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Saving for retirement can be intimidating, but it doesn’t have to be. Finding reasons not to contribute to your retirement plan will hurt you in the future.
Do any of these excuses sound familiar?
If You Think …
“I don’t make enough money.”
Then Consider…
Tax savings. Your contribution is taken out before taxes, so the amount you pay taxes on is lower.
If You Think …
“I’m too young to worry about it right now; time is on my side.”
Then Consider…
The magic of compounding. When you give your money more time to accumulate, the earnings on your investments—and the annual compounding of those earnings—can make a big difference in your final return.
If You Think …
“I’m too old, it’s too late.”
Then Consider…
It’s never too late. If you’re 50 years old or older, you can contribute a catch-up deferral of up to $6,000 for 2015. You still have time to put your money to work for you.
If You Think …
“Stocks, bonds … it’s too confusing!”
Then Consider…
There is an easier way! Your plan may have the option to invest your money in a “pre-set” asset allocation or lifestyle model that takes into account your expected retirement date or age. It’s a “set it and forget it” approach and works well for the less sophisticated investor.
If You Think …
“I’ll still have my Social Security.”
Then Consider…
Don’t count on it. A dwindling workforce means fewer tax dollars down the road. In just a few years there will be two workers per every one retiree.
If You Think …
“I just don’t know how to get started.”
Then Consider…
Help is available. Understanding how to begin saving for retirement might be overwhelming, but it’s easier than you think.
STOP finding reasons NOT to contribute to you RETIREMENT PLAN.
Information provided by J. Smith Lanier & Co.