These 4 Tips Could Set You Up for Retirement
Retirement is on the horizon for millions and is a significant life event. The transition from working 5 days a week to not working and relying on passive income can be overwhelming at first.
To help make this process easier, FoxBusiness put together these four tips:
1. Save as early in life as you can
This first tip is definitely easier said than done. However, setting a specific budget that allows you to dedicate some of your income to retirement pools will pay off in the long run.
2. Understand the level of risk you can assume based on your age
Be aggressive when you are younger with your retirement accounts. The S&P 500 averages around a 10 percent return annually. If you choose a less risky investment such as bonds, you could be risking hundreds of thousands of dollars in returns.
3. Avoid Debt
Try to avoid overleveraging yourself. Once you retire and your stable income stops, it's on you to finance whatever debt you have. Furthermore, debt requires interest payments that could be saved for retirement and accrue interest.
4. If possible, delay social security
Social security is only intended to be supplemental income in retirement. That being said, the longer you wait the more you can get paid. For every year you hold off on filing for social security, your benefits increase 8 percent.