Retirement savings is all about building wealth. To reach your overall retirement savings goal, you need to start early so you have the time to build your savings. The typical tips for retirement savings are save early and save consistently. There are a few other tips and tricks you can use to build a strong retirement savings. Keep reading for four secrets to a successful retirement plan!
Boosting your Contributions
As your salary increases, make larger contributions to your retirement savings. If you receive any bonuses or tax refunds, be sure to save a portion of that income to your retirement savings accounts as well. Different types of 401(k) plans offer automatic increases to boost your contribution amount over time so check with your retirement savings plan if they have a similar option.
Claim Tax Breaks
You can receive tax deductions for your traditional 401(k) and IRA contributions. You can also receive tax free growth on your Roth IRA accounts. If you are in the lower income bracket, you can receive a 401(k) or IRA match from the federal government through the saver’s tax credit. Take advantage of your tax savings on your retirement contributions because you are being rewarded for saving money.
Inflation is always increasing here in the United States. With retirement savings being a decades long process, the buying power of the American dollar will be drastically different from when you start saving to when you begin withdrawing. To combat the inflation that will occur, you can keep some money invested in the stock market. Another way is to invest in real estate that will appreciate over time.
Having a diversified retirement income will protect you from having major losses in income. If one of your income sources fails, you still have the other options available. Diversified income is not only having multiple income streams, but having different forms of income that are not combined. An example of this is having Social Security income and real estate rental income. An option that is becoming more popular is continuing to work part time in retirement.
These four secrets should be able to help you reach a successful retirement plan. Proper planning and goal setting is crucial for retirement planning and saving. Here at Bernard R. Wolfe & Associates, we are here to help you reach your retirement goals. We can provide tailored advice to you specific situations to assist you in reaching retirement success.