4 Ways to Boost Your Retirement Savings
The golden rule for retirement planning is the sooner you start to save and invest, the better off you will be. According to the Centers for Disease Control and Prevention (CDC), the average U.S. life expectancy is 78.6 years. If you’re currently on the other side of 50 and are still in good shape, chances are you might live much longer!
A longer life calls for smart financial planning and even if you starting saving late, there are still ways to grow your savings fund. In this blog, we’ll present 4 ways to boost your retirement savings.
Cut Down on Major Expenses
Start reviewing your budget to identify both major and minor expenses that you can cut down without affecting your lifestyle. Some common examples include refinancing the mortgage and taking public transport a few days of the week.
Exercising and staying fit isn’t what you’d expect to see as part of a retirement savings plan. According to a study published by the Centers for Medicare and Medicaid Services, the average healthcare costs per year are expected to reach as high as $15,000 by 2023. The figures rise as you go up the age bracket. Eating healthy and working out can help you reduce those expenses considerably.
Take advantage of your employee benefits, medical insurance benefits, and any sponsored plans you have at your disposal. Often, these are classified as “out-of-pocket” expenses that don’t cost you anything.
According to the Harvard Health Blog, exercise is known to repel diseases, improve memory, and strengthen physical functioning, allowing you to stay in shape as you grow older.
Increase Retirement Contributions
If you have access to an employer-sponsored program such as a 401(k) or 403(b), sign up today or you’ll risk losing money. This will allow you to save a larger portion of your income without sacrificing your monthly budget, as stated by the Bank of America. Employers usually match 3-6% of your contribution which allows you to save a significant amount over a 10-20 years.
Open Up an IRA
In addition to availing a 401(k) or 403(b), you can also set up a Roth IRA especially if you’re under the income threshold. The earnings are tax-free in retirement with a 7% rate of return. This means that if you invest $4,000 today, it’ll grow to $208,000 in 21 years!
Another smart move would be to open a gold IRA. Gold and silver IRAs make for stable investments that secure your retirement fund. At Orion Metal Exchange we enable clients to invest in tangible assets through third party storage, accredited retirement accounts or home delivery with perks like zero transfer charges and zero account set up fees! Contact us today for more information.