Even if you are still a couple of decades away from retiring, now is the time to think about what your money can do for you. Perhaps you want to pay off the mortgage, help your grandchildren or start a new hobby. Whatever your vision, financial vehicles such as a 401 K retirement plan can help you reach your goal.
Continue reading to walk through three steps that can ensure you are headed in the right direction.
1. Save and Invest
According to most experts, 10% of your income added with employer contributions can boost your retirement income. If you got a late start, more than 10% might be necessary. If that is too much right now, save what fits your budget.
2. Have Options to Fill Financial Gaps
Even putting as much as possible into your 401 K retirement plan could leave gaps between how much you have and how much you will need. Managing current debt and making IRA contributions could shore up more money.
3. Check Your Progress Annually
At least once or twice every year, check your asset allocation. Do your retirement accounts match your goals and risk tolerance level? Determine whether you need to start saving more by changing your deferral amount or adding an IRA to your retirement portfolio.
Review everything to see if any adjustments are necessary.
Make the Next Step the Right One!
Having a 401 K retirement plan is one of many excellent vehicles for your future. Arm yourself with as much information as possible for a healthy financial retirement.
