Retirement is for the birds, right? If you’re not even 30, why should you worry about it? You have student loan debts to pay off, rent or your first mortgage to pay, a tepid job market to navigate and insurance to be worried about. Retirement? You’ll think about that when you’re 40.
If you follow this train of thought, you’re on the wrong train. Retirement planning may be more crucial when you’re younger because it dictates how you approach your finances as a whole for the rest of your life. Remember the 2008 recession? Millions of Americans lost their retirement nest eggs and either had to go back to work or extend their working years.
You don’t want to end up working until you’re 67 or 68, right? Here are five ways you can avoid that fate:
Get a sense of what you need- but please don’t freak out. You need a goal in order to save properly, and there are seemingly endless resources available, at Alpine Bank and online, to help you see what you’ll need for retirement.
Prioritize- before you start funding your retirement, take care of your immediate needs: establish an emergency fund and pay down your debts.
Fund your 401(k)- if your employer offers a 401(k), opt in, especially if there’s a company match involved.
Get your IRA on- no 401(k) option? Try a traditional or Roth IRA. A traditional IRA lets you make tax-free contributions, while money in a Roth IRA grows tax-free.
Chill out- yes, saving and investing in your future early can really pay off. It also takes time for all that to happen, so be patient, don’t stress over each rise and fall and keep your eyes on the prize.
The earlier you save, the more your money gets the benefits of compound interest. You don’t have to start out dumping huge amounts into your account; all that matter is that you start. The Investment and Retirement teams at Alpine Bank can also be a trusted resource for this and other information regarding retirement, so be sure to get in touch with them if you have questions.