Retirement is the finish line at the end of the race, but are you sure that you’re preparing the way that you should? Millions of Americans come to the realization every year that they don’t have the foundation that they need for their retirement.
Luckily, if you realize that you don’t have the retirement savings that you need, several ways can boost your retirement savings to ensure that you’ve got the money that you need to enjoy that stage of life. The closer that you get to retirement, the more you should focus on your retirement savings accounts.
Employer Match Programs
One of the best ways to kick-start your retirement savings is by making the most of your employer match program. There are a lot of employers that have a 401k program that can help you get the savings that you need.
With these programs, your company will match any contribution that you make in your 401k account. For every dollar that you put in your account, your company is going to put a dollar in as well, and they will do this up to a certain percent of your annual salary. Some companies will match up to 5% of your income. Not maximizing your match program is like leaving free money on the table. If you want to boost your retirement accounts, it’s important that you make the most of your 401k.
Open an IRA
Once you’ve maxed out your 401K account, you shouldn’t stop there. At that point, you should start making contributions to an IRA. These plans work similar to a 401K, but you will open them up through a private investment company, and they are an excellent supplement to your retirement account.
There are thousands of different places that you can open up an IRA, and some of them are better than others. If you’re looking for an IRA where you can set it and forget it, Betterment is the best option. With Betterment, you can open an IRA, and their robo-advisors will handle all of the investing for you. Here’s a comparison between Betterment and its competitors.
Play Catch-up (after 50)
Some people are over the age of 50 that realize they are nowhere close to where they need to be when it comes to their retirement savings. If you’re over the age of 50, there are a few special opportunities that you can take advantage of, and the most notable deals with your 401K.
There are strict limits on how much you can contribute to both your 401K and your IRA account. For anyone that’s under the age of 50, you can only put $18,000 into a 401K every year and $5,500 into an IRA annually. If you’re over the age of 50, you can make catch-up contributions, which will allow you to put more money into your accounts every year. For anyone over 50, your limit goes up to $24,000 for your 401K and $6,500 for an IRA. Those higher limits can make a huge impact on your retirement accounts.
Make it Automatic
One of the best ways to give your savings an extra kick is to make all of your saving automatic. Just about everyone WANTS to start saving more money, but only a small portion of people do it. When that money hits your bank account, it’s easy to start thinking about all of the things that you could spend the money on, instead of investing that money.
If you want to boost your retirement accounts, you should make your savings automatic, which means have a portion of your paycheck go directly into your 401K or IRA. You can’t spend money that you never see.
Reevaluate your Insurance – Stash the Extra
Another way that you can help your retirement accounts is to find more money to invest. You probably can’t walk into your boss’ office and demand a raise, but you can find some extra money that you already have. One of the easiest ways to do that is by looking at your insurance policies.
More than likely, you don’t spend a lot of time thinking about your life insurance coverage, but it’s time to look at your plan and see if you still need that coverage. Maybe your kids are grown and out of the house, which means you can consider dropping your plan and putting the premiums in a retirement account instead.
Boosting your Retirement Savings
Retirement and be one of the most satisfying stages of life, or it can be one of the most worrisome. Don’t wait any longer to start saving to have the retirement that you’ve always wanted. It’s never too late to give your accounts the extra boost that they will need to get you across the finish line.
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