Everyone knows that they should be saving for retirement, but many people put it off because it’s hard to know where to start. Here’s an overview of how to make a solid retirement plan and start saving.
Get Started Now
The earlier you start saving for retirement, the better. When you’re in your 20s or 30s, retirement may seem like a long way off. But if you can put away a small percentage of your income while you’re young — and leave it alone until you’re ready to retire — that money will keep growing over time, thanks to the power of compound interest. And if saving seems impossible, here are five tips that can help you save more for retirement.
Whether you’re a seasoned worker or you’ve just landed your first job, you probably have other financial goals besides saving for retirement. When you’re also paying off student loans, saving for a house or trying to put away enough money to send your kids to college, it’s hard to know which goal to focus on first. Our Money Makeover experts can look at the big picture and help you find a balance. Just give us a call at 904-777-6000 or 800-445-6289 to set up an appointment, or visit one of our local branches.
Figure Out How Much Money You Need
Take a look at a retirement planning calculator to determine how much you need to save and how long your retirement savings will last. Think about when you want to retire and how much money you need to cover your regular expenses, plus any extras like travel or hobbies. If you can pay off your mortgage and any other outstanding debts before you retire, that puts you in a better position.
Choose a Retirement Plan
Many employers offer 401(k) plans, and that can be a great way to save, especially if your company matches any part of your contributions. You can also open Individual Retirement Accounts (IRAs) at VyStar, including traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs and IRA Certificates. And if you want to consolidate all of your retirement savings at VyStar, there are no fees for IRA rollovers or transfers.
Choose Your Investments
Many retirement plans allow you to choose from a variety of different investment types, such as stocks, bonds and mutual funds. The particular mix that’s best for you depends on many different factors.
Many people choose to invest more aggressively in stocks when they’re younger, because they know they’ll most likely have time to recover from any losses before they retire. People who are closer to retirement age often choose investments like bonds, which are typically less risky but may also offer lower returns.
Some plans allow you to choose a mutual fund that has a mix of different investment types, based on the year that you want to retire. The fund’s investment mix changes over time to include a higher percentage of lower-risk investments as you get closer to retirement age.
Get Advice from an Expert
If you want help planning for retirement or would like to talk about the pros and cons of different ways to invest your retirement savings, our experts at VyStar Investment Services are here to walk you through the details. Just give us a call at 904-777-6000 or 800-445-6289 to set up an appointment.