I'm Behind on My Retirement Savings, What Should I Do?
I want to share with you how to catch up on those #retirement savings! There has been a lot of articles about Americans being behind on retirement savings and yes this is true. You can look at the 08 crash, where you are now, everything has become so expensive, college tuition, I get and I absolutely understand it. Let’s go over some high-level ideas to help you get on track and hopefully, reach your goals. First up, let’s talk about the investment side. Always start with your 401k, your SIMPLE your 403(b), your TSP, etc… If you are working, and your company has some type of plan, that is the best place to start. Why? Because it's tax free! Then you want to make sure you are taking advantage of the companies match program. Now if you're over 50 you make a catch-up contribution. The catch-up rate is $6,000 and contributions for these plans are limited to $19,000. That's a lot of money over time.
So from there you should look at your Roth IRA and your #IRA. Personally, I like the Roth IRA better because when you retire, you want to have some money you can get to without having to pay taxes. The next thing is having it automated, like you would a bill, so that it comes out of your account every single month.
Moving on to health savings accounts, these are great because you have an opportunity to put money in tax-free and take it out tax-free. Here is a fun fact for you, did you know you can make a one-time transfer from your IRA to your HSA and it's tax free? Take advantage of it, let it grow, great idea!
Lets shift gears and talk about needs/wants... Nobody likes to cut budgets but sometimes you have no choice if you want to retire in the near future. Figuring out what you need and what want can be challenging.
Another idea, the minimalist revolution. Minimizing your life is indeed the way to go, especially if you are trying to save for the big picture.
You can also take up a "Side Hustle" For those of you who aren't familiar with that term, this means a second job, or a weekend gig. Or maybe you could look into a rental property? Something along those lines.
Our side hustle is marketing. We support several advisers around the country with social media advertising and video content. You have to be creative and think outside of the box! I strongly believe that people do not plan to fail, they fail to plan. It is as simple as that, create a financial plan, stick to it, and everything else will fall into place.