Saving For Retirement From Your First Job

shutterstock_138847463For many people, saving for retirement is something to do for later. It does not always come to one’s mind early in their working years. But the fact of the matter is that saving up for retirement should be done as early as possible. You need to prepare and start saving up even as early as starting on your very first job. Here are some things that will help you become more effective when saving for your retirement.

Make contributions automatic.
Younger people may not consider saving for retirement so early in their working life. For those who do, it can easily be made less of a priority among other things. But the best way to force yourself to save up is by making your contributions automatic. Try to set up automatic deductions from your bank account that goes directly into your retirement account. This way, saving up for retirement becomes basically effortless and convenient.

Know your tax breaks.
It is important to know that money that you set aside for your retirement can also help minimize your tax burden. They come either in the form of tax credits or tax deductibles. Make sure that you know how to take advantage of the tax breaks you can enjoy when you use your income to save up for retirement.

Avail of a 401(k) match.
One way you can get more out of your retirement fund is by availing of a 401(k) match from your employer. Some companies offer to match the 401(k) contributions you make on your retirement fund. That is essentially free money that will eventually grow and become a large percentage of your retirement fund. The earlier you are able to get a 401(k) match, the better.

Consider getting an IRA.
If an employer does not offer a 401(k) plan or does not provide a match for your contributions, you might also consider getting an individual retirement account or IRA. Not only will it help you save up for your retirement, the amount you deposit into your IRA enjoys a deferred payment of taxes. In essence, you can have some tax-free income growing for you in your IRA.


Posted by Ardent Editor on Aug 22 2015 in Retirement 101 Tags: , , , ,

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