Step 10 of 12 to Financial Wellness: Plan for Retirement

-

Whether you’re a high school student, a college graduate just stepping into the world of adulthood, or someone who’s been navigating adult life for years, it’s crucial to start thinking about retirement. The reality is, it’s never too early or too late to begin saving for your future. Taking action now can set you up for financial success down the road. Here’s how you can get started:

Contribute to a 401K

If your employer offers a 401(k) plan, take advantage of it! Contributing to a 401(k) is one of the most effective ways to save for retirement. Many employers provide matching contributions, which is essentially free money for your future! If you’re already contributing, consider increasing your contribution rate to maximize your savings potential. If a 401(k) isn’t available through your employer, look into opening an Individual Retirement Account (IRA) or other investment options through your credit union. 

Create an Emergency Savings

Establishing an emergency savings account is vital for financial security. Aim to save at least six months' worth of living expenses to cover unexpected costs, such as medical emergencies or job loss. By regularly contributing to this fund, you’ll ensure that you have a financial cushion when life throws you curveballs.

Open a Certificate Account

A certificate account can serve multiple purposes, whether as an emergency fund, vacation savings, or simply a "just because" account. These accounts often offer higher interest rates than traditional savings accounts, providing an excellent way to grow your savings. This extra financial buffer can bring peace of mind when planning for vacations or handling home repairs, while also contributing toward your long-term retirement goals.

Create an Action Plan for Your Future

As we’ve highlighted, it’s never too early or too late to start saving for retirement. Having a well-defined action plan in place is essential, as life can be unpredictable. Whether you’re just beginning your career or are well into it, consistently setting aside money for retirement will help you build a solid financial foundation for your future.

By taking these proactive steps today, you can ensure that you’re on the right path toward a secure and comfortable retirement. Don’t wait—start planning for your future now!

All comments within the New Horizons Credit Union blog are the responsibility of the commenter, not the blog owner, administrator, contributor, editor, or author. By submitting a comment on our blog, you agree that the comment content is your own and to hold New Horizons CU and all subsidiaries and representatives harmless from any and all repercussions, damages, or liability.




Comments

Post a Comment

Popular posts from this blog

6 Steps to Take Before Retiring

-
Image
  Everyone counts down the years, days, and minutes until they can retire. But before you retire, there are six important steps you need to take to retire worry free.  1. Define Your Retirement When you define your retirement, you think about what it is you want to accomplish. Do you want to travel the world, the states, or stay at home and relax? Do you want to make improvement to your home, or sell your home and purchase an RV? When you know exactly what it is you want to do when you retire, you will have an easier time transitioning from work to retirement life. 2. Take Stock of Your "Assets" This is an important step because you're taking a look at all the money you have. Look at how much you have in your savings accounts, retirement accounts, stocks and bonds, and any other savings accounts you may have. This will give you a better idea on how much money you can allocate to everything
Read more

7 Steps to Start Saving

-
Image
  Saving can be a little intimidating when you don't know where to start. But remember, the biggest mistake you can make is not saving. Below are a few tips to help you get started with saving. 1. Track Your Expenses The first step to start saving is to track your expenses. Figure out where your money is going, how much you are earning and spending, and how much you have left over. If you use a credit card, you can get a chart with your expenses broken down where you can see what you're spending your money on. Once you figure out where all your money is going, categorize it so it's easier to see where you're spending most of your money. Use this to create a budget in step two.   2. Create a Budget Now that you have your categories, create a budget so you can minimize spending. Categories should include things like: rent / mortgage car payment / car maintenance bi
Read more

Get Your End-of-Year Financial Health Checkup

-
Image
As the eagerly awaited holiday season gets underway, the end of the year is a great  time to get a financial health checkup to make sure your finances are on track.    With regular checkups, you can fix small problems before they become big issues.   This year-end, keeping financially healthy is especially important due to many economic uncertainties  related to inflation, inventory shortages, as well as the expiration of COVID relief programs put in place more than a year ago to help people manage through the pandemic. Your Financial Health Check Up   Like a physical health checkup, a financial checkup examines your vital signs to be sure all is well when it comes to your financial health and wellness.  Do you have an emergency savings account? How do your credit card balances look? Are you tracking monthly income and expenses? What does your credit score and history look like? These are a few of the vitals reviewed during an end-of-year financial
Read more