If you have reached 30 years of age, it is best to start thinking about your retirement, so that you are guaranteed a peaceful and comfortable retirement. To do this, at Globelivemedia we give you five recommendations that can help you
Being 30 years old means starting to think about your retirement, at least in the United States. It is an age in which, in general, people begin to assume certain commitments such as buying a home or even establishing a family. But it’s also a time to think about retirement and how to prepare to leave the workforce with enough funds to live comfortably.
For this reason, at Globelivemedia we tell you 5 things that you must take into account to start working on your retirement savings, with information from BankRate.
1- Progressively increase the contributions you make to your 401(k) savings account
While every saver’s ideal scenario is to make the maximum allowable contribution to their 401(k) retirement savings account (which, by 2023, is $22,500 per year), if they don’t give you the numbers, you won’t you should worry.
The most important thing, according to Dee Lee, a specialist in 401(k) plans, is that you progressively increase your contributions. This was reported by the Fortune portal.
Even a 1% monthly increase can make a substantial difference, even if it seems insignificant at first.
It is also important that you take into account your emergency funds for any eventuality. Specialists believe that having a fund to cover six months of essential expenses is ideal.
2- Open an IRA account
Individual retirement accounts (known as IRAs) have tax benefits intended to encourage savings and long-term investments, which is why they are usually considered invaluable financial instruments when facing retirement from the world of work.
To open an IRA savings account, a driver’s license (or other type of identification issued by the United States government) is usually required; a Social Security Number (SSN); Employer name and address and beneficiary information.
The opening of this account can be done through investment funds, banks, life insurance companies or stock brokers.
Here we tell you what types of IRA accounts exist in the United States.
3- Invest aggressively with a view to generating long-term wealth
2022 was one of the most brutal years for US financial markets in decades, but this is not to say that you should refrain from investing entirely. Specialists consider that investing in the Stock Market in the long term can be beneficial, even if the present seems of little value.
What you should keep in mind when making investments is to see your long-term gains and avoid looking for short-term or immediate gains.
Likewise, you must make investments with funds that you are not afraid of losing, since risk is inherent in any investment in the Stock Market.
4- Invest (with caution) in the shares of your company
Specialists consider that it is important that workers have investments in the companies in which they work (approximately 10% of your investment portfolio), and that they be attentive to any financial movement made by their employer company.
5- Do not take funds from your 401 (k) plan if you change jobs
If you plan to change jobs, it’s best to protect any savings you’ve built up in your 401(k) plan. To do this, specialists recommend that you immediately redirect them to an individual IRA savings account, so that you can invest these funds in the way that suits you best.
Also consider staying at your current job so you can take advantage of your employer’s contributions, which can be lost if you leave the company too soon.
To do this, you should check with the Human Resources department so that you know how exactly your 401(k) plan works and what its conditions and terms are.