5 Realistic Ways to Save for Retirement

As a baby boomer, retirement is undoubtedly at the forefront of your mind right now. Most people in this age group hope to retire and become financially free.

Unfortunately, most people also experience the ‘retirement savings gap. The statistics about retirement savings are grim. It’s no wonder many boomers are anxious about how to save for retirement.

Before accepting defeat, there are techniques you can put in place to begin building wealth. If you want to secure a smooth-sailing retirement, you’ve come to the right place. Let’s dive in!

Automate and Prioritize Retirement Saving

One of the most realistic ways to save for retirement is by automating and prioritizing your retirement savings. Setting up an automated retirement savings plan can help you maximize your contributions. Doing so will help avoid feeling overwhelmed by budgeting.

Automating deductions from your paycheck is an effortless way to grow your retirement nest egg. With this combination of automation and prioritization, you’re well on the way to a secure retirement.

Consider your Tax Strategy and Retirement Products

Tax strategies such as contributions to retirement accounts and making use of the new Roth IRA can help you save on your taxes.

This can be an advantage while building a nest egg for the future. Retirement products like a 401(k) or IRA will provide you with tax-advantaged investments. They can grow over time to provide a comfortable retirement.

After-tax investments such as mutual funds, ETFs, and stocks can also be used to build a more robust retirement portfolio. If you’re looking for more conservative options, then consider fixed annuities and CDs.

Each of these instruments has its place in a retirement portfolio. Ultimately, it all depends on the individual investor’s needs and risk appetite.

Place Retirement Savings in Low-Cost, Low-Maintenance Accounts

One of the most realistic ways to save for retirement is to place your retirement savings in low-cost, low-maintenance accounts. Examples include low-cost mutual funds, plain-vanilla savings accounts, superannuation, and Treasury bonds.

Seek superannuation advice and other professional assistance for your retirement savings. These types of accounts can get much higher returns on your money. Even better than if you invested in more expensive, actively managed funds.

Low-cost accounts need little to no maintenance. By investing in these accounts, you can sit back and watch your savings grow. As a result, you can enjoy a comfortable retirement when the time comes.

Utilize Employer Retirement Plans

Many employers offer 401(k)s, IRAs, and other types of plans where the employee can contribute a percentage of their salary each pay period.

Many employers offer a match for this type of plan. This means that for every employee contribution, the employer will match it up to a certain percentage. This is essentially ‘free money’ and is a great way to invest for retirement.

Aside from employer plans, there are other routes to retirement savings. These are high-yield savings accounts, annuities, and self-directed retirement accounts.

Start Early: Save for Retirement Today

Saving for retirement takes planning and commitment. When building your retirement savings plan, consider realistic ways to save. This can be a systematic contribution to your retirement account or Automating savings.

Taking action to save early will better position you for a successful retirement. The best time to save for retirement is today!

Remember to keep coming back for more articles that will help you with finances, careers, and more.


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