Only 39% of Americans have $1,000 available for retirement. That means that well over half the population has little to no cash at all tucked away in savings.
Are you one of these described individuals?
If so, then here’s some advice for getting ahead of the game and setting aside some serious finances to the future.
If that previous statistic wasn’t convincing enough already, studies show that nearly 8 out of 10 workers live paycheck to paycheck…
This is no way to go about your life and whether you believe it or not, you’re not limited to the confinements of this stress-filled existence.
You can begin your escape from these financial burdens by starting a retirement fund. This is where most aspiring retirees go wrong…
People tend to get overwhelmed with the various retirement plan options and resultantly postpone their savings contributions until they have the time to sift through the details.
There’s no denying the significance behind whatever savings account you choose to go with; however, saving itself is more important and you should avoid putting it off any longer than you already have. After all, these accounts are useless without the savings to back them.
With that said, you don’t need a complex or elaborate plan to guide you towards retirement. Simply start by putting up some sort of savings, no matter how big or small, and stay consistent with how frequently you add to the account.
You’ll be surprised at how quickly this money will accumulate over time.
The vast majority of individuals don’t reach retirement in a single leap. It requires baby steps. Once you’ve stashed away enough savings to add yourself to the 39% of Americans that have at least $1,000 to their name, then it’s time to take things to the next level.
Without sacrificing the saving habits you’ve grown accustomed to, you can direct this cash into a legitimate savings account that’s specifically designated for retirement.
Arguably the most efficient gateway to retirement lies within a Roth IRA and I’ll give you two reasons why…
1. It provides you with tax-free income during retirement.
2. You can access your contributions early if you need to.
No, not all IRAs are created equal though and it’s important not to confuse yourself with a traditional IRA. As I mentioned, Roth IRA’s are not tax-deductible (hints the appeal).
For this reason, you can access your savings in the event of an emergency without having to pay an early withdrawal fee. At the same time, the investment income you earn on your contributions CANNOT be withdrawn early; however, after you reach age 59 ½ this money is fair game.
These types of accounts are absolutely essential in terms of retirement and only take minutes to set up! So, what’s holding you back?
Get in the habit of saving. Don’t fret over the actual amount you contribute, just focus on sticking to a realistic routine for starters.
Once you have a bit of savings to your name, open a Roth IRA that you can empty your funds into, then watch it grow tax-free into your retirement. Easy enough, right?
Well, there you have it. Just remember to take one step at a time and put one foot in front of the other… slow and steady always wins the race when it comes to retirement, but following these simple tips will give you the upper hand.