5 Ways to Save More for Retirement
It’s all too easy to put off saving for your retirement in today’s work arena. It’s easy to get overwhelmed. You might be paying off student debt, buying your first home, getting married and having children. All amazing accomplishments, but they certainly impact your ability to plan and save for your retirement. So how can you balance your immediate financial priorities and long term goals?
1. Contribute to all tax-advantaged accounts, including your 401k, IRA (or Roth IRA) and Health Savings Account.
2. Pay off high interest debts first. This includes credit card debt, which can have substantially high interest rates. The goal should be to pay off all debt, but focus paying down all high interest debt first.
3. While this may not be the most popular solution, working past the age of 65 can have significant financial benefits. Consult with a financial advisor to find out how your Social Security benefits will increase.
4. Downsize! One of the top ways to simplify your life and your finances it to downsize. Look at what you really need in a home for your family to be comfortable. Make sure that you’re not paying a higher mortgage for a larger home that you don’t need.
5. Invest your money. There are so many different ways to invest, it can be overwhelming. This is another area where it’s great to sit down with a financial advisor to discuss your asset allocation.
Debra Greenberg, Director, Personal Retirement Strategy and Solutions at Bank of America Merrill Lynch, has the following suggestions “Don’t be discouraged,” Greenberg says. “Even seemingly small amounts can add up over the years, and taking action now increases the likelihood you’ll be better prepared to meet any unexpected challenges that come your way.”