Creating A Retirement Savings Plan To Secure Your Future

Written By Mason Roberts

Published on February 29, 2024

Planning for retirement is an amazing way to secure your future. The right retirement savings plan can potentially help you maintain the same quality of life even after you stop working. Furthermore, it’s a great option for those who don’t want to fully rely on Social Security.

When should you begin thinking about retirement and what savings plan should you go for? Let’s find out!

A Step-By-Step Guide To Creating A Retirement Savings Plan

1. Know When To Start

Ideally, you would want to start saving as soon as you begin working. There are no age limits to open a retirement savings account as long as you earn income to contribute to it.

However, even if you’re not in your 20s, 30s, 40s, or even 50s any longer, that does not mean that there is nothing that you can do. Remember that it’s better to start saving for your retirement late than not saving at all.

creating a retirement savings plan to secure future

2. Find Out How Much Money You’ll Need

The average retired household spends about 25% less than an average working household. With that being said, how much you’re going to need to cover your monthly expenses once you retire is based on the individual.

In any case, you should aim to have around 70-90% of your annual pre-retirement income covered through both savings and Social Security.

3. Consider Your Other Financial Goals

Though saving for retirement is most certainly an important financial goal, remember that it’s not the only one.

You might also need to create an emergency fund or pay down student debt, for example. So, you have to be prepared to budget for every goal separately.

If an Employer’s Retirement Plan already covers you, you might not have to think about your retirement savings just yet. However, you can choose to contribute more if you don’t have other urgent financial goals.

If you don’t have access to employer retirement plans, try to make sure that at least 20% of your monthly income goes toward covering all of your savings goals.

4. Choose The Most Suitable Retirement Plan

In the majority of cases, a 401(k) with an employer match is the perfect place to start.

But you might want to take an IRA (Individual Retirement Account) into consideration if you:

Aren’t covered by a workplace plan
Have found out that the workplace plan that you’re offered does not come with a match
Want to make additional contributions

There are a few different types of IRAs that you can choose from which can be set up with a bank, life insurance company, mutual fund, or stockbroker.

5. Determine The Right Mix Of Investments

Almost any type of investment is permissible inside an IRA.

Low-risk investments include Treasury bills, CDs, money market funds, and US savings bonds. Mutual funds, stocks, bonds, and exchange-traded funds are considered to be higher-risk investments. However, mutual funds are quite a popular choice for IRAs due to the diversification they offer.

It is generally recommended to invest somewhat aggressively while you’re still young and have plenty of time until your retirement. If you’re already close to your retirement age, you might want to select only low-risk investment options.

saving money for retirement

When To Go For A Loan?

Though you can withdraw money from your IRA or 401(k), early withdrawal will be subject to penalties. Of course, nobody wants an unexpected expense to ruin their plans, and taking money out of your retirement savings account is something you should avoid.

So, if you urgently need money to take care of a medical bill or vital home repairs, you might want to consider taking out a loan.

How To Choose The Right Lender

With Title and Payday Loans, you wouldn’t have to worry about finding a trustworthy lender. We work with a network of licensed vendors all across the country, and we can quickly connect you with a suitable lender as soon as you provide the necessary information through the convenient online form at TitleAndPaydayLoans.com.

We understand that the last thing you want to do in an emergency is waste your time. So let us help you get the much-needed cash ASAP.

Take Care Of Your Financial Issue Today!

The sooner you start taking the necessary steps to secure your future, the better. Unfortunately, all your efforts will go down the drain, if an emergency makes you withdraw money from your retirement savings account. The good news is that this is not the only way out of a challenging financial situation.

At Title and Payday Loans you can save your time and nerves and connect you with a suitable lender in your area. Simply fill out the inquiry form right now at TitleAndPaydayLoans.com and we’ll help you secure the loan money that you need in the shortest timeframe!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.