How to Save for Retirement?

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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.

  1. 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
  2. Open a Retirement Account: Choose between various retirement accounts such as 401(k), IRA, etc.
  3. Choose Your Investments: Based on your retirement account select the investment options available and diversify your invesments
  4. 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
  5. Regularly Increase Your Retirement Savings Rate: With growing, salary and income make sure too increase your contributions
  6. 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
  7. Keep Things in Perspective Through Good Times and Bad: Keep updating your Retirement savings with changes in economy.

Click here to read the detailed post.