Time passes fast. If you looked at your savings now, do you think you’ll be ready for retirement? At what age do you want to retire? Do you have a plan to get there? These are some pretty heavy questions, but the more you save and prepare now, the more comfortable your retirement will be. Everyone spends and saves differently, but here are some tips to help anyone be more retirement ready.
- The Company Match
Don’t pass up on free money! A lot of employers are willing to match the money you save into your 401k, but only up to a certain amount. No matter how much they are willing to match, anything that they are giving out is free in a sense. When you leave the job, your 401k goes with you!
- Investing Young
Although time passes fast, when you’re young there’s still time to take risks. Invest aggressively early on. Up until 3 to 5 years before retirement, the majority of people can still afford to take higher risk investments.
- The Goal
I know it seems impossible, but the ideal amount of your income to save is 15%. This is the goal, but keep in mind that there will be times that you don’t come close. Life happens on life’s terms, and sometimes that comes with unexpected expenses. When things settle, remember the goal.
- Save for tomorrow, Don’t Forget Today
While saving for tomorrow is the big takeaway from all of this, don’t neglect your financial responsibilities today! If you can’t save 15% of your income and still pay the bills… pay the bills. Save as much as you can, but don’t cause yourself stress doing it.
- Stay Engaged
Know your investments, their risks and rewards, and how they work for your benefit. Stay engaged and proactive about your future. You don’t need to be an expert, but it’s important to have a general understanding of things.
- Don’t Panic
Try to relax when you see the market downturn. If you aren’t planning on retiring in the next 5 years, not only will your investment portfolio survive a market crash, it will benefit from it!
Saving For Being Ready
Save more today and your future self will thank you. Dover Federal members have access to a dedicated financial advisor through our Investment and Retirement Center. Our advisor can help you identity your retirement goals, make a plan to reach them, and access a full range of financial solutions.
No matter what your retirement goal is or what life throws at you, we’ll help you get there, wherever that may be.