This is Your Life
Life can get in the way of saving for retirement, especially when you’re busy with your job, friends, and family. While you know that saving for retirement is important, you have many other things in your life that are important, too. The key is to make saving for retirement a priority while living life to the fullest.
Just Starting Out
It can be overwhelming to begin working at your first “real” job. If you’re new to living independently, you may have more expenses than ever, such as rent, groceries, insurance, etc. If you’re paying off student loans, that can put an extra strain on your finances. With retirement so far off, you may decide you don’t need to save much right now. But the more you save for your future while you’re young, the better. Why? You’ll give your savings more time to benefit from the power of compounding.
In the Middle
Who has time to think about saving more for retirement when you have kids to raise and a home to maintain? If college tuition costs are looming, you may be tempted to save less or even stop saving for retirement so you can help your children pay for their education. However, you’re probably going to need a lot more money for your retirement than your kids will need for college. And they may qualify for scholarships and other financial aid. If you keep putting saving more for your retirement last on your list of financial priorities, you might not be able to save enough for a comfortable lifestyle.
Just because you’re getting closer to retirement doesn’t mean you still can’t benefit from saving more. This is a good time to increase the amount you contribute to your plan, especially if your nest is empty and your mortgage is paid off. If you’re age 50 or older, your employer’s plan may allow you to make extra “catch- up” contributions. Saving more when retirement is close at hand can still make a meaningful difference in the value of your account.
Time Is on Your Side
Increasing the amount you contribute to your retirement savings plan each year could make a big difference in the amount you can accumulate in your account.
This piece and linked article were prepared by M Financial Group to be distributed to clients and prospects. Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. The R.O.W. Group is independently owned and operated.
This information is for general and educational purposes and not intended as legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Information obtained from third party sources are believed to be reliable but not guaranteed.