THINKING OF RETIREMENT?

For most people, retirement sounds like a dream. But, if you don’t start preparing as early as possible, you may find yourself in a place of financial insecurity when the time does come. To avoid this, consider implementing the following tips.
Calculate the target amount you need to save. In general, it’s recommended that you save 10 to 15 percent of your income for retirement. Try an online savings calculator to determine the amount you need to save for your specific needs and goals.
Contribute to your employer’s retirement savings plan. Does your job offer a 401(k), traditional IRA, or Roth IRA? Sign up and start saving as soon as they allow you to. It’s recommended to set up automatic paycheck deductions and, once the money is in your retirement fund, don’t touch it.
Take advantage of employee benefits. Many employers offer matching which generally requires you contribute a certain percentage of each paycheck and your company will then contribute a matching amount with funds of their own. They might also offer health savings or flexible savings account. By contributing to these accounts, you reduce your amount of taxable income, allowing you to save more money.
Pay off your debts. Start by paying off any high-interest credit card debt first. Then look at other debts, such as student loans and car payments, and make a plan for paying those off incrementally.
Reduce daily spending. Although this feels like a no-brainer, spending your money thoughtfully now can make a big impact later. Seek out areas of your life where you can spend less or save. Consider a round-up savings plan for your debit card purchases. You won’t miss the change but it will add up over time.
For most people, the largest investment of their lifetime will be their primary residence. With real estate markets always changing, it’s a good idea to contact your real estate broker and ask for an annual real estate review. Finding out how much equity is in your largest asset can help you plan for your future.