Are You Too Young For Retirement Money?
Are you too young to think about investing money into a retirement account? Do you take retirement planning serious enough? Is retirement investing a waste of good money?
If you think you have better places to spend your money and retirement planning is not one of your priorities, you may have some regrets when you get older. Now is the best time to build your financial foundation. Investing money into a retirement account is an investment into an easier lifestyle at retirement. When you get older and feel less like working and more like relaxing you will appreciate the money you socked away today.
9 Retirement Money Tips
#1 -First Things First
Invest in a retirement plan when you start your very first job. You can start out with small contributions and then increase them as you get more comfortable with your finances.
#2 – Automate It
If your employer offers a 401(k) plan set up automatic contributions with your payroll company; you will not miss the money. The contributions are tax-deferred.
#3 – Match It
If your employer matches your contributions, and you can afford it, max out the contribution amount. Your employer will be handing you free money; who can turn free money away?
#4 – IRA It
If your employer does not offer a 401(k) retirement plan, invest in an Individual Retirement Account. You can tax-deduct and tax-defer contributions into a Traditional IRA. With a Roth IRA, your contributions are tax free at withdrawal.
#5 – Skip The Credit Card
Find more money to invest in your retirement plan by only using your credit card if you can pay the balance off in full every month.
#6 – Credit Score It
Check your credit score once a year. Mistakes do happen; you will only know about them if you monitor your credit score on a regular basis.
#7 – Be Good
A good credit score comes from paying your bills on time, not exceeding your credit limits and never missing a payment.
#8 – Learn As You Go
Learn about investing. Knowledge is power. Investment knowledge could help your investment growth, If you understand asset allocation, diversification, risk tolerance and time horizons you will become a better investor.
#9 – Always Be Prepared
Dipping into your 401(k) plan for financial emergencies is the wrong financial move. You invested into a retirement account for your future, not your day-to-day money needs. Withdrawing from a 401(k) account or IRA will cost you in taxes and maybe even penalty fees. Always have at least enough money in your rainy day account to cover all of your expenses for 12 months.