How To Start Saving For Retirement

Everyone deserves to have a comfortable retirement after decades of hard work. But to so many Americans, saving for retirement seems complicated, intimidating, and a choice that can be postponed for the future. However, there are so many little choices you can make every month to start saving for retirement–and they aren’t difficult at all!

All you need to know are a few practical basics on how to start saving for retirement. Sometimes you just need a jump start to get you going. Once you begin saving, you will feel more comfortable about the process and adjust how much and how often you allocate funds.

Here are some great ways to start saving for retirement:

  1. Have an Emergency Fund

You might think an emergency fund has nothing to do with saving for retirement. But if you have no emergency fund and you experience a financial emergency, where will you turn for cash? That’s right, your retirement fund! Cushion yourself for unexpected bills with at least $500 to $1,000. That way, all the money that goes into your retirement fund will stay there!

  1. Pay Off High Interest Debt

This might seem unrelated to retirement as well but if you have debts collecting interest, then you are losing money you could be investing in high interest retirement accounts. Try to pay down a majority of your debts by prioritizing higher interest debts. These debts can include credit cards, title loans, auto loans, and student loans to name a few.

  1. Regular 401(k) Contributions

If you are lucky enough to have an employer sponsored retirement plan like a 401(k) or a 403(b), then take advantage. Many companies will match your contributions, meaning that you will receive even more in your savings right away! Contribute to your retirement account often and regularly to start saving off on the right foot.

  1. Create a Financial Goal

After you’ve taken care of various other aspects of your personal finances and really got your 401(k) going, it’s time to sit down and create a financial goal. Once you feel comfortable, take on a more aggressive savings plan. Determine how much you’d like to have saved by the time you hit retirement and when you would like to retire. Do the math to figure out how much you are aiming to save monthly or annually.

  1. Figure Out Where to Put Your Money

Where you place your savings depends on how many years it will be sitting and gathering return. For shorter term investments, you can look at online savings, money market accounts, or short-term bond funds. For longer term accounts, you could look into a Roth IRA, traditional IRA, stock investments, etc. If there will be a large amount of money going untouched for a few decades, you want that money to accumulate as much interest as possible, so you get more bang for your buck.

You don’t have to be overwhelmed by the thought of how to start saving for retirement! When you come at it from the right mindset, saving for the most relaxing chapter of your life can be simple. Give yourself peace of mind knowing that your future is secure by starting to save today!

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Can You Imagine If You Never Retire? 1 in 4 Think That’s That Their Fate.

never retire

Many people are planning ahead for early retirement. However, that’s not the full picture of the American public. Despite the fact that lots of us think about retiring in our thirties, forties, or fifties, there are also plenty of people who don’t plan to retire early. In fact, according to one survey, one in four people think they may never retire.

People Who Think They’ll Never Retire

Twenty-three percent of those surveyed believe that they will never retire. 80% of those people were under the age of 50 at the time of the survey. That leaves 20% that were age 50 or older and couldn’t see retirement in their future.

The main reason that people assume that they’ll never retire is that they don’t think that they’ll be able to afford to stop working. They don’t have enough money set aside in savings or retirement funds. They still have bills to pay. Many don’t even own the home that they live in.

Plus, as people get older, they need more medical care. If they don’t trust that Medicare will cover their needs, then they may feel like they have to keep working. They figure they’ll just work until they die.

People Who Plan To Work Longer

There are plenty of people who think it’s unreasonable to assume they’ll never retire. However, they believe that they’ll keep working into their older years. Twenty-three percent of those surveyed believed that they would keep working past the age of 65, which is often considered “normal” retirement age.

Therefore, nearly half of those surveyed believed that they will never retire or that, if they do, it’ll be after age 65. Another 19% say they’ll retire at 65. Many people are are living longer and longer, which means a lot of years after age 65 during which they have to support themselves. If they don’t have enough money in savings then it may make more sense to keep working than to retire at or before 65. Approximately 20% of people age 65 and older in America are currently working or looking for a job.

Elderly People Are Often Forced to Stop Working

Unfortunately, the reality is that a lot of elderly people do stop working, even if they don’t wish to do so. They may think that they’ll never retire but then life happens. Circumstances conspire against them. They get injured or ill and can’t keep working. They get laid off and have trouble finding new work in a market that’s biased towards hiring younger people. Or perhaps they find themselves having to do caregiving for an elderly spouse. Whatever the reason, they end up retiring, even if they aren’t financially prepared to do so.

People Don’t Feel Ready for Retirement

Regardless of when they expect to retire, most people don’t seem to feel prepared for it. 45% of those surveyed said that they are not at all prepared for retirement. Another 33% said that they are only somewhat prepared. The good news is that younger people recognize that they aren’t prepared and people who are getting closer to retirement age feel a little bit more ready for that reality. Still, nearly one third of people over age 50 said that they are not at all prepared for retirement.

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7 Best Retirement Podcasts to Start Tuning in to Today

podcast

If you aren’t listening to personal finance podcasts then you’re missing out on some great money education. If you’re interested in early retirement, retiring rich, or simply making the most of your retirement years, then you should be listening to retirement podcasts. Here is a list of seven of the best retirement podcasts on the air today.

1. Personal Profitability

This is a diverse money podcast that covers a variety of topics, several of which relate to retirement. For example, you’ll find a lot of information here about wealth-building, which is key to having a good retirement experience. There are quite a few FIRE episodes. For example, check out 3 Steps to Get Started on Your FIRE Plan. Plus, there are episodes specific to retirement planning. For example, listen to Retirement Planning with Christine Russell. Recent episodes are about half an hour long; older archives are a bit longer.

2. Financial Freedom

If you want to retire early then this is one of the best retirement podcasts for you. Grant Sabatier, author of Financial Freedom and creator of Millennial Money, obtained his own financial freedom by the age of 3o. He shares his own tips and interviews other people about how to achieve the same goal. There are many different approaches to retirement. For example, you can take mini-retirements over time to avoid burnout, which you can learn more about from this episode.

3. Listen Money Matters

This is another of the best retirement podcasts for people focused on retiring early. It’s all about how to earn as much money as possible right now so that you can retire and enjoy your later years work-free. In addition to all of the individual episodes, they’ve curated some of the best information for you into organized playlists. For example, check out Lessons from Self-Made Millionaires or Get Your Cashflow On with real estate investing.

4. Retirement Answer Man

What better place to get your retirement questions answered than from the Retirement Answer Man? With nearly 300 episodes to date, this podcast by Roger Whitney is one of the best retirement podcasts you’ll ever come across. It answers not only basic questions but also really in-depth aspects of retirement. For example, listen to The Pros and Cons of Variable Annuities for retirement. Alternatively, learn about how your personality plays into retirement planning.

5. Rock Your Retirement

The best retirement podcasts aren’t just about how to handle your finances. Instead, they’re also about how to live your best life after your retire. That’s what Rock Your Retirement is all about. Recent episodes include a series on dealing with pain as you age and how to handle the challenges of living in a multi-generational household.

6. NewRetirement

This podcast features interviews with an intriguing array of professional people who share their tips and tricks for maximizing both money and happiness upon retirement. Recent episodes have included interviews with investment entrepreneur Brian Bollinger, personal finance journalist Cameron Huddleston, and former Dwell Magazine CEO Michela Abrams.

7. Retirepreneur

More and more people are retiring from full-time work only to switch over to past-time passion projects that still earn them an income. It’s a great way to embrace retirement without getting bored. This podcast is all about how to make that happen. Specifically it’s about doing part-time consulting work post-retirement. For example, listen to Senior Start-Ups, Side Hustles, & Chat with Dawn Starks.

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