The beginning of the year is traditionally when many of us kick off our journey to achieving new goals. I have never been much for resolutions, but I do like the idea of making a step-by-step plan and being intentional when it comes to saving for retirement.
Here are five tips to get your ducks in a row in 2024—or any time!
- Set and prioritize your financial goals.
What does your future retirement look like? Decide what you want to do once you retire and create a list of goals to get you there. Whether it’s purchasing a dream home, traveling, pursuing higher education or spending more time with family, prioritize your goals and calculate the price tag of each one. Now you know what you’re saving for! - Consider meeting with a financial advisor.
If you haven’t already, consider meeting with a financial professional. They can help you sort out your wants and needs and advise you on how to save as you head toward retirement. - Pay off debts.
Be sure to add “I will be debt-free before retirement” to your goals list. No debt means more money to spend on the things you enjoy. The sooner you pay off debt, the less you'll pay in interest. Talk with your financial institution about refinancing your mortgage to consolidate debt. - Build an emergency fund.
An emergency fund is a key part of your financial safety net. Regardless of how much money you currently have in your 401(k), IRA or other retirement accounts, having at least three months' worth of expenses saved offers more peace of mind. Start by putting a small amount of cash into a separate savings account each month—try a money market account and take advantage of higher dividend rates! - Invest, invest, invest.
Unless you’re independently wealthy, it can be challenging to save enough money to carry you through retirement. Investing can provide an additional income source to boost your retirement savings. Of course, all investments come with some degree of risk, but an appropriate mix of low- and higher-risk investments can help mitigate any danger.
Whether a New Year’s resolution or just a desire to save more for your future, these tips can help you have the retirement you want.