According to credit monkey, the average IRA balance is just over $100,000, and the average 401(k) balance is just under that amount. While that is nowhere near what the average person needs for retirement, it still puts a person miles ahead of the 45% of working-age households that report no savings for retirement. Do you know what you are currently saving?
Take Advantage of Full Employer Match
If your employer is offering a 100% matching benefit for your 401(k), then now is the time to squirrel away as much as you can. Sure, you can put in half of what you need to save per month and let the employer do the other half, but why not make your full contribution and let your employer help you get ahead?
Does Your Allocation Match Your Risk Tolerance?
On the one side, you need a healthy interest growth on your retirement fund in order for your money to keep up with inflation, let alone help you have what you need in your later years. On the other hand, if your risk level is too high, you may retire wealthy or broke simply depending on how the market does.
Review Your Retirement Account Annually to Stay on Track
Check how much you have set aside at least once a year and adjust your monthly deposits accordingly, so you stay on target. And don’t forget to get in touch with College Planning Source for more financial advice. Call 858.676.0700 or submit our online contact form to learn more.