Retirement Planning Week Prompts Simple Saving Tips
National Retirement Planning Week is April 9 - 13, Prompting Tips to Start Saving Now
DULUTH, Minn. – This week is National Retirement Planning Week, a week dedicated to helping American’s get their financial plans on track so that they can retire on their terms.
Whether you’re a millennial just entering the workforce or a baby boomer transitioning into retirement, you may be surprised to learn some of the basic tips you should be implementing for each stage in your life.
Barry Bigelow, financial advisor with Great Waters Financial, stopped by the FOX 21 morning show Wednesday with some savings tips for three different generations.
• Pay Down Debt. The debt issue is really what sets Millennials apart. More of their income goes toward student loan payments than it did for other generations when they were younger, and those payments may be cutting into savings potential. Consider working with a debt or credit counselor to develop a repayment plan, keeping your credit score and interest rates in check wherever possible.
• Start Funding Your Future. If your work provides a 401(k) or similar plan, try to contribute at least the amount that will be matched by your employer. This is “free money” that can help you reach your retirement goals. Whether you have a 401(k) through your employer or not, an IRA is another great way to also save for your future…. And there are tax advantageous options like a Roth IRA that can be especially beneficial to young investors.
• Save. Save. Save. This sandwich generation can often times find themselves prioritizing others needs before their own – like prioritizing their children’s college education or assisting their aging parents already in retirement. Don’t sacrifice your own financial future by helping someone else. Make sure you’re still saving enough to ensure your future financial security, before helping others – and certainty avoid tapping into your retirement funds at all costs.
• Audit All of Your Fees. Fees can eat away a significant portion of your portfolio. To save money in fees, consider using one company or advisor to help you make sure that you’re not paying more than you should on your investments and that there are no overlaps in coverage.
• Update and Consolidate. Many people in this generation have worked at a number of places, participated in number of 401(k)s, patronized a number of banks and brokerage firms and possibly acquired a few different types of insurance policies. Having all your financial investments in a comprehensive plan working cohesively can make it easier to reach your goals; otherwise, you may have conflicting efforts offsetting your investment progress.
• Maximize. Maximize. Maximize. Consider maximizing contributions to retirement accounts that you have access to at work such as 401(k), 403(b), TSP and 457 plans as well as other retirement accounts like your IRA. Investors over 50 are allowed catch-up contributions for their IRAs and 401(k)s so be sure to take advantage of this and set aside as much as possible for your golden years.