Planning your retirement is not as difficult as it may seem. The most important thing is to simply get started. Here are five ways to begin planning your retirement without any stress.
1. Start saving – as soon as possible. By saving money now, thanks to compounding interest, you will have a certain amount to count on later in life. Make sure to save enough and according to your current lifestyle, but start saving right away, as each year that passes can be costly.
2. Don’t forget the IRA’s – with regards to your income, tax filing status and ability to contribute to a workplace retirement account, there is a chance your IRA contribution might be tax deductible. This will additionally save you money on this year’s taxes.
3. Roth IRA is a great solution – even though you will not receive any tax deduction for a contribution you make, your money is still allowed to grow tax-free, which makes it an ideal place to start your saving.
4. Use your 401(k) plan – not available to all employees, but those who have it, should make the most of it. Thanks to such benefits as tax-deferral and automatic savings, users of this plan will see their account balances grow faster than previously thought is possible.
5. Employer matching program equals free money – if your employer offers a matching program as part of 401(k) plan, additional funding for the retirement will be received, at no cost.