7 ways to save for retirement

to save for retirement Retirement seems like a lifetime away for young professionals. But as careers advance, families grow 04 Take advantage of employers’ offers to match retirement contributions. Many employers 7 WAYS and milestones are met, retirement feels a lot closer. will match 401(k) contributions if you save enough to “Planning for retirement is about building a saving qualify. This is an easy way to save without having to strategy for your working years to bridge that gap put in any extra money out of your own pocket. Data between what you need to live on to cover your indicates that many employees are leaving money on desired lifestyle,” said vice president at Kennebec the table. A survey from Financial Engines found Wealth Management Rachel Kuss. that $24 billion in 401(k) matches goes unclaimed By establishing savings goals and putting plans in every year, with the typical employee missing out on motion early, you are more likely to retire on time more than $1,300 annually. without having to worry about money. But there are many variables to consider. A 2014 Gallup poll indicates that most Americans 05 Open a Roth IRA. A Roth IRA is a retirement savings vehicle that enables you to pay taxes now retire at age 62. That is a good starting point on the money you put in up front. When you become when planning for retirement. eligible to withdraw the funds, they are tax-free. “Basically, where we start is finding that money in “Taxes are an unknown variable of the future," someone’s budget to save,” Kuss said. “We create a Kuss said. “We just never know what taxes are budget. Sometimes we use a software that analyzes going to be, so Roth IRA not only do you pay regular expenses. Once people can identify where they are income tax on them, but the after tax money grows spending money that might be unnecessary, that’s tax-free forever.” the first step.” With these saving strategies, financial planners can help individuals save more for retirement years. 06 Aim for a 15% investment. Start investing 15% of gross income for retirement once you’re debt-free and have an emergency fund. This strategy 01 Raise … what raise? Workers lucky enough to get a salary increase should direct the extra can help ensure you have enough money to do what you want throughout retirement. money into retirement accounts instead. Since you were not accustomed to earning the money, you won't miss it. Stashing those funds into savings can help secure a strong financial future. 07 Make calculated cuts. Think about more affordable choices and dedicate what you would spend on those expenditures to retirement. For example, calculate the difference between 02 Max out deposit limits. By depositing the maximum allowable amount into retirement buying a new car and a certified pre-owned model. Deposit the savings into retirement. Can you skip a accounts each year, you can grow your savings vacation this year and do a staycation instead? quickly and earn considerably more interest. Forgoing certain luxuries can help you build retirement savings. 03 Allocate your tax refund. “Some people are withholding too much money from their paycheck,” Kuss said. “They get a big refund every year after doing their taxes and they think that is a good thing. But that really means they are giving too much money out of their paychecks that could be going to savings instead. That’s a very common mistake.” Saving for retirement becomes a little easier with strategies that can make money go further. Working with a financial planner can help individuals stay on the right track to achieve their long-term goals. Kuss says, just by taking the time to create a financial plan, many people are more likely to commit to it and follow through.