3 Effective Strategies Used To Boost My Retirement Savings Smart Change Personal Finance

 3 Effective Strategies  Used To Boost My Retirement Savings  Smart Change Personal Finance 

3 Effective Strategies  Used To Boost My Retirement Savings  Smart Change Personal Finance


While Social Security may not go away anytime soon, I have long known that relying heavily on these benefits to generate retirement income is not a good idea. Also, given the possibility of benefit cuts in the near future, I am not risking a scenario in which I have no money as a senior employee. It is for this reason that I try to invest as much money as possible in a series of retirement plans. Here are three strategies that have worked well for me so far.

1. From a young age
I graduated from college when I was in my early 20 and got my first full-time job a few months after graduation. Then I didn't think about retirement at all. Rather, I was focused on shaking off my student debt and saving some money for emergencies and vacations. Moreover, my employer did not offer a 401 (k) plan at the time, so I had little motivation to procrastinate.

But early in my career, I read an article about the importance of retirement savings, and so I decided to go to the bank and open an IRA. I was then 22 or 23 years old. Since I was getting a good salary, I was able to make the most of this account and it was one of the best decisions I have ever made. Starting early allowed me to capitalize on the growth in investment in my retirement plan, and if I had waited even a few years to start saving, I would have had thousands less now.

2. Active investment
When I first opened my IRA, I knew little (but oh well, really) about buying stocks. But I knew how to look for advice on the Internet, and so I ended up investing my retirement savings in a few stocks that seemed promising. I was worried, of course - stocks have always been more risky than bonds, and the likelihood of losses in my retirement plan definitely existed. But I also knew that I was not going to touch this money for many years, and that stocks are what I need if I want a decent profit. Now, years later, this equity investment has served me well, enabling me to turn my modest IRA balance sheet into a more impressive amount.