Saving for Retirement
What are your financial plans long term? It’s great to make money now, but it is important to save for the future as well. I try to fund my IRA every year as much as I’m allowed. By forcing myself to put money away, I am saving for the future. I would encourage everyone to be fully enrolled in any retirement plan available to them, whether an IRA, 401k or other retirement plan. A bit of planning and saving now will make for a much more comfortable life in the future. Additionally, with Social Security going the way it is, can you really count on it to be there long term when your financial well-being hangs in the balance?
401k plans may not offer a full array of investment choices, but IRA’s offer the full spectrum. If you are a self employed individual, you can invest your IRA money almost however you want. Stocks, bonds, mutual funds, mortgage pools, first trust deeds, even real estate are options with IRA’s. Depending on many factors, you can put a mix of various investmets together to fit your risk tolerance. I like to keep control over my investments, and keep up with the current events and news to allow me to continue to make proper decisions. If you don’t have the time, knowledge or, most of all, the desire to manage your investments, talk with a financial planner. A good plan goes a long way!
If you are not self employed, you still may have options in your 401k or other plan. Look into it, you should have access to at least a few differant funds or programs. Many employers have a matching program, they will match the funds you put in with additional funds. Make sure you are contributing at least enough to get the full amount of this matching program, it’s free money! If you don’t think you can afford to put any money away, take a closer look. You are not taxed on the money that funds your retirement account, your take home pay will not be affected as much as you might think.
I’m not a financial planner, but this is some basic sound advice. Money compounds over time. With even a small return, what seems like peanuts today, compounded over 10, 20, 30 even 40 years, becomes a secure retirement income for the future.
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