4 Moves to Make in 2013 To Secure Your Retirement


Saving for retirement might sound daunting, but it doesn’t have to be a complicated process. If you’re fortunate enough to have retirement benefits through your employer, you’re already doing better than most. Regardless of your current position however, there are ways to ensure you are maximizing returns and optimizing your situation down the line.

The most important thing to keep in mind is that, just by being aware of your savings and re-evaluating your options on a regular basis, you are priming yourself for success.

Read on for four actions you can take in the coming months to secure your retirement in the future.

1. Start now

This is the most important step for building your nest egg. No matter how small your contributions are to a retirement account, start now. The longer you delay, the less growth your account will see over time. Never underestimate what compounding interest can do for you. The incremental increases in your account will become a much larger lump sum in the future purely based on the passage of time. One way to make some extra income is through investing. Learn techniques from financial experts at Online Trading Academy to minimize losses and maximize gains. Start contributing those earnings to a savings account now and let your money do the work for you.

2. Set up automatic payments

If you can’t trust yourself to transfer money into a savings account on a regular basis, or you don’t want to deal with the hassle, there are auto-pay systems available through most banks, at no cost. You can arrange to have funds withdrawn from each paycheck and put into a separate savings account, or you deposit money into a retirement fund directly from your employer, before taxes.

3. Take advantage of your employer’s contribution matching plan

Not everyone works for the type of organization that provides such generous retirement benefits to its employees, but if you’re fortunate enough to have the option of contribution matching, by all means, don’t overlook the chance to profit. For every dollar you put in your 401K, your company will match you up to a certain percent and help set you up for financial security when you’re no longer full-time.

4. Re-evaluate your portfolio

Most financial experts recommend individuals diversify their portfolios so that they might enjoy the various levels of returns, from the guarantee to high risk/ high reward. In your younger years, it makes sense to include more risk in your portfolio (like day trading), but as you approach retirement age, you want to increase the stable, reliable methods of earning (like low yield government bonds. One way to experience the best of both worlds is to invest your assets in annuities.

Americans contribute, on average, just 4% to their retirement accounts, which means many will be forced to continue working far beyond the official date of leave. For some, that’s a great option, but it’s not for everyone. Make smart choices now when it comes to your savings and you’ll benefit tremendously down the line.

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