Retirement might be a way off, but you want to do everything you can now to be financially prepared for the future. Maybe you just experienced a recent life change like marriage, the birth of a child or you finally landed that dream job. You’re entering the stage of life where you’d like to begin to accumulate wealth.
At Fragasso, we’ll help you get started with written, quantifiable goals that have realistic time frames and targets.
Retirement accounts through your employer, such as a 401(k) or 403(b) plan, can be one of the most attractive ways to save. Employer sponsored plans have long been a main source of retirement income for many workers over time. Many times, company 401(k) plans have an employer match. Think of this as “free” money. At the very least, you should contribute to your employer plan as much as your employer will match. If you can’t afford to max out your retirement plan, commit to making small increases annually or use your raise to increase your contributions until you are maximizing. Once you are contributing the minimum to receive a company match or maximizing your company retirement plan, you may also be eligible to contribute to a traditional or Roth IRA.
Other strategies you can implement would be to pay off high consumer debt, create a budget and try to live below your means. If you’re planning on funding a college education someday, consider establishing a 529 savings plan. Whatever your goals, it needs to start with a plan.
Strategic, intentional planning now to give you the confidence you need in the future.
In our experience at Fragasso, one of the most important steps that you can take in order to prepare for your eventual retirement, or any financial goal, is establishing a financial plan for yourself and your family. A financial plan will transform your goals into an actionable strategy. Learn more about the Six Steps to Financial Success.