Whether you’re in your early 20s or late 50s, it’s always a good idea to be reminded of the basics of saving for retirement. From when you should start to how much you should aim to save, we have the information you need to set yourself up for a relaxing retirement. 

  1. The earlier you start, the better. 

If you’re in your 20s, take advantage of the fact that you can start saving for retirement long before others usually think to. Even a few extra years of saving makes a world of difference in the long run. It’s better late than never, though, so if you weren’t as proactive, don’t worry. Don’t procrastinate any longer and start saving now. 

  1. Open an IRA. 

An individual retirement arrangement (IRA) is a great starting place as your earnings grow over time. There are Traditional and Roth IRAs, both with their own benefits and drawbacks. Here’s a quick rundown of each: 

  • Traditional IRA: Contributions grow tax-deferred 

  • Roth IRA: Contributions grow tax-free 

If you’re having a hard time deciding which is right for you, contact us and we’d be happy to assist you. 

  1. Automate your savings. 

Anything is easier when it’s done automatically, and the same goes for saving money. Your bank can set up automated savings so you don’t have to do the transfer yourself. This is a good way to make sure you reach your savings goals each month. 

  1. Adjust your budget frequently. 

As time goes on, expenses change. Your budget will need some adjusting over the months and years, so make sure you’re checking in often. If you get a promotion, put more money towards retirement each month. But, on the other hand, if you lose your job, it might not be possible to continue saving as much as you once did.  

  1. Take advantage of your employer’s 401(k). 

By law, you don’t technically have to match any part of your employer’s investment in a 401k plan. However, it’s smart to make sure you contribute enough to take full advantage of the match. There’s a lot to learn about 401(k) contributions, so visit this website to learn more about the details. 

Saving for retirement may seem both far off and intimidating, but American State Bank is here to make the journey as stress-free as possible. There’s no better time than now to get started! Learn more about the retirement options we offer here