Depending on where you are in life, it’s pretty safe to say that retirement is a pretty big issue. There’s nothing that says you have to focus on retirement, but since most people dream about the day that they will be able to stop working and actually do the things that they love. This all starts with properly planning your retirement fund sot hat you will truly have nothing keeping you from actually achieving the goal that you have set for yourself.
Of course, you might already be well into the retirement plan, saving money where and when you can. However, there is always room to put more money into your retirement fund, as long as you’re willing to get creative.
For example, most people don’t realize that they can actually contribute to both a 401(k) and a separate Roth IRA if they so desire. That way, if you max out one type of retirement vehicle, you can shift smoothly into another and still watch your money grow. Don’t forget that regular portfolios can also be earmarked for retirement — even though you will pay capital gains tax on the money, long term investing can make these taxes stay at a minimum. You will also be able to deduct losses as you normally would.
It’s really all about the rate of return on your money, and if you’re seriously set on retirement, it’s important to look into every angle and aspect of saving for retirement. Don’t forget to make sure that you’re contributing enough to your corporate retirement account — you don’t want to lose the benefit of a corporate match from your employer. This can boost your retirement account to greater heights than if it was just your money going into the plan.
In addition, you should also make sure that you’re paying yourself first — literally. Automatic transfers from your checking account may sound scary, but it’s a great way to really make sure that you will have no problem putting money into your retirement account. You want to make sure that over time, funding your retirement is as natural and automatic as breathing. This cuts down on the temptation to spend your savings before you even get them.
Overall, these are just a few ways to really boost your retirement fund. If you take these tips to heart, you should have no problem really getting the most out of your retirement account for many years to come!