Is the clothing you wore as a kid making a comeback? The bad news. You should probably start thinking about retirement. The good news. We have some helpful investing tips to share!
3 TIPS TO INVEST FOR RETIREMENT
Tip 1: Ask about 401(k) matching. A 401(k) is a benefit offered by employers to give employees dedicated retirement funds. You set a percentage of each paycheck to be invested in a 401(k) account, which is managed by an investment company. If a 401(k) is one of your benefits, you may also have access to company matching. That means your employer matches a percentage of each contribution. Basically, you could get free money.
Tip 2: Choose the right IRA for you If your employer doesn’t offer 401(k) plans, or if you’d like more reliable returns, you can open an individual retirement account (IRA). There are two types of IRAs: traditional and Roth. The big difference between them is when you get a tax break. Traditional IRA contributions are tax deductible, while Roth IRA withdrawals are tax free at retirement.
Tip 3: Start saving ASAP! Whether you choose a 401(K), an IRA, or both, the most important thing you can do is to start saving as soon as possible. Not only will you set more money aside, but you’ll also earn more [interest/dividends]. So, start saving whatever you can, even if it’s just a little. Just get started and keep it up. You can always add more later.