It’s hard to sift through all the advice about saving and investing for retirement that swirls around us on a daily basis. In this article, we’re going to help punch through the confusion by banishing five common myths about investing for retirement. Some of the myth-busting might be scary, and some should be encouraging. But most importantly, it should make you more confident that you’re grounded in reality when investing for your retirement.
Here at Investor Junkie, we talk all the time about the best ways you can build and protect your retirement nest egg. But did you know there are useful — and free — tools that can help you know just what you’ll need for your golden years?
When my grandparents retired, they moved to South Carolina. They thought it was exotic. Being used to frigid Ohio winters, they found the fact that temperatures seldom dipped below 40 appealing. They wouldn’t have to shovel a few feet of snow every few days. Not to mention that there were plenty of opportunities for Gramps to go bowling.
I understand saving for retirement is something I should do, but there are lots of things I should do that I somehow survive not doing. Watching Star Wars comes to mind… The first time someone asked me what my goals for retirement were, I just laughed. I was 25 years old and couldn’t decide what to do that weekend, let alone where I would be at 35. You’re asking about my life at 65? Next question, please!
Retirement is coming. I don’t mean to sound like a Game of Thrones character, but it’s the truth. In order to be retired and living our best lives by 65, we have to be planning and saving now. And retirement planning is more than just saving the money. You have different options to maximize the effectiveness of your retirement accounts and really make your money work for you.
One of the dirty little secrets in the financial community is that the majority of Americans don’t adequately save and invest for retirement. Sadly, millions of people will enter retirement the same way they lived during their working years: broke.
Should I get a 401(k)? A Roth IRA? Or both? As with most questions in the financial-planning realm, there’s no cut-and-dried answer. It all depends on your individual situation. So let’s take a look at some of the things you should consider to help you decide which account is best for you.
You’ve certainly seen the term “401(k)” before. And it’s likely that you already have one set up through your employer. But what’s a 403(b)? If you’re wondering what this type of employer-sponsored plan is, who qualifies for it and how it’s different from a 401(k), read on.
The contribution limits for 401(k) plans have been increased for 2019. You will want to review your contribution rate to ensure that you are maxing your contributions to the extent that you are able to do so.