"The earlier you start saving for retirement, the better"

You have probably heard this more than once when the topic of planning for retirement is brought up -- but it's a phrase you won't want to ignore until the last minute.

The point of saving up for retirement is to ensure that you can pay for living expenses, medical expenses and any additional costs (such as travel, a retirement home, etc.) you may need in your golden years. Contributing to retirement accounts such as 401ks, Roth IRAs, and Traditional IRAs as well as allocating funds into stocks and bonds will help you boost your retirement savings over time.

Our financial planning and retirement planning company is here to help you boost your retirement savings by providing a few tips and tricks.

  1. Start Planning Today. If you're someone who has been working full time without setting up a retirement account of some sort, then it's time to sit down with a financial advisor to get started. With compound interest and other perks such as employer matching programs with 401k contributions, you will be able to grow your account quickly.
  2. Contribute to a 401k. First things first, make sure your company provides it's employees with a 401k plan. If they do, ask about any matching contributions up to a certain percentage of your paycheck. Most 401k plans take money out of your paycheck pre-tax, though you should ask what specific type of 401k plan your employer offers. Don't forget that Cape Cod Wealth Strategies & Insurance Services, LLC can help you with 401k rollover services if you switch jobs in the future.
  3. Open an IRA Account. Individual Retirement Accounts are always a great addition to your portfolio. Depending on your income, a Traditional IRA account may be best as they are often tax-deductible and tax-deferred until retirement. Roth IRAs on the other hand are funded with after-tax contributions which means they are tax-free upon withdrawal once you hit retirement age.
  4. Monitor Your Spending. We aren't saying you need to live frugally or to the point that you can't sustain yourself and your family, though it can never hurt to have a weekly, monthly and yearly budget. Our financial advisors are here to help you examine your budget and come up with a spending plan that works for you, your needs, and your lifestyle.
  5. Consider Holding Off on Social Security. Did you know that delaying receiving your Social Security retirement benefits for a few years results in an increased monthly benefit? While most individuals will plan to receive Social Security at age 62, you actually have the choice to postpone these payments until as late as 70. Opting to go this route leads to a greater annual benefit amount.

There are an infinite amount of financial strategies to help you prepare for retirement, which is why at Cape Cod Wealth Strategies & Retirement Services, LLC each plan is tailored to your needs. Contact us today about how we can help you plan, implement, and monitor your retirement strategy.