A piece of advice from my dad has defined my retirement strategy since my early 20s - Business Insider

One employer offered a match of 50 cents for every dollar up to 6%. The first year, I made sure to auto-contribute the full amount. And each year I bumped up that amount by 1%. By the time I left my post, I was putting away 12% toward retirement.when I was in my early 20s. Truth be told, I put in $100 and soon neglected to make further contributions. But when I transitioned to freelancing, I opened an IRA and set up auto-deposits so that I could contribute the max amount each year.

I typically try to contribute to the employer side first. That's because the limit is lower — 25% if you're a small business, and there's a special formula if you're technically self-employed — and I'm more confident I'll hit that limit. Once I max out on the employer side, I'll tackle making contributions on the employee side. For 2020, as an employee, you can tuck away up to 100% of your earned income, or up to $19,500, whichever is lower.

Like my IRA, I auto-contribute, so I save the maximum each year. In 2020, the amount you can contribute if you're single is capped at $3,550. My auto-deposit is set for every week, and I treat it like any other expense. Allow me to get super nerdy here. As a pastime of sorts, I like to plug in some numbers into ato see how much I'll have saved in each retirement account by the time I'm, say, 70. This free tool helps me figure out how much I'll have for my nest egg.

Despite the uncertainty that is looming, I still prioritize saving for retirement. I might make adjustments and lower my contributions if necessary. But for the most part, I treat it like any other regular living expense. That way, I stay on track with my goals.

This is fanstastic. Start early and watch the power of compound interest take over!

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside TikTok star Dixie D'Amelio's music business, making 'Be Happy' - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside TikTok star Dixie D'Amelio's music business, making 'Be Happy' - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. TikTok is a China spy app!!! Don't use it. BanTiktok You dont need major record label nowadays.. You can literally record it at home, and as long as you have the croud just like she did, the song will be doing well
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market investing strategy for 2nd half of 2020 as US recovery lags - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

I didn't save for retirement until I realized it's building wealth - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. You go girl🙏🎆✝️ I made the mistake and didn’t do that and am having to rebuild at age 50! So I’m teaching my son not to repeat my same mistakes
Source: BusinessInsider - 🏆 729. / 51 Read more »

Tech stock picks and strategy from top portfolio manager Jason Tauber - Business InsiderJason Tauber is crushing the market this year by finding the tech companies enabling the biggest disruptions. He told us how he's adjusting his game plan as valuations soar — and 7 of his top picks today.
Source: BusinessInsider - 🏆 729. / 51 Read more »

The benefits and pitfalls of a company having more than one CEO - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Fix your link. Please
Source: BusinessInsider - 🏆 729. / 51 Read more »