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It’s something we all look forward to after decades of hard work. Retirement is, if nothing else, a reward for turning up to work on time, doing an honest job and for looking after those we love when we’re not in the office. Once we’re ready to clock out for the final time, we can look forward to doing as we please. But none of that is going to happen unless you don’t start saving for retirement in your 30s or sooner. You need to have a solid plan in place if you want to succeed.
Why You Need to Start Today:
Planning for retirement is not just imperative by the time you’re in your 30s; it will be absolutely critical to your survival later on in life. Unfortunately for a lot of people they falsely believe that Social Security or their employer will take care of them when they reach old age.
In the U.S., we don’t have a state-sponsored pension plan like they do in England or in other countries. The citizens from those places can rely on the government to send them money or use a service such as My Pension Expert to increase their potential for retirement income. Americans are eligible to receive Social Security by age 62, but it is not anything close to what they were probably receiving during their working years.
Every since the 1980’s, there has been a massive exodus of employer pensions by private companies and government job positions alike. Plans such as this were big and bulky, and not to mention often mismanaged. So now they have pushed the responsibility of saving for retirement onto the employee themselves.
This is why it is so absolutely critical that you start saving for retirement in your 30s or sooner if possible. The longer you wait:
- The more you’ll need to save up.
- The less time you’ll have to work with.
- The more risky investments you’ll need to take on.
- You’ll miss out on the tremendous benefits of compound interest.
So why not do yourself the biggest favour in the world by getting your personal finances in order?
It’s Not Too Late to Start Saving for Retirement in Your 30s:
Your 30s are not too late to start saving. Even though saving in your 20s would have been better, there are still many strategies you can use to maximize your potential. Here are a few tricks you can try:
- Start right away! The sooner you begin saving, the quicker compound returns can work their magic and generate more retirement income for you.
- Start contributing to a 401k employer plan and max it out to the full $17,500 maximum amount each year. Not only will get a giant tax-deferred benefit from that savings, but you’ll also likely maximize your employer’s matching contribution if they offer one.
- Start a Roth IRA and max it out as well.
- Diversify your portfolio by funding it with a solid combination of bond and stock funds.
- Stick with low cost index-style funds. Do not get greedy chasing exotic or risky investment prospects.
There is so much to think about when it comes to planning your future. But saving for retirement in your 30s is not one of them – it’s a no-brainer. Having a plan in place as early as possible can save you valuable time later on with the fortune you have worked so hard to claim.
- When Can I Retire – It All Depends On How Badly You Want To!
- How Do You Compare to the Average Retirement Savings of Other Americans?
- The Roth IRA Basics and What You Need to Know to Get Started Today!
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