3 Ways You Can Speed up Your Retirement Saving
Monday, September 30, 2019, 6:00 AM | Leave Comment
Are you behind on retirement savings? Are you interested in retiring early?
Regardless of your specific goals, the key to achieving them lies in stepping up your saving and investing efforts.
In addition to scaling back on personal spending and making larger regular contributions, there are a few effective strategies that you can employ for faster results.
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Save Bonuses and Refunds
If you are like many other people, you may receive a few minor or significant windfalls throughout the year. This could include a tax refund, an end-of-year bonus from your workplace or other similar bonuses. Rather than spend these lump sums of cash on non-essentials, contribute the money directly to your retirement plan.
Over the course of a year, this could directly increase your retirement account balance by several thousand dollars or more. The value of your account may increase dramatically over the years as a result dividend reinvestments and growth of these funds.
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Hire a Retirement Planner
If your account balance is lower than you would like because of meager growth, improving your retirement planning efforts is a smart idea. A professional retirement planner may help you to establish solid goals for your non-working years.
In addition, a planner could assist with the selection of investments that set you on a path for success while balancing your tolerance for risk versus desired growth.
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Take Advantage of Employer-Matching Opportunities
If you are not actively investing in your retirement plan, you may be making retirement planning and saving harder than it needs to be. Your retirement account may be tax-advantaged, which enables funds to grow more rapidly.
Many employers offer an employer-matching program, which essentially provides you with free money that increases the value of your retirement account. Your goal should be to max out the employer-matching contributions annually.
If you cannot afford to contribute enough funds at this time in order to accomplish that goal, consider increasing your contributions each time you receive a raise.
You may be behind on your plan to retire on time, or you may be eager to step up your efforts so that you can potentially retire early. You cannot rely on the market to produce consistently high returns. Instead, you must adjust your efforts so that you make solid progress that sets you on a path for success.
These tips can be combined together for the best results, and you can incorporate them with other efforts to take retirement saving and investing to a new level.
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