Here are basic ways to help plan for retirement when you’re in your 20s and 30s…
Sign up for your employer’s 401(k) or don’t opt out if you’re auto-enrolled
If your employer contributes to your 401(k) contribute at least enough to capture the employer’s match. You’ll want to boost your contribution by 1% per year or more. Ultimately, your goal should be to save at least 15% of your salary, including the employer match. Taking this action alone will get you closer to the big bucks way quicker than your buddies that don’t. They’ll likely still be working while you sip on Pina Coladas at your beach home talking to your grandkids on the latest communication device.
Make sure you’re invested appropriately.
With decades ahead to invest, you can afford a bit more risk. Consider loading up on stock mutual funds and stock index funds.
Take advantage of the retirement savers tax credit if you’re eligible
All you need to do to qualify for this valuable tax break is to contribute to retirement savings plans and earn less than a certain amount.
It’s worth up to $1,000 if your single with an income of $27,750 or less and if you’re a head of household with an income up to $41,625. If you’re married with an income of $55,500 or less, it is worth up to $2,000 for you and your spouse. That’s on top of the usual upfront tax breaks for 401(k) and IRA contributions.
Obviously, I cannot cover all of the nuances of retirement savings plans during your 20s and 30s in a single article. Start with these items, do your own research and you will be well ahead of your peers.
Jan Petreczko “Debt Reduction All-Star Gives Free Advice to Help Knock Your Bills Out of the Park”
From Jan Petreczko – the “Debt Reduction All-Star Giving Free Advice To Help Knock Your Bills Out of the Park” Get FREE information Here and Here
