According to a Government Accountability Office study released in 2015, approximately 52 percent of households 55 and older have no retirement savings. This staggering number of soon-to-be retirees without a nest egg is concerning, and probably leaves those unprepared awake at night. Fortunately, there are some surefire ways to retire without financial worry.
Live Within Your Means
Staying out of debt, while paying off the mortgage on your home early, is critical to retiring worry free. Paying down your debt in a concerted manner and focusing on living within your means will set you up for a stress-free retirement. The more debt you take on, and the more risks that you take, the more you’re setting yourself up for years of heartache. You do not want to be making large debt payments the same time your trying to save for retirement, or when you make the leap from full-time to part-time employment.
Contribute to Retirement Accounts
Perhaps the most important method to avert financial distress in your golden years in to contribute to tax advantaged retirement accounts. The delay or reduction of taxes, along with the power of compounding interest, will turn small monthly retirement contributions into a sizable nest egg. When you reach the age you wish to retire, you can access these savings and sell the principal or live off the interest your investments earn. Other savings accounts are also an important part of your retirement strategy.
The key to retiring at 65-years-old or earlier is to save for retirement during your working years, using tax advantaged savings accounts, such as 401ks, traditional IRAs and Roth IRAs. Buying and holding securities in these investment vehicles will allow you to take advantage of compounding.
Contact a Professional for Wealth Management in West Palm Beach for Retirement Advice
To learn about the retirement accounts available to you and your family, seek out professionals in wealth management in West Palm Beach. You will get the guidance and help you need selecting the right investment vehicles, to meet your retirement objectives. With professional help comes the reduction of risk and the potential for insufficient retirement funding. For wealth management in South Florida, please call Vault at (561) 223-3252 to schedule a consultation.