It’s never too early or too late to plan for retirement! Achieving security later in life comes down to several key factors: saving early or saving more often, setting clear goals, investing, and staying informed. Here are 4 essential tips and resources to help you fly!
As recently as 2021, the Center for Global Policy Solutions reported that 83 percent of black seniors do not have the assets needed to retire.
The main contributing factors can be reduced to the prevention of wealth creation, the lack of economic inclusion and the inaccessibility of financial education.
With collective voices and hands, we can turn the tide. Sound strategic advice and financial education resources are how we get started.
1. The Early Bird: Save early or save more often
The key to retirement is time. His best friend and guide on the journey to wealth creation, time transforms his financial bottom line.
“How to put time on your side?” You can ask. Starting early and saving often is the best way! Saving small amounts each month early in your career is one example of how you can dramatically improve your retirement saving results.
If you haven’t started saving early, then save more often! You can adapt to less time by saving more and saving often. It is never too late to save.
2. Fly high: set your goal
Your goal can change the way you think! Determine how much you need to save for retirement, based on your estimated retirement expenses.
By setting a goal, you put yourself in the position of your future self and begin to do the work necessary to reach your goal.
3. Fly Far: Maximize Contributions
Take advantage of retirement accounts like 401(k)s and IRAs. Contribute as much as you can, especially if your employer offers a matching contribution, which means that for every dollar you contribute, your employer may also contribute a certain percentage, up to a certain limit.
For those 50+, please consider upgrade contributions, if eligible, to help you make up for lost time if you’re a bit late to the game.
4. Mixed nest: diversify your investments
The old adage says: Don’t put all your eggs in one basket! It is very true. Spread your investments across different asset classes to reduce risk and increase potential returns.
What this means, in a nutshell, is that you want to explore your options with investments like IRAs and 401(k)s, to name a few.
With OneUnited Bank on your side, you can save and catch up on what really matters at this critical period in your financial journey!
We have the best option for those over 65 when it comes to saving: free checking account, More than 100,000 surcharge-free ATMsand convenient personal service. sign up today!
Take control of your financial knowledge. go to our Financial Education Center and start our retirement preparation course to learn more about the ins and outs of retirement and how you can stay prepared for retirement.
We’ve compiled the most up-to-date retirement savings rules so you don’t have to.
Here are the highlights:
- The amount of combined contributions (employee and employer) to retirement plans increased from $61,000 to $66,000.
- The retirement age for retirement accounts increased from 72 to 73 years.
- Changes to employer-provided 401(k) accounts include emergency savings accounts and emergency withdrawals at an earlier age.
Just click New Retirement Savings Rules for 2023 at Preparing for retirement to access the full article and learn more about IRA, 401(k) and 529 plans.
The money doesn’t stop with contributions. Check out our other courses on wealth transfer, estate planning, and much more!
Whether you’re just beginning your retirement planning journey or nearing the end, staying informed about the rules and the best ways to plan, save, and invest can always help. With these tools, you can launch yourself to the next level and be more confident when you reach retirement! #blackbank
The post 4 tips to prepare for retirement! first appeared on OneUnited Bank.