Though most people know that “technically” they’re supposed to start investing in their twenties, the truth of the matter is that most people end up putting off thinking about their retirement accounts until they’re in their thirties at the earliest. Freedom Debt Relief Reviews knows that when you hit your thirties, you’re probably in a more financially stable position to begin thinking about your long-term financial goals- though it’s always better to begin investing earlier, it’s never too late to begin or restructure your financial health. If you’ve been putting off thinking about your finances until now, don’t panic- Freedom Debt Relief Reviews as compiled the best tips for those who’ve already celebrated their thirtieth birthday to begin thinking about retirement and investment profiles.
Start with your 401K. Without a doubt, the most useful financial tool that you will have at your disposal for retirement savings in your thirties is the 401(k). Now that you’ve likely moved out of the underemployed status that most recent college grads find themselves in, you are likely working for an employer that offers 401K plans to help you save for retirement.
The 401(k) account has a high annual maximum compared to other retirement savings accounts (an $18,000 annual cap vs. a $5,500 annual cap for a Roth or traditional IRA account, for example), and can be automatically withdrawn from your pay before tax deductions. The best part is that Freedom Debt Relief Reviews has found that most employers also offer a contribution-match guarantee up to a certain percentage of your annual salary- can you say “free money?”
Set up a Roth IRA. Though Roth IRAs have a strict contribution limitation ($5,500 annually if you’re under the age of 55), contributions are taxed when they are deposited- which means that you can withdraw them tax-free when you cash out your savings. This allows your money to grow tax-free within the account as well. Freedom Debt Relief Reviews recommends diversifying your retirement savings with a supplemental Roth IRA, and when it’s maxed out, going back to contributing to your 401(k) account.
Don’t focus too hard on retirement. It’s easy for investors in their thirties to get caught in the trap of laser-focusing on retirement and neglecting other investment interests like college funds for their children and saving up for a first or new home. Though Freedom Debt Relief Reviews recommends prioritizing savings for retirement (as this is often the largest and most daunting financial goal that most people need to consider), saving for other long-term expenses can be accomplished by ensuring that you have an emergency safety net and by stashing away newly found money (for example, from a raise or an inheritance) into savings accounts that will grow over time with interest. Prioritizing other financial goals can also leave you with more assets in the future as well- for example, the property you invest in can be an excellent asset to liquefy if you come up short for retirement and are looking to move anyways.
Your thirties can be a crucial time for your financial future- the moves you make now will determine whether or not you’ll eventually have enough to retire on time or if you’ll need to continue working to make up for lost time. Luckily, if you’re in your thirties, there is still plenty of time to rectify past financial neglect- by making a plan now and working with your employer, you’ll be on the road to retirement and other financial goals in no time at all!