Planning for retirement can seem like an intimidating task to accomplish. However, all you need to do is come up with a plan and stick to it. Were you aware that fewer than half of all Americans have calculated how much they need for retirement? According to the Department of Labor in 2014, 30% of private industry workers with access to a 401(k) plan did not participate in it or take advantage of their employer’s contribution. The average American spends around 20 years in retirement. That is a big chunk of time you need to prepare for but we, at TFC Title Loans, know you can accomplish it as long as you put in the time and effort necessary. Financial security takes planning and a serious commitment but the reward is worth it.
It is true that we aren’t necessarily financial planning advisors; however, we have been in this business of title loan lending for 25 years and, through that, have gained extensive knowledge about handling personal finances through planning for the future. Recently, we have made the decision to disclose this knowledge to all our customers by expanding our website to include resource pages that answer questions and cover topics ranging from financial planning to title loans. Ever since we opened our doors in 1994, we have been extremely passionate about consumer education and the financial future of our customers. We know saving up for retirement can feel overwhelming but we want to help you out by giving you the best advice from the Department of Labor. If you follow the tips in this informational article, then you should be on your way to a peaceful and restful retirement.
It is never too early or too late to carry out a well thought up plan for retirement. Those of you out there who just graduated from college, if you get started now you will thank yourself later. And for those of you who feel like retirement is just around the corner, don’t let that dishearten you. If you get started right away, you still have a shot to be where you want to be when you hit retirement age.
If you came across this resource page because you are interested in obtaining a title loan from TFC Title Loans, then go straight to the home page to fill out our simple and quick online application to get started.
Planning and Saving for Retirement
- Start saving up or continue saving. If you have already started putting money aside for retirement, then keep that up! If you haven’t started, then try to put a little bit away each paycheck. If you have to start small, then start small but increase the amount you put away every month then keep it consistent once you find a good amount that works for you. It is never too late to get started. A little is always better than nothing.
- Sit down and understand what your retirement needs will be. Retirement is expensive but each person’s needs tend to be a little different. Usually, to maintain their standard of living, the average person needs at least 70% of their income before retirement. However, this average goes up to 90% for those living off of a low income. When you are making your plan, it is wise to do research and understand what is necessary and what is reasonable. This is the moment that you can take control of your financial future.
- If your employer offers a 401(k) plan or something similar that you have not taken advantage of yet, then start contributing to that as soon as possible. Many times, employers will match the amount you have taken out of your paycheck meaning you will be saving double the amount. The money is deposited into the 401(k) before taxes which means that your taxes will be lower for each paycheck. That along with the convenient automatic deductions, you’d have to be crazy to not take advantage of a contribution plan.
- Does your employer have a pension plan? If your employer does have a standard pension plan, then find out if you are covered under it and learn how it works. Before you decide to change jobs, figure out what happens to your pension savings if you leave.
- Consider investing with your retirement savings. Use basic investment principles such as diversifying your investments so that you can reduce the risk and increase the return. How you save is just as important as how much you save.
- Do not move or use any of your retirement savings. If you withdraw your savings, you will lose principal and interest that has been building over time. If you decide to change jobs, then consider leaving your savings invested where they are. If you can’t do that then roll them over into a new IRA or into your new employer’s retirement plan.
- Consider opening up an IRA (Individual Retirement Account). You can put away up to $5,500 a year and even more later in life. These accounts are amazing because they provide great tax benefits for all those who’s employer doesn’t offer a contribution plan. You can open up either a traditional IRA or a Roth IRA. Research them to find out which one is best for you.
- Learn more about your social security benefits. This is something that so many individuals never research but you ought to familiarize yourself with it. Social Security usually pays on average about 40% of what you earned before retirement. It is because of the 30% gap between social security and the 70% needed to maintain your standard of living that you need to save up and plan thoroughly for retirement.
Do you feel so much more prepared to start planning for retirement now? We hoped so! Additionally, we hope that you feel more motivated to start saving right away since each moment that passes brings you closer to that lovely day when you no longer need to work 9 to 5. The harder you work now, the more benefits you will reap after you have finished working. Inspire yourself to work hard by dreaming about what you might like to do after retirement: travel? Move to warmer climate? Buy a new car? Take up a fascinating hobby? Work towards that goal because when you have something you are working towards, you tend to work harder. If you are interested in a title loan to help you get by as you flesh out your plans, then give us a call or fill out our online application right away! We have representatives standing by.