Everyone’s retirement plan looks a little different. One person may want to travel the world while another may just want to master a favorite hobby like quilting or fly fishing. No matter how you want to spend your retirement, it’s important to put a financial plan in place to achieve your retirement goals. Here are a few simple retirement strategies you can try.
Start Saving Now
There’s no such thing as starting too early when it comes to retirement savings. No matter what age you are today—start saving for retirement right now. The earlier you start saving, the more money you’ll have when it comes time to retire.
You should make retirement your top savings priority, ahead of college funds or other long-term savings. Remember, you can get a loan for almost any type of expense, but you can’t get a loan to retire.
Contribute to a Retirement Savings Account
If your employer offers a 401(k), opt into it—especially if your employer will match a certain percentage of your contribution. It’s free money! Another perk—the money you contribute to a 401(k) is tax deferred, meaning the contributions get subtracted from your taxable income. However, when you take money out of your 401(k), keep in mind you’ll have to pay taxes on your withdrawals.*
If a 401(k) isn’t an option for you, consider opening an Individual Retirement Account (IRA). An IRA is a type of savings account that offers tax breaks—your earnings grow tax-free and the distributions are tax-free.* It’s a type of retirement account you own that’s independent from your workplace.
Play Catch Up
A late start to retirement saving is better than no start at all. If you haven’t saved as much as you’d hoped or you started saving later in life, you can play catch up.
According to the IRS, individuals who are age 50 or older at the end of the year can make annual catch-up contributions. There are different limits depending on the type of retirement account you have. For example, your individual limit on a 401(k) is increased by $6,000. This means your individual limit increases from $18,000 to $24,000. With an IRA, you can make catch-up contributions up to $1,000. Visit the IRS website for more information. If you’re able to afford it, contribute up to the maximum amount allowed to help you make up for lost time.
Whatever your retirement goals are, it’s important to put these helpful retirement strategies in place now. If you need help getting started, call us at 303-422-6221 or visit our website for more information.
*For specific tax advice please consult a qualified tax professional.
Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Partner Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Partner Credit Union is affiliated with CFS. For specific tax advice please contact a qualified tax professional.