How to save more for retirement

Retirement is one of the most important life events many of us will experience. Retirement planning is overlooking your finances now to financially support yourself later in old age. Your employer-sponsored 401(k) plan is here to release you from the burden of over thinking about future. It helps you to enjoy financial freedom in your golden years. Employers help to increase the contribution by employees and that ultimately funds employer’s retirement years.

Following steps would make you get the most out of your 401(k) plan

Start from the start: Making a slow and steady start is an ultimate win and you wouldn’t have to hurry in your late 40s. As soon as you get a job or get employed, start funding a portion of your salary to your 401(k) plan because you are only saving for your older and weaker self. People procrastinate more and keep actually investing the portion of it later.

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Think of other ways: If you are solely relying on your employer’s decision for your retirement savings, then you are not saving a lot. It shows that a good amount is being transferred to the fund but you are losing a handful of retirement money from other ways. If you had a late start to your job, don’t go slow, enhance your contribution rate. Set your goal at 10% for contribution including the company match.

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Right Options: If you are shown a brand new car and you don’t know the how-to thing. What is the first thing you are going to see? The Manual. But this is not what you do when it comes to making your future secure. Most of the employees are least interested in discussing any contribution rate, in fact, they do not want any deduction from their salary. They do not participate in any such meeting either.

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Review fees: Companies keep changing their fee structure that includes investment management fees and administrative costs. Pay attention to fee disclosure rules and then debate over anything you find inaccurate or worth discussing. Invest in a traditional or Roth IRA outside your 401(k), this way you would be able to make the right mix.

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Involve experts: If life is getting enough complicated and you don’t see it figured out by yourself, call for help! Help from the retirement advisers or experts. A 25-year-old person who have a lot of time to set retirement fund targets and goals but a 55-year-old would need to consult an adviser to get unmanaged things done like paying off mortgages, pension saving etc.

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