Entitlements such as retirement are always a hot-button issue. Now, more so than ever, younger generations are becoming aware of the benefits of saving for the future. As the cost of living rises, smart financial decisions early on can be the key to a happy and secure retirement.
Experts agree that the earlier you start saving, the better. Start now and compounding interest will work in your favor! The sooner you start tucking away dollars, the better it is for your long-term, financial wellbeing.
Take advantage of any and all tax benefits offered by the government and/or your place of work. In general, employers will offer contribution matching to stay competitive in the market and attract top talent. If you employer doesn’t match, there are other options. Focus on investments that generate the highest current income and reap the rewards of your retirement account structure.
Remember to play it safe as you approach retirement age. When you’re just a few years from retirement, there is less time to recover from a setback. It’s in your best interest to keep a safe portfolio as you approach retiring age to secure your savings despite any market fluctuations. Manage your risk by balancing less predictable investments with bonds and other lower-risk assets.
Finally, don’t ignore your portfolio and assume everything is under control. Approach it like you would any other financial account and keep watch over all generated income and investments throughout the years. Saving for retirement doesn’t have to be difficult or time consuming. It just involves getting started. With some discipline and early planning, you can ensure that you are adequately prepared when the big day comes – and you’ll have a nice little nest egg to prove it!