How to Save for Retirement? is a common question for most Americans, while a quarter of Americans have no retirement savings at all as per Federal Reserve. While a large number of people fall short of their desired retirement saving.
Here are 7 Steps to Save for Retirement shared by Kat Tretina and John Schmidt on forbes.com.
- Set Your Retirement Savings Goal: Do Your research and set a Retirement saving goal based on your requirements. Use the 25x Rule to Calculate Your Retirement Needs
- Open a Retirement Account: Choose between various retirement accounts such as 401(k), IRA, etc.
- Choose Your Investments: Based on your retirement account select the investment options available and diversify your invesments
- Set Up Automatic Recurring Deposits: The best way is to set up automatic deposits so you never forget to put a share of your income in retirement accounts
- Regularly Increase Your Retirement Savings Rate: With growing, salary and income make sure too increase your contributions
- Open an Additional Retirement Account: If you just have a 401(k), you should definitely consider a secondary IRA retirement account to maximise the tax advantage and savings
- Keep Things in Perspective Through Good Times and Bad: Keep updating your Retirement savings with changes in economy.
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