How to Jumpstart Your Retirement Savings at 35
If you’ve woken up and suddenly realized you’re halfway through your 30s, it can be an intimidating realization. It can be even more intimidating, though, if you’ve done little to nothing to save for your retirement.
Though you have a fair number of working years left, you also have a fair number of working years behind you, meaning the time you have left to save for your retirement is already starting to fade away.
If you’re ready to get on the right track and help your retirement savings grow, though, here are a few ways to jumpstart your retirement savings at this half-decade mark.
Analyze Your Budget
When it comes to finances, you will almost always achieve what you set as your number one priority. If you want to retire at a decent age with plenty of money in the bank, then this must be your top budget priority.
To help save more for retirement, look at various expenses you have that could be better used by diverting them to your retirement accounts.
While expenses like eating out and technology may seem important now, they won’t matter much when you have to work your entire life because you didn’t save for retirement.
Diversify
Though you are still at an age where you can still be fairly “fast and furious” with your investment portfolio, you are reaching the time in your life where you need to start being more risk-averse.
A great way to do this is by ensuring your investments contain a fair bit of diversity.
Sit down with financial planners to investigate which assets are making up the largest percentage of your portfolio.
If any single asset is found to make up an outsize portion of your retirement plan, then it may be time to divest some of these assets to allow you to diversify.
Open an IRA Yesterday
If you don’t currently have an IRA, you should pause your other priorities until you’re able to open one.
Whether you choose a Roth IRA or a traditional IRA, the opportunity to invest money in your future is a key ingredient to your retirement success.
If your income is within the limits, a Roth IRA is the best option for most people, as you can allow the money you invest in the Roth to grow indefinitely, unlike other retirement plans that have set time limits as to when you must begin withdrawals.
Give yourself the gift of time by investing in an IRA.
Save for Other Expenses
If you’re on the right track when it comes to retirement saving, it doesn’t mean you won’t face adversity that could set you back.
To help prevent this risk, it’s important to save for other major expenses that you’ll face in the future.
For example, if you have children or plan to have children, it’s a good idea to save for their college expenses now, even if they haven’t been born yet.
If you start saving when they’re young, then by the time they head off to college, you’ll have a decent amount of money saved.
This will help prevent you from needing to withdraw hard-won retirement money to fund your child’s college education.
Don’t Be Discouraged
Ultimately, any time you start saving for retirement is a good day.
Though you may not be starting when you’d like, the fact that you’re starting at all is a good thing.
The important thing is not to become discouraged, as you still have plenty of time ahead of you to grow a nice nest egg that will support you in a comfortable retirement.
Author Bio:
Anica Oaks is a freelance writer who hails from San Francisco. When she’s not writing, she’s enjoying her time outside with her dogs.
Anica recommends finding a financial planner who fits your needs. Keep up with her on Twitter @anicaoaks.
Category: Retirement
