During these challenging times, many people are reimagining their retirement. Some may be picking up, moving out of state, while many are feeling financial struggles due to job insecurity. The past few months have been a time of reflection and people thinking about what they want out of life.
Whatever your plans were, most likely they have changed. Now is the time to start preparing for your future. To get started, consider implementing the following tips.
- Calculate your target savings. In general, it is recommended that you save between 10 to 15 percent of your income for retirement. Spend some time figuring out the amount you need to save for your specific needs and goals.
- Contribute to your employer’s retirement savings plan. Does your job offer a 401(k), traditional IRA, or Roth IRA? Sign up and start saving as soon as they allow you to. Once the money is in your retirement fund, don’t touch it.
- Take advantage of employee benefits. Many employers offer matching funds which generally requires you to contribute a certain percentage of each paycheck and your company will then contribute a matching amount with funds of their own. They might also offer health savings or flexible savings accounts.
- Invest in residential property. If you are able to buy a home as an investment such as rental property, now is a great time. Many families with young children are seeking more space, especially with a backyard, during this time of stay-at-home orders and schools not reopening. Owning a rental property can provide a great source of passive income.
- Pay off your debts. Start by paying off any high-interest credit card debt first. Then look at other debts, such as student loans and car payments, and make a plan for paying those off incrementally.
- Reduce daily spending. Spending your money thoughtfully now can make a big impact later.
If you have any additional questions, we are always happy to be of service. info@KarenandBarry.com