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Need to boost your retirement savings?

Are you behind where you want to be with your retirement savings?  If you are like many people, your retirement savings might need a boost.  Fortunately, there are ways get your retirement back on track.  It all starts with knowing where you are and where you hope to go.
First, when should we review our retirement savings goals?
Ideally it is best to do a review every year. The more time you have to fix a problem, the less painful it will be.  Realistically, at least start with every 3 years when you are younger and shorten the time as you get older.  The review is very important because building a retirement fund takes time and effort to build.
What are reasons that people fall behind on their retirement savings plans?
Often times it is not increasing their annual retirement savings contribution. It is recommended that 10% of your salary is a good goal.  This gives you the best chance to reach your retirement savings objective. Another reason people fall behind is that their investment performance is lackluster because of not keeping a diversified portfolio especially in their 401k savings plan.  It is very important to rebalance the portfolio so that you have a better chance of reaching your investment return goals.
If you are behind on your goal, how do you give it a boost?
Focus all your efforts on adding to your retirement savings which means every raise, bonus, tax refund and other money windfalls all go to some type of retirement savings investment.  And, look at lowering discretionary expenses to have more money to contribute to retirement savings. If you can achieve 20% of your income going to retirement, you can give your retirement plan a much needed boost.
Are there options if you have maxed out your 401k contribution and still need to save more?
If you are over the age of 50, you might be able to take advantage of the “catchup contribution” provision that is available in 401k plans.  Also, there might be IRA catch-up options available to you.  For those under 50, it might mean a taxable investment option such as mutual funds will be your best alternative.  There are many places, talk to a qualified planner who can help you make the correct decision on where to invest additional retirement dollars.

Posted: 8/5/2014 with 0 comments

Categories: Money Matters, Retirement

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