This will help keep you motivated and aware of your progress.ĥ0. Make goals Specific, Measurable, Achievable, Realistic and Timely. It’s not about how much you make - you can make a million dollars a year and still be flat broke if you spend it all.ģ3. Honor the principles of saving and investing. Roll that money into an IRA or your new company’s 401(k) plan and allow the money to continue to grow. Avoid cashing out your retirement plan when changing jobs (it’s called an early distribution), which can tack on taxes and fees. Plan to retire early? Understand the tax rules and penalties of accessing your investments, and consider having alternate investment accounts that you can withdraw from first if need be.ģ1. Retirement funds are generally only accessible without penalty after you turn 59 1/2.ģ0. Try to avoid touching your retirement accounts, and learn about the tax implications and penalties associated with different retirement account withdrawals. They have great tax benefits and will help offset those large expenses in your golden years.Ģ9. Consider investing in a Health Savings Account (HSA) if you have access to a high-deductible health plan. Healthcare-related costs are retirees’ largest annual expense. Guaranteed monthly income in retirement can help you maintain your retirement nest egg much longer.Ģ8. Add Social Security benefits into your calculations by checking your Social Security Statement at SSA.gov. If you’re eligible for an employer-sponsored plan like a 401(k) and an individual retirement account like a traditional or Roth IRA, you may want to take advantage of both simultaneously - they each have their own pros and cons.Ģ7. Prioritize taking advantage of any employer match offered in your retirement plan.Ģ6. Then choose one that’s appropriate for you, and never let your contributions sit idle.Ģ5. Does your employer offer a retirement plan? Evaluate the investment options because every plan is different.

Household budget planner book