Congress has declared the third week in October to be ‘National Save for Retirement Week’ in order to educate people about the importance of saving for retirement. In honor of NSFR Week 2016, we are going to walk you through your road to retirement, decade by the decade.
Your 20’s were fun but now it’s time to focus on your 30’s. You’ve been out of school and on your own for a while now, your career is shaping up nicely, and you feel pretty good about where your life is. Even if there are some areas where you need to improve, there’s still plenty of time.
Now that you’re a bit more settled, you can start contributing a little more to your retirement account each paycheck. As we learned yesterday, you can contribute up to $5,500 each year, so you should be aiming for a contribution percentage that hits that.
CREATE OTHER SAVINGS
Cyprus has several different types of saving accounts. At this point, starting a Certificate or Money Market may be a good way to capitalize on interest rates. Your emergency savings should contain about 6 months’ worth of expenses. This can be used in case of unexpected unemployment or medical emergency.
DIVERSIFY YOUR PORTFOLIO
Since you can’t predict what the market is going to do, you need to invest in various ways such as real estate, stocks and bonds, and so forth. The more you diversify, the more any potential losses will be contained. If you need help getting started with investing, reach out to an investment professional.
BUY A HOME
A home is the biggest investment you will make in your lifetime, but the last thing you want to do is buy one before you’re ready. Once you’ve settled into a career and saved for a down payment, it’s a great time to buy. Rates are super low and house values are holding steady. Cyprus Credit Union is your mortgage partner. Our qualified loan advisors will be there every step of the way and will continue to be your point of contact throughout the loan.
For information on saving for retirement in your 20's click HERE.