Thursday, May 3, 2012

7 tips on saving for your retirement

There are a lot of tips that a person can use to help them to save for their retirement.

1) Setting Aside Money Each Month

This is the bare bones step that needs to be taken before anything else You must set a goal for the amount of money that you want to save each month and stick to that goal. The best way to do this is by starting off with a small amount of money in your savings amount and then increasing the amount over a period of time. This means any time that you might have some extra income coming in, put it into your savings account.

2) Planning ahead financially for retirement

You will want to learn all of the things that you are going to need in order to enjoy your retirement. Since the standard of living has been up a lot over the past years, retiring has become one of the most expensive things that a person can do. Therefore, a person is going to need to have at least 70 percent of their income saved in order to have a good retirement. A person is also going to need a financial expert to help out with these plans.

3) Retirement Savings Plan

This is necessary for your retirement saving. You must make sure to put some money into your employer's retirement savings plan. This is one of the best things that a person can do. This is because it can help to lower a person's taxes that they might have to pay, the company will usually contribute some money to the fund, and the money for the plan will automatically come out of your check. Therefore, you never have to worry about whether or not you have paid for the month.

4) Setting up a retirement plan

This is very important! If your employer does not already have a retirement plan set up, ask them to set one up. The best way to do this is to explain to your employer all of the benefits that everyone involved in the company are going to experience with the plan. Plus, everyone within the company is going to know that their retirement plan is going to be very secured by their employers. You are going to need to help your employer understand all of the benefits of a retirement plan.

5) Investing money

You need to know all of your basic investment principles. This means knowing how much money that you could potentially save along with the money that you have already saved. Therefore, a person is going to need to invest only in something that is going to make their money grow over a period of time. Some people will invest in several companies, but these companies are going to need to be financially secured.

6) Learning about social security benefits

Make sure to learn about all of the social security benefits that you could get. Most people are only going to get about 40 percent of the amount of money that they earned while working when they want to get their retirement money. Every year, a person should get a social security statement in the mail that tells them about of how much their retirement benefit is going to be as well as when they should be able to get it from social security.

7) Do NOT touch your retirement savings early

Do everything that you can to not touch the retirement savings that you have through your employers. When a person decides to draw out some of their retirement, they are going to lose the interest that they earned, the principal balance, and any tax benefits that they were getting from the retirement plan. Plus, they are going to have to pay penalties on the retirement plan when the money is withdrawn from the account.

These are the top seven tips on saving for your retirement.

Kendall Morrison works at a Utah bank, where she is proud to assist clients every day in their financial needs. She tries to look at only the positive in her clients, but if a concern rises when they are applying for a loan or credit, she only needs to check out

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