Retirement should be the phase of life where you kick back and relax. After many years of hard work, the last thing you should worry about is having enough money to enjoy your time. Saving for retirement is a process that should start early. Here are some tips to make the process as painless as possible.
1. It’s Never Too Early or Too Late to Start
Whether you’ve just started your first job or you have an established career, it’s never too early or too late to start saving for retirement. Start saving young to accumulate more wealth over time, which will pay off down the road. Get into a routine of saving early in life to make it easier on yourself!
2. Know Your Options
401(k), IRA’s, Roth IRA’s, there’s so many different options, which one is best suited for you? Educate yourself on the difference between the different types of retirement accounts and find one which is best suited for you. Whether it is a 401(k) through your employer or a Roth IRA that you start yourself, different options are better suited for different people.
3. Set Goals
At what age do you want to retire? Do you plan on a full retirement or continuing to work part time? Do you plan on moving and buying a new house or remaining where you are? Sit down and write out your goals. This will give you a better idea of how much you need to have saved as well as how much you should begin investing.
4. Know the Power of Compound Interest
Albert Einstein once said Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.Understand the concept of compound interest and let your money make money for you!
5. Check with your Employer Regarding Retirement Plans
Many employers will offer some type of retirement plan, most commonly a 401(k). Check and see if they offer any matching of contributions. Take advantage of this, your future self will thank you!
6. Put those Savings Bonds to Good Use
Remember those savings bonds that Grandma and Grandpa got you for Christmas when you were a baby? Put them to good use! Instead of cashing them and spending them, put those dollars into a retirement account to use down the road when you really need it!
At Wallkill Valley Federal Savings & Loan, we want to be not only your source for all your banking needs, but also your source of information for all your investment needs. If you have any questions about our IRA’s or any other retirement questions, feel free to give us a call at (845)895-2051.