Retirement Saving Tips

August 24, 2018 By 0 Comments

Though it’s never too late to start, the sooner you begin saving, the more time your money has to grow. Gains each year build on the prior year’s gains–that’s the power of compounding–and the best way to accumulate wealth.

Set Realistic Goals.

Project your retirement expenses based on your needs, not rules of thumb. Be honest about how you want to live in retirement and how much it will cost. Then calculate how much you must save to supplement Pension (if applicable) and other sources of retirement income.

A Retirement Savings Account is The Easiest And Best Ways To Save For Retirement.

Contributing money to a RSA gives you an immediate tax deduction, tax-deferred growth on your savings, and, usually, a percentage contribution from your employer.

Focus On Your Asset Allocation More Than On Individual Picks.

How you divide your portfolio between stocks and bonds will have a big impact on your long-term returns.

Stocks Are Best For Long-Term Growth.

Stocks have the best chance of achieving high returns over long periods. A healthy dose will help ensure that your savings grows faster than inflation, increasing the purchasing power of your nest egg.

Don’t Move Too Heavily Into Bonds, Even In Retirement.

Many retirees stash most of their portfolio in bonds for the income. Unfortunately, over 10 to 15 years, inflation easily can erode the purchasing power of bonds’ interest payments.

Making Tax-Efficient Withdrawals Can Stretch The Life Of Your Nest Egg.

Once you’re retired, your assets can last several more years if you draw on money from taxable accounts first and let tax-advantaged accounts compound for as long as possible.

Working Part-Time In Retirement Can Help In More Ways Than One.

Working keeps you socially engaged and reduces the amount of your nest egg you must withdraw annually once you retire.

Other Creative Ways To Get More Mileage Out Of Retirement Assets.

You might consider relocating to an area with lower living expenses or changing your home into one that is more easily maintainable.