Thirty is a milestone birthday that brings with it a lot of self-reflection and even self-doubt. At this age, many people realize they haven’t achieved all the goals they set for themselves in their 20s. One of those goals – to start and contribute to a retirement plan – may not have come to fruition yet for you. Good news is, it’s never too late to start!
Of course, it’s always best to start your retirement plan at your first real job, but not everything goes according to plan. Start now, and you can still have a nice nest egg to rely on when it’s time to retire. Be critical of who you allow to invest your money for you. A big part of that is having a securities fraud defense attorney on your side.
Start Saving Now and Diversify
Save every month. Without fail. If you invest $2,000 each month with a four percent annual return, you will have more than $1.3 million at retirement. If you can only swing $500 monthly, you’re still looking at nearly $350,000. At 10 percent annual return, though, that figure leaps up to $1.1 million.
If you start saving right away and make it a priority, you will be comfortable later on. As a 30-something, you still have a few decades of compounding on the money you’re going to invest. Plus, you’re likely in a place in your career where you’re earning a solid salary.
Make Retirement a Priority over Education
You may be thinking of saving money for your child’s college education, which is great — but think of yourself first. It sounds cold, but it’s actually a smart strategy. Don’t invest a penny in college for the kids until you have a solid investment solution for yourself that will work for you in retirement. Period. Once that’s done, you can start adding to the college fund.
Start Your Own Side Business
Starting your own business today is much easier compared to before the internet started. Back then the barriers to entry were high because you actually had to take out a loan or a 2nd mortgage to get funding. Today you can start with as little as $100/year to build your own website. On your website you can blog and sell advertising space, sell products, or sell services. Use the profits from this to create a nice side income in addition to your regular job, but put it into your retirement account. If it’s going very well for you, consider selling your online business and putting the cash into your retirement fund.
Get all the Free Money You Can
Does your job offer a matching 401(k)? Jump on it. Put in as much as you can comfortably afford, and let your employer match the amount. After all, it’s FREE money! All of your other qualified retirement plans, such as IRAs and 403(b), may allow you to defer taxes on gains and income until you retire.
Don’t Shy Away from Stocks
Stocks are your friend…if you play them right. You have time on your side, which is ideal when it comes to the compounding effects of dollar-cost averaging. If you’re nervous about a volatile market, go with a low risk investment that diversifies your money. Let stocks work for you, so that when your golden years hit, you can sit back and relax.
You may have a 401(k) plan at your place of work, but this isn’t always enough to keep you stable and comfortable in your old age. Often times, it becomes necessary to further add to your retirement plan with a broader portfolio that you can rely on for a bigger ROI later.
Do Your Research
When seeking out a financial planner or broker to handle this plan for you, you have to be careful and do diligent research for peace of mind. Ask your financial advisor probing questions, says Forbes, such as what licenses, credentials or other certifications they have, client specialties, and a breakdown of fees.
Too often, brokers make unsuitable recommendations, leading to excessive trading, misrepresentation and unauthorized trading. Every person should know a securities attorney just in case. For professional advice to keep your investments safe, check out Thomas Law Group today.