Download - Investing 101: How to Prepare for Retirement

Investing 101How to Prepare for Retirement

#CreditChatWednesday | 3 p.m. ET

Join our #CreditChat every Wednesday at 3 p.m. ET. This week, we talked about how to prepare for retirement.

ex.pn/retire

http://www.experian.com/blogs/news/about/prepare-retirement/

When should we start putting money toward retirement?



“Retirement is a lifelong investment. It is never too early or too late to start

planning and saving at any age!”

- @taynelawgroup


“Ideally, start saving for retirement in your 20s - you want as much time as possible for your money to grow.”

- @kevincswanson


“Small investments made sooner do better than big investments for less time.”

- @JustOnePay


“Employ good savings habits as early as possible regardless of income! Or

start a Family 401(k)!”

- @KOFETIME

What factors should be included in a retirement planning strategy?



“When planning for retirement, you should take into account how old you are now and at what age you want to

retire.”

- Southeast Financial@SFCUNews


“There are several, but debt, income, long-term living arrangements, and

estate planning are all factors to consider.”

- @LeslieHTayneEsq


“When starting out, if your company offers a 401(k) with a match, save at least that much.”

- @Rod_Griffin


“Start with the basics; income vs expenses and how long you will need

income. You don’t want to outlive your money.”

- @kevincswanson

How much should you save for retirement?



“You have to look at how much you spend, and how much debt you’re in

to determine your ‘number’.”

- @FedChoiceFCU


“Would be easy to say as much as possible, but really it’s as much as you need to live the life

you want. Not as simple.”

- @Rod_Griffin


“Retirement savings: treat it like a bill in your current budget so you’re covered monthly and saving for your

future.”

- @KOFETIME

What options are available for investing for retirement?



“Look for tax-efficient options for retirement savings, dependent on your situation. 401(k) versus Roth

IRA.”

- @kevincswanson


“Check with your employer to see if they will match your 401(k) contributions.”

- @LeslieHTayneEsq


“Thrift Savings Plans, 401 (k) plans, and IRAs are popular ways to save

and invest for retirement.”

- @FedChoiceFCU

How are a 401(k), a 403(b) and an IRA different?



“401(k) is from a for-profit company, 403(b) is from a tax-exempt

nonprofit, and IRA is from personal retirement savings.”

- @AirForceFCU


“A 401(k) has a matching contribution from your employer.

Which means ½ of the contributions are free money, take advantage!”

- @KOFETIME


“401(k)s are employee-sponsored with limited investment choices; an IRA has access to many

more security investment choices.”

- @kevincswanson


“Think of it like: 401(k) through employers, 401(b) for public ed/tax exempt, and IRA for individuals.”

- @JustOnePay

What is the difference between a traditional plan and a Roth plan?



“With a traditional plan, contributions are taxed when they

withdraw. With Roth, contributions have already been taxed.”



“With traditional IRA you pay taxes when you withdraw the money in retirement. With Roth

IRA you pay the taxes on the front end.”

- @LeslieHTayneEsq


“Both Roth and traditional IRA grow tax free in your account; IRA is taxed when you withdraw and Roth when

you contribute money.”

- @KOFETIME

Should asset allocations change as we get older?



“As you get older, shift your portfolio to bonds and money-market funds. Your tolerance for risks decreases as

you age.”

- @care4yourfuture


“As you get older, look to gradually increase your retirement contributions each year.”

- @taynelawgroup


“Reevaluating your investment strategy as you age is important. Researching is important at any

age.”

- @StopFraudCo

What should we know about taxes and retirement?



“Benefit from tax diversification by holding traditional retirement

accounts, Roth accounts and taxable accounts.”

- @KiplingerRetire


“Remember, your accounts are going to be taxed; the question is do you want to be taxed

now or later?”

- @care4yourfuture


“Taxes and retirement: know your tax bracket so you choose wisely,

Roth or IRA, and pay less taxes either now or later.”

- @KOFETIME

How often should you review your retirement investments?



“It’s good to touch base with your retirement goals once a year, see if

they align with your budget saving.”

- @FrogskinU


“As a general rule, once a year so you can make sure your asset allocation still makes sense for

your age and goals.”

- @LeslieHTayneEsq


“It’s good to assess your retirement plan at least once a year and make

any adjustments based on what you see.”


Any final tips for those trying to invest for retirement?



“It can be intimidating to start, but it’s easier than you think! Save

yourself stress in the future and start today.”

- @JustOnePay


“Contribute early and regularly. Let compounding interest work for you by starting

asap. Remember, time is money!”

- @care4yourfuture


“Start saving early so that time is on your side. Try to increase the

percentage you save with every raise you get.”

- @KiplingerRetire


“Retirement is the reward of a lifetime of work, make sure you prepare for it as best as you can

so you can enjoy it!”

- @taynelawgroup

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