Tips to Help Maximize Your Retirement Savings
Start As Soon As Possible!
Start investing and saving as much as you possibly can when you’re young so that the compound interest in your savings account can be very beneficial towards building earnings. You’ll thank yourself later for starting so early when you’re sitting on top of more money than you know what to do with.
Match Your Employer!
Some employers offer to match your 401(k) plan. If you have the opportunity, then take full advantage. If an employer offers to match 50% of your contributions up to 5% of your salary, and you make $40,000 a year and you supply $2,000 to your retirement, then your employer would donate another $1,000 to your retirement fund.
Consider Opening An IRA.
Consider opening an IRA account to help increase your retirement funds. Depending on your financial situation, you can head two different ways in terms of an IRA account. Depending on your income, you could open a Traditional IRA account which could possibly be tax-deductible, until you start to withdraw from the account during retirement. Or depending on your income, you could start a Roth IRA account. These are financed after taxes, so once you’ve turned 59 1/2, your withdrawals are no longer federally taxed, if you’ve held the account for 5 years.