over 30 years, that money will grow, giving you a nice little (yes, little), chunk of change. If you’re bad about holding yourself accountable to saving, set up a direct deposit account.
The other tip is to start putting money away early. That doesn’t mean it’s too late if you’re in your 40s, but it does mean that if you’re in your 20s, you should heed this advice.
Many employers will match up to 50 percent of an employee’s 401(k) contributions and, sometimes, even 100 percent, up to a specified maximum. Take advantage of this. If you’re not maximizing your employer match offering, you’re giving away free money.
You may feel like merely having a 401(k) is enough, or you may be very happy to take advantage of your employer’s discounted employee stock purchase plans. However, be careful about putting all of your eggs in one basket. It’s smarter to diversify by not heavily concentrating on one particular stock. And, you may want to consider additional and supplemental saving options, such as a Roth IRA in addition to your 401(k).
One of the biggest mistakes that people make when trying to grow their wealth and understand their investment options is that of failing to turn to a professional for advice. Investment Advisor Representatives (IARs) and Certified Financial Planners (CFPs) are seasoned in smart financial practices. If you’re unsure about where you should be investing your money, how much money you should be investing, or how to save otherwise, a professional can answer all of your questions.
To learn more about 401(k) options and how to start saving for your future now, reach out to the team at Harvest Wealth Partners by phone or online today. Our experienced professionals can offer you the advice, guidance, and counsel you need.
Harvest Wealth Partners is committed to helping our clients work towards a successful future. We believe in your potential to understand the financial options that can lead you to your goals. Call us today to partner with our team. We look forward to continuing our mission for years to come.
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