As the cost of living rises, the future is uncertain. The more money you save, the better your position is going to be. There are several ways which you can boost your retirement fund.
Here are six great retirement savings tips for you.
Save a Larger Percentage of Your Income
On average, people save around 7.5% of their income every month. The economic situation is such that a majority of the populace has to save 15% of their incomes to get by after retirement. Work out a figure of how much money you are saving at present. Get the percentage as close to 15% as possible for you.
Make Use of Tax Advantaged Accounts
There is a limit on the money you can put away at the end of the year in an IRA account. If you are nowhere near that figure, you can increase your contributions to tax advantaged accounts. This way, you can put away more money towards the end of the year and beef up your retirement savings.
Get an After Tax Savings Account
You can put a limited amount of money into your retirement account each year. This does not mean that you cannot save more money than that. The prescribed is for your savings before tax. Open an after tax retirement account. The saving limit is increased when you are making contributions of your after tax income. The first deduction is before tax.
Special Retirement Accounts
The number of people working freelance has increased over the years. Most of them do not have a steady income and the amount they earn fluctuates month to month. There are special retirement accounts in which they can put in their money. Even if you are between jobs, your account keeps accumulating with every paycheck.
Remember Your Taxes
A portion of your retirement account is going to the government treasury. A majority of the people do not consider the impact of taxes on their savings. This is why it is important to account for taxes beforehand. This way, you can reach a pre-tax figure for retirement savings that suits your purpose and will leave you enough money after retirement.
Manage the Expenses
There are fees and charges you have to bear for placing your money in a retirement fund. Choose a fund with the lowest expenses so that you can save more money. If you have to pay for the services, your savings will decrease substantially.
These are six great retirement savings tips that will boost your retirement fund.
Allan has been blogging on retirement savings and self managed super funds for the last 3 years. Allan also offers money savings tips.
- Wade Donald Pfau
- Publisher: Retirement Researcher Media
- Paperback: 366 pages
- Adams Media Corporation
- Emily Guy Birken
- Publisher: Adams Media
- Ernie Zelinski
- Visions International Publishing
- Kindle Edition
Last update on 2020-03-19 / Affiliate links / Images from Amazon Product Advertising API
Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.