According to a study by Deloitte Center for Financial Services, “Only 58 percent of us are even saving for retirement. Of that group, 60 percent have less than $25,000 put away.” That statistic left me speechless!
Here’s what I know to be true, broke and retired is not a good look.
It’s time to practice retirement savings rescue one month at a time. Here is what you can do to chart your path to financial security.
1. The hardest part is the getting started part. Check with your employer to see what retirement savings options are available. The best way to get started investing for your retirement is to pay yourself first and have the money deducted directly from your paycheck. You could also be leaving free money on the table if your employer matches your contribution.
2. No retirement plan, no excuses. Open your own Regular or Roth IRA and opt for the automatic account builder program; monthly amounts taken out of your checking or savings. Two of my favorite fund families are with T. Rowe Price and TIAA-CREF.
3. Play to win with retirement catch-up. If you are over age 50, you can sock even more away because you can opt for the retirement catch up option. It allows you to contribute above the maximum of 6500.00 for a Regular/Roth IRA or $23,000 in employer sponsored retirement plans.
If you start investing $100.00 monthly in a growth mutual fund today, you could have a nest egg of several thousand dollars ten years from now. Making the right choices now can impact the lifestyle you’ll enjoy in the future. Don’t know where to begin? Start by reading this excerpt of Nickel and Dime Your Way to Wealth. That’s how you nickel and dime your way to retirement one month at a time.
Deborah Owens is the Wealth Coach. She is the author of three books; most recently critically acclaimed, A Purse of Your Own: An Easy Guide to Financial Security, published by Simon and Schuster. Owens is a 20-year financial services industry veteran and former vice president with Fidelity Investments. She is on a mission to change the lives of one million women one purse at a time through the A Purse of Your Own Campaign. Ms. Owens is a media personality who has been a contributor to CNN, ABC News Now, Shape, Essence Magazine, Ebony, Black Enterprise and is host of Wealthy Radio, which airs on WEAA an NPR affiliate in Baltimore, MD. Visit her website at https://deborahowens.com