4 Ways You Can Retire Wealthy

When a person is in their twenties, they rarely start to consider retirement as a priority that needs to be taken care of. Many of us will see a million dollars or more pass through our hands, but very few of us will actually accumulate a million dollars towards our retirement. Why? Because many of us suffer poor planning and little foresight. There are many methods to set aside extra money for those later years, but it’s hard to know where to start without expert advice and great financial habits. If retirement is something that you want to live well, here are four ways for you to get on your way to enjoying your golden years.

Save Early and Often

It stands to reason that the more you put away towards retirement, the better your nest egg will be. It’s true that many young people simply don’t think about their life after they leave the workforce, but by saving early you effectively create the most effective retirement plan there is; preparedness. Something will always come up, in any stage of your life, to challenge your savings, but with diligence and dedication you will see your retirement savings growing exponentially. Remember that there are tax breaks offered to those who submit money on a yearly basis to their RRSP funds, and that some employers will match your contribution to a predetermined sum.

Invest Wisely

Make a point to either employ a stock broker you can trust, or to learn the market yourself and put money into low cost, high return investments. Careful of high interest mutual funds, and always advocate for yourself when it comes to investing. Investing your hard earned money is a dangerous game for those who aren’t sure what they’re doing, which is why a professional may be a the best option to help you select your investments wisely.

Borrow Well

Heavy debt can effectively cancel out any savings that you have in the bank, so be sure that when you borrow you do so wisely. Not only will smart financial decisions keep your retirement fund growing, but they will protect your credit score which you desperately need to build equity and make big ticket purchases. If your credit score is ruined by the time you hit retirement, you’ll be in for a rough ride after your working days are through.

Be Consistent

Nothing can throw a stick in the spokes of your retirement savings so fast as a job loss, career chance or time off for illness of injury. While it’s obviously best to avoid any of these things, it’s also sometimes unavoidable to experience a gap in your retirement savings. Always ensure that you have a cushion of cash in another savings account so that you never have to dip into your retirement funds.

This guest post is from Allison with CreditReport.org.

Photo By 401(K) 2012 on Flickr License By http://creativecommons.org/licenses/by-sa/2.0/deed.en