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How to Catch Up On Your Retirement Plan

How to Catch Up On Your Retirement Plan

December 14, 2022
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If you are behind on your retirement plan savings, there are steps you can take to change that. Doing these simple things will help you grow your retirement and get you back on track.

 

#1 Save!

 

This is simple, but it is something you must make a priority. The sooner you start saving the more opportunities you have for growth.

I am sure you have seen the examples of someone saving earlier, versus someone saving more, earlier always wins. This is the power of compound interest.

 

#2 Use Your 401k

 

Most employers offer a contribution match when you put money into a 401k. The company match will vary, but we recommend taking advantage of the full amount if you can.

This is essentially free money and a great perk to take advantage of if your company offers it.

 

#3 Have Multiple Accounts

 

So, you started utilizing your 401k, that’s great, but using multiple accounts can get you where you want to be even faster.

In addition to your 401k, consider opening a Traditional or Roth IRA. Using more accounts can allow you to further diversify and take advantage of different tax benefits.

 

#4 Review your Retirement Plan

 

If you don’t have one yet, that is okay, now is the time. Setting goals that you can aim for will help keep you on track to retire comfortably.

What does retirement look like to you? Is there anything you want to do or see when you retire? Make sure you have these goals in mind and use them to calculate expenses, so you know exactly what you need to achieve your goals.

 

#5 Be Flexible

 

If you started planning for retirement later in life that is okay, but you might have to adjust expectations. Maybe you can’t do everything that you want in retirement but you can pick two or three things and prioritize those so you can still enjoy your time.

Retirement looks different for everyone, you have to find the balance that works for you.