Retirement is inevitable, yet more than half of the American population has not calculated how much they need to have set aside for their retirement years. Failure to start planning for your retirement as early as possible has led many to be unprepared financially for their retirement. Here are three tips for you to prepare for a comfortable lifestyle.

Contribute to Your Employers 401k Plan

In a recent study, it was shown that 30% of US employees with access to an employer-sponsored savings plan did not participate, even while being aware of having access to it. This lack of participation and unthoughtful planning is how seniors are unprepared for their retirement has led many employers to automatically enroll their employees in their sponsored retirement savings plan.

If your employer does offer a plan, such as the 401k plan, be sure to enroll. Most employers contribute a matching contribution, and even 1% will give you more than you started with. Contributing to the 401k plan is effortless as it is typically done automatically from your paycheck. Your tax bracket will be lowered, and you’ll receive tax deferrals on the investment and earnings as well.

Always Borrow from Yourself

Needing access to funds at the last minute happens to many. If you find yourself in the need for a loan, instead of taking a general loan and paying the interest back to a lender, why not borrow it from yourself? A major benefit of having an employer sponsored 401k plan is the ability to borrow against it.

Your 401k loan would have interest incurred, but that is paid back to your account and invested again. And depending on how your investments are allocated, the interest you pay back could exceed the investment earnings loss that may have occurred if your funds stayed in place. This could help progress your retirement account.

Educate Yourself

Education can take you many places, including preparing a lucrative lifestyle once you retire. Many retirees find themselves wanting to return to work, but the demands of the corporate lifestyle or heavy labor are too much to bear. The ideal income opportunity at that point is to work from home or start their own business. If you take the time to educate yourself slowly now, you’ll have everything in place once you are ready to retire and dedicate your time to your own business.

The above three tips are great ways to start planning for your sound financial future. It’s best to plan now than find yourself scrambling for funds when it’s too late.


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