Whenever you work hard, your paycheck reflects all your accomplishments and achievements. But at the same time, when you have enough money at your disposal, there are also wide array of new things to spend on.
You might be saving dollars for your first home or you may have just signed the agreement for a hefty mortgage loan. You may have one or more babies to provide food and your dog must have been demanding more food.
So , even though your paycheck reflects a hefty amount, there are different areas where you also have to spend money.
There is no doubt about the fact that establishing a family and buying a home is expensive and it is also easy to think that retirement goals is an impossible feat, especially when you’re in your mid-30s.
Hey, breathe easy! You won’t require achieving all your goals at once. But retirement needs to be a top priority. Here are few ways in which you can ramp up your retirement savings account.
Accumulate funds in your 401(k) savings account
In an ideal situation, you would definitely want to make maximum yearly contribution to the workplace-sponsored fund, 401(k).
As you keep moving up the ladder of your career, put each of the raise amounts in your retirement savings account and make it a point that you don’t spend them.
In case you think that you can’t afford to rack up all the pay-lifts to your retirement fund, make sure you gradually increase contributions with time.
Don’t hesitate to take an employer match as that is free money which should be given its utmost value.
Maintain a dynamic asset allocation
No, it’s not always enough to save money as you also have to keep a watchful eye on the current retirement assets to make sure you’re not blowing off opportunities for growth.
Invest wisely and strategically, take care of risk by distributing your investment in to various categories like Stocks, Bonds, ETFs, etc.
If you’re in your 30s, you need to invest assertively, thereby saving up to 80% or even 90% of assets to diverse a wide array of stocks.
You have to be diligent enough to save money and invest your dollars in the right things that have a power for growth.
Don’t allow a job change to derail your plan for retirement
In case you’ve been changing jobs for a better opportunity, don’t let it hit your retirement plan. It is seen that often some kind of rich opportunity has the impact of unsettling the savings which you’ve accumulated till date.
Most often, this occurs when people make the wrong decision of cashing out a 401(k) instead of letting it intact.
As per Hewitt, 50% of the workers in their mid-30s cash out their 401(k) accounts when they take a decision to leave jobs. Another retirement trap to steer clear from is bad timing.
Prepare yourself for your kid’s college expenses
Once you’re done with focusing on your retirement accounts, it’s time for you to focus on few other vital expenses as well.
If you have small babies at home, it’s time you start thinking about their college expenses.
You might thing that this is too early to plan for their college but the truth is that the earlier, the better.
If you’re determined to assist your kid with his education so that he never faces any kind of financial issue, you should start saving for his high school and college.
There are several tax-advantaged programs which have been designed for such purposes.
Therefore, if you’re thinking of how you can start saving for your retirement while you’re in your mid-30s, you can take into account the above mentioned tips and advices.