Are you looking to save money for retirement? It can be a daunting task, but the good news is that it doesn’t have to be overwhelming. There are simple habits you can incorporate into your daily routine that will help ensure that you’re well-prepared when it comes time to retire. According to Goldstone Financial Group, by learning and committing these common habits of retirement-savvy savers, you’ll be able to make life easier for yourself in both the present and future. Read on to learn what steps an individual should take to guarantee success when it comes time for them to hang up their hats from work!
Goldstone Financial Group Lists Common Habits Of Retirement-Savvy Savers
1. Start Early: According to Goldstone Financial Group, retirement-savvy savers understand the importance of starting to save for retirement as early as possible, even if it’s a small amount each month. Taking advantage of compounding interest is essential for building solid retirement savings over time. According to Investopedia, an 18-year-old who invests just $2,000 per year until age 65 would have approximately $436,000 by retirement – but waiting until age 30 reduces the final total to about $303,000.
2. Increase Contributions Gradually: Retirement-savvy savers know that they don’t have to contribute large amounts at once in order to reach their goals. Instead, they often increase their contributions gradually every year. For example, someone who contributes 10% in their first year can increase that to 12 or 15% the following year and then raise it each successive year. Doing this regularly can help savers reach their long-term retirement goals while also keeping up with the cost of living increases.
3. Automate Contributions: Retirement-savvy savers don’t have to worry about manually transferring money from checking into savings accounts – they automate their contributions instead. This process allows for regular automatic transfers from a certain account into another account for retirement savings. Automated investments are one of the most efficient and reliable ways of growing financial security over time. According to a Vanguard study, more than 50% of people who used automated investing had grown their retirement savings to more than $200,000 within 25 years, while those who didn’t automate their contributions only ended up with an average of $149,000.
4. Utilize Tax-Advantaged Accounts: Retirement-savvy savers understand the importance of utilizing tax-advantaged accounts such as 401(K)s and IRAs. These special accounts, as per Goldstone Financial Group, offer a number of tax benefits that can help maximize retirement savings over time. For example, money contributed to these accounts is not subject to income taxes until it is withdrawn in retirement – a great tool for reducing taxable income each year. According to the IRS, around 75% of Americans contribute to some type of tax-advantaged account each year.
Goldstone Financial Group’s Concluding Thoughts
According to Goldstone Financial Group, by following these common habits of retirement-savvy savers, individuals can ensure that their retirement dreams become a reality. With careful planning, the right attitude, and the proper use of tax-advantaged accounts, savers can achieve financial security for their golden years. After all, smart retirement planning today will mean a more enjoyable and comfortable retirement tomorrow!