Investing for your retirement – what you need to do now
It may seem far off right now, but the day will come when you want or need to retire. And if you haven’t saved wisely for it, your retirement years could be long and hard.
There are several common mistakes that people make when investing for their retirement, many of them expensive. But the most expensive of at all in the long run is to do nothing.
To help you identify the right actions for you to take right now to prepare for your retirement, we’ve put together some advice for you.
Take advantage of tax breaks
One of the wisest and easiest things you can do to start saving up for your retirement is to take advantage of all the relevant tax breaks you can. Investigate whether there are any tax breaks that might be able to save you some money each year. You might just be surprised at how much you can save when you do.
Be careful investing in the stock market
If you are planning to invest in any stocks, you need to be careful. The stock market can be extremely volatile and there is no such thing as a risk-free investment. Decide whether you want to invest in high risk (with potentially higher) returns, or take a more cautious approach. Or even go for a combination of the two.
If you don’t have the time and inclination to become an expert on the markets yourself, it’s always advisable to hire the help of an investment expert.
Let your money earn interest
If you don’t already have an interest-bearing checking account, make a point of looking into getting one. Some reputable banks (such as BB&T) offer checking accounts that will pay you interest simply for keeping money parked in your BB&T account. While the interest rates on these accounts are typically low, it’s essentially free money that you can put towards your retirement.
Like many things in life, taking a fingres-corssed, scattergun approach to your retirement won’t work. Nor will changing your mind every six months.
Instead, take your time to work out a plan of action, and stick to it. Over time, little and often can add up to a nice little nest egg when you’re ready to quit working.
Contribute as much as possible to your 401(k)
And finally, contribute as much as you can to your 401(k) so you’ll have decent amount ready for your retirement. The more you put into your account now, the less you’ll need to struggle in future.