It’s easy to get discouraged when we haven’t saved the amount we would like for retirement. However, it’s more beneficial to use that energy toward fixing the issue rather than dwelling on past mistakes. There are several ways you can catch up on your retirement savings and it’s never too late to begin.
In your everyday life, create a budget and see where all of your money is going each month. Then, make a plan to eliminate consumer debt and decrease spending where you can. Save the extra money and consider having it automatically withdrawn from your paycheck so you never see the money coming or going. Other areas you may want to explore might include downsizing your home, taking on a second career, or even renting out a space in your home.
Take full advantage of your employer’s retirement plan by maxing out your 401(k) every year, and receiving your employer’s full matching contribution. Individuals who are age 50 or older at the end of the calendar year can also make annual catch-up contributions. Depending on the plan, catch-up contributions can be up to $6,000 in 2016. Click here
for more information from the IRS.
Consider opening an IRA as an additional way to save. Whether you choose a Traditional IRA or a Roth IRA, they each have unique advantages. Click here
for information on FORUM’s IRA options.
Resources & Planning
As a FORUM member, you have access to a variety of free savings calculator
s. And depending on your specific situation, it may be wise to seek the advice of a financial planning professional. If you don’t have a financial advisor, FORUM Private Client Group can help. Call 317.558.6322 or email firstname.lastname@example.org.