The Best Ways to Save For Retirement
Disclaimer
Here on Selfmadesns.com I’m only giving you my life experiences. So, you may learn and benefit from my mistakes along the way. As well as learn from all of the good decisions I made. What may work for me in some different experiences is not always what you should be doing on your own. Always do your own research or speak with a professional on the subject. Better yet do both guys. It will be way more beneficial for you at the end of the day. If you want more information on our terms, please visit our terms and conditions page along with the privacy policy page as well.
If you’re out here working hard to provide for yourself or family future. Or even working to provide for a better tomorrow you need to be thinking about your retirement. I know some people don’t plan on retiring but if that’s not you, you should be planning for retirement. Today’s post is to show you your options for saving. I will also be sharing what I’m doing as well with you guys. So, let’s not waist anymore time because there’s a lot we have to get too in this post.
401(k) or 403(b)
Let’s start with the one I think everyone is familiar with. It’s the 401(k) or 403(b) Plans. These are the ones offered to you by your employer. Your employer will usually match your contributions to a limit each year. In 20240 that limit is now at 22.5k my friends with a 7.5k catch up contribution plan for anyone 50 years and older. If your job is offering you one of these plans you should take full advantage of it. Make sure you contribute the most you can as your employer is matching you. That money their matching with you is free money for you.
Traditional IRA/Roth IRA
This is for anyone wanting to plan for their own retirement. But let’s remember that you can have one of these while you have a 401(k) or 403(b) as well. So, this can be a bonus to what you have going on at your place of employment. With the traditional IRA the contributions made to this account could be tax deductible for you. Also, any investment you make with this account is tax deferred until you withdraw it. Now with your Roth account the contributions made to this account will be made with any money that has been tax. Because of that your money can grow tax free for you. Some withdrawals can be tax free if they qualify for it. They do have an income eligibility limit for this account.
Health Savings Account
This one right here guys come with several tax benefits. first one is that the contribution made to this account is tax-deductible. The next one is that all your contributions made to this account can grow tax free as well. Last on this list is that any qualified medical expense withdrawals are tax free. One more thing with this account is that after you reach 65 years old you can use the money for non-medical reasons, but they will tax you for withdrawals.
Brokerage Accounts
A brokerage account comes with a lot of flexibility for the ones that have a hard time sticking to a plan. They don’t have a contribution limit for you, and you don’t get punished for making withdrawals at all. If you plan on using the money in this account for investments, you will be taxed capital gains tax. But that flexibility kicks in once again when it comes to the options you get for investments. Also, with the times you can withdraw your money as well.
Pensions and Social Security
Again, with another one that should be well known to many of us out there. This is another one that is also offered by the employer to you for the years and service given to the company. The contribution come from your income while the employer will match to a limit as well. As far as Social Security goes, to get the full benefit on your monthly check you should wait until you’re 70 years old. Contributions from this will also come out of your income.
Diversify Investments
If none of these retirement accounts sounds like they fit your lifestyle, don’t worry about that. We have an option for you as well. You can use investments with good planning to save for retirement. With a good mixed portfolio of investments of things like stocks, bonds and other investments you can have an enjoyable retirement as well. Just keep an eye on your portfolio to make sure it’s going as planned.
Real Estate
Using real estate as a retirement plan is something that is very possible my friends. With enough rental income coming in you can be set for retirement. Or if you just want to sell off everything when you come of age and you have enough from that. You can kick your feet up and enjoy life.
Automation/Reduce Debt/Budgeting
If you do have retirement accounts but not good at always contributing what you should be for retirement. It’s ok you can take that load off your shoulders by automatically having the contributions go to where they need to go. It’s almost like out of sight out of mind. When retirement comes, you’ll be ready to live it up. This might be better for some of you guys out there. Also, something you are going to want to work on before retirement is reducing your debt as much as possible. This can bring down your living expense providing with a better living option. Also, budgeting is going to help you out as well. Being able to have a good idea of the lifestyle you want to live after retirement is going to help you greatly. Because you can start planning for it by saving and getting the things you will need to live how you want.
Summary
Hopefully you guys got a very good idea out of this post how you can save for retirement. For myself I have a good mix of things. I have the pension plus an IRA traditional that is. Which I plan on leaving my family. For myself I have investments to provide the retirement I want to have. And I can also leave it for my family as well. I think you need to have as many plan as possible. Because you never know which one will work. If you’re lucky more than one will work for you. But get with a financial expert and plan this out if you need help with the matter. Thanks for your time and the visit. Please come back and tell your friends and family about the blog as well. Good luck out there!