Saving for retirement can seem like a daunting task. As with any long process, the better prepared you are before you need it to be completed, the better off you will be in the long run, and the easier it will be. Preparation is the key to saving for retirement. Know what you have to do when and you will reap the benefits of your preparation when you actually retire. Here are some tips to get you started:
- Start early. Financial planners can’t emphasize this point enough. Young people don’t think that they need to start thinking about retirement until they are approaching sixty. The truth is, the earlier you start, the more prepared you will be when the real planning starts as you reach the end of your career.
- Think of your savings as another expense. We all have daily, weekly, and monthly expenses, from laundry to gas to food. If you treat your retirement savings as another expense, it will be easier to put away money for retirement on a regular basis.
- Set aside as much as you can in a tax-deferred account. The more money you have in tax-deferred accounts, the less likely you are to spend the money in those accounts before your retirement age. This is because of the tax penalties that apply when you spend the account before you turn sixty.
These three tips are good ways to get started putting away money for your retirement. They come highly recommended by the experienced and talented accountant Gary Kapanowski, based in Michigan.
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