Are you interested in learning how to save for retirement? Whether you’ve just launched the early stages of your career or whether you’ve been trying to save for decades and are coming up on retirement soon, it’s important to strategize as early as possible in order to ensure an adequate nest egg. Here are some top strategies you can use to save right away.
Ensure You’re Saving Enough Based on Your Age and Professional Stage
One way to ensure you’re on track to retire in full fiscal comfort is to check your current savings against your age and stage in your professional life. For instance, a general rule of thumb is to try to save:
- One time your yearly salary at age 30
- Three times your yearly salary by age 50
- Eight to ten times your yearly salary by age 65
Invest in a Mix of Low- and High-Risk Funds for Maximum Yield
Your investments are a quick and straightforward way to help your nest egg grow. To avoid risk while getting maximum yield, consider investing in a mix of funds, such as:
- A Roth IRA
- A Simple IRA
- Stocks and bonds
- A 401(k) plan
- A 403(b) plan
- A money market account
- Government and employer-sponsored pensions
No matter how far away or how close your own retirement may be, knowing how to save for retirement is crucial. With these strategies, you can ensure your nest egg grows steadily over time.