Retirement moves

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Though you might be decades away from quitting your job forever, taking the proper start is everything when it comes to planning your retirement. During each stage of your journey towards retirement, you need to be aware of the crucial money moves to make, your target savings goals, and the ideal way in which you can create the best investment portfolio.

These factors all change over time depending on where in your career you are. If you fall into the category of 20-30-something-year-old professionals, you are likely at your peak years of earning. That means you should start now preparing for your retirement. Here are some of the best techniques that you should follow in order to stay debt-free post-retirement. Check them out:

#1: Collect the entire company match for your 401(k)

In case you’re beginning to save money at the age of 35, you will be required to put aside 17% of your income for 30 years so that you can retire properly at the age of 65, as per researches done by the American College. If you start at the age of 30, your target will decrease by 12%. If you begin at 25, the target will drop to 8.8%. If you are younger than 25, start by saving 6%, or if that is too much try saving 3% until you can afford to put aside a little more.

#2: Ask for $5000 more in your salary

The amount that you earn during the first 10 years of your job will always have a long-lasting impact on the wealth that you accumulate. As per studies done by the Federal Reserve Bank of New York, the typical wage of the worker grows between the age of 25 and 35. So, if you can get a boost in your payment of $5000 when you are around the age of 25, this can sum up to $635,000 more in the earnings that you make over the lifetime. You should negotiate irrespective of whether you’re grabbing a job offer or you’re looking for a raise. It is sad enough to note that just 35% of millennials have never asked for a raise.

#3: Be smart about paying low investment costs

It is always a smart and wise decision to keep investing costs down. When you’re still young, you should lock in on the low-fund expenses, this too can be a rewarding experience. Say you invest $1000 in a month in a retirement fund for 30 years, you will end up having $762,000 keeping in mind the average annual returns and mutual fund fees.

#4: Try to know yourself in the future

You should try to picture yourself in the future, this will give you a clear idea of your savings mindset. Research has shown that when workers are allowed to examine their possible lives at the age of 65 they are 65% more likely to enroll in a retirement plan. Imagine what you want your retirement to look like and begin to prepare accordingly.

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