Saving for Retirement Now Will Save Your Tens of Thousands Down the Road
Here are the facts surrounding retirement in the U.S.
–Over one-third of the population readily admits they do not contribute to a retirement account, or so states a Bankrate survey.
–Not investing in your retirement while you’re still youg enough (even in your fifties), will lead to great regret when it comes time to leave the workplace. You may actually find yourself tens of thousands of dollars in the hole.
–Says another expert, it’s of paramount importance to get started on retirement on the very first day you enter into the full-time workforce.
Now that some of the hard facts are out of the way when it comes to retirement planning, you should know that if you have yet to save enough for retirement, you are not alone. The irony of retirement planning is this: some people are so busy working and building a career, not to mention raising a family, that they either don’t have time to think about a retirement plan, or they’re spending a ton of money on home renovations, school loans, country clubs, new cars, you name it.
But if that day comes where you find yourself 62 years old and retired without enough income to meet your monthly bills, there is one financial product that can rescue you from financial disaster. It’s called the reverse mortgage.
It allows you to tap into all that equity you’ve been building up in your home for years and years. If approved, you can receive your proceeds in one lump sum payment or monthly payments.
photo courtesy of Greenberg Health
Unlike a second mortgage, a reverse mortgage need never be paid back until you either sell your home or you die. Whichever comes first. To find out how much of a reverse mortgage you qualify for you can check out this handy online calculator: https://reversemortgagereviews.org/reverse-mortgage-calculator
But if you are still years away from that magical 62 year old number and full-time retirement, there are some crucial financial steps you can take to make sure your golden years don’t cost you tens of thousands of dollars in unexpected expenses.
According to a new report, this past January was a rough month for both the stock market and the crypto market. But when the markets are down, that’s the perfect time to begin investing for your retirement. After all, when there’s “blood in the streets,” the prices of assets are literally on sale. You can pick up bargains in the short term that will most certainly grow in the long term.
While close to 40 percent of American’s are without a retirement account, these same people are missing out on their greatest commodity: time. Time and money invested are the key components to a successful retirement account.
Every single year you fail to invest and allow the time required for your money to compound, you’re costing yourself upwards of tens of thousands of dollars when it comes time to retire.
It means you need to start saving as soon as possible. Here are some things you can do now to get on the retirement savings train before it leaves the station.
Find the Right Retirement Account for You
Say the experts, one major reason workers aren’t saving for retirement is because their employer doesn’t offer a retirement savings plan. But this doesn’t mean you shouldn’t be responsible for starting an investment account on your own.
You can look into an individual retirement account (IRA) that will allow you to set aside non-taxable funds so that they can compound.
Traditional IRAs will allow you to save pretax cash. It also lowers your taxable income in the short term. But you will need to pay taxes when you withdraw it down the road.
However, a Roth IRA allows you to contribute earnings that have been taxed already, making way for tax-free withdrawals when it comes time to retire. It might also be possible to withdraw money penalty free in case of an emergency.
However, depending upon your age and how long you’ve been investing, you might be subject to a 10 percent penalty.
Maximizing Retirement Savings
If your employer offers you a 401(k) retirement plan, you will save even more for retirement. Savers can actually put away up to $27,000 per year depending on your age.
Experts say the 401(K) is the absolute first place a person should look when it comes to retirement savings. Lots of employers will offer a match when you make your own contribution. They may even put in bonus cash for you which can increase the annual contribution rate.
This is free money.
Growth is the Way to Go
When it comes to assets and investments, you need to always have growth in mind. Stocks have the best potential when it comes to long term growth. Cryptocurrencies like Bitcoin (BTC) have been known to realize an average growth rate of 200 percent per year. A portion of your portfolio should absolutely include level 1 cryptos.
Even if you’re only 10 years away from retirement, you can still invest in stocks and crypto. If you’re able to weather the volatile ups and downs while dollar-cost averaging on a weekly or monthly basis, you will see some very attractive returns in the long-term.
Author: Ravi Kumarr Gupta
