Saving for retirement is often talked about, but how much do you really know about saving for the future? With different account options, different financial goals, and a whole lot of unknown, saving for retirement is a stressful, but essential thing to start doing today.
Account Types: When it comes to saving, there are different accounts that can be used. So how do you know which is the best for you? To start, it is important to distinguish between a typical savings account and a retirement savings account. Rather than opening a basic savings account look into your options of 401k, IRA, or ROTH IRA savings accounts. 401k accounts withhold funds directly from your paychecks and places those funds into your 401k. Traditional IRA accounts grow tax deferred until funds are withdrawn, while ROTH IRA savings accounts grow tax free, as they are taxed upfront and are not taxed on withdrawals after the age of 59. There are more account options beyond these three, and regardless of which best fits you, it is important to know what your account can do for you.
How much should I be saving? It is difficult to say for certain exactly how much money you will need in retirement. Typically, investors recommend that beginning in your 20’s you save between 10% and 15% of your paychecks towards your retirement funds. To learn more about your individual savings plan, meet with a financial advisor!
Where do I start? Retirement is something that is often overlooked as it seems so distant, however the sooner you begin preparing the better off you’ll be later on. The best place to start is to meet with a financial advisor to begin looking into your specific retirement goals, your current progress towards those goals, and creating a plan to achieve them.
Visit a Granite State Credit Union location to learn more about how we can help you start planning for your future!