Playing Catch-Up: 4 Tips to Boost Your Retirement Savings Even if You’re Late to the Game
Thursday, July 11, 2019, 6:00 AM | Leave Comment
Building up your retirement savings is always going to be easier when you start at a younger age, but that isn’t a possibility for some people.
If you are getting older and your savings aren’t where you’d like them to be, then it is time to come up with a comprehensive plan for aggressively building your wealth.
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Determine How Much You Need
The first step in this process is figuring out exactly how much you are going to need in your retirement years. While an exact number is ideal, an estimate will be perfectly acceptable. When you are coming up with your retirement budget, you must take many different factors into consideration including car payments, insurance premiums, spending money for leisure activities, and utility bills. Once you have a ballpark figure, you can then figure out how much you need to put away in the coming years.
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Tackle Your Debt
In most cases, you should pay off high-interest debt before you invest your money in any other accounts. That being said, there are some situations in which investing in retirement accounts is better in the long run. If your employer matches how much you put away, then you should try to max out those accounts every month. After you have invested in those plans, you should then pay off as much of your debt as possible.
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Hire a Financial Planner
Saving for your retirement is extremely complex, and you don’t want to make any mistakes. Hiring an experienced financial planner will cost a little extra money to start off with, but one of those professionals could end up saving you thousands over the next few years. They will be able to look over every facet of your finances and help you come up with a long-term retirement plan.
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Downsize
In order to pay off your debt and maximize your investment accounts, you should consider downsizing. Moving into a smaller home and replacing your new car with a reliable used vehicle could save you thousands every year, and that money can be used in much better ways. You also need to take a fresh look at your lifestyle habits if you are barely breaking even every month.
Along with these four tips, make sure that you have adequate insurance as well. A medical emergency could wipe out your savings in the blink of an eye, and you need to have a solid policy that will help you get through those situations with your savings intact.
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