It may feel like a ways away in the future, but retirement time will be here before you think – and if you’re not ready, you could be struggling to meet financial needs when you should be basking in a hard-earned, well deserved break. (Preferably on a beach somewhere.)
That’s why now is the time to start automating your retirement savings, even if it feels like those days are far off on the horizon. If you work for a company that offers a 401(k), this kind of automation is super easy: once you choose what percentage of your wages to defer to your retirement plan, the cash will come right out of each paycheck. You won’t even miss it.
If you work for yourself or simply want to boost your retirement savings (nice move!), you can also set up automatic deposits into an IRA or other investment account. Keep in mind, though, that you may need to manually allocate the assets (i.e., invest the money in specific stocks, bonds, or ETFs). Be sure you do so – otherwise, those funds are just sitting in limbo, unable to grow with the market!
Pro Tip: Even if retirement feels far off, now is the time to think about it – and automating contributions through your workplace plan or personal brokerage account makes building your nest egg stress-free and simple.