The average age of retirement in the United States of America has risen with consistency over the past several decades. Now resting at 67, the average retirement age in the U.S. has people rightfully planning for life after work. To live comfortably, it can be important to pay attention to how we grow and manage our wealth.
To look forward to a comfortable retirement tomorrow, let’s take a moment to dissect the ways that we are approaching our wealth management. With financial education and a solid plan, anyone can get started in the direction with their finances.
1) Start Treating Your Wealth Like a Business
If we were to look at our financial situation as if it were a business, would that change the way that you spent any of your resources? Wealth management is about setting yourself up for success today, tomorrow, and for years to come and that requires time, attention, and discipline – not dissimilar to how a business should operate.
What does this entail from a practical sense? Take a moment to look at where your wealth is going, how you are generating it, and what it takes from you to do so. Get rid of unneeded expenses, hire an expert in accounting for small business to get the most out of your tax write-offs, and grow close with the ways that your money gets spent. Imagine you are the shareholders as well as the CEO – explain your purchases and if you can’t, adjust accordingly.
2) Retirement Plans & IRA Investments
An Individual Retirement Account (IRA) is the perfect place to put spare money as you save for retirement. IRAs are ideal because they allow us to deduct contributions from our taxable income. A traditional IRA will also provide a Roth option, giving account holders the chance to avoid paying excess tax on income when withdrawn during retirement.
For a 401(k), many companies offer matching on deposits. Max out your company match guarantee to get the most out of your 401(k) before retirement. If this still seems a little out there, consider working with a professional wealth management team to make sure your money is going in the right direction.
3) Learn From The Professionals
We are living in the age of information and no place is that more obvious than Twitter. Keep an eye out for wealth-management Tweets from savvy professionals. Places like Twitter are where new ideas, trends, and topics are developed. Following financial and wealth-management professionals is free, easy, and accessible through your phone.
Pay attention to who you follow on social media and try not to take anybody’s individual perspective as gospel. Ultimately, navigating the financial world is about learning from mistakes while avoiding as many mistakes as possible. With our tips, we can get started toward saving money in a big way while preparing for retirement in the future.
The best time to start saving for retirement was a decade ago, but starting today is the next best time!
Manage and Grow Your Wealth: 3 Steps to Financial Success
