Sure, you’d be well on the way to a comfortable retirement if you’d started saving 40 years ago, but even if you don’t have that luxury, there is plenty you can do to save more for retirement. If you move quickly, you can still take advantage of compound interest, boosting what you’ve got for the future.
It’s never too late to make a plan – start saving today!
1. Get moving now
The sooner you start, the better. Even if you start saving tomorrow, you can still make an impact on your retirement options. The benefits of compound interest – the addition of interest to the body of savings or deposits – works best when you give it plenty of time to build up, but even a shorter amount of time, while not ideal, is much better than nothing at all.
2. Invest in an IRA
Individual retirement accounts (IRAs) are a traditional way to help you save for your retirement. There are different options available to you, so check them out to see which molds best to your needs and situation. Firstly, there’s a traditional IRA which, as the name suggests, has been around since 1974. If you meet certain criteria, this IRA may be tax-deductible. Since 1997, the Roth IRA has also been available. The main distinguishing feature of this product is your contributions are not tax-deductible, but the money you save inside of a Roth IRA are tax free. This means you don’t have to pay tax on the interest, dividends or capital gains that stem from the assets you’re growing in the Roth IRA. Another viable option is to do a gold IRA rollover and invest a portion of your portfolio in a gold IRA. The newest option available is to invest your IRA in cryptocurrencies. Do some research to determine which option would be best for you.
3. Over 50? Check out catch-up contributions
If you’ve done your research into IRAs, you’ll know that one of the reasons you should have started years ago is because contributions are restricted on an annual basis. The good news is that when you hit 50, these restrictions are loosened and you’re allowed to make extra contributions to help make up for the years you weren’t contributing. There are some limits, however, so check them out before making a move.
4. Shut that purse!
If you’re looking at getting your retirement in order, take the opportunity to have a long, hard look at where your money is currently going. Now is a great time to analyse your budget and see where you might be able to make savings. Plug up any cash leaks, renegotiate deals and contracts for lower rates, and reduce spending where you can.
5. Now put those savings to work
Hopefully after you’ve investigated where your money’s going, you’ve been able to make some savings. If you have and there’s now some spare cash floating around, don’t waste it! Make sure that any money you’ve saved by examining your budget is reinvested into your retirement plan, as well as any money you make, receive or find! Denying yourself completely is never a good idea but, instead of blowing it all on a luxury vacation or new car, how about spending a small portion on a fun treat, while the lion’s share goes back into working for your future?
If you’ve left pension plans on the long finger and now retirement is beginning to look more stressful than relaxing, don’t worry. The most important thing is that you’ve realized the need to do something and you’re starting today. Once you’ve got a structured plan in place, like an IRA, look for consistent and creative ways to add more funds and boost your future.
Remember – when you’re saving for retirement, every little helps!