We all want to retire eventually. None of us wants to work into our eighties. We all have reasons, too, on why we don’t save for retirement. There are always good reasons. Behind them there are the real reasons. They stare us in the face, and we don’t dare to speak of them.
Let’s get one thing straight: You don’t want to rely on welfare by the time you retire. You don’t want your children arguing as they try to figure out where to put you (since you don’t have the financial capacity to make your own choice). With so many limitations, this may not even seem like a realistic option. In addition, social security may not be around as the current generation enters retirement. You also don’t want to have to pay more than you have to in taxes.
Imagine the lifestyle you’ve been dreaming of once you retire. Most of our dreams are worth a pretty penny. If you want to travel, try to envision specific places to travel, and not some distant island. Where will you live? To see how much you might need, click here.
Get a 401(k) Match if you don’t have one already, and put money into it. Remember that for someone who earns $40,000 a year, a 401(k) match could be worth as much as $1,200. That’s nothing to sneeze at. That money isn’t in your paycheck, so you don’t have to think about spending it. If a 401(k) Match isn’t an option, consider getting a direct deposit on an individual retirement account. If you save tax-deferred, you will reduce your income taxes.
Additionally, a compound effect can be produced from saving in a tax-deferred account. This can happen through a Roth IRA. This is especially a good idea for those who think they’ll make even more in the future (young adults).
If you have any questions, please comment below. We’d love to help you through this process.