Money expert Steven Hughes shares 3 ways you can ensure your retirement will be spent doing what you want and not what you have to do.
When we think of retirement, beach trips and relaxation may come to mind. However, the reality for many Americans is having to find another job after they “retire” because they don’t have enough income to make ends meet.
As we wrap up #AmericaSavesWeek, here are 3 ways you can ensure your retirement will be spent doing what you want and not what you have to do:
- Get the right vehicle: If your employer offers a retirement savings plan like a 401k, 403b, 457 TSP, or IRA, go set an appointment with HR today to get the details. Ask about the company matching and make sure you get that free money off of the table. Set up your automatic payroll deduction. Already saving? Increase your contribution by 1%
- Check Your Statement – Once the money goes to your retirement account, where is it being invested? Set an appointment with the company that manages your retirement account and have them explain what you’re investing in at the time. To avoid fees in your account, ask your retirement fund manager to invest your money in ETFs instead of mutual funds.
- What’s Your Number? – Now that you have started saving, are you saving enough? Calculate how much you need with retirement calculator from Nerd Wallet to determine where you are, your retirement goal, and what you need to do between now and then to get there. You may be on track to hit your goal with your new contribution plan or maybe you need to increase your income and beef up your savings. You’ll never know until you check your numbers.