Your retirement years may be decades away, but it’s never too early to start planning and saving for the day you can enjoy life with a nice big nest egg.
You can open a traditional Individual Retirement Account (IRA) at any age. A Roth IRA delivers tax benefits when it’s time to retire. Your company may offer a 401(k), and some businesses actually help fund a 401(k) by matching a percentage of your deposits.
So, when should you start saving for your Golden Years? How about today?
Start Saving for Retirement ASAP
The earlier you start putting away money for the future, the more your investments will earn, as interest compounds more interest. What you’ve earned is automatically rolled back into your retirement accounts.
That’s right, your money works harder the sooner you start making deposits. It may not look like much after a year or two, but after 30 or 40 years, it could be a big chunk of cash to make your retirement years better.
Playing Catch Up
If retirement is coming at you fast, and you don’t have any money put aside for retirement, you can play catch-up with some help from Washington, D.C. By the time you reach 50 years of age you can add more to your IRA to help you catch up. While you’re still working, you’re still earning. That’s money you can set aside – or at least a portion of it.
Before age 50, the maximum amount you can salt away for a rainy day in any tax year is $5,500. However, once you reach 50, you can add another $1,000 annually.
If you go with a 401(k) through work, Uncle Sam gives you an even better break. You can set aside an additional $6,000 on top of the 401(k) base of $18,000. That’s $24K a year you can contribute for a few years. Sure, you’ll have to cut back, maybe enjoy a staycation instead of a world cruise, but when your retirement account statements arrive at the end of each year, you’ll smile at how much you’ve been able to catch up.
Sign Up for Online Updates for Your SSA Retirement Account
You can sign up with the Social Security Administration’s (SSA) online services once you reach age 18. Simply log on to the SSA website, fill out the form on their secure site and check your accounts anytime online.
To create an online Social Security Administration account you’ll need:
- a valid email address
- your Social Security number
- your stateside mailing address
- to be at least 18 years of age
There are some restrictions. For example, you can’t create an online account for another person, even if you have written permission from the account holder.
You have to use your real name when creating an account – the name the SSA has on file for you. Other than that, it’s pretty simple, and you can track your investments easily using the Social Security Administration’s website. Sign up. Get entered into the SSA system ASAP so they know you and you know them.
Uncle Sam Really Wants You to Enjoy Retirement
Need some advice on saving for a rainy day? The Social Security Administration (SSA) is here to help you online, by telephone, or with up close and personal face time to help you prepare for a secure retirement.
When should you apply? How do you apply? Can you apply online? The Social Security Administration website has a variety of tools to better help you calculate your retirement date. Let Uncle Sam help plan your retirement.
When you need to crunch the numbers, visit the SSA website for calculators that give you a better idea of where you stand with retirement. A retirement estimator, life expectancy calculator, retirement age calculator – the SSA maintains a number of calculation tools to develop accurate information on when to start planning your retirement party.
Visit the Nevada State Bank website to make an appointment with a banker who can provide information on how much you should be saving and where to save it, based on your personal savings strategy.
It’s never too early to start a savings plan for the distant future. Talk to a banking professional at Nevada State Bank and keep your future looking brighter each year.
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of ZB, N.A.
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