Your Retirement, Your Way
Accumulating enough money for the retirement of your dreams is still possible. The best advice you can follow about retirement planning is to stop listening to the negative chatter about dream retirements not being attainable. They are attainable if you follow a few simple retirement rules.
#1 – Set Your Savings Goals
Before you hope to achieve any time of retirement goal, you must have a plan. Without a target or goal to aim towards how will you ever know if and when you have achieved the goal? Putting your action plan and savings goal in writing holds you more accountable to yourself.
#2 – Use Your Time Wisely
When aiming towards your retirement date, time is on your side, don’t miss the opportunity. Whether you are starting your career or nearing the end of it maxing out your 401k investing is the right investment move to make. Starting out, you have lots of time for your investments to grow. If nearing the end of a career, dumping as much money into your 401(k) as possible makes up for lost time.
#3 – Taking It To The Max
There are 2 financial advantages to maxing out your 401(k) contributions. One, you receive more free money if your employer matches your contributions. Two, you pay less in taxes because your taxable income is reduced. Free money and lower taxes are a two-for-one that you just can’t afford to pass up.
#4 – Forced Is Good
When your 401(k) contributions come directly out of your paycheck you are forcing yourself to save for your retirement with little financial pain. Believe it or not without realizing it you will adjust your discretionary spending to the amount of money left in your paycheck.
#5 – Fear Not Oh Weary Investor
Fearful investors are doomed investors. It’s okay to be careful and cautious about your retirement money but not to the point where your fear paralyzes you. Markets dip and spike, view market dips as your buying opportunity. When the market is down, stocks are on sale.
The doom and gloom of the financial media and some financial advisers can sometimes be overwhelmingly negative. They do not have a crystal ball, they do not know which way the markets will twist and turn. So your best financial move is to rely your financial instinct and follow the 5 simple rules to maximize your retirement.