Retirement can seem far away, so you may feel like there is still plenty of time to prepare — someday. But since what you save today will become what you will live on tomorrow, why not start now?
Establishing and maintaining a long-term strategy through practical saving habits is the best foundation for strong retirement income during your retirement years.
Here are 10 practical saving tips.
- Set and keep a budget. Setting a budget now will set up boundaries and habits that should carry over into your current lifestyle and retirement years.
- Write down specific savings goals. How much do you want (or need) when your retirement years begin? Use our Retirement Income Calculator to help develop a saving strategy amongst our other calculator options.
- Set up a retirement account if you haven’t already. To help you with your financial objectives, GuideStone® offers:
- Employer-sponsored plans (403(b), 401(k), etc.)
- Investment accounts
- Traditional and Roth Individual Retirement Accounts (IRAs)
- Evaluate your contribution type. Is tax-sheltered or Roth best for you? If you’re a Minister for Tax Purposes, consider this specialized comparison chart, as housing allowance should also be a consideration for you.
- Ask if your employer has employer contributions and — better yet — employer matching contributions. Don’t say no to free money!
- Now that you’ve decided on a contribution type and evaluated if your employer provides contributions, set aside monthly amounts as retirement savings from your salary. Even 5% per paycheck will add up over time. You can accomplish this by returning a Retirement Contribution Agreement to your employer.
- Commit to annual contribution increases. Whether you increase your savings percentage when you receive a pay raise, bonus or promotion or just by way of an annual calendar reminder, you’ll be doing your future self a favor.
- Designate your beneficiary. In the event that something happens to you, it’s important that your loved ones have a smooth transition of financial ownership.
- Periodically review your investments. GuideStone offers various resources and tools to make sure you’re on the right track. You may also always speak with a customer solutions specialist as well.
- Begin preparing a retirement withdrawal strategy. It’s critical to determine an appropriate level of withdrawals to sustain your income during your retirement years. Go through MyGuideStone® to help you start evaluating projected effects of your own retirement income.
For more tips and timely information, follow us @GuideStone.
If you have further questions, contact a customer solutions specialist at 1-888-98-GUIDE (1-888-984-8433) Monday through Friday between 7 a.m. and 6 p.m. CT.
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