Once you enter your 30s, the realization of pending retirement can hit you heavy. You might look back your 20s regretting not having made the sacrifice to invest when it was easier. Don’t worry, you still have time to catch up on your investments. The good news is that you’ve realized this in your 30s, not your 40s or 50s. Freedom Debt Relief reviews a few tips for investing in your 30s.
Your 401(k) may be the easiest way to get started.
Your employer’s retirement plan is often the best way to catch up on investing. You’re able to contribute up to $18,000 of pre-tax income each year. Your employer may even match a percentage of your investment. With those benefits in mind, it’s hard to find a reason not to start putting money into your 401(k) right away. In fact, if you can max out your 401(k), by contributing as much as you can, you’ll see your investment grow even faster. Freedom Debt Relief reviews also the income tax benefits of maxing out your 401(k).
Look at other retirement accounts.
Your employer’s 401(k) isn’t the only place you can stash away funds for retirement. You can also take advantage of a Roth IRA or individual retirement account. This is a good option to consider if you’ve already maxed out your 401(k) and you can afford to invest more money. The only downside to Roth IRA is that you can only contribute post-tax income so you don’t get the tax break now. However, that money grows tax-free and isn’t considered taxable when you withdraw it.
Invest in the stock market.
Generally speaking, your risk tolerance goes down as you get older. However, Freedom Debt Relief reviews that in your 30s, you can still afford to take some risk with your investments. Rather than take the safe route and invest your money into money market accounts or CDs, put a higher percentage of your investments into stocks and mutual funds. Remember that riskier investments may fluctuate over a period of time, but you’re paying the most attention to average returns over the long-term.
Don’t focus on retirement only.
While retirement is a pretty major milestone in your life and you want to be prepared for it, it’s likely not the only financial goal you have. Freedom Debt Relief reviews a few other financial goals you may have at this point in your life. The list includes saving up for a down payment for a home, putting money towards a wedding, saving money for annual vacation, or socking away for your kids’ college. It’s important to find balance between your financial goals so that you can accomplish them all.
Don’t wait any longer.
Now that you realize the importance of investing in your 30s, don’t continue to procrastinate. Doing so will cost you dearly in the long run. Begin taking the necessary steps to ensure you’ll be able to retire comfortably when you’re ready. The tips that Freedom Debt Relief reviews could help you build up a sizable nest egg for your retirement days.
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