A lot of us are so busy working just to get through the next month or even just the next week that putting money away for retirement hasn’t really even entered into our thoughts. The unfortunate reality is that you have to think ahead and find ways to save money if you don’t want to have to work for the rest of your life. If you’ve gotten a late start, there are still some things you can do to save enough to retire.
Meet With a Financial Advisor
If you’re getting a late start to saving for retirement, you may be at a loss for where to start. Meeting with a financial advisor is a great way to come up with a plan that you can use to build up your savings. They can help you figure out what your goals are and what you need to do to accomplish them. Just make sure you pick a good one. Watch out for any red flags from your financial advisor to give yourself your best chance at success.
Set Up a Retirement Plan for Your Business
As an entrepreneur, one of the things you have control over is the benefits your business offers to employees, including yourself. Include a retirement plan in your benefits to help you position yourself better for your own retirement. You have a few different options here, including 401(k) plans and cash balance plans. Each has their own pros and cons to weigh before you make a final decision. For example, a cash balance plan has much higher contribution limits than a typical retirement plan. 401(k) plans allow for separate accounts for each individual.
Maximize Your Contributions
Because you’re getting a late start on saving for retirement, you’ll probably need to set aside more than you would have if you’d started earlier. That is, if you want to have the same end result, anyway. Different types of savings accounts have different maximum contribution limits, and those can change depending on the year and how old you are. Maxing out your contributions can help you catch up so you can save up enough for retirement.
No one wants to work for the rest of their life. Retirement requires you to have planned ahead and set things up so you’ll have income when you aren’t working though. If you’ve gotten a late start, it’s going to be more challenging to make sure you have enough money set aside, but it is still possible. Do future you a favor and make sure you prioritize retirement savings so you can enjoy the later years of your life.
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