Many of my clients ask, “What can I do to achieve a financially successful retirement?” They want to know if there is some secret to a financially sound retirement. The answer is no, but if you have a plan, develop good habits, and maintain the willpower to stay the course you can achieve success. I will provide a few tips on saving for retirement.
The best time to start saving for retirement is now! You must understand the power of compounding interest. The more money you save now; the faster your savings will grow. If saving for retirement is a priority pay yourself before anyone else.
Now it is time to set your retirement goals. For example, what age would you like to retire? How many years do you have until retirement? How often can you contribute to your retirement savings? Think about how much you will need to retire comfortably.
Once you establish your goals set a budget to achieve them. A budget will help you save, provide a clear path to the goals you set, and help you bounce back from emergencies or events that take priority over saving for retirement.
The government wants you to save for retirement and provides numerous tax-free and tax deferred plans. Take advantages of voluntary contributions plans; such as, IRAs, 401(k)s, or 403(b)s. In these volatile times you may want to consider a wealth management advisor like KWM to allocate your investments.
My final tip is to be frugal and stick to your budget. Remember that every dollar counts when saving for retirement. For more tips or if you have any questions contact Kolinsky Wealth Management.