Friday, December 27, 2013

10 Retirement Tips to Practice in Your 20s


Although retirement can seem like a long way off when you are in your 20s, it is actually the perfect time to start taking steps towards saving for retirement. Bok Financial lists 10 retirement moves that you should make in your 20s:
1.      Get a grip on compound interest: The earlier you save, the more interest that will be added to your retirement account.
2.      Pay yourself first: Have money sent straight to a savings account when you receive income. Your savings will be guaranteed, and you will not even miss the funds that are transferred.
3.      Control your spending: Every dollar you spend could be a dollar saved. Try to spend less than you earn every month, and save what you can.
4.      Stay educated: Research all retirement options you have at your disposal now and you will be prepared for decision you have to make in the future.
5.      Kick debt to the curb: Try to avoid going into debt, and if you are already in debt, try to get out as soon as possible. Debt is one of the biggest obstacles Americans have when it comes to planning for retirement. Pay down loans and credit cards as soon as you are able.
6.      Meet smaller financial goals: Set small savings goals for yourself that will encourage you to stay on track for major savings goals, i.e. retirement.
7.      Max out employer-match benefits: If your employer offers matching retirement savings benefits, take advantage and set back as much as you can afford.
8.      Boost your contributions each year: Increase retirement contributions as you are able, such as when you receive a bonus or a raise. Boosting contributions is an easy way to grow your account.
9.      Diversify early: Your 20s are a perfect time to diversify your retirement portfolio and take some risks; just don’t invest 100% of your retirement savings in stocks.
10.  Make a habit of financial organization: Organize all financial documentation (paycheck stubs, tax returns, etc.) and keep track of all of your expenses. Being financially organized is the simplest way to always know where your money is going.
If you have any questions about preparing for retirement, please contact us!
518 Arbor Hill Rd.
 Kernersville, NC 27284
 Ph: 336-996-3338
 

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