We all know the value of a retirement savings account. The last thing you want is to spend your life working a job you hate in order to survive. Thankfully, there are ways to boost your retirement savings so that you can enjoy your golden years. Let’s look at how to boost your retirement savings.
Increase 401(k) Deposits
You want to make sure you’re putting as much into your 401(k) plan as possible. At the very least, if your company matches up to a certain percentage, make sure you’re putting that much into your account. Because 401(k) payments are deducted before taxes (unless it's a Roth 401(k)), you may not even notice a change in the amount you take home each pay period despite increasing your contributions.
Open an IRA
In addition to your 401(k) plan, you can also open an IRA. It makes sense to have as many investment opportunities as possible. If you’re young, you can afford to make riskier investments that have the potential to have huge returns. As you get older, you might want to be more conservative and choose investments that have smaller returns but smaller risks as well.
Make Saving Automatic
Instead of moving money to a savings account each pay period, set the money to be automatically moved to your IRA. When you don’t have to think about moving the money over, it’s much easier to boost your retirement savings.
Diversify Your Investments
A 401(k) and IRA aren’t your only options. You can diversify your retirement savings by investing in collectibles, coins, savings bonds, real estate, etc. The more diverse your investments, the better. In other words, you don’t want to put all your money into one basket.
Deposit Bonuses and Tax Returns
Last, but not least, save the bonuses and tax returns you get over the years toward your retirement. It may not seem like much to put away $6,000 a year, but over the span of 20 years that’s $120,000. Would you rather blow the money or be able to retire at a younger age?
Retirement savings is important. No one wants to be stuck working a minimum wage job to make ends meet. Be smart about your income and how you invest it. Take the time to be diverse with your investments. Be risky while you’re younger but be conservative as you get closer to retirement. If you’re financially responsible, you can boost retirement savings.